Chapter 8

Facility Layout:
Manufacturing and Services

Slide 1 of 96
 Overview
Overview
 Introduction
 Manufacturing Facility Layouts
 Analyzing Manufacturing Facility Layouts
 Service Facility Layouts
 Wrap-Up: What World-Class Producers Do

Slide 2 of 96
 Introduction
Introduction
 Facility layout means planning:

for the location of all machines, utilities, employee
workstations, customer service areas, material
storage areas, aisles, restrooms, lunchrooms,
internal walls, offices, and computer rooms

for the flow patterns of materials and people
around, into, and within buildings

Slide 3 of 96
 Locate
Locate All
All Areas
Areas In
In and
and Around
Around Buildings
Buildings
 Equipment
 Work stations
 Material storage
 Rest/break areas
 Utilities
 Eating areas
 Aisles
 Offices

Slide 4 of 96
Characteristics
Characteristics of
of the
the Facility
Facility Layout
Layout Decision
Decision
 Location of these various areas impacts the flow
through the system.
 The layout can affect productivity and costs
generated by the system.
 Layout alternatives are limited by

the amount and type of space required for the
various areas

the amount and type of space available

the operations strategy
 . . . more
Slide 5 of 96
Characteristics
Characteristics of
of the
the Facility
Facility Layout
Layout Decision
Decision
 Layout decisions tend to be:

Infrequent

Expensive to implement

Studied and evaluated extensively

Long-term commitments

Slide 6 of 96
 Objectives of the Lay out Strategy

Develop an economical layout which will meet the

requirements of:
 product design and volume (product strategy)

 Process equipment and capacity (process strategy)

 quality of work life (human resource strategy)

 building and site constraints (location strategy)

Slide 7 of 96
 Requirements of a Good Layout

A good layout requires:

 an understanding of capacity & space requirements

 selection of appropriate material handling equipment

 decisions regarding environment and aesthetics

 identification and understanding of the requirements

for information flow

 identification of the cost of moving between the

various work areas

Slide 8 of 96
 Inputs to the Layout Decision

1. Specification of objectives of the system in terms of

output and flexibility.
2. Estimation of product or service demand on the
system.
3. Processing requirements in terms of number of
operations and amount of flow between departments
and work centers.
4. Space requirements for the elements in the layout.
5. Space availability within the facility itself .

Slide 9 of 96
 Steps in Developing a Process Oriented Layout

 Construct a “from-to matrix”

 Determine space requirements for each department
 Develop an initial schematic diagram
 Determine the cost of this layout
 By trial-and error (or more sophisticated means), try to
improve the initial layout
 Prepare a detailed plan that evaluates factors in
addition to transportation cost

Slide 10 of 96
 Warehouse & Storage Layout
General Cost Curve
120 Line 1
Line 2
The best warehouse layout is where
100 Line 3 total costs are at a minimum

Material handling cost

80 (mostly variable)
Costs include:
Equipment
60 Damage
Position & Find
Investment
40
Material storage cost
20 (mostly fixed)
Costs include:
Land & building
0 Building & insurance

10 20 30 40 50 60 70 80 90 100
Warehouse Density

Slide 11 of 96
Manufacturing Facility Layouts

Slide 12 of 96
 Basic
Basic Layout
Layout Forms
Forms
 Process
 Product
 Cellular
 Fixed position
 Hybrid

Slide 13 of 96
 Process
Process (Job
(Job Shop)
Shop) Layouts
Layouts
 Equipment that perform similar processes are
grouped together
 Used when the operations system must handle a wide
variety of products in relatively small volumes (i.e.,
flexibility is necessary)

Slide 14 of 96
 Characteristics
Characteristics of
of Process
Process Layouts
Layouts
 General-purpose equipment is used
 Changeover is rapid
 Material flow is intermittent
 Material handling equipment is flexible
 Operators are highly skilled
 . . . more

Slide 15 of 96
 Characteristics
Characteristics of
of Process
Process Layouts
Layouts
 Technical supervision is required
 Planning, scheduling and controlling functions are
challenging
 Production time is relatively long
 In-process inventory is relatively high

