Facility Layout PGDM PDF

Facility Layout
PGDM (2017-19): Term I

Operations Management – I (OPM 101)
Session # 13 & 14
8/23/2017 Prof Kalyana C Chejarla

Layout Decisions
• Facility layout: the process of determining
placement of departments, workgroups within
departments, workstations, machines, and stoc
holding points within a facility
• This process requires the following inputs:
– Specification of the objectives used to evaluate the
design
– Estimates of product or service demand
– Processing requirements
– Space requirements for the elements
– Space availability within the facility
8/23/2017 Prof Kalyana C Chejarla Source: Chase

Layout Design
Performance implications
Product Total Distance Number of Average

Line Travelled items Distance
(in meters) Manufactured* per item
Product A 375,655 1080 347.83
Product B 415,125 757 548.38
Product C 288,710 301 959.17
Product D 297,110 405 733.60
* The total distance travelled includes only those of the items manufactured on the shop floor
of items that finally get assembled into the final product includes many bought out items in a
these.
8/23/2017 Prof Kalyana C Chejarla Source: Mahadeva

Layout Design
Performance Measures
Performance Measure Basis for measurement
Distance travelled by jobs in the shop Kg - Metres of job movement for each
floor product
Minimum space required to actual space
Space utilization index
utilised
Material Handling costs Rupees per month
Lead time of the processes Hours per average product
Investment in work-in-progress Rupees per month
Number and quantum of inter-
Inter-departmental moves
departmental moves
Utilisation of the resources Percent to total capacity
Number of job cards and control
Ease of production control documents generated; Size of the progress
chasing staf
Number of times the responsibility for the
Number of ownership changes
job changes hands

Basic Production Layout Formats
• Workcenter (job-shop or functional layout)
– Similar equipment are grouped together.
• Assembly line (flow-shop layout)

– Work processes are arranged according to the steps by which
the product is made.
• Manufacturing cell
– Dissimilar machines are grouped to work on similar products.
• Project layout
– Product remains at one location.

Volume – Variety – Flow
Implications for layout planning
Variety
Medium One off
Very low variety Variety High Variety execution
Multiple flow Dis-organised
Flow attributes Stream lined flow Jumbled flow
paths flow
Volume attributesHigh Volume Mid-volume Low volume One piece
Job shops;
Process industry; Batch Customized
Examples of
Mass Product/ Manufacturing Product/ Project Shops
operating systems
Service provider firms Service
Provider
Manufacturing Work-Center /
Assembly Line Fixed
Types of layout Cell / Group Job Shop /
Layout; Product Position/
used Technology Functional
Layout Project Layout
Layout Process Layout
Examples Cafetaria Airlines Hospital Consulting

Functional Layout Assembly Lin
Cellular Layout Project Layou
Design of Process Layouts
Methods
• Qualitative Method
– Links some criteria to the closeness required between a pair o
resources
– Computer packages such as ALDEP and CORELAP are
available
• Quantitative Method
– Uses some quantitative performance measures for assessing
impact of a layout design
– Seeks to arrive at the best layout design by optimising on this
performance measure
– One of the popular method used in CRAFT
• Performance evaluation models using computer simula
techniques

WORK-CENTER, FUNCTIONAL,
PROCESS, JOB SHOP

Work-Centers
• Given
– The flow (number of moves) to and from all
departments
– The cost of moving from one department to another
– The existing or planned physical layout of the plant
• Determine
– The “best” locations for each department, where be
means maximizing flow and / or minimizes costs

Process Layout
An example
Product A
Product B L L L L D D
Product C D D
L L L L
D D
MM
G G G
MM
Lathe Machines Drilling Machines

Milling Machines Grinding Machines
Design of Process Layout
Quantitative Method
• Cij = Cost per unit of transporting a unit distance from
department “i” to department “j”
• Fij = Inter-departmental flow between department “i”
and department “j”
• Dij = Distance between department “i” and departmen
“j”
• n = Number of departments to be laidnout n
• The total cost of the plan is givenTC
by:
 Fij Dij Cij
i 1 j 1
• One can model the above as a mathematical

programming problem with the objective function of
minimising the total cost of the plan

Example: Toy Factory
• Goal is to arrange eight work-centers to minimize
interdepartmental handling cost.
• Assume all work-centers have same space and fit in building.
• All material is transported in standard crates by forklift.
• Transportation costs are $1 to move between adjacent work-cent
– Extra $1 for each work-center in between

Steps
1. Illustrate the interworkcenter flow by a
model.
2. Determine the cost of this layout.
3. Search for work-center location change

that will reduce costs.

