1GE303 Operations

Management

Facility Layout
Course Outline
1. Facility Layout and Basic Formats

2. Process Layout
3. Product Layout

4. Group technology Layout

5. Fixed-Position Layout
6. Layout Planning

7. Assembly Line balancing

8. Service Layout
2
Facility Layout Defined
Facility layout can be defined as the process of
placing departments, workgroups within
departments, workstations, machines, and stock-
holding points within a facility
The objective is to arrange this elements in a way
that ensures the smooth movement (work flow) of
products, people, materials, information, etc.

3
Facility Layout Defined
This process requires the following inputs:
Specification of objectives of the system in terms of output
and flexibility
Estimation of product or service demand on the system
Processing requirements in terms of number of operations
and amount of flow between departments and work centers
Space requirements for the elements in the layout
Space availability within the facility itself

4
Signs of a Successful Layout

1. Directed Flow Patterns:

a) Straight line or other smooth patterns of movement
b) Backtracking kept to a minimum
2. Predictable Processing Time
3. Little WIP in Facility
4. Open Floors: allow communication and easy tracking
of work & employees
5. Bottleneck operations under control
6. Work Stations close together

5
Signs of a Successful Layout

1. Orderly Handling & Storage of Raw Materials and

Finished products
2. No extra handling or unnecessary handling of
materials
3. Can easily adapt to changing conditions
a) Considers demand growth or decline
b) Considers product change over
c) Considers technological change

6
Basic Layout Types

Process layout (functional or job-shop layout)

Arranges production resources together according to
similarity of function (e.g., all stamping machines together)
Parts being worked on travel according to the established
sequence of operations, from area to area
Low production volumes
Rapid changes in the product mix
High interdepartmental flow
Hospital have this type of layouts, organized cording to
medical services

7
Basic Layout Types

Product layout (flow-shop layout)

Arranges production resources linearly according to the
progressive steps by which a product is made
Parts follow straight line path
High volumes
Short distances
Car washes are an example

8
Basic Layout Types

Group Technology (Cellular) Layout

arranges dissimilar production resources together in a work
center to work on products that have similar shapes or
processing requirements
Compromise between product layout and process layout
Process layout: cells arranged to perform a specific set of processes
Product layout: cells dedicated to a limited range of products

Fixed-Position Layout
Product is large, difficult or impossible to move
arranges production resources around the product, in site
Construction site and movie lots
9
Process vs. Product Layouts

10
Layout according to
production characteristics
Production volume and product variety
determines type of layout
product group layout process layout
production volume

layout

product variety 11
Process Layout
Arrange work centers to minimize transportation cost,
distance or time
Difficult to optimize
General rule: Locate departments with high
interdepartmental flow as close as possible
Information Requirements:
1. List of departments
2. Projection of work flows
3. Distance between locations - cost per unit of distance
4. List of special considerations: location of entrances, elevators;
limitations (need to be close (or far) from others; reinforced
flooring, room dimensions, etc 12
Process Layout (warehouse)
Interdepartmental Flows
Advantages - Flexibility
Less vulnerable to shutdown
(from mechanical failure or absenteeism)
Lower maintenance costs
(and reduced investment in spare parts)
Disadvantages - Inefficiency
Scheduling can be difficult
(= low equipment utilization rates)
Setup, material handling, and labor and costs can be high
Increased work-in-process inventory

13
Process Layout:
Interdepartmental Flows
The most common approach to process layout is to
arrange departments consisting of like processes
optimizing their relative placement
Given
The flow (number of moves) to and from all departments
The cost of moving from one department to another
The existing or planned physical layout of the plant
Determine
The best locations for each department, where best means
maximizing flow, which minimizes costs

14
Process Layout: example

Distance between locations (metres)

Location
From To A B C
A 20 40
B 20 30
C 40 30
Loads between departments (per day)
Department
From To 1 2 3
1 10 80
2 20 30
3 90 70
15
Interdepartmental Work Flows
for Assigned Departments
170

30 100
1 2 3
40
A B C
20 30
From/To Loads Distance Loads X Distance
1-2 10 20 200
1-3 80 40 3 200
2-1 20 20 400
2-3 30 30 900
3-1 90 40 3 600
3-2 70 30 2 100
Total 10 400 16
Interdepartmental Work Flows
for Assigned Departments
30 Swap
170 100 2 and 3
1 3 2

A 40
B C
20 30
From/To Loads Distance Loads X Distance
1-2 10 40 400
1-3 80 20 1,600
2-1 20 40 800
2-3 30 30 900
3-1 90 20 1,800
3-2 70 30 2,100
Total 7,600
17
Process Layout (Office)

Office Layout Considerations:

