Chapter 10 Facility

Layout
Operations Management
by
R. Dan Reid & Nada R. Sanders
4th Edition Wiley 2010

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Learning Objectives

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
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Learning Objectives cont

Describe the steps involved in

designing a product layout
Explain the advantages of hybrid
layouts
Define the meaning of group
technology (cell) layouts

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What Is Layout Planning?

Layout planning is deciding the best physical
arrangement of all 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
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Types of Layouts

Four basic layout types consisting of:

Process layouts - Group similar resources

together
Product layouts - Designed to produce a
specific product efficiently
Hybrid layouts - Combine aspects of both
process and product layouts
Fixed-Position layouts - Product is two large
to move; e.g. a building
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Process Layouts

Process layout unique characteristics

include:

Resources used are general purpose

Facilities are less capital intensive
Facilities are more labor intensive
Resources have greater flexibility
Processing rates are slower
Material handling costs are higher
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Process Layouts cont

Scheduling resources & work flow is

more complex
Space requirements are higher

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Product Layouts

Product layout unique characteristics are:

Resources are specialized

Facilities are capital intensive
Processing rates are faster
Material handling costs are lower
Space requirements for inventory storage are
lower
Flexibility is low relative to the market
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Process vs. Product

Layouts
Here are the characteristic differences between a
process and product layout.

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Hybrid Layouts

Combine elements of both product &

process layouts

Maintain some of the efficiencies of

product layouts
Maintain some of the flexibility of process
layouts

Examples:

Group technology & manufacturing cells

Grocery stores
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Fixed-Position Layout

Used when product is large

Product is difficult or impossible to
move, i.e. very large or fixed
All resources must be brought to the
site
Scheduling of crews and resources is a
challenge
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Designing Process Layouts

Step 1: Gather information:
Space needed, space available, identify
closeness measures

Step 2: Develop alternative block plans:

Using trial-and-error or decision support tools

Step 3: Develop a detailed layout:

Consider exact sizes/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
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Special Cases of Process

Layouts
A number of unique process layouts
require special attention. We will look
at two of these:
Warehouse layouts
Office Layouts

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Warehouse Layouts
Warehouse Layout Considerations:

Primary decision is where to locate each

department relative to the dock
Departments can be organized to minimize
ld totals
Departments of unequal size require
modification of the typical ld calculations
to include a calculation of the ratio of
trips to area needed
The usage of Crossdocking modifies the
traditional warehouse layouts; more docks,
less storage space, and less order picking
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Office Layouts
Office Layout Considerations:

Almost half of US workforce works in an office

environment
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
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Designing Product Layouts

Designing product layouts requires

consideration of:

Sequence of tasks to be performed by

each workstation
Logical order
Speed considerations line balancing

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Designing Product Layouts

cont
Step 1: Identify tasks & immediate predecessors
Step 2: Determine output rate
Step 3: Determine cycle time
Step 4: Compute the Theoretical Minimum number
of Stations
Step 5: Assign tasks to workstations (balance the
line)
Step 6: Compute efficiency, idle time & balance
delay
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Step 1: Identify Tasks &

Immediate Predecessors

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Layout Calculations

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
desired output 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

bottleneck task time 50 sec./unit
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Layout Calculations cont

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/station

Always round up (no partial

workstations)
Serves as a lower bound for our analysis
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Layout Calculations cont

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 2010
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Task time
50
5
25
15
15
12
10
18
15

Idle time
10
5
35
20
5
48
38
20
5
21

Last Layout Calculation

Step 6: Compute efficiency and balance

delay

Efficiency (%) is the ratio of total

productive time
by total time
165 sec.
t divided
Efficiency (%)

NC

3 stations x 60 sec.

100 91.7%

Balance delay (%) is the amount by which

the line falls short of 100%
Balance delay 100% 91.7% 8.3%
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Other Product Layout

Considerations

Shape of the line (S, U, O, L):

Paced versus Un-paced lines

Share resources, enhance communication &

visibility, impact location of loading & unloading

Paced lines use an automatically enforced cycle

time

Number of Product Models produced

Single
Mixed-model lines
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Group Technology (CELL)

Layouts

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

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Process Flows before the Use of GT

Cells

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Process Flows after the Use of GT

Cells

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Facility Layout Across the

Organization
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
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Facility Layout within OM:

How it all fits together

Layout decisions are directly related to issues of

product design and process selection (Ch 3).
Job design, as process layouts tend to require greater
worker skills than do product layouts (Ch 11).
Degree of automation, as product layouts tend to be
more capital intensive and use more automation
compared to process layouts (Ch 3).
Layout decisions are also affected by implementation
of just-in-time (JIT) systems, which dictate a line flow
and the use of group technology (GT) cells (Ch 7).
As layout decisions specify the flow of goods through
the facility, they impact all other aspects of
operations management.
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Chapter 10 Highlights

Layout planning is deciding on the best physical

arrangement of all resources that consumes space
within a facility. Proper layout planning is highly
important for the efficient running of a business.
Otherwise, there can be much wasted time and
energy, as well as confusion.

There are four basic types of layouts: process,

product, hybrid, and fixed position. Process layouts
group resources based on similar processes. Product
layouts arrange resources in straight-line fashion.
Hybrid layouts combine elements of both process
and product layouts. Fixed-position layouts occur
when the product is larger and cannot be moved.
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Chapter 10 Highlights
cont

Process layouts provide much flexibility and allow

for the production of many products with differing
characteristics. Product layouts, on the other hand,
provide greater efficiency when producing one type
of product.

The steps for designing process layouts are (1)

gather information about space needs, space
availability, and closeness requirements of
departments; (2) developing a block plan or
schematic of the layout; and (3) developing a
detailed layout.
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Chapter 10 Highlights
cont

The steps for designing an product layout are (1)

identify tasks that need to be performed and their
immediate predecessors; (2) determine output rate;
(3) determine cycle time; (4) computing the
theoretical minimum number of work stations, (5)
assigning tasks to workstations; and (6) computing
efficiency and balance delay.
Hybrids layouts have advantages over other layout
types because they combine elements of both
process and product layouts to increase efficiency.
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Chapter 10 Highlights
cont

An example of hybrid layouts is group technology or

cell layouts. Group technology is the process of
crating groupings of products based on similar
processing requirements. Cells are created for each
grouping of products, resulting in a more orderly
flow of products through the facility.

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Chapter 10 Homework
Hints

10.8: Assign sites based on number

of trips (refer to Example 10.2). There
is no strategy regarding which side of
the aisle to assignjust nearness to
the dock.
10.16: Follow the steps. This is a
product layout (assembly line
balancing). The book has an example
on pages 360-366, which is also on
the slides covered in class.

Sample Problem10.7

Departmen Category
t

Trips
to/from
dock

Sports t-shirts

50

Mens t-shirts

63

Womens t-shirts

35

Childrens t-shirts

55

Fashion t-shirts

48

Sample Problem 10.15

Task

Imm. predecessor

Task time (sec)

None

55

30

22

35

B, C

50

15

10

TOTAL

222

Draw precedence diagram

Determine cycle timedemand = 50 units/hr
Theoretical minimum no. of work stations
Assign tasks to workstations using cycle time
Efficiency and balance delay of line?
Bottleneck?
Maximum output?