BITS Pilani

Pilani|Dubai|Goa|Hyderabad

Capacity and Facilities Planning

1
Strategic Importance of Layout
Decisions

The objective of layout strategy is to

develop a cost-effective layout that
will meet a firm’s competitive needs
Layout Design Considerations

 Higher utilization of space, equipment, and

people
 Improved flow of information, materials, or
people
 Improved employee morale and safer
working conditions
 Improved customer/client interaction
 Flexibility
Good Layouts Consider

1. Material handling equipment

2. Capacity and space requirements
3. Environment and aesthetics
4. Flows of information
5. Cost of moving between various
work areas
Types of Layout

1. Office layout
2. Retail layout
3. Warehouse layout
4. Fixed-position layout
5. Process-oriented layout
6. Work-cell layout
7. Product-oriented layout
Office Layout
1.Cubicle Office Layout
2.Open Office Layout
3.Co-working Office Layout
4.Team-Cluster Office Layout
5.Hybrid Office Layout

6
Process-Oriented Layout
 Like machines and equipment are
grouped together
 Flexible and capable of handling a
wide variety of products or services
 Scheduling can be difficult and setup,
material handling, and labor costs
can be high

BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956

Process-Oriented Layout

Patient A - broken leg

ER
triage Emergency room admissions
room
Patient B - erratic heart
Surgery pacemaker

Laboratories

Radiology ER Beds Pharmacy Billing/exit

Figure 9.3
BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
Process Layout in Manufacturing

BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956

Process-Oriented Layout
 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

BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956

Repetitive and Product-Oriented Layout
Organized around products or families of
similar high-volume, low-variety products
1. Volume is adequate for high equipment
utilization
2. Product demand is stable enough to justify high
investment in specialized equipment
3. Product is standardized or approaching a phase
of life cycle that justifies investment
4. Supplies of raw materials and components are
adequate and of uniform quality

BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956

Product-Oriented Layouts
 Fabrication line
 Builds components on a series of machines
 Machine-paced
 Require mechanical or engineering changes to
balance
 Assembly line
 Puts fabricated parts together at a series of
workstations
 Paced by work tasks
 Balanced by moving tasks

Both types of lines must be balanced so that the time to perform the
work at each station is the same

BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956

Product-Oriented Layouts
Advantages
1. Low variable cost per unit
2. Low material handling costs
3. Reduced work-in-process inventories
4. Easier training and supervision
5. Rapid throughput

Disadvantages
1. High volume is required
2. Work stoppage at any point ties up the whole
operation
3. Lack of flexibility in product or production rates

BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956

McDonald’s Assembly Line

Figure 9.12

BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956

Product Layout

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FIXED-POSITION LAYOUTS

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Process-Oriented Layout

 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
Process-Oriented Layout
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
Process Layout Example
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
 Process Layout Example
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)

Figure 9.4
 Process Layout Example
Area 1 Area 2 Area 3

Assembly Painting Machine Shop

Department Department Department
(1) (2) (3)

40’

Receiving Shipping Testing

Department Department Department
(4) (5) (6)

Area 4 Area 5 Area 6

Figure 9.5
60’
Process Layout Example
Interdepartmental Flow Graph
100

50 30
1 2 3
20 20
10
50 100

4 5 6
50
Figure 9.6
Process Layout Example
n n

Cost = ∑ ∑ Xij Cij

i=1 j=1

Cost = $50 + $200 + $40

(1 and 2) (1 and 3) (1 and 6)
+ $30 + $50 + $10
(2 and 3) (2 and 4) (2 and 5)
+ $40 + $100 + $50
(3 and 4) (3 and 6) (4 and 5)

= $570
Process Layout Example
Revised Interdepartmental Flow Graph
30

50 100
2 1 3

10
50 20 50 100

50
4 5 6

Figure 9.7
Process Layout Example
n n

Cost = ∑ ∑ Xij Cij

i=1 j=1

Cost = $50 + $100 + $20

(1 and 2) (1 and 3) (1 and 6)
+ $60 + $50 + $10
(2 and 3) (2 and 4) (2 and 5)
+ $40 + $100 + $50
(3 and 4) (3 and 6) (4 and 5)

= $480
 Process Layout Example
Area 1 Area 2 Area 3

Painting Assembly Machine Shop

Department Department Department
(2) (1) (3)

40’

Receiving Shipping Testing

Department Department Department
(4) (5) (6)

