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Chapter1
Facilitiesn a
ChangingEnvironment
"Thedogmasof our quiet past are nadequateo the
stormypresent. s oursituation s new,we must hinkanew.tt
- Abraham Lincoln
Working facilities are he land, buildings, and equipment that provide
the physical capability to add value. This book is about operationalfacilities used or a wide rangeof business,government, nstitutional,and charitableactivities. It applies o offices, factories,and fast-foodrestaurants.t applies o any acilitythat houses alue-addingoperations.For convenience,ermssuch as
"businessfacility" or"factory" areused,
although the changing nature of work has blured many of thesedistinctions. The
principles herein apply to a wide rangeof situationsthe industrialengineer ommonlyencounters.
Facilitiesareboth durableand expensive,asting for decades ndsometimeseven spanningcenturies.A firm's facilities are among themost expensive f itspossessions.hey representhe argestassettemon most balance heets.
The durability of facilities, their cost, and their primary role inadding value make them an important strategicelement.Just asgunpowder made the fortressesof medieval Europe indefensible,
changes n technology, culture, andpolitics canquickly render today'sindustrial facilities obsolete.Conversely, facilities that adapt to thenatureof their competitiveenvironment canbe a continuing sourceofadvantage or their owners.
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Facilit ies lanning
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Facilit iesn A ChangingEnvironment
Figure 1.1 depicts the interaction of facilities, organization,products,andprocesses.he understanding, esign,anddevelopmentof these ariedelementsnto a unctioningbusinessystem re eferredto in variouserms.Among these re:manufacfuring trategy, o{poratereengineering, nd business
rchitecture.The importanceof facilitiesdoesnot lie solely n their costanddurability. They are also the most tangible elementof the businesssystem, he element o which everyonen everyareaof the business anrelate.They canbe a central,commonreferenceor the restrucfuring/reengineering/strategicebate.
Working facilities in modern historyIndustrial facilities
shops that served he needsof individual artisanswere the industrialfacilitiesof the Middle Ages.Theseweresmalland centered roundasingleskill suchasarmoryor saddlemaking. hey hadsimpleandcleararrangements.
Duringthe IndustrialRevolution,powersources nd he movementof raw materialsdeterminedfaciliry design.Textile mills requiredstreamsor waterpower,andcumbersome haftsandbeltsdominatedtheir arrangement. ady ron andsteelmillswere ocatedon waterways,
railroads,or mining siteslcoal, ron ore,and imestone ransportationdominated heir design.
Early large-scale roduction shopssuchas he pickering piano
Factory @g, 1.2) developedn the nineteenthcentury.These large
Figure 1.2 - The Pickering Piono Factory, Boston, Moss, Circo | 870
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Facilit ies lanning
buildings urned out high numbersof manufacrured roducts.At one
time, the Pickering factory urned out 400 pianoseachday.
In the earlytwentieth entury, he progression fmass-production
technology required facilities that optimized material flow. The
micro-division of labor made skill less important than efficient
movementof product.
In the secondhalf of this century, nformation and knowledge
began o dominate ndustrialproduction.The educationand skills of
theworKorce n industrializedparts fthe world increased. s aresult,
industrial facilitiesmust now optimize the coordination of people,
processes,ndproducts.
Government facilities
In the Middle Ages, the most important government acilitiesweretown fortresses. heir primary mission was defenseagainst roving
bandsand neighboring iry-states. he fortified town of Rocroi,on the
northernplainof France, s an example.Still argelyintact, t is a asting
testimony o the durability,cost,and obsolescencef these ortresses.
With the adventofgunpowder,battle echnoloryadvanced. ew
tacticsevolvedand armiesbecamemore disciplined.These massive
works drained the treasuries f many dukes and kings and became
indefensibleand obsolete.By the time of the Renaissance,ortresseshad evolved nto palaces. heir primary missionwas comfort for the
inhabitants, as well as the projection of power and prestige.The
buildersofmany governmentalbuildingswanted o intimidate potential
enemies, oth foreign and domestic.
Governments no longer can survive only through warfare or the
threat of warfare.Their constituentsdemandaddedvalue n a wide
range of human activity. Accordingly, many governmental facilities
now arebeing designedor efficient operations ather han projection
of power.
The United StatesPostalService rovidesan excellentexample.
Post officesbuilt in the early part of this century were architectural
landmarks.Their mission was to display the power, stability, and
prestige f the federalgovernment.Postal acilitiesbuilt todayarenear
transportation entersand optimizemail flow. Their primarymission
is the efficient distribution of mail.
Knowl e dge-based fa ci tiesFacilities n which knowledge s the primary meansof work have
always eenmorevaried han other types.The medievalmonastery,
for example)was a primary depositoryof knowledge n its time.
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Facilitiesn A ChangingEnvironment
The church used this knowledge to vie with governments forpower and influence.
During the Renaissancend Industrial Revolution,knowledgebecamean important source or commercialcompetitiveadvantage.Individual professionals
uchasdoctors, awyers,and financierswereprimary keepers f knowledge.Other knowledge esided n libraries.Factoriesmbeddedt in their facilitiesandprocesses.eterF. Druckerwas among he first to rccognize he increasing alueofwhat he termed"knowledge
work." He put forth these deas n his landmarkwork, ThePracticeofManagement,n 1955. Knowledgework dependsprimarilyon brainpower rather than manual skills or strength. In today'smanufacturingenvironment,most work requiring pure strength ofmusclehas ong beenautomatedaway.Much of the work that once
required manual dexterity has been taken over by computerizedequipmentsuchasnumerically ontrolledmachine oolsor coordinatemeasuringmachines. herefore, nowledge nd he nformationbehindit now havebecomeprimarysources fvalue n their own right. Manyorganizationsexist for the solepurposeof processing nformation anddistributing t. Their facilitiesshouldreflectandenhance his role.
Facilitiesn a changing nvironment
Facilitydesigners avealwaysworkedwith materials, roducts,processes,information,andpeople. heirtaskis to arrangeworkprocessesn andand n buildings or optimum performance. his hasnot changedandwill not change,but rapid shifts in technology, politics, and culturerequire a more fundamentalunderstandingand analysis rom thefacility designer. t no longer is sufficient(if it everwas) to copy anassemblyine ust becauset wassuccessfulomewhere lse.
In additionto the ong-term trend toward ncreased nowledge-
basedwork, other rendsofa stretigicnatureareaffectingbusiness.hefacility plannershould catalyze r leadan organization'sadaptationtoever-changing urroundings.
The environmental imperative
Harmony with the environment s an increasinglymportant businessconcernthat will not go away.Population growth is a principal factordictating this concern; he spreadof the suburbs hrough increasedmobility is another. Organizafions hat surviveandprosper n coming
yearswill anticipateand eadwith their environmentalpolicies.
Location requirement changesInformation is the raw material of the knowledge worker. With the
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6 Facilities lanning
confluenceof information processingand communication, the
information superhighway as opened.The ability to distributevast
amountsof information makes t less mportant for facilities o locate
near the sourceof information. This is similar to the distribution of
materials n an earlierday.As material ransportationbecamemore
efficient.manufacturers ould ocate arther from their sources.
Knowledge-basedacilitiesnow locatewhere heir workerswish
to live-often far from traditional industry. Industries that require
specialized nowledgeoftenconvergen smallareas:manufacturers f
overhead ranes ongregaten Milwaukee,Wisconsin;Wichita, Kansas,
hasa high concentrationofvinyl printers for decorativedecals;and"Silicon
Valley" n California s the home for many electronics lants.
These changesaffectglobal facilitiesplanning decisions uch as site
selectionandplanning.
The changing nature of work
As products becomemore sophisticated, heir knowledge component
becomesmore important. It is no longer enough to manufacture a
commodity product.Competition demands ariety, requentchange,and
distribution systemshatdeliverphysicalproduct,service, ndknowledge.
The natureofworkhas changed. oday, ndividuals eldomwork
alone. Knowledge teams are necessaryn product design, processdesign, inance, ndeven aw.Teams,by their nature, equireproximiry.
Facilities can inhibit or promote teamwork.They can smooth the
operation of complexand etherealknowledgeprocessesr they can
isolate eopleandprevent ommunication.
The socio-technical system
Socio-technical ystems ave alwaysexisted,althoughfew managers
recognized he phenomenon ntil recently.Management houghtwas
caughtn theNewtonianconcepthat organizations ere ike machines,
giant clockrvork mechanisms hat ticked away in a predictable,
mechanicalmanner.EricTrist ofthe Tavistock nstitutedevelopedhe
socio-technical dea in the early 1950s. Teamwork, total quality
managementTQ{), and other echniquesor employeenvolvement
have heir roots n the conceptofthe socio-technical ystem fiS.1.3).
The socialsystem ncludespeopleand their habitual attitudes,
values,behavioral styles,and relationships. t is the formal power
strucfure depicted on otganization charts and the informal structurederived rom knowledgeandpersonal nfluence.The technicalsystem
includes machinery, processes, rocedures,and their physical
arrangement layout).
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Facilit iesn A ChangingEnvironment
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Facilities lanning
To be effective,the social and technical systemsmust integrate
and assistone another.Facilitiesplanning playsa major role in this
integration.Businesses herepeoplehave solatedworkstations,arge
inventory buffers, and few sequential processeshave difficulty
implementing teamwork. A manufacturing work cell that requires
extensiveeamworkwill not produce n an environmentof suspicion,
individual rewards,and command-control.
N on-h erarchi ca orga niz ation s
Hierarchical organizationswith functional divisions of work evolved
from the Roman Legions, he Catholic Church, andmedievalguilds.
Such organizations are ill-suited for today's work, where the work
product requires nput from many functional specialties nd where
coordinationbetweenspecialtiess a primary requirement'While TqM emphasizescross-functional teamwork, more
fundamental reengineeringemphasizeselimination of functional
structures in the organization This puts special demands on the
facilitiesplanner.Non-hierarchicalorganizationsmust constantly hange
to accommodate hangesn business olumeand product ife cycles.
In these organizations here is less division between traditional
managementand labor functions.Many engineersand otherswho
traditionally worked in office areasnow have their desks n themanufacturing plant. Many of today's high-tech manufacturing
operationsdemand more cleanliness nd order than the traditional
office. Therefore, facilitiesmust be more open with few walls and
barriers.Theyrequireconstant earrangemento accommodate hanging
work cells and changing team structures.
Global business restructurtng reengineering, and facilities
Thanks in part to the changingnatureofwork, globaleconomics, nd
technologicaladvances,arge-scaleestructurings occurring n many
organizatrons. s a result,many acilities hat areno onger contributing
to companymissionswill close.Other facilitieswill be built. Many
more will haveproducts ealignedandprocesseseengineered.
Facilitiesplanning s often a arge-scaleeengineering roject. t
is an opportunity to rethink processesswell assuPPorting lements.
During a acilitiesplanningproject,he designersanhelpmanagement
clarifr missionsand rationalizeproduct ines.
Layout is an integral part of reengineering and restructuring.Meaningful restructuring equires orrespondinghangesn the ayout.
Conversely,a ayout redesigncanbe he catalyst or restructuring.
Many symptomsofinappropriatebusiness rchitectureappearas ayout
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Facilitiesn A ChangingEnvironment
or materialhandling ssues. actoryayoutcandemonstratehe need orreengineeringo an organization eluctant o tear tselfapartandrebuild.
Approaches to facility planning
Those who plan and build facilities ake many approaches. ome are
highly organized;othersaread hoc. Examplesofapproaches fig.7.4) areexperiential,masterbuilding, cloning,bottom-up,systematic, ndstrategic.
Experiential
In this approach, eopleplan their facilitiesbasedon pastexperience,common sense, nd instinct. In any organization,he experience fseniormemberss valuable or information on what hasworked andwhat has not worked in the past. Otganizations,aswell as ndividuals,
need his experienceo function.A faciliry designed rom experienceaps nto the rich knowledge
of thosewho havegone beforel however,experience-basedacilitiesplanninghas imitations.Experience, ydefinition, sbased n the past,and new technologyandorganization tructures an make t obsolete.In addition,planningby experiencesusuallyunorganized.t frequentlyis he resultof the memories fonlyone or a ewindividuals,and othersmayhavehadadditionalor contradictory xperiences.uchhindrances,aswell as orgotten details,haunt theseefforts.
In planning a major facility, experience annotbe ignored butmust be gathered rom the widest field of experience ossibleandappliedwith judgment and discretion.
Master building
Master building focuseson consrructionand buildings. The finalproduct soften mpressive ndsometimes work of art, but it may notfit theoperational eeds fthe enterprise.Masterbuilderscanbe ound
at many levels in both large and small organizations: a companypresident building a new headquartersor a department managerfocusing on technological mpressivenessather than actual needs.Using abuildingto displayfinancial trength, echnological rowess, rartistic accomplishments a legitimate orm of advertising.However,this purposeshouldbe balancedwith other business eeds.
Cloning
Cloning simply duplicates an existing facllity or portion of it. Thisapproachs ast. fthe existingfaciliryis rovenand fconditionsare hesame,this type works well. McDonald's uses cloning to build itshamburger
factories"throughout he world. For most acilities,however,
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I O Facilities lanning
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cloninghas imited usebecauseites, rocesses,ndpeoplearedifferent.
Cloning shouldbe appliedonly when appropriate.
Bottom up
The bottom-up approachstartswith the details.How many desks?
How many and which machines?How many people?From them,
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Facilitiesn A ChangingEnvironment
departmentalunits and, eventually, he overall acility plan are built. Itis a satisfactory pproachf the derailsand how theywill be assembledinto a argersystem reknown, fthere is time, and fthe detailswill notchange.such conditionsare often met for smaller acilities n stableenvironments.
Bottom-up planning does not lend itself to new operationsstrategies. ecause ll detailshave o be workedout before inal designand construction, onstructionead imesareoften too long. On largeprojects, he detailsbecomeso overwhelming t is often difficult tomaintain schedules.
Systematic
Systematicayoutplanning (SLP) usesprocedures, onventions,and
phases. t helps ayout plannersknow what to do at eachstep of aproject. This provides ayout planning with systemand strucrure,saving ime andeffort. However,many ayoutscreatedwith systematicmethodologyare simply better versionsof what went before.Theprimaryconcerns how to arrange locksof space. more undamentalissue s what blocksof space houldbe arranged.
Strategic
The strategic pproachstop-down. t sets olicy irst andaranges hetechnology, organization, and facilities to support it. Starting withbusiness ndcorporate trateg'yuchasglobalsite ocation, t moves ooperations trate yand inisheswith detailsike ocarions f equipmentand furniture.
A strategic pproachsdirectand haspurpose. t allowseveryoneinvolved in the project to follow a common direction. Used alone,however,strategicdirection is insufficient. It does not tell facilirydesigners nd thosewho use he facilitieswhat to do.
FacPIan
The FacPlanmethodcombines he bestof variousapproaches.t hassystemand structureand addsstrategicdimension. t taps nto theexperience nd knowledgeof thosewho use he facilities. t canworkfrom detail to generaland viceversawhen appropriate.
FacPlanusesa hierarchyof detail evels. t focuses n strategicissuesat the appropriate ime and minutiae at the appropriate ime,
usingamodelprojectplan oguideandsrrucrure ach roject.Proceduralflow chartsguide heplanner hrougheach askandassistwithdecisionmaking.Charts, orms,anddesignaidscontribute o the organizationof information.
1 1
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1 2 Faci l i t ies lanning
The ndustrial nginee/s ole n facilityplanningThe central,strategic ole offacilitiesplacesheir designersn a unique
position. Industrial engineers an assumenarrow roles as technical
equipmentarrangers r they can take broader oles as educators nd
catalysts or or gan\zationalstrate ic debate.
The latter requiresmore han skills n layoutdesignand echnical
procedure.Strategicperspective, ell-developed nterpersonal kills,
patience,and understanding re alsonecessary.
This work providesnsight nto the basic echnicalools ndustrial
engineers eed or facilitiesplanning.The broaderskills will reguire
experie ce, nsight, maturity, and education.
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Chapter2
The Frameworkor
Facilities esign
The completedesignof a facility requireswork from many disciplineswithin an organization:sales and marketing, purchasing, humanresource, accounting, nd more.More visible s he work of architects,structuralengineers, rocess ngineers, nd management.Architects
and structuralengineers heck soil conditions, building codes,and
infrastructure, etailing he structure, ppearance,nd nternalsof thebuildingandsite.Processngineers ayplan heproductionprocedures.To guide and coordinateall theseefforts,management etsstrategicpolicies.
Industrial engineers lsoplay key roles.They often manage heoverallprojectand report to top management, nd they may performsomeor all of the above asks.Most importantly, hey plan the useofspace. hesespace lans,atvarious etail evels, ecome hecenterpiece
for coordinating he entireproject.
The levels of spatial design
Layout, or space lanning, s the central ocusof facilitiesdesignanddominates he thoughtsof mostmanagers. ut factoryor office ayoutis only one detail level. Ideally, a facility design proceeds rom thegeneral o the particular-from global site location to workstation.Largerstrategicssues redecided irst.
