Layout Strategy

Objectives of the Layout Strategy
 product

an economical layout which will meet the requirements of:
design and volume (product strategy)  process equipment and capacity (process strategy)  quality of work life (human resource strategy)  building and site constraints (location strategy)

What is Facility Layout
 Location

or arrangement of everything within & around buildings  Objectives are to maximize
 Customer

satisfaction  Utilization of space, equipment, & people  Efficient flow of information, material, & people  Employee morale & safety

Strategic Importance of Layout Proper layout enables:  Higher utilization of space. equipment.and people  Improved flow of information. or people  Improved employee morale and safer working conditions  Improved customer/client interaction  Flexibility . materials.

Requirements of a Good Layout ● An understanding of capacity and 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 .

Constraints on Layout Objectives  Product design & volume  Process equipment & capacity  Quality of work life  Building and site .

high-variety production (“job shop”. intermittent production)  Process-oriented   Office  layout positions workers. and spaces/offices to provide for movement of information .Six Layout Strategies  Fixed-position  layout layout large bulky projects such as ships and buildings deals with low-volume. their equipment.

Six Layout Strategies .continued Retail/service layout  allocates shelf space and responds to customer behavior addresses trade-offs between space and material handling seeks the best personnel and machine use in repetitive or continuous production Warehouse layout  Product-oriented layout  .

Fixed-Position Layout  Design is for stationary project  Workers and equipment come to site  Complicating factors  Limited space at site  Changing material needs .

different materials are needed – therefore.Factors Complicating a Fixed Position Layout  There is limited space at virtually all sites  At different stages in the construction process. different items become critical as the project develops  The volume of materials needed is dynamic .

.g. All x-ray machines in same area  Used with process-focused processes .Process-Oriented Layout  Design places departments with large flows of material or people together  Department areas having similar processes located in close proximity  e.

Admissions Patient B erratic pacemaker Hallway Ra di ol og y E.Triag e room er y Su rg Patient A . beds Pharmacy Billing/ exit .R.Emergency Room Layout E.R.R.broken leg E.

try to improve the initial layout Prepare a detailed plan that evaluates factors in addition to transportation cost .Steps in Developing a Process-Oriented Layout 1 2 3 4 5 6 Construct a “from-to matrix” Determine space requirements for each department Develop an initial schematic diagram Determine the cost of this layout By trial-and-error (or more sophisticated means).

Cost of Process-Oriented Layout Minimize cost = ∑∑ X ij C ij i =1 j=1 n n where n = total number of work centers or department s i. j = individual department s X ij = number of loads moved from department i to department j C ij = cost to move a load between department i and department j .

Interdepartmental Flow of Parts 1 1 2 3 4 5 6 2 3 4 5 6 50 100 30 0 50 20 0 10 0 50 20 0 100 0 0 .

Number of Weekly Loads 10 0 1 50 2 30 20 3 50 4 10 50 5 20 100 6 .

Possible Layout 1
Room 1 Room 2 Room 3 Assembly Painting Machine Shop DepartmentDepartmentDepartment (1) (2) (3) Receiving Shipping Testing 40’ DepartmentDepartmentDepartment (4) (5) (6) Room 4 Room 6 6 0’ Room 5

Number of Weekly Loads



10 0









Possible Layout 2
Room 1 Room 2 Room 3 Painting Assembly Machine Shop DepartmentDepartmentDepartment (2) (1) (3) Receiving Shipping Testing 40’ DepartmentDepartmentDepartment (4) (5) (6) Room 4 Room 6 6 0’ Room 5

expert system .Computer Programs for Layout CRAFT SPACECRAFT CRAFT 3-D MULTIPLE CORELAP ALDEP COFAD FADES .

Cost Reduction . Cost Reduction 70.390 Est.100 Est.00 Iteration 0 Total cost: 14.Out-Patient Hospital Example CRAFT Legend: A = xray/MRI rooms B= laboratories 1 2 3 4 5 1 A A6A A B B 1 2 3 4 5 6 1D D D D B B 2A A A A B B 3D D D D D D 2D D D D B B 3D D D E E E 4C C D E E F 5A A A A A F 6A A A F F F 4C C D D D D C = admissions 5F F F F F D D = exam 6E E E E E D rooms E = operating rooms F = recovery rooms Total cost: 20. Iteration 3 .