Slide 16 of 96
 Product
Product (Assembly
(Assembly Line)
Line) Layouts
Layouts
 Operations are arranged in the sequence required to
make the product
 Used when the operations system must handle a
narrow variety of products in relatively high volumes
 Operations and personnel are dedicated to producing
one or a small number of products

Slide 17 of 96
 Characteristics
Characteristics of
of Product
Product Layouts
Layouts
 Special-purpose equipment are used
 Changeover is expensive and lengthy
 Material flow approaches continuous
 Material handling equipment is fixed
 Operators need not be as skilled
 . . . more

Slide 18 of 96
 Characteristics
Characteristics of
of Product
Product Layouts
Layouts
 Little direct supervision is required
 Planning, scheduling and controlling functions are
relatively straight-forward
 Production time for a unit is relatively short
 In-process inventory is relatively low

Slide 19 of 96
 Cellular
Cellular Manufacturing
Manufacturing (CM)
(CM) Layouts
Layouts
 Operations required to produce a particular family
(group) of parts are arranged in the sequence required
to make that family
 Used when the operations system must handle a
moderate variety of products in moderate volumes

Slide 20 of 96
 Characteristics
Characteristics ofof CM
CM
Relative
Relative to
to Process
Process Layouts
Layouts
 Equipment can be less general-purpose
 Material handling costs are reduced
 Training periods for operators are shortened
 In-process inventory is lower
 Parts can be made faster and shipped more quickly

Slide 21 of 96
 Characteristics
Characteristics ofof CM
CM
Relative
Relative to
to aa Product
Product Layout
Layout
 Equipment can be less special-purpose
 Changeovers are simplified
 Production is easier to automate

Slide 22 of 96
 Fixed-Position
Fixed-Position Layouts
Layouts
 Product remains in a fixed position, and the
personnel, material and equipment come to it
 Used when the product is very bulky, large, heavy or
fragile

Slide 23 of 96
 Hybrid
Hybrid Layouts
Layouts
 Actually, most manufacturing facilities use a
combination of layout types.
 An example of a hybrid layout is where departments
are arranged according to the types of processes but
the products flow through on a product layout.

Slide 24 of 96
 New
New Trends
Trends in
in Manufacturing
Manufacturing Layouts
Layouts
 Designed for quality and flexibility
 Ability to quickly shift to different product models or
to different production rates
 Cellular layout within larger process layouts
 Automated material handling
 U-shaped production lines
 . . . more

Slide 25 of 96
 New
New Trends
Trends in
in Manufacturing
Manufacturing Layouts
Layouts
 More open work areas with fewer walls, partitions, or
other obstacles
 Smaller and more compact factory layouts
 Less space provided for storage of inventories
throughout the layout

Slide 26 of 96
 Analyzing
Analyzing Manufacturing
Manufacturing Facility
Facility Layouts
Layouts
 Process Layouts
 Product Layouts
 Cellular Layouts

Slide 27 of 96
 Process Layout
 What factors might we consider when determining
the locations of process areas, or departments?

Slide 28 of 96
 Designing
Designing and
and Analyzing
Analyzing aa Process
Process Layout
Layout
 Group like processes together into departments or
work centers
 Determine where in the building these departments
will be located relative to one another
 The objective is to arrange the departments so that
some criterion such as material-handling cost is
minimized

Slide 29 of 96
 Approaches
Approaches to
to Process
Process Layout
Layout Design
Design
 Operations sequence analysis
 Block diagram analysis
 Load-distance analysis
 Computer analysis

Slide 30 of 96
 Operations
Operations Sequence
Sequence Analysis
Analysis
 Inputs required

an existing or proposed arrangement of
departments

a projection of the traffic or flow that will take
place between one department and each of the
other departments during some time period - this is
usually displayed as an interdepartmental flow
matrix
 . . . more

Slide 31 of 96
 Operations
Operations Sequence
Sequence Analysis
Analysis
 Departments are represented by nodes (circles)
 Using the interdepartmental flow information, flows
between adjacent departments are represented by
solid lines. Dashed lines represent traffic between
nonadjacent departments. The projected volumes are
written above the appropriate lines.
 . . . more

Slide 32 of 96
 Operations
Operations Sequence
Sequence Analysis
Analysis
 Departments (circles) are moved with the objective of
reducing the amount of nonadjacent flow.
 This proceeds until no further improvement can be
found

