Lecture 37-39

 Facility Layout Chapter 10 (Pages: 372-410)

 Ops Mgmt by Reid and Sanders
 Facility Layout
 Layout planning
 Deciding on the best physical arrangement of all
resources that consume space within a facility.
Facility Layout
 Facilities Layout Problems
 Layout problems occur in many environments
 Hospitals
 Warehouses
 Industrial Plants etc.
What Is Layout Planning
 Layout planning is determining the best physical
arrangement of resources within a facility
 Facility resource arrangement can significantly affect
productivity
 Two broad categories of operations:
 Intermittent processing systems – low volume of many
different products
 Continuous processing systems – high volume of a
few standardized products
Facility Layout
 Objectives in a plant layout:
 Minimize the investment required in new
equipment
 Minimize the time required for production
 Utilize existing space most efficiently
 Provide convenience, safety and comfort of the
employees
 Minimize the material handling cost
 Facilitate the Manufacturing Process
 Facilitate the organizational structure
Facility Layout
 Patterns of Flow:
 Straight Line
 U Flow
 L Flow
 Circular Flow
 Serpentine Flow
 S Flow
Layout Types
Types of Layouts
 Four basic layout types consisting of;
 Process layouts - Group similar resources
together
 Product layouts - Designed to produce a
specific product efficiently
 Hybrid layouts - Combine aspects of both
process and product layouts
 Fixed-Position layouts - Product is two large to
move; e.g. a building
Process Layouts
 Process layout unique characteristics include;

 General purpose & flexible resources

 Facilities are more labor intensive
 Lower capital intensity & automation
 Higher labor intensity
 Processing rates are slower
 Material handling costs are higher
 Scheduling resources & work flow is more
complex
 Space requirements are higher
Process Layout Advantages
a. Wide flexibility exists as regards allotment of work to
equipment and workers.
b. Better utilization of the available equipment.
c. Comparatively less number of machines are needed,
thus involving reduced capital investment.
d. Better product quality, because the supervisors and
workers attend to one type of machines and operations.
e. Varieties of jobs coming as different job orders make the
work more interesting for the workers.
f. Workers in one section are not affected by the nature of
the operations carried out in another section. For
example, a lathe operator is not affected by the rays of
the welding as the two sections are quite separate.
 Process Layout Disadvantages
 (When Compared with Product Layout):
a. For the same amount of production, process layout
needs more space.
b. Automatic material handling is extremely difficult.
c. More material-in-process remains in queue for further
operations, so work-in-process inventory is large.
d. Completion of same product takes more time.
e. Production control becomes difficult.
f. Raw material has to travel larger distances for being
processed to finished goods. This increases material
handling and the associated costs.
g. It needs more inspections and efficient co-ordination.
Product Layouts
 Product layout unique characteristics are:
 Produce small number of products efficiently
 Resources are specialized
 High capital intensity
 Low flexibility relative to the market
 Processing rates are faster
 Material handling costs are lower
 Lower space requirements
Product Layouts Advantages
 Less space requirements for the same volume of
production.
 Automatic material handling, lesser material handling
movements, times and costs.
 Less in-process inventory.
 Product completes in lesser time.
 Better co-ordination and simple production planning
and control.
 Smooth and continuous work flow.
 Less skilled workers may serve the purpose.
Product Layouts Disadvantages
 Disadvantages as Compared with Process Layout:
a. Since the specified product determines the layout, a
change in product involves major changes in layout and
thus the layout flexibility is considerably reduced.
b. The pace or rate of working depends upon the output
rate of the slowest machine. This involves excessive
idle time for other machines if the production line is not
adequately balanced.
c. Machines being scattered along the line, more
machines of each type have to be purchased for
keeping a few as stand by, because if one machine in
the line fails, it may lead to shut down of the complete
