9
C H A P T E R
Layout Strategy
DISCUSSION QUESTIONS
1. The six layout strategies are:
■ Fixed position or project layout
■ Process focused layout
■ Warehouse layout
■ Retail layout
■ Product focused layout
■ Office layout
2. Fixed position layouts are complicated by: limited space
at virtually all sites; at different stages of the process, different
materials are needed; and the volume of materials needed is
dynamic.
3. (a) The advantages of a process layout are:
■ It can simultaneously handle a wide variety of prod-
ucts or services, especially in terms of “batches” or
“job lots”
■ It has considerable flexibility with respect to equip-
ment and labor assignments
(b) The disadvantages of a process layout are:
■ The use of general purpose rather than special purpose
equipment tends to make the overall process some-
what less efficient
■ Orders take more time and money to move through the
system because of the difficult scheduling, setting up
the process for a wide variety of orders, and consider-
able material handling
■ Labor skill requirements tend to be high because of the
use of general purpose equipment
■ Work-in-process inventories tend to be high
4. Most organizations have some procedure for documenting
movement of their product. For instance, a hospital has doctor’s
orders indicating the tests and procedures that a patient is to un-
dergo. A machine shop has routing documents indicating the oper-
ations that an order is to follow as the product moves through the
shop. And an auto repair shop knows what repairs, parts, and labor
are used on a particular job and as a result where the job was done
and the trips made necessary.
In each of the above examples a matrix would be made show-
ing the number of trips. And the distance (or time or cost) of each
trip would be determined.
5. (a) The advantages of a product layout are:
■ The use of special purpose equipment can make the
overall process more efficient
118
■ Individual workloads can usually be made to be rela-
tively equivalent
■ It usually results in low variable cost per unit
■ It tends to keep material handling costs relatively low
■ It reduces work-in-process inventories
■ It makes training and supervision easier than with
other layout strategies
(b) The disadvantages are:
■ High volume is required because of the large invest-
ment needed to set-up the process
■ Work stoppage at any point ties up the whole operation
■ There is a lack of flexibility in handling a variety of
products or production rates
6. Preconditions for high-volume, low-variety products are:
1. volume is adequate for high equipment utilization
2. product demand is stable enough to justify high invest-
ment in specialized equipment
3. the product is standardized or approaching a phase of its
life cycle that justifies investment in specialized equipment
4. supplies of raw material and components are adequate
and of uniform quality to ensure that they will work with
the specialized equipment.
7. Three types of “work cells” are: the small work cell within a
plant, focused work center, and focused factory.
8. The advantages of work cells are:
■ Reduction in work-in-process inventory
■ Reduction in required floor space
■ Reduced raw material and finished goods inventory
■ Reduced direct labor cost
■ Heightened sense of employee participation
■ Increased utilization of equipment and machinery
■ Reduced investment in machinery and equipment
The disadvantages are:
■ Similar to a product layout
■ High volume is required because of the large investment
needed to set-up the process
■ There is a lack of flexibility in handling a variety of prod-
ucts or production rates
■ Requires the use of group technology
■ Requires a high level of training and flexibility on the part
of employees
■ Either considerable staff support or imaginative employees
are needed for the initial development of the work cells
 CHAPTER 9 LAYOUT STRATEGY 119

9. The requirements for a focused work center or focused fac- ACTIVE MODEL EXERCISE
tory are identification of a large family of similar products, a sta-
ble demand, and adequate volume to justify the capital investment. ACTIVE MODEL 9.1: Process Layout
10. Two major trends influencing office layout are: technology 1. What is the current total cost?
and virtual companies. $570
11. Some of the layout variables you might want to consider as 2. Assembly (A) and Machine Shop (M) have the highest degree
particularly important in an office where computer programs are to of interaction. Would it be better to swap (A) and Painting or (M)
be written are: and Painting in order to get (A) and (M) shop next to each other?
■ Ease of communication Swapping Assembly and Painting lowers the cost while
■ Provision of privacy and a quiet work environment swapping Assembly and Machine shop raises the cost.
■ Lighting—especially as it related to glare on CRT screens 3. Use the swap button one swap at a time. If the swap helps,
■ Consideration of ergonomic or human factor issues in move to the next pair. If not, hit swap to put the departments back.
equipment layout and construction What is the minimum total cost after all swaps have been tried?
The cost drops to $510.
12. Some drugstore and grocery chains now allow only limited
routes through the store. This (a) allows a high traffic volume to be 4. Look at the two data tables and use the yellow shaded column
handled more readily, and (b) forces each customer to be exposed to to put processes in rooms. What room assignments lead to the
all merchandise. These are now Internet kiosks in shopping malls. minimum cost? What is this cost?
Putting the processes in rooms 1,4,2,5,6,3 respectively
13. Retail store layout variables that a manager can manipulate
(Yellow shaded area) has a minimum total cost of $460. (Other
are:
layouts will have the same cost).
■ Overall arrangement or pattern through the store
■ The allocation of space to individual products END-OF-CHAPTER PROBLEMS
14. Each student will sketch the layout of a local supermarket. 9.1
They should observe the long aisles, power items at aisle caps, and Interstation Activity Matrix
spread of staples at corners of store (fruit/meat/dairy/bakery).
Pickup Pickup Verification
15. “Random stocking” is placing a unit (product) anywhere in a Paperwork Advising Class of Status
warehouse that is open (available) for use. This is the opposite of and Forms Station Cards and Payment
‘static’ storage where every SKU has its own allotted space. (A) (B) (C) (D)
16. Random Stocking works best with sophisticated information Paperwork/ 0 450 550 50
systems that rapidly identify items by bar codes (or other scannable Forms (A)
IDs), and place them randomly in a warehouse. That requires: (1) Advising (B) 350 0 200 0
open location, (2) accurate records, (3) efficient “picking” sequenc- Class Cards (C) 0 0 0 750
ing, (4) combining orders, and (5) minimizing distance to “pick” Verification/ 0 0 0 0
Payment (D)
high usage items.
17. Cross-docking means that units are never put in storage in
an intermediate storage facility (warehouse). Units are accurately Interstation Distance Matrix-Original Layout
labeled prior to shipment with the information needed to identify Pickup Pickup Verification
the final destination so that when they arrive at an intermediate Paperwork Advising Class of Status
warehouse or distribution point, they are immediately moved to and Forms Station Cards and Payment
(A) (B) (C) (D)
the shipping dock for transmittal to that final destination.
Paperwork/ 0 30 60 90
18. A heuristic is a “rule of thumb” method of problem solving.
Forms (A)
Line balancing heuristics include: longest task time, most follow-
Advising (B) 30 0 30 60
ing tasks, ranked positional weights, shortest task time, and least Class Cards (C) 60 30 0 30
number of following tasks. Verification/ 90 60 30 0
Payment (D)
CRITICAL THINKING EXERCISE
This discussion relates to the layout in supermarkets. What are the
Load  Distance
advantages/disadvantages of the traditional style of long aisles
with tall shelves? Are students familiar with the new “cluster” lay- A l B: 450  30  13,500
outs? Discuss how endcaps are paid for by the product distributor, A l C: 550  60  33,500
A l D: 50  90  4,500
how banking, dry cleaning, video stores, and flower shops have
B l A: 350  30  10,500
become part of the current design in upscale stores.
B l C: 200  30  6,000
C l D: 750  30  22,500
90,000

Note: Rooms are “fixed” if using the software to reach this initial answer.
120 CHAPTER 9 LAYOUT STRATEGY

Initial layout: or
Room 1 Room 2 Room 3

A B C D
W M B

Interstation Distance Matrix-Improved Layout L G D

Pickup Pickup Verification
Paperwork Advising Class of Status Room 4 Room 5 Room 6
and Forms Station Cards and Payment
(A) (B) (C) (D)
Paperwork/ 0 30 30 60 Movement-Distance Calculations
Forms (A) M l W: 125  20  2,500
Advising (B) 30 0 60 90 M l D: 75  40  3,000
Class Cards (C) 30 60 0 30 M l G: 50  20  1,000
Verification/ M l B: 60  20  1,200
Payment (D) 60 90 30 0 W l L: 75  20  1,500
D l G: 150  20  3,000
D l B: 20  20  400
Load  Distance L l G: 20  20  400
13,000  Minimum distance movement
A l B: 450  30  13,500
for both (symmetrical layouts)
A l C: 550  30  16,500
A l D: 50  60  3,000
9.3 B and C should be adjacent, because they have the most
B l A: 350  30  10,500
trips. Traffic is next heaviest between A and D, so they should be
B l C: 200  60  12,000
C l D: 750  30  22,500 adjacent. Continuing in this fashion, F should be adjacent to D and
78,000 A should be next to F, but the latter two have already been placed.
Finally, E should be placed next to F. Thus, we are left with
(a) Heuristic Solutions:
Improved layout:
B C A D F E  47,900.
or
B A C D A D F E B C  44,440.
(Note: These are not the optimal solution.)
(b) Better layout:
9.2 This matrix includes movements in both directions: A D F C B E  43,880.
M W D L G B
M — 125 75 0 50 60 9.4 Layout 1:
W — 0 75 0 0
D — 0 150 20
Refrig. Counter Sink Storage Stove
L — 20 0
(1) (2) (3) (4) (5)
G — 0
B —
Trip Matrix Distance Matrix
Here are two optimal layouts: 1 2 3 4 5 1 2 3 4 5
1 0 8 13 0 0 1 0 4 8 12 16
Room 1 Room 2 Room 3
2 5 0 3 3 8 2 4 0 4 8 12
3 3 12 0 4 0 3 8 4 0 4 8
B M W 4 3 0 0 0 5 4 12 8 4 0 4
5 0 8 4 10 0 5 16 12 8 4 0

