Overview

 Facility Layout
 Manufacturing Facility Layouts
 Analyzing Manufacturing Facility Layouts
 Service Facility Layouts
 Wrap-Up: What World-Class Companies Do

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 Facility Layout

Facility layout means planning:

 for the location of all machines, utilities, employee
workstations, customer service areas, material
storage areas, aisles, restrooms, lunchrooms,
drinking fountains, internal walls, offices, and
computer rooms
 for the flow patterns of materials and people
around, into, and within buildings

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 Objectives of Facility Layout

 Equipment
 Work stations
 Material storage
 Rest/break areas
 Utilities
 Eating areas
 Aisles
 Offices

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 Central Focus

 The central focus of most manufacturing layouts is to

minimize the
- cost of processing,
- transporting,
- and storing materials throughout the production
system.

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Manufacturing Facility Layouts

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 Materials Handling

 Materials used in manufacturing include:

 Raw material
 Purchased components
 Work-in-progress
 Finished goods
 Packaging material
 Maintenance, repair, and operating supplies
 Scrap and waste

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 Materials Handling

A materials-handling system is the entire network of

transportation that:
 Receives material
 Stores material in inventories
 Moves material between processing points within
and between buildings
 Deposits the finished products into vehicles for
delivery to customers

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 Materials Handling Principles

 Move directly (no zigzagging/backtracking)

 Arrange related production process to provide
direct material flow.
 Minimize human effort required
 Move heavy/bulky items the shortest distances
 Minimize number of times same item is moved
 MH systems should be flexible
 Mobile equipment should carry full loads

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 Materials Handling

Material-Handling Equipment
Automatic transfer devices
Containers/pallets/hand carts
Conveyors
Cranes
Elevators
Pipelines
Turntables
AGVS

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Ex: Equipments used for material handling :-

1. Forklift 2. Scissor lift

3. Tow truck 4. Pick up

5. Trolleys

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 Basic Layout Forms

 Process
 Product
 Cellular
 Fixed-Position
 Hybrid

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 Process (Job Shop/Functional) Layouts

 Used when the operations system must handle a wide

variety of products in relatively small volumes (i.e.,
flexibility is necessary)
 Equipment that perform similar processes are
grouped together

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 Process-Focused

Custom Woodworking Shop

Cutting Planing Shaping Assembly Sanding Finishing
1 2 5 6 7

Job A 2 3

Job B 3 4

1 4 5 6

Drilling Turning

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 Characteristics of Process Layouts

 General-purpose equipment is used

 Changeover is rapid
 Material flow is intermittent
 Material handling equipment is flexible
 Operators are highly skilled
 . . . more

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 Characteristics of Process Layouts

 Technical supervision is required

 Planning, scheduling and controlling functions are
challenging
 Production time is relatively long
 In-process inventory is relatively high

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 Product (Assembly Line) Layouts

 Used when the operations system must handle a

narrow variety of products in relatively high volumes
 Operations are arranged in the sequence required to
make the product
 Operations and personnel are dedicated to producing
one or a small number of products

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 Product-Focused

Raw Material Components

2 4

Assemblies Fin. Goods

1 3 5 7
Raw Material Components Subassem.

Purchased
Product/Material
1 Flow
6
Production Operation Components,
Subassemblies

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 Characteristics of Product Layouts

 Special-purpose equipment are used

 Changeover is expensive and lengthy
 Material flow approaches continuous
 Material handling equipment is fixed
 Operators need not be as skilled
 . . . more

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 Characteristics of Product Layouts

 Little direct supervision is required

 Planning, scheduling and controlling functions are
relatively straight-forward
 Production time for a unit is relatively short
 In-process inventory is relatively low

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 Cellular Manufacturing Layouts

 Operations required to produce a particular family

(group) of parts are arranged in the sequence required
to make that family
 Used when the operations system must handle a
moderate variety of products in moderate volumes

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21
 Characteristics of Cellular Manufacturing
Relative to Process Layouts
 Equipment can be less general-purpose
 Material handling costs are reduced
 Training periods for operators are shortened
 In-process inventory is lower
 Parts can be made faster and shipped more quickly

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 Characteristics of Cellular Manufacturing
Relative to Product Layouts
 Equipment can be less special-purpose
 Changeovers are simplified
 Production is easier to automate

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 Fixed-Position Layouts

 Product remains in a fixed position, and the

personnel, material and equipment come to it
 Used when the product is very bulky, large, heavy or
fragile

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 Hybrid Layouts

 Actually, most manufacturing facilities use a

combination of layout types.
 An example of a hybrid layout is where departments
are arranged according to the types of processes but
the products flow through on a product layout.