Most of the workforce works in an office environment
Human interaction and communication are the primary
factors
Need to account for physical environment and
psychological needs
Key trade-off: between proximity and privacy
Open offices promote understanding & trust
Incorporating office landscaping help to solve the
privacy issue in open office environments
18
Process Layout: Systematic
Layout Planning
Numerical flow of items between departments
Can be impractical to obtain
Does not account for the qualitative factors that may be
crucial to the placement decision
Systematic Layout Planning
Accounts for the importance of having each department
located next to every other department
Is also guided by trial and error: Switching departments then
checking the results of the closeness score

19
 Systematic Layout Planning
Closeness: Reasons & Importance
Rating Reason Line Numerical
Rating Closeness
code weights
1 Type of customer
A Absolutely necessary 16
2 Ease of supervision
E Especially important 8
3 Common personnel
I Important 4
4 Contact necessary O Ordinary closeness OK 2
5 Share same price U Unimportant 0
6 Psychology X Undesirable 80

Closeness rating Letter

Reason for rating Number
20
 Systematic Layout: Relating
Reasons and Importance
Area
From To
2 3 4 5 (sq. ft.)
I U A U
1. Credit department 100
6 -- 4 --
U I A
2. Toy department 400
-- 1 6
U X
3. Wine department 300
Note that -- 1
Credit Dept. Note that Toy
X
4. Camera department (1) and Toy Dept. (2) and 100
1
Dept. (2) are Candy Dept.
5. Candy department given a high (5) are given a 100
rating 6 high rating 6
Closeness rating Letter
Reason for rating Number
21
Designing Product Layouts

Designing product layouts requires consideration of:

Sequence of tasks to be performed by each workstation
Logical order
Speed considerations line balancing
Step 1: Identify tasks & immediate predecessors (Given)
Step 2: Determine maximum output rate
Step 3: Determine cycle time
Step 4: Compute Theoretical Minimum number of Stations
Step 5: Assign tasks to workstations (balance the line)
Step 6: Compute metrics (efficiency, idle time, etc.)
22
Assembly Line balancing
Question: Suppose you load work into the three work stations
below such that each will take the corresponding number of
minutes as shown. What is the cycle time of this line?

Station 1 Station 2 Station 3

Min/ unit
6 7 3
Answer:
The cycle time of the line is always determined by the work
station taking the longest time.
In this problem, the cycle time of the line is 7 minutes.

23
Assembly Line balancing:
formulas
OT
Output capacity = , OT = operating time per day, CT = cycle time
CT
OT
CT =
D
N min =
t
D = desired output rate
CT
N min = Theoretical minimum number of work stations
t = sum of the task times

Percentage of idle time =

Idle time 100
N actual Cycle time
Efficiency = 100 - Percentage of idle time 24
Assembly Line balancing
Example
Step 1: Identify tasks & immediate predecessors
(Given)
Consider that assembling an electric fan involves the
following tasks and predecessors:
Task Time (Mins) Description Predecessors
A 2 Assemble frame None
B 1 Mount switch A
C 3.25 Assemble motor housing None
D 1.2 Mount motor housing in frame A, C
E 0.5 Attach blade D
F 1 Assemble and attach safety grill E
G 1 Attach cord B
H 1.4 Test F, G
25
Assembly Line balancing
Example: Precedence Diagram
Task Predecessors Task Predecessors
A None E D
B A F E
C None G B
D A, C H F, G

A B G
H

C D E F

26
Assembly Line balancing
Example: Precedence Diagram
Question: Which process step defines the maximum
rate of production?

2 1 1
A B G 1.4
H

C D E F
3.25 1.2 .5 1

Answer: Task C is the cycle time of the line and

therefore, the maximum rate of production.
27
Assembly Line balancing
Example: bottleneck
Step 2: Determine maximum output rate (assume a 7 hours
working y)
Time of the longest task (C) 3.25 minutes

Max Production = Production time per day = 607 =129 units

Bottleneck time 3.25
Task Time (Mins) Description Predecessors
A 2 Assemble frame None
B 1 Mount switch A
C 3.25 Assemble motor housing None
D 1.2 Mount motor housing in frame A, C
E 0.5 Attach blade D
F 1 Assemble and attach safety grill E
G 1 Attach cord B
H 1.4 Test E, G
28
Assembly Line balancing
Example: cycle time
Step 3: Determine cycle time (assume a required output rate
of 100 units per day)

Production time per period

Required Cycle Time, C=
Required output per period

420 mins / day

C= = 4.2 mins / unit
100 units / day

29
Assembly Line balancing
Example: Min No. stations
Step 4: Compute Theoretical Minimum number of Stations

Theoretical Min. Number of Workstations, N t

Sum of task times (T)

Nt =
Cycle time (C)

