Layout Strategies

9
PowerPoint presentation to accompany
Heizer and Render
Operations Management, Eleventh Edition
Principles of Operations Management, Ninth Edition

PowerPoint slides by Jeff Heyl

2014
2014
Pearson
Pearson
Education,
Education,
Inc.Inc. 9-1
 Outline
Strategic Importance of Layout Decisions
Types of Layout
Fixed-Position Layout
Process-Oriented Layout
Product-Oriented Layout
Use Line Balance Analysis for Product
Layout

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Strategic Importance of Layout
Decisions
INDUCTION
TURNING MILLING DRILLING GRINDING
HARDENING
MACHINE MACHINE MACHINE MACHINE MACHINE

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 Strategic Importance of Layout
Decisions

Layout refers to the specific configuration

of physical facilities in an organization.

Objective of layout strategy is to

develop an effective and efficient
layout that will meet the firms
competitive requirements.
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 Layout Design Considerations
Higher utilization of space, equipment, and
people
Improved flow of information, materials, or
people
Improved employee morale and safer
working conditions
Improved customer/client interaction
Flexibility

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 Types of Layout

1. Fixed-position layout
2. Process-oriented layout
3. Product-oriented layout

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 Fixed-Position Layout
Deal with large, bulky projects, e.g., ship & building
Product remains in one place
Workers and equipment come to site
Complicating factors
Limited space at site
Different materials
required at different
stages of the project
Volume of materials
needed is dynamic

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 Fixed-Position Layout
As much of the project as possible is
completed off-site in a product-oriented
facility
This can significantly improve efficiency
but is only possible when multiple similar
units need to be created

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 Process-Oriented Layout
Similar machines and equipment are
grouped together
To deal with low-volume, high-variety
production
Each product / service undergoes a
different sequence of operations
Example: Job shop

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 Process-Oriented Layout
Milling
Lathe Department Department Drilling Department
M M D D D D
L L

M M D D D D
L L

G G G P
L L

G G G P
L L
Grinding Painting Department
Department
L L
Receiving and A A A
Shipping Assembly

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 Process-Oriented Layout
Surgery ER triage room Emergency room admissions
Patient A - broken leg

Patient B - erratic heart

pacemaker

Laboratories

Radiology ER Beds Pharmacy Billing/exit

Figure 9.3

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 Product-Oriented Layout
Organized around products or families of
similar high-volume, low-variety products
1. Volume is adequate for high equipment utilization
2. Product demand is stable enough to justify high
investment in specialized equipment
3. Product is standardized or approaching a phase of
life cycle that justifies investment
4. Supplies of raw materials and components are
adequate and of uniform quality
5. Repetitive or continuous process
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 Product-Oriented Layout

Raw
Station Station Station Station Finished
materials 1 2 3 4 item
or customer
Material Material Material Material
and/or and/or and/or and/or
labor labor labor labor

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 Product-Oriented Layout

Cafeteria serving Line

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 LINE BALANCE IN PRODUCT-
ORIENTED LAYOUT

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 Line Balancing in Product
Layouts
Central problem in product layout is to balance the
output at each work station along the production line
Line Balancing is the process of assigning tasks to
workstations in such a way that the workstations have
approximately equal time requirements
12
12

10
10

8
8

Time (min)
Time (min)

6 6

4 4

2 2

0 0
1 2 3 4 5 1 2 3 4 5
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Workstation Workstation
General Procedure for Line Balancing
1. Determine precedence relationships

Total work time available

2. Calculate Takt time =
Units required

Total of all task time

3. Determine minimum number of work stations =
takt time

4. Determine the candidate list which includes the following tasks

a) The task whose immediate predecessors have been assigned to a workstation

b) The task for which adequate time is available at the work station

5. Decision rule: task with the longest processing time

Sum of all task time s
6. Determine efficiency = 100%
# of Actual Work stations Takt time
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 Line Balancing (Example 1)
There are 240 productive minutes available per day. The production
schedule requires to complete 600 units each day. Arrange the work
activities into workstations so as to balance the assembly line.
Task Immediate Predecessor Time (Min)
A Press out sheet of fruit 0.1
B Cut into strips A 0.2
C Outline fun shapes A 0.4
D Roll up and package B, C 0.3

