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MET463 Operations Management

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 Module II-Topics
1. Capacities and facilities
2. Capacity planning
3. Facility layout – objectives,
4. Tpes of layout
5. Process layout
6. Product layout
7. Fixed position layout
8. Cellular layout
9. Systematic layout planning
10. Layout design procedures
11. CRAFT
12. CORELAP
13. ALDEP
14. Assembly line balancing
15. Methods for line balancing
16. Rank positional weight method
17. COMSOAL

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 Capacity planning

 Capacity is the ability to produce work in a given time or in other words it is the
productive capability of a facility.
 Capacity planning is the process of estimating the amount of capacity,
evaluating alternative methods of modifying capacity, and devising various
methods to use capacity effectively.

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 Plant layout
 Plant layout refers to the arrangement of physical facilities such as machinery,
equipment, etc., within the factory building.
Factors influencing layout
1. Type of industry
2. Nature of product
3. Type of machinery
4. Nature of materials
5. Volume of production
6. Human factor and working conditions
7. Factory building
8. Influence of manufacturing processes

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 Principles of plant layout
1. Principle of integration
2. Principle of minimum distance
3. Principle of cubic space utilization
4. Principle of flow
5. Principle of maximum flexibility
6. Principle of safety and security and satisfaction
7. Principle of minimum handling

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 Weakness of a poor plant layout
1. Low production density and underutilization of plant capacity.
2. Lack of flexibility in the plant production facilities.
3. Long processing time due to delays, temporary storage, bottle-necks, etc.
4. Improper utilization of plant.
5. Uneconomical material handling.
6. Costly inspection and difficulty in maintaining quality standards.
7. Inadequate storage facilities.
8. Equipment and production machinery not accessible for maintenance and
repair due to layout.
9. Poor lighting, ventilation, air cleaning arrangement is in the layout.
10. Inadequate safety provisions for workers.

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 Types of plant layout
In case of manufacturing unit, plant layout may be of five types.
1. Product layout
2. Process layout
3. Fixed position layout
4. Combination layout
5. Group layout

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 Product layout
Lathe Drill Grinder Assembly Paint shop
Product A
(1) (2) (3) (4) (5)

Product B Planer Grinder Mill Lathe Welding

(1) (2) (3) (4) (5)

Product layout

 In product layout or line layout, machines and equipments are arranged in the
sequence of manufacturing operations required for the product.
 The material is moved from one work station to another sequentially without
any backtracking or deviation.
 The output of one machine becomes input of the next.
Advantages of product layout
1. Low cost of material handling, due to straight and short route.
2. Unskilled workers can learn and manage the production.
Disadvantages of product layout
1. Product layout lack in flexibility as a change in product may require the
facility modification.
2. Large capital investment.
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 Process layout
Drilling Planning Grinding

(1) (2) (5) (5)

(2) (3)

(1)
(3) (4) (4) (6) (6)
Milling Welding Assembly

Product A Product B
Process layout

 In process layout or functional layout, machines performing similar type of

operations are located together according to their function. eg. all lathes, all
milling machines grouped in the shop.
 Products moves between the groups of equipments in order of the operations
required.
Advantages of process layout
1. Flexibility of equipment.
2. Higher utilization of production facilities.
Disadvantages of process layout
1. More space is required.
2. Production planning and control is difficult.
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 Fixed layout
Ship building yard

Material
Finished
Labour
product (ship)
Equipment

Fixed position layout

 In this layout, men and equipment moved to the material, which remains
at one place and product is completed at that place where the material lies.
Advantages of fixed position layout
1. Layout capital investment is lower.
2. Greater flexibility.
3. Helps in job enlargement and upgrades skills of the operators.
Disadvantages of fixed position layout
1. Cost of moving material is high.
2. Makes only one or few pieces of product.

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 Combination Layout
Product layout

F H GF
HT
Store Process Stock
room layout room

F-Forging hammer H-Hobbing machine

HT-Heat treatment furnace GF-Gear finishing machine
Combination layout for making different types and sizes of gears

 Generally, a combination of the product and process layout or other combination are
found, in practice.
 A combination of process and product layouts combines the advantages of both types
of layouts.

