Chapter 2

Facilities Planning
Prepared by:
Mohd Shahir Yahya

Sunday, October 04, 2015 Industrial Engineering 1

 FACILITIES LAYOUT

Sunday, October 04, 2015 Industrial Engineering 2

 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.
 Which comes FIRST, the material
handling system or the facilities layout?

Sunday, October 04, 2015 Industrial Engineering 3

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
Sunday, October 04, 2015 Industrial Engineering 4
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.

Sunday, October 04, 2015 Industrial Engineering 5

 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

Sunday, October 04, 2015 Industrial Engineering 6

 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
Sunday, October 04, 2015 Industrial Engineering 7
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

Sunday, October 04, 2015 Industrial Engineering 8

 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

Sunday, October 04, 2015 Industrial Engineering

Safety hazards
9
 The Need for Layout
Design (Cont’d)
Changes in
environmental Changes in volume of
or other legal output or mix of
requirements products

Morale problems
Changes in methods
and equipment

Sunday, October 04, 2015 Industrial Engineering 10

Basic Layout Types

 Product layouts
 Process layouts
 Fixed-Position layout
 Combination layouts

Sunday, October 04, 2015 Industrial Engineering 11

 Basic Layout Types
 Product layout
– Layout that uses standardized processing
operations to achieve smooth, rapid, high-
volume flow
 Process layout
– Layout that can handle varied processing
requirements
 Fixed Position layout
– Layout in which the product or project
remains stationary, and workers, materials,
and equipment are moved as needed
Sunday, October 04, 2015 Industrial Engineering 12
Product-Oriented Layout

 Product layouts are found in flow shops

(repetitive assembly and process or
continuous flow industries).
 Flow shops produce high-volume, highly
standardized products that require highly
standardized, repetitive processes.
 In a product layout, resources are arranged
sequentially, based on the routing of the
products.
Sunday, October 04, 2015 Industrial Engineering 13
Product-Oriented
Requirements
 Standardized product
 High production volume
 Stable production quantities
 Uniform quality of raw materials &
components

Sunday, October 04, 2015 Industrial Engineering 14

Product Layout

Sunday, October 04, 2015 Industrial Engineering 15

 Product Layout
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

Used for Repetitive or Continuous Processing

Figure 6.4
Sunday, October 04, 2015 Industrial Engineering 16
 Product-Oriented Layout
Advantages
 Lower variable cost per
unit
 Lower material handling
costs
 Lower work-in-process
inventories
 Easier training &
supervision
 Rapid throughput
Sunday, October 04, 2015 Industrial Engineering 17
Product-Oriented Layout
Disadvantages
 Higher capital
investment
– Special equipment
 Any work stoppage
stops whole process
 Lack of flexibility
– Volume
– Product
Sunday, October 04, 2015 Industrial Engineering 18
 A U-Shaped Production
Line
In 1 2 3 4

Workers

Out 10 9 8 7
Figure 6.6
Sunday, October 04, 2015 Industrial Engineering 19
Process Layout
Process Layout
(functional)

Dept. A Dept. C Dept. E

Dept. B Dept. D Dept. F

Used for Intermittent processing

Job Shop or Batch Processes
Figure 6.7
Sunday, October 04, 2015 Industrial Engineering 20
Process Layout

Sunday, October 04, 2015 Industrial Engineering 21

Emergency Room Layout
E.R.Triage Patient A -
broken leg
room
Patient B - erratic
pacemaker

Hallway

E.R. beds Pharmacy Billing/exit

Sunday, October 04, 2015 Industrial Engineering 22
Advantages of process
layouts
 Flexibility. The firm has the ability to handle a variety of
processing requirements.
 Cost. Sometimes, the general-purpose equipment
utilized may be less costly to purchase and less costly
and easier to maintain than specialized equipment.
 Motivation. Employees in this type of layout will
probably be able to perform a variety of tasks on
multiple machines, as opposed to the boredom of
performing a repetitive task on an assembly line. A
process layout also allows the employer to use some
type of individual incentive system.
 System protection. Since there are multiple machines
available, process layouts are not particularly vulnerable
to equipment
Sunday, October 04, 2015 failures. Industrial Engineering 23
Disadvantages of process
layouts
 Utilization. Equipment utilization rates in process layout
are frequently very low, because machine usage is
dependent upon a variety of output requirements.
 Cost. If batch processing is used, in-process inventory
costs could be high. Lower volume means higher per-unit
costs. More specialized attention is necessary for both
products and customers. Setups are more frequent, hence
higher setup costs. Material handling is slower and more
inefficient. The span of supervision is small due to job
complexities (routing, setups, etc.), so supervisory costs
are higher. Additionally, in this type of layout accounting,
inventory control, and purchasing usually are highly
involved.
 Confusion. Constantly changing schedules and routings
make juggling process requirements more difficult.
Sunday, October 04, 2015 Industrial Engineering 24
 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
Sunday, October 04, 2015 Industrial Engineering 25
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
– Weight
– Size
– Bulk
 Large construction projects
Sunday, October 04, 2015 Industrial Engineering 26
Fixed Position Layouts
 A fixed-position layout is appropriate for a product
that is too large or too heavy to move.
 For services, other reasons may dictate the fixed
position (e.g., a hospital operating room where
doctors, nurses, and medical equipment are
brought to the patient).
 For construction (e.g., buildings, dams, and electric
or nuclear power plants), shipbuilding, aircraft,
aerospace, farming, drilling for oil, home repair,
and automated car washes.
 In order to make this work, required resources
must be portable so that they can be taken to the
job for "on the spot" performance.
Sunday, October 04, 2015 Industrial Engineering 27
Fixed Position Layouts

Sunday, October 04, 2015 Industrial Engineering 28

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
Sunday, October 04, 2015 Industrial Engineering 29
Group Technology
One Worker, Multiple Machines Machine
2
Machine
Machine 3
1

Materials in

Finished
goods out

Machine
Figure 7.4 Machine 4
Sunday, October 04, 2015 Industrial Engineering 30
5
Work Cell Floor Plan
Saws Drills Office

Work Cell
Tool Room

Sunday, October 04, 2015 Industrial Engineering 31