Layout Strategies

9
PowerPoint presentation to accompany
Heizer and Render
Operations Management, Eleventh Edition
Principles of Operations Management, Ninth Edition

PowerPoint slides by Jeff Heyl

© 2014
© 2014
Pearson
Pearson
Education,
Education,
Inc.Inc. 9-1
 Innovations at McDonald’s

► Indoor seating (1950s)

► Drive-through window (1970s)
► Adding breakfast to the menu (1980s)
► Adding play areas (late 1980s)
► Redesign of the kitchens (1990s)
► Self-service kiosk (2004)
► Now three separate dining sections
© 2014
© 2014
Pearson
Pearson
Education,
Education,
Inc.Inc. 9-2
 Innovations at McDonald’s

► Indoor seating (1950s)

► Drive-through windowSix(1970s)
out of the
► Adding breakfast to the seven are
menu (1980s)
layout
► Adding play areas (late decisions!
1980s)
► Redesign of the kitchens (1990s)
► Self-service kiosk (2004)
► Now three separate dining sections
© 2014
© 2014
Pearson
Pearson
Education,
Education,
Inc.Inc. 9-3
 McDonald’s New Layout
▶ Seventh major innovation
▶ Redesigning all 30,000 outlets around the
world
▶ Three separate dining areas
▶ Linger zone with comfortable chairs and Wi-Fi
connections
▶ Grab and go zone with tall counters
▶ Flexible zone for kids and families
▶ Facility layout is a source of competitive
advantage
© 2014
© 2014
Pearson
Pearson
Education,
Education,
Inc.Inc. 9-4
 Good Layouts Consider
► Material handling equipment
► Capacity and space requirements
► Environment and aesthetics
► Flows of information
► Cost of moving between various work
areas

© 2014 Pearson Education, Inc. 9-5

 Relationship Chart

Figure 9.1
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 Store Layout

Figure 9.2
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© 2014 Pearson Education, Inc. 9-8
 Fixed-Position Layout
▶ Product remains in one place
▶ Workers and equipment come to site
▶ Complicating factors
▶ Limited space at site
▶ Different materials
required at different
stages of the project
▶ Volume of materials
needed is dynamic
© 2014 Pearson Education, Inc. 9-9
 Process-Oriented Layout
▶ Like machines and equipment are
grouped together
▶ Flexible and capable of handling a
wide variety of products or services
▶ Scheduling can be difficult and setup,
material handling, and labor costs can
be high

© 2014 Pearson Education, Inc. 9 - 10

 Process-Oriented Layout
Surgery ER triage room Emergency room admissions
Patient A - broken leg

Patient B - erratic heart

pacemaker

Laboratories

Radiology ER Beds Pharmacy Billing/exit

Figure 9.3

© 2014 Pearson Education, Inc. 9 - 11

 Process-Oriented Layout
▶ Arrange work centers so as to minimize
the costs of material handling
▶ Basic cost elements are
▶ Number of loads (or people) moving
between centers
▶ Distance loads (or people) move between
centers

© 2014 Pearson Education, Inc. 9 - 12

 Process-Oriented Layout
n n
Minimize cost = åå X ijCij
i=1 j=1

where n = total number of work centers or departments

i, j = individual departments
Xij = number of loads moved from
department i to department j
Cij = cost to move a load between
department i and department j

© 2014 Pearson Education, Inc. 9 - 13

 Process Layout Example
Arrange six departments in a factory to
minimize the material handling costs. Each
department is 20 x 20 feet and the building
is 60 feet long and 40 feet wide.
1. Construct a “from-to matrix”
2. Determine the space requirements
3. Develop an initial schematic diagram
4. Determine the cost of this layout
5. Try to improve the layout
6. Prepare a detailed plan
© 2014 Pearson Education, Inc. 9 - 14
 Process Layout Example
Figure 9.4

Number of loads per week

Department Assembly Painting Machine Receiving Shipping Testing
(1) (2) Shop (3) (4) (5) (6)

Assembly (1) 50 100 0 0 20

Painting (2) 30 50 10 0

Machine Shop (3) 20 0 100

Receiving (4) 50 0

Shipping (5) 0

Testing (6)

© 2014 Pearson Education, Inc. 9 - 15

 Process Layout Example
Figure 9.5 Area A Area B Area C

Assembly Painting Machine Shop

Department Department Department
(1) (2) (3)

40’

Receiving Shipping Testing

Department Department Department
(4) (5) (6)

Area D Area E Area F

60’
© 2014 Pearson Education, Inc. 9 - 16
 Process Layout Example
Figure 9.6
Interdepartmental Flow Graph
100

Assembly 50 Painting 30 Machine

(1) (2) Shop (3)

10
100

Receiving Shipping Testing

(4) (5) (6)
50

© 2014 Pearson Education, Inc. 9 - 17

 Process Layout Example
n n
Cost = åå X ijCij
i=1 j=1

Cost = $50 + $200 + $40

(1 and 2) (1 and 3) (1 and 6)
+ $30 + $50 + $10
(2 and 3) (2 and 4) (2 and 5)
+ $40 + $100 + $50
(3 and 4) (3 and 6) (4 and 5)
= $570

© 2014 Pearson Education, Inc. 9 - 18

 Process Layout Example
Revised Interdepartmental Flow Graph
Figure 9.7
30

Painting 50 Assembly 100 Machine

(2) (1) Shop (3)

