INTRODUCTION

FACILITIES PLANNING
AND DESIGN
 LEARNING OBJECTIVES

01 Define Facilities Planning and

Design

02 Explain the importance of facilities

planning and design in industrial
engineering.

03 Identify key concepts and components

involved in facilities planning and design.
WHAT IS FACILITIES
PLANNING AND DESIGN?
Fo cusing on the optimal arrangement and
utili zation of physi cal spaces to support
organizational activi ties . It involves the strategic
pl anning and detail ed design o f facil iti es, incl udi ng
buil dings, equi pment, and infrastructure, to ensur e
effi ci ent operations and meet t h e needs o f users .

F acilities planning - encompasses the process of determini ng

the best location, layout, and configuration of a facility . This
involves analyzing factors such as workflow, material handling,
space requirements, and environmental impact . The goal is to
create a layout that mini mizes costs, ma xi mizes productivity,
and enhances safety and comfort for occupants .
WHAT IS FACILITIES
PLANNING AND DESIGN?
Facility design - It translates the planning p hase into
tangible blueprints and specifications . This includes
architectural design, engineering, and construction
planning . The design phase ensures that the facilit y
meets all regulatory requirements, adheres to industry
standards, and aligns with the organization’s objectives

Effective facilities planni ng and design can lead to si gnifica nt

improvements in operational efficiency, cost savings, and employee
satisfaction . It is a multi discipli nary effort involving industrial
engineers, architects, civil engineers, and other professionals t o create
environme
OPERATIONAL EFFICIENCY
AND COST EFFECTIVENESS

• Optimizes Space Utilization:

Ensures efficient use of
available space, reducing waste
and maximizing productivity.

• Enhances Workflow:
Streamlines processes and
improves workflow, minimizing
delays and bottlenecks.

• Reduces Costs: Lowers

operational costs through
efficient layout and resource
allocation.

• Improves Safety: Designs facilities

with safety in mind, reducing
accidents and associated costs.
OPERATIONAL EFFICIENCY
AND COST EFFECTIVENESS

• Boosts Employee Morale: Creates a

comfortable and ergonomic
environment, enhancing employee
satisfaction and productivity.

• Supports Scalability: Facilitates

future expansion and
adaptability to changing
business needs.

• Increases Sustainability:
Incorporates eco-friendly practices,
reducing environmental impact
and operational costs.
KEY CONCEPT AND
COMPONENTS
1.Facility Layout :
• means deciding where to put all the facilities,
desks, machines, equipment and people in the
operation . it is also concerned with the physical
appear ance of an operation in a bro ader sense . it
governs how safe, how attractive, how flexible and
how efficient an operation is.
objectives of the layout activity :
• Inherent safe ty – This is the prerequisite for any layout in any
type of operation . All processes that might constitute any
physical or other danger to either staff or customers should not
be accessible to the unauthorized . Fire exits should be clearly
marked with uninhi bited access . Pathways should b e clearly
defined and not cluttered .
 KEY CONCEPT AND
COMPONENTS
objectives of the layout activity :

• Security – Similar to safety in some ways, facilities and

layouts shoul d ensure that anyone with mal icious
intent cannot gain access to staff, customers or
property
• Length of flow – The flow of materials, i nformation or
customers sh ould be channeled by the layout so as to be
appropriate for the objectives of the operation . In many
operations thi s means minimizing the distance travelled b y
transformed resources .
• Minimize delays – Delays can, of course, be caused by over-long routes
through the layout, as described above, but inconvenient placing o f
facilities, or in sufficient capacity allocated to parts of the layout (that is, a
bottleneck, see previous chapter), may also cause them.
 KEY CONCEPT AND
COMPONENTS
objectives of the layout activity :

• Reduce work-in- pro gress – E xcess ive work -in-progress

can be caused by bottlenecks, but the layout of a
process may be used deliberately to li mit t he abili ty of
items to accumulate .

• Clarity of flow – All flow o f materials and customers s hould b e

well signposted, clear and evident to staff and customers alike .

• Staff conditions – Layouts s hould be arranged so that staff are located

away from noi sy or unpleasant parts of the operation . The layout shoul d
provide for a well-ventilated, well - lit and, where possible, pleasant
working environment .
 KEY CONCEPT AND
COMPONENTS
objectives of the layout activity :

• Communication – Communication between staff can

be particularly important for some types of operation,
such as those in creative industries . The layouts of
some operations are deliberately designed to promote
the kind of chance meetings between staff that can
lead to the formulation of creative ideas .

• Management co-ordinatio n – Supervision and communi cation

should be assisted by the relative location of staff, the use of
communication devices and information points .
 KEY CONCEPT AND
COMPONENTS
objectives of the layout activity :

• Accessibility – All machines, plant or equipment

should be accessible to a degree that is sufficient for
proper inspection, cleaning and maintenance .

