Facilities Planning and Line Balancing

FACILITIES PLANNING
Dr. Salwa Mahmood
Department of Mechanical Engineering Technology
Faculty of Engineering Technology
Universiti Tun Hussein Onn Malaysia

OUTLINES
List some reasons for redesign of layouts.
Describe the basic layout types.
Understand the optimization of facilities

by using break-even analysis, Minisum
Model and Transportation Model.
Develop simple process layouts.

Facilities Planning Defined
1. Determines how an activity's tangible fixed assets best

support achieving the activity's objectives.
For example,
1. In manufacturing firm, facilities planning involves the determination of

how the manufacturing facility best support production.
2. In the case of airport, facilities planning involves determining how the

airport facility is to support passenger-airplane interface.
3. Facilities planning for a hospital determines how the hospital facility

support providing medical care to patients.
Facilities Planning Defined
2. Planning determines course of

action ahead of time so
subsequent decisions can be
made efficiently.
3. Design more technical details

that with a use of model,
describe the implementation of
the plan.
Significances of Facilities Planning
1. Majority of an organization's capital investment is in facilities -- 8% of gross national product (GNP) ($250
billion) spent annually of facilities.
2. Single most important cause of high material handling costs is lack of strategic facilities planning
3. Material handling account for 20 - 50% of operating costs in manufacturing
4. Effective material handling can reduce costs by 10 - 30%
5. Long term effect: versatility, expandability, flexibility
6. Environmental implications: hazardous waste disposal
7. Safety, convenience, appearance - influence worker morale
8. Lead to economic development

Objectives of Facilities Planning
1. To improve customer satisfaction by being easy to do business with, conforming to customer promise, and responding
to customer needs.
2. To increase return of assets (ROA) by maximizing inventory turns, minimizing obsolete inventory, maximizing
employee participation, and maximizing continuous improvement.
3. To maximize speed for quick customer response.
4. To reduce cost and grow the supply chain profitability.
5. To effectively utilize people, equipment, space and energy.
6. To provide for employee safety, job satisfaction, energy efficiency and environmental responsibility.
7. To assure sustainability and resilience.

Strategy of Facilities Planning
• Number, location and size of warehouse • Level of vertical integration, including sub-contact VS
1 and/or distributed centers. manufacture decisions.
6
• Centralized VS decentralized storage of • Control system, including material control and equipment
2 supplies, raw materials etc. control as well as level of distributed processing.
7
• Acquisition of existing facilities VS design of • Movement of material between buildings and between sites,
3 modern factories and distribution center. both inbound and outbound.
8
• Flexibility required because of market and • Changes in customers’ and suppliers’ technology as well as a
4 technological uncertainties. firm own manufacturing technology and material movement.
9
• Interface between storage and

manufacturing. • Design-to-cost goals for facilities.
5 10
Factors contribute to improper facilities utilization
1. Management does not

understand facilities utilization
concepts because lack of on-the-
floor experience
2. Because of more basic

misapprehension is difficult to
decide.
The most common scheduling errors:
Overloading facilities.
(This invariably leads to large in-process

inventories and an abundance of missed
due dates.)
At the root of this error seems to be a

misunderstanding of product flows.
It may be that management simply does

not understand its production capacities.
Or it may be a lack of knowledge of
aggregate planning.
Facilities Planning Hierarcy
Facilities
Planning
Facilities Facilities
Location design
Structural Handling
Layout Design
Design System Design
building and space requirements movement of