Slide 33 of 96
 Block
Block Diagram
Diagram Analysis
Analysis
 This approach follows the operations sequence
analysis and is an effort to make the solution more
realistic
 Each department is represented by a square the
relative size of the department
 Shapes of the squares are altered to fit into the
boundaries of the building while retaining the same
areas and relative position found in the operations
sequence analysis

Slide 34 of 96
 Load-Distance
Load-Distance Analysis
Analysis
 A way of quantitatively comparing alternative
process layouts
 Inputs

Alternative block layouts which will provide the
distance between a department and each of the
other departments

For each product, the path it will follow (routing)
and its volume over some time period
 . . . more

Slide 35 of 96
 Load-Distance
Load-Distance Analysis
Analysis
 For each alternative process layout, compute the total
distance a product must travel using its routing
 Compute the total distance traveled per time unit for
each product by multiplying its total travel distance
by its volume per time unit
 Add the total distance traveled per time unit for each
product
 Select the layout with the smallest sum

Slide 36 of 96
 Process Layout: Interdepartmental Flow

 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 interdepartmental transportation, or
flow, costs
Slide 37 of 96
 Process Layout:
Cut-And-Try Approach
 Involves searching for departmental changes to
reduce overall flow cost

 Difficult to determine correct moves

 Non-optimal and based on limited criteria (cost, flow

and distance)

Slide 38 of 96
 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
Slide 39 of 96
Example 1: Systematic Layout Planning
Reasons for Closeness

Code Reason

1 Type of customer

2 Ease of supervision

3 Common personnel

4 Contact necessary

5 Share same price

6 Psychology

Slide 40 of 96
Example 1: Systematic Layout Planning
Importance of Closeness

Line Numerical
Value Closeness
code weights
A Absolutely necessary 16
E Especially important 8
I Important 4
O Ordinary closeness OK 2
U Unimportant 0
X Undesirable 80

Slide 41 of 96
Example 1: Systematic Layout Planning
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 1,6
U X
3. Wine department 300
-- 1
X
4. Camera department 100
1

5. Candy department 100

Letter Closeness rating

Number Reason for rating
Slide 42 of 96
Example 1: Systematic Layout Planning
The Starting Solution

1 E 3

I 4 U U

2 5
A

Slide 43 of 96
Example 1: Systematic Layout Planning
Initial and Final Layouts

5 2 4 2
3 20 ft
3 1 5 1 4

50 ft

Initial Layout Final Layout

Ignoring space and Adjusted by square

building constraints footage and building
size

Slide 44 of 96
 Designing and Analyzing a Product Layout

 Line Balancing

Slide 45 of 96
 Designing
Designing and
and Analyzing
Analyzing aa Product
Product Layout
Layout
 Characteristics
 Inputs
 Design Procedure
 How Good Is The Layout?

Slide 46 of 96
 Product Layout-Advantages/Disadvantages

Advantages: Disadvantages:
 Low cost variable cost per  High volume required

unit because of large initial

 Lower material handling investment
costs  Work stoppage at any point

 reduction in work in-process ties up the whole process

inventories  Lack of flexibility in

 easier training and handling variety of products

supervision or production rates

Slide 47 of 96
 Line
Line Balancing
Balancing Problem
Problem
 Work stations are arranged so that the output of one is
an input to the next, i.e., a series connection

 Layout design involves assigning one or more of the

tasks required to make a product to work stations
 . . . more

Slide 48 of 96
 Line
Line Balancing
Balancing Problem
Problem
 The objective is to assign tasks to minimize the
workers’ idle time, therefore idle time costs, and meet
the required production rate for the line
 In a perfectly balanced line, all workers would
complete their assigned tasks at the same time
(assuming they start their work simultaneously)
 This would result in no idle time
 . . . more

Slide 49 of 96
 Line
Line Balancing
Balancing Problem
Problem
 Unfortunately there are a number of conditions that
prevent the achievement of a perfectly balanced line

The estimated times for tasks

The precedence relationships for the tasks

The combinatorial nature of the problem

Slide 50 of 96
 Inputs
Inputs
 The production rate required from the product layout
or the cycle time.

