FACILITY LAYOUT

FACILITY LAYOUT…AGENDA
• Introduction to Facility Layout
• Fixed-Position Layout
• Product Layout (Assembly Line
Balancing)
• Process Layout
• CRAFT
• Group Technology (Cellular) Layout
• Retail Service Layout
• Office Layout
 FACILITY LAYOUT
• WHAT ?

• OBJECTIVE?
 Introduction
• Plant layout planning includes decisions
regarding the physical allocation of the
economic activity centers in a facility.
– An economic activity center is any entity occupying
space.
– The objective of plant layout planning is a more
effective work flow at the facility, allowing
workers and equipment being more productive.

• Facility layout techniques apply to the case where

several physical means have to be located in a certain
area, either industrial processes or services.
 Introduction
• To make a decision about layout planning, 4 different
questions must have an answer:
– Which centers do we have to consider?
– How much space and capacity is required for each center?
• If there is not enough space, productivity may be reduced.
• Too much space is expensive and may also reduce
productivity.
– How must the space be configured at each center?
• Space quantity, shape and the elements of the work center
are related to each other.
– Where should each center be located at within the facility?
• The allocation of the different centers may affect
productivity.
 GPI Rabale 10 acre Plant
NTM
Loading

Tobacco ASRS
Loading (Tob/NTM)
FG Loading Gate 1
Platform

U
T
I
L ADMIN
I PMD CTS SECONDARY BSR BLDG
T
I
E
S

Water, PH
Waste Water Cut Tob
Treatment Export

Gate 2
 Introduction
• The reasons for a re-layout are based on 3
types of changes:
– Changes in production volumes.
– Changes in processes and technology.
– Changes in the product.

• The frequency of the re-layout will depend

on the requirements of the process.
 Introduction
• Symptoms that allow us to detect the need for a re-layout:

– Congestion and bad utilization of space.

– Excessive stock in process at the facility.

– Long distances in the work flow process.

– Simultaneous bottle necks and workstations with idle time.

– Qualified workers carrying out too many simple operations.

– Labor anxiety and discomfort. Accidents at the facility.

– Difficulty in controlling operations and personnel.

 Facility Layout Definition
• A facility layout is an arrangement of everything needed
for production of goods or delivery of services. A facility
is an entity that facilitates the performance of any job. It
may be a machine tool, a work centre, a manufacturing
cell, a machine shop, a department, a warehouse, etc.

The layout design generally

depends on the products variety
Product
and the production volumes. Quantity Layouts
(Vol)
Four types of Layout are referred Fixed
Position
Mixed Layouts Process Layouts
to, namely fixed position layout, Layouts

process layout, product layout and Number of Different Products

(Variety)
cellular layout
 Types of Plant Layout
• The production process normally determines the type of
plant layout to be applied to the facility:
– Fixed position plant layout
• Product stays and resources move to it.
– Product oriented plant layout
• Machinery and Materials are placed following the
product path.
– Process oriented plant layout (Functional Layout).
• Machinery is placed according to what they do and
materials go to them.
– Cell Layout
• Hybrid Layout that tries to take advantage of different
layout types.
 FACILITY LAYOUT…AGENDA
 Introduction to Facility Layout
• Fixed-Position Layout
• Product Layout (Assembly Line Balancing)
• Process Layout
• CRAFT
• Group Technology (Cellular) Layout
• Retail Service Layout
• Office Layout
 Fixed-Position Layout
• Used when product is large

• Product is difficult or impossible to move, i.e.

very large or fixed

• All resources must be brought to the site

• Scheduling of crews and resources is a challenge

PRODUCT ORIENTED LAYOUT

Men, Machinery and Materials

are placed following the product path.

ASSEMBLY LINE BALANCING
(in Product Oriented Layout)
 Assembly Lines
• Principle of Interchangeability
– individual components that make up a finished product
should be interchangeable between product units

• Division of Labor – complex activities divided into

elemental tasks
– work simplification
– standardization
– Specialization

• Mass Production
Assembly Line Balancing

The assembly line is a production line

where material moves continuously
through a series of workstations where
assembly work is performed.
 ILLUSTRATION
Assign work elements (tasks) to workstations
to minimize unit assembly costs (e.g. labor cost).

flow of the line

station 1 station 2 station 3

Tasks 1 2 3 4 5 6
precedence precedence
requirements requirements
 Precedence Relationships
• Precedence constraints
– some tasks may have to be completed in a
particular sequence task i task j

• Zoning restrictions
– some tasks cannot be performed at the same
workstation (divorces)
– some tasks may be required to be performed at
the same workstation (marriages)
flow of the line
station 1 station 2 station 3

Tasks 1 2 3 4 5 6
precedence precedence
requirements requirements
 Cycle Time(C)
The time between the completion of two
successive products, assumed constant for all
products for a given production line speed.

The minimum value of the cycle time must be

greater than or equal to the longest station time
(bottleneck)
station 1 station 2 station 3

S 1 2 3 4 5 6 F
 Problem Formulation
Cycle time (C) = 1/Production rate

Assume production rate of P with m parallel lines.

