Layout Planning and Analysis - StudiousGuy

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The product manufacturing industry and service industry require a particular area
or place to perform its operations and arrange different physical facilities such as
equipment, machine. Apart from this, space is utilized to keep a stock of different
tools, raw materials, accessories, support services such as vehicle parking facility,
healthcare, customer interaction, restroom, food court.
Index of Article (Click to Jump)

Layout
Layout Planning
Objectives of Layout
RELATED POSTS
Classification of Facilities or Layout
Facilities related to production
Basic Competitive
Staff utilities Model in
Support facilities Economics
Additional facilities
https://studiousguy.com/layout-planning-and-analysis/#Material_Handling 1/22
The basis for Types of Layouts Operations

Scheduling with
Product Type
Examples
Production Volume
Types of Production Processes Nature And Scope
Why Layout decisions are important? of Economics
Importance of Layout Decisions from Strategic Point of View
Nature of Layout Issues or Problems
Aggregate Planning
To plan a whole new plant or facility
Expansion plan or shifting to an existing plant
Rearrangement of the current layout
Minute changes in existing layouts Methods of
Layout Redesigning Economic Analysis
Manufacturing Facility Layout

Layout Types
Systematic Layout Planning
Systematic Layout Planning Process
Input Data and Activities
Flow of Materials
Activity Relationship Chart
Space Requirements
Evaluation of Plant Layouts
Assembly Line Balancing
Line Balancing Concept
Calculations of Line Balancing
Material Handling
Types of Material Handling Equipment and their Selection
Horizontal Travel
Part to Picker
Person Abroad
Workplace Equipment
Special Equipment
Layout
To meet the above different needs of a production unit, a particular space is
determined and further, the allocation of different movements and activities is
done by dividing the space accordingly. Arranging the space in such a way is
termed as “layout” that generally resembles a floor plan and covers additional
details as well.
So, we can say, that layout is all about arranging different physical facilities that
are linked to various activities of customer service, production, support system,
and other related activities. It consists of arranging workstations in physical form,
inventory storage, material-handling space, utility places, and other spaces that are
required for the smooth running of production and its operations. The layout or
plant layout ensures the efficient utilization of manpower, material, energy, and
equipment. This helps in achieving the desired results of the production.
Layout Planning
Making decisions related to the physical arrangement of all available resources in
the production system that occupies space in the range of a facility; is called layout
planning. Different resources can be a work desk or a work station, the whole office
or a person, or a department. This type of layout planning decision is taken at the
time of designing a new facility or any changes in the resources such as the
movement of any machine, the addition of a new worker. Layout planning may
also carry out at the time of facility expansion or at the time of reducing the space.
Objectives of Layout
Plant layout is mainly aimed at increasing productivity and employee satisfaction
by maximizing production and keeping the production cost at a minimum level.
The planning of layout should be flexible so that it can be changed based on the
new processes and techniques of production. The layout should be designed in
such a way that it can fulfill the needs of all related stakeholders of the production
systems such as managers, workers, supervisors. So, plant layout has the following
objectives:
Achieving economies of scale in managing raw materials, goods i.e. both under
work-in-progress and finished goods.
Reducing the time engaged in work-in-process
Utilizing the available space in the most effective and optimum way
Minimizing any hurdles in different processes of production.
Introducing production control system
Ensuring the better quality of products at a reduced cost to customers
Boosting the morale of workers and ensuring their loyalty
Reducing the probability of accidents
Providing the sufficient storage and facilities of packing
Determining the future expansion possibilities of the plant
Providing a layout that allows achieving competitive costs
Providing overall satisfaction level to all stakeholders
Minimizing and controlling the internal transportation between different

operations in an efficient way
Avoiding the investment of capital that is not necessary
Facilitating effective labor utilization
Ensuring the sufficient lighting system and ventilation at different places of

work stations
Classification of Facilities or Layout

A manufacturing company consists of the following major facilities:
Facilities related to production

This includes facilities such as assembly, painting, workshops, machine shop, tool
room, inspection, and testing.
Staff utilities
This consists of facilities such as the canteen, restroom, healthcare, parking space
for vehicles, etc.
Support facilities
Includes facilities of the service center, storage, administrative, reception area,
library, etc.
Additional facilities
Facilities related to the board room, training room, conference hall, customer
service desk or counter, etc. come under additional facilities.
The service industry also has almost similar types of facilities that are used for
different service activities. For example, in hospitals, the layout includes
Waiting hall
Inquiries counters or help desks

Cafeteria or canteen
Parking facility for visitors and hospital staff
Medicine counters
Security check areas
Offices for administrative services
Restrooms
Wards for patients
Operation theatres, etc.
The basis for Types of Layouts

