The 11th Asia Pacific Industrial Engineering and Management Systems Conference The 14th Asia Pacific Regional

Meeting of International Foundation for Production Research

Melaka, 7 10 December 2010

Practical Facility Layout Technology for Industrial Engineers and Educators in Asia
Robin Owens Managing Director, Proplanner Asia, Inc. Santa Rosa, Laguna, Philippines Email: robin@proplanner.com

Abstract - When companies have costly factory, warehouse, and office layout projects, how does the industrial engineer (IE) ensure that the new layout is better than the current layout? Millions of dollars are spent on facility layouts every year in Asia, yet the IEs lack the tools required to measure and compare layout alternatives. From Lean Manufacturing we clearly understand that one must first measure a process before making a change. This is to ensure that the change is actually an improvement. IEs need tools to ensure that facility layout changes are actually improvements. Richard Muther pioneered facility layout design when he created his Systematic Layout Planning (SLP) and Systematic Handling Analysis (SHA) methods. Though SLP and SHA remain relevant to industry today, Muther created these manual methods 40-50 years ago. When it comes to computerized layout planning, many universities teach algorithms like CRAFT, which have little application in industry. The majority of companies all over the world use AutoCAD for facility layouts. Dr. Dave Sly (PhD IE) considered this fact and took a more practical approach when he automated SLP and SHA inside of AutoCAD. Dr. Sly went further and developed advanced material flow and operator workstation analysis technology. By creating analysis tools, inside of the software used by most companies, Dr. Sly created tools that address the problems faced by practicing IEs. Through the use of practical facility layout technology, IEs and educators in Asia can provide significantly more contribution to industry and, at the same time, enhance the reputation of our profession. Keywords: Facilities Design and Location (FD), Industrial Engineering Education (IE), CAD/CAM/CIM (CA), Systems Simulation (SU), Production Systems Design, Planning and Control (PS).

1. INTRODUCTION
Practicing IEs in Asia performing facility layout work face a fundamental problem: a perceived lack of available technology to assist them in their job. Most layout IEs use AutoCAD to create and modify facility layout designs. But, AutoCAD is only a drafting tool. There are no IE analysis tools inside of the AutoCAD product itself. Because of this perceived lack of technology, companies spend millions of dollars every year on re-layout

projects without the use of IE software. For example, one semiconductor firm in the Philippines spent $12M over a 5 year period on factory layouts, all without using a method of evaluating or comparing different layout alternatives. Layout IEs often become more of a draftsman than an engineer. Young IEs are expected to be aware of the latest technology. Facility layout textbooks dont do enough to communicate the existing IE layout software tools on the market. Furthermore, the facility layout technologies

The 11th Asia Pacific Industrial Engineering and Management Systems Conference The 14th Asia Pacific Regional Meeting of International Foundation for Production Research
Melaka, 7 10 December 2010
taught in many universities are impractical algorithms that have very little application in industry. The fact is that useful facility layout technology does exist. These tools perform Muthers SLP and SHA methods, and add analysis tools that IEs need, within AutoCAD. Communication about these tools in Asia has not been effective or sufficient. There are two companies that provide IEs with practical facility layout tools; Siemens and Proplanner. Dr. Dave Sly created the technology for both companies. This paper will discuss facility layout education and practice in more depth. Then we cover the background behind practical layout technology and cover its main capabilities. The end goal is to have the reader understand the value of, and the need for, practical IE facility layout technology. pages of content). This type of simulation is a useful tool at times for facility layout studies, but the models often take a long time to create (re-building the facility layout) and become very complex (do they actually represent the system accurately).

2.2

Richard Muthers SLP & SHA Methods

2. FACILITY LAYOUT EDUCATION

There is a significant disconnect between facility layout education and actual practice.