Then each line must produce a unit every m / P time units.

Set Cycle time = C <= m / P ; the time between completion of two successive units

Example:
Planned order release requires a production rate (P) of 80
units per hours. Four (4) assembly lines are available.

Therefore cycle time = C  4/80 = .05 hr = 3 minutes

 Station Time (S)
Let ti = time to perform task i where i = 1,2,…,n

Sj = station j time where

S j   ti Sj <= C
iI j

and Ij = {i | task i is assigned to station j}

station 1 station 2 Station 3

1 2 3 4 5 6
 Performance Measures
let k = number of workstations; 1 <= k <= n

dj = C – Sj = delay (idle) time at station j

k k n
total idle time: IT   d   C  S   k C  t
j 1
j
j 1
j
i 1
i

S j 1
j
line efficiency: LE  x 100%
( resource util) kC
station 1 station 2 Station 3

1 2 3 4 5 6
 Example # 1
S1 S2 S3 S4 S5

1 2 3 4 5
5 min 7 min 10 min 6 min 8 min

k = ?, C(cycle time) = ? min. P(prod rate) = ? per hr.

 Example # 1
S1 S2 S3 S4 S5

1 2 3 4 5
5 min 7 min 10 min 6 min 8 min

k = ?, C(cycle time) = ? min. P(prod rate) = ? per hr.

k = 5, C(cycle time) = 10 min. P(prod rate) = 6 per hr.
n
Productive time t
i 1
i  36
 Example # 1
S1 S2 S3 S4 S5

1 2 3 4 5
5 min 7 min 10 min 6 min 8 min

k = ?, C(cycle time) = ? min. P(prod rate) = ? per hr.

n
k = 5, C(cycle time) = 10 min. P(prod rate) = 6 per hr.
t i  36
i 1 Productive time
Performance Measures k k n
IT   d j    C  S j   k C   ti
j 1 j 1 i 1
Idle Time = ?
k

Line Effy = ? S
j 1
j

LE  x 100%
kC
 Example # 1
S1 S2 S3 S4 S5

1 2 3 4 5
5 min 7 min 10 min 6 min 8 min

k = ?, C(cycle time) = ? min. P(prod rate) = ? per hr.

n
k = 5, C(cycle time) = 10 min. P(prod rate) = 6 per hr. t i  36
i 1 Productive time
Performance Measures

Idle Time = S1 S2 S3 S4 S5 Line

5 3 0 4 2 14
Line Effy = Prod Time/ k x C = 36/5 x10 = 36/50 = 72%
 Example # 1
S1 S2 S3 S4 S5

1 2 3 4 5
5 min 7 min 10 min 6 min 8 min

k = ?, C(cycle time) = ? min. P(prod rate) = ? per hr.

n
k = 5, C(cycle time) = 10 min. P(prod rate) = 6 per hr.
t i  36
i 1 Productive time
Performance Measures

Idle Time = 5(10) – 36 = 14 min

Line Effy = 36/50 = 72%

 Example # 1
S1 S2 S3 S4 S5

1 2 3 4 5
5 min 7 min 10 min 6 min 8 min

k = ?, C(cycle time) = ? min. P(prod rate) = ? per hr.

n
k = 5, C(cycle time) = 10 min. P(prod rate) = 6 per hr.
t i  36
i 1 Productive time
Performance Measures
n

Idle Time = 5(10) – 36 = 14 min = k(C) - t

i 1
i  36

Prod Time Prod Time

Line Effy = 36/50 = 72% = =
k*C (Prod time+ Idle time)
 Example # 1
S1 S2 S3 S4

1 2 3 4 5
5 min 7 min 10 min 6 min 8 min

k=?

C=?

Prod time = ?

Idle time = ?

Line Effy = ?
 Example # 1
S1 S2 S3 S4

1 2 3 4 5
5 min 7 min 10 min 6 min 8 min

n
k = 4 C = 12 min. P = 5 per hr. t
i 1
i  36

Performance Measures

IT = 4(12) – 36 = 12 min.

LE = 36/48 = 75%
 Example # 1
S1 S2 S3

1 2 3 4 5
5 min 7 min 10 min 6 min 8 min

n
k = ? C = ? min. P = ? per hr. å t =36 i
i=1
Performance Measures

IT = ? min
.
LE = ? %
 Example # 1
S1 S2 S3

1 2 3 4 5
5 min 7 min 10 min 6 min 8 min

n
k = 3 C = 14 min. P = 4.286 per hr. t
i 1
i  36

Performance Measures

IT = 3(14) – 36 = 6 min
.
LE = 36/42 = 85.7 %
 Example # 1
S1 S2

1 2 3 4 5
5 min 7 min 10 min 6 min 8 min

n
k = 2 C = 22 min. P = 2.72 per hr. t
i 1
i  36

Performance Measures

IT = 2(22) – 36 = 8 min

LE = 36/44 = 81.8 %
 Example # 1
S1

1 2 3 4 5
5 min 7 min 10 min 6 min 8 min

n
k = 1 C = 36 min. P = 1.67 per hr. t i 1
i  36
Performance Measures

IT = 1(36) – 36 = 0 min
Perfect Balanced Line
LE = 36/36 = 100 %
 SUMMARY
k C P IT LE Resource Util.
5 10 min 6/hr 15 min 72.0 % Low
4 12 min 5/hr 12 min 75.0 %
3 14 min 4.28/hr 6 min 85.7 %
4 22 min 2.73/hr 8 min 81.8 %
5 36 min 1.67/hr 0 100 % High