The cycle time is the reciprocal of the production
rate and visa versa
 All of the tasks required to make the product

It is assumed that these tasks can not be divided
further
 . . . more

Slide 51 of 96
 Inputs
Inputs
 The estimated time to do each task
 The precedence relationships between the tasks

These relationships are determined by the technical
constraints imposed by the product

These relationships are displayed as a network
known as a precedence diagram

Slide 52 of 96
 Design
Design Procedure
Procedure

1. If not provided, find the cycle time for the line.

Remember the cycle time is the reciprocal of the
production rate. Make sure the cycle time is
expressed in the same time units as the estimated task
times.
2. Select the line-balancing heuristic that may be used to
help with the assignments. (Two heuristics are
described at the end of this procedure.)
. . . more

Slide 53 of 96
 Design
Design Procedure
Procedure

3. Open a new work station with the full cycle time

remaining.
4. Determine which tasks are feasible, i.e., can be
assigned to this work station at this time. For a task
to be feasible, two conditions must be met:

All tasks that precede that task must have already
been assigned

The estimated task time must be less than or equal
to the remaining cycle time for that work station.

Slide 54 of 96
 Design
Design Procedure
Procedure

5. If there are no feasible tasks, assignments to that

work station are complete. Go back to step 3 (or stop,
if all tasks have been assigned).
If there is only one feasible task, assign it to the
work station. If there is more than one feasible task,
use the heuristic (step 2) to determine which task to
assign. Reduce the work station’s remaining cycle
time by the selected task’s time and return to step 4.

Slide 55 of 96
 Line-Balancing
Line-Balancing Heuristics
Heuristics
 Heuristic methods, based on simple rules, have been
used to develop very good, not optimal, solutions to
line balancing problems.
 Incremental Utilization Heuristic - adds tasks to a
workstation one at a time in the order of task
precedence until utilization is 100% or is observed to
fall.
 Longest-Task-Time Heuristic - adds tasks to a
workstation one at a time in the order of task
precedence, choosing - when a choice must be made -
the task with the longest time.
Slide 56 of 96
 How
How Good
Good Is
Is the
the Design?
Design?
 Utilization is one way of objectively determining how
near perfectly balanced an assignment scheme is.
 Utilization is the percentage of time that a production
line is working.
 Utilization is calculated as:
Minimum number of workstations
x100
Actual number of workstations
or
Sum of all task times
x 100
(Cycle Time) x (Actual number of work stations)

Slide 57 of 96
 Product Layouts-Major Assumptions

 Volume is adequate for high equipment utilization.

 Product demand is stable enough to justify high
investment in specialized equipment.
 Product is standardized or approaching a phase of
its life cycle that justifies investment in specialized
equipment.
 Supplies of raw material and components are
adequate and of uniform quality to ensure they will
work with the specialized equipment.

Slide 58 of 96
 Why is Balancing the Line Important?

Station 1 Station 2 Station 3

Min/
Unit 6 7 3

What’s Going to Happen?

Slide 59 of 96
 Example 1: The ALB Problem
 You’ve just been assigned the job a setting up an
electric fan assembly line with the following tasks:

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

Slide 60 of 96
 Example 1: The ALB Problem
The Precedence Diagram
 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

Slide 61 of 96
 Example 1: The ALB Problem
We want to assemble 100 fans 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

What do these numbers this represent?

Slide 63 of 96
 Example 1: The ALB Problem
We want to assemble 100 fans per day

Theoretical Min. Number of Workstations, N t

Sum of task times (T)

Nt =
Cycle time (C)

11.35 mins / unit

Nt = = 2.702, or 3
4.2 mins / unit

Why should we always round up?

Slide 64 of 96
 Example 1: The ALB Problem
Selected Task Selection Rules
 Primary: Assign tasks in order the the largest number
of following tasks.

