Week #1

IE510
Advanced Topics in Facility Layout and Location
About Me

Eren ÖZCEYLAN
Assoc. Prof. Dr.
erenozceylan@gmail.com
0342 317 26 18
www.eozceylan.com

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Facility Location to Layout

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Course Content

Of all the pieces of the

planning puzzle, facility Facility Location is the
location is the most right location for the
strategic and critical. manufacturing facility, it
Facility Location will have sufficient access
to the customers,
workers, transportation,
Facility etc.
Planning

Facility Layout

Deciding on plant layout—how

equipment, machinery, and people will be
arranged to make the production
process as efficient as possible.
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Before or during the course, you should re-study

GAMS or LINGO optimization

package program.

Mathematical modelling
knowledge (especially integer, and
mixed integer programming).

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Assessment Methods

Type Discription Final Grade

Quiz (1 or 2) During the term 10%
Project Application of a model for facility layout or location 25%
Final Exam Exam at the end of the term 65%

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Reference Materials

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What is facility?

Facilities are defined as buildings where people, material, and

machines come together for a stated purpose – typically to make a
product or provide a service.

The facility must be properly managed to achieve its stated purpose

while satisfying several objectives.

Such objectives include producing a product or producing a service

at lower cost,
at higher quality,
or using the least amount of resources.

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A facility can be

• a new hospital,
• an assembly department,
• an existing warehouse,
• the baggage department in an airport,
• department building of IE in GAUN,
• a production plant,
• a retail store,
• a dormitory,
• a bank,
• an office,
• a cinema,
• a parking lot,
• or any portion of these activities etc. 9
 A facility aims…

What is the objective of the facility? How the facility achieves that
objective?

In the case of a manufacturing firm:

Facilities Planning involves the determination of how the
manufacturing facility best supports production.

In the case of an airport:

Facilities Planning involves determining how the airport facility is to
support the passenger-airplane interface.

In the case of a hospital:

Facilities Planning for a hospital determines how the hospital
facility supports providing medical care to patients.
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 An Example from Frankfurt Airport

Frankfurt Airport displays

the walking time to gates.

https://www.frankfurt-airport.com/en/transfer-at-frankfurt-airport/easy-travel/walking-time-displays.html 11
 An Example from a Hospital

https://azbigmedia.com/real-estate/heres-how-covid-19-will-change-healthcare-facility-design/ 12
What is facility planning and design?

Facility Planning
Facilities location (where?)
Facilities design (what & how?)

Facilities Design
Structural design
Layout design
Handling system design

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Importance of Facilities Planning & Design

Manufacturing and Service companies spend a significant amount of

time and money to design or redesign their facilities.

This is an extremely important issue and must be addressed before

products are produced or services are rendered.

A poor facility design can be costly and may result in:

poor quality products,
low employee morale,
low resource usage and productivity,
customer dissatisfaction.

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Wrong facility location decisions

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 Wrong facility layout decisions

https://www.nytimes.com/2017/02/22/well/live/bad-hospital-design-is-making-us-sicker.html 17
Facility planning, location, design, layout and etc.

We do not use the term facilities planning as a synonym for such related
terms as facilities location, facilities design, facilities layout, or plant
layout.

Facility planning ≠ Facility location

Facility planning ≠ Facility design
Facility planning ≠ Facility layout
Facility planning ≠ Plant layout

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Facility planning, location, design, layout and etc.

Facility location
Facility design
Facility system
design
Layout design
Handling system
design

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 Facility planning, location, design, layout and etc.
Location of the facility refers to its
placement with respect to customers,
suppliers, and other facilities with
which it interfaces. Consists of the structural systems, the
atmospheric systems, the
lighting/electricity/communication systems,
the life safety systems and the sanitation
systems.

Consists of all equipment,

machinery and furnishings within
the building.

Design components of a
Consists of the mechanism
facility consists of the
need to satisfy the required
facility systems, the layout
facility interactions.
and the handling systems.
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Facilities planning for specific types of facilities

(a) Manufacturing plant

(b) Office
(c) Hospital
(d) Emergency room

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 Significance of Facilities Planning

To understand the significance of Facilities Planning consider the

following questions:

What impact does facilities planning have on handling and maintenance

cost?

What impact does facilities planning have on employee morale, and how
does employee morale impact operating costs?

What impact does facilities planning have on the management of a facility?

What impact does facilities planning have on facility’s capability to adapt to

change and satisfy future requirements?

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 Objectives of facility planning, location and design

Objectives of Facilities Planning

Objectives of Facility Planning is to plan a facility that achieves both facilities location
and design objectives.

Objectives of Facility Location

Objective of Facility Location is to determine the location which, in consideration of
all factors affecting deliver-to-customers cost of the products to be manufactured, will
be minimized.

Some Typical Facilities Design Objectives are to

* Support the organization’s vision through improved material handling, material
control, and good housekeeping.
* Effectively utilize people, equipment, space and energy.
* Minimize capital investment.
* Be adaptable and promote ease of maintenance.
* Provide for employee safety and job satisfaction.
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 Topics/Models during the Course

• Location Problem Types

• Distance Functions in Location Problems
• Single Facility Location Problem
• Multi-facility Location Problem
• Covering Problem (Set covering, maximum coverage, minimum coverage)
• Median Location Problem (P-median)
• Center Problem (P-center)
• Hub Location Problem
• Competitive Location Problem
• Obnoxious Facility Location
• Location-Routing Problem
• Location-Inventory Problem
• Storage System Layout
• Block layout design problem
• Computerized Relative Allocation of Facilities Technique (CRAFT)
• Automated Layout Design Program (ALDEP)
• Computerized Relationship Layout Planning (CORELAP)
• Quadratic Assignment Problem 24