Step 1: Interworkcenter Flow Graph
with Number of Annual Movements

Step 2: Cost Matrix –
First Solution

Step 3: Revised Interwork-center Flowchart a
Cost Matrix – Second Solution

Practice Problem
A community college that recently acquired a parcel of land is now preparing site pla
There is interest in locating academic departments in each of six buildings along a
corridor with 3 buildings on each side. Based on registration patterns, the daily flow o
students between these six departments in hundreds is shown below:
Dept. A B C D E F
A. Psychology - 6 4 8 7 1
B. English 6 - 2 3 9 5
C. Mathematics 6 1 - 12 2 4
D. Economics 3 2 10 - 3 5
E. History 7 11 2 1 - 6
F. Biology 6 2 8 10 3 -
Using the initial layout below, perform an operations sequence analysis to determine
site plan for the community college that will minimize the distance that students nee
walk between classes.
A B C
D E F
8/23/2017 Prof Kalyana C Chejarla Source: Fitzsimmon

Practice Problem - Solution
Initial Layout Proposed Layout
A B C C A B
D E F E
D F
Triangularized Flow Matrix

A B C D E F
Flow Calculations
A 12 10 11 14 7 CA = 1x10 = 10DA = 1x11 = 11AF = 1x7 = 7
CD = 1x22 = 22DF = 1x 15 = 15
AB = 1x12 = 12
B  3 5 20 7
CF = 1x12 = 12DB = 2x5= 10 AE = 1x14 = 14
C  22 4 12 CB = 2x3 = 6 DE = 2x4 = 8
FB = 1x7 = 7
D  4 15 CE = 2x4 = 8
FE = 1x9 = 9
E  9
Total Flow: 171 BE = 1 x 20 = 2
F 
Flow Calculations
AB = 1x12 = 12DB = 1x5 = 5 BC = 1x3 = 3
AC = 2x10 = 20DE = 1x 4 = 4 BE = 1x20 = 20 • Is there a better solution
AD = 1x11 = 11DC = 2x22= 44BF = 1x7 = 7
than this? Why or Why not?
AE = 1x14 = 14DF = 2x15 = 30EF = 1x9 = 9
AF = 2x7 = 14 EC = 1x4 = 4
Total Flow: 209 CF = 1x12 = 12

Systematic Layout Planning
• Numerical flow of items between work-centers
– Can be impractical to obtain
– Does not account for the qualitative factors that may be
crucial to the placement decision
• Systematic Layout Planning (SLP)

– Accounts for the importance of having each department
located next to every other department
– Is also guided by trial and error
• Switching work-centers then checking the results of the
“closeness” score

Design of process layouts
Qualitative method
Department 1
Value Closeness O
A Absolutely necessary Department 2 A
U I
E Especially Important Department 3 O E
I Important A X A
O Ordinary closeness OK Department 4 U U
U O
U Unimportant Department 5 O
X Undesirable O
Department 6
2 3 6
4 1 5

Systematic
Layout
Planning for
a Floor of a
Department
Store

SLP Practice Problem & Solution
A convenience store is considering changing its layout to encourage impulse buying.
The triangular flow matrix below gives the measure of association between diferent
product groups (e.g, beer, milk, magazines). A plus (+) sign indicates a high associat
such as between beer and peanuts; a minus (-) sign indicates a repulsion, such as
between beer and milk; and a zero (0) indicates no association.
Category A B C D E F
A + + 0 0 -
B + 0 - -
C + + 0
D + +
E 0
F
Using the initial layout below, perform an operations sequence analysis to determine
layout that will encourage impulse buying by placing high-association product group
close to one another.
A B C A C F
D E F B D E