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 New Trends in Manufacturing Layouts

 Designed for quality

 Designed for flexibility - to quickly shift to different
product models or to different production rates
 Cellular layout within larger process layouts
 Automated material handling
 U-shaped production lines
 . . . more

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 New Trends in Manufacturing Layouts

 More open work areas with fewer walls, partitions, or

other obstacles
 Smaller and more compact factory layouts
 Less space provided for storage of inventories
throughout the layout

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 Planning Manufacturing Facility Layouts

Two Categories of Software Tools

 Computer aided design (CAD)

Allows 3-D, full-color views of facility design

Allows virtual walk-throughs
Ex. – ArchiCAD, AutoSketch, AutoCAD
 Computer simulation

Can simulate proposed system layout in operation

and measure its performance
Ex. – ProModel, VisFactory, SIMPROCESS

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 Planning Manufacturing Facility Layouts

 Process and Warehouse Layouts

 Product Layouts
 Cellular Manufacturing Layouts

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 Planning Manufacturing Facility Layouts

Process Layouts
 Primary focus is on the efficient flow of materials
 The wide variety of potential product routings
through the facility can be evaluated using
computer simulation
 Warehouse Layouts

 Primary focus is the fast storage and retrieval of

inventory items
 Decisions about aisle size/placement and location
of each inventory item can be evaluated using
computer simulation
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 Planning Manufacturing Facility Layouts

Product Layouts
 Primary focus is on the analysis of production lines

 The goal of the production line analysis is to:

 Determine how many workstations to have

 Determine which tasks to assign to which
workstation
 Minimize the number of workers & machines used
 Provide the required amount of capacity
 Line balancing is a key part of the analysis

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 Planning Product Layouts

Line Balancing Procedure

1. Determine the tasks involved in completing 1 unit
2. Determine the order in which tasks must be done
3. Draw a precedence diagram
4. Estimate task times
5. Calculate the cycle time
6. Calculate the minimum number of workstations
7. Use a heuristic to assign tasks to workstations

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 Planning Product Layouts

Line Balancing Heuristics

 Heuristic methods, based on simple rules, have been

developed to provide good (not optimal) solutions to

line balancing problems
 Heuristic methods include:

 Incremental utilization (IU) method

 Longest-task-time (LTT) method
 … and many others

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 Planning Product Layouts

Incremental Utilization Method

 Add tasks to a workstation in order of task

precedence one at a time until utilization is 100% or

is observed to fall
 Then the above procedure is repeated at the next

workstation for the remaining tasks

 Pro – Appropriate when one or more task times is

equal to or greater than the cycle time

 Con – Might create the need for extra equipment

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 Planning Product Layouts

Longest-Task-Time Method
 Adds tasks to a workstation one at a time in the order

of task precedence.
 If two or more tasks tie for order of precedence, the

one with the longest task time is added

 Conditions for its use:

 No task time can be greater than the cycle time

 There can be no duplicate workstations

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 Example: Armstrong Pumps

 Line Balancing
Armstrong produces bicycle tire pumps on a
production line. The time to perform the 6 tasks in
producing a pump and their immediate predecessor
tasks are shown on the next slide.
Ten pumps per hour must be produced and 45
minutes per hour are productive.
Use the incremental utilization heuristic to
combine the tasks into workstations in order to
minimize idle time.
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 Example: Armstrong Pumps