50 100

Receiving Shipping Testing

(4) (5) (6)
50

© 2014 Pearson Education, Inc. 9 - 19

 Process Layout Example
n n
Cost = åå X ijCij
i=1 j=1

Cost = $50 + $100 + $20

(1 and 2) (1 and 3) (1 and 6)
+ $60 + $50 + $10
(2 and 3) (2 and 4) (2 and 5)
+ $40 + $100 + $50
(3 and 4) (3 and 6) (4 and 5)
= $480

© 2014 Pearson Education, Inc. 9 - 20

 Process Layout Example
Figure 9.8 Area A Area B Area C

Painting Assembly Machine Shop

Department Department Department
(2) (1) (3)

40’

Receiving Shipping Testing

Department Department Department
(4) (5) (6)

Area D Area E Area F

60’
© 2014 Pearson Education, Inc. 9 - 21
 Staffing and Balancing Work
Cells
Determine the task time
Total work time available
Task time =
Units required

Determine the number

of operators required

Total operation time required

Workers required =
Task time

© 2014 Pearson Education, Inc. 9 - 22

 Staffing Work Cells Example
600 Mirrors per day required
Mirror production scheduled for 8 hours per day
From a work balance 60

chart total operation 50

time = 140 seconds

Standard time required

40

30

20

10

Figure 9.10
0
Assemble Paint Test Label Pack for
shipment
© 2014 Pearson Education, Inc. Operations 9 - 23
 Staffing Work Cells Example
600 Mirrors per day required
Mirror production scheduled for 8 hours per day
From a work balance
chart total operation
time = 140 seconds

Takt time = (8 hrs x 60 mins) / 600 units

= .8 min = 48 seconds
Total operation time required
Workers required = Takt time
= 140 / 48 = 2.92
© 2014 Pearson Education, Inc. 9 - 24
 Assembly-Line Balancing
▶ Objective is to minimize the imbalance
between machines or personnel while
meeting required output
▶ Starts with the precedence relationships
▶ Determine cycle time
▶ Calculate theoretical
minimum number of
workstations
▶ Balance the line by
assigning specific
tasks to workstations
© 2014 Pearson Education, Inc. 9 - 25
 Wing Component Example
TABLE 9.2 Precedence Data for Wing Component
ASSEMBLY TIME
TASK (MINUTES)
A 10
B 11
C 5
D 4
TASK MUST FOLLOW
TASK LISTED BELOW
– This means that
A tasks B and E
cannot be done
B until task A has
B
been completed

E 11 A
F 3 C, D
G 7 F
H 11 E
I 3 G, H
Total time 65

© 2014 Pearson Education, Inc. 9 - 26

 Wing Component Example
Precedence Data for Wing
TABLE 9.2 Component 480 available mins
TASK MUST
per day
ASSEMBLY TIME FOLLOW TASK 40 units required
TASK (MINUTES) LISTED BELOW
A 10 –
Production time available
B 11 A per day
C 5 Cycle
B time = Units required per day
D 4 B Figure 9.12
= 480 / 40
E 11 A 5
F 3 C, D = 12 minutes per unit
C
10 n
11 3 7
åB Time for task
G 7 F
H 11 E A F i G
Minimum number i=1 4
I 3 G, H
of workstations = 3
11
Cycle
D time
11 I
Total time 65
= 65E/ 12 H
=5.42, or 6 stations
© 2014 Pearson Education, Inc. 9 - 27
 Wing Component Example
Layout Heuristics That May Be Used to Assign Tasks
TABLE 9.3
to Workstations in Assembly-Line Balancing
1. Longest task time From the available tasks, choose the
task with the largest (longest) task time
2. Most following tasks From the available tasks, choose the
task with the largest number of following
tasks
3. Ranked positional From the available tasks, choose the
weight task for which the sum of following task
times is the longest
4. Shortest task time From the available tasks, choose the
task with the shortest task time
5. Least number of From the available tasks, choose the
following tasks task with the least number of subsequent
tasks

© 2014 Pearson Education, Inc. 9 - 28

 Wing Component Example
480 available mins
Figure 9.13 per day
40 units required
Cycle time = 12 mins
Minimum
Station 5 workstations = 5.42 or 6
2
C
10 11 3 7
A B F G
4 3
D Station 3
Station 4 I
11 11
Station 6
Station Station 6
1 E H
Station Station
3 5
© 2014 Pearson Education, Inc. 9 - 29
 Wing Component Example
Precedence Data for Wing 480 available mins
TABLE 9.2 Component per day
TASK MUST
ASSEMBLY TIME FOLLOW TASK
40 units required
TASK (MINUTES) LISTED BELOW Cycle time = 12 mins
A 10 –
Minimum
B 11 A
workstations = 5.42 or 6
C 5 B
D 4 B Figure 9.12
E 11 A 5
F 3 C, D
∑ Task times C
Efficiency
G = 7 F 10 11 3 7

H
(Actual
11
number of
E
workstations)
A B x (Largest cycle
F
time)
G
4
I = 65 minutes
3 / ((6 stations)
G, H x (12 minutes)) 3
D I
Total time 65 11 11
= 90.3%
E H

© 2014 Pearson Education, Inc. 9 - 30

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