Chapter Four Layout Planning 4-1-Introduction

1 st year / 2014-2015 / Principles of Industrial Eng. / Chapter 4 / Dr.
May Kassir
Chapter Four
Layout planning
4-1-Introduction
Layout planning is deciding on the best physical arrangement of all resources

that consume space within a facility. These resources might include a desk, a
work center, a cabinet, a person, an entire office, or even a department.
Decisions about the arrangement of resources in a business are not made only
when a new facility is being designed; they are made any time there is a change
in the arrangement of resources, such as a new worker being added, a machine
being moved, or a change in procedure being implemented. Also, layout
planning is performed any time there is an expansion in the facility or a space
reduction.
The arrangement of resources in a facility can significantly affect the

productivity of a business. A lot of wasted time, energy, and confusion can
result from a poor layout. There are also other reasons layout planning is
important. In many work environments, such as office settings, face-to-face
interaction between workers is important. Proper layout planning can be critical
in building good working relationships, increasing the flow of information, and
improving communication. Similarly, in retail organizations layout can affect
sales by promoting visibility of key items and contributing to customer
satisfaction and convenience. Layout planning affects many areas of a business,
and its importance should not be underestimated.
Layout Planning
1
1 st year / 2014-2015 / Principles of Industrial Eng. / Chapter 4 / Dr. May Kassir
The term 'layout planning' can be applied at various levels of planning:
Plant location planning (where you are concerned with location of a factory or a
warehouse or other facility.) This is of some importance in design of multi-
nationally cooperating, Global-supply Chain systems.
Department location Planning: This deals with the location of different

departments or sections within a plant/factory. This is the problem we shall study
in a little more detail, below.
Machine location problems: which deal with the location of separate machine
tools, desks, offices, and other facilities within each cell or department.
Detailed planning: The final stage of a facility planning is the generation, using
CAD tools or detailed engineering drawings, of scaled models of the entire floor
plans, including details such as the location of power supplies, cabling for
computer networks and phone lines, etc.
The Department Location Problem: A department is defined as any single, large

resource, with a well defined set of operations, and fixed material entry and exit
points. Examples range from a large machine tool, or a design department. The aim
is to develop a BLOCK PLAN showing the relative locations of the departments.
4-2- Principles of Plant Layout
The primary criteria for evaluating any layout will be the: minimizion of material
handling costs.
MH cost components: depreciation of MH equipment, variable operating costs, and
labor expenses. Also, MH costs are typically directly proportional to (a) the
frequency of movement of material, and (b) The length over which material is
moved.
1. Principle of integration: A good layout is one that integrates men,

materials, machines and supporting services and others in order to get the
optimum utilisation of resources and maximum effectiveness.
2. Principle of minimum distance: This principle is concerned with the
minimum travel (or movement) of man and materials. The facilities
2
should be arranged such that, the total distance travelled by the men and
materials should be minimum and as far as possible straight line
movement should be preferred.
3. Principle of cubic space utilisation: The good layout is one that utilise
both horizontal and vertical space. It is not only enough if only the floor
space is utilised optimally but the third dimension, i.e., the height is also
to be utilised effectively.
4. Principle of flow: A good layout is one that makes the materials to move
in forward direction towards the completion stage, i.e., there should not
be any backtracking.
5. Principle of maximum flexibility: The good layout is one that can be
altered without much cost and time, i.e., future requirements should be
taken into account while designing the present layout.
6. Principle of safety, security and satisfaction: A good layout is one that
gives due consideration to workers safety and satisfaction and safeguards
the plant and machinery against fire, theft, etc.
7. Principle of minimum handling: A good layout is one that reduces the
material handling to the minimum.
Advantages of the criteria (reduced material movements):
1. Reduction of Aisle space required.