ASSEMBLY LINE, PRODUCT LAYOUTS

Assembly Line
• Assembly line: progressive assembly linked by so
material handling device
– Some form of pacing is present and the allowable process
time is equivalent for all workstations
• Important diferences:
– Material handling devices
– Line configuration
– Pacing
– Product mix
– Workstation characteristics
– Length

Product (Line) Layout
An example
Product A
L D M G
Product B
L D L G
Product C
L D M L G


Assembly-Line Design
• Workstation cycle time: a uniform time interval in
which a moving conveyor passes a series of
workstations
– Also the time between successive units coming of the line
• Assembly-line balancing: assigning all tasks to a se

of workstations so that each workstation has no more
than can be done in the workstation cycle time
• Precedence relationship: the order in which tasks m

be performed in the assembly process

Assembly-Line Balancing Steps
1. Specify the sequential relationships among tasks.
2. Determine the required workstation cycle time.
3. Determine the theoretical minimum number of
workstations.
4. Select a primary and secondary assignment rule
– E.g, Tasks with largest number of followers or Tasks with
longest processing time
5. Assign tasks.
6. Evaluate the efficiency of the balance.
7. Rebalance if needed.

Assembly-Line Balancing
Production time per day

Cycle time (C) 
Required output per day (in units)
Sum of task times (T)
Theoretical minimum (N t ) 
Cycle time (C)
Sum of task times (T)
Efficiency 
Actual number of workstations (N a ) x Worksta tion cycle time (C)

Example: Assembly Steps and Times

Step 1: Precedence Graph
Task Followers Task Followers
A 6 G 2
B 5 H 2
C 4 I 2
D 5 J 1
E 4 K 0
8/23/2017
F 2 Source: Chase
Prof Kalyana C Chejarla
Steps 2 & 3: C andt N
Production time per day 60 sec. x 420 min

C 
Output per day 500 wagons
25,200
 50.4
500
T 195 seconds
Nt   3.87  4
C 50.2 seconds

Steps 4 & 5:
Assignment

Step 6 & 7: Efficiency
T 195
Efficiency
  0.77 77%
NaC 550.4 

What to you do when the CT is smalle
than a particular process time?
• Split the task

• Share the task
• Use parallel workstations
• Use a more skilled worker
• Work overtime
• Redesign

Executive Shirts Case
• Can you reduce the number of workers required in Custom Shirts

balancing the operations? Assume sequence is not important.
8/23/2017 Prof Kalyana C Chejarla Source: HBR
Practice Problem – Line Balancing
1. A factory working in 2 shifts each of 8 hours
produces 24,000 electric bulbs using a set of
workstations. Using this information compute
the actual cycle time of the plant operation.
2. There are 8 tasks required to manufacture the

bulb. The sum of all task times is equal to 12
seconds. How many workstations are required
to maintain this level of production if
combining of tasks into that many workstation
is a feasible alternative?

Solution
• Available time = 2*8*60*60 = 57,600 seconds
• Actual production = 24,000 electric bulbs
57,600
Cycle time for each bulb is 2.4 seconds
24,000
• This means that the factory is producing a bulb every 2.4
seconds.
12
• No. of work stations required = 5
2.4
• Therefore the tasks are to be split among the five stations s
that each workstation will have sum of the task times to be
seconds.

Practice Problem 2: Line Balancing
A computer manufacturer needs to design the assembly stations in the factor
where the cabinet housing the hard disk, motherboard and other accessories
are to be done. The factory currently works for one shift of 8 hours. The tasks
their duration and their precedence relationships are given below:
Precedence relationship among the tasks

Task Description Duration B
(seconds)
A Assemble and position the base unit 70 F
B Install Hard disk 80
A C
C Install Mother Board 40 G H
D Insert Ports 20
E Install speaker 40 D
F Connect relevant modules to mother board & Disk 30
G Install controller 50
H Visually inspect & close with a cover plate 50 E
• If the cycle time is 80 seconds, what will be the daily production of cabinets?
• If the desired production rate is 320 cabinets per day, what is the maximum
permissible cycle time?
• What is the maximum and minimum number of workstations required to maintain
this daily production rate?
• Design an assembly setup with minimum number of workstations.
8/23/2017 Prof Kalyana C Chejarla Source: Laguna & Marklu

