Chapter 10 Facility Layout

Operations Management
by
R. Dan Reid & Nada R. Sanders
3
rd
Edition Wiley 2007
Learning Objectives
Define layout planning and its importance
Identify and describe different types of
layouts
Compare process layouts & product layouts
Describe the steps involved in designing
both process and product layouts
Explain the advantages of hybrid layouts
Define the meaning of group technology &
its importance to cellular layouts

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 systemslow volume of many different
products
Continuous processing systemshigh volume of a few
standardized products

Facility Layout
Fixed Position
Product is too large to move;
e.g.: a building
Process
Group similar resources together
Product
Designed to produce a specific product efficiently
Hybrid: combines aspects of both process and
product layouts
Cellular
Modular
Fixed Position Layout
The position of a product or customer is
fixed; and materials, equipment, workers,
and other resources are transported to and
from the product or customer.
Usually used because product movement is
difficult (ship building) or for convenience
(on-site repair).
This is often managed through Project
Management (Chapter 16).
Process Layout
Similar processes/functions are grouped
together (job shop). Volume of
parts/services does not warrant product or
cellular layout.
Primary advantages--flexibility, utilization
of machinery/equipment.
Disadvantages--greater handling of
materials/customers, more complex
scheduling, WIP/waiting lines,
departmental boundaries
Traditional Process Layout
Process Layouts
General purpose & flexible resources
Lower capital intensity & automation
Higher labor intensity
Resources have greater flexibility
Processing rates are slower
Material handling costs are higher
Scheduling resources & work flow is more
complex
Space requirements are higher

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

Comparing Alternatives
Load-distance measures
Load: # of trips, weight moved, $-value moved
Distance: rectilinear distance (using north-south &
east-west movements)
REL charts:
Management opinion on strength of relationships
Software tools:
CRAFT: computerized relative allocation of facilities
technique
ALDEP: automated layout design program
Process Layout Example
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
Radiology

400 sq. ft.
B
Laboratory

300 sq. ft.
C
Lobby &
Waiting
300 sq. ft.
D
Examining
Rooms
800 sq. ft.
E
Surgery &
Recovery
900 sq. ft.
F
Physical
Therapy
1050 sq. ft.
Step 1: Gather Information (continued)
Step 2: Develop a Block Layout
Use trial and error with from-to and REL
Charts as a guide
Use computer software like ALDEP or
CRAFT
Warehouse Layouts
Warehouse Layout Considerations:
Primary decision is where to locate each department
relative to the dock
Departments can be organized to minimize ld totals
Departments of unequal size require modification of
the typical ld calculations to include a calculation of
the ratio of trips to area needed
The usage of Crossdocking (see Ch.4) modifies
the traditional warehouse layouts; more docks, less
storage space, and less order picking

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
Product Layout
Processes/work stations arranged in
sequence of activities required to produce
the product/service (Assembly Line).
Use for high volume, standardized products and
services
WIP and handling of materials/customers is
minimized
Equipment is specialized, capital intensive
Output is dependent on the slowest work
station
The line must be balanced for effectiveness.
Product Layouts
Specialized equipment
High capital intensity & wide use of
automation
Processing rates are faster
Material handling costs are lower
Less space required for inventories
Less volume or design flexibility

Product Layout
Product
A
Product
B
Product
C
Step 1
Step 1
Step 1
Step 2
Step 2
Step 2
Step 3
Step 3
Step 3
Step 4
Step 4
Step 4
7-14
Designing Product Layouts
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
Assembly Line Balancing
1. Precedence diagram: circles=tasks, arrows show
the required sequence.
2. Determine cycle time:


3. Determine required workstations (theoretical
minimum)

4. Set rules for assigning tasks (number of following
tasks, longest task time)
unit put)/time_ demand(out
/time_unit production
D
P
C
cycle_time
task_times
C
T
N


t
Assembly Line Balancing
5. Assign tasks to first workstation, using
rules and staying within cycle time.
Repeat for following workstations until all
tasks are assigned.
6. Evaluate line efficiency:


7. Rebalance if efficiency is not satisfactory.
kstations actual_wor N ;
C N
T
E
a
a
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
Vicki needs to produce 60 pizzas per hour
Step 3: Determine cycle time
The amount of time each workstation is allowed to
complete its tasks


Limited by the bottleneck task (the longest task in a
process):




sec./unit 60
units/hr 60
sec/min 60 x min/hr 60
units/hr output desired
sec./day time available
) (sec./unit time Cycle
hour per pizzas or units/hr, 72
sec./unit 50
sec./hr. 3600
time task bottleneck
time available
output Maximum
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)



Always round up (no partial workstations)
Serves as a lower bound for our analysis


stations 3 or 2.75,
n sec/statio 60
seconds 165
time cycle
times task
TM

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
B B 5 5
C C 25 35
D D 15 20
E, F, G G 15 5
E, F E 12 48
F F 10 38
H H 18 20
I I 15 5
1
2
3
Last Layout Calculation
Step 6: Compute efficiency and balance delay
Efficiency (%) is the ratio of total productive
time divided by total time



Balance delay (%) is the amount by which the
line falls short of 100%
91.7% 100
sec. 60 x stations 3
sec. 165
NC
t
(%) Efficiency

8.3% 91.7% 100% delay Balance

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
Comparison of Product vs. Product Layouts
Process Layouts Product Layouts
Products: large #, different small # efficiently

Resources: general purpose specialized

Facilities: more labor intensive more capital intensive

Flexibility: greater relative to market lower relative to market

Processing slower faster
Rates:

Handling costs: high low

Space requirements: higher lower
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
Cellular Layout
Cross between product/process layout
group a number of machines into a cell to
produce a family of parts requiring similar
processing (group technology).
Often arranged into U- or C-shaped line flows
Modular Layout
achieves layout flexibility so that layouts can
be changed, expanded, or reduced without
much difficulty.
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
Chapter 10 Highlights
Layout planning is deciding on the best physical
arrangement of resources.
There are four basic types of layouts: process,
product, hybrid, and fixed position.
Process layouts provide flexibility to make a
variety of different products. Product layouts
provide greater efficiency for one product.
The steps for designing process layouts are:
gather space and closeness information, develop
a block plan, and develop a detailed layout.
Chapter 10 Highlights (continued)
The steps for designing an product layout are:
identify tasks and predecessors, determine
output rate, determine cycle time, computing the
theoretical minimum number of work stations,
assigning tasks to workstations, and computing
efficiency and balance delay.
Hybrids layouts combine elements from both
types of layouts to increase efficiency.
Hybrid layouts combine GT analysis with cellular
layout concepts .
Chapter 10 Homework Hints
10.8: Assign sites based on number of
trips (refer to Example 10.2). There is no
strategy regarding which side of the aisle
to assignjust nearness to the dock.
10.16: Follow the steps. This is a product
layout (assembly line balancing). The
book has an example on pages 360-366,
which is also on the slides covered in class.
Sample Problem10.7



dock
aisle
Department Category Trips to/from
dock
1 Sports t-shirts 50
2 Mens t-shirts 63
3 Womens t-shirts 35
4 Childrens t-shirts 55
5 Fashion t-shirts 48
6 Undershirts 60
Sample Problem 10.15






Draw precedence diagram
Determine cycle timedemand = 50 units/hr
Theoretical minimum no. of work stations
Assign tasks to workstations using cycle time
Efficiency and balance delay of line?
Bottleneck?
Maximum output?

Task Imm. predecessor Task time (sec)
A None 55
B A 30
C A 22
D B 35
E B, C 50
F C 15
G F 5
H G 10
TOTAL 222