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 Group Layout
Legend
Cell 1 L L M D G

Cell 2 A A
L : Lathe
Store for D : Drilling
L M G G
receiving G : Grinding
M : Milling
Cell 3
A : Assembly
Store for
L M D shipping

Group layout

 Group layout is configured to support cellular manufacturing. In cellular

manufacturing, machines are grouped according to the process requirements for a
set of similar items (part families) that require similar processing.
 These groups are called cells. Processes are grouped into cells using a technique
known as group technology (GT).
 Group technology involves identifying parts with similar design characteristics
(size, shape and function) and similar process characteristics (type of processing
required, available machinery that performs this type of process, and processing
sequence).
 Thus, group layout is a combination of the product layout and process layout.
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 Comparison between process layout and product layout
Characteristic Product layout Process layout
Machines are arranged as per Machines are arranged on the
Arrangement
sequence of operations. basis of their functions.
High volume and standard High variety and low volume
Application
products. of products.
Smooth and continuous and No smooth flow and varies
Work flow
in straight lines. with each product and zigzag.
High in process inventory
Inventory Low in process inventory.
Very high.
Very minimum, with fixed it More handling and no scope
Material handling
is possible to automate. for automation.
Flexibility Low. Very high.
Machine
Cannot be tolerated Can be tolerated.
breakdown
Investment Very high Low.
Production
Very simple. Complex.
planning
Space usage Excellent. Not good.
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 Systematic layout planning
 The preference information is coded into six categories associated with the five
vowels, A, E, I, O, and U, plus the letter X.
 As shown in table below, the vowels match the first letter of the closeness rating
for locating two departments next to each other.

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 Systematic layout planning

 The preferences are often indicated on a grid developed by Robert Muther, known as
Muther’s grid.
 Each diamond shaped cell in the chart shows the relationship between two
departments.

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 Systematic layout planning

Shipping and
Locker room Offices Stockroom
receiving
Offices Shipping and
receiving
Tool room
Stockroom Tool room Production Production Locker room

(a) (b)
Relationship diagram
 The information from Muther’s grid can be used to construct a relationship
diagram (REL chart) that evaluates existing or proposed layouts.
 Figure (b) shows a revised layout and evaluates the layout with a relationship
diagram.
 The relationship diagram hence obtained may be used to develop a suitable
layout.
(2) (3) (4)
Office Stock room Shipping and receiving
Tool room (1) (5)
(6) Production Locker room
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 Layout design procedure
1. Collect the detailed information about the product, process, etc., and
record the data systematically.
2. Analyze the data using various techniques of analysis.
3. Select the general flow pattern for the materials.
4. Design individual work stations.
5. Assemble the individual layout in accordance with the general flow
pattern and building facilities.
6. Coordinate the plan with the plan for handling materials.
7. Complete the plant layout. Convert the plant layout into floor plans
that is to be used for installation of equipment.

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 Software packages for facility layouts
1. Construction method – In construction method, the solution begins with an
empty layout solution and one department is added at a time. When all the
departments are added to the shop floor, the final solution is obtained.
Automated layout design programme (ALDEP) and Computerized
relationship layout planning (CORELAP) software packages utilize
construction logic.
2. Improvement method – In the improvement method, the starting point for
a solution is a feasible layout. The feasible layout may not be the best
layout. Therefore, the solution is improved progressively. CRAFT utilizes
improvement method.
3. Performance evaluation modelling – In this method, 3-D modelling
techniques is used to build model with 3-D objects of the layout and to
assess the impact of the design using parameters such as equipment and
material-handling utilization, inventory, manufacturing lead time, etc.

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 CRAFT
 CRAFT (Computerized Relative Allocation of Facilities Technique ) is a computer
based algorithm (procedure) that looks for optimal layout by making gradual
improvements to the layout.
 CRAFT utilizes the improvement method for obtaining the best layout.
 CRAFT evaluates the layout by interchanging departmental locations.

Step 1 : Provide the basic inputs

Inputs required for the CRAFT algorithm include number of departments, area of
department, number of interchangeable departments, number of fixed
departments, initial layout, frequency of movement, inter-department cost data
per unit distance, and the number of departments that do not change.

Step 2 : Computer the total cost for the initial layout

The algorithm computes the total cost incurred on the initial layout. Total cost is
computed considering frequency of inter-department flow, inter-department
distance and cost/unit distance of travel/trip. Total cost can be calculated as
below.
Total cost = Flow x Distance x Unit cost of travel

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 CRAFT
 CRAFT (Computerized Relative Allocation of Facilities Technique ) is a computer
based algorithm (procedure) that looks for optimal layout by making gradual
improvements to the layout.
 CRAFT utilizes the improvement method for obtaining the best layout.
 CRAFT evaluates the layout by interchanging departmental locations.

Step 1 : Provide the basic inputs

Inputs required for the CRAFT algorithm include number of departments, area of
department, number of interchangeable departments, number of fixed
departments, initial layout, frequency of movement, inter-department cost data
per unit distance, and the number of departments that do not change.

