Facility

Decisions:
Layouts
The McGraw-Hill Companies, Inc., 2003

Fundamentals of Operations Management 4e The McGraw-Hill Companies, Inc., 2003 82
Objectives
Introduce the different types of facility layouts that can
be used in designing manufacturing and service
operations.
Present a methodology for designing a process-
oriented layout.
Introduce the concept of takt time and its relationship
to the output capacity of a product-oriented layout.
Identify the various steps and elements that are
involved in balancing an assembly line.
Discuss the current trends in facility layouts given
todays shorter product life cycles and the customers
increasing desire for customized products.

Fundamentals of Operations Management 4e The McGraw-Hill Companies, Inc., 2003 83
Managerial Issues
Recognizing that many factors must be considered in
choosing how to layout a facility.
Understanding the significant impact that choosing a
particular type of layout has on the firms ability to
compete in the market and its long-term success.
Developing estimates of the investment costs of time
and money associated with installing a particular
layout.
Attaining the goal of a smooth flow of material through
the process through the choice of a layout that is both
efficient and effective.


Fundamentals of Operations Management 4e The McGraw-Hill Companies, Inc., 2003 84
Types of Manufacturing Layouts
Layout Type
Process Similar operations are performed in a
common or functional area, regardless of
the product in which the parts are used.
Product
(Flow-shop layout)
Equipment/operations are located
according to the progressive steps required
to make the product.
Group Technology
(GT) or Cellular
Groups of dissimilar machines are brought
together in a work cell to perform tasks on a
family of products that share common
interests.
Fixed-Position The product, because of its size and/or
weight, remains in one location and
processes are brought to it.


Fundamentals of Operations Management 4e The McGraw-Hill Companies, Inc., 2003 85
Characteristics of a Good Layout
Exhibit 8.1

Fundamentals of Operations Management 4e The McGraw-Hill Companies, Inc., 2003 86
Product Layout
Assembly Lines
A progressive paced assembly linked by some
sort of material handling device.
Assembly Line Type Differences
Material handling devices
Line configuration
Pacing (machine or human)
Product mix
Workstation characteristic
Length of line

Fundamentals of Operations Management 4e The McGraw-Hill Companies, Inc., 2003 87
Product Layout: Key Terms
Product Interval Time
The time between products being completed
(processed through) at a single station (process
step). Also cycle time or takt time.
Product Duration (Throughput) Time.
The overall time required to entirely complete an
individual product.
Assembly Line Balancing
Assignment of tasks to workstations within a
given cycle time and with minimum idle worker
time.

Fundamentals of Operations Management 4e The McGraw-Hill Companies, Inc., 2003 88
Assembly Line Balancing Steps
1. Specify the sequential relationships among tasks
using a precedence diagram.
2. Determine the required takt (T) time.
3. Determine the theoretical minimum number of
workstations (Nt) required to satisfy the takt time
constraint.
4. Select a primary rule by which tasks are to be
assigned to workstations and a secondary rule to
break ties.

Fundamentals of Operations Management 4e The McGraw-Hill Companies, Inc., 2003 89
Assembly Line Balancing Steps (contd)
5. Assign tasks, one at a time, to the first workstation
until the sum of the task times is equal to the takt
time. Continue assigning tasks to other workstations
until all tasks are assigned.
6. Evaluate the efficiency of the resulting assembly line.
7. If efficiency is unsatisfactory, rebalance the line using
a different decision rule in step 4.

Fundamentals of Operations Management 4e The McGraw-Hill Companies, Inc., 2003 810
Takt Time and Throughput Time
on an Assembly Line
Matching task time to takt time:
1. Split the task
2. Duplicate the station
3. Share the task
4. Use a more skilled worker
5. Work overtime
6. Redesign the product
Exhibit 8.9

Fundamentals of Operations Management 4e The McGraw-Hill Companies, Inc., 2003 811
Flexible
Line
Layouts
Exhibit 8.13
Source: Robert W. Hall, Attaining Manufacturing Excellence
(Homewood, IL: Dow Jones-Irwin, 1987), p. 125.

Fundamentals of Operations Management 4e The McGraw-Hill Companies, Inc., 2003 812
Group Technology (Cellular) Layout
Benefits
Better human relations in small work teams.
Improved operator expertise from the limited
number of parts and quick production cycle.
Less work-in-process inventory and material
handling due to reduced number of production
stages.
Faster production setup from faster tooling
changes.

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Group Technology (GT) Layout
Developing a GT Layout
Grouping parts into families that follow a
common sequence of steps.
Identifying dominant flow patterns of parts-
families for location of processes.
Physically grouping machines and processes
into cells.

Fundamentals of Operations Management 4e The McGraw-Hill Companies, Inc., 2003 814
Facilities Layout for Services
Goals of Service Facility Layouts
Minimize travel time for workers and customers
Maximize revenues from customers
Types of Service Layouts
Process layoutemergency rooms
Product layoutcafeteria line
Fixed-position layoutautomobile repair shop

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Facilities Layout for Services
Servicescape
The aspects of the physical surroundings in a
service operation that can affect a customers
perception of the service received.
Ambient conditions
Noise, lighting, and temperature
Spatial layout and functionality
Minimizing employee travel time and maximizing
revenue opportunities from customers
Signs, symbols, and artifacts
Objects that create positive images of the firm