It is useful o think of space lanning in five levelsas shown in
figure 2.1.Figures2.2 through 2.6 show qpical ourputsat each evel.These range from the global maps of site location to engineeringdrawingsof tools and workstations.
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1 4 Facilities lanning
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The Framework orFacilities esign 1 5
Level I -Global site locationDuring global ocation, he site ocation evel, he firm decideswhereto locate acilitiesand determines heir missions.A facility missionstatement is a concisesummary of products, processes, nd key
manufacfuring tasks.A facility rarely canperform more than two orthreekey manufacturingaskswell. The missionstatementsthereforean important guide for facilitiesplannersand othersas hey considervariousdesign rade-offs.
Otheroutputsat his evelusuallyncludeareport o management.For multiple sites,mapsshowingsite ocationsand customeiactivityarecommon.Figure2.2 illustrates.
The costof space lanning at Level 1 is small.Global locationusually nvolvesa ew top executives ndone or fwo industrial engineersor consultants.Each level below requiresmore and more people,analysis, nd detailedengineering.Yet, the corporatebudgetpro..r,frequentlydemandshat all significantplanningbe delayed rriil uft.,a decisions made oproceedwith siteacquisition. hose evelswith the
Proposed
South American PlantSite Specification
Contents
1 O Mission
2.0 General
Requirements
3.0 Land Features
4.O Building
5.O Transponation
6.0 l.ltilities
7,0 Labor
8.O Communlty
9.0 Suppl leG
1O.O Environmental
O Manufacturing
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Midwest Plant& Warehouse
MissionStatementBrussels
Warehouse
Mission
StatementShenandoahPlant
The ShenandoahFaci l i tywi l l
manufacture the Eliteproduct l ine for highvolume customers n
the Eastern UnitedStates. lt will strive to
be the primary
suppl ier for ou rindustry for high
qual i ty OEM material .
Figure 2.2 - Level | - Site Location
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1 6 Facilit ies lanning
most strategic mpact and the lowestplanning cost receive he least
attention.Consequently,he decisions ith the most strategicmpact
are sometimesmade with the least reliableknowledge.
Overall businessstrategy s most important at the global level.
Determining the number and ocationof sites equires ar more thansimply searching or the lowest labor rates and largest tax breaks.
Available labor skiils and attitudes toward work, supporting services
suchas ool productionandmaterial upply, ndpolitics,andsometimes
geopolitics,must alsobe majorconsiderations.or example,f a plant
is located n the wrong countr/r it may becomea geopoliticalpawn.
Technologicalprowesscould then shift to other regions. f there is
political instability locally, it can destroy a firm's ability to produce.
Important raw materialsmight bedepleted r replaced. uchproblems
are not easy o correct.
Appropriate planningresults n facilitiesoptimizedfor the markets
and located near the most important resources-resources hat,
increasingly, nvolve knowledge,skills, and infrastructure rather than
raw materials.
Level 2-Supra-space plan
At the supra-space lan level,site planning takesplace.This includes
number,size,and ocationofbuildings,aswell as nfrastructure uchasroads, water, gas, and rail. This plan should look ahead to plant
expansions nd eventual itesaturation.
The documents from a site planning project almost always
include a site drawing (fig. 2.3). Frequently, they involve a seriesof
drawings showing past,present,and future configurations(there may
be severaloptions for these).A major site study alsomight include
narrativeson site history and descriptionsof the considerations nd
rationale or the siteplans.At this level, planning still has long-term and far-reaching
consequences.well-designed nfrastructuresupports uture expansion
or conversion o new products.Proper ocation and building design
provide or logicalexpansionn suitable ncrements.
Level 3-Macro-space plan
At the macro-spaceplan level, a macro-layout (fig. 2.4) plans each
building, structure, r othersub-unitof the site.Usually his s he most
important level of planning, for it sets he focus,or basicorganization,
of the factory.The designers efineand ocateoperatingdepartments
and determine overallmaterial flow.
Macro-space landecisionsmay esult n new-product lexibility,
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The FrameworkFor FacilitiesDesign 1 7
ffi onur" II 2azzssr
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Figure2.? - Level2, Site PlonningMaster Site Plon, Shenondooh Plont, Stonewatl Corp.
lowercosts, igh quality,or a lexible abor.Fundamentalmacro-spaceplandecisions sually reeasiero correct hansite-level ecisions. till,a poorlyplanned acilitycanbring high handlingcosts, onfusion,andinflexibility. Theseproblems, n rurn, can causedifficulty in launchingnew products, erratic deliveries,and too much inventory. Correctingsuch problems may require a complete rearrangementwith majorinvestmentsn process quipmentand infrastructure.
Level 4-Micro-space plan
The locationof specificequipmentand furniture s determined n themicro-spaceplan. The emphasisshifts from gross material flow to
personalspaceand communication.Socio-technicalconsiderationsdominate. fproduction teamsarean mportant elementofthe operationsstratery, the work at this level may inhibit or discourage eamwork.Figure2.5 showsa space lan for an operatingdepartment.
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1 8 Facilities lanning
O z e
ProjectReport
ilacro.Layout&
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O m
ElectronEngineer ing orp.Macro-Layout pt ionA
Macro-LayoutptionB
Macro-Layout ptionC
Figure 2.4 - Level 3, Mocro LoyoutProject Report Mocro-Loyout ond Moteriol Hondling
Level 5-Sub-micro-space plan
Individual workstations and workers are he concernof the fifth level.
Here, workstationsaredesignedor efficiency,effectiveness, ndsafety.
Ideally, the industrial engineerplans for the correct tools in the most
appropriate places,using fixtures that properly hold the work piece.Materials are introduced at optimal locations and large items are
providedwith appropriatematerial handling aids.Some ypical outputs
are shown in figure 2.6.
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20 Facilit ies lanning
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Figure2.5- Level5, Worl<stotionLoyout
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The Framework orFacilities esign 2' l
Levels 4 and 5 are the more detailed evelsof spaceplanning;therefore,equipmentand ssues remore ocalized.When.h"rrg., "r"necessary,here susuallylessanger fmajorproduction nterruptions.
The phasing of spacedesignIdeally, designprogressesrom the global level to the sub-micro level
in distinct, sequential hases. t the end of eachphase, he design s"frozen"by consensus. his seftles he more global issues irsiand
allowssmoothprogresswithout continuallyrevisitingunresolvedssues.It alsopreventsdetails from overwhelming the prolect. Figure 2.7(A)illustrateshis ogicalprogression ndshows he strategicmpactofthework in eachphase.Strategic mpact affects he ong-term ab1fityof thefirm to competeandprofit.
. Industrial engineersarelyhave he opportunityto designafacilityin accordance ith the normalphasingshown n figure2.7(A).Thereare severaleasonsor this. Sitesandbuildings hat haveevolvedovermanyyears utlive echnologies nd heir originalpurpose,and hereforemust be rearranged. nother reasonmaybe management'selief hatthe existingspace lan is simplynot optimal. In both cases, lanning
(A)
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Figure 2.7 - Time Phosingthe Design Leyels
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2 2 Facilities lanning
beginsat the macro-spacelan evel.Figure2.7(B) llustrates his.The
phasingdemonstratedn figure2.7(B) alsooccurswhen management
makesglobalandsite-level ecisions ithout the benefitof adviceand
counsel rom their facilitiesplanner(s).
The size and organizationstructureof cells n a macro-space lan
maybe ndeterminablewhen processesnd strategies reuntried.This
oftenhappenswhenfirms makea transition rom functional o cellular
manufacruring. ilot cellsmust henbe developedo prove he concept
or technology.Figure 2.7(C) reflects his. A cell or micro-space lan
(Level4) then becomeshe first phase.Upon completionof th is pilot,
peoplecanagreeon the generalapproach. hen the designer an shift
back to Level 3 and preparea macro-space lan. The details of
remainingcellsare defined n their optimal sequence.
The phasingdemonstratedn figure 2.7(D) is commonfor largeoffice layout projects. First, the details of workstation layout are
established. his may come rom standardizing pace nd equipment
based n eachperson's osition n a hierarchy.Secretaries,or example,
may get a 175-square-footworkstationwith filing spaceand word
processing quipment,while a Grade engineer etsa11O-square-foot
cubicle and a supervisor,a 15O-square-foot ubicle. From the
organizationchartsandstaffing orecasts,he spaceor eachdepartment
andthe arrangement etweendepartments an hen be developed. tthis point, the projectmovesupward n detail to the globalor' more
commonly,macro- evel.
Separatinghe work into phases nd evelss the idealapproach.
Nevertheless,heremaybe someoverlap.For example,he space lan
of a particularwork cell maynot fit the boundaries reviouslydecided
in the macro phase.This may then require minor changes o the
previouslydesigned ndagreed pon macro-spacelan.For theseand
other reasons, hasingshouldbe flexible.
Proper phasingshouldbe consideredn the earliest tages f the
project, perhapsafter the initial discussions nd certainlybeforeany
significantwork effort begins.Here are someguidelines:' work from the most general o the mostspecificevel(highest
to lowest)unless pecial onditionsdictateotherwise;' clearlycommunicate he phasingplan to all participants;' resist he temptation o jump aheadbeforea particularphase
is complete;
' obtainagreement n theplanfor eachphase eforemovingonto the next phase;and
' rccognize hat there may be someoverlapbetweenphases.
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The FrameworkForFacilitiesDesign 23
ThespaceplanelementsEvery spaceplan at each evelhas our fundamentarelementsand twoderived elements.The fundamentalelementsare:spacelanning unitsqPys): ffiniyies, spa-ce,ndconstraints.When developinga spaci plan,the desgners i rstdefine and denti$' SPUs.Theyth.r, .rrJrr"t. "ffi nities.using the affinities, hey oin SPUs o form oneor mo c afi n y diagrams.The affiniry,or configuration,diagram s he firstofthe derivei eleirerrts.Space dded o theconfigurationdiagramproduces spacelanprimitire,the second derived element. constraints applied io tit. spaceplanprimitive produce he space lan. Figure2.8 shows his progression.
@,'"::',1." $n,@l:::ffi Pwarerrouo
Configuralion
Spaceplan rimit ive
FFTspace
ffi
Figure2.8 - Elementsof o Spoceplan
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2 4 Faci l i t ies lanning
The conceptof fundamentaland derivedelementss valid at al l
levels.However, t ismostusefulanddirectat hemacro-andsite evels.
The chapters hat follow explore ts application.
Spaceplanning
unitsSPUsare he entitiesarranged y space lan designers. t the macro-
level, heyare eferred o ascells.The systematic ayout planning ISLP]
system sed he termacti'uity rea.)Acell mightbe aworkdepartment'
a srorage pace, building feature,or a fixed tem. Eachcell nitially is
represeted by a symboland dentifier.
Nlost of thesesymbolsare aken rom ANSI Y15.3M-1979,the
American National Standards nstitute standard or process harts,
which show the tlpe of activity that acts on a product. For space
planning, he symbol hat best epresentshe space'sominantactivity
ir rrsed. igrrt.2.8 showshe symbols,heir meanings, ndcolorcodes'
The standard ymbolsepresent peration, ransport, nspection,
delay, and storage.For spaceplanning, t'"voadditional symbols-
handling and product cells-are added. The handling symbol
designatesareasusedfor repackaging, ransfers,or other elements
that are partly transport and partly operation. The product cell
designates paceusedfor multiple activitieson a singleproduct or
smallgroup of products.The definition of SPUs s one of the moststrategic asks n facility planning.This definition decides he basic
organtzationof the factory.
Affinities
Affinities represet various actors hat demandclosenessetweenany
two cells n a spaceplan. For example,communicationor personal
interactionbetweenworkersmight giverise o anaffinity. Affinities are
ratedusing a six-levelscale,with numericalvalues anging from +4 to
-1. The scalehas our positive evels hat mean sPUs shouldbe close.
Suchhigh-valueaffinitiesmayresult rom frequentmaterialmovement
betweenhe cells.Negative atingsmean hat the SPUsshouldbeapart.
There also s a neutral ating,0.
A vowel scale,A-E-I-O-U-X, may also be used for rating
affinities;this scalewas irst popularizedby RichardMuther. Here,"A"
represents he highest affinity rating,"IJ"
represents neutral affinity,
"nd"X"
i, " rregative ffinity. This scale asa mnemonicadvantage- he
vowelshavecorrespondingword associations s llustrated n ft gute2.9.
Chapter3 discusseshe methods or evaluatingaffinities.
Figure 2.9 shows he affinity conventionsdevelopedby building
on the original SLP system.The multi-line representationworks well
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The FrameworkFor FacilitiesDesign 25
DescriptlonVowelRating
ScalarRating
ManualGraphic
CADGraphic
Color
Absolute A 4
2, Red
Exceptional E 3/ /
Yellov
lmportant I 2/ / Green
Ordinary o 1 Blue
UnimportantU 0 (None)(None)(None)
Apart x N/A f aa Black
Figure2.9 - Affinity Conyentions
for manual graphics.On many CAD systemsand other computer
graphicssoftware, t is easier o usevarying ine widths, gray scales, nd
color. When color is available, t dramatically llustrates the nature of
the affinity network.
Figure 2.10 shows he typical range of affinity distributions for
macro-and micro-layouts.
Affinity diagrom
SPUs combine with affinities to form an affinity diagram-the first
of the derived elements. This diagram is an idealized spatial
arrangement hat eventuallybecomesa spaceplan. In the diagram,
symbols epresentSPUs and ines representaffinities between hem.
A single ine is the lowest value affinity and a four-part line is the
highest.Squiggly ines epresent egative ffinities.Theseconventions
are llustrated n figure 2.9.Using an iterativeprocess, he designermanipulates he diagram
to create an optimal or near-optimal arrangement.A near-optimal
arrangementhasvery short high valueaffinities at the expense flower
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26 Facilit ies lanning
value affinities. t minimizes he crossing f affinity lines
Figure 2.11 illustrates he iterative mprovementof an affinity
diagram. t is interesting hat many computerizedplanning systems
emphasizehis specific rocess hen, n fact, t is the partofthe layout
processo which computersare eastsuited.
Space
Each SPU hasa unique space equirement.Some SPUsmay require
onlv a few square eet, while othersmay require ensor hundredsof
thousands f square eet.
The natureofspaceand he calculationsequiredchangeswith each
pianning evel.At the higher evels, paces"elastic,"and he calculations
maynot need o be asaccurate. t the ower evels, pace anbemorerigid
but also essdefinite. For example,a particularmachineor desk equiresacertainamountofspace,and he designer annotmake t fit in less pace.
In other instances,a pieceof equipmentmay require a certain type of
space ecauset has a peculiarshape, uchas a U. But, under certain
conditions, other items may also it in that U shape.
50o/o
40o.h
20Yo
10o/o
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Figure2.10- Usual Affinity Distribution
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The FrameworkFor FacilitiesDesign 27
Thespaceplon primitiveWhen spacesadded o the affinitydiagram, t distorts he diagram ntothe space lan primitive. It is an dealized epresentation nddoesnotincludedesignconstraints.
Constraints
Designconstraints re hoseconditions hat limit an idealspace lan.Such constraintsmight be building size and shape,columns,floorloading,utility configurations, xternal eatures, nd manyothers.
Space plan
The fusionof a space lan primitive and constraints roducesa spaceplan.Several iablespace lansshouldemerge.A setof cells,affiniiies,
and constraints may give rise to severalequally valid configurationdiagrams ndprimitives.Eachoftheseprimitivesmay esult n multiplemacro-space lans. The nature of the designproblem precludesanoptimal space lan, except n the simplestsituations.
The designer's xperiences a key factor, or it helpshim or herdecidewhich configurations ave he mostpotential. t helpsscalehemyriadof possible pace lansdown to a reasonable umber.
Figure2.11 llustrateshecomplete rogressionrom fundamental
)
Figure2.1 - Optimizing o Configurotion Diogrom
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2 8 Facilit ies lanning
elementsof cells,space, ffinities,and constraintso the macro-space
plan.Theseelements ndthe progression revalid for anysize acility
and at any level.
The design projectThe elements f facility space lansaresimple;executionof the tasks
required o develop hem is not. Rarelydo the tasksneatlycorrespond
to the developmentas describedabove.At each evel of design, he
approachchanges o accommodatehe amount of detail, available
information, and the dominant ssues.
At each evel, an approach hat fits a wide range of projectsand
siruationscanbe developed. hese are calledmodel rojec*.With minor
variations, he model project for a macro-space lan, for example,
applies o almostanymacro-space lan regardless f size,complexity,
or industry. Similarly, the model projects for cell design and site
planningapply o almostany cell designor site-planningproject.The
scope, esources, ethods, ormality,and ime required aryaccording
to sizeandcomplexiry.The sequence, rocedures, nd deliverables re
essentially onstant.Model projects or each evel of design can be
found n Chapters ,4,5,6, and7.
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Chapter3
TheMacro-Space-Plan
The macro-space-plan ften is the mosr important level of facilityplanning. It sets the fundamental organization of the factory andpatterns of material flow with long-term effects.From personnelturnover o quality o delivery, hemacro-space-plannfluences lmosteverymeasureof facility and organizationperformance.
