Slides prepared by John Loucks

2002 South-Western/Thomson Learning TM

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Chapter 5, Part B

Facility Layout: Manufacturing and Services

Overview

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

Facility Layout
Facility layout means planning: for the location of all machines, utilities, employee workstations, customer service areas, material storage areas, aisles, restrooms, lunchrooms, internal walls, offices, and computer rooms for the flow patterns of materials and people around, into, and within buildings

Locate All Areas In and Around Buildings

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

Characteristics of the Facility Layout Decision

Location of these various areas impacts the flow through the system. The layout can affect productivity and costs generated by the system. Layout alternatives are limited by the amount and type of space required for the various areas the amount and type of space available the operations strategy . . . more

Characteristics of the Facility Layout Decision

Layout decisions tend to be: Infrequent Expensive to implement Studied and evaluated extensively Long-term commitments

Manufacturing Facility Layouts

Materials Handling

The central focus of most manufacturing layouts is to minimize the cost of processing, transporting, and storing materials throughout the production system. Materials used in manufacturing include: Raw material Purchased components Work-in-progress Finished goods Packaging material Maintenance, repair, and operating supplies

Materials Handling
A materials-handling system is the entire network of transportation that: Receives material Stores material in inventories Moves material between processing points Deposits the finished products into vehicles for delivery to customers

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Materials Handling
Material-Handling Principles Move directly (no zigzagging/backtracking) 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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Basic Layout Forms

Process Product Cellular Fixed-Position Hybrid

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Process (Job Shop) Layouts

Equipment that perform similar processes are grouped together Used when the operations system must handle a wide variety of products in relatively small volumes (i.e., flexibility is necessary)

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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

Operations are arranged in the sequence required to make the product Used when the operations system must handle a narrow variety of products in relatively high volumes Operations and personnel are dedicated to producing one or a small number of products

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

Line Balancing Network (Precedence) Diagram

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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 = Productive Time per Hour Workstations = [(42.8)(10)]/45 = 9.51 workstations

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Example: Armstrong Pumps

Line Balancing Incremental Utilization Heuristic

WS Tasks Mins./pump #WSs 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
A B C D E X X

2
X X X

3 X

4
X X

5 X X

6 X

Machines

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Example: Maxx Superchargers

Cell Formulation Rows Rearranged Parts

1
A E D C B

3 X X

5 X X

6 X X

Machines

X X

X X X

X X X

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Example: Maxx Superchargers

Cell Formulation Columns Rearranged Parts

A E D C B

3 X X

5 X X

6* X X

Machines

X X

X 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. Identify dept. pairs with CR of m. Step 1 Step 2

Develop layout with dept. pairs idenStep 3 tified in Step 2 adjacent to one another.

Let m = m + 1 and n = n - 1.
No Does m = 3 and n = 4 ? Yes Stop

Identify dept. pairs with CR of n. Fit the dept. pairs identified in Step 4 into the trial layout from Step 3. Examine the trial layout from Step 5. If any CRs of dept. pairs are violated, rearrange depts. to comply with CRs.

Step 4 Step 5

Step 6

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Using Closeness Ratings to Develop Service Facility Layouts

Typical Closeness Ratings Closeness Rating 1 2 3 4 5 6 Meaning of Rating Necessary Very Important Important Slightly Important Unimportant 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 Dept. B Dept. C Dept. D Dept. E Dept. F Dept. G
5
6 4 2

6 3

1
4 5

2
1 1

4
2 3

5
2

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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 BD BF CG

B F

D 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. CR = 1 BD BF CG

B F

D G C

CR = 6 AD BC

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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 BD BF CG

B D

F E

A G C

CR = 6 AD BC

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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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End of Chapter 5, Part B

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