Layout Strategies

Lecture 7
 Process-Oriented Layout

 Similar machines and equipment are

grouped together
 Flexible and capable of handling a wide
variety of products or services
 Scheduling can be difficult and setup,
material handling, and labor costs can
be high

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Process Layouts: Advantages & Disadvantages
Advantages
• Can handle a variety of processing
requirements
• Not particularly vulnerable to equipment
failures
• General-purpose equipment is often less
costly and easier and less costly to maintain
Disadvantages
• In-process inventories can be high
• Routing and scheduling pose continual
challenges
• Equipment utilization rates are low
• Material handling is slow and inefficient
• High variable cost per unit
 Process-Oriented Layout
Patient A - broken leg
ER
triage Emergency room admissions
room
Surgery Patient B - erratic heart
pacemaker

Laboratories

Radiology ER Beds Pharmacy Billing/exit

Figure 9.3

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 Manufacturing Process 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
 Process-Oriented Layout
 Arrange work centers so as to minimize
the costs of material handling
 Basic cost elements are
 Number of loads (or people) moving
between centers
 Distance loads (or people) move
between centers

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 Current Process Layout Example
Area 1 Area 2 Area 3

Assembly Painting Machine Shop

Department Department Department
(1) (2) (3)

40’

Receiving Shipping Testing

Department Department Department
(4) (5) (6)

Area 4 Area 5 Area 6

Figure 9.5
60’
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 From-to Matrix
Number of loads per week
Department Assembly Painting Machine Receiving Shipping Testing
(1) (2) Shop (3) (4) (5) (6)

Assembly (1) 50 100 0 0 20

Painting (2) 30 50 10 0

Machine Shop (3) 20 0 100

Receiving (4) 50 0

Shipping (5) 0

Testing (6)

Figure 9.4
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 Current Interdepartmental Flow
Graph

100

Assembly 50 Painting 30 Machine

(1) (2) Shop (3)

10
100

Receiving Shipping Testing

(4) (5) (6)
50

Figure 9.6
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 The Cost of Material Handling
n n
Minimize cost = ∑ ∑ Xij Cij
i=1 j=1

where n = total number of work centers or departments

i, j = individual departments
Xij = number of loads moved from department i to
department j
Cij = cost to move a load between department i and
department j

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The Cost of Material Handling: Process Layout
Example
• The cost of moving one load between adjacent
departments is estimated to be $1.
• Moving a load between nonadjecent departments
costs $2.

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 The Cost of Material
Handling:Current Layout
n n
Cost = ∑ ∑ Xij Cij
i=1 j=1

Cost = $50 + $200 + $40

(1 and 2) (1 and 3) (1 and 6)
+ $30 + $50 + $10
(2 and 3) (2 and 4) (2 and 5)
+ $40 + $100 + $50
(3 and 4) (3 and 6) (4 and 5)

= $570

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 Improved Process Layout Example
Area 1 Area 2 Area 3

Painting Assembly Machine Shop

Department Department Department
(2) (1) (3)

40’

Receiving Shipping Testing

Department Department Department
(4) (5) (6)

Area 4 Area 5 Area 6

Figure 9.8
60’
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 Improved Interdepartmental Flow
Graph
30

Painting 50 Assembly 100 Machine

(2) (1) Shop (3)

50 100

Receiving Shipping Testing

(4) (5) (6)
50

Figure 9.7
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 The Cost of Material Handling:
Improved Layout
n n
Cost = ∑ ∑ Xij Cij
i=1 j=1

Cost = $50 + $100 + $20

(1 and 2) (1 and 3) (1 and 6)
+ $60 + $50 + $10
(2 and 3) (2 and 4) (2 and 5)
+ $40 + $100 + $50
(3 and 4) (3 and 6) (4 and 5)

