Layout

Management
 What is layout planning?
Layout decisions translate into
the physical arrangements of
people, equipment and space.

Goal:
The goal of layout planning is to
allow workers and equipment to
operate most effectively.
 Increasing customer
convenience and sales e.g. at
a retail store.
 Reducing hazards to workers.
 Improving employee morale.
 Improving communication.
 Layout Types
There are 4 main types of layout
depending upon the
organization's positioning
strategy
1. Process Layout
2. Product Layout
3. Hybrid Layout
4. Fixed Position
 Process Layout
Grinding Forging Lathes
Advantages of
process layout.
Painting Welding Drills

Office Milling Foundry

1. Resources are
relatively general
LAYOUT OF A JOB SHOP
purpose and less
capital intensive.
 Advantage of Process Layout (Cont)
2. The process layout is less
vulnerable to change in product
mix or new marketing
strategies and is therefore more
flexible
3. Equipment utilization is higher
4. Employee supervision can be
specialized.
 Disadvantage of process layout
1. Processing rates tend to be slower
2. Productive time is lost in change
over from one product or service.
3. More space and capital tied up in
inventory.
4. Time lags between start and end is
longer
4. Material handling tends to be
costly.
5. Jumbled flows requires
variable path devices rather
than conveyors.
6. Production planning and
control is more difficult.
Designing Process Layout
3 Steps involved in designing
process layouts:
1) Gather Information
2) Develop a proposed Block
Plan
3) Design a detail Block Plan
Designing Process Layout (Cont)
1) Gather information

I. Space Requirement
II. Available Space
III. Closeness Factor
 Space Requirement
Space requirement is tied to the
capacity requirements.
The process is first grouped into
different departments.
Secondly Total space reqd. is calculated
by adding together the deptt. wise
space reqmnt. keeping the specific
eqpt. and circulation space into
consideration.
 Designing Process Layouts

 Goal: minimize material handling costs

 Block Diagramming
 minimize nonadjacent loads
 use when quantitative data is available
 Relationship Diagramming
 based on location preference between areas
 use when quantitative data is not available
 Block Diagramming

STEPS 
 Unit load
 create load summary chart
– quantity in which  calculate composite (two
material is normally way) movements
moved
 develop trial layouts
 Nonadjacent load minimizing number of
– distance farther nonadjacent loads
than the next block

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Office of Budget Management
Department Area Needed (ft2)
1. Administration 3,500
2. Social services 2,600
3. Institutions 2,400
4. Accounting 1,600
5. Education 1,500
6. Internal audit 3,400
Total 15,000
3 6 4

100

1 2 5

150'
Office of Budget 3 6 4

100'

Management 1 2

150'
5

Trips between Departments

Department 1 2 3 4 5 6
1. Administration — 3 6 5 6 10
2. Social services — 8 1 1
3. Institutions — 3 9
4. Accounting — 2
5. Education — 1
6. Internal audit —

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 20
Office of Budget 3 6 4

100'

Management 1 2

150'
5

 Departments 1 and 6 close together

 Departments 3 and 5 close together
 Departments 2 and 3 close together

100'

1 5

150'
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 20
Office of Budget 3 6 4

100'

Management 1 2

150'
5

 Departments 1 and 6 close together

 Departments 3 and 5 close together
 Departments 2 and 3 close together

6 3

100'

1 5

150'
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 20
Office of Budget 3 6 4

100'

Management 1 2

150'
5

 Departments 1 and 6 close together

 Departments 3 and 5 close together
 Departments 2 and 3 close together

6 2 3

100'

1 4 5

150'
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 20
Office of Budget 3 6 4

100'

Management 1 2

150'
5

 Departments 1 and 6 close together

 Departments 3 and 5 close together
 Departments 2 and 3 close together

6 2 3

100'

1 4 5

150'
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 20
 Distance Measures
Euclidian Distance

dAB = (xA – xB)2 + (yA – yB)2

Rectilinear Distance

dAB = |xA – xB| + |yA – yB|

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 20
Office of Budget Management 3 6 4

100'

1 2 5

Load Distance Analysis 150'

Current Plan Proposed Plan

Dept Closeness Distance Distance
Pair Factor, w d wd Score d wd Score
1,2 3 1 3 2 6
1,3 6 1 6 3 18
1,4 5 3 15 1 5
1,5 6 2 12 2 12
1,6 10 2 20 1 10
2,3 8 2 16 1 8
2,4 1 2 2 1 1
2,5 1 1 1 2 2
3,4 3 2 6 2 6
3,5 9 3 27 1 9
4,5 2 1 2 1 2
5,6 1 2 2 3 3
ld = 7.2
Example 112 ld = 82
 Product Layout

Station 1 Station 2 Station 3 Station 4

LAYOUT OF A PRODUCTION LINE

 Product Layout (Cont)
 In a product based layout the
work stations are arranged in
a sequence.
 The product moves from one
station to another until its
completion at the end of the
line.
Advantages of Product Layout

1. Faster processing rates.

2. Lower inventories.
3. Less unproductive time lost
to changeovers and material
handling.
 Disadvantages of Product Layout
1. Greater risk of layout redesign
for product or services with
short or uncertain lives.
2. Less flexibility.
3. Low resource utilization for
low-volume products or
services.
 Designing Product Layouts
Elements to be considered when
designing a Product Layout
1) Line Balancing
i. Precedence diagram
ii. Desired output rate
iii. Cycle time
iv. Theoretical minimum
v. Idle time, Efficiency and Balance
delay
Designing Product Layouts (Cont)