Layout types are usually selected based on the below aspects
Product Type
This is considered one of the main elements while determining types of layout
because different areas are required for different products as per the type of
processes and other supporting functions. For instance, the layout of the
manufacturing plant of a toy manufacturing company will be smaller in
comparison to the layout of the manufacturing unit of a cloth manufacturing
company.
Production Volume
The requirements of space are directly corresponding to the production volume.
Types of Production Processes

The requirement of areas of operations of different sizes depends on different
types of production processes. For example, the process of assembling the different
components of a car requires comparatively a much larger space than the area
required for the process of assembling different parts of a computer.
Why Layout decisions are important?

Facility layout decisions are important for obtaining the maximum effectiveness of
the process of production and satisfying the requirements of employees.
Apart from the above, below are the three main reasons due to which layout
decisions are considered important for an organization:
Essential investments in terms of money and effort are required for these
decisions
Long-term commitments are involved in these
These decisions leave a remarkable effect on short-term operations in terms of

cost and efficiency
Importance of Layout Decisions from

Strategic Point of View
Layout decisions are also important from a strategic aspect as it develops the
competitive priorities of an organization related to its processes, cost, customer
contact, flexibility, capacity. Through effective layout planning, a company is able
to make different strategic decisions related to low-cost advantage, product or
service differentiation, etc.
Nature of Layout Issues or Problems

There are mainly two types of problems associated with facility layout i.e. problem
of static facility layout and dynamic facility layout problem. Determining the
physical arrangement of equipment and machinery of production under an
available facility is considered a static layout facility problem. Under this approach,
the movements of materials among different work centers as well as the product
demand are static or fixed or remain unchanged during the planning stage.
Whereas, in the case of a dynamic facility layout problem, the flow of materials
among work centers, keep changing during the planning phase.
Under the above two problem categories, below layout problems take place:
To plan a whole new plant or facility

The layout problem includes the arrangement of all the facilities as a single
integrated system. It’s more challenging in the case of new product development or
moving to a new place. So, usually, a team of specialists handles this.
Expansion plan or shifting to an existing plant

In this problem, there is a limiting factor due to the pre-existence of buildings and
services. The problem here is moving the manpower, products, and facilities of an
existing company to a new plant that already exists with a basic layout. This
demands shifting to improved practices or methods of planning from the existing
old practices.
Rearrangement of the current layout

This problem occurs while using the improved and new methods, plans,
equipment at the existing facility. This problem generally comes when there are
changes in production style or introducing new equipment to modern technology.
Minute changes in existing layouts
This problem exists due to different reasons such as operating condition changes,
sales volume increase, change in the design of some parts, introducing new
equipment, adding the new products of a similar type, or inspection changes. This
ultimately calls for adjustments in different aspects such as workplaces,
manpower, and placing material. These types of adjustments are considered the
most common types of layout problems.
Layout Redesigning
Below are a few reasons that represent the requirement and necessity of
redesigning an existing layout:
Making changes in the design or process of the product without required

layout changes
The building is not suitable as per the requirement
A decline in production in a particular area
Idle time and delays that can’t be explained
Installing supporting equipment without taking consideration of link with the

existing or current flow pattern
Hurdles related to stock control
Movement of material by a lot of people
Production bottlenecks
A huge temporary storage
Hurdles in the flow of materials
Troubles in scheduling
Idle equipment and people
A great amount of time being used in the process
Hazards for safety or accident
Introducing new products or services
Manufacturing Facility Layout

In order to obtain the desired output level, the layout designed to fulfill the
purpose of manufacturing; has to focus mainly on the easy and smooth types of
operations. Also, a variety of output and expansions need to be considered equally.
Apart from this, different issues related to safety, productivity, and quality are
treated with the utmost importance for ensuring the superior quality of the
expected output.
So, in the layout development process for operations of manufacturing, the below
mention factors are considered:
The capacity required per time period basis of the layout facility
The required machines in terms of quantity, size, and sequence
Technology factors related to the productive processes
Precautions in terms of safety, provisions for healthcare facilities, comfort

requirements, accommodation needs of employees
Constraints of building and its size
The growth trends of an organization
Different characteristics of the material such as size, weight, shape, fragility,

etc.
Layout Types
There are mainly four types of layouts suitable for manufacturing units such as:
Process layout
Fixed-position layout
Product layout
Group technology or Cellular layout
We have thoroughly explained each Layout type in a separate article

