Facility LayoutFacility Layout  

Facility LayoutFacility Layout decisions translate decisions translate

the broader decisions the broader decisions about a about a firm’s firm’s

strategystrategy such as such as competitive priorities, competitive priorities, process, and capacity process, and capacity

into actual physical into actual physical arrangements of arrangements of

people, equipment, people, equipment, and spaceand space..

Emphasis: On flexibility and Emphasis: On flexibility and changechange

Determine:Determine:                  Placement of departmentsPlacement of departments                  Workgroups within departmentsWorkgroups within departments                  WorkstationsWorkstations                  MachinesMachines                  Stock-holding pointsStock-holding points

Factory: smooth work flowFactory: smooth work flowService: traffic patternService: traffic pattern

  

Inputs to layout Inputs to layout decisions:decisions:

1.1. specification of the objectives specification of the objectives 2.2. estimates of product or service estimates of product or service

demanddemand3.3. processing requirements processing requirements 4.4. space requirements space requirements

space availability – existing facilityspace availability – existing facility building configuration – new facilitybuilding configuration – new facility

  

Basic Basic ProductionProduction Layout Layout FormatsFormats

Process LayoutProcess Layout - Job shop/functional layout - Job shop/functional layoutSimilar equipment or functions are grouped togetherSimilar equipment or functions are grouped together

Tools:Tools:Interdepartmental FlowInterdepartmental FlowSystematic Layout PlanningSystematic Layout PlanningDistance/Load BasisDistance/Load Basis

Product LayoutProduct Layout - Assembly Line - Assembly LineEquipment is arranged according to the steps in which Equipment is arranged according to the steps in which

the product is madethe product is madeTools:Tools:

Line balancingLine balancingGroup Technology (cellular)Group Technology (cellular)Fixed-position layoutFixed-position layout

Retail Retail ServiceService Layout Layout

Stores, banks, Stores, banks, restaurantsrestaurants

Goal: maximize net Goal: maximize net profit per square foot of profit per square foot of floor spacefloor space

Servicescapes:Servicescapes:

1.1.                Ambient conditions Ambient conditions 2.2.                Spatial layout and Spatial layout and functionalityfunctionality3.3.                Signs, symbols, and Signs, symbols, and artifactsartifacts                  

OfficeOffice Layout Layout

Trends:Trends:– more open officesmore open offices– removed fixed walls to foster removed fixed walls to foster communication and teamworkcommunication and teamwork

– size and orientation of desks size and orientation of desks –often designed and laid out to often designed and laid out to convey convey a desired imagea desired image    

Marks of a Good Marks of a Good Layout:Layout:

Manufacturing & Back-Office OperationsManufacturing & Back-Office Operations1.1.                Straight line flow patternsStraight line flow patterns2.2.                Backtracking minimizedBacktracking minimized3.3.                Production time predictableProduction time predictable4.4.                Little inter-stage storage of materialsLittle inter-stage storage of materials5.5.                Open plant floors so everyone can see what Open plant floors so everyone can see what is is happeninghappening6.6.                Bottleneck operations under controlBottleneck operations under control7.7.                Workstations close togetherWorkstations close together8.8.                Orderly handling and storage of materialsOrderly handling and storage of materials9.9.                No unnecessary re-handling of materialNo unnecessary re-handling of material10.10.          Easily adjustable to changing conditionsEasily adjustable to changing conditions  

Face-to-face servicesFace-to-face services1.1.    easily understood service flow patterneasily understood service flow pattern2.2.    adequate waiting facilitiesadequate waiting facilities3.3.    easy communication with customerseasy communication with customers4.4.    easily maintained customer surveillanceeasily maintained customer surveillance5.5.    clear exit and entry points with adequate clear exit and entry points with adequate checkout checkout capabilitiescapabilities6.6.      departments and processes arranged so that departments and processes arranged so that customers only see what you want them to seecustomers only see what you want them to see7.7.      balance between waiting areas and service balance between waiting areas and service areasareas8.8.      minimum walking and material movementminimum walking and material movement9.9.      lack of clutterlack of clutter

10.10.        high sales volume per square foot of facilityhigh sales volume per square foot of facility  