D G L ΣΣTij × Dij = 600 with rooms fixed (504, if not fixed; 560, if the
sink is fixed in one location)
Room 4 Room 5 Room 6
 CHAPTER 9 LAYOUT STRATEGY 121

Layout 2: Trip Matrix Distance Matrix

1 2 3 4 5 1 2 3 4 5
1 0 8 13 0 0 1 0 5 8 11 13
Sink Storage 2 5 0 3 3 8 2 5 0 4 8 11
(3) (4) 3 3 12 0 4 0 3 8 4 0 4 8
4 3 0 0 0 5 4 11 8 4 0 5
5 0 8 4 10 0 5 13 11 8 5 0
Refrig. Counter Stove
(1) (2) (5) ΣΣTij × Dij = 609
(b) Layout 5
Trip Matrix Distance Matrix
Trip Matrix Distance Matrix
1 2 3 4 5 1 2 3 4 5
1 2 3 4 5 1 2 3 4 5
1 0 8 13 0 0 1 0 7 8 12 14
ref-1 0 8 13 0 0 ref-1 0 4 12 12 4
2 5 0 3 3 8 2 7 0 5 6 7
coun-2 5 0 3 3 8 coun-2 4 0 3 4 4
3 3 12 0 4 0 3 8 5 0 4 9
sink-3 3 12 0 4 0 sink-3 12 3 0 4 4
4 3 0 0 0 5 4 12 6 4 0 6
stor-4 3 0 0 0 5 stor-4 12 4 4 0 3
5 0 8 4 10 0 5 14 7 9 6 0
stov-5 0 8 4 10 0 stov-5 4 4 4 3 0

ΣΣTij × Dij = 602 (if rooms are fixed; 566 if not; and 595 if the ΣΣTij × Dij = 478
sink is fixed in one location) Solution: Refrig in Room 3 (where sink was); Counter in Room 4
9.5 Layout 3: (where storage was); Sink in Room 2 (where counter was); Storage
in Room 1 (where Refrig was); Stove in Room 5 (no change)
Refrig. Counter Sink 9.7 (a) Performance Time
(1) (2) (3) Task (in seconds) Predecessors

Storage A 20 None
(4) B 30 A
C 15 A
D 15 A
Stove
E 10 B,C
(5)
F 30 D,E

Trip Matrix Distance Matrix

Station 2
1 2 3 4 5 1 2 3 4 5 Station 4 Station
1 0 8 13 0 0 1 0 4 8 12 14 B30 5
A20
2 5 0 3 3 8 2 4 0 4 8 10 E10
3 3 12 0 4 0 3 8 4 0 2 8 C15
Station F30
4 3 0 0 0 5 4 12 8 2 0 4 1
5 0 8 4 10 0 5 14 10 8 4 0 Station 3
D15
ΣΣTij × Dij = 560 (if rooms are fixed)
 
9.6 (a) Layout 4:
( b) cycle time =  40 hr.  60 min 60 sec.
 4,800 units  hr. min .( )( )
Counter Sink Storage = 30 sec. per unit
(2) (3) (4) (c) t/CT  120/30  4 stations

Refrig. Stove
(d) The assembly line balance for a cycle time of 30 seconds
(1) (5) requires five stations, as shown below and in part (a)
above.
Time Time Left Ready
Station Task (sec.) (sec.) Tasks
A
1 A 20 10 B, C, D
2 B 30 C, D
3 C 15 15 D, E
D 15 E
4 E 10 20 F
5 F 30 None
122 CHAPTER 9 LAYOUT STRATEGY

∑t (b) Station 1 gets A, G, and B, and has 0.5 minutes left over.
(e) Efficiency =
(No. Stations)(Cycle time) Station 2 gets C, D, and E with no time left over. Station
120 120 3 gets F, H, I, and J, and has 0.5 minutes left over. Im-
= = = .8 = 80% provements in efficiency would seem impossible. The
(5)(30) 150
times are in 0.5 minute increments, and can’t be sub-di-
vided to achieve exact balance.
9.8 Performance Time Task Must Follow (c) If stations 1 and 3 each had 0.5 minute more work to do,
Task (in minutes) This Task the line would be 100% efficient; perhaps support tasks
A 4 — could be assigned to them.
B 7 — Time Time left Ready
C 6 A, B Station Task (minutes) (minutes) Tasks
D 5 C
E 6 D 1 A 5 5 B, G
F 7 E G 3 2 B
G 8 E B 1.5 0.5 C, E
H 6 F, G 2 C 3 7 E, D
49 D 4 3 E
E 3 0 F
3 F 2 8 H
480 minutes H 3.5 4.5 I
Cycle time = = 9.6 minutes I 2 2.5 J
50 units
J 2 0.5
∑ ti 49
Minimum number = = = 5.1 = 6 stations
of stations cycle time 9.6
Summary Statistics
Cycle time 10 minutes
Station 2 Time allocated (cyc  sta) 30 minutes/cycle
(7) Time needed (sum task) 29 minutes/unit
B Idle time (allocated-needed) 1 minute/cycle
Efficiency (needed/allocated) 96.67%
Balance delay (1-efficiency) 3.333%
Station 1 Station 4 Station 5 Station 7 Station 8 Min (theoretical) # of stations 3
(4) (5) (6) (7) (6)
A D E F H
9.10 Performance Time Task Must Follow
Task (in minutes) This Task

(6) (8) A 1 —
C G B 3 A
Station 3 Station 6 C 2 B
D 4 B
E 1 C, D
F 3 A
49 minutes G 2 F
Efficiency = = 0.638 H 5 G
8 stations × 9.6 minutes * I 1 E, H
or J 3 I
Efficiency63.8% 25
* Longest operation time
9.9 (a)

Station 1
Station 3
A5 F2

E3 H3.5 I2 J2
B1.5
Station 2

G3 C3 D4
 CHAPTER 9 LAYOUT STRATEGY 123

400 minutes
Cycle time = (1) Station 3 (2)
60 units B H
= 6.67 minutes unit
(1)
∑ ti 25 A (1)
(1)
Minimum number of stations = = I
cycle time 6.67 D
(2)
= 3.75 or 4 workstations C
Station 2
Note: Four stations with a 7-minute cycle time is possible. Station 1 (3) (1)
However, efficiency becomes E G
25 Station 5
= 89.3% (1)
4×7 F Station 4
and production drops to 57 from the required 60 units. One
five-station solution (there are multiple answers) is: 13 minutes
Efficiency = = 0.78
5 stations × 3.33 minutes
Station 2 (2)
Station 5 or Efficiency  78%. Multiple layouts with this efficiency
C
(1) (3) (1) (1) (3)
exist.
A B E I J 9.12 (a) Resolving Problem 9.11 with a production time of 300
(4) minutes per day:
D Station 3
300 minutes
Cycle time =
60 units
Station 1 (3) (2) (5) = 5 minutes unit
F G H ∑ ti 13
Station 4 Minimum number of stations = =
cycle time 5
Theoretical: = 2.6 or 3 workstations
25 minutes
Efficiency = = 0.749 = 75% (1) (2)
5 stations × 6.67 minutes B H
Actual: (1)
25 minutes A (1) (1)
Efficiency = = 0.837 = 84% D I
5 stations × 6.00 minutes
(2)
C
9.11 Performance Time Task Must Follow Station 1 (3) (1)
Task (in minutes) This Task Station 2 E G
Station 3
A 1 —
(1)
B 1 A
F
C 2 A
D 1 C
E 3 C 13 minutes
Efficiency = = 0.867
F 1 C 3 stations × 5 minutes
G 1 D, E, F
H 2 B
or Efficiency  86.7%. Multiple layouts with this effi-
I 1 G, H ciency exist.
13 (b) Resolving Problem 9.11 with a production time of 400
minutes per day:
400 minutes
Cycle time =
60 units
= 6.67 minutes unit
∑ ti 13
Minimum number of stations = =
cycle time 6.675
= 1.95 or 2 workstations
124 CHAPTER 9 LAYOUT STRATEGY

