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OPERATIONS MANAGEMENT

Facility Layout: Manufacturing and Services

OVERVIEW
Introduction Manufacturing Facility Layouts Objectives (Significance), Factors & Principles Types of Manufacturing Facility Layouts Service Facility Layouts Wrap-Up: What World-Class Producers Do

INTRODUCTION
Planning the layout of machines and assembly lines have always been given priority in our operations International competition and technological advancements, though, have led to significant changes in the planning process We use computers to create productive layout and design alternatives. For example, computer software packages are used to help determine total cost relationships, the material departments most effective combination of move and stores and to reduce the cost of in-process materials

CONCEPT

Facility layout means planning:


for

the location of all machines, utilities, employee workstations, customer service areas, material storage areas, restrooms, lunchrooms, internal walls, offices, and computer rooms for the flow patterns of materials and people around, into, and within buildings

LOCATE ALL AREAS IN AND AROUND BUILDINGS Equipment Work stations Material storage Rest/break areas Utilities Eating areas Offices

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

CHARACTERISTICS OF THE FACILITY LAYOUT DECISION

Layout decisions tend to be:


Infrequent

to implement Studied and evaluated extensively Long-term commitments


Expensive

OBJECTIVES (SIGNIFICANCE) OF THE LAY OUT STRATEGY


Reduce material handling costs Reduce congestion that impedes the movement of people or material Reduce hazards to personnel Avoids employee complaints & Increase employee morale Reduce accidents Utilize available space efficiently & effectively

OBJECTIVES OF THE LAY OUT STRATEGY

Provide ease of supervision Provide for employee safety & health Allow ease of maintenance Allow high machine utilization Improve productivity of workers

REQUIREMENTS OF A GOOD LAYOUT

A good layout requires:


an understanding of capacity & space requirements selection of appropriate material handling equipment decisions regarding environment and aesthetics identification and understanding of the requirements for information flow identification of the cost of moving between the various work areas

FACTORS INFLUENCING LAYOUT


Materials Product Worker Machinery Type of industry Location Managerial policies

PRINCIPLES OF LAYOUT
The Principle of minimum travel Principle of sequence Principle of usage Principle of compactness Principle of safety & satisfaction Principle of flexibility Principle of minimum investment

MANUFACTURING FACILITY LAYOUTS

BASIC LAYOUT FORMS/TYPES


Process or Functional or Job shop layout Product layout Cellular or Group Technology layout Fixed position or Static layout Hybrid ( Combination) layout

PROCESS (JOB SHOP) LAYOUTS

Involves grouping together of like-machines in 1 department Ex.: machines performing drilling operations are installed in drilling department., those performing milling operations are installed in milling dept. and so on

MANUFACTURING PROCESS LAYOUT


Lathe Department Milling Department Drilling Department

L L L L L

L L L L L

M M

M M

D D

D D

D D

D D

G G

G G
Grinding Department Receiving and Shipping

G G

P P
Painting Department

A
Assembly

BASIC ADVANTAGE

It is easier to handle breakdown of equipment by transferring work to another machine/station Minimize material handling costs Utilize space efficiently Utilize labor efficiently Facilitate communication and interaction between workers, workers and supervisors Provide a visual control of activities

BASIC DISADVANTAGE
This type of layout requires more floor space Production time is more as work-in-progress has to travel from place-to-place in search of machines

PRODUCT (ASSEMBLY LINE) LAYOUTS Operations are arranged in the sequence required to make the product It involves arrangement of machines in 1 line depending upon the sequence of operations. Materials are fed into the 1st machine & finished products come out of last machine

PRODUCT (ASSEMBLY LINE) LAYOUTS Ex.: sugarcane fed at 1 end of the mill and sugar coming out at other end. Operations and personnel are dedicated to producing one or a small number of products Product layout is followed in plants manufacturing standardized products in large scale

PRODUCT LAYOUT

IN

OUT

A U-Shaped Production Line U-

IN

4 5

Workers 6
OUT

10

BASIC ADVANTAGE

It requires less floor area per unit of production Work-in-progress is reduced Allows wide span of supervision Low material handling costs Routing and scheduling is automatic High labor and equipment utilization

BASIC DISADVANTAGE

Any breakdown of equipment along the production line can disrupt the whole system Workers may not be motivated to quality Hard to change volume Highly susceptible to breakdowns Capacity for quick repair a necessary expense

BASIC DIFFERENCE BETWEEN PRODUCT LAYOUT & PROCESS LAYOUT

When only 1 or few standardized products are to be produced, one will go for product layout while when many types or kinds of products are to be produced, 1 will go for process layout by grouping the machines based on production process For Customized products one would go for Product layout rather than Process Layout.

