 Product/Service design

 Demand Forecasting & Capacity Planning

 Facility Location & Layout
 Aggregate Planning
 Master Production Schedule & MRP
 Inventory Control
 Quality Control
 Scheduling
 Product/Service design
 Demand Forecasting & Capacity Planning
 Facility Location & Layout
 Aggregate Planning
 Master Production Schedule & MRP
 Inventory Control
 Quality Control
 Scheduling
Facility Layout
 What is Layout Planning
◼ Layout planning is determining the best physical
arrangement of resources within a facility

◼ Facility resource arrangement can significantly affect

productivity
 Objective of layout design
1. Facilitate attainment of product or service quality
2. Use workers and space efficiently
3. Avoid bottlenecks
4. Minimize unnecessary material handling costs
5. Eliminate unnecessary movement of workers or
materials
6. Minimize production time or customer service time
7. Design for safety
 Types of Layouts
◼ Four basic layout types consisting of;
◼ Product layouts - Designed to produce a specific
product efficiently
◼ Process layouts - Group similar resources together
◼ Fixed-Position layouts - Product is too large to move;
e.g. a building, Aeroplane, Ship
◼ Hybrid layouts or Group Technology Layouts - Combine
aspects of both process and product layouts
Product Layout
 Product Layouts
◼ Product layout unique characteristics are:
◼ Resources are specialized
◼ High capital intensity
◼ Low flexibility relative to the market
◼ Processing rates are faster
◼ Material handling costs are lower
◼ Lower space requirements
 Product Layouts
◼ Product layout unique characteristics are:

◼ Creates dull, repetitive jobs

◼ Highly susceptible to shutdowns

◼ Needs preventive maintenance

 Process Layouts
G G G G M M M M L L L L

G G G G M M M M L L L L

G G G G M M M M L L L L

Drilling Drilling
Boring Boring Heat Treatment
Machines Machines Plant Drilling Drilling

Drilling Drilling
 Process Layouts
◼ Process layout unique characteristics include:
◼ General purpose & flexible resources
◼ Facilities are more labor intensive
◼ Lower capital intensity & automation
◼ Processing rates are slower
◼ Material handling is slow and costs are higher
◼ Scheduling resources & work flow is more complex
◼ Space requirements are higher
 Process Layouts
◼ In-process inventory costs can be high

◼ Challenging routing and scheduling

◼ Equipment utilization rates are low

◼ Complexities often reduce span of supervision

◼ Special attention for each product or customer

◼ Accounting and purchasing are more involved

Fixed-Position Layout
 Fixed-Position Layout
◼ Used when product is large
◼ Product is difficult or impossible to move, i.e. very
large or fixed
◼ All resources must be brought to the site
◼ Scheduling of crews and resources is a challenge
◼ Examples: Ship building, Rocket launch etc.,
Hybrid Layouts
◼ One of the most popular hybrid layouts uses Group
Technology (GT) and a cellular layout
◼ GT has the advantage of bringing the efficiencies of a
product layout to a process layout environment

© Wiley 2007
Hybrid or GT Layouts
Process Flows after the Use of GT Cells
 Hybrid or GT Layouts
◼ Advantages of both product & process layouts
◼ Maintain some of the efficiencies of product layouts

◼ Maintain some of the flexibility of process layouts

 Designing Process Layouts

A B C
Radiology Laboratory Lobby & Waiting
300 sq. ft.
400 sq. ft. 300 sq. ft.

D E F
Examining Rooms Surgery & Recovery Physiotherapy
800 sq. ft. 900 sq. ft. 1050 sq. ft.
 Designing Process Layouts
◼ Step 1: Gather information:
◼ Space needed, space available, importance of proximity
between various units (Relationship charts)
◼ Step 2: Develop alternative block plans:
◼ Using trial-and-error or decision support tools
◼ Step 3: Develop a detailed layout
◼ Consider exact sizes and shapes of departments and work
centers including aisles and stairways
◼ Tools like drawings, 3-D models, and CAD software are
available to facilitate this process
 Process Layout Steps
◼ Step 1: Gather information like space needed, from-to matrix,
and REL Chart for Father Memorial Hospital, Kozhikode (total
space 3750 sq. ft.)