Donewell, t isa platform for reengineering usiness.t can orcereexaminationof markets,products, and processes.t can achievequantum improvements n productivityand profit. It can position afirm for profitability and growth. Done superficially, t can leave realissues nquestioned.
This chapterexplainshow to designmacro-space-planssing astructured, tep-by-step pproachhat results n a near-optimalspaceplan andwideacceptancefthe results. his approach asseveralparts:
conceptualframetuork, modelprojectp/ans, taskprocedures,onventions,and designoolsand aids.
Chapter2 introducedthe conceptual rameworkwith its levelsofdetail hat narrow heproject o a manageableevel.These undamentaland derivedelements how how a space lan dwelops. Arranging thelevels n phases elpsplan theproject. n the pages hat follow, macro-space-planning-one of the more important phases-is examined.With a model project plan, tasks are arranged.Procedure diagramsillustratehow to conducteach ask.The technical ools and other aidsprovide hemeanso complete ach ask.Figure3.1 s he modelprojectplan for a macro-layout.t shows he required asksand heir sequence.This modelevolvedrom thesystematicayoutplanning(SLP) approachdeveloped y RichardMuther almost hirtyyearsago. t hasbeenused
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3 0 Facilities lanning
for hundreds of projectsand suffices or almost any size and type of
macro-space-plan. rom project to project, the depth of analysis
changes longwith the methods or each ask, he resources) nd the
time. Occasionally, project equires few additional asks.However,
the basicstructureand sequenceemain he same.Each task has a two-part identificationnumber.The two digits
before he decimalshowthe asklevel. he digits ollowingthe decimal
identifythe specific ask, oughlyin sequence.ask03.04, or example,
is the fourth taskat Level 3, the macro-space-plan.
The tasksofthe modelprojectoccur n threedistinctgroups:data
acquisition, trategy evelopment, nd ayoutplanning.Thesegroups
arenear he top of figure 3.1.Two tasks,03.01 and 03.27,areoutside
thesegroups.Task 03.01 starts he project,with plansfor activities,
timing, and esources.ask03.21 s he actual election fthe preferred
lavout option. It closes he projectand allowspreparation or Level4,
the micro-space-plan.
A procedurediagram s providedfor some asks.For example,
figure 3.3 is the procedurediagramfor Task 03.02.Such diagrams
illustrate he logic flow and sub-tasksequired.These procedures re
sometimesterative.Most early ayout modelsemphasizedhe third
taskgroup,where geometricarrangementakesplace.Of course,his
is important, but far more important is the determinationof whatspaceso arrange.The definition of these ayout cellsestablisheshe
organizationofa faciliry'swork. Embodied in cell definition, it has ar
more mpact on facility performance.
Figure 3.1 alsoguidesdesignershrough their first layoutsusing
the systemdescribedn this chapter.The design ask at hand should
always be the central focus and any temptations to jump ahead
prematurely o other tasksshouldbe resisted.Completed tasftsalso
shouldnot be revisited.Figure 3.1 helpsdesigners oncentrate n thecurrent task, ts procedurediagram,and specificdiscussions.f each
task s done n propersequence,he space lanwill take shapeandthe
projectobjectivewill be reached.
It is vital to keepmanagershroughout the organization nformed
during the entire planningprocess, responsibility estsuited o the
designer. Many facility projects result in fundamental changesand
restructuring.Managers ndothersneed ime to learnnewinformation
andform newviews. f theyarenot kept nformed and nvolved n the
learning and reasoning rocess, greement nd consensus ill not be
achieved. his could result n the rejectionof an excellentayout.
There areseveralormal and nformalwaysofinvolving managers.
Formal methods nclude using a steeringcommitteeto oversee nd
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The Macro-Space-Plan 3 1
review progressand adding updatemeetings to the model project. Akickoff meeting can follow Task 03.01. During such a meeting, keymembers of the organization could review tasks and confirm thatresourcesare available.An additional meeting, at which time factual
datawouldbepresentedn a non-threateningmanner,might followthe
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Figure3.1 - Macro-Spoce-plonModel Project
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3 2 Facilities lanning
dataacquisition asks.
A formal meeting is valuable or developingoperationsstrategy
andcanbean mportant consensusuilder.Agreementandcommitment
to the operationsstrategyarevital for later agreementon a faciliry plan.
Task 03.21, he evaluation nd selection f space lan options, s alsoa good consensusbuilder. Extensive interviews and informal
conversations ith managers nd others hroughout the organization
are also mportant.
IntroducingCosmosProductsCosmosProducts s the companyusedas a model in this chapter o
illustrate he processesffacilitiesplanningat themacro-level.Cosmos
Productsconvertshigh-gradevinyl film into decorativematerial.The
firm has wo broadproduct ineswith differentprocesses, arkets, nd
distribution channels.Roll products-pin-striping material n many
colors, patterns,widths, and combinations-sell in the automotive
afte market.Customsheet roducts ell o manufacturershat use hem
for labels, ogos, and decoration.Manufacturersof campers'boats,
chainsaws,andagriculturalequipmentare ypicalcustomers.Cosmos
often prepareshe artwork for thesecustomers.Customproductsare
flat sheets f materialwith imprinting, adhesiveanda paperbacking.
CosmosProductsstartedas a small operationabout twenry-fiveyearsago.The firm hasgrown significantly eachyear at ̂ n averageate
of 22percent.To accommodatehis growth, therehavebeena number
of additions o the currentfaciliry. In recentyears'managementhas
experienced ifficulty that hasmanifestedtself n too much nventory'
shippingdelays, nd generalconfusion.
The company's urrentproject s reengineeringhe faciliry and
relatedDrocesses.he obiectives re o: reducematerialhandlingcosts;
reduce'operating .orrrl i-prove delivery performance; irip.or'.teamwork, communication, and quality; allow for new products;
accommodate 998production;and deliver he projectundera budget
of $800,000. he steering ommittee or this projectconsists f; O. W.
Holmes, presidentandchiefexecutive fficer; .Marshall, chieffinancial
officer; W. Burger, vice president,operations;and E. Warren, vice
president,sales nd marketing.
Planninghe projectTask 03.01, PlanProject,"develops specifi projectplan.Developing
a soundmacro-space-planemands ignificant esources.n this step,
the dispositionof those esourcess mappedout.The model project n
figure 3.1-works for almost everymacro-space-planproject, whether
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34 Facilit ies lanning
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The Macro-Space-Plan 3 5
means ime andcommonunderstandingshat mustbeginearly n orderto bear ruit at the end ofthe project.
Product-volume ana lysis
Product-volume (P- ) analysisexamines he current and future timeframes or the products and their volumes.This analysishelps thedesigner nderstandhe relationships etween arious roducts.High-volumeand ow-volumeproducts, or example,may requiredifferentequipment and production modes.The analysisalso defines uturerequirements, elps select he bestplanninghorizon, and allows forchanges eyond he immediatespace lan.
The results f theP-V analysis rovide mportant nput for manylater tasks,and, therefore,shouldbe completedearly n the project.Facility designers hat have been long-time employeessometimesbelieve hey know the productswell enough to skip this task,but thisis not recommended.
The procedure iagram or product-volumeanalysiss n figure3.3.Block1 documentshegathering finformation.Thismaybeaccomplishedin the following ways:visuallyexamininga rangeof finished products;reviewing salescatalogsand other information for an overviewof theproduct line; and interviewing salesand marketing people. It is also
important to obrain overallsales olumehistory (usually, ive to ten yearsisadequate).Where marketsand echnologies rechanging apidly, vyo othreeyearsmay be a moreappropriateime frame.
Sales orecasts or the following five to ten yearsshould alsoberequested. n absence f this nformation ndicates ncertainty. t mayrequiremultiplecontingenciesn the faciliryplan.Unfortunately,salespeopleand other managersmaybe unwilling to commit to a forecast.In sucha situation,high, low, andoptimistic forecasts ould be asked
for, with the explanation that they areneeded for facility planningpurposes nd extremeaccuracys unnecessary.
A request or a sales orecastmay touch off a flurry of executiveactivity becausehe requestednformation may nor exist or may bequestionable.Generating he numberswill help build managementawareness.t is sometimes he beginning of an important strategicdebatehat ultimately eadso better acilityplans.This debatealsocanleadto important andprofound changesn managementhinking.
In Block 2, the forecastdata s plotted on a line chart alongwithsales istories. f theyareavailable, primisticandpessimisticorecasts
shouldalsobe added.After examining he chart,plotting a regressionline like that in figure 3.4 may be helpful. Where seasonalitys aconcern,a separate hart couldbe used o show monthly sales or the
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3 6 Facilit ies lanning
past wo to four years.Visualpresentation s moremeaningful han a ist
ofnumbers.A simplechartoften reveals reviouslyunrecognizedrends.
In Block 3, the productsareexamined or appropriate rouping.
If the facility will only produce a few products, such grouping is
unnecessary.ost facilities, owever, avemanyproductsorvariationsin anywhere rom three to fifly groups. Preferably, hesegroups have
commonmanufacturingcharacteristics swell ascustomer equirements.
Sometimeshe distribution channeldetermines ales roups.
During this task, the groups may have either a marketing or
manufacturing rientation,orboth. A marketingorientationmeans he
items within a group are similar for the customer.A manufacturing
orientationmeanshe temswithin agrouparesimilarformanufacturing
purposes.These groups m y or may not be the same. Sometimes
2
GroupedProdud tofile. Dollars. Pi@es. OtherLhib
Figure3.3- Tosk3.01, Product-Yolume nolysis
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The Macro-Space-Plan 3 7
Thousands40
35
30
25
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1 9 8 71 9 8 81 9 8 91 9 9 0 1 9 9 1 1 9 9 21 9 9 3 1 9 9 41 9 9 5 1 9 9 61 9 9 7
Figure 3.4 - Soles HistorylForecost
operationspeopleadoptproductgroupsoriginallydevisedby marketing.This cancomplicate he manufacturing rocess nnecessarily.
Once he groupshavebeendetermined, groupedproductprofileshouldbe prepared.Suchaprofile takes he form ofa rankedbarchartshowingsales olume or eachgroup fig.3.5).Sales olume s measurablein dollars,pieces, r other convenientunits. Several rofilesshowingdifferentunits suchas onsor palletsmavbe helpful.A second -axison the chart showscumulativepercentage.
A moredetailed roductprofile,Block4, alsomight proveuseful.There aresituationswhen aproduct group hassignificant sales olume,
but individual products n the group have few (or no) sales.The forecasts nd P-V analysis ecome he agreed ponbasis or
process esign, paceequirements, torageequirements, nd materialflow analysis.t is important to confirm the forecasts nd other P-Vdatawith managers nd especially ith the key decision-makers.
The P-V analysiscan assistwith the development of themanufacturing strategy.High volume and low variety suggesthigh-speedproduction line equipment. Low volume with high varietysuggests functional ayout.High varietyand a wide rangeofvolumessuggest ellularmanufacturing.Seasonalariationnecessitatespecifistrategies or inventory and capacity.The section on manufacturing
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38 Facilities lanning
strateg'ywill explore hese ssuesmore fully.
A few short paragraphsor bullets can summarrzethe findings
from the P-V analysis sshown n figure 3.3, Block 5.
Figures3.3 hrough3.5 llustratedeliverablesorthe CosmosProduct
Volume Task The following is its P-V summary,anotherdeliverable.
CosmosProductsProduct-volumeumma yThe 22 percent growth rate is expected o slow somewhat during the
next three years.The 1997 forecast olume of 35,000 units will be the
first faciliryplanninghorizon. Cosmoshasabout 10,000 ine items n
the product database. heseareinl92 groupsaccording o significant
feafuressuch as basematerial,color, and width. Thirty-four groups
represent 0 percentofsales.Ofthe 192 groups,63 generateess han
$200per month of income.We may havesignificantopportunity tontionalize the product offering or modify our inventory policy.
Existing process analysis
Task 03.03,Existing
Process nalysis,"nvolvesrackingworkproduct
activity,or thesequencesn which outsideentitiesacton anorganization's
work product. For manufacturingspaceplans, the work product is
usuallya physicalproduct. n otherspace lans, he work productmay
be intangible such as an information packet. n a hospital, he workproduct maybe a patient.
Existing process nalysis ocuments he process urrently n place.
However, fthe product s new,suchaprocessmay not exist,and a similar
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Figure3.5 - Product Profile
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The Macro-Space-Plan
product andprocess houldbestudied. fboth product andprocess aveno current benchmarks,an initial proposal for the processshould beselected.The eady completionof this taskcreatesa reference oint forprocessmprovementsanda space lan. The space lan designerusuallyperforms this taskwith assistancerom production people.This bringsdetailedknowledgeof actual loor operations o the process.
_Figure3.6 shows he procedu e for analyzing he existingprocess.
one or more flow processcharts are constructedduring ihis task.Modified ANSI conventions see ig. 3.7) areused n this chartingsystem,wherebysymbols epresentdifferent typesofevents hat involvea work product.
The operationsymbolmodifies the work product in a way thatadvancest towardsa finished state.The transp,rt symbor hows a
physicalmovementofthe workproduct-usually a significantdisrance,such as ten feet or more. The bandling symbol epresents orting,positioning, or some other short movement. nspection checks orquality.The delay ymbol epresents omething hat haltstheprocessora time. Often, this is a work-in-process taging.
Storage s a longerwait, usually n a designated reawhere thelocation and material have records. A short horizontal line at thebeginningofthe process howstems rom suppliers utside he process
under study.vertical lineson the chart showthe sequence fivents.Horizontal arrows showwhere several tems of work product merge.Text to the right of eachsymboldescribeshe event.Thesenotesalsomight ndicate ime, henumberofpeople, rotherrelevantnformation.
Process hartsand material low chartsshouldnot be confused.There s a notabledifference.with process harts, he symbolsarenotlocationsor workstationsor evenmachines.only the text haswho,what, andwhere nformation.The linesdo nor representmovementofthe work product; nstead, hey represent nly ^ ,.qu.rr." of events.
Constructing the chart(s)meansgathering nitial informationbeforehand; his is illustratedby Block 1 in figure 3.6. Someof thiscomesrom the P-vanalysis Task03.02)andsome romlookingattheprocess nd talking with knowledgeable eople;
-Block2 (fig.3.6) of theprocedure eginsaddressinghe question
of how manyandwhich products o analyze.Itasksf theie areproductgroupswith similar processes.he answershould be basedon theobservations nd knowledgecurrentlyavailable.Somesituationsmay
present housands r tensofthousandsofproducts.A definiteanswermay norbepossiblewithout extensive nalysis,
w-hich s unnecessaryt this point. Suppose,or example,an injectionplanning facility were being planned.The plant supplies67 molded
39
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40 Facilit ies lanning
itemsbut each tem comesnanyof 79 colors. his givesa otal of 7,273
item, or SKU, numbers.However,the plant usesquick color change
equipmentand hashoned heir skills n colorchanges. or manufacturing
purposes, olor is not a differentiator. The molderscan make anygiven
piecen any coloror a successionf colorswithout difficulty. The 19
colorsof eachpart would thereforebe groupedas f they were a single
product. f suchgroupscannotbe identified,Block 3 is the next steP.
Block 3 asks f there are ewer than2i products. f there are,each
ProcessChart
Figure3.6 - Task 3.03, AnolyzeCurrent Process
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42 Facilit ies lanning
process harts,elementprofiles,and written findingsaredeliverables.
The following is the Cosmosprocess ummary:
CosmosProducts:Existing rocesssummotyThe valueadded ndex(VAI) for roll products s 13 percent'The VAI
for commercial roductss 20 percent.Theseareboth quite ow.There
area substantial umberofopportunities o reduceransport'handling,
and storageelements.
In ro11 roducts, he processesequirespecialequipment'This
equipment s relatively mallscale.Changeoverimesrange rom five
to forty-five minutes.
For commercial roducts, rocess calesverysmall n themanual
operations t pick-and-pee1. ie-cutting operates n a mediumscale.
Silk-screeninguses arge-scale resses.We may wish to investigatesmallerscale rocessesor silk-screening.
Slit-and-sheet perations ll usea singleslitterthat is quite fast.
Both commercialandroll productsuse he samematerial.Optimizing
the use of each roll savessignificantwastage. t seems o dictate
continueduseof a commonslit-and-she t ̂ tea or all products.
The processcharts for Cosmos Products arc fairly simple. In
additionto themodifiedANSI conventions,igure 3.7shows heprocess
for one of Cosmos's oll products-a vinyl stockmaterial or signsandotherdecoration.Figure 3.8charts he processor a multi-color, die-cut
decal,a ypicalproduct rom oneofCosmos'scommercialmarkets.These
decalsdecorateautomobilesand other outdoor equipment.This single
chart represents everalhousanddistinct products.
With complexprocesses,t is often tempting to combine tems,
therebyreducing he complexityof the chart. Simplifying the chart,
however,s not the sameassimplifring the process.Much of the value
of aprocess hart s ts accurateepresentationf the full complexityof
a process. t is an important meansof building consensus nd
understanding or a new spaceplan. A readable hart on large-scale
draftingpapermaybenecessaryo conveyhefull scope ndcomplexity
ofthe process.
lnventory analysis
Task 03.04,Inventory
Analysis,"s mportant for at east wo reasons.