support services - and location of material, people,
gas, water, light, air resources in information and Examples
etc. available space. equipment.
Facilities Location & Facilities Design
Facilities Location
• Determining how the
location of a facility support Therefore, facilities planning may
meeting the objectives be subdivided into the subjects of
facilities location and facilities
Facilities Design design. Facilities location address
the macro-issue, whereas facility
• Determination of how the
design looks at the microelements
design components of a
facility support achieving
the facility’s objectives.
Facilities Location & Facilities Design
Facilities Location
• A place or position of allocating
the facilities, buildings, equipment
etc.
Facilities Design
• The way that something is
physically arranged such as the
space of material handling,
storage, labor, support activity &
services and equipment
Facilities Location
1.Fixed assets like building Production: any discrete parts or process industry
facilities
structures and inanimate Health care: hospitals, clinics, rehab. centers, nursing
home
resources that support the Education: schools, colleges, day care centers,
libraries
operations of a given activity. Food: restaurants, fast-food places, banquet halls
Commercial/Residential: shopping malls, office
2.Facilities put together with buildings, banks, houses, hotels, motels
Government/Public Services: court house, IRS, INS,
humans, coat and/or materials, post office,
Transportation: airports, train stations, bus terminals
energy result in the activity.
Public assembly: stadium, auditoriums, theaters
Religious: temples, chapels, churches
Facilities Location
Starting the new Business
Business Enlargement
Centralization
Economics
Facilities Location
Closed to market & raw material

suppliers
Ease of getting labor
Geographical factor
Social acceptability
Ease of getting other utility
Procedures & laws

Evaluating Location Alternatives
There are a number of techniques that are

helpful in evaluating location alternatives:
• Location breakeven analysis
• Minisum Model
• Transportation method
• Assignment technique
• Factor Rating, and
• The Center of Gravity Method
Location Decision 1:
BREAK EVEN ANALYSIS

Locational Cost-Profit-Volume Analysis
• The economic comparison of location

alternatives is facilitated by the use of this
method.
• The analysis can be done numerically or

graphically.
18
Variable Costs
“The portion of the total cost that varies

directly with the volume of output.”
e.g. labor, materials, transportation, and variable overhead
19
Fixed Costs
“The portion of the total cost that remains

constant regardless of output levels.”
e.g. land, property taxes, insurance, equipment, and building

Total Costs
“The sum of variable and fixed costs.”
or
TC = VC + FC
For cost analysis, the total cost are given as:
Total Cost = FC + VC(Q)

Where:
FC = Fixed Cost
VC = Variable Cost per unit
Q = Quantity/volume of output
The procedure for this analysis involves these steps:
1. Determine the fixed and variable cost associated with each location alternatives.
2. Plot the total-cost lines for all location alternatives on the same graph.
3. Determine which location will have the lowest total cost for the expected level of output.
4. Fixed costs are constant for the range of probable output.
5. Variable costs are linear for the range of probable output.
6. The required level of output can be closely estimated.
7. Only one product is involves.
Assumption
1. Only one product is involved.
2. What have been produced are sold out.
3. Variable cost/unit is constant regardless of how many
quantity produced.
4. Fixed cost remains unchanged when output quantity
changed.
5. Sale price is fixed regardless of sale quantity.
Example 1: Break-Even Analysis
Find the total cost and the optimal location by using break-even analysis
TC = FC + VC(Q)
Fixed Costs Variable Costs Total Costs

Location per Year per Unit (Fixed + Variable)
A $150,000 $62
B $300,000 $38
C $500,000 $24
D $600,000 $30
Break-Even Analysis
for 20,000 units
A $150,000 $62
B $300,000 $38
C $500,000 $24
D $600,000 $30
Total Variable Costs

