001 Plant Layout

Facility Layout
Planning
Introduction.
Objectives of Plant Layout.
Factors affecting Plant Layout.
Types of Plant Layout.
Plant Layout for a Service business.
Plant Layout for a Warehouse.
Facility Layout Planning
Introduction
Objectives
Factors Affecting Layout Selection and
Design
Types of Plant Layout
Product Layout
Process Layout
Cell Layout
Layout for Services
Introduction
Plant layout planning includes decisions regarding the physical

allocation of the economic activity centers in a facility.
An economic activity center is any entity occupying space.

The objective of plant layout planning is a more effective
work flow at the facility, allowing workers and equipment
being more productive.
Facility layout techniques apply to the case where several physical

means have to be located in a certain area, either industrial
processes or services.
The objective of the chapter is not only Plant layout but re-layout also
(most common situation for a company).
To carry out an appropriate plant layout, its important to take into
account the business strategic and tactical objectives
Example: space requirements/cost per m2 in Malls;

accessibility/privacy in offices.
Introduction
To make a decision about layout planning, 4 different

questions must have an answer:
Which centers do we have to consider?

How much space and capacity is required for each center?
How must the space be configured at each center?
If there is not enough space, productivity may be reduced.

Too much space is expensive and may also reduce productivity.
Space quantity, shape and the elements of the work center are
related to each other.
Where should each center be located at within the facility?
The allocation of the different centers may affect productivity.
Introduction
The plant layout process starts at an aggregate level, taking into

account the different departments. As soon as we get into the details,
the different issues arise, and the original configuration may be
changed through a feedback process.
Most (if not all of them) layouts are designed properly for the initial
conditions of the business, although as long as the company grows
and has to be adapted to internal and external changes, a re-layout is
GRADO DE DETALLE SEGN
necessary.
AVANCE DEL PROYECTO
Fase III
Distribucin Detallada
DETALLE
Fase I
Localizacin
Fase IV
Instalacin
Fase II
Distribucin General
TIEMPO
Introduction
The reasons for a re-layout are based on 3 types of

changes:
Changes in production volumes.

Changes in processes and technology.
Changes in the product.
The frequency of the re-layout will depend on the

requirements of the process.
Introduction
Symptoms that allow us to detect the need for a re-layout:
Congestion and bad utilization of space.

Excessive stock in process at the facility.
Long distances in the work flow process.
Simultaneous bottle necks and workstations with idle time.
Qualified workers carrying out too many simple operations.
Labor anxiety and discomfort. Accidents at the facility.
Difficulty in controlling operations and personnel.
Lay Out
Introduction
Objectives
Design
Product Layout
Process Layout
Layout for Services
Facility Layout Definition
A facility layout is an arrangement of everything

needed for production of goods or delivery of
services. A facility is an entity that facilitates the
performance of any job. It may be a machine tool, a
work centre, a manufacturing cell, a machine shop,
a department, a warehouse, etc. (Heragu, 1997).
The
layout design generally

depends on the products variety
and the production volumes. Four
types of organization are referred
to, namely fixed product layout,
process layout, product layout and
cellular layout (Dilworth, 1996).
Quantity
Product
Layouts
Fixed
Position
Layouts
Mixed Layouts Process Layouts
Number of Different Products
Objectives of Plant Layout
The main objective consists of organizing equipment

and working areas in the most efficient way, and at
the same time satisfactory and safe for the personnel
doing the work.
Sense of Unity
Minimum Movement of people, material and

resources.
Safety
The feeling of being a unit pursuing the same objective.
In the movement of materials and personnel work flow.
Flexibility
In designing the plant layout taking into account the changes

over short and medium terms in the production process and
manufacturing volumes.
Objectives of Plant Layout
These main objectives are reached through the attainment of the

following facts:
Congestion reduction.
Elimination of unnecessary occupied areas.
Reduction of administrative and indirect work.
Improvement on control and supervision.
Better adjustment to changing conditions.
Better utilization of the workforce, equipment and services.
Reduction of material handling activities and stock in process.
Reduction on parts and quality risks.
Reduction on health risks and increase on workers safety.
Moral and workers satisfaction increase.
Reduction on delays and manufacturing time, as well as increase
in production capacity.
All these factors will not be reached simultaneosly, so the best
solution will be a balance among them.
Lay Out
Introduction
Objectives
Design
Product Layout
Process Layout
Layout for Services
Factors affecting Plant