First, inventory s usually he primary or secondary apitalconsumer'
often vying with facilities for this dubioushonor. Second,almosteverydifficulty, problem,or defectn the business ystem ventually omeso
rest in inventory. Inventory thus canbe an indicator of the efficacyof
the business ystem.
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TheMacro-Space-Plan 43
The inventoryanalysis ses inancial and warehouse ata.Thefirst step n the analysiss to preparea chartthat showshistorical annualinventory turns, usually for five to ten years or even further if theinformation is readilyavailable.nventory turns are he total inventoryfrom thefirm'sbalance
heet ivided nto thetotal salesor thepreviousyear.salesnformationusually omesrom the ncomestatemint.Theindustryaverageor the nventory urn also houldbe istedon thechart.The inventory urns for cosmosProductsare llustrated n figure 3.9.
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Figure .7 - Tosk?.03,ProductProcessChort
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44 Facilities lanning
One or more nventoryprofiles ike that in figure 3.10 shouldbe
prepared.These are pie charts or bar graphs hat show the current
distribution of inventory across everal lassifications. production
class rofile shouldshow nventory by raw material,purchasedtems,
finished goods,and work-in-process WIP). A product classprofileshows nventory by product or product group. Other classifications,
suchascustomerWq areuseful n special ituations.
What does nventory analysisdetermine?Trends in inventory
historv can help size storaseareas or the new facilitv or layout. Such
9 . ; F Hi g :
c t c r g g e
Figure3.8 - ProcessChon for a Multi-color, Die-cut Decol
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The Macro-Space-Plan 45
lnventory Thousands f Un ts) Inventory urns30
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Figure3.9 - lnventory HistorylForecost
Average nventory nEquivalentStorageUnits
PurchasedN,4atls237 7y.
Work-ln-Process628 18%
Productron tage
Figure .10- lnventoryAnalysis
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The Macro-Space-Plan 47
The analyst suallyperformsTask 03.06, SpaceAnalysis,',with
assistancerom thosewho are familiar with operations.The analysisbeginswith acurrent drawing of the facility, preferablyonethat showsmajor departmentsand,perhaps,detailsof equipmentand furniture
locations.The colorsor patterns n figure 2.9 are hen used o codemarked-offspace n this drawing.A tlpical result s the existingspacediagram or cosmos Products n figure 3.11.The area or "".h ,p"..class s totaledand a space lass rofile similarro the pie chart abeled"Existing
SpaceProfile" n figure3.11 s prepared.
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Figure3.1 - ExistingSpoce Diogram or Cosmosproducts
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48 Facilities lanning
The collection and presentationof this information can alert
managerso key ssues. s with the other nformationacquisitionasks,
this is an important resultof the spaceanalysis. he analystshould
encouragemanagerso beginaskingsuchquestions s:
' Why do we use40 percent of our facility for storage,yet weconstantly fall short on customerdelivery?' Why are aislesn our facility so disjointed and chaotic?' Why doesProductA require18 percentof our facilitys space
but only generatespercentofour sales nd0.5percentofour profit?
The following is the space nalysis ummary or CosmosProducts'
CosmosProducts:Existing pocesummory
I\{uch of our spaceappears isconnected nd scattered. heexisting
spacediagramshowsno clear,undedying plan. The proPortionsof
spaceuse are better than in many other industries,but could be
improved.Significantopporrunitiesmay exist n reducingstorage nd
traffic areas.Some parts of the plant havenarrow aisles.Others have
overlywide aisles hat becomeWIP storageareas.
Organization analysis
Task 03.06,"OrganizationAnalysis,"hasseveral urposes.t canhelp
determine he sizeof support acilitiessuchas estrooms ndcafeterias.
In office ayouts, t maybe essentialor planningspace asedon work
station requirements. t can help evaluate he current and proposed
space lan. It can assistn formulatinga manufacturingstrategyor in
identi4'ing inconsistenciesetweenstrategyand practice.
Organizationanalysis suallybegins ith a completeandcurrent
organizatronchart rom the personneldepartment. t should ncludeall
departmentsand employees hat usethe facility hdown to the lowest
levil. It alsomight includedepartments nd peoplewho resideoutsidethe facility but havea major impact on operations.An examplemight
be a corporateengineeringdepartment that designsprocesses nd
oroducts but is in a remote location. Names and titles for each
productionworkerarenot needed, ut thereshouldbe an approximate
count for eachsupervisor nd department.
Thesechartscanbecomequite argeandmayhave o beplottedon
large-scale rafting paper,but the chart shouldnot bebroken nto small
sheets.This may be convenient or the analystbut it disguiseshe truenature of large, convoluted organizatrcns.Maximum impact is the aim.
Managersmustdevelopandapprove he sftategicbasisof the space lan,
aswellashe spaceplanitselfFigure3.12shows owto constructthe hart.
After the organ\zationchart is complete,the current spaceplan
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50 Facilit ies lanning
A messydiagramfig.3.13)demonstratesowmanypeople n the
sameorganization units arescatteredhrough the facility. The diagram
by itself does not tell us whether the facility or the organization is
correct; t shows hat they are nconsistent.
ldentifying physical nfrastructure
Physical nfrastructure supports operations or all or most of the
product line but doesnot contribute directly to the process. or this
f
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Figure .13- OrganizationalAnalysis
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The Macro-Space-Plan 5 1
reason, hysical nfrastructureelements o not appearon the processcharts. Infrastructure seldom relates to a single product or productgroup. Examplesare: cafeteria,maintenancedepartment,heating,ventilating andair conditioning space, ndelectricalswitchgear ooms.
Theseelements renecessaryor operations nd heyareessentialo thespaceplan, yet they areeasy o overlook.A physicalnfrastructure hecklist fig. 3.1a) helpscatalog hese
features.using this form involvesstepping hrough thelist with a smallgroup of knowledgeablepeople.Qrestions to askare:
. Is each tem in the current acility?
. Will a similar tem be neede in the newfacility or space lan?This list will be input for the celldefinition task ater n the project.
Utll l t log
I Ouldmr SubshtionO lnd6r Bubtrtion3(s)D Switcho..r F6nO Molor Conkot C.nr.rO Udi.t.iruilibt. por.t
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Figure3.14- Physical nfrastructure Checklist
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5 2 Facilities lanning
Analyzing material flow
In this task, nformationfrom the process nalysiss superimposed n
the current spaceplan. The resulting diagramsbring attention to
materialmovementopportunities. hey also ndicate he need or more
cellularor line productionmodes.This taskalsoprovidesa baselineor
measuring andling mprovementdue o the new acilityor space lan.
Forthis ask, heprocessharts ndlayouts evelopedinTask03.03
andTask 03.06shouldbe used o select ne or more tems o represent
tlpical productsor parts.Lines andarrowsshould racemovementacross
the ayout.The numberofmoves or eachtem shouldbe countedand he
movementdistance or each tem totaled. f the analysissperformed or
many tems, he resultsshouldbe averaged. igure3.15 s an example. t
showsong moves, rossovers,ndbacktracking. his faciJity assignificant
improvement opportunity. Moves between organizational epartmentsalso ndicate mprovementoppornrnity.
Managers are often unaware of the severity of material flow
problems.This analysiswill document hese ssuesn a dramatrcway.
I t helps management ake another step towards consensus,
understanding, nd support.Other typesof material low diagrams re
alsouseful or a more completepicture of the currentmaterial low.
Other issuesOther issues anaffect he ayout.Theyusuallyarisen initial discussion
or during data acquisition.Someexamples re:' a schedulingsystem hat dictatesbatch movement hrough
the plant;' difficulties n hiring skilledpeople hat maypusha company
toward automation;and' external regulationssuch as those in the pharmaceutical
industrythat may dictate unctional operations.Experience ndjudgmentare he bestguides. t minimum, abrief
listing of these ssuess necessary.hey may need significantanalysis.
Thestrategic rameworkAn operationsstrateg'ys the dominant approachor philosophy hat
guides he designof the manufacturing r business ystem.Operations
strategies ften determine he competitiveness ndultimate fate of an
organizatron Strategyleadso structure,aswell as he arrangementand
interconnection f business lements. uchelementsmightbemachine ,
information systems, eople,or facilities.
Strategies xtendoverlongperiods-yearsor decades. heyencompass
all the products and processes,ermeatingeveryareaand aspectofthe
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The Macro-Space-Plan 53
organization They affectand determinethe behaviorof individuals.Operations strateg'ymay be explicit or implicit. An explicit
strateg'ys stated,orally or in writing. Properly promulgated, t guidesdecision-makersn their dailywork,building acommon ramework orboth operational
and structuraldecisions.An implicit strategy, y conrrast,s not written or publici zedassuch. t oftenresultsrom commonunderstandingsboutwhatmattersfor the business. heseunderstandingsmay be rational or senseless,effectiveor ineffective, onsistent r contradictory.
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54 Facilit ies lanning
An implicit strategys determinedonly by watching patternsof
decisionsand behaviorover time. For example,has he organization
evolvedalong unctional ather han product ines? s new equipment
predominantlyhigh-speedand large-scale?s the schedulingsystem
batch-oriented?Even the absence fpatterns is a pattern.Managements responsibleor operations trateg'y.op managers
can abdicate he task of enunciating hat strateg/,but they cannot
relinquish esponsibility or the result.
Determining the framework of an organization'soperations
strateg'v ingeson the identification of heymanufacturingasks,focus
opportunities,ndan operationstrateg umlnar or statement).
Key manufacturing tasks and focus opportunities
The design of a manufacturingplant or businesss like any otherengineeringdesign. t optimizes performanceon somedimensions,
while reducingoptimizationon others.The business nvironmentand
available echnologvplace imits on the design.
This has an analogy n aircraft design.Aerospaceengineerscan
designan aircraft hat fliesat Mach 3.0 or one that carries 50 people.
They candesignan aircraft hat circles he globeon a ew hundredgallons
of fuel or one that lands on a 500-foot runway. However, they cannot
designan aircraft hat doesall ofthe above.n the 1960sSecretary fDefense Robert McNamara tried to buy such a multi-puqposeaircraft
called he TFX. This aircraft did not achievemany goals.
Yet, manvmanagers emand actorieshat producemanyproducts
quickly for manv customers, t the highestqualityand the lowestcost
with output changing rom day to day. Sucha factory acks ocus.A
business peration arelyperformswell on more than two or threeof
thesekey dimensions.An unfocused actoryhas oo many tasksor too
manyproductsor too manyprocessechnologies r too many disparatecustomers.t is often oo arge or effectivemanagement. uchafactory
rarelyperformsany askwell.
Manufacturing focusconcerns he organizationof products and
processes.n the early7970s,WickhamSkinner eco$nizedhat large
factorieswith manyproductsusuallyperformedpoorly. Severalactors
contribute o this effect:
1. A wider range of products usually brings more variery in the
process.This requiresgreatercomplexity n handling, storage,
tooling, changeovers,ndskill requirements.t affects lmostevery
facetofoperations.
2. Awider rangeofproductsoftenmustserve isparate ustomers nd
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3 .
TheMacro-Space-Plan 5 5
markets.One market may regarddelivery speedasa top prioritywhile another demandsquality or customization.Such variedmarketcriteria ncreasehediffi cultyfor manufacturingand decreaseeffectiveness.
Economiesof scalearethe usual ationale or increasing actorysize.Economyof scale efers o the increasing fficiencyasplantiandprorcessesrow n sizeandoutput.The ideawaspopularized yHenry Ford'smass roductionmethods.Wickham Skinnercoinedthe term
"dis-economiesofscale." ncreasing cale ringssuchdis-
economies s ncreased oordinationeffort, isolationof specialtydepartments,and isolation from customers.As a factorygrowsbeyond 300 to 500 persons, he dis-economiesof scalesoon
overcomehe economies.
Larger actories avegreaterdistances etweendepartments. hisincreases aterialhandlingcostsandexacerbateshe solationandcoordinationdiffi culties.
5. unfocused actories ftenhaveextensiveeftical ntegration.verticalintegration with a wider product rangerequiresmore disparate
processes.his requires ar more technicalmastery han a morefocusedoperation.
A focused factory strives for a narrower range of products,customers, r processes.he result s a factory hat is smallerand hasfew key manufacturing tasks.
In recentyears,Skinner's onceptofthe focusedactoryhasbeenextended.Focus is an issuewhen organizing any combination ofproducts, echnology,and people. t
applies o serviceoperations, ofactories, nd o departmentswithin the factory.Itapplieso workstationswithin eachdepartment.The issue s: by what criteriashallwe divideour space, eople,and machinesnto manageable nits?
Thereareseveralpossibleesponses.omeexamples re:products,processes,markets, customers,geographic areas, and supportrequirements.For a morecomplete iscussion foperations ocus, eferto the first chapter of the Handbookof commercialand IndustrialFac i tiesM anagemen .
For the macro-space-planof a factorfi the focus choice usuallynarrows oproductorprocess. product-focusedplantgroupsoperationsinto departmentshat focuson products.Eachdepartmentmust haveall equipmentand skills for all operationt,y.t only processa single
4.
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\
The Macro-Space-Plan 5 7
than process focus. However, firms seldom realize the theoreticalutilization advantage fprocess ocusbecause fthe complexschedulingrequired. In practice, here are severalapproacheso mitigate the
apparentunder-utilizationof product ocus.One way s to designcellsthat maximize he use
ofmajor
equipmentwhile sacrificingusageonlessexpensive eripheralequipment.
Product focus requires a wider range of employee skills andknowledge. his mayplace arge rainingburdens n firms that convertfrom processocus.However, he teamworkand ob enrichment hatresult reduces urnover. Process ocus, on the other hand, allowsconcentrationon processskills, and highly complex and technicalprocessesometimes eed his concentration.
Process-focusedrganizations lpically have erylong throughput
times.As a result, hey cannotrespondquickly to changesn productmix, volume, or special equirements.Many process-focusedlantscounter this with extensive nventories,even though inventory isexpensivend arelyreduceshe responseime on customized roducts.Product ocusallows irmsto eliminate inished-goodsnventorywhileimproving deliveryperformanceand reliability.
Processocus s more lexible,at east n theory.However,severalmeansexist o achieve ood flexibility n product-focusedayouts.For
example, he useof small-scale,mobile equipmentcan allow productfocused ells o be ormed,disassembled,nd re-formednewproducts.
Product ocusgenerallyachieves igh quality evels.This resultsfrom quick feedback,good communication,easycoordination,andhigh commitment.Processocussometimesmayhaveaqualityadv^nt^gefor complexor technicalprocesses.
Product ocus s mostcompatiblewith newerapproachesased nteamworkand empowerment.Processocus ends tself to traditional
commandandcontrolmanagement tyles, ften requiringa substantialhierarchy o dealwith increased oordinationand complexiry.The concepts ffocus and keymanufacturing asksare nterrelated.
Focus dentifies he most important dimensionsand optimizes hem.The business ddresses narrowermarket,but addressest very well.The keymanufacturing asksstatewhat manufacturingmust do well tosurvive n the market.
Process lementsare he equipment,people,and operations hat addvalue o aproduct.They direcdytransformmaterials,nformation, andparts.
Operati ons strategy sum m a y
A sound operationsstrategyaddressesour areas:mission,?rlcess,i nfr as ruc ure, andfa c ies(physical nfras ructure). The site mission
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58 Facilit ies lanning
states, n a few paragraphs, he purposeof the site. It identifies
customers,products, and processes.t defines one to three key
manufacturing asks hat directly correlateo successn the marketplace.
The missionstatementalsomight addressmportant external ssues
suchasenvironmental olicy.The remainderof theoperations trateg'y
summary lows from the mission statement. t stateshow the firm
intends o achieve he key manufacfuring asks.
Infrastructure supports he process ut doesnot directly affect he
product.Non-physical nfrastructure overs wide varietyof elements.
It refers o peopleand nformation systems. xamplesare:scheduling
systems,raining operations, ersonneldepartments, nd tool design
capability.
Physical nfrastructure, s tangibleand is generallysynonymous
with facilities.Buildings, utility systems, oads, and docks are notdirectly n the process tream; ather, hey supportall processes.
A good summaryaddressesachmajor opicat a policy evel.Few
companies aveastrategy ummarysufficient or facility designpurposes.
For suchpurposes,hoseelements f strategyandstructure hat relate
to facilitiesneed o beemphasized. or example, ompensationystems
havemajor effectson organizatronalbehavior ut little consequenceor
the facility plan.
Figure 3.16 providesa structure or a strategy tatement.Suchastatement ormallyconsists fone o fourpages ummarizingthe irm's
intentions or eachstructuralelement.Figure3.77 s the statement or
CosmosProducts.
The absence fan effective ummarypresentshe acilities lanner
with difficult options:'proceed without a summary;'guide management s hey developa stratery;'
write a summarybasedon an idea of what it should say;or' write a summarybasedon what probablywill happen.