2.1

Textbook

Perhaps the most popular facility layout textbook is Facilities Planning (Tompkins, White, Bozer, and Tanchoco). In the 4th edition, released this year, 6% of the book (52 out of 854 pages) is dedicated to impractical algorithmic approaches. These computer algorithms include CRAFT, BLOCPLAN, LOGIC, SABLE, and MULTIPLE. Commercial versions for these algorithms do not exist, or must be obtained by the original author (Tompkins, White, Bozer, Tanchoco, et al 2010). While these computer algorithms focus on appropriate layout aspects like relationships and material flow, they are not in industry use because of their limitations (unrealistic assumptions, department shapes, consideration of building aspects like utilities and columns, qualitative factors, etc.) and, more importantly, their lack of addressing the problems faced by layout IEs. One must ask the question, Why is so much content and time spent on technology not in use by practicing IEs? In the latest edition of Facilities Planning, only 0.1% of the book (1 page out of 854 pages) is dedicated to commercial facility layout packages. However, in Chapter 12 (Preparing, Presenting, Implementing and Maintaining the Facilities Plan), the authors spend half a paragraph on the benefits of material flow overlays in the AutoCAD layout. But, they fail to state that this is one of the features of the commercial facility layout packages. Again, the IE student is left without the knowledge to practice facility layout work in industry. Some mention of dynamic simulation is provided (4

Most facility layout educators in Asia teach Richard Muthers Systematic Layout Planning (SLP) and/or Systematic Handling Analysis (SHA) methods. Nearly every IE recognizes the name Richard Muther. SLP is by far the most famous facility layout technique. Relationship charts and relationship diagrams are applicable in any environment in any industry. Color coding the flow & non-flow relationships based on importance level, and scoring layouts based on relationship weight and length provide very useful layout information to the IE. Perhaps that is why SLP has stood the test of time. But, in truth, practicing IEs dont use SLP very much. Muther first created SLP in 1961. Computers were not common at the time. So, his method is manual (paper, colored pencil, and ruler). One major reason why SLP isnt used very much is that it is too time consuming. SHA is also very applicable in industry today. Representing higher frequency material flow with thicker lines, and color coding these lines based on intensity of flow are useful methods to help the IE minimize material handling distances. Material flow is often the predominant issue for facility layout projects in industry. SHA addresses this issue. But, SHA was first published in 1969. Again, it is manual method that is not used much in industry today. It is intuitive that SLP & SHA should advance from manual to automated, in order to make these sound and valuable methods more useful to industry.

2.3

University Facility Layout Technology

Professors in Asian universities know the importance of teaching engineering technology to students that will help them in the future. If the latest facility layout textbooks emphasize impractical computer algorithms instead of commercial facility layout packages, then how is the Professor supposed to know better? As a result, IE students are taught CRAFT and similar algorithms. Students are taught tools that they will not see, or use, again. Though all of the computer algorithms for facility layout have the best intentions, they stop short of meeting the IEs needs, and therefore, are not used in industry.

The 11th Asia Pacific Industrial Engineering and Management Systems Conference The 14th Asia Pacific Regional Meeting of International Foundation for Production Research
Melaka, 7 10 December 2010

3. FACILITY LAYOUT IN INDUSTRY 3.1 The Impracticality of Computer Algorithms

Most companies do not struggle with placing the departments in an optimal orientation, which is the problem solved by the computer algorithms. Instead, most companies struggle with visualizing & measuring the relationships, and then evaluating & discussing the tradeoffs of layout alternatives (which contain different levels of constraint optimization). The computer algorithms address a minor problem, not the major problems for practicing IEs. Layout IEs spend a significant amount of time tweaking designs (changing space shapes) trying to make equipment fit given the physical constraints (aisles, columns, utility locations, etc.). Layout IEs also face qualitative constraints from various stake holders that become a major influence on the layout design process (e.g. placing the newest machines near the aisles for customer tours, management politics, etc.). Flexible, interactive tools that can consider the many and varied constraints are more valuable than a limited, rigid program. Human interaction in the layout design process is required for a number of reasons. In a business operation, most relationships (flow and non-flow) are not 100% accurate. Engineers have different levels of confidence in their values. These factors cause the relationships to be subject to qualitative, human interpretation and adjustment (during the layout design process) when there may be major tradeoffs in order to satisfy a particular layout constraint. Algorithms use fixed input requirements and then achieve an optimal, or near-optimal, solution. During a layout project (e.g. kaizen, new product launch, expansion, etc.) the input requirements are not fixed. Relationships between areas change over time. Space requirements and the shape of the spaces (often highly irregular) are also not fixed. In other words, you might be able to satisfy a particular relationship/flow constraint if only the space used by a department was 10% less (the algorithms do not take this into account). IEs work on teams. A good layout needs to be sold to the team responsible for that layout. Visual feedback is required (as accurate as possible) in order to quickly and effectively communicate layout alternatives to the team. Algorithms lack this visual feedback capability (diagramming relationships, flow lines, etc.). This visual feedback, including metrics, provides a basis for meaningful discussion about the layout. This issue is related to the Lean Manufacturing movement. Lean Manufacturing techniques are not highly analytical, but instead they are presentation oriented (for discussion and