Conditions that drive layout Conditions that drive layout decisionsdecisions

--                    reduce unnecessary activitiesreduce unnecessary activities--                    prevent damage to inventoryprevent damage to inventory--                    enhance communicationenhance communication--                    prevent reworkprevent rework--                    provide privacyprovide privacy--                    provide for employee safetyprovide for employee safety--                    provide for security of resourcesprovide for security of resources--                    enhance labor skills and functional enhance labor skills and functional excellenceexcellence--                    enhance the quality of work lifeenhance the quality of work life--                    provide for customer involvementprovide for customer involvement    

The goal of layout planning is to The goal of layout planning is to allow workers and equipment to allow workers and equipment to operate most effectivelyoperate most effectively

Economic activity center – Economic activity center – anything in your facility that anything in your facility that consumes spaceconsumes space

Questions to ask:Questions to ask:

1.1. What centers to include?What centers to include?2.2. How much space and capacity How much space and capacity

does each center need?does each center need?3.3. How should each center’s How should each center’s

space be configured?space be configured?4.4. Where should each center be Where should each center be

located?located?

Relative location – placement Relative location – placement relative to other centers – based relative to other centers – based on:on:– Travel timeTravel time– Material handling costsMaterial handling costs– Communication needsCommunication needs

Absolute location – particular Absolute location – particular space it will occupyspace it will occupy

Designing a Process Designing a Process LayoutLayout

1.1. Gather informationGather information

2.2. Develop a block planDevelop a block plan

3.3. Design a detailed Design a detailed layoutlayout

Gather informationGather information

Space requirements for each Space requirements for each centercenter

Available spaceAvailable space Closeness factorsCloseness factors

– Trip matrixTrip matrix– REL (relationship chart)REL (relationship chart)

What centers need fixed locationsWhat centers need fixed locations

Develop a block planDevelop a block plan

1.1. Trial and error for Trial and error for acceptable planacceptable plan

2.2. LOAD-DISTANCE LOAD-DISTANCE methodmethod

Process Layout Process Layout ExampleExample

AA BB CC DD EE FF

AA -- 88 33 99 55

BB -- 33

CC -- 88 99

DD -- 33

EE -- 33

FF --

Detailed Detailed representationrepresentation

Exact size and shape of Exact size and shape of each centereach center

Arrangement of Arrangement of elementselements

Designing a Product Designing a Product layoutlayout

Arranges work stations in sequenceArranges work stations in sequence LINE BALANCING – assignment of LINE BALANCING – assignment of

work to stationswork to stations

Goal:Goal: Obtain workstations with Obtain workstations with well-balanced workloadswell-balanced workloads

Work element – smallest unit of Work element – smallest unit of work that can be performed work that can be performed independentlyindependently

ProcedureProcedure

1.1. Develop a precedence Develop a precedence diagramdiagram

2.2. Determine the desired Determine the desired output rateoutput rate

3.3. Determine cycle time and Determine cycle time and related measuresrelated measures

4.4. Find an appropriate solutionFind an appropriate solution

Cycle time – 1/r where r is the Cycle time – 1/r where r is the desired output ratedesired output rate– Maximum time allowed for work on a Maximum time allowed for work on a

unit at each stationunit at each station Theoretical Minimum Number of Theoretical Minimum Number of

WorkstationsWorkstations– TM = TM = t / ct / c

Idle Time = n * c - Idle Time = n * c - t t – where n = number of stationswhere n = number of stations

Efficiency (%) = Efficiency (%) = t / nc (100)t / nc (100) Balance Delay (%) = 100 - Balance Delay (%) = 100 -

EfficiencyEfficiency

Finding a SolutionFinding a Solution

Begin with station k = 1Begin with station k = 1– Make a list of candidates to assign to station kMake a list of candidates to assign to station k

Pick a candidatePick a candidate– Longest work-element ruleLongest work-element rule– Largest number of followersLargest number of followers

Calculate cumulative time for all tasks Calculate cumulative time for all tasks assigned to station kassigned to station k

If some work elements are still If some work elements are still unassigned, but none are candidates for unassigned, but none are candidates for station k, create a new station k+1station k, create a new station k+1

Continue until all work elements are Continue until all work elements are assignedassigned

Work Work ElementElement

Time Time (seconds(seconds

))

Immediate Immediate Predecessor(Predecessor(

s)s)

AA 4040 NoneNone

BB 8080 AA

CC 3030 D,E,FD,E,F

DD 2525 BB

EE 2020 BB

FF 1515 BB

GG 120120 AA

HH 145145 GG

II 130130 HH

JJ 115115 C,IC,I

TotalTotal