Development ofa strategy ummary elieson all ofthe information
collectedduring the first taskgroup.Even this may be insufficient or
a completestatement.Strategicdevelopments a high-level askthat
encompasseslmosteveryaspect f the business.
ldentifying operations strategy
Figure3.18 s heprocedure iagramorTask03.10,Identi$'Operations
Strategy."Block 1 ofthe diagrambeginswith the assembly finformationin a form suitable for a report or presentation.The operations trateg))
outline,Block 2, is alsoneeded.
Block 3, the current position summary,shows he company's
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The Macro-Space-Plan 59
presentstatus.A managementeamshould assistwith this step or atleastconcur hat the summary eflectshe company's urrentsifuation.
Blocks4through6 determinemanagement'seadinessorchange.It is not enough or management, r certain ndividuals, o expressneed for change.The management eam also must be capableofcarrying hroughwith change. he successf a space lan depends nthe organization'sability to support t. For example,a cellularspace lanthat dependson kanbanproductioncontrol and small ot sizesneeds
TechTools
strategyandstructureKey ssues
1.0 Site MissionL l SiteFoils
.1.2 Products' 1.3 Maikets. Volu€s' Gaglaphy
1.4 Multi-Site Integration
1.5 K€y Mmufacturing Tmks1.6 Extemal Strategic ssues
1.7 Political
1.8 Enviromental
I.9 Comunity Involvement
2.0 Process
2.1 Production ode(s).Prcject
. Fuclional
.Cel lula
. Toyota
. Line
. Continuou
2.2 Proess Scale
2.3 Setup/Lot Size
2.4 Capacity. t€ad. T n c k
' lag. R*de
- l l
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2.5 Qulity Capability
2.6 T$hnology Level
^-N-IW7\1]\ \All\Z Z1\
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3.0 Infrastructure3.1 QualityApproach
. Quality Poli@
. qdity at Sou@
3.2 Persomel Policies. Tshtri€l Skill Depth. Tohniel Skill B@dth. Ifferp€mnal Skills. Employm€nt Sffily. CompeNtion. Tnidng'PerfomeMffircnt
. Safety
. Erhi6
3.3 Organization Structure. Fwtional. Producl
. Othq
. D€pth
3.4 Orgmiation Style.Exploitiv€
.B@rcntic
. Consultatiw
. Pdicipativ€
3.5 Acounting Policies. P f f i
. J& C61itrg
. Aclivity-Based A@uilirg
. Overhqd Alletion
. Deision Critsia
. ItuowledgSaelnvestreots
.INqbryAwting
3.6 Production Control. Mrke{coiders, Makb-tcstck.Physicallink
. Br@d€n
. Keban
. MRP
. Reorlcr Point
3.7 SupplierPolicies. S€lEtiooc.iteria. Single / Multiple Soltffi
. Conm Time HoriaN
. Scheduliry Appr@h
. ShippitrgPolici6
4.1 SiteFocus. Prcduct. P f f i
. I{arket. Cpgnphic
. Other
4.2 Site Ircation & Size
4.3 Tmsportation Acc€ss
4.4 Utility Systems
4.5 Expmsion Policies
4.6 Nil Product Flexibility
4.7 New Proess Fluibility
4.8 Resle / DisposalPolicy
4.9 Haadous Waste Policy
4. 0 Endromental Issues
@4.0 Facilities
Figure3.f6 - Strotegy ond Structure Key lssues
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60 Facilities lanning
rapid setup techniquesand participative management.Management
may not have he wherewithal to adopt these echniques.
If managementhasan acceptable trateg'y umma{I, this summary
shouldbeused n subsequentpace lanwork. Ifmanagementexpresses
a desire or operationsstrategiesdifferent from current practices, heir
readinesso make equiredchangesmustbeevaluated. his is a difficult
and sensitive ecision hat requires earsofexperience n institutional
change.Designerswho lack such experience hould seekcounsel rom
the management eam or others n the organization.
MlsslonSib #l ha Mo di$ind missiw @cpondilg
to our &o mjor tr8k6. The* e:
Roll Product - Supply qr ostoren with the
largd vriety of rcll prcdu* in or irdusry wilh
24-hour ship@t atd quality withh lhe top 20% in
our iidusry.
Comercid Produs- Supply high quality
vinyl dcals ad ap,plqua b small dd nrdim sia
|mufamrcF. OrigiMlity dd quality of artistic
d6ign is il itrtcgral pd of dr prcdud mix. We
expd b ship to'/o ofall orderswilhin twe{Ekr
at a reliability of 98ol.. Our products will @fom
to rEogEzad qualfty sbrdards.
At Cm w q @t to be a good ngighbor a|d
integnl pa of or muity. Com6 shold b€
lilM 6. sdbhctory mployers.
ProcassRoll Ploducte Cffic will striv€ for a
produd-f@sod opcdion with the dctprid of
prinBry slittDg *trich seruc both Roll and
Cmial opcroim. we will h.w a mix of large
ard $utl s€lc cquipM in G@p T@tmlo$/
@lls. Rapd stup i5 a importart prioity for
equipdd sl€ti@ ald op€Blio. We will attqnpt
d avFage cquipMt utiliation bwq 60% atd
85%. we will add pr(Bs eprcity 6-12 mths
ahad of daMnd. Pffis shouldharc a M
€gability iDdsxof L4. We wil ffi gEduly to
high€r bh@logj/ p|ffi puitbd they re@NisM wifi dr f{w ffitcgy, @st ustified ad
haw ad.q@ spport.
Co||ercid Producte Cm6 will triw for
ptodud-foq8 witlin thc limits s€tby plrc and
mviourroal requimts. This my diclate
physical *pmio bawo silkscming ad
subsequd opcdi@. Prinary slitring nd sbet
cunirg wiU |@in p|lss f@used. Our prlss
scale will be a mix of largc aDdsnEll @cpordmg
to th€ ordcr mix. Rapil s€tup s d important
priority o the ruller *ale, lw volme pre.
We will attqnpt o arcnge utili*io of 807e90%
m larg$scale silks|q priffi aDd50olc?0% d
dlFi equipMt. We will add snBll-scale equipmotin advd@ of del@d dd brgFscale equipmd
wfio dqMnd is prc@. All cquipM will haw a
midmm oapability index of 1.4. we will strive for
fte laK sd highd t4hDl€y lwel on large{ca.le
silksHing.
IntraslructureC('ffi will triw for a produd.focue4
shallw, multatiw ard infonna.l orgeiz*i@. We
will gradully move Mrds a ptticipatire
ffi+aed org&i4i@ ovc the M five yec.
Our Ming s)ffi shqld a@mmodat
aciivity-bded 6ting using @st &iveB for
overlsd allstio. Wc will u* prcj* mirg forc@ial work ud p|1ss @sting for roll
products. We @ogniz€ the limitatioE of
omtiooal mmtirg systans for maagmt
dsisic.
Prcduaio ontrol will us MRP-ty?€
schcdrli4 for mcial produ* dd supplieN.
We *i[ u$ krnbd s]ffi for inbrul schcduling
of 6ll opediG. Cfficial produd will b€
sidly mkefrrder. Roll prodrd will u$ strEll6"i"h€d goodsst@ls for the highct volw E0o/o f
lim itans. Tlrc mining 20% of lw-volme rcll
produc wiu b6 trEde ro or&r. Unusually large
or&rs ofrcll pJoduG will have c{md€d deliverid
ald be rade to or&r.
At Cffi we will trirc br l@g-bm
reldidBhip wilh rcliable $ppli6. We will sldsupplicF @ lb€ b6is ofquality, d€lirery rcliability
aDd @$ in tld order.
Facllltles
Sit€ fqs will folN @rpoftlwel stEr€gis
d w siB develop. All sib, nw dd in dF fuhre
will haw a ruimm of 200 fiplcyH. Site #l
requic only limired capability for nw prcduc{s
and prms. Significa*ly difrpr@t prws,
such a a esting openrioo" sbotrld hare a separate
sib.
Figure3.17- Physicol nfrastructureStdternent
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TheMacro-Space-Plan 6 1
An organizationmay not want changeor maynot be positionedfor change. f so, he operations trateg.yummaryshould dentify theapproach hat is most ikely to be adopted n practice.
If the organizatron desiresand is ready for significant change,initiating a strategic ebatesa good dea.This debate hould
concludewith a proposedoperations trategJ ummary hat will help the spaceplan designercarryout the new strategyduring the facilitiesplan.
. ftr tu6 qndrys
. tu6n$9.P&
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Figure3. I 8 - Tosk3.10, ldentify Operotions Strotegyd Structure
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62 Facilit ies lanning
One sub-task of Task 03.10 is the identification of focus
opportunities.The conceptoffocus applies o space lans,organi.zatron
,t-rrr.tur"r, and other elementsof the enterprise.Developing an
appropriatestrategy or facility planning means dentifying the most
uppropriut. focus-for the facilities at each level. Thisis not a final
unalyris.Rather, it guides and gives preferreddirections to space
plannersas hey proceedwith their work.
The flo- piocess harts rom Task 03.03canhelp sort this out'
Figure3.19 shows he process harts or the manufacture f cosmetic
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Figure .19- Task?,03,ProductProcessChort
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64 Facilit ies lanning
operationsare hose oo smalland varied or dedicated lants or GT
cells. Process-focusedellsare then developed or these tems. An
alternatives a ob-shop departmentsimilar o a prototypeshop.
Some space plans involve a great number of products and
components, erhapshousandsr tensofthousands.n these ituations,
practicalitymay not allowa detailedanalysis t this point in the macro-
Slngle Protucts \th Adeou.te Volum€
Process Scale I
Z A.o Thefe \
'S l r lngs '0 fS lmi la .
Figure3.20 -Proceduresfor ldentifying FocusOpportunities
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TheMacro-Space-Plan 65
space-planproject. The objective for this sub-task is to identi$'opportunities,not to makedecisions.
For CosmosProducts, hetwo distinctproduct ines-roll productsand commercialproducts-separated naturally into focused actories.However, the slit-and-sheetoperationservedboth product lines. Manylog rolls, when slit, becamestock for both product lines.The narrowwidths necessaryor roll products are a naturalbyproductof slitting forthe wider commercial tems. Maintenance, quality, and severalotherfunctionscannotbesplit economically.For this reason,he design eam'saim became wo semi-focused actorieswithin the same acility, i.e.,plants-within-plant. Severalunctionalareas erve oth focused actories.
Roll productoperationsend hemselves ell to GT cells.However,the large number of items precludesa completeGT analysisat the
macro-space-planevel.The team herefore eveloped composite el lfor roll operations,with the ntention of analyzingtheproces n greaterdetail and designingGT sub-cells t the next design evel.
In commercialproducts, he silk-screen perations all for tightenvironmental ontrol. n addition, he existingsilk-screen resses selarge-scale, igh-technologyequipment.The teamdecided o put twocomposite ells n the commercialarea.The first composite ellwouldinclude silk-screenand any related operations in the controlled
environment.A secondcompositecell would havepost-silk-screenoperationssuch as thermal die-cut, pick-and-peel,and packaging.Thesesmaller-scalerocesses ould be arrangednto GT cells.
Designing the space plan
With adequatenformation and an agreed-upon trateg-y,he actualspaceplan can be designed.The activity to this point may haveconsumedas much as half of the time and resources vailable o theproject. Nevertheless, hese expenditureswere good investments.Managers from all areashave new perspectives.The factual data hastemperedemotions. As the spaceplans develop, debateshould beconstructiveand rational.The final selectionwill enjoy wide supportthanks o management's roaderunderstanding f both business ndtechnical ssues.
Defining space plan cells and processes
Task03.11, rthedefinitionofspaceplanningunitsSPUs),s hemost
fundamentaland important task n space lanning. It establishesheorganizationofspace nd must fit with a correspondingorg anizationofpeopleand processes. oreover,all subsequent ork flows from thistask. An omission or error invalidatesall of the work that follows.
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66 Facilit ies lanning
A procedure hart or this task s n figure3.21.Blocks1 through
3 call for assemblingdeliverables rom all previous tasks. Block 4
reviewsoperationsstrategy. f the strategystatement avorsa process-
focused functional)space lan,planners houldproceedo Block5 and
skip Blocks 11 through 23.
In Block 5, functional and support cells or the spaceplan are
identified by examining he cell definition summary(fig. 3.22), the
space nalysis,he infrastructure hecklist, he process harts,and the
@"r:il* @gi;l@i:$*ii: Pf*treu*
Figure .21- Tosk3. I, DefineSPUsd Processes
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The Macro-Space-Plan 67
organizaironchart. We look for activities,people,or equipment thatwill requirespace.For eachsuch tem, a cell couldbe defined,or theitem could be combinedwith others nto an SPU. Generally. en tothirty SPUsshouldbe identified
In the SPU definition summaV, the spaceplanners shouldidentiSreachSPU with a nameand numberand showthose hat are
included.The spaceplannermay alsospecifyexclusions. he columns
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68 Facilit ies lanning
that show he source f thecelldefinitionshouldbe examinede.g., oes
this activity show up on the organization hart, process hart, or both?).
If the operationsstrategysummarycalls or a product-focused
spaceplan (line, cellular, or Toyota), support cellsstill need to be
identified. However, a product-focused pace lan may absorbmany
indirect activitieswithin the product-focused ells.For example,n an
electronics lant, assembly-integrate-testellseachhad one ofseven
majorproducts.Schedulers,estengineers, ndprocess ngineers at n
the cells. A subsequentorganization ealignmenthad these people
report to cell managers ather han functional managers.
If the plan's strategycalls for product focus, planners should
oroceed o Block 11 to decidewhether a current cell definition is
iatisfactory. If the factory has previously operated with product-
focusedcells, rearranging hem may be all that is needed.Suitabledefinitions may have been developedduring Task 03.10,
"IdentiS,
FocusOpportunities."Now, additional product-focused ells should
be defined. f the current definition is unsatisfactory,he next step s
Block 13.
For a product-focusedpace lan, he plannercandefineproduct-
focusedcellsat the macro- or micro-level.Defining work cellsat the
macro-levels satisfactoryf the likely result s a manageable umber
and f the effort reouired s reasonable. ometimeshis is not the case.For example, n adiquatedefinition might requirean extensive roup
technologyanalysis, hich s nappropriate t he macro-level.Or the e
might bemanysmallcells hat aredifficult to arrange.f so, he planner
should considerusing one or more composite el1s.
A compositecell consists f several mallercells. n the Cosmos
Products example,post-screenoperationsand roll operations end
themselveso cellularmanufacture.Designing he individual cellsand
deciding which productsgo in them is a prolonged,detailed, and
difficult task hat, n this casehasbeenpostponed ntil the nextdesign
level.Therefore,post-screen perations nd roll operations avebeen
definedascomposite ells.This wasnot absolutely ecessary. group
technologyanalysismight havebeenconductedat this macro-level o
identify familiesand define he subcells.
If compositecells are not used at the macro-level,Blocks 14
through 16are he nextstep.Planners valuatehe numberofproducts
and select n appropriate nalysisool. For a smallnumberofproducts,
twenfy or less,he planners houldgo to Block 20, chart he processoreach,and hen use he process harts n Blocks18 and 19. n Block 18,
the space lanner dentifiespreliminarypart families; n Block 19, the
cellsare defined.
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The Macro-Space-Plan 69
For a moderatenumberofproducts, ess han 100but more thantwenfy,production flow analysiss used.The process hen moves oBlock 18 for definingproduct familiesand Block 19 for defining thecorresponding ells.
_ Y""y products (more than 100) will probably require aclassification nd codinganalysis. his is anextensive ndertakingbutonewith significantbenefits.
After defining SPUs, it is time ro review the processesorimprovement. The processanalysisat this level may be general.Examining he processurthermaybedoneduring the detailingof thelayoutat the micro-level.
In Block 7, the spaceplanner determineskey equipmentrequirements. his is not alwaysa complete ist; rather, t identifies
1aj9r equipment hat occupies ignificantspaceor needssignificantfunding. In Block 8, capaciry s checked.Normally, this apaciryanalysiss confined o key equipmentor known bottlenecks.piocess
charts or anysignificantprocess evisions nd a list of keyequipmentmight alsobe helpful.
When complete,a cell definition summary is in place. Celldefinition should ncludeeveryspace r featurenecessaryor the ner"plant. t isnot always nelaborate ocument.Everyonenvolvedshould
know what eachSPU conrainsandwhat it will not contain.Thesearethe building blocks or the new ayout.
Because ell definition is so crucialro the remaining activities,planners houldcirculatet widely or commenrand nput. In addition,decision-makers ustapprovetbefore space lanningcango forward.
Cosmos ell andprocessdefinitionPart of the cell definition for cosmos Products s illustrated n figure
3.22.The operational ellscomedirectly rom the focusstudyofrask03.11.other cellsarederived rom the existingprocessh"rt, and thephysical nfrastructure checklist.
For example,SPU 01 is silk-screenoperations. t includessilk-screenprinting, drlang, baking, and humidifying and excludesscreenpreparationandsubsequentperations. he teamcreatedhis sPU fromthe existingspacediagramand also rom the existingprocess hart.
