Facility Layout

Learning Objectives
• Facility Layout and Basic Formats

• Process Layout

• Layout Planning

• Assembly Line balancing

• Service Layout
 Facility Layout
• Facility layout can be defined as the process by which the
placement of departments, workgroups within departments,
workstations, machines, and stock-holding points within a facility
are determined
• This process requires the following inputs:
– Specification of objectives of the system in terms of output and
flexibility
– Estimation of product or service demand on the system
– Processing requirements in terms of number of operations and
amount of flow between departments and work centers
– Space requirements for the elements in the layout
– Space availability within the facility itself
 Basic Production Layout Formats

• Process Layout (also called job-shop or functional

layout)

• Product Layout (also called flow-shop layout)

• Group Technology (Cellular) Layout

• Fixed-Position Layout
 Process Layout: Interdepartmental Flow
• Given
– The flow (number of moves) to and from all
departments
– The cost of moving from one department to
another
– The existing or planned physical layout of the
plant
• Determine
– The “best” locations for each department, where
best means maximizing flow, which minimizing
costs
 Interdepartmental Flow: Example
• Suppose that we want to arrange the eight departments of a
toy factory to minimize the interdepartmental material
handling cost. Assume that all departments have the same
amount of space (say 40 feet by 40 feet) and that the building
is 80 feet wide and 160 feet long.
Building Dimensions and Departments

1 3 5 7
Loading 80’
Dock
2 4 6 8

160’
 Interdepartmental Flow: Example

• All the material is transported in a standard-size crate by forklift truck, one

crate to a truck (which constitute one “load”). Suppose that transportation
costs are Re.1 to move a load between adjacent departments and Re.1
extra for each department in between.
Flow between departments (No of moves)
1 2 3 4 5 6 7 8
Department Activity
Shipping & receiving
1 175 50 0 30 200 20 25 1
Plastic molding & stamping
2 0 100 75 90 80 90 2
Metal forming
3 17 88 125 99 180 3
4 20 5 0 25 4 Sewing department

Small toy assembly

5 0 180 187 5
6 374 103 6 Large toy assembly

Painting
7 7 7
Mechanism assembly
8 8
 Interdepartmental Flow: Example

Cost Matrix – First Solution

1 2 3 4 5 6 7 8
1 175 50 0 60 400 60 75
2 0 100 150 180 240 270
3 17 88 125 198 360
4 20 5 0 50
5 0 180 187
6 374 103
7 7
8

Total Cost = Rs. 3,474

 Interdepartmental Flow: Example

• Revised Interdepartmental Flow

1 3 5 7

2 6 4 8
 Interdepartmental Flow: Example
Cost Matrix – Second Solution

1 2 3 4 5 6 7 8 Net cost change

1 175 50 0 60 200 60 75 - Rs 200
2 0 200 150 90 240 270 + 10
3 17 88 125 198 360
4 20 5 0 25 - 25
5 0 180 187
6 748 206 + Rs 374 + Rs 103
7 7
8
+ Rs 262
Total cost : Rs. 3,736
 Process Layout: CRAFT Approach
(Computerized Relative Allocation of Facilities Technique)

• CRAFT is a computerized layout program.

• Initial inputs required are ;
- Load matrix & distance matrix.
• It compares two departments at a time and
exchange them if it reduces the total cost of the
layout."

• It does not guarantee an optimal solution

• CRAFT assumes the existence of variable path

material handling equipment such as forklift trucks
 Process Layout: Systematic Layout Planning

• Numerical flow of items between departments

– Can be impractical to obtain
– Does not account for the qualitative factors that may
be crucial to the placement decision
• Systematic Layout Planning
– Accounts for the importance of having each
department located next to every other department
– Is also guided by trial and error
• Switching departments then checking the results of the
“closeness” score
 Systematic Layout Planning: Example

• Consider a five-department problem involving laying out a

floor of a department store.
Table A Table B
Value Closeness Line Numerical Code Reason
code weights
1 Type of customer
A Absolutely necessary 16
2 Ease of supervision
E Especially important 8
3 Common personnel
I Important 4
4 Contact necessary
O Ordinary closeness OK 2
5 Share same space
U Unimportant 0
6 Psychology
X Undesirable -80
 Systematic Layout Planning: Example
Table C: Relationship Chart (based on Table A &
B) 1 E U 3
To I U
I 4
From 2 3 4 5 Area (sq. 5
ft.)
2
A
Initial relationship diagram
(based on tables A and C)
I U E U
1. Credit department 6 -- 4 -- 100 5 2 4
U I A 3 1
2. Toy department -- 1 1,6 400 Initial layout based on
relationship diagram (ignoring
U X space & building constraints)
3. Wine department -- 1 300
2
X 20 ft.
5 1 4 3
4. Camera department 1 100
50 ft.
5. Candy department 100 Final layout adjusted by square
Letter : Closeness rating Number : Reason for rating footage and building size
 Product Layout

• Processes/work stations arranged in sequence

of activities required to produce the
product/service (Assembly Line).
– Use for high volume, standardized products and
services
– WIP and handling of materials/customers is
minimized
– Equipment is specialized, capital intensive
– Output is dependent on the slowest work station
– The “line” must be balanced for effectiveness.
 Product Layout

• Some features
 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
 Designing Product Layouts

• Step 1: Identify tasks & immediate predecessors

• Step 2: Determine the desired output rate
• Step 3: Calculate the cycle time
• Step 4: Compute the theoretical minimum number
of workstations
• Step 5: Assign tasks to workstations (balance the
line)
• Step 6: Compute efficiency, idle time & balance
delay
 Assembly Line Balancing

1. Precedence diagram: circles=tasks, arrows show the

required sequence.
2. Determine cycle time: C = . Production time per day .
Required output per day (in units)

3. Determine required workstations (theoretical minimum)

Nt = . Sum of task times (T) .
Cycle time (C)

4. Set rules for assigning tasks (number of following tasks,

longest task time)
 Assembly Line Balancing

5. Assign tasks to first workstation, using rules and staying

within cycle time. Repeat for following workstations until
all tasks are assigned.

