Latent and Manifest Variables of the PLS-SEM Model Used in Measuring the Effect of Production Facilities Layout Re-Planning in Shipyard Support Manufacturing Companies

It is necessary to conduct a study to determine employee perceptions regarding the effect of re-planning the layout of production facilities on company productivity and performance. This will be one of the company's considerations in deciding the implementation of the rearrangement of the layout of its production facilities. This study aims to analyze the measurement model and the relationship between variables used to determine the perceptions of employees of PT. Dua Sahabat Group (a manufacturing company supporting the shipbuilding industry) regarding the effect of re-layout production facilities on company productivity and performance. The relationship between latent variables and manifest variables has been analyzed by using Partial Least Squares-Structural Equation Modeling (PLS-SEM). The test results show that the Composite Reliability (CR) value is above 0.7 and the Average Variance Extracted (AVE) value for the variables X1-X6, Y1 and Y2 is above 0.5, meaning that these variables meet the requirements. The results of this study indicate that the measurement model analysis has good characteristics and meets the requirements, so that it can proceed to the next structural model analysis stage.