N = 11.35 mins/unit = 2.702, therefore 3

t 4.2 mins/unit

30
Assembly Line balancing
Example: Assign Tasks
Step 5: Assign tasks to workstations (balance the line)
A. Assign tasks to station 1, then 2, etc. in sequence.
B. Keep assigning to a workstation ensuring that
precedence is maintained and total work is less than
or equal to the cycle time.
C. Use the following rules to select tasks for
assignment.
i. Primary: Assign tasks in order of the largest number of
following tasks
ii. Secondary (tie-breaking): Assign tasks in order of the
longest operating time
31
Assembly Line balancing
Example: Assign Tasks
2 1 1 Task Followers Time (m)
1.4 A 6 2
A B G
C 4 3.25
H
D 3 1.2
B 2 1
C D E F
E 2 0.5
F 1 1
3.25 1.2 .5 1 G 1 1
H 0 1.4

Station 1 Station 2 Station 3

A (4.2 2 = 2.2) C (4.2 3.25 = .95) D (4.2 1.2 = 3)
B (2.2 1 = 1.2) E (3 .5 = 2.5)
G (1.2 1 = .2) F (2.5 1 = 1.5)
H (1.5 1.4 = .1)
Idle 0.2 Idle 0.95 Idle 0.1
32
Assembly Line balancing
Example: metrics
Step 6: Compute metrics (efficiency, idle time, etc.)
Which station is the bottleneck?

What is the effective cycle time?

Sumof task times (T)

Efficiency Efficiency=
Actualno.of workstations(Na)x Cycletime(C)

11.35 mins / unit

Efficiency = =.901
(3)(4.2mins / unit)
33
Example of Line Balancing: Determine the
Efficiency of the Assembly Line
Sum of task times (T)
Efficiency =
Actual number of workstations (Na) x Cycle time (C)

11.35 mins / unit

Efficiency = =.901
(3)(4.2mins / unit)

34
Designing Product Layouts
Example
Making
Examplepizza
10.4 involves the tasks
Vicki's Pizzeria andbelow and 60 per
the Precedence hour are needed.
Diagram
Immediate Task Time
Work Element Task Description Predecessor (seconds
A Roll dough None 50
B Place on cardboard backing A 5
C Sprinkle cheese B 25
D Spread Sauce C 15
E Add pepperoni D 12
F Add sausage D 10
G Add mushrooms D 15
H Shrinkwrap pizza E,F,G 18
I Pack in box H 15
Total task time 165
35
Other Product Layout
Considerations
Shape of the line (S, U, O, L):
Share resources
Enhance communication & visibility
Impact location of loading & unloading

Paced versus Un-paced lines

Paced lines use an automatically enforced cycle time

Number of Product Models produced

Single
Mixed-model lines

36
Bottleneck Workstation

30/hr. 30/hr. 30/hr. 30/hr.

1 min. 1 min. 2 min. 1 min.

Bottleneck

30/hr. 2 min. 30/hr.

60/hr. 60/hr.
1 min. 1 min. 1 min.
30/hr.
2 min. 30/hr.

Parallel Workstations

37
Treatment of Bottlenecks

38
Group Technology (Cells)

Layout in which machines are grouped into a cell that

can process items that have similar processing
requirements
The grouping into part families of items with similar
design (size, shape and function) or manufacturing
(type and sequence of operations required)
characteristics

39
Group Technology: Transition
from Process Layout
1. Grouping parts into families that follow a common
sequence of steps
2. Identifying dominant flow patterns of part families
as a basis for location or relocation of processes
3. Physically grouping machines and processes into
cells
Three primary methods:
visual inspection,
examination of design and production data,
production flow sequence and routing analysis

40
Group Technology

Advantages

Better human relations

Improved operator expertise
Less in-process inventory and material handling
Faster production time
Reduced setup times
Increased capacity

41
Flows before and after
Group Technology Cells

42
Fixed Position Layout
Layout in which the product or project remains
stationary, and workers, materials, and equipment are
moved as needed.
Nature of the product dictates this type of layout
Weight, Size , Bulk
Large construction projects
What are our primary considerations for a fixed
position layout?
Arranging materials and equipment concentrically
around the production point in their order of use
43
Retail Service Layout
Maximize net profit per square foot of floor space
There are a few ways to organize stores
according to the type of item
maximising customers exposure to the products (may lead
to impulse sales), .e.g. Ikea, carefully plan pathways,
entrances and exits in their stores so that customers walk
through the entire store to get to the checkout
Retail layouts must also:
Provide sufficient customer access, promote a safe shopping
environment
Support delivery and storage systems
Follow laws and government regulations
Example 1: Assembly Line
Balancing
Arrange tasks into three workstations.
Use a cycle time of 1.0 minute

Assign tasks in order of the most number of followers

0.1 min. 1.0 min.

a b

c d e
0.7 min. 0.5 0.2 min.
min.
45