Facility Layout

 “Layout : Layout planning is determining

the best physical arrangement of resources
within a facility
 What Is Layout Planning
It refers to the configuration of
departments, work centers, and equipment,
with particular emphasis on movement of
work (customers or materials) through the
system.
 Facility layout
 refers to the specific arrangement of
physical facilities.
1. a new facility is constructed,
2. there is a significant change in demand or
throughput volume,
3. a new good or service is introduced to the
customer benefit package, or
4. different processes, equipment, and/or
technology are installed.
 Importance (Objective) of
Facility Layout

 To facilitate attainment of product or service

quality.
 To use workers and space efficiently.
 To avoid bottlenecks.
 To minimize material handling costs.
 To eliminate unnecessary movements of
workers or materials.
 To minimize production time or customer
service time.
 To design for safety.
 Revision of Layout
1. Expansion
 Increase in the output of the existing product
 Introduction of a new product in the same line &
 Diversification of the lines of activity
2. Technological Advancement
 Replacement of labour by machines
 Developments in fuel and energy
 Development in process
 Development in materials
 Improvement in product design
 Advancement in IT
3. Improvement in the layout
 Types of Layouts

 Process layouts:
 Group similar resources together
 Product layouts:
 Designed to produce a specific product efficiently
 Hybrid layouts:
 Combine aspects of both process and product layouts
 Fixed-Position layouts:
 Product is two large to move; e.g. a building
 Process Layouts
 General purpose & flexible resources
 Lower capital intensity & automation
 Higher labor intensity
 Resources have greater flexibility
 Processing rates are slower
 Material handling costs are higher
 Scheduling resources & work flow is more
complex
 Space requirements are higher
Process Layout for a Machine Shop
Product Layouts

 Specialized equipment
 High capital intensity & wide use of
automation
 Processing rates are faster
 Material handling costs are lower
 Less space required for inventories
 Less volume or design flexibility
Product Layout for Wine Manufacturer
Assembly Line Layout
 Comparison of Product vs. Product Layouts

Process Layouts Product Layouts

Products: large #, different small # efficiently

Resources: general purpose specialized

Facilities: more labor intensive more capital intensive

Flexibility: greater relative to market lower relative to market

Processing slower faster

Rates:

Handling costs: high low

Space requirements: higher lower

 Fixed Position layout

 Resources have to be taken to the site

 Size of product is huge and bulky
Fixed Position Layout
9-18
Combination Layouts
 Some operational environments use a combination of the
three basic layout types:
 Hospitals
 Supermarket
 Shipyards
 Some organizations are moving away from process
layouts in an effort to capture the benefits of product
layouts
 Cellular manufacturing
 Flexible manufacturing systems

6-19
 Cellular Manufacturing Layout
 Machines are grouped into cells
 Cell function like a product layout within a large
shop or process layout.
 Each cell in the CM layout is formed to produce a
single parts family- a few parts, all with common
characteristics.
 These relate to the grouping of equipment and
include faster processing time, less material
handling, less work-in-process inventory, and
reduced setup time.
 Used when the operations system must handle a
moderate variety of products in moderate volumes
 Cellular Layout

Process (Functional) Layout Group (Cellular) Layout

A cluster
or cell
T T T CG CG T T T
M
T T T SG SG M M T

D D M D
M M D D D
SG CG CG D

M M D D D SG

Similar resources placed Resources to produce similar

together products placed together
A machine-component incident matrix (MCIM)
Rearranged rows and columns