2. Lower WIP levels.
3. Lower throughput times.
4. Less product damage and lower obsolescence.
5. Reduced storage space.
6. Simplified material control and scheduling.
7. Less overcrowding in system.
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4-3-CLASSIFICATION OF LAYOUT
Layouts can be classified into the following five categories:
1. Process layout also called Functional layout
2. Product layout also called Assembly lines layout
3. Combination layout
4. Fixed position layout also called project type
5. Group layout or Cellular Layout
4-3-1-Process Layout/ / Functional layouts
Process layouts are layouts that group resources based on similar processes or
functions. This type of layout is seen in companies with intermittent processing
systems. Process layout is recommended for batch production. All machines
performing similar type of operations are grouped at one location in the process
layout e.g., all lathes, milling machines, etc. are grouped in the shop will be
clustered in like groups. Thus, in process layout the arrangement of facilities are
grouped together according to their functions. A typical process layout is shown
in Fig.(4.1).The flow paths of material through the facilities from one functional
area to another vary from product to product. Usually the paths are long and
there will be possibility of backtracking.
Process layout is normally used when the production volume is not sufficient to
justify a product layout. Typically, job shops employ process layouts due to the
variety of products manufactured and their low production volumes. The
challenge in process layouts is to arrange resources to maximize efficiency and
minimize waste of movement. If the process layout has not been designed
properly, many products will have to be moved long distances, often on a daily
basis.
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Advantages
1. In process layout machines are better utilized and fewer machines are
required.
2. Flexibility of equipment and personnel is possible in process layout.
Fig. (4.1) Process layout
3. Lower investment on account of comparatively less number of machines and

lower cost of general purpose machines.
4. Higher utilization of production facilities.
5. A high degree of flexibility with regards to work distribution to machineries
and workers.
6. The diversity of tasks and variety of job makes the job challenging and
interesting.
7. Supervisors will become highly knowledgeable about the functions under
their department.
Limitations
1. Backtracking and long movements may occur in the handling of materials

thus, reducing material handling efficiency.
5
2. Material handling cannot be mechanized which adds to cost.

3. Process time is prolonged which reduce the inventory turnover and increases
the in-process inventory.
4. Lowered productivity due to number of set-ups.
5. Throughput (time gap between in and out in the process) time is longer.
6. Space and capital are tied up by work-in-process.
4-3-2 - Product Layout / (assembly lines layout)
In this type of layout, machines and auxiliary services are located according to
the processing sequence of the product. If the volume of production of one or
more products is large, the facilities can be arranged to achieve efficient flow of
materials and lower cost per unit. Special purpose machines are used which
perform the required function quickly and reliably.
The product layout is selected when the volume of production of a product is

high such that a separate production line to manufacture it can be justified. In a
strict product layout, machines are not shared by different products. Therefore,
the production volume must be sufficient to achieve satisfactory utilization of
the equipment. See Table 4-1 for the comparison between process and product
layout. A typical product layout is shown in Fig. (4.2).
Fig. (4.2) Product layout
Advantages
1. The flow of product will be smooth and logical in flow lines.
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2. In-process inventory is less.

3. Throughput time is less.
4. Minimum material handling cost.
5. Simplified production, planning and control systems are possible.
6. Less space is occupied by work transit and for temporary storage.
7. Reduced material handling cost due to mechanized handling systems and
straight flow.
8. Perfect line balancing which eliminates bottlenecks and idle capacity.
9. Manufacturing cycle is short due to uninterrupted flow of materials.
10. Small amount of work-in-process inventory.
11. Unskilled workers can learn and manage the production.
Limitations
1. A breakdown of one machine in a product line may cause stoppages of

machines in the downstream of the line.
2. A change in product design may require major alterations in the layout.
3. The line output is decided by the bottleneck machine.
4. Comparatively high investment in equipments is required.
5. Lack of flexibility. A change in product may require the facility modification.
Table ( 4-1) Characteristics of Process and Product Layouts
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4-3-3 - Combination Layout
A combination of process and product layouts combines the advantages of both