here:
https://studiousguy.com/types-of-layout/
Systematic Layout Planning

According to Systematic layout planning as mentioned by Muther, R. (1984), the
plant layout design consists of the below four levels:
Site layout: It indicates the way a plant building should be placed.
Detailed layout: Indicates how different machines and workstations will be

arranged in different departments.
Block layout: This specifies the size and locations of various departments in the
plant building.
Workstation layout: Depicts workstation’s each part’s location.
While designing a new plant layout, two types of approaches or methods are
considered. The first approach or method includes identifying the functional areas
that are to be located through a closeness rating. In the second approach, the focal
point is the total distance traveled, and to minimize it by people or by materials,
different departments are organized.
As per the systematic layout planning concept of Richard Muther, below are the
steps that can be considered to develop new layouts by a manufacturing concern:
Plot the relationships through a chart
Establish requirements related to space
Activity relationships diagram
Draw relationships related to space
Evaluation of alternative arrangements
Detailing the layout plan that is selected
Below are the main three fundamentals on which every layout is based
Relationships: This is considered the desired relative degree of closeness

between different things.
Space: This includes the shape, type, configuration, or quantity of the things that
are being laid out.
Adjustments: This includes arranging things in a realistic way.
The above three fundamentals are always considered the main elements of any
type of layout planning project, irrespective of its size, processes, and products.
Systematic Layout Planning Process

According to the Systematic layout planning, the first step of the layout planning
process is to collect Input data and activities.
SYSTEMATIC LAYOUT PLANNING
Input Data and Activities

This includes collecting data related to the present setup and information on
different subdivisions that are involved in the process. Different variables in this
step include:
Product (P): This consists of types of products that will be produced within the
department.
Quantity (Q): Includes each part’s volume i.e. how much to produce.
Routing ( R ): The sequence of operations that will be carried out for each type of
part.
Services (S): Different support services or additional utilities are also planned and
integrated such as inspection areas, locker rooms, and others.
Timing (T): This includes the time period when the products will be produced and
the types of machines to be used during this time period.
Flow of Materials
This is considered the most significant step in layout planning. A progressive flow
can be obtained around the involved areas by layout planning near to the sequence
of material moves. To determine the material flow, it is required to chart the flow
process i.e. between raw material stores and production line, and between dispatch
of finished goods and finished goods store.
Activity Relationship Chart

This stage includes identifying relationships among different product lines. The
activity relationship chart is there to tabulate relationships.
To make decisions regarding the relationship ranking that each department has
with other departments, the conventional ranking method is used.
Space Requirements
Once the relationships between different processes are defined, further space
requirements are determined that are required for each process. To develop these,
process machinery and required equipment are analyzed. There must be a balance
between area requirements and available space. Then the formation of the space
relationship diagram thereby takes place by placing the area that is allotted for
each activity on the activity relationship diagram.
Below is the criterion on which the closeness among different pairs of

departments is based:
Same facilities of equipment are used by departments
Same records or personnel is shares among departments
The sequence of workflow is common in different departments
Communication is easy
The same type of work performed
Also, in case of unpleasant conditions, this closeness is avoided.
A letter code is used to express the closeness rating and further it gets changed
into a number form for simplifying the calculations.
For example, the below letter code indicates the degree of closeness among two
departments that are considered a pair:
A – Absolutely necessary
E – Very important
I – Important
O – Ordinary important or okay
U – Unimportant
X – Undesirable
The below diagram shows the closeness ratings through a special chart termed as
REL chart
Evaluation of Plant Layouts

Once a layout is prepared, then there is a need for evaluation of its efficiency to
know how effective it is. No single measure is suitable alone for this and several
measures may be considered for evaluation of layouts.
There are mainly two types of techniques i.e. Systematic and Optimizing.
The systematic technique includes an organized approach through which the best
layout can be selected. Wherein, through optimization techniques, the best
solution can be determined.
Common evaluation methods are listed as under
Cost comparison
Space evaluation
Productivity evaluation
There is a common technique through which product flow can be measured i.e. the
material handling. The tool is termed as a travel chart or matrix of load-distance.
This helps in new layout design and layout valuation. A travel chart depicts the
number of items or total material to be transport or the number of manpower that
will move between different departments. To figure out the corresponding
distance, the load is multiplied by the distance that is traveled. This is further
considered a measurement for layout evaluation. This also supports identifying
busy routes.
Travel Chart
In the above diagram, elements placed in the diagonal form will be zero. It
indicates that between the same departments, no movement is there. For instance,
zero units are transported from A to A. The values that are placed above the
diagonal show the forward direction movement, wherein, the values placed below
the diagonal depict the possibility of backtracking.
The travel chart uses numbers or units that show material handling quantity like
frequency of trips, pallet loads on daily basis, etc. Further different layouts are
evaluated to determine the total load times, the distance involved in each layout.
After this, the results are summarized.
Assembly Line Balancing

