Chapter 1

Introduction
1. Your name
2. College Year
3. Why you chose IE
4. You favorite hobby or
activity
 Facilities Planning Defined

Facilities planning is a complex and broad subject

that cuts across several specialized disciplines. (civil,
electrical, industrial, mechanical, etc)

A facility could be:

 new factory
 new hospital
 School
 Bank
 Store
 existing warehouse
 assembly department
 office
 baggage department of an airport.
 Etc.
Chapter 1 3
Facility Management:

Coordinating the physical workplace with

the people and work of the organization
integrating the principles of business
administration, architecture, and the
behavioral sciences.

Facility management encompasses

multiple disciplines to ensure
functionality of the built environment by
integrating people, place, processes and
technology.
Facility Planning:

the tactical day-to-day issues and

not the more macro topics
addressed in SFP. It solves problems
related to specifics, such as where
individuals sit or the type of
equipment required accommodating
a specific situation.
Strategic facility Planning :

A long-term process that can lead to

better, more proactive delivery of
services from a facility management
organization to its stakeholders.
 Manufacturing
Complex
Chapter 1 7
 Manufacturing Facility
layout

Chapter 1 8
 Manufacturing Facility
Chapter 1 layout 9
 Manufacturing Facility layout (Food
industry)
Chapter 1 10
Cultural
Center
layout

Chapter 1 11
 Office Layout

Parking Layout

Chapter 1 12
Facilities Planning Defined (contd.)

Facilities planning determines how an activity’s

tangible fixed assets best support achieving the
activity’s objective.

Examples:
 Manufacturing facility: how the manufacturing

facility best support production

 Airport: how the airport facility supports the

passenger-airport interface
 Hospital: how the hospital facility supports

providing medical care to patients

Chapter 1 13
 Fixed Tangible
Assets

Chapter 1 14
Facilities Planning Hierarchy

Facilities planning:
 Facilities location

 Facilities design

 Facilities systems design

 Layout design
 Handling systems design

Facilities planning combines the efforts to

determine location of a facility and design of it

Chapter 1 15
Facilities Planning Hierarchy
(contd.)

Facilities
Location
Facility
System
Facilities Design
Planning

Facilities Layout
Design Design

Handling
Systems
Design

Chapter 1 16
Facilities Planning Hierarchy (contd.)

Facilities design: consists of the facility systems,

the layout, and the handling system

o Facility system – structural systems, the atmospheric

systems, the enclosure system, the
lighting/electrical/communication systems, the life
safety system and the sanitation system.

o Layout – consists of all equipment, machinery, and

furnishings within the building envelope.

o Handling system – consists of the mechanisms needed

to satisfy the required facility interactions.
Material handling is very important to the facility
design activity. The choice of material handling
equipment will greatly effect the appropriateness of
Chapterthe
1 facility design. 17
Facilities Planning Hierarchy (contd.)

Which comes first, the material handling

system or the facility layout?

BOTH! The layout and the handling system

should be designed simultaneously

Chapter 1 18
Facilities Planning Hierarchy (contd.)

Facilities location: placement

with respect to customer,
suppliers, and other
facilities with which it
interfaces.
Influences of Plant location:
 Proximity to raw material
 Markets

 Transportation systems

 Economic development

programs (financial
incentives)
 Environmental consideration

ChapterClimate

1 19
 Significant of Facilities
Planning

1. The size of investment in new facilities each

year.
 8% of gross national product (GNP) in USA has been
spent annually on new facilities.

2. Economic considerations
 One of the most effective methods for increasing
plant productivity and reducing cost is to reduce or
eliminate all activities that are unnecessary or
wasteful.
 A facilities design should accomplish this goal in
terms of material handling, personnel and
equipment utilization, reduced inventories, and
Chapter 1 increased quality. 20
 Significant of Facilities Planning
(contd.)

3. Employee health and safety

 Occupational Safety and Health Act: redesign
facilities to consider health and safety and to
eliminate possible hazardous conditions

4. Energy conservation
 Energy has become an important and expensive
raw material

5. Community considerations:
 Fire protection, security, air pollution, noise, and the
ADA (Americans with Disabilities Act) of 1989

Chapter 1 21
Objectives of Facilities Planning

Improve customer satisfaction by being easy

to do business with, conforming to customer
promises, and responding to customer needs.
Increase return on assets (ROA) by maximizing
inventory turns, minimizing obsolete
inventory, maximizing employee participation,
and maximizing continuous improvement.
Maximize speed for quick customer response.
Reduced costs and grow the supply chain
profitability

Chapter 1 22
Objectives of Facilities Planning
(contd.)

Integrate the supply chain through partnership

and communication.
Support the organization’s vision through
improved material handling, material control,
and good housekeeping.
Effectively utilize people, equipment, space,
and energy.
Maximize return on investment (ROI) on all
capital expenditures
Be adaptable and promote ease of
maintenance.
Provide for employee safety and job
satisfaction.
Chapter 1 23
Main Features of Successful Facilities
Plan

Flexibility:
 Flexible facilities are able to handle a variety of
requirements without being altered

Modularity:
 Modular facilities include systems that cooperate
efficiently over a wide range of operating rates

Upgradeability
 Upgraded facilities easily incorporate advances in
equipment systems and technology

Chapter 1 24
Main Features of Successful Facilities Plan
(contd.)