decision making). The computer algorithms may provide some value by generating the initial layout, or recommending alternative layouts. However, the bulk of time spent and value obtained in facility layout comes from the graphical presentation & measurement of the layout (including various relationship constraints), with the ensuing group discussion & layout solution development. Practicing IEs need tools to generate diagrams and metrics that aid the team in evolving to an optimal design. IEs also need tools that allow the modification of the input requirements (relationships, space, shape, orientation, flow, etc.) along the way, since they are not fixed during the duration of the project. The concept is that computer algorithms like CRAFT may be useable for quantitative evaluation or validation in ideal circumstances, but humans still need to process this information to make a decision (the computer is not doing it for them).

3.2

Realities of the Facility Layout IE in Asia

In Asia, it is common for new industrial engineers to perform facility layout as their main job function. This is even the case for on the job training (OJT) university students as well. Their tools are their knowledge (university training, familiarity with the operation) and their computer (AutoCAD, MS Excel/Word). Most layout drawings are in AutoCAD, but some people use Microsoft Excel, Microsoft Paint, and other non-CAD tools in an effort to save costs. But, over the long term the IEs costs become greater due to drawing inaccuracies, longer drawing times, sharing issues, lack of layering capability, etc. IEs in this situation are a particular disadvantage. One might notice the lack of layout engineering tools for the IE. The company likely has millions of dollars invested in the physical facility, but the resources required to effectively manage and improve the arrangement of those assets are frequently neglected. The fortunate IE has AutoCAD. But, AutoCAD is just a drafting tool. There is no facility layout analysis technology provided to the IE. The result of this situation is that the IE becomes more of a draftsman than an engineer. You can frequently hear the IE manager say to his IE, Rodel, tomorrow I need a layout with these racks moved over here. The IE simply goes back to his desk and draws what the manager requested. He submits the new drawing next day. The IE might, or might not, sit in the meeting where the new layout is presented, so that he gets a better idea of any drawing changes he needs to make. To be clear, this is not industrial engineering. This is not what we envision in the university when were learning about algorithms, from-to charts, relationship diagrams, etc.

The 11th Asia Pacific Industrial Engineering and Management Systems Conference The 14th Asia Pacific Regional Meeting of International Foundation for Production Research
Melaka, 7 10 December 2010
But what choice does the IE have when he/she isnt provided any useable technology to perform analysis and evaluation? If the IE did have engineering tools, then you might hear him say, Sir, I moved the racks to the new location you dictated. I quickly did some studies and the new layout actually caused an increase in material flow distance and cost. I moved the racks to a different location, and reduced these layout metrics by 12%, saving $1000 per month. Here are both layouts for you to choose. Ive included some graphics and metrics for each alternative layout, in order to support your management presentation. That would be industrial engineering. Lean Manufacturing teaches us that before we change a process we must measure it (to ensure that the change is an improvement). Practicing IEs that make layout changes, without measurements, unwillingly violate this mandate. that he developed in the past. Dr. Sly added other tools including time & motion study, mixed-model line balancing, work instructions, and process planning. But, facility layout remains a core competency.

