6-Facility Layout Planning

Unit 6 -
Facilities Layout
1
Overview

Facility Layout

Manufacturing Facility Layouts

Analyzing Manufacturing Facility Layouts

Service Facility Layouts

Wrap-Up: What World-Class Companies Do
2
Facility Layout
Facility layout means planning:


for the location of all machines, utilities, employee
workstations, customer service areas, material
storage areas, aisles, restrooms, lunchrooms,
internal walls, offices, and computer rooms

for the flow patterns of materials and people
around, into, and within buildings
3
Locate All Areas In and Around Buildings

Equipment

Work stations

Material storage

Rest/break areas

Utilities

Eating areas

Aisles

Offices
4
Characteristics of the Facility Layout Decision

Location of these various areas impacts the flow
through the system.

The layout can affect productivity and costs
generated by the system.

Layout alternatives are limited by

the amount and type of space required for the
various areas

the amount and type of space available

the operations strategy

. . . more
5
Characteristics of the Facility Layout Decision
Layout decisions tend to be:


Infrequent

Expensive to implement

Studied and evaluated extensively

Long-term commitments
6
Manufacturing Facility Layouts
7
Materials Handling

The central focus of most manufacturing layouts is to
minimize the cost of processing, transporting, and
storing materials throughout the production system.

Materials used in manufacturing include:

Raw material

Purchased components

Work-in-progress

Finished goods

Packaging material

Maintenance, repair, and operating supplies
8
Materials Handling
A materials-handling system is the entire network of

transportation that:

Receives material

Stores material in inventories

Moves material between processing points

Deposits the finished products into vehicles for
delivery to customers
9
Materials Handling
Material-Handling Principles

Move directly (no zigzagging/backtracking)

Minimize human effort required

Move heavy/bulky items the shortest distances

Minimize number of times same item is moved

MH systems should be flexible

Mobile equipment should carry full loads
10
Materials Handling
Material-Handling Equipment

Automatic transfer devices

Containers/pallets/hand carts

Conveyors

Cranes

Elevators

Pipelines

Turntables

Automated guided vehicle system (AGVS)
11
Machine Objectives of Facility Layout
Arrangement of areas within a facility to:


Minimize material-handling costs 
Facilitate entry, exit, and placement of

Utilize space efficiently material, products, and people

Utilize labor efficiently 
Incorporate safety and security

Eliminate bottlenecks measures

Facilitate communication and 
Promote product and service quality
interaction 
Encourage proper maintenance activities

Reduce manufacturing cycle time 
Provide a visual control of activities

Reduce customer service time 
Provide flexibility to adapt to changing

Eliminate wasted or redundant conditions
movement

Increase capacity
12
Basic Layout Forms

Process

Product

Cellular

Fixed-Position

Hybrid
13
Process (Job Shop) Layouts

Equipment that perform similar processes are
grouped together

Used when the operations system must handle a wide
variety of products in relatively small volumes (i.e.,
flexibility is necessary)
14
Process Layout in Services
 Group similar activities together according to process or function they

perform
Women’s
Shoes Housewares
lingerie
Women’s Cosmetics Children’s

dresses and jewelry department
Women’s Entry and Men’s

sportswear display area department
15
Manufacturing Process Layout
 Group similar activities together according to process or function they perform
Milling
Lathe Department Department Drilling Department
M M D D D D
L L
M M D D D D
L L
G G G P
L L
G G G P
L L
Grinding Painting Department
Department
L L
Receiving and A A A
Shipping Assembly
16
Characteristics of Process Layouts

General-purpose equipment is used

Changeover is rapid

Material flow is intermittent

Material handling equipment is flexible

Operators are highly skilled

. . . more
17
Characteristics of Process Layouts

Technical supervision is required

Planning, scheduling and controlling functions are
challenging

Production time is relatively long

In-process inventory is relatively high
18
Product (Assembly Line) Layouts

Operations are arranged in the sequence required to
make the product

Used when the operations system must handle a
narrow variety of products in relatively high volumes

Operations and personnel are dedicated to producing
one or a small number of products
19
A Product Layout
In
Out
20
Characteristics of Product Layouts

Special-purpose equipment are used

Changeover is expensive and lengthy

Material flow approaches continuous

Material handling equipment is fixed

Operators need not be as skilled

. . . more
21
Characteristics of Product Layouts

Little direct supervision is required

Planning, scheduling and controlling functions are
relatively straight-forward

Production time for a unit is relatively short

In-process inventory is relatively low
22
Comparison of Product and Process Layouts
Product Process

 Description
Description  Sequential  Functional
arrangement of grouping of
activities activities

 Type
Type of
of process
process  Continuous, mass  Intermittent, job
production, mainly shop, batch
assembly production, mainly
fabrication

 Product
Product  Standardized, made  Varied, made to
to stock order

 Demand
Demand  Stable  Fluctuating

 Volume
Volume  High  Low

 Equipment
Equipment  Special purpose  General purpose
23
Comparison of Product and Process Layouts
Product Process