production line. This is how product layout involves
higher capital investments.
Product Layouts Disadvantages
d. Though it involves less supervision as compared to
process layout, sometimes it (inspection) becomes
difficult when one inspector has to look after many (say
all welding) machines in two or more production lines.
e. It is difficult to increase production beyond the
capacities of the production lines.
Hybrid Layouts
 Combine elements of both product & process
layouts
 Maintain some of the efficiencies of product
layouts
 Maintain some of the flexibility of process
layouts
 Examples:
 Group technology & manufacturing cells
 Grocery stores
Hybrid Layouts
 A hybrid/combination layout is also useful when a
number of items are produced in same sequence
but none of the items are to be produced in bulk
and thus no item justifies for an individual and
independent production line. For example, files,
hacksaws, circular metal saws, wood saws, etc.
can be manufactured on a combination type of
layout.
Hybrid Layouts
Fixed-Position Layout
 Used when product is large
 Product is difficult or impossible to move, i.e. very
large or fixed
 All resources must be brought to the site
 Scheduling of crews and resources is a challenge
 Examples of fixed-position layouts include building
construction, dam or bridge construction,
shipbuilding, or large aircraft manufacture. The
challenge with a fixed-position layout is scheduling
different work crews and jobs and managing the
project.
Fixed Position Layout
Fixed-Position Advantages
a. It is possible to assign one or more skilled workers
to a project from start to finish in order to ensure
continuity of work.
b. It involves least movement of materials.
c. There is maximum flexibility for all sorts of changes
in product and process.
d. A number of quite different projects can be taken
with the same layout.
Fixed-Position Disadvantages
a. It usually involves a low content of work-in-progress.
b. There appears to be low utilization of labour and
equipment.
c. It involves high equipment handling costs.
Facility Layout Decisions-Example
 Company wants to arrange Four of its
departments in a Row so that the Total Distance
Traveled between Departments is minimized.
 This part of the building will contain four
departments arranged in a row.
Facility Layout Decisions
 Company wishes to minimize the total daily inter-
departmental distance traveled.
 The number of daily communications between
each pair of department is shown:
Example
Example (A-B-C-D)
Example (B-A-C-D)
Facility Layout Decisions
 But the firm has to consider all of the 24 (4! =
4x3x2x1) possible configurations before it knows
if this is the optimal configuration.
Designing Process Layout
 The objective in designing process layouts is to
place resources close together based on the need
for proximity. This need could stem from the number
of trips that are made between these resources or
from other factors, such as sharing of information
and communication.
 There are three steps in designing process layouts:
 Step 1: Gather information.
 Step 2: Develop a block plan or schematic of the
layout.
 Step 3: Develop a detailed layout.
Facility Layout Decisions
 Systematic Layout Planning (SLP) is an
organized approach to facility Layout planning.
 Two charts providing useful information:
 Activity Relationship Chart
 From-To Chart
Activity Relationship Chart
 An Activity Relationship Chart (Rel Chart) is a
graphical means of representing the desirability of
locating pairs of operations near each other. The
letters codes suggesting closeness:
 A - Absolutely necessary
 E - Especially Important
 I - Important
 O - Ordinary Importance
 U - Unimportant
 X - Undesirable
From To Chart
 A from to chart is similar to the mileage chart that
appears at the bottom of the many road maps
and give the mileage between two cities.
Designing Process Layouts
 Step 1: Gather information:
 Space needed, space available, importance of
proximity between various units
 Step 2: Develop alternative block plans:
 Using trial-and-error or decision support tools
 Step 3: Develop a detailed layout
 Consider exact sizes and shapes of departments and
work centers including aisles and stairways
 Tools like drawings, 3-D models, and CAD software
are available to facilitate this process
Process Layout Steps
 Step 1: Gather information like space needed, from-to matrix,
and REL Chart for Recovery First Sports Medicine Clinic
(total space 3750 sq. ft.)