• Use of space – Al l layouts should achieve an appropriate use of

the total space available in the operation (including height as
well as floor space) .

• Use of capital – Capital investment should be mini mized

(consistent with other objectives) when finalizing layout .
 KEY CONCEPT AND
COMPONENTS
objectives of the layout activity :

• Long-term flexibility – Layouts need to be changed

periodically as the needs of the operation change . A
good layout will have been devised with the possi ble
future needs of the operation in mind .

• Image – The l ayout of an operation can help to shape the ima ge of

an organization, both in i ts customer markets and in the labor
market from which i t recruits . The appearance of a layout can be
used as a deliberate attempt to establish a company’s brand .
KEY CONCEPT AND
COMPONENTS
Different types of Layout :

• Fixed - position layo ut - is in some ways a contradiction

in terms, s ince the transformed resources do not move
between the transforming resources . Instead of
materials, in formation or customers flowing through
an op eration, the recipient of the processing is
stationary an d the equip ment, machinery, plant and
people who do the processing move as necessary . Thi s
could be because the product or the recipient of the
service is too l arge to be moved conveniently, or it might
be too delicate to move, or perhaps it could object t o
being moved .
KEY CONCEPT AND
COMPONENTS
Different types of Layout :

Fixed-position layout, For example :

• Motorway construction – the product is too large to
move .
• Operating room (hospital) – patients are too delicate
to move .
• High -class service restaurant – customers would
object to being moved to where food is prepared .
• Shipbuilding – the product is too large to move .
• Mainframe computer maintenance – the product is
too big and probably also too delicate to move, and
the customer might object to bringing it in for repair .
 KEY CONCEPT AND
COMPONENTS
Different types of Layout :

Functi onal layout - si mil ar resources or processes are

located together . This may be because it i s convenient to
group them together, or that the utilization of
transforming resources i s i mproved . It means that when
products, information or customers flow through the
operati on, they will take a route from activity to activity
according to their needs . Different products or customers
will have different needs and therefore take different
routes . Usually this makes the flow pattern in the operation
very complex .
 KEY CONCEPT AND
COMPONENTS
Different types of Layout :
 KEY CONCEPT AND
COMPONENTS
Different types of Layout :

Cell layout - is one where the transformed resources

entering the operation are pre -selected (or pre-select
themselves) to move to one part of the operation (or
cell) in which all the transforming resources, to meet
their immediate processing needs, are located . The cell
itself may be arranged in either a functional or line
layout. After being processed in t he cell, the
transformed resources may go on to another cell .
 KEY CONCEPT AND
COMPONENTS
Different types of Layout :

Cell layout, For example :

• Some computer component manufacture – the
processing and assembly of some types of computer
parts may n eed a special area dedicated to the
manufacturing of parts for one particular customer who
has special requirements, such as particularly high -
quality levels .
• ‘Lunch’ products area in a supermarket – some
customers use the supermarket just to purchase
sandwiches, s avory snacks, cool drinks, yoghurt, etc., for
their lunch . These products are often located close
together so th at customers who are just buying l unch d o
not have to search around the store .
 KEY CONCEPT AND
COMPONENTS
Different types of Layout :

Line layout - involves locating the transforming

resources entirely for the convenience of the
transformed resources . Each product, piece of
information or customer follows a prearranged route in
which the sequence of activities that are required
matches the s equence in which the processes have been
located . The transformed resources ‘flow’ along a ‘line’
of pro cesses according t o their ‘product’ needs . This
is why this type of layout i s sometimes called flow or
product layout . Flow is clear, predictable and therefore
relatively easy to control .
 KEY CONCEPT AND
COMPONENTS
Different types of Layout :

Line layout, For example :

•Auto mobile assembly – almost all variants of the same

model require the same sequence of processes.
•Mass -i mmunization programme – all cus tomers require
the same se quence of cle rical, medical and counselli ng
activities .
•Self-s ervice cafeteria – generally the sequence of
customer requirements (starter, main course, dessert and
drink) is common to all cus tomers, but layout also helps
control customer flow .
 KEY CONCEPT AND
COMPONENTS
Different types of Layout :
KEY CONCEPT AND
COMPONENTS
Different types of Layout:

Mixed Layout - Many operations either design

themselves hybrid layouts which combine
elements of some or all of the basic layout types,
or use the ‘pure’ basic layout types in different
parts of the operation .
Advantages and Disadvantages
KEY CONCEPT AND
COMPONENTS

2. Facility Location :
• Factors influencing location decisions
(e.g., proximity to suppliers/customers,
transportation costs, labor availability) .
• Methods for evaluating location options
(e.g., factor rating method, center of
gravity method) .
KEY CONCEPT AND
COMPONENTS
Key Components of Facility Location :

1.Proximity to Customers and Suppliers

• Custo mers : Being close to customers reduces delivery
times and transportation costs, enha ncing customer
satisfaction .
• Suppliers : Proxim ity to suppliers ensures a steady
supply of raw materials and reduces transportation
costs .
KEY CONCEPT AND
COMPONENTS
Key Components of Facility Location :

2. Availability of Skilled Labor

• Access to a skilled workf orce is essential f or
maintaining high productivity and quality
standards.