Work Cells  Special case of product-oriented layout .in what is ordinarily a process-oriented facility  Consists of different machines brought together to make a product  Temporary arrangement only  Example: Assembly line set up to produce 3000 identical parts in a job shop .Cellular Layout .

Improving Layouts by Moving to the Work Cell Concept .

Work Cells .Some Advantages  Reduced work-in-process inventory  Less floor space required  Reduced raw material and finished goods inventories required  Reduced direct labor costs  Heightened sense of employee participation  Increased utilization of equipment machinery  Reduced investment in machinery and equipment .

Work Cell Advantages Inventory Floor space Direct labor costs Equipment utilization Employee participation Quality .

Work Cell Floor Plan Saws Drills Office Tool Room Work Cell .

Requirements for Cellular Production Identification of families of products group technology codes High level of training and flexibility on the part of the employees Either staff support or flexible. imaginative employees to establish the work cells initially Test (poka-yoke) at each station in the cell .

A temporary assembly-line-oriented arrangement of machines and personnel in what is ordinarily a process-oriented facility Example: job shop with rearranged machinery and personnel to produce 30 unique control panels Focused Work A permanent assembly-line-oriented arrangement of machines and personnel Center in what is ordinarily a process-oriented facility Example: manufacturing of pipe brackets at a shipyard Focused FactoryA permanent facility to produce a product or component in a product-oriented facility Example: a plant to produce window mechanisms for automobiles Work Cell .Work Cells. etc.

Number of Product Lines and Operating Performance 15 10 More focused H(2) G(1) K(2) plants s s s s s I(2) J(1) s 5 s E(4) Less focused plants s A(6) s D(6) s F(6) 0 C(5) B(5) s -5 100 Sales ($M) .

Office Layout  Design positions people. is by process  Relationship  Examples  Insurance chart used company  Software company . equipment. & offices for maximum information flow  Arranged by process or product  Example: Payroll dept.

Brand X .Office Layout Floor Plan Finance Manager Accountin g Fin. Acct.

Retail/Service Layout  Design maximizes product exposure to customers  Decision variables  Store flow pattern  Allocation of (shelf) space to products  Types  Grid design  Free-flow design .

Retail Layouts .Rules of Thumb      Locate high-draw items around the periphery of the store Use prominent locations such as the first or last aisle for high-impulse and high margin items Remove crossover aisles that allow customers the opportunity to move between aisles Distribute what are known in the trade as “power items” (items that may dominate a shopping trip) to both sides of an aisle. and disperse them to increase the viewing of other items Use end aisle locations because they have a very high exposure rate .

Retail/Service Layout – Grid Design Grocery Store Milk Brea d Meat Produ Frozen ce Foods Office Cart s Check out .

Counte r Display Table .Retail/Service Layout Free-Flow Design Apparel Store Feature Trans.

SUAVE VO-5 VO-5 VO-5 .Retail Store Shelf Space Planogram  Computerized tool for shelf-space management  Generated from store’s scanner data on sales  Often supplied by manufacturer  Example: PERT PERT PERT PERT PERT 5 facings SUAVE P&G VO-5 VO-5 2 ft.

Spatial layout and functionality . Symbols. sound. and temperature.background characteristics such as lighting. smell.A Good Service Layout (Servicescape) Considers Ambient conditions . and Artifacts characteristics of building design that carry social significance .which involve customer circulation path planning Signs.

Warehouse Layout  Design balances space (cube) utilization & handling cost  Similar to process layout  Items moved between dock & various storage areas layout depends on Variety  Optimum of items stored Number of items picked .

Warehouse Layout Floor Plan Conveyor Truck Zones Order Picker .

Cross Docking  Transferring goods   from incoming trucks at receiving docks to outgoing trucks at shipping docks Incoming Outgoing   Avoids placing goods into storage Requires suppliers provide effective addressing (bar codes) and packaging that provides for rapid transhipment © 1984-1994 T/Maker Co. . © 1995 Corel Corp.

