Chap. 8. Facility and Work Design

COLLIER/EVANS
MindTap for Operations and Supply Chain Management
8
Facility and Work
Design
Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a
publicly accessible website, in whole or in part.
LEARNING OUTCOMES
1 Describe four layout patterns and when they

should be used
2 Explain how to design product layouts using
assembly-line balancing
3 Explain the concepts of process layout
4 Describe issues related to workplace design
5 Describe the human issues related to workplace
design
LO 8-1
Facility Layout
• Specific arrangement of physical facilities

• Studies are necessary when:
• New facility is constructed
• Significant change in demand or throughput
volume is observed
• New good or service is introduced to the
customer benefit package
• Different processes, equipment, and/or
technology are installed
Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part. CH8 3
LO 8-1
Objectives of Layout Studies, Part 1
• Minimize delays in materials

handling and customer movement
• Maintain flexibility
• Use labor and space effectively
• Promote high employee morale
and customer satisfaction
LO 8-1
Objectives of Layout Studies, Part 2
• Minimize energy use and

environmental impact
• Provide for good housekeeping and
maintenance
• Enhance sales as appropriate in
manufacturing and service facilities
Layout Patterns in Configuring LO 8-1
Facilities
LO 8-1
Product Layout, Part 1
• Arrangement based on the

sequence operations performed
during the manufacture of goods
or delivery of services
• Supports a smooth and logical flow
of goods or services from one
process stage to the next
LO 8-1
Product Layout, Part 2
LO 8-1
Process Layout
• Functional grouping of equipment or

activities that do similar work
• Advantages
• Entire system is not affected if a piece of
equipment fails
• Disadvantages
• High material-handling costs
• Complicated planning and control systems
• Higher worker skill requirements
LO 8-1
Cellular Layout
• Based on self-contained groups of

equipment (cells) needed for
producing a particular set of goods or
services
• Facilitates the processing of families of
parts with similar processing
requirements
• Group technology - Procedure of
classifying parts into families
LO 8-1
Advantages of Cellular Layout
• Reduced materials-handling
requirements
• Quicker response to quality problems
• Efficient use of floor space
• Greater worker responsibility that
leads to an increase in morale and
satisfaction
LO 8-1
Fixed-Position Layout
• Consolidates the necessary

resources to manufacture a good
or deliver a service in one physical
location
• Work remains stationary
• High level of planning and control
required
LO 8-1
Exhibit 8.4 Comparison of Basic Layout Patterns
Fixed-Position
Characteristic Product Layout Process Layout Cellular Layout
Layout
Demand volume High Low Moderate Very Low
Equipment High Low High Moderate

utilization
Automation High Moderate High Moderate
potential
Setup/changeover High Moderate Low High
requirements
Flexibility Low High Moderate Moderate
Type of Highly General purpose Moderate Moderate

equipment specialized specialization specialization
Facility Layout in Service LO 8-1
Organizations, Part 1
• Based on product, process, cellular,

and fixed-position layouts to
organize different types of work
• Design of service facilities requires
the integration of layout with the
servicescape and process design to
support service encounters
Facility Layout in Service LO 8-1
Organizations, Part 2
• Determined by the degree of

specialization versus flexibility of
services
• Organizations that need the ability to
provide a wide variety of services to
customers use process layouts
• Organizations that provide highly
standardized services tend to use product
layouts
LO 8-2
Flow Shop Product Layout Design
• Consists of a fixed sequence of workstations

separated by buffers (in-process storage)
• Sources of delay
• Flow-blocking: Occurs when a work center
completes a unit but cannot release it because
the in-process storage at the next stage is full
• Lack-of-work (starving): Occurs when one stage
completes work and no units from the previous
stage are awaiting processing
Exhibit 8.6 Typical Manufacturing Workstation
Layout
LO 8-2
Assembly Line
• Type of product layout that

combines the components of a
good or service that has been
created previously
• Helps lower costs and makes goods
and services affordable to mass
markets
LO 8-2
Assembly-Line Balancing
• Technique that helps distribute the same

amount of tasks among workstations
• Involves identifying:
• Set of tasks to be performed and time required
to perform each task
• Sequence in which the tasks must be performed
• Desired output rate or forecast of demand for
the assembly line
LO 8-2
Cycle Time (CT), Part 1
• Interval between successive outputs coming

off the assembly line
CT = A/R
• Where
- A - Available time to produce output
- R - Demand forecast or required output
• Maximum operation time ≤ CT ≤ sum of
operation times
LO 8-2
Cycle Time (CT), Part 2
• Balance delay = 1 − Assembly-line efficiency