 Workers
Workers  Limited skills  Varied skills

 Inventory
Inventory  Low in-process, high  High in-process, low
finished goods finished goods

 Storage
Storage space
space  Small  Large

 Material
Material handling
handling  Fixed path (conveyor)  Variable path (forklift)

 Aisles
Aisles  Narrow  Wide

 Scheduling
Scheduling  Part of balancing  Dynamic

 Layout
Layout decision
decision  Line balancing  Machine location

 Goal
Goal  Equalize work at each  Minimize material
station handling cost

 Advantage
Advantage  Efficiency  Flexibility
24
Cellular Manufacturing Layouts

Operations required to produce a particular family
(group) of parts are arranged in the sequence required
to make that family

Used when the operations system must handle a
moderate variety of products in moderate volumes
25
Characteristics of Cellular Manufacturing
Relative to Process Layouts

Equipment can be less general-purpose

Material handling costs are reduced

Training periods for operators are shortened

In-process inventory is lower

Parts can be made faster and shipped more quickly
26
Characteristics of Cellular Manufacturing
Relative to Product Layouts

Equipment can be less special-purpose

Changeovers are simplified

Production is easier to automate
27
Fixed-Position Layouts

Product remains in a fixed position, and the
personnel, material and equipment come to it

Used when the product is very bulky, large, heavy or
fragile

Low equipment utilization

Highly skilled labor

Typically low fixed cost

Often high variable costs
28
Hybrid Layouts

Actually, most manufacturing facilities use a
combination of layout types.

An example of a hybrid layout is where departments
are arranged according to the types of processes but
the products flow through on a product layout.
29
New Trends in Manufacturing Layouts

Designed for quality

Designed for flexibility - to quickly shift to different
product models or to different production rates

Cellular layout within larger process layouts

Automated material handling

U-shaped production lines

. . . more
30
New Trends in Manufacturing Layouts

More open work areas with fewer walls, partitions, or
other obstacles

Smaller and more compact factory layouts

Less space provided for storage of inventories
throughout the layout
31
Planning Manufacturing Facility Layouts
Two Categories of Software Tools


Computer aided design (CAD)

Allows 3-D, full-color views of facility design

Allows virtual walk-throughs

Ex. – ArchiCAD, AutoSketch, AutoCAD

Computer simulation

Can simulate proposed system layout in operation
and measure its performance

Ex. – ProModel, VisFactory, SIMPROCESS
32

Process and Warehouse Layouts

Product Layouts

Cellular Manufacturing Layouts
33
Process Layouts

Primary focus is on the efficient flow of materials

The wide variety of potential product routings
through the facility can be evaluated using
computer simulation

Warehouse Layouts

Primary focus is the fast storage and retrieval of
inventory items

Decisions about aisle size/placement and location
of each inventory item can be evaluated using
computer simulation
34
Designing Process Layouts
 Goal: minimize material handling costs

 Two techniques used:
(1) Block Diagramming

minimize (a) nonadjacent loads (Approach 1) or (b)
costs of material handling (Approach 2)

use when quantitative data is available
(2) Relationship Diagramming

based on location preference between areas (using
subjective input from analysts or managers)

use when quantitative data is not available or do not
adequately address the layout problem.
35
Block Diagramming (Approach 1)

Block diagram  STEPS

a type of schematic 
create load summary chart
layout diagram that 
calculate composite (two way)
includes space movements
requirements. 
develop trial layouts minimizing

Unit load number of nonadjacent loads

quantity in which
material is normally
moved

Nonadjacent load

distance farther than
the next block
Source: Russell & Taylor (7ed) Chapter 7, p. 266-270 36
Block Diagramming: Example 1
A department store is arranged into 5 department. Current layout of the facility is
shown schematically on the 2 x 3 grid.
110 Load Summary Chart
FROM/TO DEPARTMENT
1 2 3
Department 1 2 3 4 5
1 — 100 50
2 — 200 50
4 5 3 60 — 40 50
4 100 — 60
40 5 50 —
Current layout evaluation

Nonadjacent Loads:
110 + 40 = 150 37
Block Diagramming: Example (cont.)
Rank the Composite Movements

from highest to lowest
Nonadjacent Loads:
2 3 200 loads
110+40=150
2 4 150 loads
1 3 110 loads 110
1 2 100 loads
4 5 60 loads 100 200
1 2 3
3 5 50 loads
2 5 50 loads 150 50 50
3 4 40 loads 60
4 5
1 4 0 loads
1 5 0 loads Grid 1
40
38
Rank the Composite Movements

from highest to lowest
The revised layout evaluation

2 3 200 loads
Nonadjacent Loads:
2 4 150 loads
0+0=0
1 3 110 loads 0
1 2 100 loads
4 5 60 loads 1
100
2
150
4
3 5 50 loads
200 50 40 60
2 5 50 loads 110
3 4 40 loads 50
3 5
1 4 0 loads
1 5 0 loads Grid 2
0
39