Lesser the number of work stations, higher the effy, but cycle
time high & production rate low.
Higher the number of work stations, higher production rate,
but lower effy & higher idle time i.e. lower utilisation of
resources.
Therefore trade off bet. higher production rate & better
utilisation of resources i.e. lower idle time.
Actual Cycle Time = 1/ Actual Production Rate

Desired Cycle Time = 1/ Desired Production Rate

Production Rate, Cycle time & number of workstations are

interrealated. Also, number of workstations has a bearing on
avg resource utilisation (effy).
Therefore it is possible to design an appropriate number of
workstations:
S j   ti
iI j
Productive Time
Min no of workstations reqd = ------------- = ----------------
Cycle time C Cycle Time
S j   ti Productive time
iI j
Avg resource utilisation = ----------- = -----------------
(Effy) kxC k x Cycle time
 Recap
k k n
total idle time: IT   d   C  S   k C  t
j 1
j
j 1
j
i 1
i

S j
line efficiency: LE  j 1 x 100% = Total Prod time(TPT) / kC
( resource util) kC = TPT/ (TPT + Idle Time)

Cycle Time = 1/ Production Rate

Actual /Desired Cycle Time = 1/ Actual/Desired Production Rate

Min no of workstations reqd = Productive Time/ C

 Problem # 2
A factory working in 2 shifts of 8hrs produces 24,000 bulbs using a
set of workstations

What is the cycle time of the plant operation, in seconds?

Production Rate = 24,000/ 2x8x60x60 = 24,000/57,600 bulbs per second

Cycle time= 1/Production rate= 57,600/24,000 = 2.4 secs

i.e. I bulb every 2.4 secs

8 tasks are reqd to mfr the bulb , with sum of all task times = 12 secs

How many workstations are reqd to maintain the level of production,

assuming you can combine tasks into feasible workstations.

Number of workstations required = Prod. time/Cycle time = 12/2.4 = 5

 Problem # 3
Computer manufacturer..1 shift@ 8hrs
80 8 tasks for computer assy
30 1) If C=80 secs, daily production?
B 2) If desired production/day is 320
F
70 cabinets, what is max permissible C?
A 40 50 3) What is max & min workstations
50
C H reqd to maintain 320 cabs/day?
G 4) Design an assy set-up with 5 & 6
20 workstations. Inferences??
D
C
Total Prod time=380 secs
40
E

1) Prod rate =1/C = 1/80 units per sec

Total available time/day = 8x60x60 = 28,800 secs
Therefore daily production = 28,800/80 = 360 units
2) Max cycle time = 28,800/320 = 90 secs
Inference….Although C of 80 gives higher prod rate, the workstations can be designed for
a C of upto 90 secs w/o falling short of desired daily production. Once C>90 secs, the mfr
may not be able to produce 320 units/day.
3) What is max & min workstations reqd to maintain 320 cabs/day?

Max workstations =8 which will result in C of 380 sec, which is not

permissible as prod rate will be very very low. Therefore the minimum
number of workstations is dictated by max cycle time permissible, which
is 90 to have 320 units per day.

S j   ti 380
iI j
Minimum number of workstations, k = -------------- = -------- = 4.22 ~ 5
Cycle Time C 90

As long as we have 5 workstations, C will not exceed 90 seconds and we

will be able to meet the reqd production rate.
4) Design an assy set-up with 5 & 6 workstations. Inferences??

While designing the set-up, we assign tasks to the workstations such that
i) The workstation cycle times should not exceed the max permissible C of 90 secs
ii) The precedence relationships among the tasks must be honoured.

a) Design of assy set-up with Five workstations:

I II III IV V
Tasks assigned A,D B C,G E,F H
Time 90 80 90 70 50
Cycle Time 90 90 90 90 90
Idle Time 0 10 0 20 40
Utilisation 100% 89% 100% 78% 56%

Effy/Average Utilisation = 380/ 5x90 = 84.4%

b) Design of assy set-up with Six workstations:

I II III IV V VI
Tasks assigned A B C,D E,F G H
Time 70 80 60 70 50 50
Cycle Time 80 80 80 80 80 80
Idle Time 10 0 20 10 30 30
Utilisation 87.5% 100% 75% 87.5% 62.5% 62.5%

Effy/Average Utilisation = 380/ 6x90 = 79.2%

 Trade-Off
5 Stations 6 Stations

Util/Effy 84.4% 79.2%

Production rate 320 360

Trade off decision between Effy and Production rate

 FACILITY LAYOUT…AGENDA
 Introduction to Facility Layout
 Fixed-Position Layout
 Product Layout (Assembly Line Balancing)
• Process Layout
• CRAFT
• Group Technology (Cellular) Layout
• Retail Service Layout
• Office Layout
 Process oriented plant layout (Functional Layout)

• Useful when production process is organized in batches.