Step 2 : Computer the total cost for the initial layout

The algorithm computes the total cost incurred on the initial layout. Total cost is
computed considering frequency of inter-department flow, inter-department
distance and cost/unit distance of travel/trip. Total cost can be calculated as
below.
Total cost = Flow x Distance x Unit cost of travel

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 CRAFT
Step 3 : Exchanging pairs of departments
For all pairs of departments, find the decrease in the total cost if the
locations of departments are interchanged. Repeat the procedure for the
new layout until no interchange is able to reduce the total cost.

Department pair (i, j) Cost reduction

(1, 4) 250

(3, 5) 350

(2, 4) 150

(5, 6) 110

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 CRAFT

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 CRAFT

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 CRAFT

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 CRAFT

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 CRAFT

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 CORELAP
 CORELAP (Computerized Relationship Layout Planning) is a facility layout
algorithm based on construction method.
 Layout of departments/facilities are done by CORELAP algorithm based on the
relationship between the facilities.
 The step by step procedure of CORELAP algorithm is as follows.

Step 1 : Provide the basic inputs

Inputs required for the CORELAP algorithm include number of
departments, area of each department, length and width of layout, the
closeness relationship value based on Relationship chart (REL chart),
weights for REL chart and building length to width ratio.
Step 2 : Determination of placement sequence
By using REL- chart, compute Total Closeness Rating (TCR) for all the
departments. Table below shows an example of REL chart.

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 CORELAP
Dept. Closeness relationship TCR

1 E+O+l+O+U+U =5+3+4+3+2+2 19
2 5+2+5+4+4+2 22
3 3+2+2+2+3+2 14
4 4+5+2+4+2+2 19
5 3+4+2+4+6+4 23
6 2+4+3+2+6+5 22
7 2+2+2+2+4+5 17
REL Chart

 A numerical value is assigned to the closeness relationships between each

department as A = 6, E = 5, I = 4, O = 3, U = 2, and X = 1.
 Total Closeness Rating (TCR) for a department is the sum of the numerical
values assigned to the closeness relationships between the department and all
other departments. The table below shows the computation of TCR.
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 CORELAP

Step 3 : Designing of layout

Select department with highest TCR value and place it in the centre of the layout
matrix.
Check the closeness relationship of selected department with other departments.
Select the department which has maximum REL value.
Subsequent departments are then added to the layout, one at a time, based on
their level of closeness with the departments already in the layout.
The placement sequence is in the above mentioned example is 5, 6, 7, 2, 1 (or) 4,
3.

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 CORELAP

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 CORELAP

Departments added progressively

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 ALDEP
 ALDEP (Automated Layout Design Program) is a facility layout algorithm based
on construction method which builds the layout without using the existing layout.
 It builds the layout by placing the most related departments, size required and
based on the closeness rating of A, E, I, O, U, X. ALDEP algorithm assigns values
assigned to closeness ratings.
 The values assigned are, A (Absolutely essential)= 64, E(Essential)= 16,
I(Important)= 4, O(Ordinary) = 1, U(Unimportant) and X(Undesirable)= -1024.
ALDEP algorithm is as follows.

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 ALDEP
Step 1 : Provide the basic inputs
Inputs required for the ALDEP algorithm include number of departments,
area of department, length and width of the departments, closeness ratings
of various pairs of departments in the form or REL chart, number of
iterations to be performed and location and size of restricted are in the
layout if present.
Step 2 : Determination of placement sequence
The first department is selected randomly. Next the REL chart is scanned, and
a department having a high closeness rating (eg. A or E) with the already
placed department is placed in the layout. The selection process continued
until all departments are placed in the layout.
Step 3 : Determination of score of the layout
The score is the sum of REL values of various neighboring pairs of the
departments in the layout. The entire process is repeated a specified number
of times (by placing a department randomly in the layout) to check if a better
score can be achieved. The table below shows an illustrative example of
computation of total score of a layout.

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 ALDEP
Neighboring pair of
REL grade REL Value
departments
4-2 E 16
4-1 I 4
2-1 E 16
2-6 I 4
1-6 U 0
1-5 O 1
6-7 E 16
5-6 A 64
5-7 I 4
5-3 U 0
7-3 U 0
Total score 125

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 ALDEP

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 ALDEP

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 Assembly line balancing
Workstations

A C E G

B D F H
Line balancing

 In a product layout or assembly lines, machines and workers are arranged in a line
according to the operations that need to be performed to assemble or making a
particular product.
 A workstation is any location in assembly line where a given amount of work is
performed.
 To facilitate line balancing, precedence requirements are often expressed in the form
of a precedence diagram.
A C D

Start Finish

B E F

An example of precedence diagram

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 Assembly line balancing
Workstation-1 Workstation-2 Workstation-3

1 2 3

4 minutes 4 minutes 4 minutes

 If each workstation on the assembly line takes the same amount of time to
perform the work elements that have been assigned, then products will move
successively from workstation to workstation with no need for a product to wait
or a worker to be idle.
 The process of equalizing the amount of work at each workstation is called line
balancing.

