What is Facility Layout

Operations Management
Layout Strategy Chapter 9

Location or arrangement of everything within & around buildings

Six Layout Strategies

Fixed-position layout

Six Layout Strategies - continued

Retail/service layout

large bulky projects such as ships and buildings deals with low-volume, high-variety production (job shop, intermittent production) positions workers, their equipment, and spaces/offices to provide for movement of information

Process-oriented layout

allocates shelf space and responds to customer behavior addresses trade-offs between space and material handling seeks the best personnel and machine use in repetitive or continuous production

Warehouse layout

Office layout

Product-oriented layout

Factors Complicating a Fixed Position Layout

There is limited space at virtually all sites At different stages in the construction process, different materials are needed therefore, different items become critical as the project develops The volume of materials needed is dynamic

Process-Oriented Layout
Design places departments with large flows of material or people together Department areas having similar processes located in close proximity

e.g., All x-ray machines in same area

Steps in Developing a Process-Oriented Layout

1 Construct a from-to matrix
1 1 2 3 4 5 6 2 3 4 5 6

Steps in Developing a Process-Oriented Layout

2. Determine space requirements for each department
Assembly Department (1) Receiving Department (4) Printing Department (2) Shipping Department (5) Machine Shop Department (3) Testing Department (6) 40

50

100 30

0 50 20

0 10 0 50

20 0 100 0 0

60

3. Develop an initial schematic diagram

100
1

Cost of Process-Oriented Layout n n Minimize cost = X ij C ij

i =1 j=1
3

50

where n = total number of work centers or departments i, j = individual departments X ij = number of loads moved from department i to department j C ij = cost to move a load between department i and department j

30
20

50
4

10 50
5

20

100

4. Determine the cost of the layout

Cost of moving 1 unit between adjacent departments is 1 dollar Cost of moving 1 unit between nonadjacent departments is 2 dollar 100 (200)
1 2 3

Possible Layout 2
Room 1 Painting Department (2) Receiving Department (4) Room 4 Room 2 Assembly Department (1) Shipping Department (5) Room 5 60 Room 2 Machine Shop Department (3) Testing Department (6) Room 6 40

50 (50)

30 (30)
20 (40)

50
4

(50)

10 50
5

20

100 (100)
(40)
6

(10)

(50)

Interdepartmental Flow Graph Showing Number of Weekly Loads

30
1

Cellular Layout - Work Cells

Special case of product-oriented layout - in what is ordinarily a process-oriented facility Consists of different machines brought together to make a product Temporary arrangement only Example: Assembly line set up to produce 3000 identical parts in a job shop

50

100

50
10
4

20

20

100

50

Work Cell Floor Plan

Saws Drills Office

Improving Layouts by Moving to the Work Cell Concept

Tool Room

Work Cell

Office Layout
Design positions people, equipment, & offices for maximum information flow Arranged by process or product

Office Layout Floor Plan

Example: Payroll dept. is by process Insurance company Software company

Finance Manager

Accounting
Fin. Acct.

Examples

Brand X

1995 Corel Corp.

Relationship Chart
1 President 2 Costing A 3 Engineering O 4 Presidents Secretary I

Office Relationship Shart

1 President 2 Chief Technology Officer 3 Engineers Area 4 Secretary 5 Office entrance 7 Equipment cabinet 8 Photocopy equipment 9 Storage room 9 Storage room O A O A U I I
Val. Closeness

1
O

2
U

3
A

Ordinary closeness: President (1) & Costing (2)

A I

Absolutely necessary: President (1) & Secretary (4)

A=absolute necessary; E-especially important; I = Important; O=ordinary important; U = Unimportant; X=Not desirable

I U I O O A E U O X E E U U A O O U I O X U A E E

Absolutely necessary Especially important Important Ordinary OK Unimportant Not desirable

E I O U X

Retail/Service Layout
Design maximizes product exposure to customers Decision variables

Store Layout

Store flow pattern Allocation of (shelf) space to products Video

Retail Layouts Some Rules of Thumb

Locate high-draw items around the periphery of the store Use prominent locations such as the first or last aisle for high-impulse and high margin items Distribute what are known in the trade as power items (items that may dominate a shopping trip) to both sides of an aisle, and disperse them to increase the viewing of other items Use end aisle locations because they have a very high exposure rate

Warehouse Layout
Design balances space (cube) utilization & handling cost Similar to process layout Items moved between dock & various storage areas

Warehouse Layout Floor Plan

Conveyor
Truck

Cross Docking
Transferring goods
from incoming trucks at receiving docks to outgoing trucks at shipping docks
InIncoming

Outgoing

Zones

Order Picker

Avoids placing goods into storage Requires suppliers provide effective addressing (bar codes) and packaging that provides for rapid transhipment

1984-1994 T/Maker Co. 1995 Corel Corp.

Random Stocking Systems

Maintain a list of open locations Maintain accurate records of existing inventory and its locations Sequence items on orders to minimize travel time required to pick orders Combine orders to reduce picking time Assign certain items or classes of items, such as high usage items, to particular warehouse areas so that distance traveled is minimized

Product-Oriented Layout
Facility organized around product Design minimizes line imbalance

Delay between work stations

Types: Fabrication line; assembly line

An Assembly Line Layout

Work

Repetitive Layout
1
Station

Work Station

Work Station

5
Belt Conveyor

Office Note: 5 tasks or operations; 3 work stations

Assembly Line Balancing

Analysis of production lines Nearly equally divides work between workstations while meeting required output Objectives

Assembly Line Balancing Steps

1. 2. 3. 4. 5. 6. 7. 8. Determine tasks (operations) Determine sequence Draw precedence diagram Estimate task times Calculate cycle time Calculate number of work stations Assign tasks Calculate efficiency

Maximize efficiency Minimize number of work stations

Example 2. precedence data

Task A B C D E F G H I performance time task must follow task listed below 10 _ 11 A 5 B 4 B 12 A 3 C,D 7 F 11 E 3 G, H

Task A B C D E F G H I

performance time

task must follow task listed below 10 _ 11 A 5 B 4 B 12 A 3 C,D 7 F 11 E 3 G, H

C B D A E H F G I

Precedence Diagram Example

10 Min. 11

Assembly Line Balancing Equations

Cycle time = Production time available Demand per day Task times = Cycle time Task times (Actual number * (Cycle time) of work stations)

C
4

5 3

F
11

Minimum number of work stations

D
12
Efficiency =

Precedence Diagram Example

10 Min. 11

C
4

5 3

10 Min.

Precedence Diagram Example C 5

11

F
11

F
11

D
12

D
12

Cycle time=480/40=12 minutes/unit

Total task time=10+11+5+4+3+7+3+12+11=66 Minimum number of work station=66/12=5.5 or 6

Six Station Solution

5

Efficiency =( task times)/(actual number of work stations*assigned cycle time) =66/(6 stations*12 minutes)=91.7%

10
A

11
B

3
F

7
G

4
D

3
I

12
E

11
H