(1) (2) 1.8 minutes

B H Efficiency = = 0.90
0.5 minutes × 4 stations
(1) Station 3
A (1) or
(1)
D I Efficiency  90%
(2) 9.15 Resolving Problem 9.14 with demand of 4,500:
C
(3) Station 2 5 hours × 5 days × 60 minutes
Station 1 E
(1) Cycle time =
G 4, 500 units
= 0.333 minutes unit
(1)
F Minimum number = ∑ ti 1.8
=
of stations cycle time 0.33
13 minutes = 5.45 or 6 workstations
Efficiency = = 0.649
3 stations × 6.67 minutes
or Efficiency  64.9%. Multiple layouts with this efficiency E (.1)
exist.
F (.2) K (.2) L (.2)
operating time A (.1) D (.2)
9.13 Output = B (.1) Station 2
CT C (.1) J (.1) M (.1)
min. cycle time  3 minutes (Activity E time) Station 4 Station 5 Station 6
375 G (.1)
output = = 125 H (.1)
3 Station 1

Performance Time Task Must Follow I (.2)

9.14
Task (in minutes) This Task Station 3
A 0.1 —
B 0.1 A 1.8 minutes
C 0.1 B Efficiency = = 0.909
D 0.2 B 0.33 minutes × 6 stations
E 0.1 B or Efficiency  90.9%.
F 0.2 C, D, E
G 0.1 A 9.16 Performance Time Task Must Follow
H 0.1 G Task (in minutes) This Task
I 0.2 H A 5 —
J 0.1 I B 3 A
K 0.2 F C 4 B
L 0.2 J, K D 3 B
M 0.1 L E 6 C
1.8 F 1 C
G 4 D, E, F
5 hours × 5 days × 60 minutes hours H 2 G
Cycle time = 28
3,000 bottles
1, 500 ∑ ti
= = 0.5 minutes bottle
3, 000 Minimum number of stations =
cycle time
∑ ti 1.8
Minimum number = = 28
of stations cycle time 0.5 = = 4 workstations
7
= 3.6 or 4 workstations The work activities may be grouped, however, into no
fewer than five workstations without violating precedence
Station 3 requirements.
(0.1)
E (4) (6)
Station 4
(0.2) (0.1) C E
(0.1) (0.1) (0.2) (0.2) (0.2)
L M Station 4
A B D F K
Station 1
(0.1) (5) (3) (1) (4) (2)
(0.1) J B Station 3 F G H
A
C (0.2)
Station 5
I
(0.1) (0.1) (3)
Station 1 G H Station 2 D
Station 2
 CHAPTER 9 LAYOUT STRATEGY 125

28 28 (f) idle time  time allocated per unittime needed per

Efficiency = = = 0.80 unit
5×7 35
 6050
or
Efficiency  80%  10 min./cycle
Several other balances are also possible. One of them is to (g) Best assignment is shown in part (a) with the efficiency
place A alone, tasks B and C together, D and F together, E shown in part (e) (i.e., 83.33%)
by itself, and G and H together. 9.18 There are three alternatives:
9.17 The assembly-line activities are: Alternative 1 Alternative 2 Alternative 3
Station Tasks Tasks Tasks
Time Ready Time Station
Task (in minutes) Predecessors Tasks Left Assignment 1 A, B, F A, B A, F, G
2 C, D C, D H, B
A 3 None A, B 1 1
3 E F, G C, D
B 6 None C, D, E 1
4 G, H E E
C 7 A D, E, F 3 2
5 I H, I I
D 5 A, B 3
E 2 B F, G, H, I 3 3 Each alternative has an efficiency of 86.67%.
F 4 C 4
G 5 F J, H, I, K 2 4 OT 480
CT = : implies 3 = ; so output = 160
H 7 D, E 5 Demand output
I 1 H K, J 2 5
J 6 E 6 9.19 Note: This problem does not have a computer logo next to
K 4 G, I, J 0 6 it, but it is possible for students to manipulate the input so that
50 POM for Windows can solve the problem.
(a) One possible layout is:
(a, g)

A3 C7 F4 G5 History Eye
10 minutes 5 minutes
Station 2 Station 4
Paramedic #1
Station 1 15 minutes

D5
B6 Blood Measurements
Station 3 K4 8 minutes 7 minutes
H7 I1
Paramedic #2
Station 5 15 minutes
Station 6
E2
J6 Psychological
Medical Exam
Exam
16 minutes 12 minutes
Paramedic #3 Doctor #1
16 minutes 12 minutes
 24 hr.   60 min. 
(b)    = 15 min.
 96 units   hr. 
 1unit   60 min.   24 hr.  Exit
(c)      144 units per day. 10 minutes
 10 min   hr.   day 
Doctor #2
50 min. per unit 10 minutes
(d) = 5 stations
10 min.per cycle
time needed per unit The throughput is 3.75 patients per hour.
(e) efficiency 
time allocated per unit (b) The bottleneck is at the Medical Exam Station—16
total task time minutes

(cycle time) (number of stations)
50

(10)(6)
50

60
 .8333, or 83.33%
126 CHAPTER 9 LAYOUT STRATEGY

(c) If one more MD and one more paramedic are added, its Time needed (sum task)  1462.00; Efficiency  78.10%;
is possible to increase the throughput to at least five per Idle time (alloc-needed)  410.00 seconds per cycle
hour with this simple layout:
Williams Bicycle Co.
Longest operation time Cycle time  144 seconds
Eye Station Task Time Time left Ready tasks
5 minutes 1 K3 60 84 J3, K4, K9, J1, J2
History
J1 66 18 J3, K4, K9, J2
10 minutes Measurements
J3 3 15 K4, K9, J2, F7
Paramedic #1 7 minutes 2 K9 27 117 K4, J2, F7, G5
Paramedic #2 G5 29 88 K4, J2, F7
K4 24 64 J2, F7, G4
J2 22 42 F7, G4, F3, F4
Medical Exam F3 32 10 F7, G4, F4, E2, E3
3 E3 109 35 F7, G4, F4, E2
16 minutes F7 21 14 G4, F4, E2, C1
Blood Paramedic #4 4 F4 92 52 G4, E2, C1, D6
E2 18 34 G4, C1, D6
8 minutes 5 G4 79 65 C1, D6, F9
Paramedic #3 Medical Exam D6 53 12 C1, F9, D8, D9
16 minutes 6 F9 126 18 C1, D8, D9, D7
Doctor #1 7 C1 78 66 D8, D9, D7, B5
D9 37 29 D8, D7, B5
8 B5 108 36 D8, D7, A1, A2
9 D8 78 66 D7, A1, A2
Psychological
Exit A1 52 14 D7, A2
Exam
12 minutes 10 minutes 10 D7 72 72 A2, B3
Doctor #2 Doctor #3 A2 72 0 B3
12 minutes 10 minutes 11 B3 72 72 B7
B7 18 54 A3
12 A3 114 30
The bottlenecks are now the two stations, psychologi-
cal exam and eye/measurements, taking 12 minutes. Time allocated (cyc  sta)  1728.00; Min (theoretical) # of stations  11
9.20 (a) Using a 40-hour week: Time needed (sum task)  1462.00; Efficiency  84.61%;
Idle time (alloc-needed)  266.00 seconds per cycle
Williams Bicycle Co.
Fewest following tasks Cycle time  144 seconds Williams Bicycle Co.
Most following tasks Cycle time  144 seconds
Station Task Time Time left Ready tasks
Station Task Time Time left Ready tasks
1 J3 3 141 K3, F7
F7 21 120 K3, C1 1 K3 60 84 J3, K4, K9, J1, J2
C1 78 42 K3, B5 J2 22 62 J3, K4, K9, J1, F3, F4
2 B5 108 36 K3, A1, A2 J3 3 59 K4, K9, J1, F3, F4, F7
3 A2 72 72 K3, A1 K9 27 32 K4, J1, F3, F4, F7
A1 52 20 K3 F3 32 0 K4, J1, F4, F7, E3
4 K3 60 84 K4, K9, J1, J2 2 F7 21 123 K4, J1, F4, E3, C1
K4 24 60 K9, J1, J2 K4 24 99 J1, F4, E3, C1, G4
K9 27 33 J1, J2, G4 J1 66 33 F4, E3, C1, G4, G5
J2 22 11 J1, G4, F3, F4 G5 29 4 F4, E3, C1, G4, E2
5 G4 79 65 J1, F3, F4, F9 3 F4 92 52 E3, C1, G4, E2, D6
F3 32 33 J1, F4, F9, E3 E2 18 34 E3, C1, G4, D6
6 F9 126 18 J1, F4, E3 4 C1 78 66 E3, G4, D6, B5
7 E3 109 35 J1, F4 D6 53 13 E3, G4, B5, D9
8 J1 66 78 F4, G5 5 E3 109 35 G4, B5, D9, D8
G5 29 49 F4, E2 6 G4 79 65 B5, D9, D8, F9
E2 18 31 F4, D7 D9 37 28 B5, D8, F9
9 D7 72 72 F4 7 F9 126 18 B5, D8, D7
10 F4 92 52 D6 8 B5 108 36 D8, D7, A1, A2
11 D6 53 91 D8, D9 9 D8 78 66 D7, A1, A2
D8 78 13 D9 A1 52 14 D7, A2
12 D9 37 107 B3 10 D7 72 72 A2, B3
B3 72 35 B7 B3 72 0 A2, B7
B7 18 17 A3 11 B7 18 126 A2, A3
13 A3 114 30 A2 72 54 A3
12 A3 114 30
Time allocated (cyc  sta)  1872.00; Min (theoretical) # of
stations  11 Time allocated (cyc  sta)  1728.00; Min (theoretical) # of stations  11
Time needed (sum task)  1462.00; Efficiency  84.61%;
Idle time (alloc-needed)  266.00 seconds per cycle
 CHAPTER 9 LAYOUT STRATEGY 127