types of layouts.
A combination layout is possible where an item is being made in different types
and sizes. Here machinery is arranged in a process layout but the process
grouping is then arranged in a sequence to manufacture various types and sizes
of products. It is to be noted that the sequence of operations remains same with
the variety of products and sizes. Figure 4.3 shows a combination type of layout
for manufacturing different sized gears.
Figure ( 4.3) a combination layout
4-3-4 - Fixed Position Layout / project type
This is also called the project type of layout. See Fig. ( 4.4). In this type of
layout, the material, or major components remain in a fixed location and tools,
machinery, men and other materials are brought to this location. This type of
layout is suitable when one or a few pieces of identical heavy products are to be
manufactured and when the assembly consists of large number of heavy parts,
the cost of transportation of these parts is very high as in ships and airplanes
assembly.
Fig. 4.4
Fixed position
layout
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Advantages
The major advantages of this type of layout are:

1. Helps in job enlargement and upgrades the skills of the operators.
2. The workers identify themselves with a product in which they take interest
and pride in doing the job.
3. Greater flexibility with this type of layout.
4. Layout capital investment is lower.
4-3-5 - Group Layout (or Cellular Layout)
There is a trend now to bring an element of flexibility into manufacturing system

as regards to variation in batch sizes and sequence of operations. A grouping of
equipment for performing a sequence of operations on family of similar
components or products has become all the important.
Group Technology (GT) is the analysis and comparisons of items to group them
into families with similar characteristics. GT can be used to develop a hybrid
between pure process layout and pure flow line (product) layout. This technique
is very useful for companies that produce variety of parts in small batches to
enable them to take advantage and economics of flow line layout.
The application of group technology involves two basic steps; first step is to
determine component families or groups. The second step in applying group
technology is to arrange the plants equipment used to process a particular family
of components. This represents small plants within the plants. The group
technology reduces production planning time for jobs. It reduces the set-up time.
Thus group layout is a combination of the product layout and process layout. It
combines the advantages of both layout systems. If there are m -machines and
n -components, in a group layout (Group-Technology Layout), the m-machines
and n-components will be divided into distinct number of machine-component
cells (group) such that all the components assigned to a cell are almost
9
processed within that cell itself. Here, the objective is to minimize the inter-cell
movements.
The basic aim of a group technology layout is to identify families of components
that require similar of satisfying all the requirements of the machines are
grouped into cells. Each cell is capable of satisfying all the requirements of the
component family assigned to it. See fig (4.5). In-group technology layout, the
objective is to minimize the sum of the cost of transportation and the cost of
equipments. So, this is called as multi-objective layout.
Advantages of Group Technology Layout:
Group Technology layout can increase:
1. Component standardization and rationalization.
2. Effective machine operation and productivity.
3. Customer service.
It can decrease the:
1. Paper work and overall production time.
2. Work-in-progress and work movement.
3. Overall cost.
Fig. 4.5 Process flows before and after the use of GT

cells
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4-4- Types of Flow Patterns
4-4-1- Flow Patterns: Flow within Workstations

Motion studies and ergonomics considerations are important in establishing
the flow within workstations. Flow within workstations should be:
 Simultaneous: coordinated use of hands, arms and feet.
 Symmetrical: coordination of movements about the center of the body.
 Natural: movements are continuous, curved, and make use of momentum.
 Rhythmical and Habitual: flow allows a methodological and automatic
sequence of activities. It should reduce mental, eye and muscle fatigue, and
strain.
4-4-2- Flow Patterns: Flow within Departments
 The flow pattern within departments depends on the type of department.
 In a product and/or product family department, the flow follows the
product flow.
 In a process department, little flow should occur between workstations
within departments.
4-4-3- Flow Pattern: Flow between Departments
 Flow between departments is a criterion often used to evaluate flow
within a facility.
 Flow typically is a combination of the basic horizontal flow patterns
shown below. An important consideration in combining the flow patterns
is the location of the entrance (receiving department) and exit (shipping).
In the facilities layout problem, the decision regarding placement of the

machines is typically made. Depending on the application and availability of
space, the machines are placed in one of the following pattern:
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Vertical Flow Pattern
12
Table 4-2 The advantages and disadvantages of the basic layout types
4-5- DESIGNING PROCESS LAYOUTS
When designing a process layout, the most common tactic is to arrange

departments or work centers so that the cost of material handling is minimum.
For this, departments with large flows of parts or people between them should
be placed next to one another. Material handling costs in this approach depend
on:
• The number of loads or people to be moved between two departments during

some period of time, and
• The distance linked costs of moving loads or people between departments.