The final solution for a Plant Layout has to take into account a
Layout
balance among the characteristics and considerations of all
factors affecting plant layout, in order to get the maximum

advantages.
The factors affecting plant layout can be grouped into 8
categories:
Materials
Machinery
Labor
Material Handling
Waiting Time
Auxiliary Services
The building
Future Changes

The factors affecting plant layout can be grouped into
Layout
8 categories:
Materials
The layout of the productive equipment will depend on the

characteristics of the product to be managed at the facility, as
well as the different parts and materials to work on.
Main factors to be considered: size, shape, volume, weight, and
the physical-chemical characteristics, since they influence the
manufacturing methods and storage and material handling
processes.
The sequence and order of the operations will affect plant
layout as well, taking into account the variety and quantity to
produce.

Layout
8 categories:
Machinery
Having information about the processes, machinery, tools and

necessary equipment, as well as their use and requirements is
essential to design a correct layout.
The methods and time studies to improve the processes are
closely linked to the plant layout.
Regarding machinery, we have to consider the type, total
available for each type, as well as type and quantity of tools and
equipment.
Its essential as well to know about space required, shape,
height, weight, quantity and type of workers required, risks for
the personnel, requirements of auxiliary services, etc.

Layout
8 categories:
Labor
Labor has to be organized in the production process (direct

labor, supervision and auxiliary services).
Environment considerations: employees safety, light conditions,
ventilation, temperature, noise, etc.
Process considerations: personnel qualifications, flexibility,
number of workers required at a given time as well as the type
of work to be performed by them.
Material Handling
Material handling does not add value to the product; its just
waste.
Objective: Minimize material handling as well as combining with
other operations when possible, eliminating unnecessary and
costly movements.

Layout
8 categories:
Labor
Labor has to be organized in the production process (direct

labor, supervision and auxiliary services).
Environment considerations: employees safety, light conditions,
ventilation, temperature, noise, etc.
Process considerations: personnel qualifications, flexibility,
number of workers required at a given time as well as the type
of work to be performed by them.
Material Handling
Material handling does not add value to the product; its just
waste.
Objective: Minimize material handling as well as combining with
other operations when possible, eliminating unnecessary and
costly movements.

Layout
8 categories:
Waiting time - Stock
Objective: Continuous Material Flow through the facility,

avoiding the cost of waiting time and demurrages that happen
when the flow stops.
On the other hand, the material waiting to flow through the
facility not always represents a cost to avoid. As stock
sometimes provides safety to protect production, improving
customer service, allowing more economic batches, etc.
Its necessary then to consider space for the required stock at the
facility when designing the layout.
Resting time to cool down or heating up

Layout
8 categories:
Auxiliary Services
Support the main production activities at the plant:
Related to labor: Accessibility paths, fire protection installations,

supervision, safety, etc.
Related to material: quality control.
Related to machinery: maintenance and electrical and water lines.
The auxiliary services represent around 30% of the space at a

facility.
The space dedicated to auxiliary services is usually considered
as waste.
Its important to have efficient services to insure that their indirect

costs have been minimized.

Layout
8 categories:
The building
If it has been already selected, its characteristics will be a

constraint at the moment of designing the layout, which is
different if the building has to be built.
Future changes
One of the main objectives of plant layout is flexibility.

Its important to forecast the future changes to avoid having an
inefficient plant layout in a short term.
Flexibility can be reached keeping the original layout as free as
possible regarding fixed characteristics, allowing the adjustment
to emergencies and variations of the normal process activities.
Possible future extensions of the facility must be taken into
account, as well as the feasibility of production during re-layout.
Lay Out
Introduction
Objectives
Design
Product Layout
Process Layout
Layout for Services
The production process normally determines the type

of plant layout to be applied to the facility:
Fixed position plant layout
Product oriented plant layout
Machinery and Materials are placed following the

product path.
Process oriented plant layout (Functional Layout).
Product stays and resources move to it.
Machinery is placed according to what they do and

materials go to them.
Cell Layout
Hybrid Layout that tries to take advantage of different

layouts types.
Product Oriented LayOut

Espuela de Ferrocarril
Camiones
Camiones
This type of plant layout is useful when the production

process is organized in a continuous or repetitive way.
Continuous flow: The correct operations flow is reached through

the layout design and the equipment and machinery
specifications.
Repetitive flow (assembly line): The correct operations flow will
be based in a line balancing exercise, in order to avoid
problems generated by bottle necks.
The plant layout will be based in allocating a machine as

close as possible to the next one in line, in the correct
sequence to manufacture the product.
Advantages:
Reduced material handling activities.