Williams Bicycle Co. Summary:

Ranked positional weight Cycle time  144 seconds
Number of
Station Task Time Time left Ready tasks Algorithm Workstations Efficiency
1 K3 60 84 J3, K4, K9, J1, J2 Fewest following tasks 13 78.1
J2 22 62 J3, K4, K9, J1, F3, F4 Longest operation time 12 84.6
K9 27 35 J3, K4, J1, F3, F4 Most following tasks 12 84.6
J3 3 32 K4, J1, F3, F4, F7 Ranked positional weight 12 84.6
F7 21 11 K4, J1, F3, F4, C1 Shortest operation time 13 78.1
2 C1 78 66 K4, J1, F3, F4, B5
F3 32 34 K4, J1, F4, B5, E3 The longest operation time, most following tasks, and
K4 24 10 J1, F4, B5, E3, G4 ranked positional weight algorithms gave equal efficiencies
3 G4 79 65 J1, F4, B5, E3, F9 of 84.61%.
4 F4 92 52 J1,B5,E3,F9,D6 (b) Using a 41-hour week:
5 E3 109 35 J1, B5, F9, D6
6 F9 126 18 J1, B5, D6 Williams Bicycle Co.
7 J1 66 78 B5, D6, G5 Fewest following tasks Cycle time  147.6 seconds
D6 53 25 B5, G5, D8, D9
8 B5 108 36 G5, D8, D9, A1, A2 Station Task Time Time left Ready tasks
G5 29 7 D8, D9, A1, A2, E2 1 J3 3 144.60 K3, F7
9 E2 18 126 D8, D9, A1, A2, D7 F7 21 123.60 K3, C1
D8 78 48 D9, A1, A2, D7 C1 78 45.60 K3, B5
D9 37 11 A1, A2, D7 2 B5 108 39.60 K3, A1, A2
10 D7 72 72 A1, A2, B3 3 A2 72 75.60 K3, A1
B3 72 0 A1, A2, B7 A1 52 23.60 K3
11 A1 52 92 A2, B7 4 K3 60 87.60 K4, K9, J1, J2
B7 18 74 A2, A3 K4 24 63.60 K9, J1, J2
A2 72 2 A3 K9 27 36.60 J1, J2, G4
12 A3 114 30 J2 22 14.60 J1, G4, F3, F4
Time allocated (cyc  sta)  1728.00; Min (theoretical) # of stations  11 5 G4 79 68.60 J1, F3, F4, F9
Time needed (sum task)  1462.00; Efficiency  84.61%; J1 66 2.60 F3, F4, F9, G5
Idle time (alloc-needed)  266.00 seconds per cycle 6 F9 126 21.60 F3, F4, G5
7 G5 29 118.60 F3, F4
Williams Bicycle Co. F4 92 26.60 F3, D6
8 D6 53 94.60 F3, D9
Shortest operation time Cycle time  144 seconds D9 37 57.60 F3
Station Task Time Time left Ready tasks F3 32 25.60 E2, E3
E2 18 7.60 E3
1 J3 3 141 K3, F7
9 E3 109 38.60 D7, D8
F7 21 120 K3, C1
10 D7 72 75.60 D8
K3 60 60 C1, K4, K9, J1, J2
11 D8 78 69.60 B3
J2 22 38 C1, K4, K9, J1, F3, F4
12 B3 72 75.60 B7
K4 24 14 C1, K9, J1, F3, F4
B7 18 57.60 A3
2 K9 27 117 C1, J1, F3, F4, G4
13 A3 114 33.60
F3 32 85 C1, J1, F4, G4, E3
J1 66 19 C1, F4, G4, E3, G5 Time allocated (cyc  sta)  1918.80; Min (theoretical) # of stations  10
3 G5 29 115 C1, F4, G4, E3, E2 Time needed (sum task)  1462.00; EFFICIENCY  76.19%;
E2 18 97 C1, F4, G4, E3 Idle time (alloc-needed)  456.80 seconds per cycle
C1 78 19 F4, G4, E3, B5
4 G4 79 65 F4, E3, B5, F9 Williams Bicycle Co.
5 F4 92 52 E3 B5, F9, D6 Longest operation time Cycle time  147.6 seconds
6 D6 53 91 E3, B5, F9, D9
D9 37 54 E3, B5, F9 Station Task Time Time left Ready tasks
7 B5 108 36 E3, F9, A1, A2 1 K3 60 87.60 J3, K4, K9, J1, J2
8 A1 52 92 E3, F9, A2 J1 66 21.60 J3, K4, K9, J2
A2 72 20 E3, F9 J3 3 18.60 K4 K9, J2, F7
9 E3 109 35 F9, D8 2 K9 27 120.60 K4, J2, F7, G5
10 D8 78 66 F9 G5 29 91.60 K4, J2, F7
11 F9 126 18 D7 K4 24 67.60 J2, F7, G4
12 D7 72 72 B3 J2 22 45.60 F7, G4, F3, F4
B3 72 0 B7 F3 32 13.60 F7, G4, F4, E2, E3
13 B7 18 126 A3 3 E3 109 38.60 F7, G4, F4, E2
A3 114 12 F7 21 17.60 G4, F4, E2, C1
Time allocated (cyc  sta)  1872.00; Min (theoretical) # of stations  11 4 F4 92 55.60 G4, E2, C1, D6
Time needed (sum task)  1462.00; EFFICIENCY  78.10%; D6 53 2.60 G4, E2, C1, D8, D9
Idle time (alloc-needed)  410.00 seconds per cycle Continued
128 CHAPTER 9 LAYOUT STRATEGY

Williams Bicycle Co. Williams Bicycle Co.

