<![CDATA[The oil and gas industry requires a facility layout that supports smooth material flow and efficient use of handling equipment, particularly within storage areas. Suboptimal layouts lead to increased material transport distances, equipment operating times, and operational costs; this issue is particularly relevant to the pipe yard layout at PT Pertamina EP Tanjung Field. This study aims to analyze the feasibility of the existing layout and design a proposed pipe yard layout using the Systematic Layout Planning (SLP) method to reduce Material Handling Costs (MHC) associated with crane-based material transport. Data collection involved observation, interviews, and a literature review. The SLP process included material flow analysis, the creation of an Activity Relationship Chart and Activity Relationship Diagram, space requirement analysis, the development of a Space Relationship Diagram, and the formulation of a proposed layout. Analysis of the initial layout revealed a material transport distance of 5,240 meters, a crane usage time of 35 hours per month, and an MHC of IDR 63,359,999.9 per month. In contrast, the proposed SLP-based layout reduced the transport distance to 940 meters, lowered monthly crane usage to 29.2 hours, and decreased the monthly MHC to IDR 52,800,008.3. Consequently, the comparison between the initial and proposed layouts shows reductions of 4,300 meters in transport distance, 5.8 hours in crane usage time, and IDR 10,559,991.7 in monthly operational costs, representing a 16.6% increase in efficiency. Based on these evaluation results, the SLP method is deemed suitable for enhancing the operational efficiency of the pipe yard facility layout.]]>