for 20,000 units

A $150,000 $62
B $300,000 $38
C $500,000 $24
D $600,000 $30

$62 (20,000)
A $150,000 $62
B $300,000 $38
C $500,000 $24
D $600,000 $30

$62 (20,000) = $1,240,000
A $150,000 $62 $1,390,000
B $300,000 $38
C $500,000 $24
D $600,000 $30
Total Costs
TC= $1,240,000 + $150,000
A $150,000 $62 $1,390,000
B $300,000 $38 $1,060,000
C $500,000 $24 $ 980,000
D $600,000 $30 $1,200,000
Fixed Costs Total Costs
Location per Year (Fixed + Variable)
A $150,000 $1,390,000
B $300,000 $1,060,000
C $500,000 $ 980,000
Annual cost (thousands of dollars) D $600,000 $1,200,000
1600
1400
1200
1000
800
600
400
200
0
2 4 6 8 10 12 14 16 18 20 22
Q (thousands of units)
A $150,000 $1,390,000
B $300,000 $1,060,000
C $500,000 $ 980,000
D $600,000 $1,200,000
Annual cost (thousands of dollars)
1600 A
(20, 1390)
1400
(20, 1200) D
1200 (20, 1060) B
C
1000
(20, 980)
800
600
400
200
0
2 4 6 8 10 12 14 16 18 20 22
A $150,000 $1,390,000
B $300,000 $1,060,000
C $500,000 $ 980,000
1600
D $600,000 $1,200,000 A
(20, 1390)
1400
(20, 1200) D
1200 (20, 1060) B
C
1000
(20, 980)
800
600
Break-even
400
point
200
A best
0
2 4 6 8 10 12 14 16 18 20 22
A $150,000 $1,390,000
B $300,000 $1,060,000
C $500,000 $ 980,000
1600
D $600,000 $1,200,000 A
(20, 1390)
1400
(20, 1200) D
1200 (20, 1060) B
C
1000
(20, 980)
800 Break-even point
600
Break-even
400
point
200
A best B best
0
2 4 6 8 10 12 14 16 18 20 22
6.25 14.3
A $150,000 $1,390,000
B $300,000 $1,060,000
C $500,000 $ 980,000
1600
D $600,000 $1,200,000 A
(20, 1390)
1400
(20, 1200) D
1200 (20, 1060) B
C
1000
(20, 980)
600
Break-even
400
point
200
A best B best C best
0
2 4 6 8 10 12 14 16 18 20 22
6.25 14.3
1600 A
(20, 1390)
1400
(20, 1200) D
1200 (20, 1060) B
C
1000
(20, 980)
600
Break-even
400
point
200
0
2 4 6 8 10 12 14 16 18 20 22
6.25 14.3
Break-Even Quantities
(A) (B)
$150,000 + $62Q = $300,000 + $38Q
Q = 6,250 units
(C) (B)
1600 A
$300,000 + $38Q = $500,000 + $24Q (20, 1390)
1400
Q = 14,286 units (20, 1200) D
1200 (20, 1060) B
C
1000
(20, 980)
600
Break-even
400
point
200
0
2 4 6 8 10 12 14 16 18 20 22
6.25 14.3
MINISUM MODEL
Minisum Model
Objective:
To locate the new facility to minimize a

weighted sum of the rectilinear
distances from the new facility to
existing facilities
Example: to determine the location of

photocopy machine in the office
Minisum Model
Background of Problem
To identify the optimum location

for new facility X, (x*,y*) that have
activity relationship with current
facility Pi, ( ai, bi).
The optimum location must satisfy

the median and cost function f(X).
Minisum Model
• Median ≥ ∑ wi (First time achieved)
2
Minisum Model
Cost function f(X):
n
(
f ( x, y ) = ∑ wi x − a i + y − bi
i =1
)
Where;
f(x,y) = The total of movement cost within the new facility and current facility.
wi = weight
x = Coordinate x for new facility
y = Coordinate y for new facility
ai = Coordinate x for current facility
bi = Coordinate y for current facility

Minisum Model
Example
A new machine will be fixed at shop machine workshop.

The five (5) location of the current machines are given
as P1 (1,1), P2 (5,2), P3 (2,8), P4 (4,4) and P5 (8,6). The
daily number of trips estimation (wi) within new machine
and current machine are shown in table below:
Assume that, the costs per unit movement are the same
within both machines. Determine the optimum location
for this new machine.
Minisum Model
Current m/c, Pi Coordinate, ai Coordinate, bi Number of

