Session

Facility Layout

Define layout planning and explain its importance Identify and describe different types of layouts Compare process layouts & product layouts Describe the steps involved in designing a process layout Describe the steps involved in designing a product layout Explain the advantages of hybrid layouts Define the meaning of group technology (cell) layouts

 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

 Material handling equipment

Capacity and space requirements Environment and aesthetics

Flows of information
Cost of moving between various work areas

 The objective of layout strategy is to develop a costeffective layout that will meet a firms competitive needs 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 systems low volume of many different products Continuous processing systems high volume of a few standardized products

 Four basic layout types consisting of; Process layouts Group similar resources together Product layouts Designed to produce a specific product efficiently Cell layouts Organizes people & machines into a group Fixed-Position layouts Product is too large to move; e.g. a building

 Equipment that perform similar processes are grouped together Used when the operations system must handle a wide variety of products in relatively small volumes (i.e., flexibility is necessary)

 Advantages of process layouts include general purpose & flexible resources a lower investment in equipment, and diversity of jobs inherent in a process layout can lead to increased worker satisfaction. Disadvantages include high movement and transportation costs, more complicated planning and control systems, longer total processing time, higher in-process inventory or waiting time, higher worker-skill requirements, and Space requirements are higher.

 Operations are arranged in the sequence required to make the product Used when the operations system must handle a narrow variety of products in relatively high volumes Operations and personnel are dedicated to producing one or a small number of products

 Advantages of product layouts include lower work-in-process inventories, shorter processing times, less material handling, lower labor skills, and simple planning and control systems.

Disadvantages include that a breakdown at one workstation can cause the entire process to shut down; a change in product design or the introduction of new products may require major changes in the layout, limiting flexibility.

 Operations required to produce a particular family (group) of parts are arranged in the sequence required to make that family Used when the operations system must handle a moderate variety of products in moderate volumes

 The Advantages are: Reduced work in process inventory workcell is setup to provide one piece flow from machine to machine Less floor space required because less space is needed between machines to keep WIP inventory Reduced direct labor Heightened sense of employee participation Increased use of equipment and machinery Reduced investment in machinery and equipment

 Product remains in a fixed position, and the personnel, material and equipment come to it Used when the product is very bulky, large, heavy or fragile Complicating factors Limited space at site Different materials required at different stages of the project Volume of materials needed is dynamic

 Step 1: Gather information: Space needed, space available, importance of proximity (closeness) 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

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. D Examining Rooms 800 sq. ft. B Laboratory 300 sq. ft. E Surgery & Recovery 900 sq. ft. C Lobby & Waiting 300 sq. ft. F Physical Therapy 1050 sq. ft.

Table From-To Matrix for Recovery First

Table REL Chart for Recovery First

Step 2: Develop A New Block Layout

Use trial and error with From-To and REL Charts as a guide Use computer software like ALDEP or CRAFT

Table : Id Score Computations for Current and Proposed Layouts for Recovery First

 Decision Support Tools Trial and error method good for simple problems Layout problems are combinatorial, 3x2 office layout has 6! Options (6*5*4*3*2*1 = 720 options) Computer programs are available decision support tools ALDEP (Automated Layout Design Program) based on REL (Relationship Layout) and CRAFT (Computerized Relative Allocation of Facilities Techniques) based on form-to matrix

 There are a number of unique process layouts which include Warehouse layouts Office Layouts

 Objective is to optimize trade-offs between handling costs and costs associated with warehouse space Maximize the total cube of the warehouse utilize its full volume while maintaining low material handling costs Warehouse density tends to vary inversely with the number of different items stored Automated Storage and Retrieval Systems (ASRSs) can significantly improve warehouse productivity by an estimated 500% Dock location is a key design element

 The usage of Crossdocking modifies the traditional warehouse layouts; more docks, less storage space, and less order picking Materials are moved directly from receiving to shipping and are not placed in storage in the warehouse Requires tight scheduling and accurate shipments, bar code or RFID identification used for advanced shipment notification as materials are unloaded

 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 layouts are different than process layouts

Product layouts provide for sequential product movement that enhances efficiency
Designing product layouts requires consideration of Sequence of tasks to be performed by each workstation Logical order Speed considerations line balancing

 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

 Step 1: Identify tasks & immediate predecessors

Example 10.4 Vicki's Pizzeria and the Precedence Diagram Immediate Task Time Work Element Task Description Predecessor (seconds
A B C D E F G H I Roll dough Place on cardboard backing Sprinkle cheese Spread Sauce Add pepperoni Add sausage Add mushrooms Shrinkwrap pizza Pack in box None A B C D D D E,F,G H Total task time 50 5 25 15 12 10 15 18 15 165

Wiley 2007

 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
Cycle time (sec./unit ) available time sec./day 60 min/hr x 60 sec/min 60 sec./unit desiredoutput units/hr 60 units/hr

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

Maximum output available time 3600 sec./hr. 72 units/hr,or pizzas per hour bottlenecktask time 50 sec./unit

 Step 4: Compute the theoretical minimum number of stations TM = number of stations needed to achieve 100% efficiency (every second is used)
TM

task times
cycle time

165 seconds 2.75, or 3 stations 60 sec/statio n

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

 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 1 Eligible task A B C D E, F, G E, F F H I Task Selected A B C D G E F H I Task time 50 5 25 15 15 12 10 18 15 Idle time 10 5 35 20 5 48 38 20 5

 Step 6: Compute efficiency and balance delay Efficiency (%) is the ratio of total productive time divided by total time
Efficiency

t (% )
NC

165 sec. 100 91.7% 3 stations x 60 sec.

Balance delay (%) is the amount by which the line falls short of 100%
Balance delay 100% 91.7% 8.3%

 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

 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

 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