Solution
• Total available time per day = 8*60*60 = 28,800 seconds
• If the cycle time is 80 seconds, then
TotalAvailable
Time 28,800
• Daily production rate =  360
CycleTime 80
• Since the desired production rate is only 320 cabinets, one

obtain the maximum permissible cycle time for the assemb
stations Total Available
Time 28,800
• Maximum Cycle TimeDesired
=  90 Seconds
Pr oduction
Rate 320
• Minimum number of workstations is dictated by the
maximum cycle time permissible
• Sum of all task times = 380 seconds
380
• Minimum number of workstations = 4.22 5
90

Solution Contd..
• We assign tasks to the five workstations on the basis of the following
two criteria:
– Tasks with largest number of followers get assigned first
– In case of a tie-breaker, task with longest processing time gets assigned
WorkstationWorkstationWorkstationWorkstationWorkstation
1 2 3 4 5
Tasks A,D B C,G E,F H
Assigned
Workstation 90 80 90 70 50
Times
Cycle time 90 90 90 90 90
Workstation 0 10 0 20 40
idle time
Workstation 100% 89% 100% 78% 56%
utilization
Average Utilization = Sumof all tasktimes 380

 84.4%
No. of workstations
*Cycletime 5 * 90

Mixed-Model Line Balancing
• Most factories produce a number of

diferent products.
– Inventory can be reduced by building some o
each product during every period (e.g., day,
week, etc.).
• Mixed-model line balancing is one means

of scheduling this varied production.

Example: Mixed-Model Line
Balancing
• Processing must be completed for both Model J an
Model K wagons.
• Equal number of each model are required.
• Cycle time is 6 minutes for Model J and 4 minutes
for Model K.
• In an 8-hour day, how should the models be
processed?
Total Processing Time Because K = J, we

can produce 48 of
each per day (6 of
each per hour.

Example: Mixed-Model Line
Balancing
This approach often requires diligent eforts to reduce setup

times and costs, but can significantly reduce overall inventory
levels.
Toyota Production System (TPS) – Hiejunka

JKJKJKJKJKJK
Toyota Capacity
1997: Cars and

vans?
That’s crazy talk
First time in North
America
292,000 Camrys
89,000 Siennas
89,000 Avalons

Product & Process Layout
Pros & Cons
Functional (Process)
Assembly Line (Product) Layou
Layout
Sharing of specialized and Standardised product/ process
costly equipments routing
Advantages More flexibility Operational Control is simpler
Less vulnerable to
High output rate is possible
breakdowns
Large Inventory buildup Low tolerance for breakdowns
Duplication of equipments
Operational control difficult
Disadvantages leading to high cost
Less flexibility due to dedication

Excess Material Handling
of resources

Flexible Line Layouts
Problem – operators Solution – remove

trapped in “cages” barriers so operators
prevents sharing can trade work and
work among them operators can be
added or removed
as needed

Problem – operators
“birdcaged” with no
opportunity to share
work or add third
operator Solution – operators
can help each other
and third operator
can be added if
needed
Problem – straight
line is difficult to
balance
Solution – U-shaped
line gives better
operator access and
may reduce need for
operators
One man multiple machine layout
An example from Lucas TVS
Old Layout Revised Layout
4 way 4 way
Lathe Drill Drill
Pres
SS
 s
 Drill
 SS
Pres
s Drill
Bench 
Lathe Bench
Source: N Ravichandran, “A Journey Toward Manufacturing Excellence” CII Quality Summit 2000, 61 – 115.
GROUP TECHNOLOGY, CELLULAR
LAYOUTS

Developing a Manufacturing Cell
• Grouping parts into families that follow a

common sequence of steps
• Identifying dominant flow patterns of
parts families as a bases for location of
processes
• Physically grouping machines and
processes into cells