• Personnel and equipment to perform the same function are
allocated in the same area.
• The different items have to move from one area to another one,
according to the sequence of operations previously established.
• The variety of products to produce will lead to a diversity of
flows through the facility.
• The variations in the production volumes from one period to
the next one (short periods of time) may lead to modifications
in the manufactured quantities as well as the types of products
to be produced.
 PRIMARY FLOW CHART Dry Stem Cut
Feeder Stem
Start Tob.Ware House (10 days stock)
Lamina Slicer
Not OK Lifting
OK Check
Casing Casing Lamina
Application Cylinder Conditioning cylinder
Not OK OK
Lamin Blending Check
Lamina Cutter Tobacco
Silos CPI
Drier
AddBack Not OK
Not OK Check OV
Check OV CT Silo

OK Top Flavouring
Cylinder
CT Stores Stop
 Lifting
Start Tob.Ware
House Stem Cond.
Dry Stem
Feeder Cylinder

Cardwell Stem Bulking

Stem Cutter Flattener
Tunnel Silo
Not OK
Check OK Hauni Cut Stem
CPI Check OV
Tunnel Drier
OK
Not OK

Cut Stem Stem

To Cut
Silo Classifier
Tob.Drier
 Process vs. Product Layouts
Characteristic differences between a process and product layout.

Product
Quantity Layouts
(Vol)
Fixed
Position
Mixed Layouts Process
Layouts
Layouts
No. of Different Products(Variety)
 FACILITY LAYOUT…AGENDA
 Introduction to Facility Layout
 Fixed-Position Layout
 Product Layout (Assembly Line Balancing)
 Process Layout
• CRAFT (Computerised Relative Allocation of Facilities Technique)
• Group Technology (Cellular) Layout
• Retail Service Layout
• Office Layout
 COMPUTERIZED LAYOUT TECHNIQUE

Outline

• Computerized Layout Technique

– A Layout Improvement Procedure, CRAFT

• Distance Between Two Departments

• Total Distance Traveled

• Savings and a Sample Computation

• Improvement Procedure
 Computerized Layout Technique
• Suppose that we are given some space for some
departments. How shall we arrange the departments
within the given space?

• Assume that the given space is rectangular shaped and

every department is either rectangular shaped or
composed of rectangular pieces.

• CRAFT…..
– a layout improvement procedure that attempts to find
a better layout by pair-wise interchanges when a
layout is given
 CRAFT - Computerized Relative Allocation of Facilities
Technique

10 20 30 40 50 60 70 80 90 100
Following are A D
some
examples of
questions
addressed by C
CRAFT:
B
• Is this a good
layout?
• If not, can it be
improved?

10 20 30 40 50 60 70 80 90 100
 CRAFT: Distance Between Two Departments
• Consider the problem of finding the distance between two
adjacent departments, separated by a line only.
• People need to walk to move from one department to
another, even when the departments are adjacent.
• An estimate of average walking required is obtained from
the distance between centroids of two departments.
• Centroid of a rectangle is the point where two diagonals
meet. So, if a rectangle has two opposite corners  x1 , y1 
and  x2 , y2  then the centroid is

10 20 30 40 50 60 70 8090 100
A D

 x1  x2 y1  y2 
 , 
 2 2  C

10 20 30 40 50 60 70 80 90 100
 CRAFT: Distance Between Two Departments

• The distance between two departments is taken from the

distance between their centroids.

• People walk along some rectilinear paths. The rectilinear

distance is a good approximation.

• So, Distance (A,B) = rectilinear distance between

centroids of departments A and B

10 20 30 40 50 60 70 8090 100
A D

10 20 30 40 50 60 70 80 90 100
 CRAFT: Distance Between Two Departments
• Let
– Centroid of Department A =  xA , yA 
– Centroid of Department B =  xB , yB 
• Then, the distance between departments A and B,
Dist(A,B)  x A  xB  y A  y B

• The distance formula is illustrated with an example

on the next slide. The distance between departments
A and C is the rectilinear distance between their
centroids (30,75) and (80,35). Distance (A,C) A

10 20 30 40 50 60 70 8090 100
D

 x A  xC  y A  yC  30  80  75  35  90 C

10 20 30 40 50 60 70 80 90 1
 CRAFT: Distance Between Two Departments

100
Centroid of A A D

10 20 30 40 50 60 70 80 90
= (30,75)
(80,85)

C
Centroid of C
= (80,35)
B

Distance (A,C) (30,25)

= (80-30) + (75-35)
= 90
10 20 30 40 50 60 70 80 90 100
 CRAFT: Total Distance Traveled
• If the number of trips between two departments
are very high, then such departments should be
placed near to each other in order to minimize the
total distance traveled.
• Distance travelled from department A to B =
Distance (A,B)  Number of trips from department
A to B
• Total distance traveled is obtained by computing
distance travelled between every pair of
departments, and then summing up the results.