B 0.2

0.1 A D 0.3

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 Line Balancing (Example 1)
There are 240 productive minutes available per day. The production
schedule requires to complete 600 units each day. Arrange the work
activities into workstations so as to balance the assembly line.
Task Immediate Predecessor Time (Min)
A Press out sheet of fruit 0.1
B Cut into strips A 0.2
C Outline fun shapes A 0.4
D Roll up and package B, C 0.3

Production time available per day 240

Takt time = = = 0.4 min/unit
Output needed per day 600

total task time 0.1 0.2 0.4 0.3

N min 2.5 3 Round up
Takt time 0.4
 Line Balancing (Example 1)
0.2
B
0.3 Takt time = 0.4 min/unit

0.1
A D

C 0.4

Station Candidate Task Task Total Idle

Number list assigned time time time
1 A A 0.1 0.1 0.3
B B 0.2 0.3 0.1
2 C C 0.4 0.4 0
3 D D 0.3 0.3 0.1
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 Line Balancing (Example 1)
Work Work Work
station 1 station 2 station 3

A, B C D
0.3 0.4 0.3
minute minute minute

Total task times

Efficiency =
(# of actual workstations) x Takt time
0.1 + 0.2 + 0.4 + 0.3
=
(3 stations) x (0.4 minutes)

= 83.33%

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 Line Balancing (Example 2)
(1) Draw a precedence diagram for the assembly line
Performance
Time Immediate
Task (minutes) predecessor
A 5
B 3 A
C 4 B
D 3 B
E 4 C
F 1 C
G 4 D, E, F 4
H 7 G
4 E
Total time 31 5 3 C 1 4 7
A B 3 F G H
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 Line Balancing (Example 2)
(2) Assuming 500 productive minutes available per day, compute
the takt time needed to obtain an output of 65 units per day.

Production time available per day

Takt time =
output required per day
= 500 / 65
= 7.7 minutes per unit

total task time 31

N min 4.03 5
takt time 7.7

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 4

4 E
5 3 C 1 4 7
A B 3 F G H
Takt time = 7.7 min/unit
D

Station Candidate Task Task Total Idle

Number list assigned time time time

1 A A 5 5 2.7
2 B B 3 3 4.7
C, D C 4 7 0.7
3 D, E, F E 4 4 3.7
D, F D 3 7 0.7
4 F F 1 1 6.7
G G 4 5 2.7
5 H H 7 7 0.7
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 Line Balancing (Example 2)
Work Work Work Work Work
station 1 station 2 station 3 station 4 station 5
A B,C D, E G, F H

5 minute 7 minute 7 minute 5 minute 7 minute

Total task times

Efficiency =
(# of actual workstations) x Takt time
31 minutes
=
(5 stations) x (7.7 minutes)

= 80.52%

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 EX 1 in Class
Balance the assembly line for the Tourist T-Shirt Company.
The operations run continuously for 8 hours per day. Each day,
80 T-shirts must be produced to meet customer demand.

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 EX 2 in Class
The assembly of Noname personal computers, a generic mail-order PC
clone, requires a total of 12 tasks, and the job times (in minutes) along
with the precedence relationships are summarized in the table. Suppose
that the company is willing to hire enough workers to produce one
assembled machine every 18 minutes. Perform a line balancing analysis.
Processing Immediate
Task time predecessor
A 12 -
B 6 A
C 6 B
D 2 B
E 3 B
F 12 B
G 7 C, D
H 5 G
I 4 E
J 4 F, I
K 6 H, J
L 7 K
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Total 74
 Summary
1. Fixed-position layout: Addresses the layout
requirements of large, bulky projects such
as ships and buildings
2. Process-oriented layout: Deals with low-
volume, high-variety production (also called
job shop or intermittent production)
3. Product-oriented layout: Seeks the best
personnel and machine utilizations in
repetitive or continuous production

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