Cell04 ispost-screen perations.t includeshermaldie-cutting,pick-and-peel, masking, labeling, inspection, and packaging.Th1existingspace lan had no areawith this label.This spu was derivedfrom the process hartsand the strategy tatement.
Figure3.23 s the revised rocess heet or cosmos'smulti-colorcommercial amily of products.comparing this illustrarionto figure
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70 Facilities lanning
3.8revealshat thevalueadded ndex(VAI) has ncreasedrom 0.20 o
0.30. The number of elements has decreased rom 78 to 50.
Improvements fthis magnitude 30 o 50 percent)arenot uncommon
in layout-reengineering rojects.The dotted envelopesn figure 3'23
represent he cellswhere the processactivitiesoccur. Most ofthe
g 6 )
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Figure 3.23 - Revised Process For Multi-Color Die Cut Product
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The Macro-Space-Plan 7 1
processmprovements t cosmosare rom the eliminationoftransport,storage'and delayelements,which are renderedunnecessary henprocessesccur n the same ocation.This is the powerof a product-focusedspace lan.
Materialflow analysisIn Task03.12,theanalyst sesnformationgathered arlier o calculatematerial low berween ach ombinationof SPU pairs.Additional datamaybe neededor this calculationo establishhe affinitiesassociatedwith material flow. Figure 3.24 shows he procedure or this analysis.
In manufacturing,materialflow is usuallyan important factor inlayout.For non-manufacturing pace lans,materialho* -"y not berelevant,and this taskprobablywill not apply.Berween he extremes,the relative mportance of material flow for establishingaffinities willvary considerably.
Material flowvaluesareoneof two inputsfor affinitv develooment.Asspace landesign rogressesndseveralptionsareunderconsideration,the materialflow analysis anassistn evaluating heseoptions. Later,flow calculations rovide a basis or handling tyri.- design.
From the P-Vsummary,process harrsandobservaiionBlock 1)materials are classified nto manageablegroups (Block 2). This
classification ssistsn developing commonunit for measuringlow,the equivalentlow unit (EFU). A classification ummary s oneof thedeliverablesor Task 03.72.
Usually these groups number less than twenty-five. They arebased n material-handling haracteristics.trucruraishapesmight beone group in a metal-working factory. It would include steel andaluminumshapeshat are en to twentyfeet n length.Another groupmight be smallparts-items definedas ess han four ounces ttd l.ttthan three nches
on anydimension.In Block 3 of the procedure, lannerschoosean EFU. This is atwo-part measure:material-unitsper time-unit suchaspailetsper day(metalworking); cartonsper hour (grocerydistributionj; tor* p* d,iy(steel oundry);or totesper day(electronics).
When there s one type of material, his step s easy. tuses thenormal unit suchas ons or pieces. uch situationr"r. rare,however.Most layoutsdealwith a wide rangeof materialmovement.
Materials also may changeform. A sheet metal cabinet forcomputersbeginsasa flat sheet hat is difficult to handle.cutting andforming increaseshe difficulry and bulk by an order of magnilude.Paint makes t delicateand susceptibleo damage.packagiirgthenallows t to be nestedand stacked, endering it lesi delicate."
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7 2 Facilit ies lanning
Figure 3.25 illustrates hesechanges n a quantified schematic
flow diagram.The lines epresentmovement,and heirwidth represents
the flow rate in equivalentpalletsper week. The flow rate in units per
week s constant hroughout he process. owever, he changen size,
features, delicacy, and packaging changeshe equivalent flow as it
moves rom one ooeration o the next.
5
OalaSource. ProcessChafrs. P-V Oata
MRPDatabaae. Rout ingOataba6e. Obaervation
. Handl in0Records
. Work Sampl ing
. Schedul€Est imates
. opinion
Extaol Data
Figure .24 -Task3.l2, AnalyzeMaterial Flow
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The Macro-Space-Plan 73
The sourceof data s determined n Block 4 of Fig. 3.24. Forsimple flow situations, he P-v analysisand processchartsprovide allthe necessarynformation. In complex situations, the proiess chartsmaybe too manyor too complex;sometimesmoves akeplace hat arenot in the official process.These must be identified
from other datasources uchas he MRP database,materialhandling records,direct
0.6 EFU/Day1.0EFU/Day Stacked Sheots
On Pallot
5.0 EFU/DayShearedBlanks, EachItem On Separate Pallst
8.0 EFU/Day Punch6dand Formed,Non-Stackable
40.0EFU/Day Weld€d Cabinets
60.0 EFU/Day Susceotable oPaintDamage
30.0EFUDay
30.0EFU/Day
ToCustomer
Figure3.25- Changesn Material Flow
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74 Facilit ies lanning
observation, r random samplingasoutlined n Block 5.
Block 6 marks he extractionof data.Again, for simplesituations,
only the process hartsand the P-V information arenecessary.or each
moveon the process hart, he plannerdeterminesf a similarmovewill
existwhen he new SPUsareused.He or she hendeterminesheflow unit
andthe number of flow units perdayrequired o meet he sales orecast.
Other data sourcesmay need significantmanipulation. Each
space lan project s uniquewith respect o flow data.Experience nd
common sense re he main guides.
Block 7 formats the data, usually on a comPuterspreadsheet r
database.n Block 8, he lowis calibratedusingtheAEIOLIXconventions(seeig.2.9).This is doneon arankedbargraphwithhe SPUpairsalong
one axisand lowrates on the other.The rating shouldbedonemanually.
The affinity distribution in figure 2.10 should be used only asa guide,because ther factorsalso are nvolved. For example,discontinuities n
the curve naturally divide one rating from another.A{finity pairs that
havezero flow between hem get a"IJ"
rating.
The procedureorTask03.12 s llustratedbytheCosmosproject.
Basedon the nformation rom Block 1, the materialswere lassified s
follows:
Log Ro lrThese vinyl stockrolls are36 inches ong and abott 12
inches n diameter.They weigh about200 pounds.SIit Rolts-Vinyl stock rolls are rolls that have been slit and
rewoundon smaller ores. hey range rom 6 to 20 nchesn length and
less han 5 inches n diameter.Weights are ess han 40 pounds.
Roll PacLages-:fhese repacked oll productssimilar o cellophane
tapeor masking ape The largestareabout5 inches n diameterand4
inches n length. Most aremuch smaller.
Sbeets-Theseargesheets fvinyl stockor decalmaterial,average24
inchesby 60inchesand remain lat throughout he process ndshipping.
PackagedSheerr-Theseare decal sheetspackaged n corrugated
boxes.The boxesand packingsignificantly ncreaseheir volumebut
reduce he delicacy equired n handling.
Much ofthe materialhandling n the plant s doneusinghandcarts
with four-wheelcastors, oahandcartwas sedasanEFU. This offered
severaladvantage .It was easy o visualize he handcartbeing used or
all materialsand to developconversion actors rom that vision. In the
newlayout,handcarts ndoubtedlywould emain heprimarymeans f
movement.Table 3.1 s the outputof Block 7 and he deliverableor Block 9
on the procedurediagram.This table shows he material flow analysis
for CosmosProducts.The materialclassesre at the top left. Next to
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TheMacro-Space-Plan 75
EFU=Equivalentand artsLogRolls 0.500SlitRolls 0.071RollPackagesSheetsPackagedheets
(A) (B) (C) (D) (E) (F) (c) (H) fl) (J) (K) (D (M)Fwd Rev Tot Flo Flo Flol N_F N_FTot To t
From Units Units EFU EFUsVow Num N-F Vow NumNum ow-To Unirs /Day lDay Fact /Day Rtg Rtg Ratio Rtg Rtg Scr Rtg
0.0040.1670.250
69.0 0]769.0 0.17
u 0 1 . 2 5 A 4 2 . 0 0 Et 2 1 . 2 5 A 4 3 . 2 5 At 2 1 2 5 E 3 2 . 7 5 E
u 0 1 . 2 5 0 1 0 . 5 0 0u 0 1 . 2 5 | 2 1 . 0 0 Iu 0 1 . 2 5 | 2 1 . 0 0 |u 0 1 . 2 5 | 2 1 . 0 0u 0 | 2 5 | 2 1 . 0 0 |u 0 1 . 2 5 E 3 1 . 5 0 |u 0 1 . 2 5 A 4 2 . 0 0 E0 1 1 2 5 E 3 2 . 1 3 Eu 0 1 . 2 5 0 1 0 . 5 0 0A 4 1 . 2 5 | 2 3 . 5 0 Ao
'l1.25 U 0 0.63 |
u 0 1 . 2 5 0 1 0 . 5 0 0uo 1 .25 | 2 i .00 |uo 1 .25 0 1 0 .50 0
u 0 1 . 2 5 0 1 0 . 5 0 0E 3 1 . 2 5 E 3 3 . 3 8 Au 0 1 . 2 5 | 2 1 . 0 0 |u 0 1 . 2 5 0 1 0 . 5 0 0u 0 1 . 2 5 0 1 0 5 0 0u 0 1 . 2 5 0 1 0 . 5 0 0u 0 1 . 2 5 0 1 0 . 5 0 0t 2 1 . 2 5 | 2 2 . 2 5 El 2 1 . 2 5 | 2 2 . 2 5 E
0 1 1 . 2 5 U 0 0 . 6 3 |u 0 1 . 2 5 0 1 0 . 5 0 0
u 0 1 . 2 5 0 1 0 . 5 0 0u 0 1 . 2 5 0 1 0 . 5 0 0l 2 1 . 2 5 0 1 1 . 7 5 E
u 0 1 . 2 5 0 I 0 . 5 0 0A 4 1 . 2 5 | 2 3 . 5 0 Au 0 1 . 2 5 0 1 0 . 5 0 0u 0 1 . 2 5 0 1 0 . 5 0 0u 0 1 . 2 5 0 1 0 . 5 0 0u 0 1 . 2 5 0 1 0 . 5 0 0u 0 1 . 2 5 E 3 1 . 5 0 |u 0 1 . 2 5 | 2 1 . 0 0 Iu 0 1 . 2 5 0 1 0 . 5 0 0
u 0 1 . 2 5 0 1 0 . 5 0 0
11.5'11.5
c . l.11
01-0201-04 SHTS01-05 SHTS01-08Q1-1201-13
01-1401-1502-1103-04O3-05 SLITS03-0603-08 PKGS03-10 PMAT03-1203-1303-14
03-1504-09 SHTSo4-1104-1204-'13o4-1404-1505-06 SLITS05-07 LOGS05-09 LOGS05-1305-1405-1507-10 LOGS07-1208-09 PKGS 2134.008-1208-1309-1009-1210-1411-1211-13
12-13
0.01 19.2o.25 1.8
o.25 17
0.11 10,10.50 11.70.50 0.1
0.50 11.7
0.01 19.2
TABLE3.1
7.3
46.0 46.023.4
0.2
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76 Facilities lanning
eachclass escriptors the EFU conversionactor,which convertshe
materialunit into an EFU. Each conversionactor s the nverseof the
number of flow units that fit onto the cart.A cart usuallycarriesnvo log
rolls, or example, o ts conversionactor s 0.5.The SPU pairsare n
column A of table 3.1. Column B shows he flow units-slit rolls,
sheets, tc. Columns C andD indicate he flow rate.
Pathsshouldbespecified sing wo numericalSPU dentifiers.n the
Cosmosexample, 3 referso roll operations, nd06refers o intermediate
storage. he flowpath betweenhem s 03 to 06.To avoidduplicationand
possible rrors,planners houlduseonly the forwardpath-the SPUwith
the lowest number followed by each SPU numberedabove t. When
materialmoves rom ahighernumberedSPUto a ower numberedSPU,
it is calledreverse low. The total material flow is the sum of the forward
and reverse lows. Column F in the Cosmosmodel is the flow totalsmultiplied by the EFU factor.This result s the averagelow rate n EFUs
perday. Column G shows he vowel rating for each low path.
Figure3.26showshe flow calibration or CosmosProducts. his
is Block 8 on the procedure hart and is typicalofa product focused
layout. t has a smallnumberof high flow ratesand many SPU pairs
with zero low. Process-focusedayoutshavea muchbroaderdistribution
of flows commensurate ith their complexnatures.
0 3 > 0 8 0 B > 0 9 0 4 > 0 9 0 5 > 0 7 0 7 > 1 0 0 1 > 0 4 0 1 > 0 5 0 5 > 0 6 0 3 > 0 5 0 3 > r 0 0 5 > 0 9
From-To SPUS
Figure 3.25 - Moteriol Flow Colibrotion
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The Macro-Space-Plan 77
Identifyi ng non-flow affin itiesMaterial flow is only one of many factors that give rise to affinities.other factorsare ntangibleand moredifficult to quantifr. Examplesoftheseactors re: ersonal ommunication;heneed o transferperionnelbetweencellsor departments;movement o and from the cafeteria rrestrooms;quality feedback;oint teamworkcommunications; ccessby outsidevisitorslRF communicationsequirement;and other site-specificneeds.
Figure3-27shows chart or recordingnon-flow affinities hat arsomay be usedto documenrflow affinitie, J, total affinities. Diagonalsrepresent achSPU.When theycross,hey orm a diamond. n theupperhalf of the diamond, the affiniry rating is recordedusing the vowel or
Figure?.27- Affinity Chor-t
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78 Facilit ies lanning
number scaleshown n figure 2.9.The lowerhalf of the diamond is the
place o record he primary factor(s) hat gave ise to the affinity.
These non-flow affinities are independent of material flow
requirements. he problem ies n capturing hem.In Task03.14 they
aremergedwith affinitiesfor an overallor total affinity rating.A survey,
consensusmeeting,or personalevaluationmay alsobe used.
A consensusmeetingthat assemblesepresentativesrom each
department r SPU s usuallyhe bestapproachor accomplishing ask
03.13.The analystactsas acilitator.Using the affinity chartof figure
3.27 he or sheexplainshe need or affinity ratings, he chart,and the
desireddistribution.The group considers achpair of SPUs,one at a
time, and discusseshe relationships.
Using the conventions n figure 2.9' they decideon a rating.
Initially, thesediscussions re rather long. After five to ten ratings,however, the group will begin to agreereadily. A scribe recordsthe
ratingsandkeeps he group focusedby displaying he current SPU pair
oncards.Frequently,corollaryissuesrise'Thesemayresultinconstraints
or even evisionsof the SPU definition.
Participantsn a consensus eetingemergeeeling hat theyhave
beenpart of the overallproject.This is important. When they seehow
their input led directly to a sPaceplan, they will have increased
commitment to the space lans hat finally emerge.Another methodofidentifying non-flow affinities nvolves ending
questionnaireso representativesn eachdepartment.The questionnaire
askshem to list other departments, reas, ndpeople hat mustbenear
each other. The resultsare then assembled,nterpreted,and ratings
developed sing he scaleand conventionsn figure 2.9.This method
is effective for large projects with fifty or more SPUs and many
affinities. However, it does not allow the participants to develop a
commonunderstandinghroughdiscussion. he participantsmaynot
trust the judgment of the person who intelprets the surveysand
corollary ssuesmay not bebrought out.
A third method spersonal valuation,which usesa singleudge
to determineaffinities.He or shemusthave ntimateknowledgeofthe
operations. his often s the analyst, ut he or shemayalsobe a strong
leader, erhapshe plantmanager r CEO. This is a quickmethodand
may be effective for small projects. This, however, does not build
consensusnd may be divisive.Corollary ssuesmay remainhidden.
Merging affinities
Two sets faffinitiesnowexist.The developmentofflowaffinities sed
a quantitativeapproach.Non-flow affinitiesby their nature precludea
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The Macro-Space-Plan 79
quantitative pproach ndwere dentifiedby a consensusr someothernon-quantitative pproach. hesemustnowbemergednto a singlesetof affinities(fig.3.28). This is Task 03.14.
A spreadsheetreatedby hand or computer s usually he moststraightforward method of merging. Table i.2 is an extensionof thespreadsheetn table 3.1. These columns are put in after columnsA through D.
Column E: Vowel Non-Flow Rating (Enter Manuallv)Column F: Numeric Non-Flow Rati"g (Enter tr,t""u"ity;Column G: FlodNon-Flow Ratio(EnterManually)ColumnH: MergedScore:Col.Ax Col. F + Col. p x (f - Col. F)Column I: Merged Vowel Rating (Enter Manually)Plannersshould add rows for all remaining combinationsof
SPUs,sort he rows n themergedscore olumn(col. u) in descendingorder,andplot themerged cores n a rankedbarchart.From thechart.
EFU=Equivalentand artsLogRolls
Sli tRolls0.5000.071
RollPackages 0.004
Sheets u . l o /Packagedheets 0.250
From-To Units
(ct (DlFwd Rev
Units/ Units/
Day Day
(El (Ft (ct tH)Tot Flo Flo
EFU EFUs/ VowNum
Fact Day Rtg Rtg
(BlA)
03-08 PKGS
08-09 PKGS04-09 SHTS
05-07 LOGS
07-10 LOGS
01-04 SHTS
01-05 SHTS
05-06 SLITS
03-05 SLITS
03_10 PMAT
05-09 LOGS
2134.0
21234.069.0
zJ .4
23.4
69.0A q n
46.0 46.0
46.0
TABLE3.2
0.01 19.2
0.01 19.20.25 17.3
0.50 11.7
0.50 11.7
0.17 11.5
0.17 11.5
0.11 10.1
0.11 5.1
0.25 1.8
0.50 0.1
A 4
A 4t r J
t z
t 2t 2t 2t 2
o 1o 1
o 1
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80 Facilities lanning
they shouldassigna mergedvowelrating (Col. I).