Cost is considered to be a function of distance between departments.
The objective function can be written as follows:
13
The term C ij combines distance and other costs into one factor. We thereby
assume that the difficulty of movement is equal and the pickup and set down
costs are constant.
Example 4.1. A company management wants to arrange the six departments of

its factory in a way that will minimize interdepartmental material handling
costs. They make an initial assumption (to simplify the problem) that each
department is 20 × 20 feet and that the building is 60 feet long and 40 feet wide.
The process layout procedure that they follow involves six steps:
Step-1: Construct a ‘ from-to-matrix’ showing the flow of parts or materials

from department to department (see the Table).
Step-2: Determine the space requirements for each department (Figure-3.5

shows the available plant space).
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Step-3: Develop an initial schematic diagram showing the sequence of

departments through which parts must move. Try to place departments with a
heavy flow of materials or parts next to one another (Figure-3.6).
Step-4: Determine the cost of this layout by using the material handling cost
equation:
For this problem, the company assumes that a forklift carries all
interdepartmental loads. The cost of moving one load between adjacent
departments is estimated to be $1. Moving a load between nonadjacent
departments costs $2. Thus, looking at Table 3.4, we see that the handling cost
between departments 1 and 2 is $50 (i.e., $1 × 50 loads), the handling cost
between departments 1 and 3 is $200 (i.e., $2x100 loads), and the handling cost
between departments 1 and 6 is $40 (i.e., $2 × 20 loads), and so on. The total
cost for this layout is shown in Table 3.5.
Figure 4.6. Building Dimensions and a Possible Layout.
Step-5: By trial and error, try to improve the layout shown in Figure-3.6 to
establish a reasonably good arrangement of departments.
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Table 4.5
Figure 4.7. Interdepartmental flow graph with number of loads per week.
By looking at both the flow graph (Figure 4.7) and the cost calculations, it is
obvious that placing departments 1 and 3 together seem desirable. They are
presently nonadjacent, and due to the high volume of flow between them the
material handling cost is high. One possibility is to exchange the position of 1
and 2. Doing this will change the cost which is shown in Table 4.6.
16
Figure 4.8. Second flow graph with number of loads per week.
Table 4.5
Figure 4.7. Interdepartmental flow graph with number of loads per week.
17
By looking at both the flow graph (Figure 4.7) and the cost calculations, it is
obvious that placing departments 1 and 3 together seem desirable. They are
presently nonadjacent, and due to the high volume of flow between them the
material handling cost is high. One possibility is to exchange the position of 1
and 2. Doing this will change the cost which is shown in Table 4.6.
Figure 4.8. Second flow graph with number of loads per week.
Table 4.6
This change, of course, is just one of the many possible combinations. For a six-
department problem, the possible combination is 6! = 6 × 5 × 4 × 3 × 2 × 1 =
18
720. In layout problems, we seldom find the optimal solution and will have to
be satisfied with a ‘reasonable’ one reached after a few trials.
We can try a few steps more to find a layout which is less expensive than the
present one.
Figure 4.9. Feasible Layout for the company.
Figure 4.1. Systematic Layout Planning Procedure.
Figure 4.10. Systematic Layout Planning Procedure.
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4-6- The Systematic Layout Planning Procedure:
1-Preparation phase: the following tools are used in the layout preparation
phase:
• Graphic and schematic analysis: Perhaps the most common layout planning
tools are templates—two dimensional cutouts of equipment drawn to scale.
• Operation Process Chart (OPC): operations, and inspections only
• Flow Process Chart (FPC): operations, inspections, transports, delays, and