Longest operation time Cycle time  147.6 seconds Ranked positional weight Cycle time  147.6 seconds
Station Task Time Time left Ready tasks Station Task Time Time left Ready tasks
5 G4 79 68.60 E2, C1, D8, D9, F9 1 K3 60 87.60 J3, K4, K9, J1, J2
D9 37 31.60 E2, C1, D8, F9 J2 22 65.60 J3, K4, K9, J1, F3, F4
E2 18 13.60 C1, D8, F9 K9 27 38.60 J3, K4, J1, F3, F4
6 F9 126 21.60 C1, D8, D7 J3 3 35.60 K4, J1, F3, F4, F7
7 C1 78 69.60 D8, D7, B5 F7 21 14.60 K4, J1, F3, F4, C1
8 B5 108 39.60 D8, D7, A1, A2 2 C1 78 69.60 K4, J1, F3, F4, B5
9 D8 78 69.60 D7, A1, A2 F3 32 37.60 K4, J1, F4, B5, E3
A1 52 17.60 D7, A2 K4 24 13.60 J1, F4, B5, E3, G4
10 D7 72 75.60 A2, B3 3 G4 79 68.60 J1, F4, B5, E3, F9
A2 72 3.60 B3 J1 66 2.60 F4, B5, E3, F9, G5
11 B3 72 75.60 B7 4 F4 92 55.60 B5, E3, F9, G5, D6
B7 18 57.60 A3 D6 53 2.60 B5, E3, F9, G5, D9
12 A3 114 33.60 5 E3 109 38.60 B5, F9, G5, D9, D8
G5 29 9.60 B5, F9, D9, D8, E2
Time allocated (cyc  sta)  1771.20; Min (theoretical) # of stations  10 6 F9 126 21.60 B5, D9, D8, E2
Time needed (sum task)  1462.00; EFFICIENCY  82.54%; E2 18 3.60 B5, D9, D8, D7
Idle time (alloc-needed)  309.20 seconds per cycle 7 B5 108 39.60 D9, D8, D7, A1, A2
D9 37 2.60 D8, D7, A1, A2
Williams Bicycle Co. 8 D8 78 69.60 D7, A1, A2
Most following tasks Cycle time  147.6 seconds A1 52 17.60 D7, A2
9 D7 72 75.60 A2, B3
Station Task Time Time left Ready tasks
B3 72 3.60 A2, B7
1 K3 60 87.60 J3, K4, K9, J1, J2 10 B7 18 129.60 A2, A3
J2 22 65.60 J3, K4, K9, J1, F3, F4 A3 114 15.60 A2
J3 3 62.60 K4, K9, J1, F3, F4, F7 11 A2 72 75.60
K9 27 35.60 K4, J1, F3, F4, F7
F3 32 3.60 K4, J1, F4, F7, E3 Time allocated (cyc  sta)  1623.60; Min (theoretical) # of stations  10
2 F7 21 126.60 K4, J1, F4, E3, C1 Time needed (sum task)  1462.00; EFFICIENCY  90.05%;
K4 24 102.60 J1, F4, E3, C1, G4 Idle time (alloc-needed)  161.60 seconds per cycle
J1 66 36.60 F4, E3, C1, G4, G5
G5 29 7.60 F4, E3, C1, G4, E2 Williams Bicycle Co.
3 F4 92 55.60 E3, C1, G4, E2, D6 Shortest operation time Cycle time  147.6 seconds
D6 53 2.60 E3, C1, G4, E2, D9
Station Task Time Time left Ready tasks
4 C1 78 69.60 E3, G4, E2, D9, B5
E2 18 51.60 E3, G4, D9, B5 1 J3 3 144.60 K3, F7
D9 37 14.60 E3, G4, B5 F7 21 123.60 K3, C1
5 E3 109 38.60 G4, B5, D8 K3 60 63.60 C1, K4, K9, J1, J2
6 G4 79 68.60 B5, D8, F9 J2 22 41.60 C1, K4, K9, J1, F3, F4
7 F9 126 21.60 B5, D8, D7 K4 24 17.60 C1, K9, J1, F3, F4
8 B5 108 39.60 D8, D7, A1, A2 2 K9 27 120.60 C1, J1, F3, F4, G4
9 D8 78 69.60 D7, A1, A2 F3 32 88.60 C1 J1, F4, G4, E3
A1 52 17.60 D7, A2 J1 66 22.60 C1, F4, G4, E3, G5
10 D7 72 75.60 A2, B3 3 G5 29 118.60 C1, F4, G4, E3, E2
B3 72 3.60 A2, B7 E2 18 100.60 C1, F4, G4, E3
11 B7 18 129.60 A2, A3 C1 78 22.60 F4, G4, E3, B5
A2 72 57.60 A3 4 G4 79 68.60 F4, E3, B5, F9
12 A3 114 33.60 5 F4 92 55.60 E3, B5, F9, D6
D6 53 2.60 E3, B5, F9, D9
6 D9 37 110.60 E3, B5, F9
Time allocated (cyc  sta)  1771.20; Min (theoretical) # of stations  10 B5 108 2.60 E3, F9, A1, A2
Time needed (sum task)  1462.00; EFFICIENCY  82.54%; 7 A1 52 95.60 E3, F9, A2
Idle time (alloc-needed)  309.20 seconds per cycle A2 72 23.60 E3, F9
8 E3 109 38.60 F9, D8
9 D8 78 69.60 F9
10 F9 126 21.60 D7
11 D7 72 75.60 B3
B3 72 3.60 B7
12 B7 18 129.60 A3
A3 114 15.60

Time allocated (cyc  sta)  1771.20; Min (theoretical) # of stations  10

Time needed (sum task)  1462.00; EFFICIENCY  82.54%;
Idle time (alloc-needed)  309.20 seconds per cycle
 CHAPTER 9 LAYOUT STRATEGY 129

Summary: 400 minutes

(b) Cycle time = = 5 minutes / unit
Number of 80 units
Algorithm Workstations Efficiency
Minimum number = ∑ ti = 13 = 2.6 ≅ 3 stations
Fewest following tasks 13 76.2 (c) of stations
CT 5
Longest operation time 12 82.5
Most following tasks 12 82.5 (a) & (d)
Ranked positional weight 11 90.1
Shortest operation time 12 82.5 Station 4
Station 2
The ranked positional weight algorithm gave the highest (1) (1) (2) (4)
efficiency—90.05%. B D E F

SOLUTIONS TO INTERNET HOMEWORK PROBLEMS*

9.21 (1) (4) Station 3
Current layout: A C

Entrance 1 Exam I 2 Exam II 5 X-ray 4 Station 1

Lab, EKG 5 O.R. 6 R.R. 7 Casts 8 13 minutes

(e) Efficiency = = 0.65 = 65%
4 stations × 5 minutes
Patient movement  6,700 feet
Multiple layouts are possible.
Improved layout:
9.23 (a)
Entrance 1 Exam I 2 Lab, EKG 5 O.R. 6 A B C E

Exam II 3 X-ray 4 R.R. 7 Casts 8

D F
Patient movement  4,800 feet (shown in Figure 9.17 of text)
Improved layout: G H

Entrance 1 Exam I 2 Lab, EKG 5 O.R. 6

(b) There are multiple alternatives. Here is one that does not
violate any procedures.
Exam II 3 X-ray 4 Casts 8 R.R. 7
Station Tasks
Patient movement  4,700 feet
1 A, D
More improved layout (with Exam rooms swapped): 2 B, G
3 C, F
Entrance 1 Exam II 3 Lab, EKG 5 O.R. 6 4 H, E

Exam I 2 X-ray 4 Casts 8 R.R. 7 (c) Each alternative has an overall efficiency of 92.5%.

Patient movement  4,500 feet 9.24 Performance Time Task Must Follow
Task (in minutes) This Task
Note that this final solution reflects “common sense,” or the
result of one’s intuition. We simply allocate the spaces in the order A 13 —
B 4 A
in which the tasks are usually performed. We usually start at the
C 10 B
“entrance,” proceed to an examination room; from the examina-
D 10 —
tion room, proceed for either x-rays or lab tests, then (a) leave the E 6 D
facility, (b) go to get a cast put on, or (c) go for surgery. F 12 E
9.22 G 5 E
Performance Time Task Must Follow
H 6 F, G
Task (in minutes) This Task
I 7 H
A 1 — J 5 H
B 1 — K 4 I, J
C 4 A, B L 15 C, K
D 1 C 97
E 2 D
F 4 E
13

*Note to instructor: These four internet homework problems, lo-

cated at our website, www.prenhall.com/heizer, were in the previ-
ous edition of the text as: Problem 9.21 (was 9.3); 9.22 (was 9.7);
9.23 (was 9.9); and 9.24 (was 9.17).
130 CHAPTER 9 LAYOUT STRATEGY

25,200 seconds 3. Assuming the addition of one more clerk, what is the maximum
Cycle time = = 18 seconds / unit number of applications the process can handle?
1, 400 units
If activities 1, 2, and 3 can be successfully combined to form a new
∑ ti activity taking 105 seconds that is accomplished by the same three
Minimum number of stations = people, the process time of the new combined task is 35 seconds.
cycle time So without adding any personnel, as was done above, it is possible
97 to process up to 90 renewals per hour.
= = 5.4 or 6 workstations
18 Creative rearranging and combining of tasks can produce
other cycle times. The only limitations are: (1) the tasks must be
performed in a logical sequence, and (2) the facilities and equip-
Station 1 Station 6 ment must be available for the tasks.
(13) (4) (10) (15) 4. How would you suggest modifying the process in order to ac-
A B C L
commodate 120 applications per hour?
This question requires trial-and-error creation of proposed solu-
Station 4 (7) tions. Presented below are proposed solutions that each result in
(12)
F I the capacity for handling 120 renewals per hour. Solution A was
Station 2
achieved by simply expanding the number of stations performing
(10) (6) (6) (4) each job so that at least 120 licenses are processed per hour. Solu-
D E Station 3 H Station 5 K tion B combines jobs such that the process time at most stations
equals the bottleneck process time (or cycle time). Although this
(5) (5) reduced the number of employees from 8 to 7, one of these is an
G J additional photographer with another camera. So the total costs is
increased. Solutions C and D produce the same costs per renewal,
$0.867, and both employ 7 persons.
Total idle time  11 seconds Are solutions C and D equal? Some managers would argue
that the five people who each perform jobs 1, 2, and 3 have an
97 seconds
Efficiency   0.898 enriched job. Others would argue that enlarging a job is not the
6 stations × 18 seconds same as enriching a job. How difficult will it be to monitor the
or performance of each of these five people working independently
Efficiency  89.8% as a line process? How difficult will it be to teach each of the five
employees all four jobs rather than teaching each person one or
CASE STUDY two jobs. This is where the quantitative analysis ends and judg-
ment must be exercised.
STATE AUTOMOBILE LICENSE RENEWALS
1. What is the maximum number of applications per hour that Proposed Solutions—120 Renewals/Hour:
can be handled by the present configuration of the process? Solution A
The process times and activities for each activity are identical be- Maximum
cause all have only one station. The maximum output of renewals Time Process Output
will be limited to 60 renewals/hour (3600 sec/hr  60 sec/renewal) Job (sec) Station Time (sec) (per hr) Cost/hour
by the bottleneck or longest process time. 1 15 1 15 240 $12.00
If each step in the process is handled by one person, it can be 2 30 1 30 120* $12.00
seen that each station will be waiting for the clerk who checks the 3 60 2 30 120* $24.00
file for violations. This is because this step takes the longest 4 40 2 20 180 $24.00
(60 seconds). The task of “check file” will be the bottleneck, and a 5 20 1 20 180 16.00  10.00
line will build up in front of this station. The clerk and expensive 6 30 1 30 120* 18.00
equipment for the photographic step will be idle approximately Cost per renewal  $116.00  120  $0.967 $116.00
1/3 of the time (20 seconds  60 seconds).
* Indicates a bottleneck step.
A balanced line process is one in which the process times of
each station are the same. An obvious way to balance the line is to
add stations to the bottleneck activity. However, this may not be Solution B
the most efficient solution. In some cases, it is possible to combine Maximum
activities creatively and make more productive use of workers. Time Process Output
2. How many applications can be processed per hour if a second Job (sec) Station Time (sec) (per hr) Cost/hour
clerk is added to check for violations? 1  2  3 105 4 26.25 137.14 $48.00
If a second file clerk is added to the activity of checking files, the 45 60 2 30 120* 32.00  20.00
process time for this activity is reduced to 30 sec/location 6 30 1 30 120* 18.00
(60 seconds/2 locations). The bottleneck now becomes the eye Cost per renewal  $118.00  120  $0.983 $118.00
test. The maximum output of renewals becomes 90 renewals/hour
* Indicates a bottleneck step.
(3600 sec/hour  40 sec/renewal).
 CHAPTER 9 LAYOUT STRATEGY 131