Work In Process almost eliminated.
Minimum manufacturing time.
Simplification of the production planning and control systems.
Tasks simplification.
Disadvantages:
No flexibility in the production process.

Low flexibility in the manufacturing times.
High capital investment.
Every workstation is critical to the process.- The lack of
personnel or shut down of a machine stops the whole process.
Monotonous work.
a) Flujo en lnea recta
d) Flujo en L
b) Flujo en U
d) Flujo circular en O
c) Flujo en serpentn
e) Flujo en S
Process layout
Espuela de Ferrocarril
Recepcin
Almacn
Materia Prima
Tornos
Planeacin
Esmeriladoras
Embarque
Camiones
Fresadoras
Inspeccin
Almacn
Producto
Acabado
Maquinaria
Automtica
Ensamble
Camiones
Process oriented plant layout (Functional Layout)
This type of plant layout is useful when the production

process is organized in batches.
Personnel and equipment to perform the same function are
allocated in the same area.
The different items have to move from one area to another
one, according to the sequence of operations previously
established.
The variety of products to produce will lead to a diversity of
flows through the facility.
The variations in the production volumes from one period to
the next one (short periods of time) may lead to modifications
in the manufactured quantities as well as the types of
products to be produced.
P-Q Analysis
Definition
Diagram activity relationships
Product
Flow
Chart relationship (flow, functional)

Establish space requirements
Analysis
Space Availability
Diagram space relationships

Synthesis
Practical Limitations
Evaluation
Selection
Adjustment
Project
A
Project
B
Project
C
Evaluate alternative arrangements

Detail selected layout, install
Implementation
Space Availability
Maintenance
QC
Mat. Handling
INSTALACION
SLP Method
Muther (1973)
Cellular Layout
Process
Process(Functional)
(Functional)Layout
Layout
Group
Group(Cellular)
(Cellular)Layout
Layout
A cluster
or cell
T
T
M
M
T
T
M
M
T
T
D
D
CG
SG
D
D
Similar resources placed

together
CG
SG
SG
CG
CG
D
D
SG
Resources to produce similar

products placed together
Work cells
Definition:
Looks for the advantages of product and process

layouts:
Group of equipment and workers that perform a sequence of

operations over multiple units of an item or family of items.
Product oriented layout: Efficiency

Process oriented layout: Flexibility
Group Technology
Grouping outputs with the same characteristics to families, and

assigning groups of machines and workers for the production of
each family.
Lay Out
Introduction
Objectives
Design
Product Layout
Process Layout
Layout for Services
Plant Layout for a Service

Most of the concepts and techniques explained here
Business
can be applied to any plant layout, including services.
Examples: Line Balancing for Restaurant self-services;

Process oriented layout for Hospitals.
Service Businesses have a more direct customer

focus:
Sometimes, the customer is required at the facility for the

company to be able to perform the service.
Frequently, the layout is focused on the customer satisfaction
than on the operation itself.
Some of the objectives include comfortability during the
performance of the service, as well as making attractive
those areas in direct contact with the customer.

Service Businesses have a more direct customer
Business
focus:
The customer, with his/her presence, creates the work flow.
The workload forecast and the activities planning is not as

accurate as it is in a manufacturing environment.
Queues:
Seasonal and heterogeneous demand: execution time can be

variable.
Services are intangible: adjustment between demand and production
can not be done through inventory management.
Queues are formed by people: higher implications for the layout.

Plant layout for an office:
Business
The material that flows among departments and workstations

is basically information. This can be done through:
Individual conversations face to face.

Individual conversations through telephone or computer.
Mail and other physical documents.
Electronic mail.
Meetings and discussion groups.
Interphones.
The layout solution is dictated by workers and physical

documentation movements.

