Facility Layout

Chapter 1
Introduction to Facilities Planning.

Tran Van Ly
Industrial Engineering and Management
International
23/09/27 University 1
Email: tvly@hcmiu.edu.vn
Facilities Planning, 4th Edition
James A. Tompkins, Tompkins Associates, Inc.

Overview
Tompkins/White/Bozer/Tanchoco is the leading
facilities planning book on the market nowadays,
includes more discussions on economics, the supply
chain, and ports of entry.
Thousands of engineering students and
practitioners have used the book to prepare them to
design new facilities and expand or renovate existing
facilities.
The book combines applied aspects with
proven quantitative methodologies. It carries the
reader through the entire process of planning
facilities, regardless of the application settings for the
facilities.
 Chapter 1 – Introduction

Lecture Outline
1.Facilities Planning Defined.
2.Significance of Facilities Planning.
3.Objectives of Facilities Planning.
4.Facilities Planning Process.
5.Strategic Facilities Planning.
6.Developing Facilities Planning Strategies.
7.Examples of Inadequate Planning.
8.Summary.
 I. Facilities planning defined

• The facilities planning is to help organization

achieve supply chain (SC) excellence.
• SC excellence process has 6 steps:
 business as usual
 link excellence
 visibility
 collaboration
 synthesis
 velocity
• Characteristics of facilities in the SC:
 flexibility
 modularity
 upgradability
 adaptability
 selective operability
 environmental and energy friendliness

Fig 1_1: Continuous improvement facilities planning cycle

Towards a definition
 Facilities planning determines how an activity's
tangible fixed assets best support achieving the
activity's objective.
 For a manufacturing firm, facilities planning involves
the determination of how the manufacturing facility
best supports production.
 For an airport, facilities planning involves determining
how the airport facility is to support the passenger-
airplane interface.
 For a hospital: How the hospital facility supports
providing medical care to patients.
• The facilities planning is
divide into its location and
its design components
(Figure 1-2).

Fig 1_2: Facilities planning as part of SC excellence

• Figure 1-3 describes a
number of different types
of facilities.
It is because of its breadth
of application that we
employ a unified approach
to facilities planning.

Fig1_3: Facilities planning for some specific types of

facilities
Facilities Location

 Determining how the location of a facility

supports meeting the facility's objective
 Its placement with respect to customer,
suppliers, and other facilities with which it
interfaces.
 Its orientation on a specific plot of land.
Facilities Design

The determination of how the design

components of a facility support
achieving the facility's objectives
 Facility Systems
 Structural and enclosure systems
 Lighting, electrical, communication systems
 Life safety systems
 Sanitation systems

 For a plant:
• Power, light, gas, heat, ventilation, air conditioning,
water, sewage needs.
Facilities Layout

 Equipment
 Machinery
 Furnishings

 For a manufacturing facility:

 Production areas
 Support areas
 Personnel areas within the building
Handling System

Mechanisms needed to satisfy the

required facility interactions.

For a Manufacturing Facility

Materials, personnel, information, and
equipment-handling systems required to
support production.
 II. Significance of facilities planning
1. Since 1955, approximately 8% of the gross national product (GNP) is
spent in new facilities in the U.S. :
Table 1_1: Percentage of the Gross National Product by industry grouping typically expended on
new facilities between 1955 and today in the United States.

Industry GNP %
Manufacturing 3.2
Public Utilities 1.6
Commercial 1.5
Communication 1.0
••• •••
Total 8.0
2. It is estimated that 20 to 50 % of operating costs within manufacturing
are attributed to material handling. It is generally agreed that effective
facilities planning can reduce material handling costs by 10 to 30 %.
Motivations

 Reindustrialization
 Employee health and safety

 Energy conservation

 Community rules and regulations

 Noise, air pollution, waste disposal
 Pilferage/security
III. Objectives of facilities planning
 Customer satisfaction
 Return on assets (ROA)
 Maximize inventory turns
 Minimize obsolete inventory
 Maximize employee participation
 Maximize continuous improvement
 Speed for quick customer response
 Costs and supply chain profitability
 Supply chain through partnerships and communication
 Organization’s vision
 Utilizations of people, equipment, space, energy.
 Return on investment (ROI) on all capital expenditures
 Adaptability and ease of maintenance
 Employee safety and job satisfaction
IV. Facilities planning process

Fig 1_4: Winning facilities planning process

 Table 1_2: Detail explanation of
the winning facilities planning process
Facilities Planning Process

1. DEFINE THE PROBLEM

• The objective of the facility
• Products/Volumes/Role in the SC
• The primary and support activities
• Operations, equipment, personnel,
material flows
• Maintenance
Facilities Planning Process

2. ANALYZE THE PROBLEM

• The interrelationships among all
activities
(Qualitative and quantitative)
Facilities Planning Process

3. DETERMINE THE SPACE

REQUIREMENTS FOR ALL
ACTIVITIES
 For all equipment, material, and
personnel
• Alternative designs
• Alternative facilities plans
Facilities Planning Process

4. EVALUATE THE ALTERNATIVES

5. SELECT THE PREFERRED
DESIGN
6. IMPLEMENT THE DESIGN
• Implement the plan
• Maintain and adapt the plan
• Redefine the objective of the facility
 Model of Success
• Experience has shown
that in order for the the
facilities plan to be
successful, a clear
understanding is needed
of not only the vision but
also the mission, the
requirements of success,
the guiding principles,
and the evidence of
success.

Fig 1_5: The model of success “winning circle”

Table 1_3: Comparison of traditional engineering design process and the winning facilities
planning process
Fig 1_6: The facilities planning process.
(a)General and manufacturing facilities.
(b) Hospital facilities.
V. Strategic Facilities Planning

Fig 1_7: Cost of design changes during a project.

Fig 1_8: Synergistic benefit of winning manufacturing on an integrated
manufacturing-marketing team.
Strategic Facilities Planning Issues
1. Number, location, and sizes of warehouses and/or distribution
centers.
2. Centralized versus decentralized storage supplies, raw materials,
work-in-process, and finished goods for single- and multi-building
sites, as well as single- and multi-site companies.
3. Acquisition of existing facilities versus design of model factories and
distribution centers of the future.
4. Flexibility required because of market and technological
uncertainties.
5. Interface between storage and manufacturing.
6. Level of vertical integration, including "subcontract versus
manufacture" decisions.
7. Control systems, including materials control and equipment control.
8. Movement of materials between buildings, between sites.
9. Changes in customers' and suppliers' technology as well as firm's
own manufacturing technology and materials handling, storage, and
control technology.
10. Design-to-cost goals for facilities.
 VI. Developing facilities planning strategies

• The facilities
planning process
can be improved
in a number of
ways.

Fig 1_9: Three dimensions for improvement

 VII. Examples of inadequate planning

•Please read the textbook (page 24-26).

VIII. Summary
Facilities planning:
• Determines how an activity’s tangible fixed assets
should contribute to meeting the activity’s objectives
• Consists of facilities location and facilities design
• Is part art and part science
• Can be approached using the engineering design
process
• Is a continuous process and should be viewed from
a life-cycle perspective
• Represents one of the most significant
opportunities for cost reduction and productivity
improvement