Facility layout planning

Module 4
CONTENTS
• Layout and its objectives for manufacturing operations,
• principles, types of plant layouts – product layout, process layout, fixed position
layout, cellular manufacturing layouts, hybrid layouts, Factors influencing layout
changes. Problems.
• Time and Motion Study, Work Study in Management Science Maintenance:
• Reactive (run-to-failure),
• Predetermined maintenance,
• Preventive maintenance,
• Corrective maintenance,
• Condition-based maintenance,
• Predictive maintenance.
• Introduction to Lean operations and elimination of 7 wastes 5S of housekeeping.
Process layout
• All machines performing similar type of operations are grouped at
one location in the process layout e.g., all lathes, milling machines,
etc. are grouped in the shop will be clustered in like groups. Thus, in
process layout the arrangement of facilities are grouped together
according to their functions.
• Advantages
• 1. In process layout machines are better utilized and fewer machines
are required.
• 2. Flexibility of equipment and personnel is possible in process layout.
3. Lower investment on account of comparatively less number of
machines and lower cost of general purpose machines.
• 4. Higher utilization of production facilities.
• 5. A high degree of flexibility with regards to work distribution to
machineries and workers.
Limitations
• 1. Backtracking and long movements may occur in the handling of
materials thus, reducing material handling efficiency.
• 2. Material handling cannot be mechanized which adds to cost.
• 3. Process time is prolonged which reduce the inventory turnover and
increases the inprocess inventory.
• 4. Lowered productivity due to number of set-ups.
• 5. Throughput (time gap between in and out in the process) time is
longer.
• 6. Space and capital are tied up by work-in-process.
Product Layout
• machines and auxiliary services are located according to the
processing sequence of the product
• The product layout is selected when the volume of production of a
product is high such that a separate production line to manufacture it
can be justified
• Advantages
• 1. The flow of product will be smooth and logical in flow lines.
• 2. In-process inventory is less.
• 3. Throughput time is less.
• 4. Minimum material handling cost.
• 5. Simplified production, planning and control systems are possible.
• 6. Less space is occupied by work transit and for temporary storage. 7.
Reduced material handling cost due to mechanized handling systems and
straight flow.
• 8. Perfect line balancing which eliminates bottlenecks and idle capacity.
• 9. Manufacturing cycle is short due to uninterrupted flow of materials.
• 10. Small amount of work-in-process inventory.
• 11. Unskilled workers can learn and manage the production.
Limitations
• 1. A breakdown of one machine in a product line may cause
stoppages of machines in the downstream of the line.
• 2. A change in product design may require major alterations in the
layout.
• 3. The line output is decided by the bottleneck machine.
• 4. Comparatively high investment in equipments is required.
• 5. Lack of flexibility. A change in product may require the facility
modification.
Fixed Position Layout
• This is also called the project type of layout
• In this type of layout, the material, or major components remain in a
fixed location and tools, machinery, men and other materials are
brought to this location
• This type of layout is suitable when one or a few pieces of identical
heavy products are to be manufactured and when the assembly
consists of large number of heavy parts, the cost of transportation of
these parts is very high
Advantages
• The major advantages of this type of layout are:
• 1. Helps in job enlargement and upgrades the skills of the operators
• 2. The workers identify themselves with a product in which they take
interest and pride in doing the job
• 3. Greater flexibility with this type of layout
• 4. Layout capital investment is lower
Group Layout (or Cellular Layout)
• A grouping of equipment for performing a sequence of operations on
family of similar components or products has become all the
important
• This technique is very useful for companies that produce variety of
parts in small batches to enable them to take advantage and
economics of flow line layout
• determine component families or groups
• applying group technology is to arrange the plants equipment used to
process a particular family of components
• U-Shaped, I-Shaped, L-Shaped, Comb and Spine
Advantages of Group Technology Layout
• 1. Component standardization and rationalization.
• 2. Reliability of estimates.
• 3. Effective machine operation and productivity.
• 4. Customer service.
It can decrease the;
• 1. Paper work and overall production time.
• 2. Work-in-progress and work movement.
• 3. Overall cost.
Facility location
• Right location for the manufacturing facility, it will have sufficient
access to the customers, workers, transportation, etc.
• Key factors
• Proximity to sources of supply
• Proximity to customers
• Community facto
• Labor factors
TIME STUDY
Stopwatch Time Study

• involves the use of a stopwatch to measure the time taken by a

worker to complete a task
Predetermined Motion Time System (PMTS):
• The PMTS system involves breaking down a task into its individual
basic motions and assigning a predetermined time value to each
motion

• PMTS can help organizations to identify inefficiencies, optimize work

processes, and improve productivity
Work Sampling:

• This is the statistical technique which is used to determine the

time frame that workers spend on various tasks or activities
. Production Study
• is used to measure the time taken to produce a product or
complete a project. It involves analyzing the entire production
process, including all the activities and tasks involved, to
identify areas of inefficiency and waste
Benefits of Time Study Methods:

• Increase Efficiency: identifies inefficient processes and areas of

waste
• Better Resource Allocation: helps in determining the required
resources and staff for a given task
1.Man-Machine Chart
2.SWCT (Standard Work Combination Table)
3.Rotation of Resources
4.Line Balancing, etc.
 Benefits of Time Study Methods:
• Improved Planning and Scheduling: possible to create accurate project
plans and schedules
• Cost Control: By identifying areas of waste and inefficiency

• Challenges of Time Study Methods

• Subjectivity in task or Variability: The variability of tasks and processes
can affect the accuracy of time study results
• Human Error: requires a high level of accuracy in data collection,
Resistance to Change: it is intrusive or that their performance is being
monitored
Process Changes
Ethical Considerations
 Motion Study
• It is defined as a systematic and critical study of existing method of doing a
task with a view to evolve the most efficient and economic method of doing it
• It is a method for setting up employee productivity standards in which:
• A complex job is broken down into small or simple steps
• The sequence of movements taken by the employee in performing those
steps is carefully observed to detect and eliminate wasteful motion
• Precise time taken for each correct movement is measured
Objectives of motion study
• improve the procedure of doing a work
• To improve the workplace layout (ultimately plant layout)
• To minimize the human motion for minimum fatigue of operators
• To maximize the utility of resources (men, m/c, materials)
• To improve the overall working environment
Reactive (Run-to-Failure)

• is a maintenance system that responds when a failure of machinery

or systems occurs, reaction maintenance occurs when a breakdown
happens
• Costs of Reactive Maintenance
• can range from minor repairs to total replacement of machinery
• t becomes difficult to predict the cost of reactive maintenance
• the cost is offset by a warranty or service contract
Benefits of Reactive Maintenance
• Less maintenance staff, fewer employees, fewer wages paid out
regularly, etc.
• Fewer costs to implementation – no regular maintenance means no
labor or part costs until failure occurs.
• Fewer management hours are needed for maintenance planning.
Predictive Maintenance
Data supplied by the equipment indicates when maintenance is
needed. Data also is a means to map when the failure of the machine
may occur
A sensor in an engine monitors misfires and alerts maintenance that
engine service is needed.
A sensor on a refrigeration truck monitors the internal temperatures of
the truck and alerts the driver when the internal temperature falls
outside acceptable parameters
Benefits
• Improving product quality.
• Reducing catastrophic failures.
• Improved equipment performance.
• Higher customer satisfaction.
• reduction in maintenance labor
Preventive maintenance
• regular and routine inspections that look for wear before symptoms
appear
• Expect to pay more for labour under preventative maintenance
• Benefits of preventive maintenance
• Prevention of major repairs.
• Keeps businesses open by preventing most emergency repairs.
• Adds to the product’s lifecycle by reducing wear.
• Keeps energy costs at their lowest possible rates.
Corrective maintenance,

• maintenance teams get to work as soon as a problem occurs. The goal

of corrective maintenance is to bring systems back to regular
operation as quickly as possible
• A problem must be present before maintenance occurs
• there is not a regular maintenance program that prevents
breakdown, maintenance occurs only when an issue is noticed. The
cost of repairs may be slightly more expensive,
Benefits of Corrective Maintenance

• Decreased monthly maintenance costs

• Decrease in time for managing maintenance
• Focuses on non-critical elements
• A more straightforward maintenance process
Condition-based maintenance

• Focuses on outcomes through measurement or observation

• Ex: pesky check engine light in your car. When the check engine light
comes on, the car’s system has indicated that something is out of the
norma
• when a machine begins to use more energy to functionl range and
maintenance needs to be scheduled
Benefits
• Less downtime.
• Decreased energy consumption.
• Greater productivity — the equipment runs in the range of peak
performance for longer.
• Fewer complete failures as equipment maintenance occur as the
performance drops.
Predetermined Maintenance

• follows a plan of action created by the manufacture of

equipment, rather than scheduled maintenance laid out by a
maintenance team
• when machinery maintenance is scheduled at time intervals based
on the manufacture’s recommendations
• oil changes will be every fourth month
• Transmission service will occur at X number of hours of run time
• After one year of use, Parts X, Y, and Z are checked for wear
• Engine replacement occurs after X number of years
Benefits of Predetermined Maintenance
• Much easier to schedule and manage, including labor.
• The manufacturer outlines the maintenance plan.
• You can schedule technicians rather than hire maintenance
personnel.
Lean Manufacturing/production
• originally created in Toyota after the Second World War in the
reconstruction period
• It is based on the idea of eliminating any waste in the industry, i.e.,
any activity or task that does not add value and requires resources
• It is considered in any level of the industry, e.g., design,
manufacturing, distribution, and customer service
7 wastes of lean manufacturing
• Transportation – in production, it may mean moving parts and
materials from one place to another
• Inventory – undelivered products or parts. Overstocking with
equipment that may be in need somewhere in the future
• Motion – unnecessary movement of employees or machinery
• Waiting – waiting for goods to be delivered
• Overproduction – too many items produced “just in case”
• Over-processing – Spending a lot of time on a given task. Adding a
feature that doesn’t bring value
• Defects – broken parts or defective parts that need to be reworked
Transportation