 Line Balancing
Tasks that Time to
Immediately Perform
Task Precede Task (min.)
A -- 5.4
B A 3.2
C -- 1.5
D B,C 2.8
E D 17.1
F E 12.8
Total = 42.8
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 Example: Armstrong Pumps

 Line Balancing – Network (Precedence) Diagram

A B D E F

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 Example: Armstrong Pumps

 Line Balancing – Cycle Time

Productive Time per Hour

Cycle Time =
Demand per Hour

= 45/10 = 4.5 minutes per pump

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 Example: Armstrong Pumps

 Line Balancing – Minimum Number of Workstations

Minimum
(Total Task Time)(Demand per Hour)
Number of =
Workstations Productive Time per Hour

= [(42.8)(10)]/45 = 9.51 workstations

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 Example: Armstrong Pumps

 Line Balancing – Incremental Utilization Heuristic

WS Tasks Mins./pump #WS’s Incr.Util.
1 A 5.4 5.4/4.5=1.2= 2 60.0%
1 A,B 5.4 + 3.2 8.6/4.5=1.9= 2 95.0%
1 A,B,C 8.6 + 1.5 10.1/4.5=2.2= 3 49.8%
2 C 1.5 1.5/4.5=.33= 1 33.3%
2 C,D 1.5 + 2.8 4.3/4.5=.96= 1 95.6%
2 C,D,E 4.3 + 17.1 21.4/4.5=4.8= 5 95.1%
3 E 17.1 17.1/4.5=3.8= 4 95.0%
3 E,F 17.1 + 12.8 29.9/4.5=6.6= 7 94.9%
4 F 12.8 12.8/4.5=2.8= 3 94.8%
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 Example: Armstrong Pumps

 Line Balancing – Utilization of Production Line

Minimum Number of Workstations

Utilization =
Actual Number of Workstations

= 9.51/10 = .951 = 95.1%

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 Planning Product Layouts

Rebalancing a Production Line

 Changes that can lead to production lines being out of

balance or having insufficient/excess capacity are:

 Changes in demand
 Machine modifications
 Variations in employee learning and training

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 Planning Cellular Manufacturing Layouts

 Cell Formation Decision

 Which machines are assigned to manufacturing
cells
 Which parts will be produced in each cell

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 Planning Cellular Manufacturing Layouts

 Fundamental Requirements for Parts to be Made in

Cells
 Demand for the parts must be high enough and
stable enough that moderate batch sizes of the
parts can be produced periodically.
 Parts must be capable of being grouped into parts
families.

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 Planning Cellular Manufacturing Layouts

More-Complex Issues to be Resolved

 If all the parts cannot be cleanly divided between

cells, how will we decide which are to be the

exceptional parts?
 If inadequate capacity is available to produce all the

parts in cells, which parts should be made outside the

cells?

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 Planning Cellular Manufacturing Layouts

Cell Formation Procedure

1. Form the Parts-Machines Matrix.
2. Rearrange the Rows.
 Place the machines that produce the same parts in
adjacent rows.
3. Rearrange the Columns.
 Place the parts requiring the same machines in
adjacent columns.
4. Use the rearranged parts-machines matrix to identify
cells, the machines for that cell and the parts that will
be produced in that cell.

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 Example: Maxx Superchargers

 Cell Formulation
Maxx produces superchargers for high
performance cars and trucks. Maxx has implemented
a group technology program in its shop and now must
formulate the manufacturing cells. Maxx has
identified six parts that meet the requirements for
CM.
The parts-machines matrix on the next slide
identifies the 6 parts and 5 machines on which the
parts are presently produced.

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 Example: Maxx Superchargers

 Cell Formulation – Original Matrix

Parts
1 2 3 4 5 6
A X X X
B X X X X
Machines C X X
D X X
E X X X

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 Example: Maxx Superchargers

 Cell Formulation – Rows Rearranged

Parts
1 2 3 4 5 6
A X X X
E X X X
Machines D X X
C X X
B X X X X

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 Example: Maxx Superchargers

 Cell Formulation – Columns Rearranged

Parts
3 5 6* 1 2 4
A X X X
E X X X
Machines D X X
C X X
B X X X X
* exceptional part

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 Example: Maxx Superchargers

 Cell Formulation – Summary

 2 manufacturing cells (MC1, MC2) will be used.
 Parts 3 and 5 will be produced in MC1 on
machines A and E.
 Parts 1, 2 and 4 will be produced in MC2 on
machines B, C and D.
 Part 6 is an exceptional part that cannot be
produced within a single cell.