A B C
Radiology Laboratory Lobby &
Waiting
400 sq. ft. 300 sq. ft. 300 sq. ft.

D E F
Examining Surgery & Physical
Rooms Recovery Therapy
800 sq. ft. 900 sq. ft. 1050 sq. ft.
Step 1: Gather Information (continued)
Step 1: Gather Information (continued)

© Wiley 2007
Step 2: Develop a New Block Layout
◼ Use trial and error with
from-to and REL Charts as a guide
◼ Use computer software like ALDEP
or CRAFT

© Wiley 2007
 Decision Support Tools
◼ Trial and error method good for simple problems
◼ Layout problems are combinatorial,
◼ This problem has 6! Options (6*5*4*3*2*1 = 720
options)
◼ Computer programs are available as decision support
tools
◼ ALDEP based on REL and CRAFT based on from-to
matrix
 Designing Product Layouts
◼ Product layouts are different than process layouts
◼ Product layouts provide for sequential product movement
that enhances efficiency
◼ Designing product layouts requires consideration of
◼ Sequence of tasks to be performed by each workstation
◼ Logical order
◼ Speed considerations – line balancing
 Designing Product Layouts
◼ Line Balancing is the process of assigning tasks to
workstations in such a way that the workstations have
approximately equal time requirements

◼ Cycle time is the maximum time allowed at each

workstation to complete its set of tasks on a unit
 Assembly Line Balancing
To begin, we need to know three types of information to
balance an assembly line:
1. Set of tasks to be performed and the time required
to perform each task,
2. Precedence relations among the tasks—that is, the
sequence in which tasks must be performed, and
3. Desired output rate or forecast of demand for the
assembly line.
Assembly Line Balancing
 Assembly Line Balancing
Eight tasks are required to assemble the individual parts. These, along
with task times, are:
1. Assemble wheels, bearings, and axle hardware (2 min)
2. Assemble brake housing and pad (0.2 min)
3. Complete wheel assembly (1.5 min)
4. Inspect wheel assembly (0.5 min)
5. Assemble boot (3.5 min)
6. Join boot and wheel subassemblies (1 min)
7. Add line and final assembly (0.2 min)
8. Perform final inspection (0.5 min)
 Precedence relationships
Task Number Immediate Duration
Preceding (Min) Desired output rate
Tasks is 360 units per week
1 - 2.0
and operating one
2 - 0.2
3 1, 2 1.5 shift per day for 5
4 3 0.5 days per week (1
5 - 3.5 shift = 7.2 hours)
6 4, 5 1.0
7 6 0.2
8 7 0.5
 Assembly Line Balancing
• In the in-line skate example, if we use only one
workstation for the entire assembly and assign all tasks to
it, the cycle time is 9.4 minutes

• Alternatively, if each task is assigned to a unique

workstation, the cycle time is 3.5 minutes (the largest
time)

• Thus, feasible cycle times must be between 3.5 and 9.4

minutes
 Assembly Line Balancing
• Desired cycle time = 6 minutes per unit

• Feasible: 3.5 ≤ 6 ≤ 9.4

• Theoretical minimum number of workstations

= Sum of individual task times / desired cycle time

= 9.4 / 6 = 1.57 (2 workstations)

 Assembly Line Balancing
Assembly Line Balance for In-Line Skate
Workstation Tasks Total Time Idle Time
A 1, 2, 3, 4 4.2 1.8
B 5, 6, 7, 8 5.2 0.8
Total 9.4 2.6
Total Time Available = (Number workstations)(Cycle Time) =
(N)(CT) = (2)(6) = 12 minutes
Total Idle Time = (N)(CT) − t = (2)(6) - 9.4 = 2.6 minutes
Assembly Line Efficiency =  t/(N)(CT) = 9.4/(2)(6) = 78.3%
Assembly Line Balancing
Operation Immediate Duration (Min) No. of shifts
Number Preceding per day = 1
Tasks
1 - 8 No. of
2 1 3 Working
3 1 2 Hours per
shift = 8
4 1 4
5 3,4 7 Company
6 2,7 4 aims to
7 2,4,5 5 produce 40
units of
8 4 6
product per
9 6,8 8 shift
Process Flow Chart