Assembly line is considered arranging facilities in a special way that is generally
along a u-shaped or a straight line. This arrangement is there to manufacture
finished goods or assemblies. The starting point of the assembly is in a skeleton
form at one side and different work stations are there through which it passes. In
between this process, different operations are handled and components are
included. Further, the final assembly is the output after transferring through
different successive stages. The arrangement of the assembly line is in such a way
that it is possible to manufacture products in a certain quantity over a specific
period of time. To support fast operations, the movement of assembly is at a
certain speed.
Line Balancing Concept

A simple line that is made for assembly purposes, includes a number of
workstations. It also includes a product’s total work content and is defined
according to the total time is allotted among workstations in equal form. For
instance, let’s say five operations are there at A, B, C, D, and E. Each of them can
depict a workstation or there is a combination of more than one operation at one
workstation. In such a simple line, visualizing the flow and doing work allocation is
easier. Below diagram shows the flow of a simple line that indicates the
workstations:
Simple Line Flow
The main objective of assembly line balancing is to distribute the work in available
workstations in the equal form in order to make sure that workstations are
equipped with loads evenly up to a maximum extent. This is considered balancing.
In the absence of such balance, there is a great chance of arising of inefficiency up
to a specific amount because there will be more load on a few workstations as
compared to others and it is expected that all workstations process an equal
number of items as per the given time period. Moreover, in case the work is
unequal at different workstations, then it will result in the distribution of work in
an unequal form and it will also form a queue of different items. So, for ensuring a
smooth flow, the same time is allotted to all the workstations to process the items.
There is a constant rate at which the whole line moves between workstations on a
power-driven or a manual conveyor.
The given time to each workstation in order to complete the given work is termed
as service time and each workstation has available time which is considered cycle
time. This is generally longer as compared to service time. The cycle time consists
of productive, non-productive time, and idle time (if any). Non-productive time
consists of movement time, inspection, and handling time.
There are “zoning” constraints that may influence the work allocation to a
workstation. There are two ways for its occurrence i.e. positive zoning and negative
zoning. The constraint of positive zoning requires the clubbing of specific
operations due to the sharing of certain resources. Wherein, the negative zoning
expects the clubbing of certain operations due to conflict situations. It is quite
difficult or not possible to obtain a perfect line balance due to these constraints
and so, a balancing loss or decay of a certain amount is likely to happen. So,
balance delay is considered the time difference between the service time and cycle
time.
The objectives of line balancing are as under:
Minimizing balancing delay or idle time
Minimizing the work stations
Even distribution of balancing delay among workstations
Calculations of Line Balancing

Line balancing can be calculated by different calculations. These calculations are
stated as under:
Cycle time C= 1/r
C stands for cycle time per unit (in hours), r stands for desired output rate per hour
(in units)
Theoretical workstations (minimum number):
For example, there is an assembly line that operates eight hours in total on daily
basis and the desired output per day is 240 units. Below table shows task times
and relationships among predecessors:
Task Time and Immediate Predecessor Table
Now we have to draw the precedence diagram and from that, we will find the cycle
time. The line will be balanced by using the rule of “longest task time”. Further,
efficiency and balance delay will be calculated.
Step 1: To draw the precedence diagram
The cycle time would be
= daily production time / daily required output
Production time (per day) = 8 hours per day or 3600 seconds per hours i.e. 28,800
seconds for 8 hours
Output needed (per day) = 240 units
So, cycle time = 28,800/240= 120 seconds per unit.
Step 2: Once the precedence diagram is there, the next step is related to assigning
different tasks to workstations. For this, the theoretical workstations (minimum
number) will be calculated first using the below formula:
Minimum workstations (in numbers) = total time for tasks / cycle time
= 420/ 120 = 3.5 or 4 (rounded off as workstations can’t be in friction value)
Step 3: Next step is to use the above total number of workstations for assigning
tasks by maintaining the precedence relationships. Also, total task time can’t be
more than the cycle time in each workstation.
To start with the first workstation, the task time of task A is 60 seconds and it can
be merged with the task where the total time is not more than 120 seconds.
A+B= 60+70= 130 (Not feasible as more than 120)
A+C= 60+30= 90 (feasible)
A+D= 60+40 = 100 (feasible)
Among the above two combinations of feasible tasks i.e. A+C, and A+D; A+D is
chosen by following the rule of the longest task time.
Step 4: Similarly, the assignment of other tasks takes place and the line is
balanced accordingly. Below table shows the final allotment of tasks among the
four workstations:
Task Allocation to the Workstations
In the below precedence diagram, workstations are marked.
The efficiency would be:
=T/ Na C = 420/ 4 (120) = 87.5%
Balance delay = 1- Efficiency
= 1- 87.5% = 12.5 %
Material Handling
Generally, in a manufacturing firm, there is a movement of the flow of materials in
different forms through the layout because the materials move through different
processing types. Typically, materials in a manufacturing concern are categorized
as raw material, work-in-progress or semi-finished goods, and finished goods. It is
a common practice that these materials move between workstations in manual
form or through power-driven equipment. Even the materials are monitored and
controlled from a remote position as well. So, the layout planning should consider
the required material handling and movements. The layout should provide the
required convenience and space for the people so that they can handle materials.
Also, consideration should be given to the speed and safety of the movement of
materials. Moreover, there should be sufficient space among different workstations
for the purpose of temporary storage. As space is a big concern, so material
handling is required to be done in a limited area with a critical focus on efficiency
and safety concerns. Further, due to advanced technology, different types of
material handling equipment are present in the market and so, these should be
selected wisely by taking care of reasonable returns and low capital investment.
Types of Material Handling Equipment and

