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Whether your company is looking to incorporate new processing equipment, expand facilities or integrate

a data collection system into your existing, expanded, or planned facility, IMEC can help you realize the
maximum benefit from your efforts.

Proper Facilities Layout includes optimally locating equipment, materials, people, infrastructure and data
collection points to minimize movement, handling and travel distance of the material and labor while
increasing overall productivity.

Develop and/or verify a baseline drawing

IMEC and a team of your employees will develop and/or verify a baseline drawing of your existing facility,
to include, if applicable:

Production area drawing will show production equipment, personnel, locations and routing of
primary utilities (electrical, pneumatic, vacuum, coolant, data, etc.), lighting, cranes, column
locations, transportation aisles, material storage areas, docks, doors
Warehouse/shipping will show racks, columns, aisles, electrical, material handling equipment,
computer workstations, data collection points, printers, inventory location and quantities
Data infrastructure, electrical, personnel locations, solid and partition walls, common equipment
(copiers, printers, etc.),
Facilitate employee input meetings
IMEC will facilitate meetings with your company’s management team and targeted floor personnel, to gain
input and identify the facilities layout requirements with regard to:
• Product/process flow
• Facility / infrastructure
• Data transfer
• Equipment
• Inventory levels and management
Develop, design and present potential new layout(s)
IMEC and your team of key employees will work to improve the process flow and efficiency based upon
underlying principles of lean manufacturing and process flow efficiency. Efforts will focus on dock
locations, equipment configurations, inventory management and handling practices, and expansion. The
team will develop facilities layout options, showing the current operation best arranged within the facility,
and offer recommendations to accommodate future growth.
At the conclusion of our efforts, you will receive a baseline drawing and two to four alternative layout
options with process flow documentation, including all documentation and drawings in both electronic and
paper form. IMEC’s thorough approach to Facilities Layout will help you realize your objectives of more
efficient utilization of people, resources and information leading to increased productivity and decreased
Slide1: Section Objectives After completing this section, you should be able to: 1. List some of the different reasons
for redesign of layouts. 2. Identify the inputs to facility layout decisions. 3. Distinguish between the four basic types of
facility layouts. 4. List the primary advantages and limitations of both product and process layout. 5. Develop
appropriate process layouts. 6. Solve line balancing problems. 7. Describe new layout approaches.

Slide2: Facility Layout The optimum placement or arrangement of space-consuming components within a productive
system. The space-consuming components are: machines materials manpower The benefits of a good layout
include: smooth material flow reduced inventories better scheduling effective space utilization fewer production
bottlenecks reduced material handling costs

Slide3: Inputs to Facility Layout 1. Output (product / service) design - product or service design affects the layout of a
facility. Design issues that have to be considered include: Dimensions / weights of components Perishability /
obsolescence Customer interaction requirements 2. Capacity Design - capacity design affects layout by determining
the: output rate and output flexibility, and the level of capital intensity 3. Process Design - the way a product or service
is produced will influence layout. Design issues include the: Sequence of processing operations for each output
Processing equipment required for each operation Floor space requirements for equipment Inventory storage
requirements for raw materials, work-in-progress, and finished goods

Slide5: General Classification of Layouts Product (Flow Shop) Layout The physical components are arranged
according to the progressive stages by which the product / service is provided. e.g. assembly lines, cafeterias. Layout
built around a product that seeks the best personnel and machine utilization through repetitive or continuous
production. Process (Job Shop) Layout The physical components are arranged, or grouped, according to the general
function they perform, without regard to specific products / services provided. e.g. metal fabricators, hospitals,
cafeterias. A layout that deals with low-volume, high-variety production. Fixed-Position Layout The product, because
of its bulk or weight, remains in one location. All physical components are moved to the location where the product is
being produced. e.g. shipyards, buildings. Layout that address the requirements of stationary projects or large, bulky
projects. Group Technology Layout Dissimilar machines are grouped into work centres in order to work on products
with similar shapes and processing requirements. e.g. aircraft manufacturing. It is basically a hybrid product / process

Slide7: Characteristics of Product and Process Layouts Characteristics Product Layout Process Layout Work Flow
Fixed Variable Output Mix Small, standard Variable Output Volume High Moderate / low Inventories: Raw materials
High Low Work-in-progress Low High Finished goods High Low Floor Space Utilization High Low Capital Costs High
Low Materials Handling Mechanized Labour intensive Output Costs: Fixed costs High Low Direct labour Low High
Direct materials Variable High

Innovations at McDonald’s: Innovations at McDonald’s Indoor seating (1950s) Drive-through window (1970s)
Adding breakfast to the menu (1980s) Adding play areas (1990s) Three out of the four are layout decisions!