(x) (y) trips,wi
1 1 1 5
2 5 2 6
3 2 8 2
4 4 4 4
5 8 6 8
Total 25
Minisum Model
STEP 1 : Arrange from lowest value to highest value for coordinate ai (x)
Current m/c, Pi Coordinate, ai Number of trips,wi
1 1 5
3 2 2
4 4 4
2 5 6
5 8 8
Minisum Models
STEP 2 : Calculate the Median
Median ≥ ∑ wi
2
= 25 = 12.5
2
Minisum Model
STEP 3 : Match the coordinate ai (x) with the Median
Pi ai wi ∑ wj
1 1 5 5
3 2 2 7
4 4 4 11<12.5
2 5 6 17>12.5
5 8 8 25
x* = a2 = 5
Minisum Model
STEP 4 : Arrange from lowest value to highest value for coordinate bi (y),
then follow step 2- step 3 for coordinate bi (y).
Pi bi wi ∑ wj
1 1 5 5
2 2 6 11 < 12.5
4 4 4 15 > 12.5
5 6 8 23
3 8 2 25
y* = b4 = 4
Minisum Model
STEP 5 : Find the optimum location by take the value of ai (x) and bi (y)
Therefore the optimum

location for new machine,
X(x*, y*) = (5,4)
Minisum Model
STEP 6 : Calculate the optimum cost for location found
The cost for this optimum location;
f(5,4) = 5(I5-1I+I4-1I) + 6(I5-5I+I4-2I)

+ 2(I5-2I+I4-8I) + 4(I5-4I+I4-4I)
+ 8(I5-8I+I4-6I)
= 35+12+14+4+40
= 105
Minisum Model
If the cost is RM1.50/distance, therefore the total

cost for this optimum location is RM 157.50 (105 x
1.50).
This optimum location also can be determined by

plotting the graph f(a) vs ai and f(b) vs bi. The
optimum point is located at the lowest curve.
THE TRANSPORTATION MODEL

The Transportation Model
• Involves finding the lowest-cost plan for

distributing stocks of goods or supplies
from multiple destinations that demand
the goods.
• Used to determine how to allocate the

supplies available from the various
factories to the warehouses that stock or
demand those goods, in such way that
total shipping cost is minimized.
The Transportation Model
Demand
Figure 1: Demand
Supply
The transportation
problem involves
determining a
minimum-cost plan for Demand
shipping from multiple
sources to multiple
Supply
destination.
Supply
Demand
Example
Cost to ship one

unit from factory 1 Warehouse
to warehouse A A B C D Supply
4 7 7 1 100
1 0
100
Factory
Factory 2 can
2
12 3 8 8 200 supply 200
90 110 0 units per period
3
8 10 16 5 150
80 10 60 0 Total supply
80 90 120 160 450 capacity per
Demand 0 0 0 0 period
450
Total demand
per period
Transportation Method
Setting up the Initial Tableau
STEP 1: Create a row for each plant and a column for each warehouse
Warehouse
Plant
1 2 3
Phoenix
Atlanta
STEP 2: Add a column for plant capacities and a row for warehouse demand
Warehouse
Plant Capacity
1 2 3
Phoenix 400
Atlanta 500
900
Requirements 200 400 300
900
STEP 3: Insert costs into the shipping route option cells
Warehouse
Plant Capacity
1 2 3
$5.00 $6.00 $5.40
Phoenix 400
$7.00 $4.60 $6.60

Atlanta 500
900
Requirements 200 400 300 900
Warehouse
Plant Capacity
1 2 3
$5.00 $6.00 $5.40
Phoenix 400
$7.00 $4.60 $6.60 500

Atlanta
400 (100)
200 400 300 900

Requirements 900
(0)
Warehouse
Plant Capacity
1 2 3
$5.00 $6.00 $5.40 400
Phoenix (200)
200
$7.00 $4.60 $6.60 500
Atlanta
400 (100)
200 400 300 900

Requirements 900
(0) (0)
Warehouse
Plant Capacity
1 2 3
$5.00 $6.00 $5.40 400
Phoenix (200)(0)
200 200
$7.00 $4.60 $6.60 500
Atlanta
400 (100)
200 400 300 900