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Service Facility Layouts

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 Characteristics of Services

 There may be a diversity of services provided

 There are three dimensions to the type of service:
 Standard or custom design
 Amount of customer contact
 Mix of physical goods and intangible services
 There are three types of service operations:
 Quasi manufacturing
 Customer-as-participant
 Customer-as-product

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 Characteristics of Service Facility Layouts

 The encounter between the customer and the service

must be provided for.
 The degree to which customer-related features must
be provided varies with the amount of customer
involvement and customer contact.

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 Planning Service Facility Layouts

Quasi-Manufacturing Services
Several topics previously discussed under
Manufacturing Layouts are relevant here:
Principles of material handling


CAD and simulation software



Line balancing


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 Planning Service Facility Layouts

Customer-as-Participant & Customer-as-Product

 An important element is providing for customer
waiting lines
Amount of space needed for service counters


and waiting customers

Placement of waiting lines in overall layout


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 Planning Service Facility Layouts

 For many service operations, layouts are like process

layouts in manufacturing
 The departments of hospitals are grouped and located
according to their processes
 In some cases, closeness ratings are used to reflect the
desirability of having one department near another

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 Using Closeness Ratings
to Develop Service Facility Layouts
Start Let m = 1 and n = 6. Step 1

Identify dept. pairs with CR of m. Step 2

Develop layout with dept. pairs iden-

Step 3
tified in Step 2 adjacent to one another.
Let m = m + 1
and n = n - 1. Identify dept. pairs with CR of n. Step 4
No
Fit the dept. pairs identified in Step 4
Does Step 5
into the trial layout from Step 3.
m = 3 and n = 4
? Examine the trial layout from Step 5.
Yes If any CRs of dept. pairs are violated, Step 6
rearrange depts. to comply with CRs.
Stop
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 Using Closeness Ratings
to Develop Service Facility Layouts
 Typical Closeness Ratings
Closeness Meaning
Rating of Rating
1 Necessary
2 Very Important
3 Important
4 Slightly Important
5 Unimportant
6 Undesirable
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 Example: AG Advertising

 Using Closeness Ratings

AG Advertising is moving into a new office suite
having seven large, roughly equal size rooms, one for
each department of the firm. Lisa, the manager, must
now assign each department to a room. She has
developed a grid of closeness ratings (on the next
slide) for the 21 unique pairs of departments.

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 Example: AG Advertising

 Closeness Ratings Grid

Dept. A
5
Dept. B 2
6 6
Dept. C 1 2
4 3 4
Dept. D 4 1 3
4 5 6
Dept. E 5 1
2 2
Dept. F 3
3
Dept. G

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 Example: AG Advertising

 Unassigned Rooms of Office Suite

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 Example: AG Advertising

 Layout Satisfying All Pairings of

Departments with 1 Closeness Ratings

CR = 1
B D
B–D
B–F
C–G F C G

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 Example: AG Advertising

 Trying to satisfying all pairings of departments with

6 closeness ratings, we see that Dept. C needs to be
moved.

B D
CR = 1 CR = 6
B–D A–D
B–F F G C B–C
C–G

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 Example: AG Advertising

 Layout Satisfying All Pairings of Departments with 6

Closeness Ratings (note that we swapped Dept. D and
Dept. F)

CR = 1 B F A CR = 6
B–D A–D
B–F B–C
C–G D E G C

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 Wrap-Up: World-Class Practice

 Strive for flexibility in layouts

 Multi-job training of workers
 Sophisticated preventive-maintenance programs
 Flexible machines
 Empowered workers trained in problem solving
 Layouts small and compact
 Services follow the above practices plus incorporate
customer needs in design

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