Slide9: Fifth major innovation Sandwiches assembled in order Elimination of some steps, shortening of others No
food prepared ahead except patty New bun toasting machine and new bun formulation Repositioning condiment
containers Savings of $100,000,000 per year in food costs McDonald’s New Kitchen Layout

Slide10: McDonald’s New Kitchen Layout

Slide11: Objectives for Facility Layouts Objectives for Manufacturing Operation Layouts Provide enough productive
capacity Reduce materials-handling costs Conform to site and building constraints Allow space for production
machines Allow high labour, machine and space utilization and productivity Provide for volume and product flexibility
Provide space for restrooms, cafeterias and other personal-care needs Provide for employee safety and health Allow
ease of supervision Allow ease of maintenance Control capital investment

Slide12: Additional Objectives for Warehouse Operation Layouts Promote efficient loading and unloading of shipping
vehicles Provide for effective stock picking, order filing and unit loading Allow ease of inventory counts Promote
accurate inventory recordkeeping Additional Objectives for Service Operation Layouts Provide for customer comfort
and convenience Provide an appealing setting for customers Allow an attractive display of merchandise Reduce
travel of personnel or customers Provide for privacy in work areas Promote communication between work areas
Provide for stock rotation for shelf life Additional Objectives for Office Operation Layouts Reinforce organization
structure Reduce travel of personnel or customers Provide for privacy in work areas Promote communication
between work areas Objectives for Facility Layouts - continued

Supermarket Retail Layout: Supermarket Retail Layout Objective is to maximize profitability per square foot of floor
space Sales and profitability vary directly with customer exposure Five Helpful Ideas for Supermarket Layout Locate
high-draw items around the periphery of the store Use prominent locations for high-impulse and high-margin items
Distribute power items to both sides of an aisle and disperse them to increase viewing of other items Use end-aisle
locations Convey mission of store through careful positioning of lead-off department

Supermarket Retail Layout: Supermarket Retail Layout

Slide15: Product Layout for a Bread Bakery Milling Mixing Baking Cutting Packaging Raw Material Bread Note the
logical sequence of operations

Slide16: Process Layout for a Hospital Admissions General Ward Intensive Care X-Ray Surgery Laboratory Kitchen
Emergency Maternity Ward Labour Room Delivery Room Children's Ward

Slide17: Process Layouts: It’s All About Flows Resource Flows of Importance: 1. Manufacturing systems - material
flows 2. Administrative offices - personnel flows 3. Hospital flows - patient, staff flows 4. Postal service - customer,
mail flows 5. Restaurants - customer, staff flows Advantages of Process Layouts: 1. Systems can handle a variety of
processing requirements. 2. System not vulnerable to equipment failure. 3. General-purpose equipment is less costly
than the specialized equipment used in product layouts and is easier to maintain. 4. Possible to use individual
incentive systems. Disadvantages of Process Layouts: 1. In-process inventory costs are high. 2. Routing and
scheduling are difficult.

Slide18: 3. Equipment utilization rates are low. 4. Material handling is slow and inefficient and more costly per unit
than under product layouts. 5. Job complexities often reduce the span of supervision and result in higher supervisory
costs than product layouts do. 6. Special attention for each product or customer (routing, scheduling, machine setups,
and so on) and low volumes result in higher unit costs than with product layouts. 7. Accounting, inventory control and
purchasing are much more involved than under product layouts. Designing Process Layouts Main issue in the design
of process layouts concerns the relative positioning of the departments involved. Process layouts features: 1. Some
departments benefit from adjacent locations. 2. Some departments must be kept separate. 3. External factors such
as the location of entrances, loading docks, elevators, windows, and areas of reinforced flooring have to be
considered. 4. Flow costs for material and personnel within the building are critical.