Requirements 900
(0) (0) (100)
Warehouse
Plant Capacity
1 2 3
$5.00 $6.00 $5.40 400
Phoenix (200)(0)
200 200
$7.00 $4.60 $6.60 500
Atlanta
400 100 (100)(0)
200 400 300 900

Requirements 900
(0) (0) (100)(0)
Total Cost = 200(5) + 200(5.4) + 400(4.6) + 100(6.6) = $ 4580 62

Facilities Layout
Developing a facilities layout is a critical step in the facilities

planning process
Facilities Planner must be CREATIVE and COMPREHENSIVE

in generating layout alternatives.
Facilities Layout
Layout is effected by:
Centralized vs. Decentralize Storage of WIP, Tooling, & Supplies
Fixed Path vs. Variable Path Handling
Unit Load Size
Degree of Automation
Type and Level of Inventory and Control of Materials

Facilities Layout
Handling less is BEST:
- Number of times material is handled
- Not necessarily the handling distance
Layout or MHS First? -- BOTH
- Sequential approach which considers a number of alternative

handling systems and the corresponding layout alternatives.
Facilities Layout
Layout: the configuration of departments, work centers, and

equipment, with particular emphasis on movement of work
(customers or materials) through the system.
• Product layouts
• Process layouts
• Fixed-Position layout
• Combination layouts
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
Importance of Layout Decisions
• Requires substantial investments of money and effort
• Involves long-term commitments
• Has significant impact on cost and efficiency of short-

term operations
The Need for Layout Decisions
Inefficient operations
For Example: Changes in the design
High Cost of products or services
Bottlenecks
Accidents
The introduction of new
products or services
Safety hazards
The Need for Layout Design
Changes in
environmental Changes in volume of
or other legal output or mix of
requirements products
Morale problems
Changes in methods
and equipment
Basic Layout Types
Product
layouts
BASIC
Combination Process
layouts LAYOUT layouts
TYPE
Fixed-
Position
layout
Product Layout (sequential)
Raw
Station Station Station Station Finished
materials 1 2 3 4 item
or customer
Material Material Material Material
and/or and/or and/or and/or
labor labor labor labor
• Layout that uses standardized processing operations to

achieve smooth, rapid, high-volume flow
• Used for Repetitive or Continuous Processing
Advantages of Product Layout
• High rate of output
• Low unit cost
• Labor specialization
• Low material handling cost
• High utilization of labor and equipment
• Established routing and scheduling
• Routing accounting and purchasing

Disadvantages of Product Layout
• Creates dull, repetitive jobs
• Poorly skilled workers may not maintain equipment or quality of output
• Fairly inflexible to changes in volume
• Highly susceptible to shutdowns
• Needs preventive maintenance
• Individual incentive plans are impractical

U-Shaped Production Line
In 1 2 3 4
Workers
Out 10 9 8 7
Process Layout
Dept. A Dept. C Dept. E
Dept. B Dept. D Dept. F
• Layout that can handle variety of process

requirement
• Used for Intermittent processing Job Shop or
Batch Processes
Product Layout
Product Layout
(sequential)
Work Work Work

Station 1 Station 2 Station 3
Figure 6.7 (cont’d)
Used for Repetitive Processing

Repetitive or Continuous Processes
Sunday, February 25, 2018 Industrial Engineering 77

Advantages of Process Layouts
• Can handle a variety of processing
requirements
• Not particularly vulnerable to equipment

failures
• Equipment used is less costly
• Possible to use individual incentive plans

Disadvantages of Process Layouts
• In-process inventory costs can be high
• Challenging routing and scheduling
• Equipment utilization rates are low
• Material handling slow and inefficient
• Complexities often reduce span of supervision
• Special attention for each product or customer
• Accounting and purchasing are more involved

Fixed Position Layouts
• Fixed Position Layout: Layout in which the product or project remains
stationary, and workers, materials, and equipment are moved as
needed.
• Nature of the product dictates this type of layout
1. Weight
2. Size
3. Bulk
• Large construction projects