LO 8-2
Line-Balancing Approaches, Part 1
• Use decision rules, or heuristics, to

assign tasks to workstations
• Decision rules are incorporated into
computerized algorithms and simulation
models for large line-balancing problems
• Depend on assigning the longest or
shortest task time to a workstation first
LO 8-2
Line-Balancing Approaches, Part 2
• Precedence network
- Helps visually determine the
feasibility of a workstation
assignment
- Helps ensure that certain
precedence restrictions are met in
the sequence of performing a task
LO 8-3
Designing Process Layouts
• Arranging departments or work

centers relative to each other
• Approaches
• Calculating the costs associated with
moving materials between work
centers
• Optimizing the total closeness rating
of a layout
LO 8-4
Effective Workplace Design
• Allows for maximum efficiency

and effectiveness to perform a
work task or activity
• Needs to facilitate service
management skills in high-
contact, front-office
environments
LO 8-4
Job Design, Part 1
• Involves determining:
• Specific job tasks and responsibilities
• Work environment
• Methods by which tasks will be
carried out to meet the goals of
operations and competitive priorities
LO 8-4
Job Design, Part 2
• Helps make jobs safe, satisfying, and

motivating
• Job enlargement: Horizontal expansion of
job duties to give a worker more variety
• Job enrichment: Vertical expansion of job
duties to give workers more responsibility
- Involves the use of teams, such as
natural work teams, virtual teams, and
self-managed teams (SMTs)
LO 8-4
Safety
• Function of the job, the person performing

the job, and the surrounding environment
• U.S. Occupational Safety and Health Act (OSHA)
was enacted in 1970 to ensure workplace safety
• Involves:
• Designing injury-proof working environments
• Educating employees about the proper use of
equipment and methods
LO 8-4
Ergonomics
• Takes into account the physical capabilities

of people of while designing jobs to
improve the productivity and safety
• Helps:
• Reduce fatigue, cost of training, human
errors, cost of doing a job, and energy
requirements
• Increase accuracy, speed, reliability, and
flexibility
LO 8-5
Workforce Ethics
• Involves improving working the

conditions of employees
• Ethical Trading Initiative (ETI)
• Alliance of companies, trade unions,
and nongovernmental organizations
promoting respect for workers’ rights
globally
KEY TERMS
• Facility layout • Assembly line

• Product layout • Assembly-line balancing
• Process layout • Cycle time
• Cellular layout • Job
• Fixed-position layout
• Job design
• Flow-blocking delay
• Job enlargement
• Lack-of-work delay (starving)
• Job enrichment
• Ergonomics
SUMMARY
• Product, process, cellular, and fixed-position are the

different types of layout patterns
• Assembly-line balancing helps distribute the same amount
of tasks among workstations
• Designing process layouts involves arranging departments
to reduce costs
• To improve productivity, safety, ergonomics, and ethics
need to be considered while designing a workplace

Chap. 8. Facility and Work Design

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Chap. 8. Facility and Work Design

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COLLIER/EVANS

MindTap for Operations and Supply Chain Management

1 Describe four layout patterns and when they

• Specific arrangement of physical facilities

• Minimize delays in materials

• Minimize energy use and

• Arrangement based on the

• Functional grouping of equipment or

• Based on self-contained groups of

• Consolidates the necessary

Exhibit 8.4 Comparison of Basic Layout Patterns

Equipment High Low High Moderate

Flexibility Low High Moderate Moderate

Type of Highly General purpose Moderate Moderate

• Based on product, process, cellular,

• Determined by the degree of

• Consists of a fixed sequence of workstations

• Type of product layout that

• Technique that helps distribute the same

• Interval between successive outputs coming

• Balance delay = 1 − Assembly-line efficiency

• Use decision rules, or heuristics, to

• Arranging departments or work

• Allows for maximum efficiency

• Helps make jobs safe, satisfying, and

• Function of the job, the person performing

• Takes into account the physical capabilities

• Involves improving working the

• Facility layout • Assembly line

• Product, process, cellular, and fixed-position are the

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