Solution C per hour, and (4) the high quality of staff members. The institute
Maximum personnel at the time of move were three top managers, two ath-
Time Process Output letic trainers, three physical therapists, one health fitness instructor,
Job (sec) Station Time (sec) (per hr) Cost/hour four support aides, three receptionist/secretaries, and two business
1234 145 5 29 124.1 $60.00 office personnel for a total of 18 people.
5 20 1 20 180 16.00  10.00 At the time of the planned move, the number of members for the
6 30 1 30 120* 18.00 fitness division was forecasted as 600 with a throughput of about
Cost per renewal  $104.00  120  $0.867 $104.00 150 per day. The fitness division was to operate from 6:30 AM
to 9:00 PM Monday through Friday, and 8:00 AM to 1:00 PM on
*Indicates a bottleneck step. Saturday.

Solution D Routing: The routing of clients follow three major processes:

Maximum ■ Physical therapy evaluation, therapeutic exercises, and
Time Process Output manual therapy
Job (sec) Station Time (sec) (per hr) Cost/hour
■ Warm-up, stretching, strength-building exercise, aerobic
14 55 2 27.5 130 24.00 exercise, and cooldown
2 30 1 30 120* 12.00 ■ Warm-up, stretching, cardiovascular exercise, strength-
3 60 2 30 120* 24.00 building exercise, and cooldown
5 20 1 20 180 16.00  10.00
6 0 1 30 120* 18.00 Timing: The PBISM had been growing rapidly and was to move
Cost per renewal  $104.00  120  $0.867 $104.00 from its initial quarters to the fourth floor of a building near the
Community Hospital and a set of medical complexes. No further
*Indicates a bottleneck step.
expansion was anticipated for five years.

VIDEO CASE STUDY Initial Layout Design: The vacant space at the new location was
to comprise the following major areas:
FACILITY LAYOUT AT WHEELED COACH
■ A row of rooms for physical therapy evaluations and
This case study works best if the 7 minute video, made specifically
treatment
for this text, is shown and accompanies the written case. Alterna-
■ Physician’s examining room
tively, the student can view a 2 minute edited version of the video
■ A fitness section for strength training
on the CD-ROM in the back of the text.
■ Therapeutic exercise and testing room
1. Assembly line balancing models, process layout to-from ■ Back evaluation and treatment room
charts, and factory layout software can all be used in this case. ■ Wet room and hydrotherapy stations

2. The two major plants are across a busy street from one an- ■ Graded exercise testing and blood chemistry room

other, which has turned out to be detrimental to smooth product ■ Business office

flow. Likewise, to reach the warehouse, one must leave the main ■ Glassed-in office for athletic trainers and exercise

structure. The more preassembly of modular components in work physiologists

cells prior to the final 7 day assembly line would help. ■ Locker rooms

3. The standard models for efficiency apply here. The firm doesn’t
want too much idle time at any workstation, and must balance tasks
very carefully.
INTERNET CASE STUDIES*
1 THE PALM BEACH INSTITUTE
OF SPORTS MEDICINE
People/Services: The clients served will be people from adoles-
cents to the elderly who wish to achieve a higher level of health
and fitness, people who maintain a lifelong interest in athletic
participation, and world-class athletes. The services provided are
outlined.
Quality and Quantity of Services: Quality is promoted by (1) a
network of specialized health care providers outside the Institute,
(2) the high staff/client client ratio, (3) the relatively low throughput
■ Waiting rooms
■ Conference room
The ideal layout was based on a central core of reception areas,
business office, elevator, lockers, and glass-walled office for mon-
itoring the entire fitness area, as shown in Figure 1, given on the
next page. The executive office was designed to be separated from
the operational activities of the Institute.
Lay out the arrangement of equipment within the floor plan:
From the figure, the detailed layout was developed as shown in
Figure 2. The general flow of members is from warm-up equip-
ment to stretch areas, to strength development. However, aerobic
equipment is also used for warm-up, so that there is an overlap-
ping of long-term and short-term use of the same equipment. Note
the overhead TV sets in both the fitness area and the back treat-
ment area. In addition, music was usually played in both areas
under the volume control of the members in the areas.

* These case studies may be found at our website at www.prenhall.com/heizer.

132 CHAPTER 9 LAYOUT STRATEGY

Figure 1
Office Office Conference Exam Office
Room Room

Kitchen
Exam
Treatment Business Women’s Men’s Locker
Room
Room Office Locker Room
Room
5⬘ 5⬘

13⬘ 5⬘ 10⬘ 5⬘ 13⬘

9⬘ 10⬘ 9⬘
86⬘

Reception
Waiting
5⬘ Office
Room 5⬘

Isokinetics 5⬘ Institute 5⬘
Equipment

Treatment
Areas

84⬘
Palm Beach Institute of Sports Medicine, Inc.

Figure 2
1 2 1
Office Office Conference Exam Office
Room Room
13
Kitchen
Exam
Wet Business Women’s Men’s Locker TV
Room
Room Office Locker Room 12
Back
Room
15 5⬘ 5⬘ 6 Room

13⬘ 5⬘ 10⬘ 5⬘ 13⬘ 10A

10B

86⬘ 9⬘ 10⬘ 9⬘

Flexibility
Reception Area
Waiting 4
Room 5⬘ Office 2
5⬘
3
9 9 9 9 9 9 9 9 3
11 5' 5⬘
B B B B B B B B
Isokinetics
Institute
Equipment
Treatment 5
9A 9A 19 9A 9A
Areas
5 TV
9A 9A

84⬘
Palm Beach Institute of Sports Medicine, Inc.

1—Treadmill 8—Precor Rower 14—Stair Master

2—Airdyne Bike 9A—Keiser (lower body) 15—Underwater Treadmill
3—Life Cycle 10A—Eagle Back Extension 16—Quinton 3000 Stress Test Unit
4—Bodyguard Bike 10B—Eagle Abdominal Flexion 17—Abdominal Slant Board
5—Versa Climber 11—Orthotron 18—Bench
6—Nordic-Trak 12—Cybex Back Extension 19—Dumbbell Rack
7—Precor Skier 13—Cybex Back Rotation
 CHAPTER 9 LAYOUT STRATEGY 133