4.1 Automated SLP

By using automated SLP inside of AutoCAD, IEs can perform relationship studies better and faster than by using manual methods. Relationship charts are automatically created, and can be printed and shared with members of the layout team. Relationship diagrams are automatically generated, and relationship lines can be viewed by relationship type or closeness reason (see Figure 1).

4. PRACTICAL TECHNOLOGY

FACILITY

LAYOUT

For over 25 years, Dr. Dave Sly has been creating facility layout technology for use in industry. Over 800 companies and universities worldwide use Dr. Slys technology. In the late 1980s when Dave Sly was a n IE masters candidate at Iowa State University, he had the idea to automate Muthers SLP method inside of AutoCAD. Later, Sly created technology to automate SHA and improve upon it. This provided the ability to combine from-to and material handling cost data, with the drawn to scale AutoCAD layout, so that IEs could measure the actual material handling distances, times and costs (for each layout alternative). Dr. Sly added useful analysis capabilities to enable sophisticated material studies to help minimize and eliminate material flow. His additional technology provided tools to analyze and reduce the distance traveled by operators working on stationary, or moving parts. From the high level relationship analysis to detailed workstation design, all of these IE functions could then be performed using the actual facility layout drawing. Dr. Sly created a company called Cimtechnologies in the Iowa State University research park in order to market his IE technology. In the early 2000s, through various acquisitions, Dr. Sly found himself as a Director for Siemens PLM Solutions. The main issue here was that the major product CAD companies focus on solid modeling, product design CAD sales and development (a major barrier to IE technology communication & growth). In 2002, Sly left Siemens and created Proplanner to focus on IE technology. At Proplanner, Sly recreated and improved upon the previous facility layout technologies

Figure 1: Graphical representation from an SLP project , note the space relationship diagram and relationship chart inside of AutoCAD. Weighted factor scores are automatically calculated for all layout alternatives, saving large amounts of time spent measuring the lengths of the relationship lines. The IE can visually improve the layout or use information in provided reports. To measure and evaluate changes to the layout, the IE simply moves any number of departments (MOVE or STRETCH command in AutoCAD) and then automatically recalculates all relationships to see if the changes improved the layout score.

4.2

Automated SHA

Because most layout problems in industry are flowbased, Muthers SHA method offers significant value. IEs know Lean Manufacturing very well. Many have seen the spaghetti charts that are produced during kaizen events. But these dont provide accurate measurements or the ability to study mass amounts of data (e.g. - all parts for the facility). Measureable, interactive spaghetti charts that analyze large mass amounts of data and facilitate SHA

The 11th Asia Pacific Industrial Engineering and Management Systems Conference The 14th Asia Pacific Regional Meeting of International Foundation for Production Research
Melaka, 7 10 December 2010
techniques are what IEs need. With commercial facility layout packages, IEs take from-to chart data (product/part routings), combine it with the drawn to scale layout drawing, and automatically produce material flow diagrams and quantitative metrics for each layout option (see Figure 2). Material handling time, distance, and cost metrics are automatically calculated for each layout option. This gives a quantitative basis to compare alternatives. If the IE wants to evaluate a layout change, he/she simply moves the fromto locations in the drawing and recalculates the material flow. The resulting metrics reveal whether or not the change was an improvement. Automatic reports can be analyzed as well to determine opportunities for improvement. The visualization of material flows within a facility allows the IE, and the layout team, to quickly visualize and improve the layout. Backtracking is clearly visible. From Muthers SHA, thicker flow lines represent higher frequency travel between 2 points. Therefore, thick flow lines with long distances reveal opportunities to improve the facility layout. Furthermore, IEs can color code the flow lines and analyze by product, part, container type, material handling method, etc. order to obtain accurate distance, cost and time metrics for the layout. Following this, the IE can perform congestion analysis to determine which aisle segments are used heavily, and which are used very little (waste of space). High congestion aisle segments show areas of potential safety, productivity, and cleanliness concerns (see Figure 3).