Fixed Position Layout
Large construction projects
Large construction projects
Cellular Layouts
Cellular Production
• Layout in which machines are grouped into a cell that can process items that
have similar processing requirements
Group Technology
• The grouping into part families of items with similar design or manufacturing
characteristics
Service Layouts
Warehouse and storage layouts
Retail layouts
Office layouts
Service layouts must be aesthetically pleasing as well as functional

Warehouse Layout Floor Plan
Conveyor
Truck
Zones 9-86
Order Picker
Retail /Service Layout -
Grid Design
Grocery Store
Bread Meat
Produce
Milk
Frozen Foods
Check-
Office Carts
out
9-87
Retail/Service Layout -
Free-Flow Design
Apparel Store
Feature Trans.
Counter
Display
Table
9-88
Office Layout Floor Plan
Accounting
Finance
Fin. Acct.
Manager Brand X
9-89
LINE BALANCING
Dr. Salwa Mahmood
Department of Mechanical Engineering Technology
Faculty of Engineering Technology
Universiti Tun Hussein Onn Malaysia

Line Balancing
Green Grass, Inc.

Big Broadcaster
To Accompany Krajewski & Ritzman

Operations Management: Strategy and
Analysis, Seventh Edition © 2004 Prentice Hall,
Inc. All rights reserved.
Line Balancing Big Broadcaster
Work Time Immediate

Element Description (sec) Predecessor(s)
A Bolt leg frame to hopper 40 None
B Insert impeller shaft 30 A
C Attach axle 50 A
D Attach agitator 40 B
E Attach drive wheel 6 B
F Attach free wheel 25 C
G Mount lower post 15 C
H Attach controls 20 D, E
I Mount nameplate 18 F, G
Total 244

Work Time Immediate

C Attach axle 50 A
Total 244
DRAWING THE PRECEDENCE DIAGRAM

Work Time Immediate

C Attach axle 50 A
Total 244
A
40

Work Time Immediate

C Attach axle 50 A
E
F
Attach drive wheel
Attach free wheel
6
25
B B
C
H
I
Attach controls
Mount nameplate
20
18
30 D, E
F, G
Total 244
A
40

Work Time Immediate

C Attach axle 50 A
E
F
Attach drive wheel
Attach free wheel
6
25
B B
C
H
I
Attach controls
Mount nameplate
20
18
30 D, E
F, G
Total 244
A
40 C
50

Work Time Immediate

B
C
Insert impeller shaft
Attach axle
30
50
A
A
D
E Attach drive wheel 6 B B 40
H
I
Attach controls
Mount nameplate
20
18
30 D, E
F, G
Total 244
A
40 C
50

Work Time Immediate

B
C
Attach axle
30
50
A
A
D
H
I
Attach controls
Mount nameplate
20
18
30 D, E
F, G
E
Total
A
244
6
40 C
50

Work Time Immediate

B
C
Attach axle
30
50
A
A
D
H
I
Attach controls
Mount nameplate
20
18
30 D, E
F, G
E
Total
A
244
6
F
40 C 25
50

Work Time Immediate

B
C
Attach axle
30
50
A
A
D
H
I
Attach controls
Mount nameplate
20
18
30 D, E
F, G
E
Total
A
244
6
F
40 C 25
50
G
To Accompany Krajewski & Ritzman 15
Work Time Immediate

B Insert impeller shaft 30 A D
C
D
Attach axle
Attach agitator
50
40
A
B
H
F Attach free wheel 25 C 20
H
I
Attach controls
Mount nameplate
20
18
30 D, E
F, G
E
Total
A
244
6
F
40 C 25
50
G
Work Time Immediate