storage.
• Multiple-product Chart (MPC):
• From-To Chart (FTC) / or flow chart:
2. An ‘activity relationship diagram (ARD)’ shows the desired closeness of

departments and areas within the plant. It reflects the fact that not all important
relationships.
3. Step 3 consists of using the information generated in Steps 1 and 2 to

prepare a string diagram showing near optimal placement of the facilities
without considering the space constraints. The placement is done by trial and
error. Usually, the areas with an A closeness are shown first and are connected
with 4 straight lines, then E with 3 straight lines, and so on.
4. Step 4 may be called the ‘adjustment step’. Here the adjustment must be
made for space needs as related to space availability; so, the space requirements
have to be determined. This can be done through calculations, adjustments of
past areas, intuition or estimates.
5. Once these space requirements are known, it is necessary to consider the

space available. In some cases, since the layout must fit into the existing
buildings, the space available is highly restricted.
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Figure 7.11 Collecting information in functional lay
Figure 4.11 Collecting information in functional layout
Figure 4.12. Relationship Chart for an Office
21

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1 st year / 2014-2015 / Principles of Industrial Eng. / Chapter 4 / Dr.

Layout planning is deciding on the best physical arrangement of all resources

The arrangement of resources in a facility can significantly affect the

The term 'layout planning' can be applied at various levels of planning:

Department location Planning: This deals with the location of different

The Department Location Problem: A department is defined as any single, large

4-2- Principles of Plant Layout

1. Principle of integration: A good layout is one that integrates men,

Advantages of the criteria (reduced material movements):

1. Reduction of Aisle space required.

Fig. (4.1) Process layout

3. Lower investment on account of comparatively less number of machines and

1. Backtracking and long movements may occur in the handling of materials

2. Material handling cannot be mechanized which adds to cost.

4-3-2 - Product Layout / (assembly lines layout)

The product layout is selected when the volume of production of a product is

Fig. (4.2) Product layout

1. The flow of product will be smooth and logical in flow lines.

2. In-process inventory is less.

1. A breakdown of one machine in a product line may cause stoppages of

4-3-3 - Combination Layout

A combination of process and product layouts combines the advantages of both

Figure ( 4.3) a combination layout

4-3-4 - Fixed Position Layout / project type

The major advantages of this type of layout are:

4-3-5 - Group Layout (or Cellular Layout)

There is a trend now to bring an element of flexibility into manufacturing system

Advantages of Group Technology Layout:

Group Technology layout can increase:

1. Component standardization and rationalization.

2. Effective machine operation and productivity.

It can decrease the:

1. Paper work and overall production time.

2. Work-in-progress and work movement.

Fig. 4.5 Process flows before and after the use of GT

4-4- Types of Flow Patterns

4-4-1- Flow Patterns: Flow within Workstations

In the facilities layout problem, the decision regarding placement of the

Vertical Flow Pattern

4-5- DESIGNING PROCESS LAYOUTS

When designing a process layout, the most common tactic is to arrange

• The number of loads or people to be moved between two departments during

• The distance linked costs of moving loads or people between departments.

The objective function can be written as follows:

Example 4.1. A company management wants to arrange the six departments of

Step-1: Construct a ‘ from-to-matrix’ showing the flow of parts or materials

Step-2: Determine the space requirements for each department (Figure-3.5

Step-3: Develop an initial schematic diagram showing the sequence of

Figure 4.6. Building Dimensions and a Possible Layout.

Figure 4.9. Feasible Layout for the company.

Figure 4.1. Systematic Layout Planning Procedure.

Figure 4.10. Systematic Layout Planning Procedure.

4-6- The Systematic Layout Planning Procedure:

• Operation Process Chart (OPC): operations, and inspections only

• Flow Process Chart (FPC): operations, inspections, transports, delays, and

• Multiple-product Chart (MPC):

• From-To Chart (FTC) / or flow chart: