MMV14003 INDUSTRIAL AND SYSTEM ENGINEERING| SEM 2 20182019

CHAPTER 5: Ts. Mohd Fairuz Bin Marian

FACILITY LAYOUT & DESIGN
HIGHLIGHTS
1. Intro: Nature; Significance and Scope
2. Facility Location: Location analysis; Single and Multi-
facility location problems; Steps in layout planning
3. Material Handling: Principles; Equipment selection
4. Storage and Warehousing: Functions, Objectives and
Principles; Facility services.

© FAIRUZM@UTHM.EDU.MY | 2018 2
IMPORTANCE OF LOCATION
Why strategic location is important?
§FedEX, Mercedes-Benz and Hard Rock give a good example
how they locate their locations.
§Location greatly affects both fixed and variable costs.
§Location decision:
­ Expanding existing facility instead of moving
­ Maintaining current while adding another elsewhere
­ Closing existing and moving to another location

© FAIRUZM@UTHM.EDU.MY | 2018 3
KSF – KEY SUCCESS FACTORS

© FAIRUZM@UTHM.EDU.MY | 2018 4
KSF – KEY SUCCESS FACTORS

© FAIRUZM@UTHM.EDU.MY | 2018 5
CLUSTERING OF COMPANIES - LOCATION
INDUSTRY LOCATIONS REASON FOR CLUSTERING

Wine making Napa Valley (U.S.), Bordeaux region Natural resources of land and climate
(France)
Software firms Silicon Valley, Boston, Bangalore, Israel Talent resources of bright graduates in scientific/technical
areas, venture capitalists nearby

Clean energy Colorado Critical mass of talent and information, with 1,000 companies

Theme parks (e.g., Disney World, Orlando, Florida A hot spot for entertainment, warm weather, tourists, and
Universal Studios, and Sea inexpensive labor
World)
Electronics firms (e.g., Sony, IBM, Northern Mexico NAFTA, duty-free export to U.S. (24% of all TVs are built here)
HP, Motorola, and Panasonic)
Computer hardware Singapore, Taiwan High technological penetration rates and per capita GDP,
manufacturing skilled/educated workforce with large pool of engineers

Fast-food chains (e.g., Wendy’s,
McDonald’s, Burger King, Pizza
Hut)
General aviation aircraft (e.g.,
Cessna, Learjet, Boeing,
Raytheon)
Athletic footwear, outdoor wear
Sites within 1 mile of one another Stimulate food sales, high traffic flows
Wichita, Kansas Mass of aviation skills (60–70% of world’s small planes/jets
are built here)
Portland, Oregon 300 companies, many spawned by Nike, deep talent pool and
© FAIRUZM@UTHM.EDU.MY | 2018 6
outdoor culture
 OBJECTIVES OF FACILITIES PLANNING
Among the objectives are:
§To enable the plant or the production system to function at peak
efciency and effectiveness.
§Thus, layout design is aimed at minimizing machines and workers
idle time which may arise from unnecessary movements, bottlenecks
and uneven utilization of both workers and machines.
§To minimize in-process inventories, materials handling costs, facilities
operation and maintenance costs.
§To provide a safe and pleasant place for people to conduct
business and work.

© FAIRUZM@UTHM.EDU.MY | 2018 7
FACTORS INFLUENCING LAYOUT
§The volume of production or the required capacity per time period of the
facility
§The nature of the manufacturing process i.e. size, number and sequence
of machines required in the technology of the productive process
§The required safety precautions, such as health care provisions, comfort
needs, personal care needs and other forms of accommodations reserved
for employees
§Building and site constraints, i.e. the size, shape and topography of site
The expected growth trend of the company and its future plans
§The characteristics of materials such as the size, shape, fragility, bulkiness,
weight and so forth

© FAIRUZM@UTHM.EDU.MY | 2018 8
LAYOUT DECISIONS
In all cases, layout design must consider how to achieve the
following:
­Higher utilization of space, equipment, and people
­Improved flow of information, materials, and people
­Improved employee morale and safer working conditions
­Improved customer/client interaction
­Flexibility (whatever the layout is now, it will need to change)

© FAIRUZM@UTHM.EDU.MY | 2018 9
FEATURES OF GOOD PLANT LAYOUT
Ease of
Working

Production Reduce
Condition Material
Variant
Flexibility Good Handling

Plant
Layout

Reduce
Reduce Material
Congestion Damage &
Spoilage

© FAIRUZM@UTHM.EDU.MY | 2018 10
LAYOUT TYPES
Fixed
Position

Product
Layout
Layout
Process
Layout

Combination
- GT ; FMS,

© FAIRUZM@UTHM.EDU.MY | 2018 11
© FAIRUZM@UTHM.EDU.MY | 2018 12
LAYOUT TYPES | FIXED POSITION
§Product is stationed in xed positions while materials, employees, machines are
brought to and from the products as needed to perform their appropriate stages of
buildup
§Used when the product is heavy, bulky, large, fragile, etc.
§Example: aircraft, ships, highways, building, power plant, etc. Techniques addressing
this type of layout are not well developed and are complicated by three factors [1]:
-There is limited space at virtually all sites
-At different stages of production, different materials are needed
-Volume of materials needed is dynamic

© FAIRUZM@UTHM.EDU.MY | 2018 13
LAYOUT TYPES | PRODUCT
§Also known as line layout
§Associated with ow / continuous production
§A group of machines are in successive operations to produce a
standardized nished product in large volume
§Each unit of output undergo the same operations from start to end
§Workers perform a narrow range of activities on only a few products
repeatedly. The amount of skills, training and supervision required is
low
§Location of workers, machines and materials are on the basis of the
sequence of operations

© FAIRUZM@UTHM.EDU.MY | 2018 14
 LAYOUT TYPES | PRODUCT
r is tic s of Pro d uc t L ayout
Characte
§High output volume, reduced unit manufacturing cost.
§Balanced work-ow and minimized stock-in-process
§Simplied work design via break-down to smaller tasks
§Automated machinery are highly utilized
§Control of product quality through operator feedback
§Minimum material handling due to sequential operations
§Highly specialized operator work skill, faster training as less skill required
§Minimal work-in-process improvement
§Preventive maintenance is necessary as such a layout is highly susceptible to operation break-
down
© FAIRUZM@UTHM.EDU.MY | 2018 15
© FAIRUZM@UTHM.EDU.MY | 2018 16
© FAIRUZM@UTHM.EDU.MY | 2018 17
© FAIRUZM@UTHM.EDU.MY | 2018 18
LAYOUT TYPES | PROCESS
§Also known as functional layout
§Similar machines or equipment are grouped together (e.g. in a cell)
§Workers in such a layout must change and adapt quickly to the multitude of
operations to be performed on each unique batch of products being produced
§Work ows are not standardized, outputs or products may vary. They may
consist of a variety of different products or one basic type of product with
many variations
§Example: printing shops, medical services, furniture factory, etc.

[1] H EIZER , J., AND R ENDER , B. Operations Management. Prentice Hall, 2008.
© FAIRUZM@UTHM.EDU.MY | 2018 19
 LAYOUT TYPES | PROCESS
Advantages
§Possibility of utilizing very high output machinery which may be employed on one job
in order to manufacture a suitable size of batch and then changed to another job
§Able to accommodate different product routes by using general purpose machines
and are able to change from one type of production to another with minimum
expenditure on tooling and resetting
§Greater margin for safety when breakdown occurs. A single breakdown will only
slow down one part of the process
§Operators are generally skillful / multi-skilled

© FAIRUZM@UTHM.EDU.MY | 2018 20
© FAIRUZM@UTHM.EDU.MY | 2018 21
© FAIRUZM@UTHM.EDU.MY | 2018 22
© FAIRUZM@UTHM.EDU.MY | 2018 23
LAYOUT TYPES | COMPARISON

© FAIRUZM@UTHM.EDU.MY | 2018 24
© FAIRUZM@UTHM.EDU.MY | 2018 25