Block Diagram

a type of schematic layout diagram; includes space requirements
(a) Initial block diagram (b) Final block diagram
1 4
1 2 4 2
3 5 3 5
40
Block Diagramming (Approach 2)
(Heizer
(Heizer &
& Render
Render (10
(10 ed)
ed) Chapter
Chapter 9,
9, p.
p. 384-387)
384-387)
 Arrange work centers so as to

minimize the costs of material
handling
 Basic cost elements are
 Number of loads (or people) moving
between centers
 Distance loads (or people) move
between centers
41
Block Diagramming (Approach 2…cont.)
Assumptions: The difficulty of movement is equal, and also that the pickup and
setdown costs are constant.
n n
Minimize cost = ∑ ∑ Xij Cij

i=1 j=1
where n = total number of work centers or

departments
i, j = individual departments
Xij = number of loads moved from
department i to department j
Cij = cost to move a load between
department i and department j, in which it
combines distance, difficulties and other
costs into one factor.
42
Process Layout Example 2
Arrange six departments in a factory to

minimize the material handling costs.
Each department is 20 x 20 feet and the
building is 60 feet long and 40 feet wide.
1. Construct a “from-to matrix”
2. Determine the space requirements
3. Develop an initial schematic diagram
4. Determine the cost of this layout
5. Try to improve the layout
6. Prepare a detailed plan
43
Number of loads per week

Department Assembly Painting Machine Receiving Shipping Testing
(1) (2) Shop (3) (4) (5) (6)
Assembly (1) 50 100 0 0 20
Painting (2) 30 50 10 0
Machine Shop (3) 20 0 100
Receiving (4) 50 0
Shipping (5) 0
Testing (6)
44
Area 1 Area 2 Area 3
Assembly Painting Machine Shop

Department Department Department
(1) (2) (3)
40’
Receiving Shipping Testing

(4) (5) (6)

60’ 45
Interdepartmental Flow Graph

100
50 30
1 2 3
20 20
10
50 100
4 5 6
50
46
n n
Cost = ∑ ∑ Xij Cij

i=1 j=1
The cost of moving one load between adjacent departments is estimated to be

$1. Moving a load between nonadjacent departments costs $2. Work areas that
are diagonal to one another, such as 2 and 4, are treated as adjacent.
Cost = $50 + $100x2 + $20x2

(1 and 2) (1 and 3) (1 and 6)
+ $30 + $50 + $10

(2 and 3) (2 and 4) (2 and 5)
+ $20x2 + $100 + $50

(3 and 4) (3 and 6) (4 and 5)
= $570
47
Revised Interdepartmental Flow Graph

Hint: departments with large flows of parts or people between them should be
placed next to one another.
30
50 100
2 1 3
10
50 20 20 100
50
4 5 6
48
n n
Cost = ∑ ∑ Xij Cij

i=1 j=1
Cost = $50 + $100 + $20

(1 and 2) (1 and 3) (1 and 6)
+ $30x2 + $50 + $10
(2 and 3) (2 and 4) (2 and 5)
+ $20x2 + $100 + $50
(3 and 4) (3 and 6) (4 and 5)
= $480
A savings in material handling of $90 and the company is satisfied with this cost figure. 49
Process Layout Example
Prepare
Prepare aa detailed
detailed plan
plan -- arranging
arranging the
the departments
departments toto fit
fit the
the shape
shape of
of the
the building
building and
and
its
its non-movable
non-movable areas
areas (such
(such as
as the
the loading
loading dock,
dock, washrooms,
washrooms, andand stairways).
stairways).
Painting Assembly Machine Shop

(2) (1) (3)
40’
Receiving Shipping Testing

(4) (5) (6)

60’ 50
Relationship Diagramming (Method 2)
Source: Russell & Taylor (7ed) Chapter 7, p. 269-271

Schematic diagram that uses
weighted lines to denote location
preference (the thickest lines identify
the closeness ratings with the highest
priority

Muther’s grid

format for displaying manager
preferences for department
locations

The preference information is
coded into six categories
associated with the five vowels,
A, E, I, O, and U, plus the letter
X.
51
Relationship Diagramming:
Example AA Absolutely
Absolutelynecessary
necessary
EE Especially
Especiallyimportant
important
II Important
Important
OO Okay
Okay
Production
UU Unimportant
Unimportant
O XX Undesirable
Undesirable
Offices A
U I
Stockroom O E
A X A
Shipping and
receiving U U
U O
Locker room O
O
Toolroom
52
Relationship Diagramming:
ItItisisOkay
Okayififthe
theoffices
offices
are
arelocated
locatednext
nextto
to
Exampleproduction,
production,Absolutely
Absolutely
Necessary
Necessarythat
thatthe
the
stockroom
stockroombebelocated
located
Production next
nextto
toproduction,
production,…..
…..
O
Offices A
U I
Stockroom O E
A X A
Shipping and
receiving U U
U O
Locker room O
O
Toolroom
53
Alternative format for displaying
manager preferences for department locations
Closeness Rating Meaning of Rating