3. Infrastructure and Utilities

• Adequate infrastructure, including transportation netw orks,
power supply, water, and waste management, is crucial for
smooth operations .
KEY CONCEPT AND
COMPONENTS
Key Components of Facility Location :

4. Environmental Regulations
• Compliance with local environmental laws and
regulations is necessary to avo id lega l issues and
promote sustainability .

5. Financial Incentives
• Governments often provide f inancial incentives, s uch as tax
breaks and grants, to attract businesses to specific locations .
KEY CONCEPT AND
COMPONENTS
Key Components of Facility Location :

6. Quality of Life
• The quality of life in the area can aff ect employee
satisfa ction and retention . Factors include housing,
education, healthcare, and recreational facilities .

7. Potential for Future Expansion

• The chosen location should have enough space and resources
to accommodate future growth and expansion plans .
LOCATION OF COMPANY
(EXAMPLE)
• DAIHO ( PHILIPPINES),
INC.
• DYNAPAC AND
MALINTA
( PHILIPPINES) INC
• BANDAI NAMCO
PHILIPPINES INC.
• EPSON PR ECISION
( PHILIPPINES), INC.
• HITACHI CABLE
PHILIPPINES, INC.
• MITSUBA
PHILIPPINES COR P.
LIMA TECHNOLOGICAL PARK • YAMAHA MOTOR
(MALVAR BATANGAS) PHILIPPINES, INC.
• TOYOTA TSUSHO
PHILIPPINES
COR POR ATION
LOCATION OF COMPANY
(EXAMPLE)

• B/E AER OSPACE

• HONDA PHILIPPINES
• EATON INDUSTR IES
( PHILIPPINES)
• TE CONNECTIVITY
• IBIDEN
• EMD TECHNOLOGIES
PHILIPPINES INC.
• NIPPON EXPR ESS
• MUR ATA INNOVATORS
FIRST PHILIPPINE INDUSTRIAL IN ELECTR ONICS
PARK (FPIP) • ETC.
KEY CONCEPT AND
COMPONENTS
Key Components of Facility Location :

3. Facility Design :
• is a crucial aspect of industrial engineering that
involves planning and designing the physical layo ut
of a facility to optimize the f low of m aterials,
people, and inform ation . Effective fac ility d esign
can significantly enhance productivity, reduce
costs, and improve overall operational efficiency .
KEY CONCEPT AND
COMPONENTS
Key Components of Facility Design :

Material Flow
• The movement of raw material s, work-in-
progress, and finished goods within a facility .

Equipment Placement
• Strate gic positioni ng of machinery and equipment
within the facility .
KEY CONCEPT AND
COMPONENTS
Key Components of Facility Design :

Space Utilization
• Optimal use of available space to accommodate
all necessary activities .

Workstation Placement
• Arranging works tations to facilitate efficient workflow
and communication .
 SUMMARY

Key Components of Facility Planning & Design:

1.FACILITY LAYOUT
• Objectives of layout activity .
• Different types of layout .
2.FACILITY LOCATION
• Proximity to Customers and Suppliers .
• Availability of skilled labor .
• Infrastructure and Utilities .
• Environmental Regulations .
3.FACILITY DESIGN
• Material Flow
• Equipment placement
• Space Utilization
• Workstation placement
 ANY
QUESTIONS?
FACILITY LAYOUT
ASSESSMENT.

Facili ties layout involves the

arrangement of physical spaces,
equipment, and resources within a
faci li ty to optimize workflow, efficiency,
and productivity . It is crucial in various
industries, including manufacturing,
healthcare, and retail, to ensure smooth
operations and minimize costs .
FACILITY LAYOUT
ASSESSMENT.
Practical Applications Questions :

Manufacturing Plant Layout :

• How can the layout of a manufacturing plant
be optimized to reduce material handling
costs and improve production efficiency?

Healthcare Facility Layout :

• How can t he layout of a hospital be designed to
minimize patient transfer times and improve the
efficiency of medical staff?
FACILITY LAYOUT
ASSESSMENT.
Practical Applications Questions :

Retail Store Layout :

• What strategies can be employed in the

layout design to enhance the customer
shopping experience and encourage longer
store visits?