• Given a layout, CRAFT first finds the total

distance travelled.
 CRAFT: Total To
F ro m A B C D
Distance Traveled A 2 7 4
B 3 5 7 (a)
(a) Material handling trips
(given) C 6 7 3
D 7 7 3
 CRAFT: Total To
A B C D
Distance Traveled F ro m

A 2 7 4
B 3 5 7 (a)
(a) Material handling trips
(given) C 6 7 3
D 7 7 3
To
F ro m A B C D
(b) Distances (given) A 50 90 60
B 50 60 110 (b)

C 90 60 50
D 60 110 50
 CRAFT: Total To
A B C D
Distance Traveled F ro m

A 2 7 4
B 3 5 7 (a)
(a) Material handling trips
(given) C 6 7 3
D 7 7 3
To
F ro m A B C D
A 50 90 60
(b) Distances (given) B 50 60 110 (b)

C 90 60 50
D 60 110 50
To
(c) Sample computation: F ro m A B C D
distance traveled (A,B) A 100 630 240
= trips (A,B)  dist (A,B)
= B 150 300 770 (c)
Total distance traveled C 540 420 150
= 100+630+240+….
= 4640 D 420 770 150
 CRAFT: Savings
• As stated before, given a layout CRAFT first finds
the total distance traveled as illustrated on the
previous 3 slides. CRAFT then attempts to
improve the layout by pair-wise interchanges.
• If some interchange results some savings in the
total distance traveled, the interchange that saves
the most (total distance traveled) is selected.
• While searching for the most savings, exact
savings are not computed. At the search stage,
savings are computed assuming when
departments are interchanged, centroids are
interchanged too. This assumption does not give
the exact savings, but approximate savings only.
• Exact centroids are computed later.
 CRAFT: Savings
• Savings are computed for all feasible pairwise interchanges. Savings are
not computed for the infeasible interchanges.

• An interchange between two departments is feasible only if the

departments have the same area or they share a common boundary.

1 0 2 0 3 0 4 0 5 0 6 0 7 0 8 09 0 1 0 0
For the layout shown: A D

– feasible pairs are C

B
– {A,B}, {A,C}, {A,D}, {B,C}, {C,D}
– and an infeasible pair is
1 0 2 0 3 0 4 0 5 0 6 0 7 0 8 0 9 0 1 0 0

– {B,D}

• For the layout shown, savings are not computed for interchanging B and
D. Savings are computed for each of the 5 other pair-wise interchanges
and the best one chosen.

• After the departments are interchanged, every exact centroid is found.

This may require more computation if one or more shape is composed of
rectangular pieces.
 CRAFT: A Sample Computation of Savings
from a Feasible Pairwise Interchange
• To illustrate the computation of savings, we shall compute
the savings from interchanging Departments C and D

• New centroids:
A (30,75) Unchanged
B (30,25) Unchanged
C (80,85) Previous centroid of Department D
D (80,35) Previous centroid of Department C

• Note: If C and D are interchanged, exact centroids are

C(80,65) and D(80,15). So, the centroids C(80,85) and
D(80,35) are not exact, but approximate.
 CRAFT: A Sample Computation of Savings from a
Feasible Pairwise Interchange
• The first job in the computation of savings is to
reconstruct the distance matrix that would result if
the interchange was made.
• The purpose of using approximate centroids will
be clearer now.
• If the exact centroids were used, we would have
to recompute distances between every pair of
departments that would include one or both of C
and D.
• However, since we assume that centroids of C
and D will be interchanged, the new distance
matrix can be obtained just by rearranging some
rows and columns of the original distance matrix.
 CRAFT: A Sample Computation of Savings from a
Feasible Pairwise Interchange

Interchange
C,D

• Dist (A,B) and (C,D) does not change.

1 0 2 0 3 0 4 0 5 0 6 0 7 0 8 09 0 1 0 0
A D

• New dist (A,C) = Previous dist (A,D) C

• New dist (A,D) = Previous dist (A,C)

B

• New dist (B,C) = Previous dist (B,D) 1 0 2 0 3 0 4 0 5 0 6 0 7 0 8 0 9 0 1 0 0

• New dist (B,D) = Previous dist (A,C)

Before Interchange Ater Interchange

To
F ro m A B C D F ro m
To
A B C D
A 50 90 60 A 50 60 90
B 50 60 110 B 50 110 60
C 90 60 50 C 60 110 50
D 60 110 50 D 90 60 50
 CRAFT: A Sample To
Computation of Savings F ro m A B C D
A 2 7 4
B 3 5 7 (a)
(a) Material handling trips
(given) C 6 7 3
D 7 7 3
 CRAFT: A Sample To
F ro m A B C D
Computation of Savings
A 2 7 4
B 3 5 7 (a)
(a) Material handling trips
(given) C 6 7 3
D 7 7 3
To
F ro m A B C D
A 50 60 90
(b) Distances (rearranged) B 50 110 60 (b)