1 
Necessary

2 
Very important

3 
Important

4 
Slightly important

5 
Unimportant

6 
Undesirable
Remarks:
1.Lines of different thicknesses are drawn from department to department. The
thickest lines (three, four, or five strands) identify the closeness ratings with the
highest priority. The priority diminishes with line thickness. Undesirable closeness
ratings are marked with a zigzagged line.
2.Visually, the best solution would show short heavy lines and no zigzagged lines.
3. An alternative form of relationship diagramming uses colors instead of line thickness
to visualize closeness ratings.
54
Relationship Diagrams: Example (cont.)
(a) Relationship diagram of original layout
Offices Locker Shipping

room and
receiving
Key: A
E
I
Stockroom Toolroom Production
O
U
X
55
Relationship Diagrams: Example (cont.)
(b) Relationship diagram of revised layout
Stockroom
Offices Shipping
and
receiving
Locker Key: A
Toolroom Production
room E
I
O
U
X
56
Computerized layout Solutions

CRAFT(Computerized Relative Allocation of Facilities Technique)

uses a load summary chart and block diagram as input and then
makes pairwise exchanges of departments until no improvements in
cost or nonadjacency score can be found.

CORELAP (Computerized Relationship Layout Planning)

uses nonquantitative input and relationship diagramming to
produce a feasible layout for up to 45 departments and different
building shapes.

attempts to create an acceptable layout from the beginning by
locating department pairs with A ratings first, then those with E
ratings, and so on.

PROMODEL and EXTEND

Simulation software for layout analysis

Provide visual feedback and allow user to quickly test a variety of
scenarios

Three-D modeling and CAD

integrated layout analysis
57
Product Layouts

Primary focus is on the analysis of production lines

The goal of the production line analysis is to:

Determine how many workstations to have

Determine which tasks to assign to which workstation

Minimize the number of workers & machines used

Provide the required amount of capacity

Line balancing is a key part of the analysis which tries to
equalize the amount of work at each workstation so that the
number of work stations required on the production line is
minimized (so that worker productivity is maximized)
58
Assembly-Line Balancing
 Objective is to minimize the imbalance

between machines or personnel while
meeting required output
59
Planning Product Layouts
Line Balancing Procedure

1. Determine the tasks involved in completing 1 unit
of a particular product
2. Determine the order in which tasks must be done
3. Draw a precedence diagram
4. Estimate task times
5. Calculate the cycle time
6. Calculate the minimum number of workstations
7. Use a heuristic to assign tasks to workstations so
that the production line is balanced
60
Formulas
Production time
available per day
Cycle time = Units required per day
n
Minimum ∑ Time for task i
number of = i=1
workstations Cycle time
∑ Task times
Efficiency =
(Actual number of workstations) x (cycle time)
61
Wing Component Example
Performance Task Must Follow 480 available

Time Task Listed mins per day
Task (minutes) Below 40 units required
A 10 — Cycle time = 12 mins
B 11 A Minimum
C 5 B workstations = 5.5 or 6
D 4 B
E 12 A
F 3 C, D 5
G 7 F 10 11
C
3 7
H 11 E
A B F G
I 3 G, H 4
3
Total time 66 12
D
11 I
E H
Precedence diagram 62
Line Balancing Heuristics


Heuristic methods, based on simple rules, have been
developed to provide good (not optimal) solutions to
line balancing problems

Heuristic methods include:

Longest-task-time (LTT) method

… and many others (Shortest-task-time, Most
number of following tasks, Least number of
following tasks, Ranked positional weight, etc.)
63
Layout heuristics that may be used to assign tasks
to workstations
1. Longest task time Choose the available task with the longest
task time
2. Most following tasks Choose the available task with the largest
number of following tasks
3. Ranked positional weight Choose the available task for which the sum
of following task times is the longest
4. Shortest task time Choose the available task with the shortest
task time
5. Least number of following tasks Choose the available task with the least
number of following tasks
64
Longest-Task-Time Method

Adds tasks to a workstation one at a time in the order
of task precedence.

If two or more tasks tie for order of precedence, the
one with the longest task time is added

Conditions for its use:

No task time can be greater than the cycle time

There can be no duplicate workstations
65
Assign tasks to workstations

Step 1. Begin with station k = 1. Make a list of candidate
work elements to assign to station k. Each candidate
must satisfy three conditions:
a. It has not yet been assigned to this or any previous station.
b. All its predecessors have been assigned to this or a
previous station.
c. Its time cannot exceed the station’s idle time, which
accounts for all work elements already assigned. If none
has been assigned, the station’s idle time equals the cycle
time.
If no such candidates can be found, go to step 4.

Step 2. Pick a candidate using a line-balancing heuristic.
Assign the candidate chosen to station k. If there are
ties, break them randomly.
66
Assign tasks to workstations (con’t)

Step 3. Calculate the cumulative time of all tasks
assigned so far to station k. Subtract this
total from the cycle time to find the
station’s idle time. Go to step 1, and
generate a new list of candidates.

Step 4. If some work elements are unassigned, but
none are candidates for station k, start a
new station k + 1 and go to step 1.
Otherwise, you have a complete solution.
67
Line Balancing
(Krajewski, Ritzman & Malhotra (10 ed) Chapter 7 Line balancingp. 274-279)
Green Grass, Inc.