Area 4 Area 5 Area 6

Figure 9.8
60’
DESIGNING PROCESS LAYOUTS
Barko, Inc. makes bark scalpers, processing equipment that strips
the bark off trees and turns it into nuggets or mulch for gardens. The
facility that makes bark scalpers is a small-job shop that employs 50
workers and is arranged into five departments: (1) bar stock cutting,
(2) sheet metal, (3) machining, (4) painting, and (5) assembly. The
average number of loads transported between the five departments
per month is given in the accompanying load summary chart. The
current layout of the facility is shown schematically on the 2 x 3 grid.
Notice that there is quite a bit of flexibility in the facility, as indicated
by the six possible locations (i.e., intersections) available for five
departments. In addition, the forklift used in the facility is very
flexible, allowing horizontal, vertical, and diagonal movement of
material.
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35
Assembly-Line Balancing

 Objective is to minimize the imbalance

between machines or personnel while
meeting required output
 Starts with the precedence relationships
1. Determine cycle time
2. Calculate theoretical
minimum number of
workstations
3. Balance the line by
assigning specific
tasks to workstations

BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956

Cycle time and Minimum WS

Production time
available per day
Cycle time = Units required per day

n
Minimum ∑ Time for task i
number of = i=1
workstations Cycle time

37

BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956

Line Balancing Heurestics
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 Choose the available task with the

tasks least number of following tasks

38

BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956

Example Performance Task Must Follow
Time Task Listed
Task (minutes) Below
A 10 —
B 11 A
C 5 B
D 4 B
E 12 A
F 3 C, D
G 7 F
H 11 E
I 3 G, H

There are 480 productive minutes of work available per

day. The production schedule requires that 40 units can
be completed as output from the assembly line each
day. It now wants to group the tasks into workstations.
Wing Component Example
Performance Task Must Follow
Time Task Listed
Task (minutes) Below
A 10 —
B 11 A This means that
C 5 B tasks B and E
cannot be done
D 4 B until task A has
E 12 A been completed
F 3 C, D
G 7 F
H 11 E
I 3 G, H
Total time 66

BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956

Wing Component Example

Performance Task Must Follow

Time Task Listed
Task (minutes) Below
A 10 —
B 11 A
C 5 B
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 D I
12 11
E H

Figure 9.13
BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
Wing Component Example

Performance Task Must Follow 480 available

Time Task Listed mins per day
Task (minutes) Below 40 units required
A 10 —
B 11 A Production time
C 5 B available per day
D 4 Cycle
B time = Units required per day
E 12 A = 480 / 40
F 3 C, D 5
= 12 minutes per unit
G 7 F 10 11
C
3 7
H 11 E n
Minimum A ∑ TimeB for taskFi G
I 3 G, H 4
number of = i = 1 3
Total time 66 workstations Cycle time D
12 11 I
= 66 / 12
E H
= 5.5 or 6 stations
Figure 9.13
BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
 Line-Balancing Heuristics
1. Longest task time Choose the available480 task
available
Performance Task Must Follow
with the longest task time
Time Task Listed mins per day
Task2. Most
(minutes)
following tasks Below
Choose the available40 task
units required
A 10 —with the largestCycle
number
timeof= 12 mins
following tasks
B 11 A Minimum
C 3. Ranked5 positional BChoose the available
workstations = 5.5 or 6
task for
D weight4 Bwhich the sum of following
E 12 Atask times is the longest
F 3 C, D 5

G 4. Shortest7 task time FChoose

with the
the available
10 shortest
11
C task
task time
3 7
H 11 E
A B F G
I 5. Least number
3 of G,Choose
H the available
4 task 3
following
Total time 66 tasks with the least number
D
of
following tasks12 11 I
E H
Table 9.4
Figure 9.13
BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
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
Station
workstations = 5.5 or 6
5
C 52 B
D 4 C B
E 10 11
12 A 3 7
F A B3 C, D F G
4 3
G 7 F
D E Station 3
H 11 I
I 3 12 G, H 11
Station 6
Total time 66
Station
1 E H
Station Station
4 5 Figure 9.14

BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956

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
G 7 F ∑ Task times
Efficiency =
H (Actual
11 number ofEworkstations) x (Largest cycle time)
I 3 G, H
= 66 minutes / (6 stations) x (12 minutes)
Total time 66
= 91.7%

BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956

Example: assembly line balancing