Plant layout for a commerce:
Business
Objective: Maximize the net benefit per m2 of shelves.

If sales are directly related to the exposition of products to the
customer, the objective will consist of exposing as many
products as possible to the customers in the available space.
This has to take into account to leave enough space for the
movement among shelves, not making the layout uncomfortable
for the customer.
Aspects:
Allocation of daily consumption products at the periphery.Allocation of impulsive purchase and high profit margin products
in prominent places.
Eliminate aisles that allow the customers to go from one row to
other without going through them completely.

Plant layout for a commerce:
Business
Aspects:
Global organization of the available space:
Allocation of attraction products on both sides of a row, and

dispersion of them to increase the exposition of adjacent products.
Use the end of a row as a place for exposition.
Creation of the business image through a careful selection of the first
section where the customers are getting into the facility.
Allocation of products in the exposition areas:
This aspect remains within the commercial function. It is called

merchandising.
Three Retail Layout Patterns

Grid
Rectangular with parallel
aisles; formal; controls
traffic flow; uses selling
space efficiently.
Free-Form
Free-flowing; informal;
creates "friendly"
environment; flexible.
Boutique
Divides store into a series
of individual shopping
areas, each with its own
theme; unique shopping
environment.
Cafetera
Cafetera
Plant Layout for a Warehouse
Objective: Optimal relationship between space and material handling costs.
Aspects to be considered: cubic space utilization, storing equipment and methods,

material protection, allocation of different parts, etc.
A warehouse layout is more complicated when:
The different customer orders take into account a high number of references.
There are frequent orders of low number of units for the same product.
In this cases, the material handling costs for each roundtrip move would be excessively
high.
Solutions for this problem: Aggregation Zones
of units for several
orders, Control
or establishment of
Zones
station
optimal routes for each order.
Click to add title
Shipping
doors
Tractor
trailer
Tractor
trailer
Feeder
lines
Feeder
lines
Overflow
Lay Out
Introduction
Objectives
Design
Product Layout
Process Layout
Layout for Services
Systematic Layout
Planning
P-Q Analysis
Definition
Diagram activity relationships
Product
Flow
Chart relationship (flow, functional)

Establish space requirements
Analysis
Space Availability
Diagram space relationships

Synthesis
Practical Limitations
Evaluation
Selection
Adjustment
Project
A
Project
B
Project
C
Evaluate alternative arrangements

Detail selected layout, install
Implementation
Space Availability
Maintenance
QC
Mat. Handling
INSTALACION
SLP Method
Muther (1973)
Process oriented plant layout
Its essential to design a flexible plant layout, taking into

account as well the need of flexibility for the material
handling equipment to be used.
Main disadvantage of this layout:
Low operations and material handling efficiency when

comparing to a plant layout oriented to the product.
On the other hand, technology development is facilitating
getting over this disadvantage (i.e.- CNC Equipment).
Analysis
Decision to be made: Relative location of the different working

areas (same type of equipment).
Criteria: reduction of distance and material handling costs:
Increase of operations efficiency.
Analysis
If it exists a clear material flow that carries out more volume

than anyone else, the layout could be similar to a Product
oriented plant layout.
The main factor for the analysis is the material handling and
transportation costs among the different working areas.
Sometimes, quantitative information relative to material
handling flows is not available, or its not the main factor to be
considered, being the qualitative factors the most important
ones in this case.
Analysis
Process:
Information gathering.
Plan development.
Quantitative criteria: transportation costs.
Qualitative criteria: closeness priorities.
Information gathering
We have to know the space requirements by working area.
Demand forecast production plan working hours number of

workers and equipment.
Consider demand and production fluctuations.
Analysis
Working area space.