A B C
Radiology Laboratory Lobby &
Waiting
400 sq. ft. 300 sq. ft. 300 sq. ft.

D E F
Examining Surgery & Physical
Rooms Recovery Therapy
800 sq. ft. 900 sq. ft. 1050 sq. ft.
Step 1: Gather Information
(continued)
 Step 2: Develop a New Block Layout
 Use trial and error with from-to and REL
Charts as a guide
 Use computer software like ALDEP or
CRAFT
Facility Layout Decisions
 Arranging people and equipment in a facility can
quickly become complex.
 The greater the variety of ways in which products
are carried through the facility, the greater the
number of potential layouts.
 When there are many alternatives to consider,
the analytic models are helpful.
Decision Support Tools
 Trial and error method good for simple problems
 Layout problems are combinatorial,
 3x2 office layout has 6! Options (6*5*4*3*2*1 =
720 options)
 Computer programs are available decision
support tools
 ALDEP based on REL and CRAFT based on
from-to matrix
 A number of computer software packages can be
used as decision-support tools in making the layout
decision. Two of the most popular are ALDEP
(automated layout design program) and
CRAFT(computerized relative allocation of facilities
technique). They are called decision-support tools
because they use different heuristics to develop a
solution. They do not give an optimal solution, and
they consider only one criterion at a time in
designing a layout. The best way to use these
software packages is to consider the software
solution as a starting point in developing a final
layout.
 ALDEP works from a REL chart. It constructs a
layout within the boundaries of the facility by trying to
link together departments that have either an A or an
E rating in the REL chart. Remember that an A rating
stands for absolutely necessary and an E rating for
especially important. ALDEP uses this logic to link
these departments together.
 The first department is selected randomly. To
evaluate a layout, the computer program computes a
score that is similar to the lxd score we computed
using trial and error. Depending on the starting point
selected, many different layouts can be obtained.
 CRAFT works differently from ALDEP. It is also a
heuristic, but it uses a different logic to find a
solution. CRAFT uses a from–to matrix and an
existing layout as a starting point. It proceeds by
making paired exchanges of departments that lead
to a reduction of the lxd score and continues in this
manner until there are no more exchanges that can
reduce the lxd score. The solution with the lowest
lxd score is the final solution.
Example
 A small accounting rented space in a new one-floor
building.
 The firm has allocated 6000 square meter to its
seven departments as follows:
Example
Example
Example
Example
Rel Diagram
 This Activity Relationship Diagram is essentially
an Illustration of the Information Contained in the
Activity Relationship Chart.
 All departments in this diagram are Represented
by equal size boxes.
 The next step is to anticipate the space required
for each Department.
Facility Layout
 In the final step, we should develop and evaluate
several alternative layouts, while keeping in mind
the Practical Limitations.
 Some examples of Practical Limitations in this
case were as follows:
 1. It is considered that offices for partners (2), the
meeting room (7) and the reception area (1)
should be close to each other.
 2. It is important that the juniors (4) and the
managers (3) be close together.
Example
 As a result of these limitations, An
alternative floor plan is developed as
follows:
Example
 This floor plan may be revised many times until
the best layout has been found.
 Usually departments are positioned one by one,
Beginning with the department with the Highest A
or E ratings.
 Systematic Layout Planning is essentially an
organized Trial-and-Error Approach.
 Therefore, unless all possible layouts are
considered, There is no way to know if an
Optimal Solution been Reached.
 However, there are a number of Heuristics that
can be used to Generate good solutions Quickly.
 Heuristics: Trial-and-error solutions that do not
give optimal solution but easy to apply.
 Layout planning Heuristics are of two types:
 Those which start with an initial layout and
proceed to modify it (These are called
Improvement Heuristics)
 Those which start the Layout analysis from
scratch (Construction Heuristics.)
 The most widely known algorithm requiring an
Initial Layout developed by hand is the
Computerized Relative Allocation of Facilities
Technique (CRAFT).
 CRAFT was developed for situations in which
Materials Handling Costs were a major
consideration.
 Therefore, its goal is to Minimize the Total
Cost of Moving Items between Departments.
 It attempts to improve an Initial Layout by
switching the locations of pairs of departments.
 It begins with one department, and one by one
Analyzes the effect on total travel cost of
switching those departments.
Lecture 40-42
 Facility Layout
 While the Original CRAFT was used only for
single-story buildings,
 An extension of CRAFT called SPACECRAFT
can handle multistory buildings.
 Some examples of Construction Heuristics
include CORELAP (Computerized Relationship
Layout Planning) and ALDEP (Automated
Layout Design Program).
 These heuristics start with an empty floor area
and proceed to fit departments.
 ALDEP can be used in a multistory building. It
generates many alternative layouts.
 CORELAP on the other hand, can lay out
only single story buildings.
 Both programs use closeness codes
defined in the Activity Relationship Charts.
Special Cases of Process Layouts
 There are a number of unique process
layouts which include