• poor product flow

• poor document flow
• poor raw material flow
• poor plant or office layout
• widely spaced equipment and workstations
• poor understanding of the process flow.
Inventory

•more inventory than needed for a job.

•large orders of raw material.

Motion

•any movement of people or machine that does not add value.

•poor plant or office layout
•double handling
•inconsistent work methods
•poor workplace organization
Waiting

•idle time resulting from waiting for materials and information

•email queues from customers
•delayed shipments
•lot processing delays
•capacity bottlenecks
•unbalanced workload
•long setup times equipment
•system downtime
Overproduction

•making too much, too early and faster than required by the next process
•unclear goals
•excessive lead times
•outdated forecasts.
•large batch sizes
•producing greater than customer demand.
Over-processing

•unnecessary procedures
•undefined customer requirements
•lack of effective communication
•product changes without process changes
•redundant approvals
•making extra copies
•excessive reporting
 Defects
•errors •weak process control
•mistakes •inadequate training
•scrap •deficient planned
•rework maintenance
•replacements •customer needs that were
•re-inspection not understood.
•re-testing
•incorrect data entries
•poor quality
Importance of lean operations
• Reduce operating costs
• Yield greater profits
• Reduce lead time
• Improve product quality
• Eliminate defects
• Optimize physical space
• Cut down on excess inventory
• Improve an organization’s value proposition
• Introduce and facilitate more sustainable solutions
• Ensure long term industry viability
 Area of Operations Before Lean After Lean
•Employees are not utilized to their full •Each employee serves an essential
potential function
•OR employees are stretched too thin •Employees are trained adequately
Jobs •Employees are duplicating tasks, leading •Optimally placed employees minimize
to unproductive downtime downtime
•Revenue cannot compete with salary •Lead times decrease while revenue
expense increases

•Too much stock takes up valuable

•Optimal stock minimizes storage needs
storage space
•Adequate supply meets customer
•Supply outweighs demand
demand
Inventory •Excessive storage costs strain resources
•Storage costs stabilize
•Overstocked storage space causes safety
•Streamlined inventory creates a safer,
hazards
more organized work environment
•Overstock risks becoming discontinued

•Streamlined processes reduce

•Inefficient processes cause delays
production time
•Non-standardized processes create
•Standardization minimizes
confusion
miscommunication
Production time •Longer production schedule leads to
•“Just-in-time” approach: goods are
higher facility & personnel costs
produced as they are needed
•Customers are frustrated with long lead
•Higher production rate increases
times
5s
• 5S or good housekeeping involves the principle of waste
elimination through workplace organization. 5S was
derived from the
• Japanese words
• seiri, - sort
• seiton, - set in order
• seiso, - clean
• seiketsu, - standardize and
• shitsuke. - sustain
• 1. Sort – sort through all your stuff. Throw away any rubbish and
archive anything you might need. Then, determine what you need on a
daily or weekly basis. All other items must be removed. This is not a
place where sentiment can play a role. It’s a manufacturing
environment.
• 2. Set in Order – Take the items that you use in the area daily or
weekly and locate the best homes. Label, mark locations, color code –
Make it clear for anyone who enters the area where they should be.
• 3. Shine and Clean – After you have set a place for each item, wipe it
down and make sure it is in good working order. Broken items should
be repaired. You should allow more time to clean up if your work area
is very dirty.
• 4. Standardization – The new layout and standard of
cleanliness are our new standards for each area. Display
photos of the area and talk about 5S activities in your toolbox
talks, and daily meetings, and share ideas throughout the
factory. This will help you create 5S standards for the factory
and ensure consistency.
• 5. Sustain – If the first four S’s are done well, it becomes
easier to maintain cleanliness and origination. Each person in
an area will know where things go and where they can be
returned at the end of a shift or at the job’s end. For example,
simple audits can be used to track our progress in maintaining
• What are the objectives of facility layout
• What are the different types of layout explain briefly
• Explain product layout and process layout
• Explain factors influencing layout
• What do you mean by Time & Motion study
• Explain different work measurement techniques
• Explain different types of maintenance
• What do you mean by Lean Operations explain its importance
• What is waste management explain 7 types of waste
• What the 5s of Housekeeping