6. Evaluate line efficiency:

Efficiency = . Sum of task times (T) .

Actual no of workstations (Na) X Workstation cycle time (C)

7. Rebalance if efficiency is not satisfactory.

 Assembly Line Balancing: Example
• Vicki’s Pizzeria is producing Pizzas. 60 units are required to be produced
every hour. The assembly steps and task times are shown below. Find
the balance that minimizes the number of workstations, subject to cycle
time and precedence constraints.
Example : Vicki's Pizzeria and the Precedence Diagram
Immediate Task Time
Work Element Task Description Predecessor (seconds
A Roll dough None 50
B Place on cardboard backing A 5
C Sprinkle cheese B 25
D Spread Sauce C 15
E Add pepperoni D 12
F Add sausage D 10
G Add mushrooms D 15
H Shrinkwrap pizza E,F,G 18
I Pack in box H 15
Total task time 165
Assembly Line Balancing: Example
 Assembly Line Balancing: Example

• Step 2: Determine output rate

– Vicki needs to produce 60 pizzas per hour
• Step 3: Determine cycle time
– The amount of time each workstation is allowed to
complete its tasks

Cycle time = Prod time / Output

= {60 min/hrX60 sec/min}/60 min/hr
= 60 sec/unit.
 Assembly Line Balancing: Example

• Step 4: Compute the theoretical minimum number of

stations
– Nt = number of stations needed to achieve 100% efficiency
(every second is used)

Nt = Sum of task times/Cycle time = 165/60 = 2.75 or 3 stations

– Always round up (no partial workstations)

– Serves as a lower bound for our analysis
 Assembly Line Balancing: Example
• Step 5: Assign tasks to workstations
– Start at the first station & choose the longest eligible task following
precedence relationships
– Continue adding the longest eligible task that fits without going over the
desired cycle time
– When no additional tasks can be added within the desired cycle time, begin
assigning tasks to the next workstation until finished
Workstation Eligible task Task Selected Task time Idle time
A A 50 10
1
B B 5 5
C C 25 35
2 D D 15 20
E, F, G G 15 5
E, F E 12 48
F F 10 38
3
H H 18 20
I I 15 5
 Assembly Line Balancing: Example

• Step 6: Compute efficiency and balance delay

– Efficiency (%) is the ratio of total productive time divided
by total time

Efficiency (%) = Sum of task times/ Na X C = 165 / 3 x 60 = 91.7 %

– Balance delay (%) is the amount by which the line falls

short of 100%
Balance delay = 100 – 91.7 % = 8.3 %.
 Group Technology (Cellular) Layout
• GT (or cellular) layout allocates dissimilar machines into cells to
work on products that have similar shapes and processing
requirements.
• Widely used in metal fabricating, computer chip manufacture,
and assembly work.
• GT has the advantage of bringing the efficiencies of a product
layout to a process layout environment. These advantages
include;
1. Better human relations
2. Improved operator expertise
3. Less in-process inventory and material handling.
4. Faster production setup
 Group Technology (Cellular) Layout: Steps
1. Grouping parts into families that follow a common sequence
of steps.
 Group Technology (Cellular) Layout: Steps
2. Identifying dominant flow patterns of parts families as a basis
for location or relocation of processes.
 Group Technology (Cellular) Layout: Steps
3. Physically grouping machines and processes into cells.
 Fixed Position Layout

• The position of a product or customer is fixed; and

materials, equipment, workers, and other resources
are transported to and from the product or
customer.
• Usually used because product movement is difficult
(ship building) or for convenience (on-site repair).
• This is often managed through Project Management
 Retail Service Layout

• The objective is to maximize net profit per square foot of

store space (as found in banks, store and restaurants).
• The term servicescape is coined in this regard to refer to the
physical surroundings in which the service takes place and
how these surroundings affect customers and employees.
• It has three elements which must be considered:
- Ambient Conditions – Refers to background characteristics
such as noise level, music, lighting, temperature, and scent
that can affect employee performance and morale as well as
customers perceptions of the service.
 Retail Service Layout

- Spatial layout and functionality – Refers to planning the

circulation path of the customers and grouping the
merchandise.

- Signs, Symbols and Artifacts – Refer to the parts of the service

that have social significance.
 Office Layout

• Office Layout Considerations:

- Human interaction and communication are the primary factors
in designing office layouts.
- The present trend is towards more Open offices, with
personal work spaces separated by low divider walls.
- Layouts need to account for physical environment and
psychological needs of the organization.
- One key layout trade-off is between proximity and privacy.
- Flexible layouts incorporating “office landscaping” help to
solve the privacy issue in open office environments.