Chapter 7

Facilities
Operations
Operations Management
Management -- 55thth Edition
Edition
Roberta Russell & Bernard W. Taylor, III

Beni Asllani
Copyright 2006 John Wiley & Sons, Inc. University of Tennessee at
 Lecture Outline

 Basic Layouts
 Designing Process Layouts
 Designing Service Layouts
 Designing Product Layouts
 Hybrid Layouts

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 Facility Layout
Arrangement of areas within a
 Minimize material- facility to:
 Facilitate entry, exit, and
handling costs placement of material,
 Utilize space efficiently products, and people
 Utilize labor efficiently  Incorporate safety and
 Eliminate bottlenecks security measures
 Facilitate communication  Promote product and
and interaction service quality
 Reduce manufacturing  Encourage proper
cycle time maintenance activities
 Reduce customer service  Provide a visual control of
time activities
 Eliminate wasted or  Provide flexibility to adapt
redundant movement to changing conditions
 Increase capacity
Copyright 2006 John Wiley & Sons, Inc. 7-3
 BASIC LAYOUTS

 Process layouts
 group similar activities together
according to process or function
they perform
 Product layouts
 arrange activities in line
according to sequence of
operations for a particular product
or service
 Fixed-position layouts
 are used for projects in which
product cannot be moved

Copyright 2006 John Wiley & Sons, Inc. 7-4

 Process Layout in Services

Women’s
Shoes Housewares
lingerie

Women’s Cosmetics Children’s

dresses and jewelry department

Women’s Entry and Men’s

sportswear display area department

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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

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 A Product Layout
In

Out

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 Comparison of Product
and Process Layouts
Product Process
 Description
Description  Sequential  Functional
arrangement of grouping of
activities activities
 Continuous,  Intermittent,
 Type
Type of of
mass job shop,
process
process
production, batch
mainly production,
assembly mainly
 Product
Product fabrication
 Standardized,  Varied, made
 Demand
Demand made to stock to order
 Volume
Volume  Stable  Fluctuating
 Equipment
Equipment  High  Low
Copyright 2006 John Wiley &Sons, Inc.
Special purpose  General 7-8
 Comparison of Product
and Process Layouts
Product Process
 Workers
Workers  Limited skills  Varied skills
 Inventory
Inventory  Low in-process,  High in-process,
high finished low finished
 Storage
Storage space
space goods goods
 Material
Material  Small  Large
handling
handling  Fixed path  Variable path
 Aisles
Aisles (conveyor) (forklift)
 Scheduling
Scheduling  Narrow  Wide
 Layout
Layout  Part of balancing  Dynamic
decision
decision
 Goal
 Line balancing  Machine location
Goal
 Equalize work at  Minimize material
 Advantage
Advantage each station handling cost
 Efficiency  Flexibility
Copyright 2006 John Wiley & Sons, Inc. 7-9
 Fixed-Position Layouts

 Typical of projects
 Equipment,
workers, materials,
other resources
brought to the site
 Highly skilled labor
 Often low fixed
 Typically high
variable costs

Copyright 2006 John Wiley & Sons, Inc. 7-10

 Designing Process Layouts

 Goal: minimize material handling

costs
 Block Diagramming
 minimize nonadjacent loads
 use when quantitative data is available
 Relationship Diagramming
 based on location preference between
areas
 use when quantitative data is not
available

Copyright 2006 John Wiley & Sons, Inc. 7-11

 Computerized layout
Solutions
 CRAFT
 Computerized Relative Allocation of
Facilities Technique
 CORELAP
 Computerized Relationship Layout Planning
 PROMODEL and EXTEND
 visual feedback
 allow user to quickly test a variety of
scenarios
 Three-D modeling and CAD
 integrated layout analysis
 available in VisFactory and similar software