Slide19XijCij where: n = number of work centres or departments i,j = individual departments Xij = number of moves
between department i and department j Cij = cost of a move between department i and department j Step 5: Try to
improve this layout by trial and error or by use of a computer program. Step 6: Prepare a detailed plan considering
space or size requirements of each department. Σ: Steps for Process Layout Step 1: Construct a “from-to-matrix
showing the flow of parts or materials from department to department. Step 2: Determine the space requirements for
each department. Step 3: Develop an initial schematic diagram showing the sequence of departments through which
parts will have to move. Try to place departments with a heavy flow of materials or parts next to one another. Step 4:
Determine the cost of this layout by using the following equation: Minimize cost =

Slide23: Small Toy Assembly 5 Mechanism Assembly 8 Shipping and Receiving 1 Large Toy Assembly 6 Metal
Forming 3 Plastic Mldg. / Assb. 2 Sewing 4 Painting 7 A final, feasible solution after several iterations Step 6 Process
Layout Illustration - Minimizing Flow Costs for a Toy Company

Slide24: Process Layout Illustration - Systematic Layout Planning Even though the approach of minimizing flow costs
is widely used, it suffers from the limitation of being able to focus on only one objective, and many situations involve
multiple criteria. A more general approach, systematic layout planning (SLP), allows for subjective input from analysts
or managers to indicate the relative importance of each combination of department pairs. The following is an example
of SLP for the floor of a department store: From Credit dept 2. Toy dept. 3. Wine dept. 4. Camera dept. 5. Candy
dept. To 2 3 4 5 I U A U 6 --- 1,6 --- U I A --- 1 1,6 A E 2,3 1 X 1 Area (sq. ft.) 100 400 300 100 100 Letter Number
Closeness Rating Reason for Rating

Slide25: Reason Type of customer Ease of supervision Common personnel Contact necessary Share same space
Psychology Code 1 2 3 4 5 6 5 2 4 1 3 Initial layout based upon relationship requirements (ignoring space and
building constraints) 2 4 3 1 5 20 ft. 50 ft. Final layout adjusted by square footage and building size

Slide26: Product Layout These are layouts used to achieve a smooth and rapid flow of large volumes of products or
customers through a system. The main characteristics of product layouts: Standardized products requiring
standardized processing Job divided into a series of tasks Specialization of labour and equipment Substantial
investment in equipment and in job design Each item follows the same sequence of operations

Slide27: Work flow End Begin Materials and/or labour Materials and/or labour Materials and/or labour Materials
and/or labour Product Layout: The Assembly Line OMFloor Animation

Slide28: Main Advantages of Product Layouts 1. High rate of output 2. Low unit costs as fixed costs of specialized
equipment spread over many units. 3. Labour specialization reduces training costs and time. 4. High utilization of
labour and equipment. 5. Routing and scheduling are included in the initial design of system and do not require much
attention once the system is in operation. 6. Accounting, purchasing and inventory control are fairly routine. Primary
Disadvantages of Product Layouts 1. Division of labour usually creates dull, repetitive jobs with little opportunity for
advancement and may lead to morale problems. 2. System is inflexible in response to changes in volume of output or
changes in product or process design. 3. System is susceptible to shutdowns caused by equipment breakdowns or
employee absenteeism. 4. Preventative maintenance, the capacity for quick repairs and spare parts inventories are
necessary expenses.

Slide29 time for task i Cycle time Step 4: Perform the line balance by assign specific assembly tasks to each
workstation. An efficient balance is one that will complete the required assembly, follow the specified sequence, and
keep the idle time at each workstation to a minimum. Cycle time = Minimum number of works : Steps in Product
Layout Step 1: Develop the precedence diagram showing the sequence and performance times for each task. Step 2:
Calculate cycle time to meet the output requirement. Take the demand per day and divide it into the productive time
available per day (in minutes or seconds). productive time Demand per day or production rate per day Step 3:
Determine the theoretical minimum number of workstations. This is the sum of all task times divided by the cycle
time. Fractions are rounded to the next higher whole number. tations =