Adaptability:
 Considering the
 Calendar
 Cycles
 Peaks

Selective operability
 Understanding how each facility segment operates
 Allows contingency plans to be put in place

Chapter 1 25
Facilities Planning Process

Must start at the beginning of the project

Even though facilities planning is not an exact

science, it can be approached in an organized,
systematic way.

Types and Sources of Manufacturing Facilities

Design Projects
 New facility -
 New product -
 Design changes - of the product
 Cost reduction - better layout for better
productivity and cost reduction (Lean Thinking)
Chapter 1 26
Quiz 1

What are the factors that

help decide the facility
location?

List
5 minutes
30 students
Chapter 1 27
Facilities Planning Process

By applying the engineering design approach, a

systematic approach can be developed
1. Define the problem
 Define (or redefine) the objective of the facility
(products and productivity levels)
 Specify the primary and support activities to be
performed in accomplishing the objective

2. Analyze the problem

 Determine the interrelationships among all
activities

3. Determine the space requirements for all

activities

Chapter 1
Generate alternative facilities plans 28
Facilities planning process

4. Evaluate the alternatives

 Evaluate alternative facilities plans on the basis of
accepted criteria.

5. Select the preferred design

 Select a facilities plan

6. Implement the design

 Implement the facilities plan
 Maintain and adapt the facilities plan
 Redefine the objective of the facility

Chapter 1 29
Facilities Planning Process
Lean Thinking and Lean Manufacturing

Lean manufacturing - a concept by which

all people work together to eliminate waste
· Overproduction
· Waiting
· Transportation
· Processing
· Inventory
· Motion
· Rework
· Poor people utilization

Chapter 1 31
 The Seven Types of Wastes
The Waste Definition
Over Producing more than needed or Producing faster than
Production needed (need storage place, can be damaged, lost,
no sale)
Over Effort Which Adds No Value to a Product or Service.
processing (Customers not welling to pay for these efforts)

Inventory Any Supply in Excess. (money tied up in inventory,

holding costs, may damage or lost)

Waiting Idle Time, including man wait time and machine wait
time.
Motion Any Movement of People Which Does Not Contribute
Added
Value to the Product or Service.
Transportation Any Material Movement That Does Not Directly
Support a Lean Manufacturing System, or achieve
direct value. (a risk of damaged, lost, delayed, Also
need assets to move such as equipments and/or
workers ).
Other Types of Wastes

The Waste Definition

Breakdown Poor maintenance
Lake of skill Unskilled workers

Unsafe work Causes lost work hours

Poor Poor Information system, poor communication

information
Loss of If expensive
Material

Unused (unused spaces, unused machines)

Capacity
Strategic Facilities Planning

Facilities planning is a strategic process

 Must be an integrated part of overall corporate
strategy
 Every element of the organization must support the
objectives of the firm.

Previously, strategies was restricted to

marketing and finance without clear
understanding of the impact on manufacturing
or on support functions such as material
handling, information system, facilities, etc.

Chapter 1 35
Cost of design changes during a project

Planning is a vital process

Where in the process should we make
changes?
Amount($

Cost of making
design changes
)

Chapter 1 Planning Designing Building Installing Commissioning 36

Developing Facilities Planning
Strategies

The facilities planning process can be

improved in three potential dimensions:
 Physical aspects: building, equipment, and people
 Control: material control, space control, productivity
measures
 Time: for planning (sufficient lead time is needed to
do it right)

The objective is to improve on these three

levels Physical aspects

Control
Chapter 1 Time 37
Developing Facilities Planning
Strategies

Facilities planning should also be well defined as

to how each function fits, interacts and integrate

Customer satisfaction

Team work: everyone involved

Should not accept information delays (true

partnership)

Facilities planner should be proactive, and

participate in the decision making that create the
needs.
Chapter 1 38
Quiz 2 Oct 31st

What are the sources of information for the Facility

planner?

You have 5 minutes

Chapter 1 39
Chapter 1 40
Sources Of Information For Manufacturing
Facilities Design

Product and process design

Marketing
Management policy

Product design
 blueprints
 bill of material (part list)
 indented BOM
 buyouts/fabricate
 assembly drawings
 Part and assembly drawings are especially helpful
in visualization of how parts will fit together
 model shop samples (prototypes)

Relationship between FD and product design is

important
Chapter 1 41
Quiz 1

mention at least three types of

Waste. Provide at least one
example.

Chapter 1 42
Sources Of Information For Manufacturing
Facilities Design

Marketing
 Volume, how many can we sell?
 Seasonality, summer or winter product
 Selling price
 Replacement parts, older products

Chapter 1 43
Sources Of Information For Manufacturing
Facilities Design

Management policy - refers to the upper-level

employees
 inventory policy (Just in Time, Kanban, WIP)
 lean thinking
 investment policy (ROI)
 startup schedule
 make or buy decision
 feasibility studies (what product or process proposal
is the most profitable for the company

Chapter 1 44