Big Broadcaster
68
Line Balancing Big Broadcaster
Work Time Immediate

Element Description (sec) Predecessor(s)
A Bolt leg frame to hopper 40 None
B Insert impeller shaft 30 A
C Attach axle 50 A
D Attach agitator 40 B
E Attach drive wheel 6 B
F Attach free wheel 25 C
G Mount lower post 15 C
H Attach controls 20 D, E
I Mount nameplate 18 F, G
Total 244
69
Work Time Immediate
C Attach axle 50 A
Total 244
70
Work Time Immediate
C Attach axle 50 A
Total 244
A
40
71
Work Time Immediate
C Attach axle 50 A
E
F
Attach drive wheel
Attach free wheel
6
25
B B
C
H
I
Attach controls
Mount nameplate
20
18
30 D, E
F, G
Total 244
A
40
72
Work Time Immediate
C Attach axle 50 A
E
F
Attach drive wheel
Attach free wheel
6
25
B B
C
H
I
Attach controls
Mount nameplate
20
18
30 D, E
F, G
Total 244
A
40 C
50
73
Work Time Immediate
B
C
Insert impeller shaft
Attach axle
30
50
A
A
D
E
F
Attach drive wheel
Attach free wheel
6
25
B B
C
40
H
I
Attach controls
Mount nameplate
20
18
30 D, E
F, G
Total 244
A
40 C
50
74
Work Time Immediate
B
C
Attach axle
30
50
A
A
D
E
F
Attach drive wheel
Attach free wheel
6
25
B B
C
40
H
I
Attach controls
Mount nameplate
20
18
30 D, E
F, G
E
Total
A
244
6
40 C
50
75
Work Time Immediate
B
C
Attach axle
30
50
A
A
D
E
F
Attach drive wheel
Attach free wheel
6
25
B B
C
40
H
I
Attach controls
Mount nameplate
20
18
30 D, E
F, G
E
Total
A
244
6
F
40 C 25
50
76
Work Time Immediate
B
C
Attach axle
30
50
A
A
D
E
F
Attach drive wheel
Attach free wheel
6
25
B B
C
40
H
I
Attach controls
Mount nameplate
20
18
30 D, E
F, G
E
Total
A
244
6
F
40 C 25
50
G
15
77
Work Time Immediate
B Insert impeller shaft 30 A D
C
D
Attach axle
Attach agitator
50
40
A
B
H
E Attach drive wheel 6
B B 40
F Attach free wheel 25 C 20
H
I
Attach controls
Mount nameplate
20
18
30 D, E
F, G
E
Total
A
244
6
F
40 C 25
50
G
15
78
Work Time Immediate
B Insert impeller shaft 30 A D
C
D
Attach axle
Attach agitator
50
40
A
B
H
E Attach drive wheel 6
B B 40
F Attach free wheel 25 C 20
H
I
Attach controls
Mount nameplate
20
18
30 D, E
F, G
E
Total
A
244
6
F
40 C 25
50 I
18
G
15
79
D
H
B 40
20
30 E
A 6
F
40 C 25
50 I
18
G
15
80
D
H
B 40
20
30 E
A 6
F Desired output rate = 2400/week
40 C Plant operates 40 hours/week
25
50 I
18
G
15
81
D
H
B 40
20
30 E
A 6
25
50 r = 2400/40 = 60 Iunits/hour
18
G
15
82
D
H
B 40
20
30 E
A 6
25
50 r = 2400/40 = I60 units/hour
18
G c == 1/60 = 1 minute/unit
60 seconds/unit
15
83
c = 60 seconds/unit
D
H
B 40
20
30 E
A 6
25
50 I
18
G
15
84
c = 60 seconds/unit
D
H
B 40
20
30 E
A 6
25
50 TM = 244 seconds/60
I seconds
= 4.067 or 5 stations
18
G
15
85
c = 60 seconds/unit
D
H
B 40
20
30 E
A 6
25
I seconds
18
G
Efficiency = [244\5(60)]100 = 81.3%
15
86
c = 60 seconds/unit
TM = 5 stations D
Efficiency = 81.3% H
B 40
20
30 E
A 6
25
I seconds
18
G
Efficiency = [244\5(60)]100 = 81.3%
15
87
Line Balancing Longest task time rule Big Broadcaster
c = 60 seconds/unit
TM = 5 stations D
B 40
20
30 E
A 6
Cumm Idle
F Station Candidate Choice Time Time
40 C 25
50 I
18
G
15
88
c = 60 seconds/unit
TM = 5 stations D
B 40
20
30 E
A 6
Cumm Idle
40 C 25 S1 A A 40 20
50 I
18
G
15
89
c = 60 seconds/unit
TM = 5 stations D
B 40
20
30 E
A 6
Cumm Idle
40 C 25 S1 A A 40 20
50 I
18
G
15
90
c = 60 seconds/unit
TM = 5 stations D
B 40
20
S1 30 E
A 6
Cumm Idle
40 C 25 S1 A A 40 20
50 I
18
G
15
91
c = 60 seconds/unit
TM = 5 stations D
B 40
20
S1 30 E
A 6
Cumm Idle
40 C 25 S1 A A 40 20
50 S2 B,C C
I 50 10
18
G
15
92
c = 60 seconds/unit
TM = 5 stations D
B 40
20
S1 30 E
A 6
Cumm Idle
40 C 25 S1 A A 40 20
50 S2 B,C C
I 50 10
18
G
15
93
c = 60 seconds/unit
TM = 5 stations D
B 40
20
S1 30 E
A 6
S2 F
Cumm Idle
Station Candidate Choice Time Time
40 C 25 S1 A A 40 20
50 S2 B,C C
I 50 10
18
G
15
94
c = 60 seconds/unit
TM = 5 stations D
B 40
20
S1 30 E
A 6
S2 F
Cumm Idle
40 C 25 S1 A A 40 20
50 S2 B,C C
I 50 10
S3 B,F,G B 30 30
18
G
15
95
c = 60 seconds/unit
TM = 5 stations D
B 40
20
S1 30 E
A 6
S2 F
Cumm Idle
40 C 25 S1 A A 40 20
50 S2 B,C C
I 50 10
S3 B,F,G B 30 30
18
G
15
96
c = 60 seconds/unit
TM = 5 stations D
B 40
20
S1 30 E
A 6
S2 F
Cumm Idle
40 C 25 S1 A A 40 20
50 S2 B,C C
I 50 10
S3 B,F,G B 30 30
18
G
15
97
c = 60 seconds/unit
TM = 5 stations D
B 40
20
S1 30 E
A 6
S2 F
Cumm Idle
40 C 25 S1 A A 40 20
50 S2 B,C C
I 50 10
S3 B,F,G B 30 30
E,F,G 18
F 55 5
G
98
c = 60 seconds/unit
TM = 5 stations D
B 40
20
S1 30 E
A 6
S2 F
Cumm Idle
40 C 25 S1 A A 40 20
50 S2 B,C C
I 50 10
S3 B,F,G B 30 30
E,F,G 18
F 55 5
G
15
99
c = 60 seconds/unit
TM = 5 stations D
B 40
20
S1 30 E
S3 6
A S2 Cumm Idle
40 C 25 S1 A A 40 20
50 S2 B,C C
I 50 10
S3 B,F,G B 30 30
E,F,G 18
F 55 5
G
15
100
c = 60 seconds/unit
TM = 5 stations D
B 40
20
S1 30 E
S3 6
A S2 F
40 C 25
50 I
18
G
15
101
c = 60 seconds/unit
TM = 5 stations D
B 40
20
S1 30 E
S3 6
A S4
S2 F S5
40 C 25
50 I
18
G
15
102
Rebalancing a Production Line