= $480

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 6. Work Cells
 Reorganizes people and machines into groups
to focus on single products or product groups
(PART FAMILIES)
 Group technology is a philosophy wherein
similar products are grouped together
 Processes required to make these similar parts
are arranged as Work Cells
 Similarity can be either in shape, size or in
manufacturing process
 Production Volume must justify forming the
cells
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Part families
Part families with Part families with
similarity in similarity in shape
manufacturing process
Original Process Layout

Assembly

4 6 7 9

5 8

2 10 12

1 3 11

A B C Raw materials
 Part Routing Matrix

Machines
Parts 1 2 3 4 5 6 7 8 9 10 11 12
A x x x x x
B x x x x
C x x x
D x x x x x
E x x x
F x x x
G x x x x
H x x x

Figure 5.8
Reordered Routing Matrix
Revised Cellular Layout

Assembly

8 10 9 12

11
4 Cell 1 Cell 2 6 Cell 3
7

2 1 3 5

A B C
Raw materials
 Advantages of Work Cells
1. Reduced work-in-process inventory
2. Less floor space required
3. Reduced direct labor, and setup cost
4. More employee participation
5. Increased use of equipment and machinery

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 Staffing and Balancing Work Cells
1. Determine the takt time (Also called cycle time)
Total work time available per day
Takt time = Required output per day (in units)

2. Determine the
number of operators
required
Total operation time required
Workers required = Takt time

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 Staffing Work Cells
Example
Required output: 600 Auto Mirrors
per day
Total work time: 8 hours per day
60
Total operation time
per mirror =140 seconds 50

Standard time required

40
Takt time?
# of workers required? 30

20

10

0
Assemble Paint Test Label Pack for
shipment
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 Staffing Work Cells Example
600 Mirrors per day required
Mirror production scheduled for 8 hours per day
From a work balance chart total operation time
= 140 seconds

Takt time = (8 hrs x 60 mins) / 600 units

= .8 mins = 48 seconds

Total operation time required

Workers required = Takt time

= 140 / 48 = 2.91
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 Repetitive and 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
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 Production/Assembly Line

Raw
Station Station Station Station Finished
materials item
1 2 3 4
or customer

Materials Materials Materials Materials

and/or and/or and/or and/or
labor labor labor labor

Used for Repetitive or Continuous Processing

Example: automobile assembly lines, cafeteria serving line
 U-Shaped Production Line

In 1 2 3 4
5
Workers

6
Out
10 9 8 7
McDonald’s Assembly Line

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 Product-Oriented Layouts
 Fabrication line
 Builds components on a series of machines
 Machine-paced
 Require mechanical or engineering changes to balance
 Assembly line
 Puts fabricated parts together at a series of workstations
 Paced by work tasks
 Balanced by moving tasks

Both types of lines must be balanced so that the time to perform the work at
each station is the same
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 Product-Oriented Layouts
Advantages
1. Low variable cost per unit
2. Low material handling costs
3. Reduced work-in-process inventories
4. Easier training and supervision
5. Rapid throughput

Disadvantages
1. High production volume is required to be justifiable
2. Work stoppage at any point ties up the whole operation
3. Lack of flexibility in product or production rates

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 Disassembly Lines
• Disassembly is being considered in new product
designs
• “Green” issues and recycling standards are important
consideration
• Automotive
disassembly
is the 16th
largest
industry in
the US

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Line Balancing
• Perfect balance is not possible
• The process of assigning tasks to
workstations in such a way that the
workstations have approximately
equal time requirements
Objective in Line Balancing
• To minimize idle time along the line and increase
utilization of equipment and labor
• Why is line balancing important?
• It allows us to use labor and equipment more
efficiently.
• It avoids chances that one workstation does not work
harder than another.

