ACQUIRED PREVIOUS KNOWLEDGE

Capacity Design and Utilization and Break-Even Decision Trees Strategy-Driven Net Present Value
Effective Efficiency Analysis and Capacity Investment
Capacity Decision
FACILITY LAYOUT
Topic 3
TOPIC OUTLINE:

Objective of Basic Types of Product versus

Facility Layout Layout Process Layout

Cellular Assignment
Proximity
Layouts Problem
OBJECTIVES:
▪ A facility layout problem may have
many objectives.
▪ In the context of manufacturing
plants, minimizing material handling
costs is the most common one.
▪ Other objectives include efficient
utilization of
▪ space
▪ labor
▪ Eliminate
▪ bottlenecks
▪ waste or redundant movement
OBJECTIVES OF FACILITY
LAYOUT

Facilitate Minimize Provide

organization manufacturing convenience,
structure cycle time or safety and
communication customer flow comfort of the
and interaction time employees
between investment flexibility to
workers adapt to
manufacturing changing
process conditions
visual control
BASIC TYPES OF LAYOUTS

Process Layout Product Layout

Used in a job shop for a low Used in a flow shop for a high
volume, customized products volume, standard products
BASIC TYPES OF LAYOUTS

Fixed Position Cellular

Layout layouts

A cell contains a group of

machines dedicated for a
Used in projects for large group of similar parts
products e.g., airplanes, • Suitable for producing a wide
ships and rockets variety parts in moderate volume
PRODUCT VS. PROCESS LAYOUTS
PRODUCT LAYOUT
▪ It is arrangement of machines.
▪ Every job visits the machines in the same
order.
▪ This type of layout is suitable for a make-to-
stock or an assemble-to-stock production
environment, as in a flow shop where products
are standard, demand stable, and volume of
production high.
▪ Since variety is low, special purpose
equipment and workers with a limited skill are
needed.
▪ Advantage: A product layout provides
efficiency.
PROCESS LAYOUT
▪ It is a functional grouping of machines.
▪ Different job jumps from one area to another
differently. Hence, the flow of jobs is difficult to
perceive.
▪ This type of layout is suitable for a make-to-
order or an assemble-to-order production
environment, as in a job shop where
customization is high, demand fluctuates, and
volume of production low.
▪ Since a wide variety of products are produced,
general purpose equipment and workers with
varied skills are needed.
▪ Advantage: A process layout provides
flexibility
PRODUCT VS. PROCESS LAYOUTS
PRODUCT LAYOUT PROCESS LAYOUT

• Inventory: A product layout ▪ Inventory: On the other hand,

has a low work-in-process a process layout has a high
inventory and high finished work-in-process inventory and
goods inventory because low finished goods inventory.
production is initiated by
demand forecast.
▪ Material handling: But variable
• Material handling: A product
layout can use automatic path forklifts are suitable for a
guided vehicles which travels process layout.
in a fixed path.
PRODUCT VS. PROCESS LAYOUTS
PRODUCT LAYOUT
• Scheduling/line balancing: In
case of a product layout,
sequencing and timing of
product flow are standard and
set when the line is designed.
With a change in demand, a
product layout may need a new
line balancing decision.
PROCESS LAYOUT
• Scheduling/line balancing: In
case of a process layout, jobs
arrive throughout the planning
period. A process layout
requires dynamic scheduling
where a new scheduling
decisions is made whenever a
new job arrives.
PRODUCT
LAYOUT
EXAMPLE
PROCESS
LAYOUT
EXAMPLE
FIXED POSITION
LAYOUT
▪ A fixed-position layout is
where the product stays
stationary while workers
come to the product site to
build it.
▪ Fixed-position layouts are
ideal for products that are
large, heavy, or too fragile
to move.
CELLULAR LAYOUTS