Changes that can lead to production lines being out of
balance or having insufficient/excess capacity are:

Changes in demand

Machine modifications

Variations in employee learning and training
103
Planning Cellular Manufacturing Layouts (Gaither)

Cell Formation Decision

Which machines are assigned to manufacturing
cells

Which parts will be produced in each cell
104
Planning Cellular Manufacturing Layouts

Fundamental Requirements for Parts to be Made in
Cells

Demand for the parts must be high enough and
stable enough that moderate batch sizes of the
parts can be produced periodically.

Parts must be capable of being grouped into parts
families.
105
More-Complex Issues to be Resolved


If all the parts cannot be cleanly divided between
cells, how will we decide which are to be the
exceptional parts?

If inadequate capacity is available to produce all the
parts in cells, which parts should be made outside the
cells?
106
Cell Formation Procedure

1. Form the Parts-Machines Matrix.
2. Rearrange the Rows.

Place the machines that produce the same parts in
adjacent rows.
3. Rearrange the Columns.

Place the parts requiring the same machines in
adjacent columns.
4. Use the rearranged parts-machines matrix to identify
cells, the machines for that cell and the parts that will
be produced in that cell.
107
Example: Maxx Superchargers

Cell Formulation
Maxx produces superchargers for high
performance cars and trucks. Maxx has implemented
a group technology program in its shop and now must
formulate the manufacturing cells. Maxx has
identified six parts that meet the requirements for
CM.
The parts-machines matrix on the next slide
identifies the 6 parts and 5 machines on which the
parts are presently produced.
108

Cell Formulation – Original Matrix
Parts
1 2 3 4 5 6
A X X X
B X X X X
Machines C X X
D X X
E X X X
109

Cell Formulation – Rows Rearranged
Parts
1 2 3 4 5 6
A X X X
E X X X
Machines D X X
C X X
B X X X X
110

Cell Formulation – Columns Rearranged
Parts
3 5 6* 1 2 4
A X X X
E X X X
Machines D X X
C X X
B X X X X
* exceptional part
111

Cell Formulation – Summary

2 manufacturing cells (MC1, MC2) will be used.

Parts 3 and 5 will be produced in MC1 on
machines A and E.

Parts 1, 2 and 4 will be produced in MC2 on
machines B, C and D.