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publishing as Prentice Hall
 Assembly-Line Balancing
 Start drawing the precedence diagram
 Determine cycle time
 Calculate theoretical
minimum number of
workstations
 Balance the line by
assigning specific
tasks to workstations
 Compute efficiency

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 Precedence Diagram
• Precedence diagram
• A diagram that shows elemental tasks and their precedence requirements

6-36
 Cycle Time
• The maximum time allowed at each workstation to complete its set of tasks on
a unit
• Cycle time also establishes the output rate of a line

Operating time per day

Cycle time 
Desired output rate

Operating time per day

Output rate 
Cycle time

6-37
How Many Workstations are Needed?
• The required number of workstations is a function of
• Desired output rate
• Our ability to combine tasks into a workstation
• Theoretical minimum number of stations

N min 
t
Cycle time
where
N min  theoretica l minimum number of stations
 t  Sum of task time s
Measuring Effectiveness
• Balance delay (percentage of idle time)
• Percentage of idle time of a line
Idle time per cycle
Balance Delay  100
N actual  Largest WS time
where
N actual  Actual number of stations
• Efficiency
• Percentage of busy time of a line
Efficiency  100% - Balance Delay
 Measuring Effectiveness

• Efficiency

Balance Delay=100% - Efficiency

Sum of task time s
Efficiency  100
N actual  Largest WS time
where
N actual  Actual number of stations
Example 1: Cycle Times

0.1 min. 0.7 min. 1.0 min. 0.5 min. 0.2 min.

With 5 workstations, CT = 1.0 minute.

Cycle time of a system = longest processing time in a workstation.

Example 1: Cycle Times

0.1 min. 0.7 min. 1.0 min. 0.5 min. 0.2 min.

With 1 workstation, CT = 2.5 minutes.

Cycle time of workstation = total processing time in of tasks.

With 3 workstations, can CT = 1.0 minute?

0.1 min. 0.7 min. 1.0 min. 0.5 min. 0.2 min.

Workstation 1 Workstation 2 Workstation 3

Output Capacity
OT
Output capacity =
CT
OT = operating time per day

CT = cycle time
Example: 8 hours per day
OT = 8 x 60 = 480 minutes per day
Cycle Time = CT = 1.0 min
Maximum Output = OT/CT = 480/1.0 = 480
units per day
Cycle Time = CT = 2.5 min
Minimum Output = OT/CT = 480/2.5 = 192
units per day
Cycle Time Determined by Desired Output

OT
CT = cycle time =
D
D = Desired output rate

Example: 8 hours per day

OT = 8 x 60 = 480 minutes per day
D = 480 units per day
CT = OT/D = 480/480 = 1.0 Minute
Theoretical Minimum Number of Stations Required

t
Nmin =
CT

t = sum of task times
Nmin = theoretical Minimum Number of
Workstations Required

Example: 8 hours per day, desired

output rate is 480 units per day
CT = OT/D = 480/480 = 1.0 Minute
Nmin = ∑t /CT = 2.5/1.0 = 2.5 stations
≈ 3 stations
 Example 1:available mins per day is 480
40 units are required to be produced per day

Performance
Time Immediate
Task (minutes) Predecessors
A 10 —
B 11 A This means that
C 5 B tasks B and E
cannot be done
D 4 B until task A has
E 12 A been completed
F 3 C, D
G 7 F
H 11 E
I 3 G, H
Total time 66 min.

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 Wing Component Example
Performance
Time Immediate
Task (minutes) Predecessors
A 10 —
B 11 A
C 5 B
D 4 B
E 12 A
F 3 C, D 5

G 7 F 10 11
C
3 7
H 11 E
A B F G
I 3 G, H 4
3
Total time 66 12
D
11 I
E H

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 Wing Component Example
Performance Task Must Follow 480 available mins
Time Task Listed per day
Task (minutes) Below 40 units required
A 10 —
B 11 A Production time available
C 5 B per day
D 4 CycleBtime = Units required per day
E 12 A = 480 / 40
F 3 C, D 5
= 12 minutes per unit
G 7 F 10 11
C
3 7
n
H 11 E ∑ BTime for task i F
Minimum A G
I 3 G, H i=1 4
number of = Cycle time 3
Total time 66 workstations 12
D
11 I
= 66 / 12E H
= 5.5 or 6 stations
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