 Secondary (tie-breaking): Assign tasks in order of the

longest operating time

Slide 65 of 96
 Example 1: The ALB Problem
Selected Task Selection Rules

Precedence Diagram

2 1 1
A B G 1.4
H

C D E F
3.25 1.2 .5 1

Slide 66 of 96
 Task Followers Time (Min)
A 6 2
2 1 1
1.4 C 4 3.25
A B G
H D 3 1.2
B 2 1
E 2 0.5
C D E F
F 1 1
3.25 1.2 .5 1
G 1 1
H 0 1.4

Station 1 Station 2 Station 3

Slide 67 of 96
 Task Followers Time (Min)
A 6 2
2 1 1
1.4 C 4 3.25
A B G
H D 3 1.2
B 2 1
E 2 0.5
C D E F
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)

Slide 68 of 96
 Task Followers Time (Min)
A 6 2
2 1 1
1.4 C 4 3.25
A B G
H D 3 1.2
B 2 1
E 2 0.5
C D E F
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)
B (2.2-1=1.2)

Slide 69 of 96
 Task Followers Time (Min)
A 6 2
2 1 1
1.4 C 4 3.25
A B G
H D 3 1.2
B 2 1
E 2 0.5
C D E F
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)
B (2.2-1=1.2)
G (1.2-1= .2)

Idle= .2

Slide 70 of 96
 Task Followers Time (Min)
A 6 2
2 1 1
1.4 C 4 3.25
A B G
H D 3 1.2
B 2 1
E 2 0.5
C D E F
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
B (2.2-1=1.2)
G (1.2-1= .2)

Idle= .2 Idle = .95

Slide 71 of 96
 Task Followers Time (Min)
A 6 2
2 1 1
1.4 C 4 3.25
A B G
H D 3 1.2
B 2 1
E 2 0.5
C D E F
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)
G (1.2-1= .2)

Idle= .2 Idle = .95

Slide 72 of 96
 Task Followers Time (Min)
A 6 2
2 1 1
1.4 C 4 3.25
A B G
H D 3 1.2
B 2 1
E 2 0.5
C D E F
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)

Idle= .2 Idle = .95

Slide 73 of 96
 Task Followers Time (Min)
A 6 2
2 1 1
1.4 C 4 3.25
A B G
H D 3 1.2
B 2 1
E 2 0.5
C D E F
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

Idle= .2 Idle = .95

Slide 74 of 96
 Task Followers Time (Min)
A 6 2
2 1 1
1.4 C 4 3.25
A B G
H D 3 1.2
B 2 1
E 2 0.5
C D E F
F 1 1
3.25 1.2 .5 1
G 1 1
H 0 1.4

Station 1 Station 2 Station 3

C (4.2-3.25)=.95 D (4.2-1.2)=3
A (4.2-2=2.2)
E (3-.5)=2.5
B (2.2-1=1.2)
F (2.5-1)=1.5
G (1.2-1= .2)
H (1.5-1.4)=.1

Idle=.2 Idle=.95 Idle=.1

Slide 75 of 96
 Example 1: The ALB Problem

• Which station is the bottleneck?

• What is the effective cycle time?

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)

Slide 76 of 96
 Designing and Analyzing a Cellular Layout

 Fundamental questions:

Which parts are going to be produced in a cell?

Which processes are going to be assigned to a cell?

Slide 77 of 96
 Group Technology
Benefits
1. Better human relations

2. Improved operator expertise

3. Less in-process inventory and material handling

4. Faster production setup

Slide 78 of 96
 Fundamental
Fundamental Requirements
Requirements
for
for Parts
Parts to
to be
be Made
Made in
in Cells
Cells
 Demand for the parts must be high enough and stable
enough that moderate batch sizes of the parts can be
produced periodically.
 Parts must be capable of being grouped into parts
families.

Slide 79 of 96
 Design
Design Procedure
Procedure

1. Form the Parts-Machines Matrix.

2. Rearrange the Rows.

Place the machines that produce the same parts in
adjacent rows.
3. Rearrange the Columns.

Place the parts requiring the same machines in
adjacent columns.
4. Using the rearranged parts-machines matrix to
identify cells, the machines for that cell and the parts
that will be produced in that cell.

Slide 80 of 96
 Wrap-Up:
Wrap-Up: World-Class
World-Class Practice
Practice
 Strive for flexibility in layouts

Multi-job training of workers

Sophisticated preventive-maintenance programs

Flexible machines

Empowered workers trained in problem solving

Layouts small and compact

Slide 81 of 96