Random Stocking Systems Often: Maintain a list of “open” locations Maintain accurate records of existing inventory and its locations Sequence items on orders to minimize travel time required to pick orders Combine orders to reduce picking time Assign certain items or classes of items. to particular warehouse areas so that distance traveled is minimized . such as high usage items.

assembly line .Product-Oriented Layout  Facility organized around product  Design minimizes line imbalance  Delay between work stations  Types: Fabrication line.

Product-Oriented Requirements  Standardized product  High production volume  Stable production quantities  Uniform quality of raw materials & components .

Product-Oriented Layout .Assumptions  Volume is adequate for high equipment utilization  Product demand is stable enough to justify high investment in specialized equipment  Product is standardized or approaching a phase of its life cycle that justifies investment in specialized equipment  Supplies of raw materials and components are adequate and of uniform quality to ensure they will work with specialized equipment .

Product-Oriented Layout Types Fabrication Line  Builds components  Uses series of machines  Repetitive process  Machine paced  Balanced by physical redesign      Assembly Line Assembles fabricated parts Uses workstations Repetitive process Paced by tasks Balanced by moving tasks .

Product Layout Advantages  Lower variable cost per unit  Lower material handling costs  Lower work-in-process inventories  Easier training & supervision  Rapid throughput .

Product Layout Disadvantages  Higher  capital investment Special equipment  Any work stoppage stops whole process  Lack of flexibility  Volume  Product .

An Assembly Line Layout .

Assembly Line Types .

Repetitive Layout Work 1 Statio n 3 4 Work Station Work Station Office 2 5 Belt Conveyor Note: 5 tasks or operations. 3 work stations .

Assembly Line Balancing  Analysis of production lines  Nearly equally divides work between workstations while meeting required output  Objectives  Maximize efficiency  Minimize number of work stations .

Assembly Line Balancing The General Procedure  Determine cycle time by taking the demand (or production rate) per day and dividing it into the productive time available per day  Calculate the theoretical minimum number of work stations by dividing total task time by cycle time  Perform the line balance and assign specific assembly tasks to each work station .

3. 6. 5. 2. 7. 4. 8. Determine tasks (operations) Determine sequence Draw precedence diagram Estimate task times Calculate cycle time Calculate number of work stations Assign tasks Calculate efficiency .Assembly Line Balancing Steps 1.

Assembly Line Balancing Jargon  Task – an element of work on the product line  Workstation – a physical location where a particular set of tasks is performed  Product Line – much like a moving conveyor that passes a series of workstations in a uniform time interval:  Cycle Time – the time between successive units coming off the end of the line .

Assembly Line Balancing Equations Cycle time Minimu m number of work stations Efficiency Production time available = Demand per day = Σ Task times Cycle time Σ Task times (Actual * (Cycle time) number of work stations) = .

choose task with shortest operation time  Least number of following tasks .Heuristics for Assigning Tasks in Assembly Line Balancing  Longest task time .choose task where the sum of the times for each following task is longest  Shortest task time .choose task with largest number of following tasks  Ranked positional weight .choose task with fewest subsequent tasks .choose task with longest operation time  Most following tasks .

H Seconds 60 80 30 40 30 50 100 70 30 . G E.Line Balancing Example #1 Task A B C D E F G H I Predecessor A C B. D F D.

)  Assuming:  Demand of 160 units per day  Operating time of 8 hours per day  Compute  Cycle (using longest task time): time  Theoretical minimum number of workstations  Assignment of tasks to workstations  Efficiency of the line .Line Balancing Example #1 (cont.

D F D.Line Balancing Example #2 Task A B C D E F G H I Predecessor A C B. H Seconds 60 80 30 40 30 50 100 70 30 . G E.

Line Balancing Example #2 (cont.)  Assuming:  Demand is unknown  Operating time of 8 hours per day  Compute  Cycle (using most following tasks): time  Theoretical minimum number of workstations  Assignment of tasks to workstations  Efficiency of the line .

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