Concluding comments by management: The first two years Number of Minimum

of operations were essentially an experimental and transition Rule Stations Slack
period. Our goal was to make the fitness division self-supporting
Longest operation time 13 0.16
so that the facilities needed by the physical therapy division would Most following tasks 13 0.00
not be a drain on physical therapy operations. This way, charges Ranked positional weight 13 0.11
for physical therapy could be kept reasonable and customary and Shortest operation time 14 Irrelevant
yet a broad array of modern equipment would be available. As it Fewest following tasks 13 0.19
turned out, the fitness center was very successful because of the
associated services, available trainers, location, and relationships The balance given by fewest following tasks is best, because
between the division and the local schools and universities. After it has the fewest stations and the cycle time can be reduced by the
two years, the membership services were expanded and the largest amount of time. An alternative is to see what happens for
membership fees significantly increased. 41 hours (even though the case says not to). The following table
During this period, an underwater treadmill was added. The back shows results.
equipment did not work out so it was removed.
Number of Minimum
Also, during this period a number of top world tennis players Rule Stations Slack
came for treatment of injuries and rehabilitation. This led to the
Institute’s becoming the Approved Sports Medicine Institute of Longest operation time 12 Irrelevant
Most following tasks 12 Irrelevant
the Women’s International Tennis Association with worldwide
Ranked positional weight 11 0.03
responsibilities.
Shortest operation time 12 Irrelevant
In the transition period, patterns of movement of clients were Fewest following tasks 13 Irrelevant
noted. Use of the two overhead TVs and conflicts with channel
tuning and music on the audio system were also noted. Demand Clearly, the ranked positional weight balance leads to the
for certain types of aerobic equipment required more units so that fewest number of stations. Furthermore, the cycle time could be
the space opened up by removal of the back equipment was fortu- reduced (by 0.03) or the production rate could be increased by a
itous. The present layout shows how these problems were dealt small amount without changing the number of stations.
with and indicates the need for moving to an even larger area if
3 W & G BEER DISTRIBUTORSHIP
a world-class center is to be maintained.
It was decided to put almost all aerobic equipment such as In this case, the same distance measures are used for three analyses.
Life Cycles, Nordic Ski Tracks, rowing machines, stairwalker, and The distances are measured as right-angle distances from center of
other biking devices in the former back equipment room. These room to center of room.
items were used for relatively long-term periods of 30 minutes or The first analysis is of sales data. Running these data gives the an-
more. Therefore, members using short-term equipment would not swer that the products should be stored in order of sales; that is,
be milling about. A few of these items used for warm-up were the product with the most sales should be closest to the dock. This
kept with the strength equipment. This arrangement also reduced is, of course, intuitive; you do not need a computer analysis to get
the traffic of staff members who frequently check the pulse rate of this result.
long-term equipment users. TV turned out to be a better means of Using the number of trips rather than sales illustrates that the
relieving boredom in the aerobic room, so the TV was removed previous answer, while intuitive, may be based on the wrong data.
from the strength room and the music system retained there. Using sales slips, instead, gives some idea of the interaction
Most members warm-up before stretching and exercising between product areas. However, this is not perfect information.
so that a few bikes were retained near the stretching area, as may For example, if a sales slip contained all seven products, the order
be seen in the figure. Because of the movement of members would not matter. The imperfection of the data provides an oppor-
from warm-up to stretch to lower-body strength-building to upper- tunity for discussion about exactly how the question should be
body strength-building, an assembly line or client-based layout is answered and what data should be collected.
logical. 4 DES MOINES NATIONAL BANK
Expansion of the physical therapy and rehabilitation treatment
This case study is based on an analysis at the Federal Reserve Bank
includes upper extremity, torso, isokinetic, and lower extremity
in El Paso. During the analysis, the author recognized the need for
equipment needs. This equipment is located near the physical ther-
a multiple-criteria facility layout procedure. An improved (at least
apy rooms but also contiguous to the fitness equipment.
for this application) multiple-criteria model was developed during
2 MICROFIX INC. this analysis and can be found in Timothy L. Urban, “A Multiple
Criteria Model for the Facilities Layout Problem,” International
The initial analysis is very straightforward. The line is balanced
Journal of Production Research, 25, no. 12: 1805–1812.
using the data exactly as presented in the case study. The theoreti-
The purpose of this case is to illustrate situations in which
cal minimum number of stations is 11. However, none of the rules
the operations do not neatly fit into a quantitative (minimization
we’ve looked at thus far leads to 11 stations. The following table
of workflow, frequently used in manufacturing situations) or
shows the answers given by the different rules.
a qualitative (use of closeness ratings, frequently used in service
134 CHAPTER 9 LAYOUT STRATEGY

operations) analysis. It was developed with eight departments, as the maximum work-flow between any pair of departments
this is the maximum number of departments allowed in the POM (c  250).
for Windows software. A problem of this size could be analyzed The following layout reflects the output of the software
manually, but having the student use the software will illustrate using these values. Note that the “total movement” value at the
how a larger problem can be solved and that the output of a com- bottom of the printout is a measure of the sum of the weights
puter program may not always be the “final” solution. (fij  c  rij) times the rectilinear distance traveled; it is not as
1. Develop a layout that minimizes the total work-flow. The fol- intuitive as the total movement for the purely quantitative
lowing layout reflects the output of Excel OM or POM for analysis. The use of different scores for the closeness ratings or
Windows using the average daily work-flow values provided a different weight reflecting the relative importance of the
in the table (the POM for Windows printout follows at the end work-flow and closeness ratings will give a different objective
of the case; note that the check distribution department is function value (and would likely result in a different layout).
fixed in the room with the service elevator):
Check Government Check
reconcilement checks sorting
Check Check Check
crediting reconcilement sorting
Check Returned Check
crediting checks distribution
Credit Returned Check
adjustment checks distribution
Credit
Offices
adjustment
Government
Offices
checks
4. Comment on the various layouts developed. The first layout
gives a very efficient layout for minimizing the total work-
flow movement. The only flows that do not travel between ad-
2. Develop a layout using the relationships defined by the close- jacent departments are the flows from check crediting to the
ness ratings. Excel OM and POM for Windows do not allow offices (10 units) and from check distribution to government
for negative work-flow values, so the values 5, 4, 3, 2, 1, and checks (40 units). However, because the analysis did not take
0 were used for the ratings A, E, I, O, U, and X, respectively. into consideration the closeness ratings, the layout obviously
To magnify the penalty of the undesirable ratings, a larger does a poor job of addressing those concerns. For example,
range of values could be used. Due to the small number of de- check sorting is located next to the check reconcilement area
partments, however, it will likely make little difference in this and, as stated in the case, it is desirable to keep these areas
problem. The following layout reflects the output of the soft- separate due to the noise from the sorting equipment. Also,
ware using these values: government checks and check sorting are at opposite ends of
the building even though they use the same equipment, which
needs to be kept together.
The second layout then addresses the closeness ratings, but
Check Credit Check the total work-flow travel more than doubles. This is evident
crediting adjustment reconcilement by the movement of materials from check distribution to check
sorting to check reconcilement to check crediting—these de-
partments are at opposite corners of the building.
Returned Check The third layout can be thought of as a compromise between
Offices
checks distribution the two objectives. The work-flow is not as low as the first lay-
out (an increase of about 7.5 percent) but is much better than the
second. It does not address the closeness ratings quite as well as
Check Government the second layout but does much better than the first (e.g., the
sorting checks government check department is now located next to check sort-
ing). This is a good illustration of how managers frequently need
to deal with multiple-criteria situations; we may not optimize
3. Develop a layout that considers both the work-flow and close- any of the objectives, but try to “satisfice” all of them.
ness relationships between departments. The weights used for 5. Discuss any other factors that should be considered when de-
this question were determined in the same manner as de- veloping a layout of the check processing division. Any num-
scribed in the journal article referenced above. That is, fij  ber of suggestions could be identified at this point. Some of
c  rij is the daily average work-flow between departments i the more obvious may be as follows:
and j, rij is the closeness rating for departments i and j, and c is ■ Offices may want to be placed near the windows, so a

a weight reflecting the relative importance of the work-flow corner of the building may be most suitable. Also, the view
and the closeness ratings. For this example, c was set equal to (perhaps looking out on a park as opposed to a busy street)
 CHAPTER 9 LAYOUT STRATEGY 135

may lead us to place the office areas on a particular side of
the building.
■ The location of the electrical wiring necessary for the sorting
equipment may determine the location of that department.
■ The location of restrooms, stairs, etc., may affect the place-
ment of the office areas.
■ If customers come onto the floor, aesthetic considerations
(e.g., do not expose them to the sorting equipment or mater-
ial handling) would need to be analyzed.
■ Personnel and material flow between floors (other than the
checks coming up on the service elevator) should be consid-
ered by placing those departments near the stairs or elevators.
■ It may be beneficial to have department shapes that deviate
from the 75  75 square. For example, 150  37.5 de-
partments may benefit the work-flow.
■ Historical work-flow was used for the analysis. If there are
forecasts of significant changes in work-flow or in relative
work-flow (e.g., increase in government checks but not
commercial checks), we should use the expected workflow.
■ This analysis focuses on the relative location of depart-
ments; it does not suggest how we arrange the equipment
and personnel within the individual departments. These
considerations may impact the layout, as the work may not
flow between the centers of the departments.
■ We could extend this layout analysis to the multistory case.
Perhaps this is not the best combination of departments to
be placed on the same floor.
The POM for Windows printouts for the three scenarios above
follow:

Scenario 1 Operations Layout Data Screen

Number of Departments: 8 Downtown National Bank Symmetric Distances
Flows CkSort CkRecn CkCred CkDist GovtCk Return CrdAdj Office Fix Room
CKSort 0 0 0 1 5 1 0 0 —
CkRecn 0 0 5 1 1 1 5 3 —
CkCred 0 0 0 1 1 1 5 3 —
CkDist 0 0 0 0 4 4 1 1 Room 6
GovtCk 0 0 0 0 0 1 1 2 —
Return 0 0 0 0 0 0 4 2 —
CrdAdj 0 0 0 0 0 0 0 3 —
Office 0 0 0 0 0 0 0 0 —
Distance Room 1 Room 2 Room 3 Room 4 Room 5 Room 6 Room 7 Room 8
Room 1 0 1 2 1 2 3 2 3
Room 2 1 0 1 2 1 2 3 2
Room 3 2 1 0 3 2 1 4 3
Room 4 1 2 3 0 1 2 1 2
Room 5 2 1 2 1 0 1 2 1
Room 6 3 2 1 2 1 0 3 2
Room 7 2 3 4 1 2 3 0 1
Room 8 3 2 3 2 1 2 1 0

Operations Layout Data Screen

Number of Departments: 8 Downtown National Bank Symmetric Distances
Department in Room
CkSort in Room 7
CkRecn in Room 3
CkCred in Room 1
CkDist in Room 6
GovtCk in Room 8
Return in Room 5
CrdAdj in Room 2
The total movement is 91 Office in Room 4
136 CHAPTER 9 LAYOUT STRATEGY

Scenario 2 Operations Layout Data Screen

Number of Departments: 8 Downtown National Bank Symmetric Distances
Flows CkSort CkRecn CkCred CkDist GovtCk Return CrdAdj Office Fix Room
CkSort 0 50 0 500 1,250 60 0 0 —
CkRecn 0 0 350 60 60 60 300 36 —
CkCred 0 0 0 60 60 60 300 46 —
CkDist 0 0 0 0 280 300 60 12 Room 6
GovtCk 0 0 0 0 0 12 12 24 —
Return 0 0 0 0 0 0 60 24 —
CrdAdj 0 0 0 0 0 0 0 40 —
Office 0 0 0 0 0 0 0 0 —
Distance Room 1 Room 2 Room 3 Room 4 Room 5 Room 6 Room 7 Room 8
Room 1 0 1 2 1 2 3 2 3
Room 2 1 0 1 2 1 2 3 2
Room 3 2 1 0 3 2 1 4 3
Room 4 1 2 3 0 1 2 1 2
Room 5 2 1 2 1 0 1 2 1
Room 6 3 2 1 2 1 0 3 2
Room 7 2 3 4 1 2 3 0 1
Room 8 3 2 3 2 1 2 1 0

Operations Layout Data Screen

Number of Departments: 8 Downtown National Bank Symmetric Distances
Department in Room
CkSort in Room 3
CkRecn in Room 1
CkCred in Room 4
CkDist in Room 6
GovtCk in Room 2
Return in Room 5
CrdAdj in Room 7
The total movement is 5424 Office in Room 8

Scenario 3 Operations Layout Data Screen

Number of Departments: 8 Downtown National Bank Symmetric Distances
Flows CkSort CkRecn CkCred CkDist GovtCk Return CrdAdj Office Fix Room
CkSort 0 50 0 250 0 0 0 0 —
CkRecn 0 0 50 0 0 0 0 0 —
CkCred 0 0 0 0 0 0 0 10 —
CkDist 0 0 0 0 40 60 0 0 Room 6
GovtCk 0 0 0 0 0 0 0 0 —
Return 0 0 0 0 0 0 12 0 —
CrdAdj 0 0 0 0 0 0 0 10 —
Office 0 0 0 0 0 0 0 0 —
Distance Room 1 Room 2 Room 3 Room 4 Room 5 Room 6 Room 7 Room 8
Room 1 0 1 2 1 2 3 2 3
Room 2 1 0 1 2 1 2 3 2
Room 3 2 1 0 3 2 1 4 3
Room 4 1 2 3 0 1 2 1 2
Room 5 2 1 2 1 0 1 2 1
Room 6 3 2 1 2 1 0 3 2
Room 7 2 3 4 1 2 3 0 1
Room 8 3 2 3 2 1 2 1 0

Operations Layout Data Screen

Number of Departments: 8 Downtown National Bank Symmetric Distances
Department in Room
CkSort in Room 3
CkRecn in Room 2
CkCred in Room 1
CkDist in Room 6
GovtCk in Room 8
Return in Room 5
CrdAdj in Room 4
The total movement is 532 Office in Room 7
 CHAPTER 9 LAYOUT STRATEGY 137

5 COLLIER TECHNICAL COLLEGE feet to stairs  40 feet on stairs  5 feet in corridor  30 feet in
corridor  20 feet in Room G  120 feet.
The distance table for Building One is fairly straightforward. From
The distance table for Building Two is
any room to an adjacent room is 15 feet  40 feet  15 feet  70
feet. Each intervening room adds 40 feet to distance. Thus the dis- A B C D E F G H
tance table is
A — 70 50 80 90 90 120 90
A B C D E F G H B — 80 50 90 120 90 120
C — 70 120 90 120 90
A — 70 110 150 190 230 270 310 D — 90 120 90 120
B — 70 110 150 190 230 270 E — 70 50 80
C — 70 110 150 190 230 F — 80 50
D — 70 110 150 190 G — 70
E — 70 110 150 H —
F — 70 110
G — 70
H — — 1. POM for Windows software was used to solve for the dis-
tance-minimizing configuration for each of the two building
The distance table for Building Two is more complex, due to choices. Building One, the one story shopping center, required
the stairway. From A to D, for example, is 20 feet in room A  10 194,550 feet of travel among the eight rooms. Building Two, the
feet in corridor  30 feet in corridor  20 feet in room D  80 feet. two-story lawyer’s office, required 145,050.
From Room A to Room G, in contrast, is 20 feet in Room A  5

One story building’s data:

Collier Technical College—One Story Layout

Flow Table Dept 1 Dept 2 Dept 3 Dept 4 Dept 5 Dept 6 Dept 7 Dept 8
Dept 1 0 20 5 0 0 0 10 50
Dept 2 15 0 5 0 10 0 15 30
Dept 3 25 0 0 0 0 0 5 40
Dept 4 0 30 0 0 150 60 120 100
Dept 5 0 10 0 50 0 30 180 60
Dept 6 0 5 0 100 20 0 100 30
Dept 7 0 20 10 50 90 30 0 120
Dept 8 0 20 10 60 80 20 140 0

Distance Room Room Room Room Room Room Room Room

Table A B C D E F G H
Room A 0 70 110 150 190 230 270 310
Room B 70 0 70 110 150 190 230 270
Room C 110 70 0 70 110 150 190 230
Room D 150 110 70 0 70 110 150 190
Room E 190 150 110 70 0 70 110 150
Room F 230 190 150 110 70 0 70 110
Room G 270 230 190 150 110 70 0 70
Room H 310 270 230 190 150 110 70 0

One story building’s optimal answer:

Building Rear

Room A Room B Room C Room D Room E Room F Room G Room H

Dept 3 Dept 1 Dept 2 Dept 8 Dept 7 Dept 5 Dept 4 Dept 6

Building Front
with total movement of 194,550 feet of travel.
138 CHAPTER 9 LAYOUT STRATEGY

Two story building’s data:

Collier Technical College—Two Story Layout

Flow Table Dept 1 Dept 2 Dept 3 Dept 4 Dept 5 Dept 6 Dept 7 Dept 8
Dept 1 0 20 5 0 0 0 10 50
Dept 2 15 0 5 0 10 0 15 30
Dept 3 25 0 0 0 0 0 5 40
Dept 4 0 30 0 0 150 60 120 100
Dept 5 0 10 0 50 0 30 180 60
Dept 6 0 5 0 100 20 0 100 30
Dept 7 0 20 10 50 90 30 0 120
Dept 8 0 20 10 60 80 20 140 0

Distance
Table Room A Room B Room C Room D Room E Room F Room G Room H
Room A 0 70 50 80 90 90 120 90
Room B 70 0 80 50 90 120 90 120
Room C 50 80 0 70 120 90 120 90
Room D 80 50 70 0 90 120 90 120
Room E 90 90 120 90 0 70 50 80
Room F 90 120 90 120 70 0 80 50
Room G 120 90 120 90 50 80 0 70
Room H 90 120 90 120 80 50 70 0

Two story optimal solution:

First Floor

Dept 3 Dept 1
Room B Room D

Dept 6 Dept 2
Room A Hall Room C

Second Floor

Room F Room H
Dept 5 Dept 4

Room E Room G
Dept 7 Hall Dept 8

With total movement of 145,050 feet of travel.

2. The two-story building is the choice based on the amount of
travel, and by a substantial amount.
3. There is one element of perhaps serious concern. The techni-
cal college needs to consider access for all students, including
those with mobility or health restrictions. The two-story solution,
in its current setting, lacks an elevator, which could be used to
provide necessary accommodations.