their Selection
Below are the different types of equipment that facilitate the layout
planning process efficiently
Horizontal Travel
These are in the passageway. Worker acts as a picker who picks the product by
riding a vehicle and puts the product or items in the vehicle or cart. He/ she can
also use a conveyor to place the product. Storage systems such as Shelves, Gravity
flow racks, Pallet racks, Storage drawers can be used.
Part to Picker
This is considered a mechanized system. Trays or bins are carried to the person
picking through the storage device. Part to picker receives instructions through
picker by a remote control device and acts accordingly. The system can be accessed
through more than one picker as well.
Person Abroad
In this system, the picker is on a vehicle’s platform. Both upward and horizontal
movement is possible along the passageway.
Workplace Equipment
A workbench can be used to keep the product or item and to pick up. Items can be
kept and picked up by carts too.
Special Equipment
Special equipment is there for high space efficiency such as Rotary racks, items on
a conveyor belt, Moveable shelves, Mobile shuttles.
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10/5/23, 2:36 AM Layout Planning and Analysis – StudiousGuy

MBA  SCIENCE  MATHEMATICS HISTORY

Home  Economics  Layout Planning and Analysis

Layout Planning and Analysis RECENT POSTS

Index of Article (Click to Jump)

The basis for Types of Layouts Operations

Manufacturing Facility Layout

Reducing the time engaged in work-in-process

Minimizing any hurdles in different processes of production.

Introducing production control system

Ensuring the better quality of products at a reduced cost to customers

Boosting the morale of workers and ensuring their loyalty

Reducing the probability of accidents

Providing the sufficient storage and facilities of packing

Determining the future expansion possibilities of the plant

Providing a layout that allows achieving competitive costs

Providing overall satisfaction level to all stakeholders

Minimizing and controlling the internal transportation between different

Avoiding the investment of capital that is not necessary

Facilitating effective labor utilization

Ensuring the sufficient lighting system and ventilation at different places of

Classification of Facilities or Layout

Facilities related to production

Inquiries counters or help desks

The basis for Types of Layouts

Types of Production Processes

Why Layout decisions are important?

Long-term commitments are involved in these

These decisions leave a remarkable effect on short-term operations in terms of

Importance of Layout Decisions from

Nature of Layout Issues or Problems

To plan a whole new plant or facility

Expansion plan or shifting to an existing plant

Rearrangement of the current layout

Minute changes in existing layouts

Making changes in the design or process of the product without required

A decline in production in a particular area

Idle time and delays that can’t be explained

Installing supporting equipment without taking consideration of link with the

Hurdles related to stock control

Movement of material by a lot of people

A huge temporary storage

Hurdles in the flow of materials

Idle equipment and people

A great amount of time being used in the process

Hazards for safety or accident

Introducing new products or services

Manufacturing Facility Layout

The required machines in terms of quantity, size, and sequence

Technology factors related to the productive processes

Precautions in terms of safety, provisions for healthcare facilities, comfort

Constraints of building and its size

The growth trends of an organization

Different characteristics of the material such as size, weight, shape, fragility,

Group technology or Cellular layout

We have thoroughly explained each Layout type in a separate article

Systematic Layout Planning

Site layout: It indicates the way a plant building should be placed.

Detailed layout: Indicates how different machines and workstations will be

Workstation layout: Depicts workstation’s each part’s location.

Plot the relationships through a chart

Establish requirements related to space