Figure 3: Congestion diagram produced by sending the material flow down the actual path network at an automotive parts factory. Sophisticated material handling data studies can be performed providing accurate data to support efforts to minimize and eliminate material moves (e.g. 3PL outsourcing, moving/eliminating storage locations, implementing Point Of Use storage, automating moves, etc.). Loading Dock Storage studies can be performed to determine the best way to receive and store parts, in order to minimize total material handling distance. Dock and material handling device utilizations can also be performed to determine resource requirements. During material flow studies, we learn that pickup and set down times consume a large percentage of material handling time (waste of indirect labor time and resources). Having tools that can measure and help analyze and reduce this large source of non-value added time provide significant value to the IE. Tuggers, or tow-trains, have been proven to reduce material handling distances within facilities. These material handling devices pickup and deliver materials on pre-determined routes. Defining and visualizing optimal tugger routes is a complex problem for IEs. Commercial facility layout packages offer tools to define and improve complex tugger routes which further reduce material handling distances for the facility..

Figure 2: Graphical representation of the material flow inside the AutoCAD facility layout drawing. Note the metrics shown (time, cost and distance).

4.3

Advanced Flow Analysis

Commercial facility layout packages provide analysis tools beyond Muthers SHA. Because commercial software uses the facility layout drawing, the IE can easily draw a network of aisles (one or two way segments). Then, the from-to locations are automatically connected to the aisle network. The IE can then send the material flow down the actual path network (rectilinear flow lines), in

The 11th Asia Pacific Industrial Engineering and Management Systems Conference The 14th Asia Pacific Regional Meeting of International Foundation for Production Research
Melaka, 7 10 December 2010

4.4 Operator Workstation Analysis

Commercial facility layout packages can also combine the process steps for an operator with the AutoCAD layout drawing, in order to improve the design of the workplace. This allows the IE to visualize, measure, and reduce the distance that the operator travels (waste of time and labor). The IE can quickly rearrange the workcell / workstation, and recalculate the operator travel / process steps. After reducing the distance traveled, the IE can choose to reduce the cycle time for the operation, or add more work to the operator. Operator movement studies can be performed for stationary parts (see Figure 4) or moving parts (see Figure 5). Moving part studies without the use of this technology are particularly difficult. For assembly line stations, the operator has a set of work steps to perform (that vary with each product coming down the line). The operator walks back and forth from the moving part (which is moving at a constant speed) to containers, racks, tables, and other equipment in the station. This technology is useful to determine if the operator(s) can perform the assigned amount of work within their assembly station, and if the operator is able to do more work per cycle. Metrics provided include the percentage of time spent walking, waiting for the product, and waiting for other operators, etc. Additionally, animation of the workplace and part movement can easily be created (inside of AutoCAD), in order to gain a better understanding of the workplace design.

Figure 5: Graphic from a moving part study for 2 operators. The operators perform work at various points on the car, as it moves through the workstation.

5. CONCLUSION
Proven, practical IE technology for facility layouts exists. The communication to Asian universities and practicing IEs about these tools has not been effective. Facility layout authors and instructors should include this technology in the discussions, as these are the tools that IEs need. CRAFT and other algorithms are un-useful to the practicing IE and not used in industry. By using practical facility layout technology, IEs can begin to engineer layouts instead of just drawing them. This way, IEs can provide more contribution to industry, and at the same time, improve the reputation of our profession.

REFERENCES
Tompkins, J., White, J., Bozer, Y, Tanchoco, J.M., (2010) Facilities Planning, John Wiley & Sons Inc., Chapter 6, page 303.

AUTHOR BIOGRAPY
Robin Owens is the Managing Director for Proplanner Asia, a registered corporation in the Philippines. Owens received his Bachelors degree in Industrial Engineering in 1994 from Penn State University. In August 2001, he wrote the cover story of the IE trade magazine IIE Solutions. Owens also received Master of Manufacturing Management and Master of Business Administration degrees from Penn State in 2004. Owens has been an industrial engineer, consultant, and manufacturing manager in the USA and Asia (American Express, Boeing, Intel, Smiths Medical, etc.). Robin Owens can be reached at robin@proplanner.com

Figure 4: Stationary part operator movement study, showing before and after results from a workstation kaizen event.