Slide30: Line-Balancing Heuristics (Rules of Thumb) Rule Meaning

Slide31: The problem: Pproduce 500 Model J Wagons per 8-hour day Setup time and work breaks total 45 minutes
Production time available = 480 – 45 = 435 minutes Assembly steps and times for the Model J Wagon are given
below: A B C D E F G H I J K Position rear axle support and hand fasten 4 screws to nuts Insert rear axle Tighten rear
axle support screws to nuts Position front axle assembly and hand fasten with 4 screws to nuts Tighten front axle
assembly screws Position rear wheel #1 and fasten hub cap Position rear wheel #2 and fasten hub cap Position front
wheel #1 and fasten hub cap Position front wheel #2 and fasten hub cap Position wagon handle shaft on front axle
assembly and fasten bolt and nut Tighten bolt and nut Time Task Task Description 45 11 9 50 15 12 12 12 12 8 9 195
A A,B D A,B,C A,B,C D,E D,E A,B,C,D,E,F,G,H,I J Tasks That Must Precede Assembly Line Balancing Illustration

Slide32: A B C F G D E H I J K Step 1: Draw the precedence diagram 45 11 9 50 15 12 12 12 12 8 9 Assembly Line

Balancing Illustration

Slide33: Step 2: Calculate the cycle time Cycle Time = time available / output required = 435 minutes / 500 units =
0.87 minutes = 52.2 seconds Step 3: Calculate the minimum number of workstations Minimum number of work
stations = total task time / cycle time = 195 seconds / 52.2 seconds = 3.74 = 4 stations Step 4: Balance the line using
the following heuristics (rules of thumb): According to Greatest-Number-of-Following-Tasks rule According to the
Longest-Operating-Time rule Assembly Line Balancing Illustration

Slide34: Station 1 Station 2 Station 3 Station 4 Station 5 A D B/E/C/F G/H/I/J K 45 50 11/15/9/12 12/12/12/8 9 7.2 2.2
41.2/26.2/17.2/5.2 40.2/28.2/16.2/8.2 43.2 None None C,E/C,H,I/F,G,H,I/None H,I/I/J/None None C,E/C/F,G,H,I H,I
Workstation Task Task Time Idle Time Feasible Remaining Tasks Tasks With Most Followers Step 4: Balancing the
line using the Greatest-Number-of-Following-Tasks rule: Assembly Line Balancing Illustration

Slide35: Station 1 Station 2 Station 3 Station 4 D A E/H/I/B C/F/G/J/K 50 45 15/12/12/11 9/12/12/8/9 2.2 7.2
37.2/25.2/13.2/2.2 43.2/31.2/19.2/11.2/3.2 None None H,I,B/I,B/B/None F,G/G/J/K E/H/I/B C/F/G/J/K Workstation
Task Task Time Idle Time Feasible Remaining Tasks Tasks With Longest Operating Time Efficiency of the line = total
task time / (number of stations * cycle time): Step 4: Balancing the line using the Longest-Operating-Time rule:
Efficiency of line balance using the greatest-number-of-following-tasks rule = 195 / (5 x 52.2) = .747 = 74.7%
Efficiency of the line using the longest -operating-time rule = 195 / (4 x 52.2) = .934 = 93.4% Assembly Line
Balancing Illustration

Slide36: Production Lines: Western vs. Japanese Western 1. Top priority: line balance 2. Strategy: stability - long
production runs. Rebalancing seldom occurs 3. Assume fixed labour assignments 4. Use inventory buffers to cushion
effect of equipment failure 5. Plan to run at fixed rate:. Send quality problems off line 6. Linear or L-shaped lines 7.
Material movement by conveyor is desirable 8. Buy “supermachines” and keep them busy on a continuous basis 9.
Applied in labour-intensive final assembly 10. Run mixed models where labour content is similar from model to model
Japanese 1. Top priority: flexibility 2. Strategy: flexibility - expect to rebalance often to match output to changing
demand 3. Flexible labour: move to current workload 4. Employ maximal preventive maintenance to keep equipment
from breaking down 5. Slow for quality problems: speed up when quality is right 6. U-shaped or parallel lines 7. Put
stations close together and avoid conveyors 8. Install small machines: add more as needed 9. Applied even to
capital-intensive subassembly 10. Strive for mixed-model production, even in subassembly and fabrication
Slide37: Characteristics of Japanese Manufacturing Layouts Chief Objective: Manufacturing flexibility to give the
ability to modify production rates quickly and to change to different models. Means of Achieving Objective: 1. Workers
trained at many jobs. 2. Large investment in preventative maintenance. 3. Workers encouraged to solve production
problems as they arise. 4. Workers and machines shifted as needed to solve production problems. 5. Production lines
stopped or slowed when machine breakdowns or quality problems occur. 6. Little inventory carried. 7. Work stations
placed close together. Appearance of Layouts: 1. Small manufacturing floor plans. 2. Compact and tightly packed
layouts. 3. Large percentage of floor space utilized for production. 4. U-shaped production lines.