C 60 110 50
D 90 60 50
 CRAFT: A Sample
To
Computation of Savings F ro m A B C D
A 2 7 4
(a) Material handling trips B 3 5 7 (a)
(given) C 6 7 3
D 7 7 3
To
F ro m A B C D
(b) Distances (rearranged) A 50 60 90
B 50 110 60 (b)

C 60 110 50
D 90 60 50
(c) Sample computation:
To
distance traveled (A,B) F ro m A B C D
= trips (A,B)  dist (A,B)
A 100 420 360
Total distance traveled (c)
= 100+420+360+…
B 150 550 420
= 4480 C 360 770 150
Savings D 630 420 150
= 4640-4480 = 160
 CRAFT: Some Comments
• An improvement procedure, not a construction
procedure
• At every stage some pairwise interchanges are
considered and the best one is chosen
• Interchanges are only feasible if departments have
the same area; or they share a common boundary
• Departments of unequal size that are not adjacent
are not considered for interchange
• Estimated cost reduction may not be obtained after
interchange (because the savings are based on
approximate centroids)
• Strangely shaped departments may be formed
 FACILITY LAYOUT…AGENDA
 Introduction to Facility Layout
 Fixed-Position Layout
 Product Layout (Assembly Line Balancing)
 Process Layout
 CRAFT
• Group Technology (Cellular) Layout
• Retail Service Layout
• Office Layout
 GROUP TECHNOLOGY
CELLULAR LAYOUT
• Work cells
– Definition:
• Group of equipment and workers that perform a
sequence of operations over multiple units of an item or
family of items.
– Looks for the advantages of product and process
layouts:
• Product oriented layout: Efficiency
• Process oriented layout: Flexibility
– Group Technology
• Grouping outputs with the same characteristics to
families, and assigning groups of machines and workers
for the production of each family.
 Group Technology (CELL)
Layouts
• One of the most popular hybrid layouts uses Group
Technology (GT) and a cellular layout
• GT has the advantage of bringing the efficiencies of a
product layout to a process layout environment

© Wiley 2010 71
Process Flows before the Use of GT Cells
Process Flows after the Use of GT Cells
 Advantages of Cellular Layouts
• Reduced material handling and transit time

• Reduced setup time

• Reduced work-in-process inventory

• Better use of human resources

• Better scheduling, easier to control and

automate
 Disadvantages of Cellular Layouts
• Sometimes cells may not be formed because of
inadequate part families.

• Some cells may have a high volume of production

and others very low. This results in poorly
balanced cells.
• 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.

• Sometimes, machines are duplicated in different

cells. This increases capital investment.
 Hybrid Layouts
• Combine elements of both
product & process layouts
– Maintain some of the efficiencies of
product layouts
– Maintain some of the flexibility of
process layouts
• Examples:
– Group technology & manufacturing
cells
– Grocery stores
 FACILITY LAYOUT…AGENDA
 Introduction to Facility Layout
 Fixed-Position Layout
 Product Layout (Assembly Line Balancing)
 Process Layout
 CRAFT
 Group Technology (Cellular) Layout
• Retail Service Layout
• Office Layout
 Plant Layout for a Service Business
• Most of the concepts and techniques explained so far can
be applied to any plant layout, including services.
– Examples: Line Balancing for Restaurant self-services; Process
oriented layout for Hospitals, Banks etc.
• Service Businesses have a more direct customer focus:
– Sometimes, the customer is required at the facility for
the company to be able to perform the service.
– Frequently, the layout is focused on the customer
satisfaction than on the operation itself.
– Some of the objectives include comfortability during
the performance of the service, as well as making
attractive those areas in direct contact with the
customer.
Plant Layout for a Service Business
• Plant layout for a commerce:
– Objective: Maximize the net benefit per m2 of shelves.
– If sales are directly related to the exposition of products to
the customer, the objective will consist of exposing as many
products as possible to the customers in the available space.
• This has to take into account to leave enough space for
the movement among shelves, not making the layout
uncomfortable for the customer.
– Aspects:
• Allocation of daily consumption products at the
periphery.- Allocation of impulsive purchase and high
profit margin products in prominent places.
• Eliminate aisles that allow the customers to go from one
row to other without going through them completely.
 Three Retail Layout Patterns
 Grid

 Rectangular with parallel

aisles; formal; controls
traffic flow; uses selling
space efficiently.
 Free-Form
 Free-flowing; informal; Cafetería
creates "friendly"
environment; flexible.
 Boutique
 Divides store into a series
of individual shopping
areas, each with its own
theme; unique shopping
environment.

Cafetería
Plant Layout for a Service Business
• Plant layout for an office:
– The material that flows among departments and
workstations is basically information. This can be done
through:
• Individual conversations face to face.
• Individual conversations through telephone or computer.
• Mail and other physical documents.
• Electronic mail.
• Meetings and discussion groups.
• Interphones.
– The layout solution is dictated by workers and physical
documentation movements.
 Office Layouts
Office Layout Considerations:
– Almost half of workforce works in an office
environment
– Human interaction and communication are the
primary factors in designing office layouts
– Layouts need to account for physical environment
and psychological needs of the organization
– One key layout trade-off is between proximity and
privacy
– Open concept offices promote understanding &
trust
– Flexible layouts incorporating “office landscaping”
help to solve the privacy issue in open office
environments
 AMAZON OFFICE..Seattle

Series of Globes designed to be env. friendly, using recycled energy to heat its offices.