Deciding the relative importance of flow and non-flow factors
depends n the ndustry,process,ndother nfluences. eavyindustries
such as steel or shipbuilding warrant a flodnon-flow ratio up to 2.0.
Office areas nd ndustries hat dependheavilyon personalcontactmay
have atios as ow as0.5.
3
D e t e r m n e F l o w /
N o n - F l o wR a t i o
4
M e r g e U s i n OW e i g h t e d
A v e r g a e T e c h n i q u e
P r e p a r e A t f i n i t y
D i s t r i bu t aon a r c h a i l
8
D e i v e r a b l e i
. M e r g e d A f f i n i t y C h a r i
O r. MergedAf f i n i t y i6 t
Figure .28 Tosk 03.14,MergeAffinities
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The Macro-Space-Plan 8 1
Generally, he same lodnon-flowratio should be used or all the
affinities on the spaceplan. Occasionally,however, specific affinities
may have o be modified for special ircumstances.
Next, the total affinities must be rated. When assigning the
mergedvowel rating, the analystshouldconsider wo factors. First, heor she should strive for a workable distribution of ratings similar to
thoseshown n figure 2.9,\n addition, a searchor natural breaksor
discontinuities n the distribution avoidshaving nearly dentical scores
with different ratings.Accuracy s not paramount n this process.
Developing a configuration diagram
In Task 03.15, merged ratings are used to develop a configuration
diagram.The configurationdiagram s he firstofthe derivedelements.
It comes rom cell definitions,affinities,and experience. he graphicswork may be done on a CAD system or other software. However,
manual development s straightforward and often quicker.
To develop he affinitydiagram, the analystplaceshe A affinities
and their associated PU symbols irst, then adds he E affinities.At
this point, rearranging he diagram s desirable.Next, the I affinities are
addedand the diagram s rearrangedagain. He or she inisheswith the
O affinities, which usually will have ittle effect on the diagram..
Striving for short distancesbetween he As and Es with minimalcrossing s a worthwhile goal. Multiple crossingsmight create raffic
congestionon the final spaceplan. Lower value affinities probably will
have onger distances. he high valueA and E affinities will have short
distances. ttempting to fit this diagram nto a buiiding environment at
thispoint is not advised. omeexcellent rrangementsmaybeovedooked.
Figure 3.29 illustratesthe diagram developed or the Cosmos
project. Step 1 features he SPU symbols.Step 2 shows he A and E
affinities n an undesirable rrangement.Step3 shows he rearrangementof the A and E affinities and the addition of the I affinities. Another
rearrangements llustrated n Step4. Finally, n Step5, theaffinitieshave
beenrearangedagain,and the O af{inities added.
The Cosmosconfigurationdiagram n figure3.29 s only one of
many possible diagrams hat usesthis combination of SPUs and
affinities. t canbe mirrored or rotated.There may be other positions
for the SPUs that give the same or better results.Some of these
variationswill fit thebuilding be ter than others.However, it isbestnot
to ump aheadand anticipate he shapeofthe building. It is worthwhile
to ask severalpeople to develop diagrams, thereby ensuring a wide
selectionof possibilities.
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82 Facilit ies lanning
q)
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Figure3.29- Affinity Diogram
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TheMacro-Space-Plan
Space calculation
Space s the third fundamental elementof a space lan. It is a imitedresource; here is only so much spaceunder a roof, on a site, or in a
department.Whether the spaces and on a site or spacen a building,
it is usuallyexpensiveAlthough spaces three-dimensional, most spaceplans ignore
the vertical dimension.This is acceptablen all but a few situations.
Most layoutsattempt to optimize the useof spaceaswell as tsarrangement.A complete space lan requiresnot only the location ofSPUs,but their size and shapeaswell. The spaceoccupiedby SPUsusually prevents the designer from honoring all affinities
B3
tro - - -H s F F = S . s : : F F p p E E . e+ . € € € F F € € € € € E b € h € E? . C o o o \ 2 I a a a a a - o i 6 9 a o
l Z f c c c F F c c C C c c c c F c o= o (o (o ( ;i ;i (o (o ( cg o o o o ;r g Io o = F a t s f r i F F ; i t r } . , & . . F d - a
9 l ^ r o@ E 6 o 9 { o o R P o o l * o o , ^ - o s
E , E E g F F E S E E F g S E S F E- E . . , c
H _ E 0 S € e A x E o P R R * o . . bi - w =. : (o .oor , f i b b S 3 R i g 3 R 3
zE - b o
t - E o E ' ' , f i ' H e' E H H q g ' { E * E " .F ? 3 * F a t . P u o * 6 i vr F EE E H g xEq l Hf , E ? V , ? F = € 8 6 : E 8 € H #, " GE PE 6 E# 5 EE € Ed Se 5 8 8 3 8 8 b 8 8 P = s p s p e
TABLE3.3
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84 Facilit ies lanning
simultaneously.enveenhem, tforcescompromisesbove ndbeyondthosearrivedat n the configurationdiagram.The space eeds f SPUsmay distort evena neadyperfectdiagram.
Task03.16calculatesizeofthe requiredspaceor eachSPU,usually
in squareeetor squaremeters.Calculationofspace equirements ses neor more of six methods.These methodsare:elemental alculation.isuale ima ing, transformation, pacetandards,roportioning,or ratioforecasing.Table 3.3 showsCosmos Products'space equirementsand how theanalysts sedseveralmethods or the calculation.
Elementol colculotionThis method, llustrated n figure3.30, startsat the most detailedevel.Eachpieceof fumiture or equipmentassignedo an SPU is measured. hese
dimensionsare hen added ogether or the total amount of space.Spaceoraisles,miscellaneoustorage,r otherneeds realso nduded n thesum.Thisaddedspace ften s a percentagef the basicequipment pace.
Elementalcalculations simpleandstraightforward.However, t hasits limitations. For one, t takesconsiderableime and effort. Uncertainforecastscan make it difficult to determine how much furniture orequipmentwilloccupythe pace. lementalestimatingis rimarilya short-term methodology.Most industriesuse t for one to threeyears n the
future.Beyond hat, other methodsareequallyandperhapsmorereliable
DevelopEquipmentlnformation
Capacity/Process/Sales nformation
Figure?,30- ComputingSpoce,Elementol Colculation
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The Macro-Space-Plan 87
Figure 3.33 - Computing Space, Standard Dato
Handling\Storage 334"/o
SecondaryProcess 3023o/o
Primary rocess2419"/o
Standard roportionsOf Existing acility
New Facility
Figure?.34- Computing Space,Proportioning
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88 Facilit ies lanning
ProportioningCertain typesofspacecalculationuseproportions effectively.The spacefor a given SPU comes from the calculation of another space. For
example, islesmightbe apercentagefproductionspace, r conferenceroom spacemay be a
portionof
office space. igure 3.34 llustrates.Proportioning workswell when the history to support t exists. t
usually applies to only a few types of space,however. Proportioning
requires ittle effort.
Ratio forecasting
Ratio forecasting seshistorical rends o forecast pace.n this method,business arameters nd spaceare correlatedover time. Such ratios maychangegradually overthe years.The analyst hen projects he trend of this
ratio into future yearsand uses hat projection to calculatespace.Ratio forecasting,which is based on historical data, is most
appropriate or long-term site plans. t has imited use or short-term
space alculations.
ThespaceplanprimitiveThe next step n the progression s the space lanprimitive, which involves
adding space o the configuration diagram(s). The space equirements
come rom the calculations ndspace ummary(Task03.16). he CosmosProductsspace lan primitive is illustrated n figure 3.35.
The spaceplan primitive begins with a configuration diagram.Using an appropriatescale,designersplace a squareor rectanglewiththe SPUs calculatedareaneareach SPU symbol. In step2, designerseither moveeachspaceblockunderneath the SPU symbol or move the
SPU symbol over each space block. As the space plan primitivedevelops, twill have o be stretched o accommodate he spacewithout
overlaps.The resultshould be a compact arrangement hat honors theaffinities as closely as possible. Although designers should begin
anticipating a building shapeat this time, they should not strive for a
final layout.
ConstraintsMany factors hat affecta macro-layoutdo not fit the conceptsof SPUs,space, nd affinities.These areconstraints.Someexamples re:
. Column spacingof 32 feet restrictsthe placementof aisles
and someequipment.' High electrical oad restrictsthe placementof heat treat
ovens o certain areaswith adequateelectricalservice.. A cold climate dictates hat dock doors should not have
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The Macro-Space-Plan 89
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Figure3.35- CosmosSpaceplanprimitive
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90 Facilit ies lanning
northernexposure.' zoning requirements pecify hat docksnot face he street;' floor loading restricts he placementof certainequipment;' explosionhazarddictates that ahazatdouschemical room
havean explosion ent on an outsidewall; and' the companypresident equests window for his office'
A form for identif ing constraintsTask03.19) s shown n figure3.36.
The SPUsare istedon the eft and acrosshe toP' majorcategories re
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The Macro-Space-Plan 9 1
identified.These nclude siteconditions,utilities,handlingmethods,personnel,proceduresand controls, shaperario, and oihers. Theaccumulated roject documentation or eachspu and categoryarereviewed,and the constraintsare isted.A bullet or checkassociates
eachconstraintwith a particularsPU. some constraintsapply to allSPUs. In this situation the bullet goes n rhe "general"rtw. The
following is a descriptionof CosmosProducts orrftrairrts:Aestheticy'The nafureof cosmos products s artistic.Therefore,
the aesthetics f the building andsurroundingss important. cosmoswants to present tself well to customersand other visitors.A pleasantsurroundingwill help aftract he bestcommercialartists.The aestheticsissueapplieso shippingandreceivingareas, hich areoftenunsightly. talsoapplies o the artwork,administration,andemployee
ervice"areas.TruckAccess-Thiss anothersitecondition.Trucks needaccessto both shippingand eceiving. osmos s ortunate n this respect. hesitehasgood accessn both the north and southsides.
Forkrrucks--Handling in someareas ses orklift trucks.Adequateaislewidthson the mainaisles ndselectedepartrnental isles renecessaq/.
c ar s-s mallcartsconveymaterialsn manyareas.Here, narroweraisleswill suffice.
EasyAccess-Thissa personnelssue.Administration,employee
service,andmaintenance ll requireeasyandnviting accessorpeople.Press ines-Aspect ratio refers o the relative ength andwidtl of
SPUs. Silk-screen rinting operations equirea mini*mum enqth toaccommodatehe ongpressines.
Utilitier-Certain sPUsrequirewater,sewer, ndairconditioning.Next, this constraintsummaryand he space lanprimitive will be
used o preparespace lan options.
Designingmacro-space-plans]h9.space
plan primitive now must fit into a building outline. Thebuilding may existor it maybe a proposed trucrure.
_Preparing pace lanoptionsbeginswith overlayinghe building
:":]tl.with a space lan primitive.The space locksareshaped o fi i
building walls,columns,andother featur.r.Th" constraintsr.--uryshouldbe consultedduring the placementof eachSpU.
_For each pace lanprimitive, hereprobablywillbeseveral iable
layouts.All variationsof the primitives, ncludingmirror imagesandrotations,shouldbe examined.
I_tmaybe difficult to matchspace, onor constraints, nd designan orderlyarrangement.n general,designers houldstrive or clean,rectangularareas. pace equirementsmay have o be compromised.
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9 2 Facilities lanning
The original spacecalculationsare usually lexiblewithin a reasonable
range-10 to 20 percent.
Oneofthe macro-space-planptions Option 1) rom theCosmos
project is illustrated in figure 3.37. This option is based on the
operations trategy, hich called or aproduct-focusedpace lanusingcellularmanufacturing echniques nd focused actories.
The soace etween he two originalbuildinqs s now enclosedo
u..o--od"te the increasedspace"requiremen;
and also to allow
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The Macro-Space-Plan 93
improvedmaterial low between hebuildingsand o the shippingandreceivingdocks.Eachof the old buildingshasbecom. u ,.-ilfoi,rr.df?,:oty,with roll productson the left andcommerciar roductson theright. In the centerare slit-and-sheetoperations, hi.h serveboth
focusedactories. ervice acilitiessuchasqualityassurance,mployeeservices, nd maintenanceare also in u i.ntr"l location. Ariwork,administration,andemployee ervicesace he street.This satisfiesheaesthetic onstraints.
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Figure?.38- Option 2 of the Mocro-Spoceplansfor the Cosrnosproject
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94 Facilit ies lanning
Some Cosmosmanagershad reservations bout the product-
focusedstrategyadopted in Task 03.10. Therefore, an additional
macro-space-planasedon continuingthe process-focusedpproach'n", pr.p"..d. The resultwasO ption2 (fig.3.38),which mitigated heir
.orri.rnr and demonstratedhe relativeadvantagesnd disadvantagesof processand product focus. t was preparedas a second,parallel
proJect tarting romTask03.10.The process-focusedtrategy tatement
produceda differentsetof sPUs, affinities,and space equirements.
Option 2 retains he aislesystemandmanyof the goodfeatures
of Ontion 1. Functionaland semi-functionalareas uchas shipping,
receiving, nd artworkhavemanyof the same haracteristics.hey are
often n the same ocation.Some unctionalSPUssuchasstorage reas
need significantly more space.Processareaschangetheir names,
characters, pace equirements,and other characteristics.Option 2
needsabout 10 percentmore space han option 1. This additional
spaces in a building expansion n the eastside.
For mostmacro-space-planningrojects,herewill be hree o six
fundamentally different options and severalvariations.using the
existing ayout-or simplydoing nothing*is alwaysan option' Even
when the existingspace lan s no longerviable, t makesa convenient
baselineorgauging mprovement. he Cosmos roject eamdeveloped
several ther options,which arenot included n this book.
Aisles
Aisles presentspecialproblems.They should be straight and wide
.r,o.rgh fot two-way traffic. Usually, the bestapproach dentifies main
aislesas a separateSPU. Designers hen place hem on the macro-
space-plan.Departmentalaisles,on the other hand, are within the
spacecalculations or eachSPU. Aisles adjacent o walls are often
undesirable ecausehey serveonly oneside.An alternateapproach ncludesall aislesas Part of the SPUs'
Designers hen placesPUs on the plan, recognizing hat thosemain
aisles enerallywill follow the SPUboundaries.
ihe straightforwardCosmosspace lans n figures3.37 and3'38
use he first method.Main aisles avea separatealculationand every
SPU s adjacento a main aisle.A central oopallowscontinuous raffic
in both directions.A singledead-endaisleserves creen repandpart
of the silk-screening peration.This aisle ystemwill allowsubsequent
layoutchangeswithout disturbing he basic low pattern.
ldentifying ey material andlingssues
Material handling and layout are intertwined. The best handling
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The Macro-Space-Plan 95
system epends n the space lanandthebestspace lan maydependon handiingmethods.often, a ayout hat doesnotworkwitir manualhandling becomes iablewith automatedor conveyorizedhandling.
This presentsa chicken-or-the-eggproblem. Are handling
equipment and containers selectedbefore the rayout? s the layoutdesigned irst andthe handling system hen serected?sually, the bestapproach is to design the layout assuming conventionai p"rh"p,manual handling. This optimizes material flow and often eliminatesthe needfor complexand expensivehandling systems.
. lowever,particularhandling issues hat drasticaly affectspace
plan selectionmustbe dentified.For example, pneumatic ransportsystemhasdifferent requirements han a system hat uses orktrucksfor conveyingbulk material.one space lan might
be the best or forktruck handling,while anothermight bebest otih. prr..r-atic system.A space lan shouldbedesignedandselected ifore the handling
system s finalized.To do this, however,maymeanassuminga generaltlpe of handling systemprior to layout design.
To accomplish ask03.20,examine."ih ofthe proposedayoutoptions and askthe following questions:
. What typesof handling systemsareviablefor eachoption?
. Would aparticularhandling systemaffectone ayout option
more than another?. Would a different handlingsystemallownew ayoutoptions?
,lf aparticular handling systemaffectsall layout opiior^ equally,
selection fthat systemsnot a key ssue.n sucha case,he evaluationofthe options is the nextstep n the space lan. Ifa particularhandlingsystemwould give oneoption a significant advantageover the others,suchselection s a key issue. n sucha case, urthir investigation srecommended, erhaps ccompaniedy apreliminarydesignandcost
estimate or the handling system.This approachallows-"rr"g.rrrerrtto selecthebest ayoutat themacro-levelwithout completelydeiigninghandling systemsor all the options.