 Warehouse layouts

 Office Layouts
Warehouse Layouts
 Warehouse Layout Considerations:
 Primary decision is where to locate each
department relative to the dock
 Departments can be organized to minimize
“lxd” totals
 Departments of unequal size require
modification of the typical lxd calculations to
include a calculation of the “ratio of trips to
area needed”
 The usage of “Crossdocking” modifies the
traditional warehouse layouts; more docks,
less storage space, and less order picking
Cross Docking
 Cross docking is a logistics procedure where
products from a supplier or manufacturing plant
are distributed directly to a customer or retail
chain with marginal to no handling or storage
time.
 Cross docking takes place in a distribution
docking terminal; usually consisting of trucks
and dock doors on two (inbound and outbound)
sides with minimal storage space.
 The name ‘cross docking’ explains the process
of receiving products through an inbound dock
and then transferring them across the dock to
the outbound transportation dock.
 Office Layouts
 Office Layout Considerations:
 Almost half of US workforce works in an office
environment
 Human interaction and communication are the
primary factors in designing office layouts
 Layouts need to account for physical environment
and psychological needs of the organization
 One key layout trade-off is between proximity and
privacy
 Open concept offices promote understanding &
trust
 Flexible layouts incorporating “office landscaping”
help to solve the privacy issue in open office
environments
An Unbalanced Line
 What’s the problem here?
Line Balancing
 Line balancing tries to equalize the amount
of work at each workstation
 Two constraints in line balancing:
 Precedence requirements
 Cycle time restrictions
 Cycle Time vs. Flow Time
 Cycle time = max time spent at any station
 Flow time = time to complete all stations
Designing Product Layouts
 Product layouts are different than process layouts
 Product layouts provide for sequential product
movement that enhances efficiency
 Designing product layouts requires consideration of
 Sequence of tasks to be performed by each
workstation
 Logical order
 Speed considerations – line balancing
Designing Product Layouts – Line Balancing
Procedure
 Step 1: Identify tasks & immediate predecessors
 Step 2: Determine the desired output rate
 Step 3: Calculate the cycle time
 Step 4: Compute the theoretical minimum number
of workstations
 Step 5: Assign tasks to workstations (balance the
line)
 Step 6: Compute efficiency, idle time & balance
delay
Example 10.4
 Vicki’s Pizzeria is planning to make boxed take-
out versions of its famous pepperoni, sausage,
and mushroom pizza. The pizzas will be made
on a small assembly line. Vicki has identified the
tasks that need to be performed, the time
required for each task, and each task’s
immediate predecessor. This information is
shown here:
Step 1: Identify Tasks & Immediate Predecessors
Example 10.4 Vicki's Pizzeria and the Precedence 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
Layout Calculations
 Step 2: Determine output rate
 The next step is to determine how many units of
product we wish to produce over a period of time,
called the output rate.
 In our example, Vicki has decided that she wishes to
produce 60 pizzas per hour in order to meet her
growing demand.
 The total task time to produce 1 pizza is 165 seconds.
If Vicki wants to perform all nine work elements
herself, her maximum output in 1 hour would be:
 Layout Calculations
 Step 3: Determine cycle time
 The amount of time each workstation is allowed to complete its
tasks
available time (sec./day ) 60 min/hr x 60 sec/min
Cycle time (sec./unit ) = = = 60 sec./unit
desired output (units/hr ) 60 units/hr

 Limited by the bottleneck task (the longest task in a

process):
available time 3600 sec./hr.
Maximum output = = = 72 units/hr, or pizzas per hr
bottleneck task time 50 sec./unit
 Layout Calculations (continued)

 Step 4: Compute the theoretical minimum

number of stations
 TM = number of stations needed to achieve
100% efficiency (every second is used)

 (task times ) 165 seconds

TM = = = 2.75, or 3 stations
cycle time 60 sec/station

 Always round up (no partial workstations)

 Serves as a lower bound for our analysis
 Layout Calculations (continued)
 Step 5: Assign tasks to workstations
 Start at the first station & choose the longest eligible task
following precedence relationships
 Continue adding the longest eligible task that fits without going
over the desired cycle time
 When no additional tasks can be added within the desired
cycle time, begin assigning tasks to the next workstation until
finished.
Workstation Eligible task Task Selected Task time Idle time
A A 50 10
1
B B 5 5
C C 25 35
2 D D 15 20
E, F, G G 15 5
E, F E 12 48
F F 10 38
3
H H 18 20
I I 15 5
 Last Layout Calculation
 Step 6: Compute efficiency and balance delay
 Efficiency (%) is the ratio of total productive time
divided by total time (N=# of Workstations C=Cycle
Time)
Efficiency (%) =
t = 165 sec.
(100) = 91.7%
NC 3 stations x 60 sec.

 Balance delay (%) is the amount by which the line

falls short of 100%
Balance delay = 100% − 91.7% = 8.3%
Example-Class Assignment
 The Speedy Pizza Palace is revamping its order
processing and pizza-making procedures. The
demand for pizzas is 120 per night (5:00 p.m. to
1:00 a.m.). In order to deliver fresh pizza fast, six
elements must be completed.
Solution
Efficiency vs Workstations
 Ideally we would like to have minimum number of
workstations and also the highest efficiency.
 If there is inconsistency between these two
measures, generally go with the minimum number of
workstations.
Example-Home Assignment
 The TLB Yogurt Company must be able to make 600
party cakes in a 40 hour week. Use the following
information to draw and label a precedence diagram,
compute cycle time, compute the theoretical minimum
number of workstations, balance the assembly line, and
calculate its efficiency.
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 products produced

 Single
 Mixed-model lines
Designing Hybrid Layouts
 One of the most popular hybrid layouts uses Group
Technology (GT) and a cellular layout
 GT has the advantage of bringing the efficiencies of a
product layout to a process layout environment
Process Flows before the Use of GT Cells
Process Flows after the Use of GT Cells
Facility Layout Across the Organization

 Layout planning is organizationally

important for an efficient operations
 Marketing is affected by layout especially
when clients come to the site
 Human resources is affected as layout
impacts people
 Finance is involved as layout changes
can be costly endeavors