B Insert impeller shaft 30 A D
C
D
Attach axle
Attach agitator
50
40
A
B
H
F Attach free wheel 25 C 20
H
I
Attach controls
Mount nameplate
20
18
30 D, E
F, G
E
Total
A
244
6
F
40 C 25
50 I
18
G
D
H
B 40
20
30 E
A 6
F
40 C 25
50 I
18
G
D
H
B 40
20
30 E
A 6
F Desired output rate = 2400/week
40 C Plant operates 40 hours/week
25
50 I
18
G
D
H
B 40
20
30 E
A 6
25
50 r = 2400/40 = 60I units/hour
r = desired output 18
rate (units/hr)
G
D
H
B 40
20
30 E
A 6
25
50 r = 2400/40 = 60I units/hour
Line cycle time c 18

G
= 60 min/hr / 60 units/hr = 1 minute/unit
= 60 seconds/unit
c = 60 seconds/unit
D
H
B 40
20
30 E
A 6
25
50 I
18
G
c = 60 seconds/unit
D
H
B 40
20
30 E
A 6
25
50 TM = 244 seconds/60
I seconds
= 4.067 or 5 stations
18
TM = Theoretical minimum
G number of stations for the
c = 60 seconds/unit
D
H
B 40
20
30 E
A 6
25
I seconds
18
G
Theoretical Maximum Efficiency
= [244\5(60)]100 = 81.3%
c = 60 seconds/unit
TM = 5 stations D
Efficiency = 81.3% H
B 40
20
30 E
A 6
25
I seconds
18
G
Theoretical Maximum Efficiency
= [244\5(60)]100 = 81.3%
c = 60 seconds/unit
TM = 5 stations D
B 40
20
30 E
A 6
Cumm Idle
F Station Candidate Choice Time Time
40 C 25
50 I
18
G
c = 60 seconds/unit
TM = 5 stations D
B 40
20
30 E
A 6
Cumm Idle
40 C 25 S1 A A 40 20
50 I
18
G
c = 60 seconds/unit
TM = 5 stations D
B 40
20
30 E
A 6
Cumm Idle
40 C 25 S1 A A 40 20
50 I
18
G
c = 60 seconds/unit
TM = 5 stations D
B 40
20
S1 30 E
A 6
Cumm Idle
40 C 25 S1 A A 40 20
50 I
18
G
c = 60 seconds/unit
TM = 5 stations D
B 40
20
S1 30 E
A 6
Cumm Idle
40 C 25 S1 A A 40 20
50 S2 B,C C
I 50 10
18
G
c = 60 seconds/unit
TM = 5 stations D
B 40
20
S1 30 E
A 6
Cumm Idle
40 C 25 S1 A A 40 20
50 S2 B,C C
I 50 10
18
G
c = 60 seconds/unit
TM = 5 stations D
B 40
20
S1 30 E
A 6
S2 F
Cumm Idle
Station Candidate Choice Time Time
40 C 25 S1 A A 40 20
50 S2 B,C C
I 50 10
18
G
Cumm Idle
c = 60 seconds/unit Station Candidate Choice Time Time
TM = 5 stations DS1 A A 40 20
S2 B,C C 50 10
B 40
S3 B,F,G 20 B 30 30
S1 30 E
A 6
S2 F
40 C 25
50 I
18
G
c = 60 seconds/unit Cumm Idle

TM = 5 stations Station
D Candidate Choice Time Time
Efficiency = 81.3% S1 A H A 40 20
B 40
S2 B,C 20 C 50 10
S1 30 S3 E
B,F,G B 30 30
A 6
S2 F
40 C 25
50 I
18
G
c = 60 seconds/unit Cumm Idle