2. Other Considerations
i. Pacing.
ii. Behavioral factors
 Layout Types

Grinding Forging Lathes

Painting Welding Drills

Milling
Office machines Foundry

(a) Layout of a job shop

Figure 7.5
 Layout Types

Grinding Forging Lathes

Painting Welding Drills

Milling
Office machines Foundry

(a) Layout of a job shop

Figure 7.5
 Layout Types

Grinding Forging Lathes

Painting Welding Drills

Milling
Office machines Foundry

(a) Layout of a job shop

Figure 7.5
 Layout Types

Grinding Forging Lathes

Painting Welding Drills

Milling
Office machines Foundry

(a) Layout of a job shop

Figure 7.5
 Layout Types

Grinding Forging Lathes

Painting Welding Drills

Milling
Office machines Foundry

(a) Layout of a job shop

Figure 7.5
 Layout Types

Station 1 Station 2 Station 3 Station 4

(b) Layout of a production line

Figure 7.5
 Layout Types

Station 1 Station 2 Station 3 Station 4

(b) Layout of a production line

Figure 7.5
 Layout Types

Station 1 Station 2 Station 3 Station 4

(b) Layout of a production line

Figure 7.5
 Layout Types

Station 1 Station 2 Station 3 Station 4

(b) Layout of a production line

Figure 7.5
 Layout Types

Station 1 Station 2 Station 3 Station 4

(b) Layout of a production line

Figure 7.5
 Hybrid Layout
What are Hybrid Layout?
Hybrid layout are a combination of both
Process and Product focused layout.
When volumes aren’t high enough to
justify dedicating a single line of multiple
workers to a single product, managers
may be able to derive the benefits of
product and process layouts by creating a
Hybrid Layout.
 Hybrid Layout (Cont)
Where are Hybrid Layouts used?

1) Manufacturing
2) Non-Manufacturing (e.g.. Retail
stores, Super Markets)
Hybrid Layout in Manufacturing
Hybrid layouts are used where
both fabrication and assembly
operations are being carried out.
Fabrication: Where parts are
manufactured from raw material
Assembly: Where parts are
assembled into finished
product.
 Non-Manufacturing Hybrid
Layouts
Retail outlets and Super markets are
a good example of Non-Mfg. Hybrid
layouts where the manager can
group similar merchandise (Process
layout), at the same time the layout
leads customer along pre-
determined paths (Product layout)
 Creating Hybrid Layouts
Two techniques for creating
hybrid layouts
1. One worker multiple machine
stations (OWMM)
2. Group Technology cells (GTCs)
 Creating Hybrid Layouts (Cont)
One Worker Multiple Machines
(OWMM):
The principle of OWMM is if the
production line is not
sufficient to keep several
workers busy, a line small
enough to keep one worker busy
may be set up.
Group Technology
Machine 2
Machine 1 Machine 3

Materials in

Finished goods out

Machine 4

Machine 5
 Creating Hybrid Layouts (Cont)
Group Technology cells (GT):
This manufacturing technique
groups parts or products with
similar characteristics into
families and set aside machines
for their production
(e.g. bolt production)
Group Technology
Lathing Milling Drilling

L L M M D D

D D
L L M M

Grinding

L L M M
G G

L L Assembly
G G
A A

Receiving and A A G G
shipping

Figure 7.6
Group Technology
Lathing Milling Drilling

L L M M D D

D D
L L M M

Grinding

L L M M
G G

L L Assembly
G G
A A

Receiving and A A G G
shipping

(a) Jumbled flows in a job shop without GT cells Figure 7.6

Group Technology
Lathing Milling Drilling

L L M M D D

D D
L L M M

Grinding

L L M M
G G

L L Assembly
G G
A A

Receiving and A A G G
shipping

(a) Jumbled flows in a job shop without GT cells Figure 7.6

Group Technology
Lathing Milling Drilling

L L M M D D

D D
L L M M

Grinding

L L M M
G G

L L Assembly
G G
A A

Receiving and A A G G
shipping

(a) Jumbled flows in a job shop without GT cells Figure 7.6

Source: Mikell P. Groover. Automation, Production Systems, and Computer-Aided Manufacturing. Upper Saddle River, NJ: Prentice Hall, 1980, pp. 540–541. Used by
permission.
Group Technology

L L M D G Assembly
area
Cell 1 Cell 2 A A

Receiving L M G G

Cell 3

L M D
Shipping

(b) Line flows in a job shop with three GT cells Figure 7.6
Group Technology

L L M D G Assembly
area
Cell 1 Cell 2 A A

Receiving L M G G

Cell 3

L M D
Shipping

(b) Line flows in a job shop with three GT cells Figure 7.6
Group Technology

L L M D G Assembly
area
Cell 1 Cell 2 A A

Receiving L M G G

Cell 3

L M D
Shipping

(b) Line flows in a job shop with three GT cells Figure 7.6
Group Technology

L L M D G Assembly
area
Cell 1 Cell 2 A A

Receiving L M G G

Cell 3

L M D
Shipping

(b) Line flows in a job shop with three GT cells Figure 7.6
Source: Mikell P. Groover. Automation, Production Systems, and Computer-Aided Manufacturing. Upper Saddle River, NJ: Prentice Hall, 1980, pp. 540–541. Used by
permission.
 Fixed Layout
The product is fixed in one
place and workers come to the
product along with their tool
and equipment to work on it.
Example:
Shipyards, Airplane assembly,
mining, oil drilling etc.
 Warehouse Layouts

Warehouses are similar to

manufacturing plants in that
materials are moved between
activity centers.
 Designing Warehouse Layouts

Layout for a
dock
Aisle Distribution
Systems Warehouse
 Office Layouts
Office Layout affect both
productivity and the quality of
work life. There are two things
that a designer should keep in
mind when designing an office.
1)Proximity.
2)Privacy.