FACILITY LAYOUT

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Facility Layout

 Location or arrangement of everything within &

around buildings
 Objectives are to maximize
 Customer satisfaction
 Utilization of space, equipment, & people
 Efficient flow of information, material, & people
 Employee morale & safety

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Strategic Importance of Layout
Decisions

 The objective of layout strategy is to

develop a cost-effective layout that will
meet a firm’s competitive needs
Layout Design Considerations
 Higher utilization of space, equipment, and people
 Improved flow of information, materials, or
people
 Improved employee morale and safer working
conditions
 Improved customer/client interaction
 Flexibility
Fixed-Position Layout
 A system that addresses the layout requirements
of stationary projects
 Product remains in one place
 Workers and equipment come to site
 Examples:
Building house,
Service in a operating room
 Shipbuilding
Fixed-Position Layout

 Complicating factors
 Limited space at site
 Different materials required at different
stages of the project
 Volume of materials
needed is dynamic

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REVIEW:

It is the location or arrangement of

everything within & around buildings.

Answer:
Facility Layout

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Office Layout

 Grouping of workers, their equipment, and spaces to

provide comfort, safety, and movement of information
 Movement of
information is main
distinction
 Typically in state of
flux due to frequent
technological
changes
 Relationship chart

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Office Relationship Chart

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Office Layout examples

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Process-Oriented Layout
 Deals with low-volume, high variety production
in which like machines and equipment work
together
 Department areas having similar processes
located in close proximity
 Job lots- group or batches of parts processed
together.

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Emergency Room Layout
ER TRIAGE EMERGENGENCY ROOM
SURGERY ROOM ADMISSION PATIENT A - BROKEN
LEG
PATIENT B – ERRACTIC
HEART MAKER

LABORATORY

BILLING/
ER BEDS PHARMACY EXIT

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Process-Oriented Layout
 Advantages
 Flexibility.
 Allows wide variety of
products.
 Low fixed costs for general
purpose equipment.
 Breakdown of one
machine or worker does
not stop processing.
 Disadvantages
 Scheduling is difficult.
 High variable cost.
 High work-in-process
inventory and waiting.
 High labor skills
required.
REVIEW:

It displays the “closeness value”

between each pair of people
and/or departments that need to
be placed in the office layout.
Answer:
Relationship chart

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Retail Layout

 An approach that addresses flow,

allocates space and responds to
customer behavior
 Objective is to maximize profitability per
square foot of floor space
 Sales and profitability vary directly with
customer exposure
Five Helpful Ideas for Supermarket
Layout
1. Locate high-draw items around the periphery of the
store
2. Use prominent locations for high-impulse and high-
margin items
3. Distribute power items to both sides of an aisle and
disperse them to increase viewing of other items
4. Use end-aisle locations
5. Convey mission of store through careful positioning of
lead-off department
Store Layout
Retail Slotting fees

 Fees manufacturers to get shelf space (slot) for

their product
 Contributing factors
 Limited shelf space
 An increasing number of new products
 Better information about sales through POS data
collection
 Closer control of inventory
Retail Store Shelf Space Planogram

5 facings
 Computerized tool for
shelf-space

Shampoo

Shampoo

Shampoo

Shampoo

Shampoo
management
 Generated from
store’s scanner data
on sales

Conditioner
Shampoo

Shampoo

Shampoo

Shampoo
 Often supplied by Conditioner

Conditioner
manufacturer

2 ft.
Servicescapes
 Ambient conditions - background characteristics such
as lighting, sound, smell, and temperature
 Spatial layout and functionality - which involve
customer
circulation path planning,
aisle characteristics, and
product grouping
 Signs, symbols, and
artifacts - characteristics
of building design that
carry social significance
REVIEW:

The objective of this layout is to

maximize profitability per square foot
of floor space

Answer:
Retail Layout

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Warehouse Layout
 A design that attempts to minimize total cost by
addressing trade-offs between space and material
handling
 Objective: find the optimum trade-off between
handling cost and costs associated with warehouse
space.
 Automated Storage and
Retrieval Systems (ASRSs)
 Docks
Warehouse Layout
► Material Handling Costs
► All costs associated with the transaction
► Incoming transport
► Storage
► Finding and moving material
► Outgoing transport
► Equipment, people, material, supervision,
insurance, depreciation
► Minimize damage and spoilage
Cross-Docking

 Materials are moved directly

from receiving to shipping and
are not placed in storage
in the warehouse
 Requires both:
 tight scheduling
 accurate inbound product
identification
Random Stocking
 Used in warehousing to locate stock wherever there is
an open location
 Typically requires automatic identification systems
(AISs) and effective information systems
 Random assignment of stocking locations allows more
efficient use of space
 Key tasks
1. Maintain list of open locations
2. Maintain accurate records
3. Sequence items to minimize travel, pick time
4. Combine picking orders
5. Assign classes of items to particular areas
Customizing

 Value-added activities performed at the

warehouse
 Enable low cost and rapid response strategies
 Assembly of components
 Loading software
 Repairs
 Customized labeling and packaging
Warehouse Layout
Traditional Layout

Storage racks
Customization

Conveyor

Staging
Office

Shipping and receiving docks

Warehouse Layout
Cross-Docking Layout

Shipping and receiving docks

Office
Shipping and receiving docks
REVIEW:

It requires both tight scheduling

and accurate inbound product
identification

Answer:
Cross-docking

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Product-Oriented Layout

Organized around products or families

of similar high-volume, low-variety
products
Product-Oriented Layout Assumptions

Assumptions:
1. Volume is adequate for high equipment utilization
2. Product demand is stable enough to justify high
investment in specialized equipment
3. Product is standardized or approaching a phase of life
cycle that justifies investment
4. Supplies of raw materials and components are adequate
and of uniform quality
 Product-Oriented
Layout Layouts
Design Considerations
 Fabrication line
 Builds components on a series of machines
 Machine-paced
 Require mechanical or engineering changes to balance
 Assembly line
 Puts fabricated parts together at a series of workstations
 Paced by work tasks
 Balanced by moving tasks

 Both types of lines must be balanced so that the time to

perform the work at each station is the same
Product-Oriented Layouts
 Advantages  Disadvantages
 Low variable cost per unit  High volume is
 Low material handling required
costs
 Work stoppage at any
 Reduced work-in-process
point ties up the
inventories
whole operation
 Easier training and
supervision  Lack of flexibility in
 Rapid throughput product or production
rates
Assembly-Line Balancing
 Objective is to minimize the imbalance between
machines or personnel while meeting required
output
 Starts with the precedence relationships
1. Determine cycle time
2. Calculate theoretical
minimum number of
workstations
3. Balance the line by
assigning specific
tasks to workstations
McDonald’s Assembly Line

Figure 9.12
REVIEW:
Organized around products or
families of similar high-volume,
low-variety products

Answer:
Product-Oriented
Layout

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REVIEW:

Enumerate the different

facility layouts
Answer:
Fixed-Position Layout Office Layout
Process-Oriented Layout Retail Layout
Warehouse Layout Product-Oriented Layout

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FACILITY LAYOUT
END

Estacio, Yvonne Kristine M.

Hernandez, Vhea Marie C.
Tiamsim, Aprylle Maricarl D.
Torres, Ericka Mae Q.
Vesliño, Hazel Joy D.
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