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 Terms used in line balancing
Workstation-1 Workstation-2 Workstation-3

1 2 3

4 minutes 4 minutes 4 minutes

Cycle time
Production time available
Actual (desired ) cycle time 
Actual (desired ) output

Suppose a company wanted to produce 120 units in an 8-hour day. The cycle time
necessary to achieve the production quota is :-

 8 hours  60 minutes / hour 

Cycle time   4 minutes / unit
120 units

Flow time = 4 + 4 + 4 = 12 minutes

Cycle time  max 4, 4, 4  4 minutes

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 Terms used in line balancing
Workstation-1 Workstation-2 Workstation-3

1 2 3

4 minutes 4 minutes 4 minutes

Minimum number of workstations

Total task time
Number of workstations , N 
Cycle time

Efficiency of assembly of assembly line

 Line efficiency is the ratio of total station time to the product of cycle time
and the number of workstations.

Total task time

Efficiency 
Cycle time  Number of workstations

444 12
In the above example, line efficiency    100%
43 43

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 Steps in line balancing
Step: 1 Define tasks

Step: 2 Identify precedence requirements

Step: 3 Find out the number of workstations

Step: 4 Selection of the heuristic

Step: 5 Determine efficiencies

Step: 6 Rebalancing of assembly line

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 Methods of line balancing
 Several heuristic solution techniques have been developed to solve line
balancing problems.
 Heuristic approach uses thumb rules and adopt logical analysis, common
sense and past experience to solve problems.
 Longest Operational Time (LOT) method and Rank Positional methods are
discussed below.

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 Longest Operational Time (LOT) method
 Longest task time heuristic adds tasks to work station one at a time in the order of
task precedence.
 If there is choice of multiple tasks, longest task is added.
 Tasks with shorter times are then saved for fine-tuning the solution.

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Longest Operational Time (LOT) method

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Longest Operational Time (LOT) method

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Longest Operational Time (LOT) method

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Longest Operational Time (LOT) method

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Longest Operational Time (LOT) method

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 Longest Operational Time (LOT) method
Workstation 1 Workstation 3
Task A Task F D E Finished product
Raw material

Task C B Task G H
Workstation 2 Workstation 4
Suggested layout

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 Rank positional weight method

1. Develop the network diagram.

2. Determine the rank positional weight for each task. The rank positional
weight of any task is the sum of the task times of all tasks on all paths from
the task to the completion of the product.
3. Rank the work elements based on the positional weight. Work element with
highest positional weight is ranked first.
4. Assign work elements to the work stations, where the elements of highest
positional weight and rank, are first assigned without violating time or any
precedence constraints.
5. Similarly other tasks are assigned to the successive workstations.

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 Rank positional weight method

1. Develop the network diagram.

2. Determine the rank positional weight for each task. The rank positional
weight of any task is the sum of the task times of all tasks on all paths from
the task to the completion of the product.
3. Rank the work elements based on the positional weight. Work element with
highest positional weight is ranked first.
4. Assign work elements to the work stations, where the elements of highest
positional weight and rank, are first assigned without violating time or any
precedence constraints.
5. Similarly other tasks are assigned to the successive workstations.

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Rank positional weight method

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Rank positional weight method

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Rank positional weight method

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Rank positional weight method

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 COMSOAL
 Computer Method for Sequencing Operations for Assembly Line (COMSOAL) is a
tool used for line balancing problems.
 The COMSOAL program proceeds in the steps as follows.
1. Construct List A showing all unassigned works and the total number of elements
which precede them in the precedence diagram. An example of List A is as
below.
Number of immediate
Task Name
predecessors
1 0
2 0
3 1
4 2
5 1
6 1
2. Construct List B showing all elements which have no predecessors.

Tasks with no immediate predecessors

1
2
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 COMSOAL
3. Select at random one task from List B, and assign it to workstation. Eliminate
the selected task from the precedence diagram and List A. This may bring
changes in the in List A and List B.
4. Repeat choosing activities from the Lists B to the workstation until the total
processing time of all activities in the workstation is nearly or equal to the given
cycle time.
5. If there is an unassigned element, go to Step 1, otherwise go to Step 6.
6. Retain the current solution (sequence with tasks assigned to each station). Repeat
steps 1 through 5 to attempt to determine an improved solution having lesser
station count. If an improved solution is obtained, it should be retained.

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