▪ Every cell contains a group of

machines which are dedicated to
the production of a family of
parts.
▪ One of the problems is to identify
a family parts that require the
same group of machines.
▪ These layouts are also called as
group technology layouts.
SAMPLE OF LAYOUT
PROBLEM
CELLULAR
LAYOUTS
EXAMPLE
The slide shows a facility
in which three parts A, B,
C flow through the
machines.
• A=RM-1-2-4-8-10-Assy
• B=RM-5-7-11-12-Assy
• C=RM-3-6-9-Assy
How to have a more
efficient layout?
 CELLULAR LAYOUTS
PARTS
MACHINES EXAMPLE
1 2 3 4 5 6 7 8 9 10 11 12
• The slide provides the information in a
A X X X X X
matrix form which includes some other
B X X X X
parts D, E, F, G, H.
C X X X
• The rows correspond to the parts and
D X X X X X columns to the machines.
E X X X • Just by interchanging rows and columns,
F X X X eventually a matrix is obtained where
G X X X X
the “X” marks are all concentrated near
the diagonal. This matrix provides the
H X X X
cells. For example, parts A, D, and F
require Machines 1, 2, 4, 8 and 10 which
forms a cell.
 CELLULAR
PARTS
MACHINES LAYOUTS
1 2 4 3 5 6 7 8 9 10 11 12 EXAMPLE
A X X X X X
▪ Interchange column 3
B X X X X and column 4
C X X X

D X X X X X

E X X X

F X X X

G X X X X

H X X X
 CELLULAR
MACHINES LAYOUTS
PARTS
1 2 4 3 5 6 7 8 9 10 11 12 EXAMPLE
A X X X X X ▪ Put row D after row A
D X X X X X

B X X X X

C X X X

E X X X

F X X X

G X X X X

H X X X
 MACHINES
CELLULAR LAYOUTS
PARTS EXAMPLE
1 2 4 8 3 5 6 7 9 10 11 12

A X X X X X
▪ Put column 8 after
D X X X X X column 4
B X X X X

C X X X

E X X X

F X X X

G X X X X

H X X X
 CELLULAR LAYOUTS
MACHINES
PARTS EXAMPLE
1 2 4 8 3 5 6 7 9 10 11 12

A X X X X X
▪ Put row F after row D
D X X X X X

F X X X

B X X X X

C X X X

E X X X

G X X X X

H X X X
 MACHINES
CELLULAR LAYOUTS
PARTS EXAMPLE
1 2 4 8 10 3 5 6 7 9 11 12

A X X X X X
▪ Put column 10 after
D X X X X X column 8
F X X X

B X X X X

C X X X

E X X X

G X X X X

H X X X
 MACHINES
CELLULAR LAYOUTS
PARTS EXAMPLE
1 2 4 8 10 3 6 9 5 7 11 12

A X X X X X
▪ Arrange other rows:
D X X X X X C, G, B, E, and H
F X X X

C X X X

G X X X X

B X X X X

E X X X

H X X X
CELLULAR
LAYOUTS
EXAMPLE
ADVANTAGES OF CELLULAR
LAYOUTS
1. Reduced material handling and transit time
2. Reduced setup time
3. Reduced work-in-process inventory
4. Better use of human resources
5. Better scheduling, easier to control and automate
DISADVANTAGES OF CELLULAR
LAYOUTS
1. Sometimes cells may not be formed because of inadequate
part families.
2. Some cells may have a high volume of production and others
very low. This results in poorly balanced cells.
3. When volume of production changes, number of workers are
adjusted, and workers are reassigned to various cells. To
cope with this type of reassignments, workers must be multi-
skilled and cross-trained.
4. Sometimes, machines are duplicated in different cells. This
increases capital investment.
 An activity relationship chart is a
graphical tool used to represent
importance of locating pairs of
operations near each other.