Static area (Se): Physical space for equipment and
workstations.
Gravitation area (Sg): Allocation of tools and materials.
Area where operators develop their work.
Evolution area (Sv): Space to allow operators and
material movements.
St=Se+Sg+Sv
Sg=Se*n
n=number of accessible sides
Sv=(Se+Sg)*k
k=industry coefficient (0,05-3)
Analysis
Available space.
Total available area at the plant.
Divide the area at a first approach to estimate each
section.
When performing the detailed layout, its required to have
more accurate shapes adjusted to the reality.
When the objective is the reduction of material handling
costs, we can solve the problem in quantitative terms:
Its required to know the material flow among departments
or areas, distances among them and means of
transportation.
Analysis
When the objective is the reduction of material handling

costs, we can solve the problem in quantitative terms:
Traffic intensity matrix: Number of material handling
moves among departments (information provided by
historical data, route sheets and production plans).
Distance matrix: Distances among areas at the plant and
places where the different working areas could be
allocated.
Cost matrix: Cost of material transportation.- It depends
on the type of equipment to be used.
Analysis
Sometimes, quantitative information is not available, or the

importance of distance among areas depends on qualitative
factors (i.e.- a hospital X-ray room may be close to the
trauma medicine room).
Plan development
Once the size of the different areas have been determined,

the next step is to organize the different areas within the
existent facility, or to determine the desired shape for the
facility construction.
There are multiple possible solutions, so the selected one
will be the a good one that complies with the max. number of
constraints.
P-Q Analysis
Quantity
Product
Layouts
Fixed
Position
Layouts
Mixed Layouts
Number of Different Products
Process Layouts
DIRTY
EMPTY
BOTTLES
QC
WAREHOUSE
WASHER
UNCASER
FILLER/
CROWNER
PASTEURIZER
MANUAL
SIGHTING
EBI
COMPLEMENTARY ACTIVITIES
BI-DIRCTIONAL TABLE
MANUAL
SIGHTING
FGI
LABELLER
COMPLEMENARY ACTIVITIES
LABELLER
MANUAL PACKING
PALLETIZER
PACKER
PACKER
WAREHOUSE
DISTRIBUTOR
CUSTOMERS
Analysis
Quantitative criteria: Transportation costs.
With the information gathered in the previous 3 matrixes, the

objective is to minimize the transportation costs.
Total Transportation Cost:
TTC=
tij dij cij
Objective: Finding the combination of dij that minimizes TTC.

This formula is complicated for common cases, due to the
number of different possibilities (i.e.- for 10 sections, the
alternatives would be 3,628,000).
Analysis
Use of heuristics: Algorithm of basic transposition

Initial arbitrary layout: base permutation.
Transportation cost calculation for this layout.
Generation of all possible permutations among activities,
interchanging the ones in the initial arbitrary layout 2 to 2:
Number of permutations =(n*(n-1))/2
Transportation cost calculation for each of the generated

permutations: If we get one with a lower cost than the
base, this last one becomes the base permutation and the
process starts again until there is no one with a lower cost.
Analysis
In practice, we have to take into account certain constraints

and circumstances that have to be considered, apart from the
quantitative criteria of the transportation costs.
Once this information is taken into account, the next step will
be to perform the spatial design of the different departments.
Analysis
Qualitative criteria: Closeness priorities.
Technique: Systematic Layout Planning (SLP)

Closeness priorities have a letter code:
Analysis
Technique: Systematic Layout Planning (SLP): Example.
Analysis

S1
S2
S3
S4
S5
S6
Initial Diagram
Analysis
S1
S3
S2
S5
S6
S4
First iteration
Analysis
S3
S4
S1
S2
S6
S5
Second iteration (might be the optimum)
Detailed layout
Equipment and machinery layout within each area or

department, getting a detailed layout of installations and all
elements.
There could appear some issues like scales, elevators, columns,
floor resistance, roof height, etc. not considered in previous
stages, that could make necessary the review of the solution.
Cellular Layout
Work cells
Definition:
Looks for the advantages of product and process

layouts:
Group of equipment and workers that perform a sequence of

operations over multiple units of an item or family of items.
Product oriented layout: Efficiency

Process oriented layout: Flexibility
Applies the principles of Groups Technology to

Manufacturing:
Grouping outputs with the same characteristics to families, and

assigning groups of machines and workers for the production of
each family.
Work cells

Manufacturing:
Sometimes, these outputs will be final products or services;

some other times, they will need to integrate to a final product.
In this case, the work cells would need to be located close to the
main production line, to facilitate the assembly of the component at
the moment and place required.
Real Work Cells: the grouping of workers and equipment is a

fact:
At the same time as identifying family of products and grouping of

equipment, its essential to perform an internal layout of the cell (by
product, by process or a combination of bothgenerally by product).
Work cells

Manufacturing:
Virtual Work Cells: identifying and dedicating certain equipment

to the production of certain families of outputs, but without
grouping them physically within the cell:
The only issue is the identification of equipment and families of

products, without performing an internal layout of the cell.
Residual Work Cells: only used when there is a specific item that
has not been associated to any family, or a specialized
equipment can not be included within a work cell due to its
general use.
Advantages: lower production cost and better supply and
customer service time.
Work cells

Manufacturing:
Steps to follow:
Select product families.