Part 6 is an exceptional part that cannot be
produced within a single cell.
112
Warehouse Layouts (Krajewski & Ritzman)
 Out-and-back selection pattern


Simplest situation

One item picked at a time; go from dock to
storage area and back
 Decision rule to minimize ld-score

Equal areas: Place departments with most trips
closest to the dock.

Unequal areas: Place departments with highest
trip-to-area ratio closest to the dock.
113
Example: A-1 Distribution Systems
Storage area
Dock Aisle
Figure 10.10 Storage area
114
Storage area
Dock Aisle
Example 10.3 Storage area
Trips to and Area Needed

Department from Dock (blocks)
1. Toasters 280 1
2. Air conditioners 160 2
3. Microwaves 360 1
4. Stereos 375 3
5. TVs 800 4
6. Radios 150 1
7. Bulk storage 100 2
115
Storage area
Dock Aisle

Department from Dock (blocks) Ratio Rank
1. Toasters 280 1 280/1 = 280
2. Air conditioners 160 2 160/2 = 80
3. Microwaves 360 1 360/1 = 360
4. Stereos 375 3 375/3 = 125
5. TVs 800 4 800/4 = 200
6. Radios 150 1 150/1 = 150
7. Bulk storage 100 2 100/2 = 50
116
Storage area
Dock Aisle

1. Toasters 280 1 280/1 = 280 2
2. Air conditioners 160 2 160/2 = 80 6
3. Microwaves 360 1 360/1 = 360 1
4. Stereos 375 3 375/3 = 125 5
5. TVs 800 4 800/4 = 200 3
6. Radios 150 1 150/1 = 150 4
7. Bulk storage 100 2 100/2 = 50 7
117
Storage area
Dock Aisle

1. Toasters 280 1 280/1 = 280 2
3. Microwaves 360 1 360/1 = 360 1
4. Stereos 375 3 375/3 = 125 5
5. TVs 800 4 800/4 = 200 3
6. Radios 150 1 150/1 = 150 4
7. Bulk storage 100 2 100/2 = 50 7
118
Storage area
3
Dock Aisle

1. Toasters 280 1 280/1 = 280 2
3. Microwaves 360 1 360/1 = 360 1
4. Stereos 375 3 375/3 = 125 5
5. TVs 800 4 800/4 = 200 3
6. Radios 150 1 150/1 = 150 4
7. Bulk storage 100 2 100/2 = 50 7
119
Storage area
3
Dock Aisle
1

1. Toasters 280 1 280/1 = 280 2
3. Microwaves 360 1 360/1 = 360 1
4. Stereos 375 3 375/3 = 125 5
5. TVs 800 4 800/4 = 200 3
6. Radios 150 1 150/1 = 150 4
7. Bulk storage 100 2 100/2 = 50 7
120
Storage area
3 5 5
Dock Aisle
1 5 5

1. Toasters 280 1 280/1 = 280 2
3. Microwaves 360 1 360/1 = 360 1
4. Stereos 375 3 375/3 = 125 5
5. TVs 800 4 800/4 = 200 3
6. Radios 150 1 150/1 = 150 4
7. Bulk storage 100 2 100/2 = 50 7
121
Storage area
3 5 5 6 4 2 7
Dock Aisle
1 5 5 4 4 2 7
Figure 10.11 Storage area

1. Toasters 280 1 280/1 = 280 2
3. Microwaves 360 1 360/1 = 360 1
4. Stereos 375 3 375/3 = 125 5
5. TVs 800 4 800/4 = 200 3
6. Radios 150 1 150/1 = 150 4
7. Bulk storage 100 2 100/2 = 50 7
122
Service Facility Layouts
123
Characteristics of Services

There may be a diversity of services provided

There are three dimensions to the type of service:

Standard or custom design

Amount of customer contact

Mix of physical goods and intangible services

There are three types of service operations:

Quasi manufacturing

Customer-as-participant

Customer-as-product
124
Characteristics of Service Facility Layouts

The encounter between the customer and the service
must be provided for.

The degree to which customer-related features must
be provided varies with the amount of customer
involvement and customer contact.
125
Planning Service Facility Layouts
Quasi-Manufacturing Services

Several topics previously discussed under
Manufacturing Layouts are relevant here:
Principles of material handling

CAD and simulation software


Line balancing

126
Planning Service Facility Layouts (cont.)
Customer-as-Participant & Customer-as-Product


An important element is providing for customer
waiting lines
Amount of space needed for service counters

and waiting customers

Placement of waiting lines in overall layout

127
Planning Service Facility Layouts (cont.)

For many service operations, layouts are like process
layouts in manufacturing

The departments of hospitals are grouped and located
according to their processes

In some cases, closeness ratings are used to reflect the
desirability of having one department near another
128
Designing Service (Store) Layouts
(Russell & Taylor)
 Must be both attractive and functional

 Types (refer to slide 130)

Free flow layouts

encourage browsing, increase impulse purchasing, are
flexible and visually appealing

Grid layouts

encourage customer familiarity, are low cost, easy to clean
and secure, and good for repeat customers