Slide38: Process Layout - Additional Illustration # 1 A small printing shop wishes to locate its seven departments in a
one-floor building that is 40 units wide and 50 units long. Department sizes are : Department Length (units) Width
(units) Layout 10 10 Cutting 20 10 Shipping 10 10 Supply Storage 20 15 Printing 25 20 Binding 20 20 Art 20 20 The
average number of loads flowing between departments is expected to be: From Dept Layout Cutting Shipping Supply
Storage Painting Binding Art Layout --- --- --- --- --- --- --- Cutting --- --- --- 100 --- 400 --- Shipping --- --- --- 500 --- ---
--- Supply Storage --- 600 100 --- 400 100 --- Printing --- --- --- --- --- 1200 100 Binding --- 100 1000 --- 200 --- --- Art
--- 100 --- --- 100 --- --- What is your layout recommendation?

Slide39: Process Layout - Additional Illustration # 2 Eight work centres must be arranged in an L-shaped building.
The location of centres A and E are designated as shown in the accompanying diagram. Assuming transportation
costs are $2 per load per metre, develop a suitable layout that minimizes transportation costs using the information
below. From / To A B C D E F G H A -- 40 40 60 120 80 100 110 B -- 60 40 60 140 120 130 C -- 45 85 40 70 90 D --
40 50 40 45 E -- 90 50 40 F -- 40 60 G -- 60 H -- A * B C D E * F G H From / To A B C D E F G H A -- 10 5 90 365 135
125 0 B 0 -- 140 10 0 35 0 120 C 0 220 -- 110 10 0 0 200 D 0 110 240 -- 10 0 0 170 E 5 40 100 180 -- 10 40 10 F 0
80 40 70 0 -- 10 20 G 0 45 20 50 0 40 -- 20 H 0 0 0 20 0 0 0 -- Loads per day * cannot be moved Distances (metres)

Slide40: Process Layout - Additional Illustration # 3 Hercules Manufacturing, a producer of corrugated cardboard
boxes, is planning a 3600 square foot layout. The operations manager has obtained SLP ratings for locating
departments next to each other. From / To Storage Corrugator Folder/Gluer Taper/Bailer Inspection Shipping Storage
--- AN U U I U Corrugator --- --- I U U X Folder/Gluer --- --- --- AN I U Taper/Bailer --- --- --- --- U I Inspection --- --- ---
--- --- AN Shipping --- --- --- --- --- --- AN = Absolutely Necessary I = Important U = Unimportant X = Undesirable
Area(sq.ft.) 1200 400 400 400 400 800 What should be the layout used by Hercules Manufacturing?

Slide41: Product Layout - Additional Illustration # 1 Rival Manufacturing Company, a producer of can openers, has to
balance its assembly line. Given below are the work elements, their times and their precedence requirements: Work
Element Time (sec.) Precedence A 30 -- B 60 A C 70 A D 50 A E 20 A F 40 A,B,C G 50 A,C H 50 A,B,C,D,E,F,G 370
Demand per day is 400 can openers. Working time per day is 8 hours. a. Draw the precedence diagram. b. What is
the theoretical number of work stations? c. What is the minimum number of work stations needed to achieve a cycle
time of 70 seconds, using the greatest-number-of-following-tasks rule? d. What is the minimum number of stations
needed to meet a cycle time of 100 seconds, according to the longest-operating-time rule? e. What are the balance
delays in parts (c) and (d) ?