Group Technology Layout
An example
Cell 1 Cell 2
L M D M D L
D L G G D L
L D L D
M L G L M
Cell 4 Cell 3

Example: Original Work-center
Layout

Example: Routing Matrix Based
upon Flow of Parts

Example:
Reallocating
Machines to
Form Cells
Focused Factories; Plant Within

Plant (PWP)

Design of GT Layout
Guiding Principles
• The objective is one of sub-dividing an universe of machines and

components into sub-groups
– Each sub-group of components form a part family and is endowed with
corresponding sub-group of machines known as machine groups
– Each sub-group is referred to as a cell
• GT layout design is done with a systematic analysis of a machin

component incident matrix
• Number of methods available for identifying sub-groups

– Production Flow Analysis (PFA)
– Clustering techniques
– Matrix manipulation methods
– Graph theory
– Mathematical programming methods

Machine – Component Incident Matrix
Before Grouping
Components
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
A 1 1 1
Machines
B 1 1 1
C 1 1 1 1
D 1 1 1
E 1 1 1 1 1 1
F 1 1 1
G 1 1 1 1 1 1
H 1 1 1 1 1 1
I 1 1 1 1 1 1
J 1 1 1 1 1 1

Machine – Component Incident Matrix
After Grouping
Components
2 3 5 8 1 4 7 20 18 17 15 14 13 6 9 11 12 16 19
B 1 1 1 1
C 1 1 1 1
Machines
D 1 1 1
A 1 1 1
F 1 1 1
E 1 1 1 1 1 1
I 1 1 1 1 1 1
G 1 1 1 1 1 1
H 1 1 1 1 1 1
J 1 1 1 1 1 1

Manufacturing Cell Benefits
• Better human relations

• Improved operator expertise
• Less in-process inventory and material
handling
• Faster production setup

PROJECT AND ALTERNATE LAYOUTS

Project Layout
• Is characterized by a relatively low number of
production units.
• Visualize the product as the hub of a wheel with

materials and equipment arranged concentrically
around the production point.
• A high degree of task ordering is common.
• To the extent that this precedence determines

production stages, a project layout might be
developed by arranging materials according to their
technological priority.

Retail Service Layout
• Goal — maximize net profit per square foot
of floor space
• Servicescapes
– Ambient conditions
• Background characteristics, such as noise
– Spatial layout and functionality
• Planning the circulation path of customers and
grouping merchandise
– Signs, symbols, and artifacts
• Parts of the service that have social significance

Alternative Store Layouts

Marketing Research and Retail Layou
• People in supermarkets tend to follow a perimeter pattern in thei

shopping behavior. Placing high-profit items along the walls of a
store will enhance their probability of purchase.
• Sale merchandise placed at the end of an aisle in supermarkets

almost always sells better than the same sale items placed in the
interior portion of an aisle.
• Credit and other non-selling departments that require customers

wait for the completion of their services should be placed either o
upper floors or in “dead” areas.
• In department stores, locations nearest the store entrances and

adjacent to front window displays are most valuable in terms of
sales potential.

Alternative Layouts
Functional Lay-
out An example from Banking Product Lay-out
APPENDIX
APPENDIX ENTRY
ENTRY LAYOUT- STATE
LAYOUT - STATE BANK
BANK OFOF
3 B3 B
MYSORE
MYSORE
Bank A
LAYOUT - INDUSIND BANK
APPENDIX 3 A Bank B
ENTRY
FOREX DIVISION BILLS

MANAGER BILLS
MANAGER
WAITING
COMMUNICATIONS RECEIVING PAYING
AREA KITCHEN ROOM STRONG RECEIVING PAYING
ROOM CASH COUNTERS
STRONG
ROOM CASH COUNTERS
DY.
REST - MANAGER
RECEPTIONIST ROOMS
SECY. DY.
MANAGER
CREDIT COMPUTER
OPERATIONS ROOM
COMPUTER
CURRENT
ROOM
CREDIT RECORDS
ROOM A/C &
OPERATIONS OTHERS
RECORDS CURRENT
CONFERENCE A/C &
ROOM ROOM
OTHERS
VICE -
MGR. PRESIDENT
OPS LUNCH
ROOM
UPS
MGR.
CREDIT LUNCH LOANS FIXED
ROOM &ADVANCES DEPOSITS
UPS
LOANS FIXED
8/23/2017 Prof Kalyana C Chejarla &ADVANCES DEPOSITS
Source: Mahadeva
Q & A / DISCUSSION