Loop and Spine layouts

both increase customer sightlines and exposure to products,
while encouraging customer to circulate through the entire
store
129
Types of Store Layouts
Russell
Russell &
& Taylor
Taylor (2014,
(2014, p.
p. 217)
217)
130
Using Closeness Ratings (Gaither )
to Develop Service Facility Layouts

Typical Closeness Ratings
Closeness Meaning
Rating of Rating
1 Necessary
2 Very Important
3 Important
4 Slightly Important
5 Unimportant
6 Undesirable
131
Using Closeness Ratings
to Develop Service Facility Layouts
Start Let m = 1 (necessary) and n = 6 (undesirable). Step 1
Identify dept. pairs with CR of m. Step 2
Develop layout with dept. pairs iden-

Step 3
tified in Step 2 adjacent to one another.
Let m = m + 1
and n = n - 1. Identify dept. pairs with CR of n. Step 4
No
Fit the dept. pairs identified in Step 4
Does Step 5
into the trial layout from Step 3.
m = 3 and n = 4
? Examine the trial layout from Step 5.
Yes If any CRs of dept. pairs are violated, Step 6
rearrange depts. to comply with CRs.
Stop
132
Example: AG Advertising

Using Closeness Ratings
AG Advertising is moving into a new office suite
having seven large, roughly equal size rooms, one for
each department of the firm. Lisa, the manager, must
now assign each department to a room. She has
developed a grid of closeness ratings (on the next
slide) for the 21 unique pairs of departments.
133
Muther’s grid - format for displaying

Closeness Ratings Grid manager preferences for department
locations
Dept. A
5
Dept. B 2
6 6
Dept. C 1 2
4 3 4
Dept. D 4 1 3
4 5 6
Dept. E 5 1
2 2
Dept. F 3
3
Dept. G
134

Unassigned Rooms of Office Suite
135

Layout Satisfying All Pairings of
Departments with 1 Closeness Ratings
CR = 1
B D
B–D
B–F
C–G F C G
136

Trying to satisfying all pairings of departments with
6 closeness ratings, we see that Dept. C needs to be
moved.
B D
CR = 1 CR = 6
B–D A–D
B–F F G C B–C
C–G
137

Layout Satisfying All Pairings of Departments with 6
Closeness Ratings (note that we swapped Dept. D and
Dept. F)
CR = 1 B F A CR = 6
B–D A–D
B–F B–C
C–G D E G C
138
Wrap-Up: World-Class Practice

Strive for flexibility in layouts allowing company to change
production rates & to change to other product models quickly
through:

Multi-job training of workers

Sophisticated preventive-maintenance programs

Flexible machines

Empowered workers trained in problem solving

Layouts small and compact

Services follow the above practices plus incorporate customer
needs in design

Using more cellular manufacturing layouts, more automated
materials-handling equipment, more U-shaped production lines, &
more open areas with fewer walls & clear views of adjacent work-
station. 139

6-Facility Layout Planning

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6-Facility Layout Planning

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Unit 6 -

Facility layout means planning:

Layout decisions tend to be:

A materials-handling system is the entire network of

Arrangement of areas within a facility to:

 Group similar activities together according to process or function they

Women’s Cosmetics Children’s

Women’s Entry and Men’s

Two Categories of Software Tools

 Goal: minimize material handling costs

Current layout evaluation

Rank the Composite Movements

Rank the Composite Movements

The revised layout evaluation

(a) Initial block diagram (b) Final block diagram

 Arrange work centers so as to

Minimize cost = ∑ ∑ Xij Cij

where n = total number of work centers or

Arrange six departments in a factory to

Number of loads per week

Assembly (1) 50 100 0 0 20

Machine Shop (3) 20 0 100

Assembly Painting Machine Shop

Receiving Shipping Testing

Area 4 Area 5 Area 6

Interdepartmental Flow Graph

Cost = ∑ ∑ Xij Cij

The cost of moving one load between adjacent departments is estimated to be

Cost = $50 + $100x2 + $20x2

+ $30 + $50 + $10

+ $20x2 + $100 + $50

Revised Interdepartmental Flow Graph

Cost = ∑ ∑ Xij Cij

Cost = $50 + $100 + $20

Area 1 Area 2 Area 3

Painting Assembly Machine Shop

Receiving Shipping Testing

Area 4 Area 5 Area 6

Closeness Rating Meaning of Rating

Offices Locker Shipping

(b) Relationship diagram of revised layout

 Objective is to minimize the imbalance

Line Balancing Procedure

Performance Task Must Follow 480 available

Line Balancing Heuristics

Green Grass, Inc.

Work Time Immediate

Rebalancing a Production Line

More-Complex Issues to be Resolved

Cell Formation Procedure

 Out-and-back selection pattern

Figure 10.10 Storage area

Example 10.3 Storage area

Trips to and Area Needed

Example 10.3 Storage area

Trips to and Area Needed

Example 10.3 Storage area

Trips to and Area Needed

Example 10.3 Storage area

Trips to and Area Needed

Example 10.3 Storage area

Trips to and Area Needed

Trips to and Area Needed

Trips to and Area Needed