TM = 5 stations Station Candidate Choice
D Time Time
Efficiency = 81.3% S1 A HA 40 20
B 40
S2 B,C 20 C 50 10
S1 30 S3 E
B,F,G B 30 30
A 6
S2 F
40 C 25
50 I
18
G
Cumm Idle
Station Candidate Choice Time Time
S1 Line Balancing
A A 40 20
Big Broadcaster
S2 B,C C 50 10
c = 60 seconds/unit
S3TM =B,F,G B
5 stations 30 30
E,F,G = 81.3%
F 55 5 D
Efficiency H
B 40
20
S1 30 E
A 6
S2 F
40 C 25
50 I
18
G
c = 60 seconds/unit
TM = 5 stations D
B 40
20
S1 30 E
A 6
S2 F
40 C 25
50 I
18
G
c = 60 seconds/unit
TM = 5 stations D
B 40
20
S1 30 E
S3 6
A S2 Cumm
F Idle
Station Candidate
40 Choice Time Time
S1 A
C
A 25 20
40
S2 B,C 50
C 50 10 I
S3 B,F,G B 30 30
18
E,F,G F 55 5 G
S4 D,E,G
D 40 20 15
E,G
Operations Management: Strategy and G 55 5
c = 60 seconds/unit
TM = 5 stations D
B 40
20
S1 30 E
S3 6
A S4
S2 F
40 C 25
50 I
18
G
c = 60 seconds/unit
TM = 5 stations D
B 40
20
S1 30 Idle
Cumm E
Station Candidate Choice S3 Time
Time
6
S1 AA A 40 20 S4
S2 F
S2 40
B,C C
C
50 10
S3 B,F,G B
25
30 30
E,F,G 50
F 55 5 I
S4 D,E,G D 40 20
18
E,G G 55 5 G
S5 E,I I 18 42 15
To Accompany Figure
Krajewski 7.13
& Ritzman
E
Operations Management: Strategy and E 24 36
H H 44
16
c = 60 seconds/unit
TM = 5 stations D
B 40
20
S1 30 E
S3 6
A S4
S2 F S5
40 C 25
50 I
As n = TM = 5, we can do no better than 18
G
this with a 60 second cycle time.

Facilities Planning and Line Balancing

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Facilities Planning and Line Balancing

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FACILITIES PLANNING

Dr. Salwa Mahmood

Department of Mechanical Engineering Technology

Faculty of Engineering Technology

Universiti Tun Hussein Onn Malaysia

List some reasons for redesign of layouts.

Describe the basic layout types.

Understand the optimization of facilities

Develop simple process layouts.

1. Determines how an activity's tangible fixed assets best

1. In manufacturing firm, facilities planning involves the determination of

2. In the case of airport, facilities planning involves determining how the

3. Facilities planning for a hospital determines how the hospital facility

2. Planning determines course of

3. Design more technical details

3. Material handling account for 20 - 50% of operating costs in manufacturing

4. Effective material handling can reduce costs by 10 - 30%

5. Long term effect: versatility, expandability, flexibility

6. Environmental implications: hazardous waste disposal

7. Safety, convenience, appearance - influence worker morale

8. Lead to economic development

3. To maximize speed for quick customer response.

4. To reduce cost and grow the supply chain profitability.

5. To effectively utilize people, equipment, space and energy.

7. To assure sustainability and resilience.

• Interface between storage and

1. Management does not

2. Because of more basic

(This invariably leads to large in-process

At the root of this error seems to be a

It may be that management simply does

building and space requirements movement of

Starting the new Business

Closed to market & raw material

Ease of getting labor

Ease of getting other utility

Procedures & laws

There are a number of techniques that are

BREAK EVEN ANALYSIS

• The economic comparison of location

• The analysis can be done numerically or

“The portion of the total cost that varies

e.g. labor, materials, transportation, and variable overhead

“The portion of the total cost that remains

e.g. land, property taxes, insurance, equipment, and building

“The sum of variable and fixed costs.”

For cost analysis, the total cost are given as:

Total Cost = FC + VC(Q)

The procedure for this analysis involves these steps:

Fixed Costs Variable Costs Total Costs

Total Variable Costs

Fixed Costs Variable Costs Total Costs

Total Variable Costs

Total Variable Costs

To locate the new facility to minimize a

Example: to determine the location of

To identify the optimum location

The optimum location must satisfy

• Median ≥ ∑ wi (First time achieved)

x = Coordinate x for new facility

y = Coordinate y for new facility

ai = Coordinate x for current facility

bi = Coordinate y for current facility