Copyright 2006 John Wiley & Sons, Inc. 7-12

 Designing Service
Layouts
 Must be both attractive and functional
 Types
 Free flow layouts

 encourage browsing, increase impulse purchasing,

are flexible and visually appealing
 Grid layouts
 encourage customer familiarity, are low cost, easy
to clean and secure, and good for repeat
customers
 Loop and Spine layouts
 both increase customer sightlines and exposure to
products, while encouraging customer to
circulate through the entire store

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 Types of Store Layouts

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 Designing Product
Layouts
 Objective
 Balance the assembly line
 Line balancing
 tries to equalize the amount of work at
each workstation
 Precedence requirements
 physical restrictions on the order in which
operations are performed
 Cycle time
 maximum amount of time a product is
allowed to spend at each workstation

Copyright 2006 John Wiley & Sons, Inc. 7-15

 Designing Product Layout

 Line balancing
 Eliminating the bottleneck
 Dividing the work equally among
stations
 Cycle time
 Idle time
 Line efficiency
 Balance delay
Copyright 2006 John Wiley & Sons, Inc. 7-16
 Hybrids Layouts

 Cellular layouts
 group dissimilar machines into work
centers (called cells) that process
families of parts with similar shapes or
processing requirements
 Flexible manufacturing system
 automated machining and material
handling systems which can produce an
enormous variety of items
 Mixed-model assembly line
 processes more than one product model
in one line

Copyright 2006 John Wiley & Sons, Inc. 7-17

 Cellular Layouts

1. Identify families of parts

with similar flow paths
2. Group machines into cells
based on part families
3. Arrange cells so material
movement is minimized
4. Locate large shared
machines at point of use

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 Parts Families

A family of A family of related

similar parts grocery items

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 Original Process Layout
Assembly

4 6 7 9

5 8

2 10 12

1 3 11

A B C Raw materials

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 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
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 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

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

Copyright 2006 John Wiley & Sons, Inc. 7-23

 Direction of part movement within cell
A Manufacturing
Cell with Worker HM
Paths
Source: J.T. Black, “Cellular Manufacturing VM
Systems Reduce Setup Time, Make Small Lot
Production Economical.” Industrial
Engineering (November 1983). Worker 3
VM

Paths of three
workers moving
within cell
Worker 2
G
Material
movement
L

Key: Final
inspection
S = Saw
L = Lathe
HM = Horizontal milling Finished

machine S Worker 1 part

VM = Vertical milling machine

In Out
G = Grinder
Copyright 2006 John Wiley & Sons, Inc. 7-24
 Automated Manufacturing Cell

Source: J. T. Black, “Cellular

Manufacturing Systems Reduce Setup
Time, Make Small Lot
Production Economical.” Industrial
Engineering (November 1983)

Copyright 2006 John Wiley & Sons, Inc. 7-25

 Advantages and Disadvantages
of Cellular Layouts
 Advantages  Disadvantages
 Reduced material  Inadequate part
handling and transit families
time  Poorly balanced cells
 Reduced setup time  Expanded training
 Reduced work-in- and scheduling
process inventory of workers
 Better use of human  Increased capital
resources investment
 Easier to control
 Easier to automate

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 Flexible Manufacturing
Systems (FMS)
 FMS consists of numerous
programmable machine tools
connected by an automated material
handling system and controlled by a
common computer network
 FMS combines flexibility with
efficiency
 FMS layouts differ based on
 variety of parts that the system can
process
 size of parts processed
 average processing time required for part
completion

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 Full-Blown FMS

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 Mixed Model
Assembly Lines
 Produce multiple models in
any order on one assembly
line
 Issues in mixed model lines
 Line balancing
 U-shaped line
 Flexible workforce
 Model sequencing
Copyright 2006 John Wiley & Sons, Inc. 7-29
 Balancing U-Shaped Lines
Precedence diagram:

A B C

Cycle time = 12 min

D E

(a) Balanced for a straight line (b) Balanced for a U-shaped line

A,B C,D E
A,B
9 min 12 min 3 min
24 24
Efficiency = = = .6666 = 66.7 % C,D
3(12) 36

24 24
Efficiency = = = 100 % 12 min 12 min
2(12) 24
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