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Facility Layout

PGDM (2017-19): Term I

8/23/2017 Prof Kalyana C Chejarla

8/23/2017 Prof Kalyana C Chejarla Source: Chase

Product Total Distance Number of Average

8/23/2017 Prof Kalyana C Chejarla Source: Mahadeva

8/23/2017 Prof Kalyana C Chejarla Source: Mahadeva

• Assembly line (flow-shop layout)

8/23/2017 Prof Kalyana C Chejarla Source: Chase

Volume attributesHigh Volume Mid-volume Low volume One piece

8/23/2017 Prof Kalyana C Chejarla Source: Mahadeva

8/23/2017 Prof Kalyana C Chejarla Source: Mahadeva

8/23/2017 Prof Kalyana C Chejarla

8/23/2017 Prof Kalyana C Chejarla Source: Chase

Lathe Machines Drilling Machines

• One can model the above as a mathematical

8/23/2017 Prof Kalyana C Chejarla Source: Mahadeva

8/23/2017 Prof Kalyana C Chejarla Source: Chase

2. Determine the cost of this layout.

3. Search for work-center location change

8/23/2017 Prof Kalyana C Chejarla Source: Chase

8/23/2017 Prof Kalyana C Chejarla Source: Chase

8/23/2017 Prof Kalyana C Chejarla Source: Chase

8/23/2017 Prof Kalyana C Chejarla Source: Chase

8/23/2017 Prof Kalyana C Chejarla Source: Fitzsimmon

Triangularized Flow Matrix

Total Flow: 209 CF = 1x12 = 12

8/23/2017 Prof Kalyana C Chejarla Source: Fitzsimmon

• Systematic Layout Planning (SLP)

8/23/2017 Prof Kalyana C Chejarla Source: Chase

8/23/2017 Prof Kalyana C Chejarla Source: Mahadeva

8/23/2017 Prof Kalyana C Chejarla Source: Chase

8/23/2017 Prof Kalyana C Chejarla Source: Fitzsimmon

8/23/2017 Prof Kalyana C Chejarla

8/23/2017 Prof Kalyana C Chejarla Source: Chase

Lathe Machines Drilling Machines

8/23/2017 Prof Kalyana C Chejarla Source: Chase

• Assembly-line balancing: assigning all tasks to a se

• Precedence relationship: the order in which tasks m

8/23/2017 Prof Kalyana C Chejarla Source: Chase

8/23/2017 Prof Kalyana C Chejarla Source: Chase

Production time per day

8/23/2017 Prof Kalyana C Chejarla Source: Chase

8/23/2017 Prof Kalyana C Chejarla Source: Chase

Task Followers Task Followers

Production time per day 60 sec. x 420 min

8/23/2017 Prof Kalyana C Chejarla Source: Chase

8/23/2017 Prof Kalyana C Chejarla Source: Chase

8/23/2017 Prof Kalyana C Chejarla Source: Chase

• Split the task

8/23/2017 Prof Kalyana C Chejarla Source: Chase

• Can you reduce the number of workers required in Custom Shirts

2. There are 8 tasks required to manufacture the

8/23/2017 Prof Kalyana C Chejarla Source: Mahadeva

8/23/2017 Prof Kalyana C Chejarla Source: Mahadeva

Precedence relationship among the tasks

8/23/2017 Prof Kalyana C Chejarla Source: Laguna & Marklu

• Since the desired production rate is only 320 cabinets, one

8/23/2017 Prof Kalyana C Chejarla Source: Laguna & Marklu

Average Utilization = Sumof all tasktimes 380

8/23/2017 Prof Kalyana C Chejarla Source: Laguna & Marklu

• Most factories produce a number of

• Mixed-model line balancing is one means