ACTIVITY Importance is described using

RELATIONSHIP letter codes defined below:
CHART
• A – absolutely necessary
• E – especially important
• I – important
• O – ordinarily important
• U – unimportant
• X – undesirable
ACTIVITY
RELATIONSHIP
CHART
FROM-TO CHART
▪ A from-to chart is used to
analyze flow of materials
between departments. The
Punch example below shows
Saws Milling Press Drills
distances in feet. So, the
Saws 18 40 30
distance between Saws and
Milling 18 38 75
Punch Press 40 38 22 Drills is 30 feet. The chart
Drills 30 75 22 may also show material
handling trips or cost per
period.
ASSIGNMENT METHOD
▪ Many methods can be used to solve the facility layout problem. Here we discuss
assignment method to minimize material handling costs.
▪ Suppose that some machines 1, 2, 3, 4 are required to be in A, B, C, D. The cost of
locating machines to locations are known and shown below. For example, if
Machine 2 is located to location C, the cost is 7 (say, hundred dollars per month).

Location
Machine A B C D
1 10 7 6 11
2 6 4 7 9
3 8 6 5 6
4 9 5 3 12
ASSIGNMENT METHOD
▪ The problem is to locate the
machines to minimize total material
handling costs. Location
▪ One solution can be (not necessarily Machine A B C D
and optimal solution) to assign 1, 2, 3,
4 to respectively C, B, A, D. In such a 1 10 7 6 11
case total cost is 6+4+8+12=30
hundred dollars per month.
2 6 4 7 9
3 8 6 5 6
4 9 5 3 12
 1. Perform row reductions
• Subtract minimum value in each row from all
other row values
2. Perform column reductions
• Subtract minimum value in each column
from all other column values

ASSIGNMENT 3. Line Test

METHOD • Cross out all zeros in matrix using minimum
number of horizontal & vertical lines. If
number of lines equals number of rows in
matrix, optimum solution has been found,
stop.

4. Matrix Modification
• Subtract minimum uncrossed value from all
uncrossed values & add it to all cells where
two lines intersect. Go to Step 3.
 ASSIGNMENT EXAMPLE
Location Row Reduction Column Reduction Line Test
Machines A B C D A B C D A B C D A B C D
1 10 7 6 11 4 1 0 5 2 1 0 4 2 1 0 4
2 6 4 7 9 2 0 3 5 0 0 3 4 0 0 3 4
3 8 6 5 6 3 1 0 1 1 1 0 0 1 1 0 0
4 9 5 3 12 6 2 0 9 4 2 0 8 4 2 0 8

Number lines = 3 <> 4 = number of rows. So, modify matrix

 ASSIGNMENT EXAMPLE
Line Test Modify Matrix Line Test
A B C D A B C D A B C D
2 1 0 4 1 0 0 4 1 0 0 4 # lines = # rows
0 0 3 4 0 0 4 5 0 0 4 5 so, at optimal solution
1 1 0 0 0 0 0 0 0 0 0 0
4 2 0 8 3 1 0 8 3 1 0 8
ASSIGNMENT EXAMPLE
Line Test Location Location
A B C D Machines A B C D Machines A B C D
1 0 0 4 1 1 0 0 4 1 10 7 6 11
0 0 4 5 2 0 0 4 5 2 6 4 7 9
0 0 0 0 3 0 0 0 0 3 8 6 5 6
3 1 0 8 4 3 1 0 8 4 9 5 3 12

Total material handling costs = 22

ACTIVITY: CELLULAR
LAYOUT
▪ Modify layout efficiently
using the cellular layout
method.
 ACTIVITY: ASSIGNMENT
JOBS METHOD
PERSONS
1 2 3 4 ▪ A job has four men
available for work on
separate jobs. Only one
A 20 25 22 28 man work on any one
job. The cost of
B 15 18 23 17 assigning each man to
each job is given in the
following table. The
C 19 17 21 24 objective is to assign
men to jobs such as the
D 25 23 24 24 total cost of assignment
is minimum.
REFERENCES:

Facility layout ppt Facility layout Facility Layout

(slideshare.net), (slideshare.net), (slideshare.net),
retrieved retrieved retrieved
September 30, 2023 September 30, 2023 September 30, 2023
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PRESENTATION
FACILITY LAYOUT
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