Large number of spaces for peoples to hang out

Why Amazon Built Its Workers A Mini Rain Forest Inside Three Domes In Downtown
Seattle
The massive urban garden is now open for employees to hold meetings beside a
cascading waterfall, brainstorm in a third-story "bird's nest" or crack open their laptops
and work amid a lush array of ferns and tropical plants.

Amazon founder summoned its artificial intelligence assistant, Alexa, to officially open
the building
SEATTLE:  Microsoft employees have treehouses. Apple workers have what's been called a
spaceship. And now Amazon's staffers have a rainforest - or at least something like one -
right in the middle of downtown Seattle.

On a typically overcast Monday, in a particularly Amazonian version of a ribbon-cutting

ceremony for "the Spheres" - its giant glass-and-metal domes filled with tropical and rare
plants - CEO Jeff Bezos asked the gathered attendees to look to the ceiling. A circular blue
ring lit up, and the Amazon founder summoned its artificial intelligence assistant, Alexa, to
officially open the building. (Bezos is also the owner of The Washington Post.)

"Okay, Jeff," Alexa's familiar voice sounded, as lights switched on and misters sprayed some
of the more than 40,000 plants that stock the company's newest headquarters building.
This architectural showstopper is a new Seattle landmark and Amazon workplace tool that
could help the retail giant attract, retain and enhance the productivity and well-being of its
fast-growing workforce.
"Okay, Jeff," Alexa's familiar voice sounded, as lights switched on and misters sprayed some
of the more than 40,000 plants that stock the company's newest headquarters building. This
architectural showstopper is a new Seattle landmark and Amazon workplace tool that could
help the retail giant attract, retain and enhance the productivity and well-being of its fast-
growing workforce.

After more than six years of planning and construction, the massive urban garden is now
open for employees to hold meetings beside a cascading waterfall, brainstorm in a third-
story "bird's nest" or crack open their laptops and work amid a lush array of ferns, tropical
plants and a 50-foot ficus tree nicknamed "Rubi." For now, Amazon employees will have to
reserve a time slot to enter the building, but over time will be able to come and go from
what executives call an "alternative workspace" that's aimed at boosting collaboration and
creativity.

While much of the nation has been obsessed with where Amazon will build its second
headquarters, the focus Monday was on its hometown, where a gathering of Amazon
executives and local officials - including Washington Gov. Jay Inslee and Seattle Mayor Jenny
Durkan - appeared.
"We wanted to create a unique environment for employees to collaborate and innovate," said
John Schoettler, Amazon's vice president of global real estate and facilities, describing the
initial ideas he and Bezos had to transform the old motels and surface parking lots that
populated that area of downtown. "We also asked ourselves what was missing from the
modern office, and we discovered that that missing element was a link to nature."

The striking architecture, designed by the firm NBBJ, includes more than 620 tons of steel and
2,643 panes of glass and no enclosed offices, desks or conference rooms. But the plants take
center stage in the spheres, which cover half a city block downtown, sandwiched between
two Amazon headquarters towers. A four-story "living wall" of plants towers over the sphere's
interior. Rubi, the ficus tree originally planted at a tree farm in California in 1969, was lowered
by crane through a temporary opening and replanted.

More than 400 species of plants, many of which are typically found in high tropical or
subtropical altitudes and require cool temperatures, stock the three large domes, which come
with an earthy, forest-like scent reminiscent of a botanical garden conservatory - but without
the especially humid conditions that would be unacceptable to most workers. Asked about the
choice of a tropical forest setting and Amazon's name, the company's senior manager of
horticultural services, Ron Gagliardo, said "any connection to the Amazon rainforest is purely
coincidental."
But Gagliardo did say the space is based on data that show it's good for employees' well-
being to be around plants and sunlight and encourages Amazon's employees to "find their
inner biophiliac that really responds to nature," referring to a design concept based on the
human tendency to seek out natural surroundings. "We get them away from their normal
desk environment. You don't see desks or cubicles. You kind of convene with nature."

Workplace experts said The Spheres is an example of how the largest tech companies are
taking those concepts to new heights. Research has shown that spending time in nature
can increase performance on creative problem-solving tasks by 50 percent, as well as that
adding plants to office settings can increase productivity by 15 percent. Multiple studies
have linked greater daylight with improved worker health, productivity and ethical
behavior.

Yet a 90-foot-tall biosphere stocked with "cloud forest ecosystem" plants moves that idea
well beyond the typical application of putting more cubicles near windows or adding a few
plants to a sky-lit atrium.

"This is a whole other level," said Jonathan Webb, vice president for workplace strategy at
office furniture maker KI. While the design principle of "biophilia" may have health
benefits, "it also has to do with workplace productivity. That's the holy grail in our world."
 