Determine work cells.
Detail the work cells internal organization or layout.
Regarding product grouping to be produced at the same work

cell, we need to determine which is the condition that allows
such grouping.
Once product families are determined, creating a work cell for
each family might be the best solution, although is not always
like that (sometimes its even impossible).
Work cells

Manufacturing:
Approaches used to identify families and work cells:
Classification and codification of all items to be manufactured, and

comparison among them to define families. After that, its required to
identify the cells and equipment to manufactured those families.
Creation of work cells by grouping of equipment. In this case, we still
need to define the families.
Definition of families by similar manufacturing routes. Still pending
the cells identification.
Simultaneous identification of families and cells, based on the
similarity of products and their needs of equipment and vice versa.
Work cells

Manufacturing:
A component that does not use all machines within its work cell
can be accepted, as well as a machine that does not process all
components in its group.
However, its essential to avoid that a component or machine
interacts with other machine or component outside of its cell.
If its not possible avoid this situation, the solution will be duplicating
the piece of equipment, or process the item in more than one cell.Sometimes a residual cell might be needed to absorb a component
like this or to include a general type of equipment that we can not
duplicate.
Work cells

Manufacturing:
In general, the steps to follow to reorganize the layout will be:
Incompatible equipment must be located in separate cells.

Each component should be produced only in 1 cell.
Each type of equipment should be located only in 1 cell.
Investment in duplicating equipment should be minimized.
The work cell should be limited to a reasonable size.

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Facility Layout

Facility Layout Planning

Layout for Services

Plant layout planning includes decisions regarding the physical

An economic activity center is any entity occupying space.

Facility layout techniques apply to the case where several physical

Example: space requirements/cost per m2 in Malls;

To make a decision about layout planning, 4 different

Which centers do we have to consider?

How must the space be configured at each center?

If there is not enough space, productivity may be reduced.

Where should each center be located at within the facility?

The allocation of the different centers may affect productivity.

The plant layout process starts at an aggregate level, taking into

The reasons for a re-layout are based on 3 types of

Changes in production volumes.

The frequency of the re-layout will depend on the

Symptoms that allow us to detect the need for a re-layout:

Congestion and bad utilization of space.

Layout for Services

Facility Layout Definition

A facility layout is an arrangement of everything

layout design generally

Mixed Layouts Process Layouts

Number of Different Products

Objectives of Plant Layout

The main objective consists of organizing equipment

Minimum Movement of people, material and

The feeling of being a unit pursuing the same objective.

In the movement of materials and personnel work flow.

In designing the plant layout taking into account the changes

Objectives of Plant Layout

These main objectives are reached through the attainment of the

Layout for Services

Factors affecting Plant

factors affecting plant layout, in order to get the maximum

Factors affecting Plant

The layout of the productive equipment will depend on the

Factors affecting Plant

Having information about the processes, machinery, tools and

Factors affecting Plant

Labor has to be organized in the production process (direct

Factors affecting Plant

Labor has to be organized in the production process (direct

Factors affecting Plant

Waiting time - Stock

Objective: Continuous Material Flow through the facility,

Resting time to cool down or heating up

Factors affecting Plant

Support the main production activities at the plant:

Related to labor: Accessibility paths, fire protection installations,

The auxiliary services represent around 30% of the space at a

Its important to have efficient services to insure that their indirect

Factors affecting Plant

If it has been already selected, its characteristics will be a

One of the main objectives of plant layout is flexibility.

Layout for Services

Types of Plant Layout

The production process normally determines the type

Fixed position plant layout

Product oriented plant layout

Machinery and Materials are placed following the

Process oriented plant layout (Functional Layout).

Product stays and resources move to it.