CELLULAR MANUFACTURING (CM) LAYOUT

Operations required to produce a particular family (group) of parts are arranged in the sequence required to make that family Machines are grouped into cells

Part Family W

Part Family X

Part Family Y

Part Family Z

Parts Families

DIFFERENCE BETWEEN PROCESS LAYOUT AND CELLULAR LAYOUT

Process layout
Process layout groups machines of same type together There are as many machines centers as there are types of machines The machines are interchangeable

Cell layout
Machine which are needed which are needed to produce each family of parts are grouped together and is called a cell Machine in a cell are dedicated to working only on certain parts. Machines are not interchangeable

Compaq---Staying loose in a Tense Tech Market

BREAKTHROUGH

STAYING LOOSE IN A TENSE TECH MARKET

Compaq has introduced notebook computers that has boasted the latest in design, speed and power The company has developed a system that enables it to respond nimbly to retailers and businesses rather than just supply them from inventory stockpiles The key to this approach is cell manufacturing which is being used alongwith traditional assembly line techniques for most compaq models Each cell has 3 people who work at a workstation, where computers are built, tested and shipped

STAYING LOOSE IN A TENSE TECH MARKET

One of the greatest advantages of cell manufacturing is that it allows an individual workstation to manufacture a different computer model each day, if thats what is needed And with 48 cells replacing 1 assembly line, its easier for compaq to produce the hundreds of different models it offers

STAYING LOOSE IN A TENSE TECH MARKET

Compaq has found that cell workstations increase employee output by 23% and product quality by 25% Despite these gains, cell manufacturing remains expensive because full set of tools have to be deployed at each workstation and cell workers must be better trained and paid then assembly-line workers For now, compaq is using a combination of assembly-line and cell manufacturing

STAYING LOOSE IN A TENSE TECH MARKET

The companys Presario computers were produced with traditional and less costly assembly-line methods in the first few months when the demand was exceptionally strong But when orders taper off, Compaq can switch over to cell manufacturing and gear up the assembly-line for its next generation of products

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 Ex .: Ship-building

BASIC ADVANTAGE
Investment on layout becomes very small The worker identifies himself with the product & takes pride when the work is completed The high cost & difficulty in transporting a bulky product are avoided

BASIC DISADVANTAGE

Mobile equipment may increase per-unit cost Scheduling activities becomes key challenge Arrivals of material and equipment are critical Storage space can be a problem Coordination requires narrow management span Accounting, purchasing, and inventory control functions are very complex

HYBRID ( COMBINATION ) 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. Ex.: Soap manufacturing plant. Machines producing soap are arranged on product layout basis while production of ancillary services viz. glycerine, water treatment plant, heating are arranged on process layout basis

SERVICE PROCESS LAYOUT EX.: RELIANCE MART/ ANY STORE

Womens Lingerie Womens Dresses Womens Sportswear

Shoes

HouseHousewares Childrens Department Mens Department

Cosmetics & Jewelry Entry & Seasonal

STEPS INVOLVED IN LAYOUT PLANNING & DESIGN


Product Analysis Process Indirect Labor Expected Volume of Prosuction

Equipment Direct Labor Plant Layout Building Design

Facilities

LAYOUT TOOLS & TECHNIQUES

Templates Sequence analysis Line balancing

TEMPLATE

Templates are patterns which consist of a thin plate of wood or metal, which serves as guide in mechanical work. A plant layout template is a scaled presentation of a physical object in a layout. The templates are fixed to plan drawing and are moved around the drawing to explore the various layout possibilities until a layout, which eliminates unnecessary handling and backtracking of materials and offers flexibility to admit revisions at the least cost, emerges. The template method is useful in developing an existing department or when the configuration of building is already established through other techniques.

SEQUENCE ANALYSIS

Operation sequence analysis helps to arrange department graphically analyzing layout problem.

LINE BALANCING CONCEPT

Is a technique that nearly equally divides the work to be done among the workers and minimises the number of employees required to complete a project

CRITERIA FOR SELECTION & DESIGN OF LAYOUTS

Material handling cost

These costs are minimized using mechanized material handling equipments such as belts, cranes and conveyors to automate product flows and keeping the flow distances as short as possible by locating the work centers for sequential processing activities in adjacent areas. Good layout provides workers with a satisfying job and permit them to work effectively at the highest skill level for which they are being paid. Good communication systems and well placed supporting activity locations are critical to the success of any facility.

Worker effectiveness

METHODS FOR SELECTING BEST LAYOUT

Travel chart method Load-distance analysis method Systematic layout planning

Quaker Oats and Xerox use Computers for Office Layout

OPERATIONS MANAGEMENT HIGHLIGHT

QUAKER OATS AND XEROX USE COMPUTERS FOR OFFICE LAYOUT

Do offices have any kind of layout? Do office-space planners use graphic, schematic and load-distance models? The answer is Yes, and the characteristics of office-layout planning make it easier than factory-layout planning for the beginning operations management student to understand Office-space planners have an impressive assortment of computer-aided design (CAD) software and hardware at their disposal The Quaker-Oats Company in Chicago (US) used a CAD system to design its new home office. The layout featured sunny, flexible spaces

QUAKER OATS AND XEROX USE COMPUTERS FOR OFFICE LAYOUT

To plan its office space, Xerox-Canada chose to use a firm specializing in office design for its offices in Edmonton, Alberta Xerox specified that all work centers be at right angles for maximum efficiency, that window glare be eliminated and that the environment suggest to customers a soft-sell approach A great deal of attention was given to detail, confort and aesthetics in this office design Designing an office, thus goes far beyond allocating space and selecting furniture. Noise-control, aesthetics, information-flow and networked computer work-stations have created complex challenges for todays office-space planners

WRAP-UP: WORLD-CLASS PRACTICE

Strive for flexibility in layouts


Multi-job

training of workers Sophisticated preventive-maintenance programs Flexible machines Empowered workers trained in problem solving Layouts small and compact