As the largest tech companies face a fierce battle for talent, a green-friendly building
designed by high-profile architects appears to be fast replacing ping-pong tables and
gourmet chef-managed cafeterias as the new must-have perk for workers.

Apple opened its "spaceship" campus, Apple Park, in April, featuring the world's largest
panels of curved glass, more than 9,000 trees and a blurring of the boundaries between
nature and workspaces. Across Lake Washington from downtown Seattle is Redmond,
where Microsoft recently built treehouses by Pete Nelson, host of Animal Planet's
"Treehouse Masters," for employees to meet and work. The company also announced it
was revamping its main campus there, a project that will include new biking and walking
trails.

Meanwhile, Google is proposing a major new terraced complex in Sunnyvale, California,

where employees will be able to move from one floor to the next by walking down a
sloping outdoor path, as well as a new tent-like campus in Mountain View with "smile-
shaped" clerestory windows and a "green loop" of indoor/outdoor spaces that wind
through the building. Facebook's recent Frank Gehry-designed headquarters includes a
nine-acre rooftop park.

"If you're going to be in Seattle and be a programmer, the biggest options are Amazon
and Microsoft," Webb said. "They have to keep up. To me, it's all about attraction and
retention. The unemployment rate is almost at an all-time low."
Schoettler said in an interview that the Spheres was more like the "icing on the cake" than
the "linchpin" of how Amazon's real estate could help it recruit workers in a competitive
market for talent. He believes Seattle's urban setting is a bigger factor in attracting
workers and said he would not speak to what other technology companies are doing. "We
just thought this would be a super opportunity to do something really unique on this
piece of property."

COMMENTS
Plenty of Amazon's local workforce - Seattle is currently home to some 40,000 of
Amazon's more than 500,000 global workers - at least, appear to agree. Schoettler said
the reservation system for workers to check out the domes, which hold up to 1,000
people at one time, is booked through April.
 Plant Layout for a Warehouse
• Objective: Optimal relationship between space and material handling costs.
– Aspects to be considered: cubic space utilization, storing equipment and methods, material
protection, allocation of different parts, etc.
• A warehouse layout is more complicated when:
– The different customer orders take into account a high number of references.
– There are frequent orders of low number of units for the same product.
• In such cases, the material handling costs for each round trip move would be excessively high.
• Solutions for this problem: Aggregation of units for several orders, or establishment of optimal
routes for each order.

Zones Zones Control

station Shipping

Click to add title doors

Tractor
trailer

Tractor
trailer
Feeder Feeder
lines lines Overflow
 AUTOMATED STORAGE AND RETRIEVAL
SYSTEM (ASRS)
• Def: Variety of “computer controlled” systems
for automatically “placing” and “retrieving”
loads from “defined storage locations”
• Application:
o High vol of loads being moved into & out of storage
o Where space is constraint (low floor space but FSI avail)
o Where labor cost is high ( Racking and pallet system)
o Accurate Inventory tracking
o Accurate processing in production units.
 Two Types
• Fixed Aisle ASRS using stacker crane which move horizontally and vertically

Pallet
Storage Crane

Pallet
Storage
Aisle
with
rails

• ShuttleType: Independent shuttles for hor movement for each level of rack and one
lift resp for vertical movement
 Industries using ASRS
• Tobacco/Liquor Ind. for Raw Mtl and FG

• Engg Ind for spare parts

• Library for books

• Eg….GPI tobacco production to PMD

You Tube …ASRS
 GPI Rabale 10 acre Plant
NTM
Loading

Tobacco ASRS
Loading (Tob/NTM)
FG Loading Gate 1
Platform

U
T
I
L ADMIN
I PMD CTS SECONDARY BSR BLDG
T
I
E
S

Water, PH
Waste Water Cut Tob
Treatment Export

Gate 2
 Objective of Facility Planning

TECHNOLOGY GOVT
C
U
S Optimize relationship
T within the organisation
O
M
E Suppliers
R Vendors ENVIRONMENT
S

Otimize relationship
With outside factors
To satisfy
customers
FACTORS for Facility Planning..GPI
LOCATION
……. Vicinity to Market, Ports, Suppliers etc

………Ease of doing business/mfg ( labor, govt)

………Fixed and recurring costs ( labor, electricity etc)

Fire Safety
DESIGN…….Systems…….. Electricity
Lighting
Water, Sanitation etc

……Layout ----Flow important

……Handling Systems
 MAIN FEATURES of FACILITIES..GPI
• Flexibility …….Handle variety of reqts w/o alteration

• Modularity …… Helps phasewise expansion

• Upgradability .. Advantage in eqpt technology

• Adaptability .. Handle demand peaks/valleys

• Selective operability ..Only sectional operational

 FACILITY LAYOUT…AGENDA
 Introduction to Facility Layout
 Fixed-Position Layout
 Product Layout (Assembly Line Balancing)
 Process Layout
 CRAFT
 Group Technology (Cellular) Layout
 Retail Service Layout
 Office Layout
THANK YOU