INTRODUCTION TO INDUSTRIAL

ENGINEERING - IE 1000

FACILITY LAYOUT

Circe Niezen
L-257
cniezen@pupr.edu
COST MATRIX

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 The layout cost function will result from
the sum of each particular layout cost
function per department. Check the
result that is actually presented below
the cost matrix above:
 L = $3,474.00

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 Canwe check the results of the cost
matrix by interchanging departments 4
and 6:

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 Take note that there is going to be an
impact in the total cost by means of
locating differently departments because
now the units of flow will have larger or
smaller traveled distance.
 Before, there was the
INTERWORKCENTER FLOW GRAPH
showing critical movements between
several departments. 5
COST MATRIX
 Let’s develop the INTERWORKCENTER
FLOW GRAPH into something even
more useful (and let’s be creative with
the tools).
 Let’s develop what we might call an
INTERWORKCENTER LAYOUT COST
GRAPH. In this case, the graph or figure
will show us the cost impact of the
decision of changing just departments 4 6
and 6.
COST MATRIX

1 3 5 7

2 6 4 8

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 If
you go over this exercise and develop
the new tool, the total layout cost
function will be:

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COST MATRIX – TOY FACTORY EXAMPLE
 Can you think further on providing an
improvement total layout cost function
for the Toy Factory?
 Let’s divide in teams and let’s propose a
better total layout cost function.

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COST MATRIX - TOY FACTORY EXAMPLE

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COST MATRIX - TOY FACTORY EXAMPLE

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COST MATRIX - TOY FACTORY EXAMPLE

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COST MATRIX - ADDITIONAL
REFLECTIONS:

 There are no infinite options to locate

departments.
 There are feasible solutions since for
example the loading dock is next to
locations 1 and 2 on the left side of the
site.
 What departments should be located in
the 1 and 2 positions?
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COST MATRIX - ADDITIONAL
REFLECTIONS:

 There will always be additional

considerations, constraints,
stakeholders, and subjective ideas in
order to develop an effective (customer
wants) and efficient (business wants).
 You will sure be requested to work with
them in the layout class and project
further in your career.
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COST MATRIX - ADDITIONAL
REFLECTIONS:

 The discussion here is rather simplified

in order to introduce you to the
fascinating field of Facilities Planning
and Design from a limited perspective.
 The example we used above was
developed for a manufacturing facility.
 Of course, when you think of the
definition we initially offer in this
material by the process of determining 17
COST MATRIX - ADDITIONAL
REFLECTIONS:

 “placement of things”, you can easily

evaluate that this type of decisions could
have great impact in the quality of life
for cities, in the efficiency and
effectiveness of services and definitely on
the competitiveness of a country to
deliver “world-class” business conditions.

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COST MATRIX - ADDITIONAL
REFLECTIONS:

 Finally,Facilities Planning and Design

or Facilities Layout is part of a cross-
disciplinary practice named Service
Design Thinking that combines
numerous skills in design, management
and process engineering.

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COST MATRIX - ADDITIONAL
REFLECTIONS:

 Finally,Facilities Planning and Design

or Facilities Layout is part of a cross-
disciplinary practice named Service
Design Thinking that combines
numerous skills in design, management
and process engineering.

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COST MATRIX - EXAMPLE
 The Cyprus Citrus Cooperative ships a
high volume of individual orders for
oranges to northern Europe.
 The paperwork for the shipping notices
is done in the accompanying layout.
 Revise the layout to improve the flow
and conserve space if possible:

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COST MATRIX - EXAMPLE

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COST MATRIX - EXAMPLE

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MANUFACTURING CELL BENEFITS
1. Better human relations
2. Improved operator expertise
3. Less in-process inventory and
material handling
4. Faster production setup
PROJECT LAYOUT
 Characterized by a relatively low
number of production units.
 Visualize the product as the hub of a
wheel with materials and equipment
arranged concentrically around the
production point.
PROJECT LAYOUT
A high degree of task ordering is
common.
 To the extent that this precedence
determines production stages, a
project layout might be developed by
arranging materials according to
their technological priority.
RETAIL SERVICE LAYOUT
 Goal

“maximize net profit per square

foot of floor space”
RETAIL SERVICE LAYOUT
RETAIL SERVICE LAYOUT
 Servicescapes
 Ambient conditions
 Background characteristics, such as noise
 Spatial layout and functionality
 Planning the circulation path of customers
and grouping merchandise
 Signs, symbols, and artifacts
 Parts of the service that have social
significance
ALTERNATIVE STORE LAYOUTS
OFFICE LAYOUT
 More open offices
 Low divider walls
 Size and orientation of desks
indicates importance of people
behind them
OFFICE LAYOUT