Deciding n the bestspaceplanSeveralvi-abfeoptions now exist for the macro-space-plan.Manyothersprobably havealreadybeenscreened ut during ."ili", parts ofthe designprocess.The designershouldnarrow the choice o ihr.. tosixsignificantly different options.Each
option mayhaveseveralminorvariations.Managementandothers nvolved n theproject then decidewhich to use.This is donefor severaleasons:
' managementoften criticizes he engineeringstaff for tunnelvision.Engineersmay ock onto an deaearly n aproject.A
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96 Facilit ies lanning
wide varietyofoptions shows hat the designeror design eam
has considereda wide range of possibilities;' asking for a selection rom amongoptions is usuallymore
palatable han asking for approvalofa preordaineddesign;
. the processof decision-makingbuilds consensus' uPPort'andionfidence. This Preventsater attemPtsat redesignby
thosewho felt left out of the processland' the decisionprocessmay Seneratehybrid plans,which are
often superior to the original designs.
Figure 3.39 shows the procedure for evaluation.The spaceplan
optionsare he"input" listed n Block 1. Block2 assemblesdecision eam.
In Block 4, the team reviews the project's original objectives-
These original objectives may be specific,directly measurable,and
SpacePlanA
m
Figure3.39- Computing Space,VisualEstimotion
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The Macro-Space-Plan 97
applicableto the evaluation, or they may be global and difficult tomeasure.They may require sub-objectives or a good evaluation.Theinformation developed uring nformationgatheringmayhavemodifi edthe objectives.The debatesduring the strategydevelopmentalso mayhavechanged bjectives. he decisioneamadopts heoriginalobjectives
or reviseshem asappropriate.Flowing from theobjectivesaredecisioncriteria.These are actors
that the teamcanevaluate irectly-eitherqualitativelyor quantitatively.They are he basis or the decision.Examplesof decision actorsare:material handling savings, mproved communication, OSHAcompliance, mproved teamwork, initial cost, operating cost, qualityenhancement, mproved delivery reliabiliry, improved delivery speed,and ability to usea particular technology.
A decisioncriterion maybe adecideror a qualifier. Qralifiers aregolno-go criteria:a spaceplan meets he minimum requirementsornot. Performance eyond he minimum creates o additionalbenefits.Performance below the minimum disqualifies the spaceplan fromconsideration. or example,OSHA compliancemight be a qualifier.Layouts that meet the requirementsare acceptable. ayouts that gobeyondOSHA requirements ring no perceived dditionalbenefit.
Deciders bring additional benefits for each increment of
performanceImprovedcost, or example,s usuallya decider.OptionB mayhavean operatingcost advantage ver Option A. Although bothspace lansmeet he budgeted ost mprovementobjectives,Option Bis the preferredspace lan on that dimension.
Block 3 contains he tools for evaluation. n addition to macro-space-planning,hese ools apply to other levelsof facility planning.Among the common tools for evaluationare: material flow analysis(MFA), financial analysis, anking, instinct, positive-negative-interesting PNI), decision reeanalysis, nd weighted actoranalysis.
MFA examineshe arge-scalematerialmovementbetweenSPUs.It developsa measureof associated ost and difficulty. Improvedcommunication and coordination are corollary benefits of improved
material flow. Specific techniques n this category nclude transportwork, flow diagrams,and D-F plots. For the most part, these arequantitativemethods.
Financialanalysisincludesostestimating, eturn on investment(ROI), and payback.These methods are quantitativel however,they
often involve qualitative udgments aswell.A simple anhing, rom mostpreferred o leastpreferred, s often
an effective ool. The ranking canuse qualitative factors,quantitativefactors.or both.
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98 Facilities lanning
The gut-level reactionor instinctof knowledgeable eoplehas
value.Although it should rarely be usedasa primary evaluation ool, it
may uncoverunseenopportunitiesor problems.
PNI analysis s a variation of the brainstorming technique. Itexamineseach spaceplan factor, focusing irst on the positive features
and then on negative eatures.Finally, it focuseson those that areneitherpositiveor negative-things that are nteresting r unique.Thisanalysis,was developedby Edward DeBono, an expert on thinking
processes.t is simplebut effective. t oftenbringsout hidden features
and builds teamworkand consensus.
Decisionreeanalysissusefulwhen a seriesof probableeventscanaffect he decision.For example,which space lan s best f a particularcontract s won and,afterward, he overallmarket contracts?t helps
evaluatehe cumulativeprobabilityofeachofthe four possible utcomes.Combined with financialanalysis,t is a quantitative ool.
Weigbtedfactornalysis ases decisionon a combinationof thevarious actors,both qualitative nd quantitative. t isbest fthe factorsare ndepe dent,but this s not always ossible. omecompromisingofthisprinciple s acceptable.udgesirst denti$, he factors, hen decidea weight for each,and, astly, ateeachoption.
In addition to the tangible and intangible categories, traregic
issuesmay arise.These are usuallyqualitative.The consequencesfstrategic issuesare often so far-reaching and so important theyovershadow ll other factors.For example,Option A might usea newtechnologv.This technology howsno immediatecostbenefityet theintroduction potentially could revolutionize the industry and place afirm farahead fothers.ShouldOption A beselected?his is adecisionfor top managers nd cannotbe made ightly.
In weighted actoranalysis,he udges hat weigh the factorsmaybe different from those who rate the options. For example, topmanagementmay weigh the factorsbut leave atings o specialists roperatingpeople.
In physics,Heisenberg'sncertainty rinciplestateshat both the
position and state of certain sub-atomicparticlescannotbe known.
Thit ir becausehe process f measurem.rri irtort, either heposition
or state.A parallelphenomenon ccurs n space lanning.The processofjudging and evaluation ften leads o other options.Thus, someorall of the space lansmay changeasa resultof the evaluation rocess.
Or, a hybrid space lan that featureshe bestparts of several riginaloptionsmay emerge.
Block 5 of the procedurediagramexamineshe decisioncriteriaand available ools. Two to four tools appropriate for the evaluation
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The Macro-Space-Plan 99
shouldbe selected.
Block 6 evaluatesall options with respectto the identifiedqualifiers.Any option that fails to meet a qualiS'ingcriterion dropsfrom consideration.
Block 7 evaluateshe optionswith respecto the decidercriteria.
New or hybrid options go on the list of available ptions.After evaluation,one option is selected or development.A
decisionsummary ecappinghe decisionprocess houldbe prepared.The summaryand decisionmakeup Block 10.
Evaluatinghe Cosmos paceplansThe Cosmosdesign eamand steering ommitteemet to evaluateheproposed pace lans.They decided hat both the steeringcommitree
and design team should participate in the evaluation.They firstreviewed he originalprojectobjectives. hesecame rom Task 03.01,"Plan
Project":' reducematerialhandlingcost;. reduceoperatingcosts;. deliverprojectunder budgetof$800,000;' improvedeliveryperformancel. improve eamwork,communication,and quality;'
allow for new products; and' accommodate 998production.
From the originalobjectives,heyderived hesedecisioncriteria:D Material flow
D Direct operatingcostqD Initial cost
D Delivery
D Communication
D Teamwork
D QralityD New product adaptability
a_ Meets 1998 productionrequirement
a_ OSHA/EPA Compliance
A"Q
notationdesignateshe qualifiers.OSHA,/EPA complianceis necessaryor anyspace lan.Those hat fail to meet his qualificationareno longerconsidered. imilarly, he 1998productionrequirement
is a qualifier. nitial cost s both a deciderand qualifier.A space lanmust meet he $800,000 udget imitation to be considered;his is thequalification.nitial costbelow$800,000s abenefit; his s he decider.All the other criteriaare deciders, enotedby a
"D."
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100 Faci l i t iesPlanning
The Cosmos eamchosePNI, MFA, cost estimating,payback,and weighted factor analysisas the tools for evaluation.
They analyzedmaterialflowfirst andthenused heresults o assistwith the costestimating. n Step1 ofthe MFA, theydevelopedhe flowdiagrams llustrated n figure 3.40.
These diagramsshow where the flow complexity or the existing
Opr lon# I IProduclrFocused pacePldn
Opt lon #3
Ex is t l ng Lagoul
Figure 3,40 - Moteriol Flow Evaluotion
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The Macro-Space-Plan
layout is greatest.Option 2, arevised unctional layout, mprovesthe flowcomplexityand shortens low distance.Option 1 mprovescomplexityandfirther shortenshe total distance.The flow complexity ndex(FCI) countsthe frequencyof flow crossingson the diagram. Option t has an index of0, Option 2 has an FCI of 4, and Option 3 has an FCI of 6. Visualexaminationof thesematerialflow chartsconfirmsthe increasingmaterialflow complexity from Option 1 through Option 3.
Transportwork is the summationofeach low distancemultipliedby the flow rate.The units for Cosmos are EFUs per day. Table 3.4 isthe spreadsheet sed by the team to calculatedistanceand transport
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102 Faci l i t iesPlanning
work for Option 1. The other optionshavesimilar spreadsheets.he
threeoptionshave ransportwo k of 9,647,78,669,and 28,t31 EFU-
feet per day respectively.
Another measure of material flow is the frequency count for
materialmoves.Option t has11 nternalmoves,Option 2has L4, and
Option 3has2I. The total distance raveled or the two representative
products s anothermeasure.Options 1 through 3 have distances f
L,026,7,723,and2,735 eet, espectively. he average umberof trips
per day s 119,732, and 98.
This analysis ssumeshat all trips use he EFU, an equivalent
handcart, s hemeans.When implemented, he ayoutactuallywilluse
severalmethods of handling. However, for estimating, the EF"[J
assumption s a reasonable pproximation.
Figure3.41 sagraphicdisplayoftheMFAresults. Based n everymaterial low measure,Option f. s significantlybetter han Option 2.
Option 2 is significantlybetter than Option 3.
Financial analysis
Table3.5summarizeshe inancial esults or the threeoptions.Option
3-the existing ayout-maintains the status uo.For this reason,here
is no change n either savingsor costs.Option 3 thus provides he
baseline or the financialanalysis.
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TheMacro-Space-Plan 103
The centerbuilding is the new constructionbetween he twoexistingbuildings.The teamestimated he costat $35per squareoot.The eastextension or Option 2 will cost about $30 per square ootbecauset doesnot have oadingdocks.
Option 2 wlll need new equipment,valuedat about $23,000,which will cost $21,000 for installation. Option 3 requiresmoreequipment becauseof its cellular nature. Rearrangement ostsare$45,000and $28,000, espectively,or Options 1 and2.
The cellularapproach f Option l will requiresignificant rainingand additionalconsulting eeswhen comparedo Option 2. The teamalsoanticipateda moredifficult start-up.
A contingencyof 15 percent hat allows or unplannedcosts sapplied o the mplementationofboth newoprions.Either Option 1 or
Init ialCashOutflowsDescription
Center ui ldingEastExtensionEquipmentInstal lation
RearrangementTrainingConsult ingStartupContingencies
Total
Annual nflowsDescription
IncreasedalesMaterial andlingDirectLaborOther ndirectWorking apitalOuality
Total
Init ialnflowInventory
Years-To-Payout
Option1Amount
$161,000$0
$176,000$49,500
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$698,050
$750,000$22,885$132,000$75,000
$140,000$230,000
$1,349,885
$1,750,000
0.23
Option2Amount
$161,000$307,800
$23,000$7,800
$28,000$0
$20,000$45,000$88,890
$681,490
Option2Amount
$750,000q E FF A
$10,000$37,500
$0$20,000
$826,058
$0
0.82
Option 3Amount
$0$0$0$0$0$0$0$0$0
$0
$0$0$0s0$0$0
$0
$0
nla
Option1Amount
Option 3Amount
TABLE3.5
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1 04 Facilit ies lanning
Option 2 will bring increased alesand production. The net profit for
this is estimatedat $750,000.
Material handling savingscome from the decreasen handling
and transport work. Using the data rom the material flow analysis, he
teamestimated ostsavin sof fi22,885 eryear or Option 1 and$8,558
dollarsperyear or Option2. This assumesour minutesofloading and
unloading or each rip. It assumes n averageransportspeedof 150
feet per minute and an $18.50hourly labor cost. t alsoassumeshat
eachmove has an empty return trip.
Calculations for direct labor, quality, and other indirect labor
savings re ess igorous,but the teamdeveloped onservativestimates
from their experiences.
Option t hasa significant nventoryreductionof ff7.75million.
This is aone-timesavings nd essensheworking capital equired.Theintereston this, at 8 percent,amounts o $140,000peryear.
The payout or Option 1 is 0.23years. he payout or option 2 is
0.82 years.Both payoutsare quick. There is no payout or Option 3
becausehere s no initial investment.
An ROI analysiswould be more rigorous than the payout method.
However, the fastpaybacksor Options 1and 2 indicate that the increased
complexityand effort required or an ROI analysiss unnecessary.
The team eviewed he decisioncriteria o see f the options metall qualifiers. All three options met the regulatory qualifiers. All three
options met the budgetary qualifier. Only Options 1 and 2 will satisfr
1998 production requirements.This signifies that doing nothing,
Option 3, is not a viablecourse f action.Option 3, however,hasbeen
usefulasa baseline or improvementestimates.
Pos ti ve-negative - nte re sting
Having completed he quantitative analyses,he evaluationgroup then
rurned o PNI analysis.Meetingwith a acilitator, heyfocused n each
option and eachaspectn turn.They usedbrainstorming echniqueso
develop the positive, negative,and interesting points for each option.
The resultsare n table 3.6.
Weighted factor analysis
With the quantitative and qualitative analysis complete, the team
rurned to weighted factor analysis,where analysisand opinion are
merged nto a singledecision.Figure 3.42 summarizes he weighted factor results.The team
first reviewed each factor and confirmed the definition. Through
discussion, he members eacheda consensus n the weights. Each
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TheMacro-Space-Plan 105
factorhad aweight betweenone and ten.
Operating cost, quality, and delivery receivedhigh weights (tenand nine).These actorshave hemostdirect effect n the marketplace.The group believed hey had the higheststrategicmportance.
Material flow, communication,and teamworkreceivedweights nthe seveno eight ange. hese actors resomewhatrelated. ood material
Option 1Positive
BestMaterial andling
Simpli fcationNeat& CleanGeometryLess nventoryBetterTeamworkFi tsW/TOMFasterThroughputF a c t a r R a c n n n c a
LessSpaceLessCostFaster ayoutBestAnnual ost
EasierupervisionEmployeenvolvementNice isle ystemUsesCurrent oftware
w/Kanbanroductionontrol
OptionPosit ive
Reducedaterial andling
Nice isleSystemNeat& Clean eometryEasyPersonaldjustmentLotsof Space
PNlAnalysisSummary
Option2Negative
Option 3Interesting
Option 3Interesting
AllowsCellular
Transition ater
LowRisk
HighCostAllowsCellularProcrastination
NoThroughputlmprovement
MoreSpace equiredLowerPayoutHigher nnual ostI aqc Fmn l n r roo
InvolvementDoesNot Assit TOM
LessTeamwork
TABLE3,6
HighTraining equired
It MightNot WorkDiff icult djustmentHigher isk
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1 0 6 Facilit ies lanning
flow improvescommunicationand simplifiesoperations. t also educes
interdepartmental roblems.Better low andbettercommunicationenhance
teamwork.Material flow also ies o operatingcost.
The team then examined material flow and compared he three
options. With quantitativedata rom the MFA, they quickly achieved
consensus n the ratings. Option 1 receivedan A for material low,
WeightedFactor
Analysis
t'oj""t'fAcitir^/ Re-euaiueeeiu'
\ i t :
lEol
cost't6?eoDucrSAy :
AL ef rzlqt,{ore: cottBliueD acoaEa
to Factor Oplion t1Op l ion 2 Option 13
Optional Oplion 15
F l tl.ATEAJALFLOW g, A 32 I 24 u o
f2 l0tlrluNicA.TioN ) 1 4 o 7 u o
F3 TeAt'twoeK 7 A zt u o u o
F) NEW "?ODUCTE 2 o 2 e 6 e 6
F4 rNiTlrX- 167 3 1 2 e s A 1 2
rs >ieecT o?ee-c61 1 0 E 3o 20 u o
i6 AU/XLiTYs A 3 6 1 g u o
t 7 >€tM€EV l o A 4o o 1 0 u o
Totals 1q4 s4 r (
* Option Descriplion
I CELLUIJAQ
2
3
FUNCTlON/lt
EKST1N64
iltnAF€,)
f.TAYLO?
H,FOAD
Figure3.42- Weighted Foctor Anolysis
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The Macro-Space-Plan 1O7
Option 2 received n I, andOption 3, the baseline,eceived U. Theteam repeatedhis processor the other factors.
Deliveryhadsomequantitativebasis.The numberand ength ofmovesfrom the MFA indicated that delivery would improve underOption 3, whereasdeliveryperhapswould seeslight improvementunder Option 2.
Qrality, new products, eamwork,and communicationhad noquantitativeanalysis. evertheless,iscussion nda reviewof the PNIanalysis rought a consensusmong he team members.
They then multiplied each factor weight by each raring andtotaled he score or eachoption.Option 1received 94points,Option2 received94 points, and Option 3 received18 points. From thosescores,he groupconcluded hat Option 1wasbestby alargemargin.
The team could have begun the weighted factor analysis byweighing each actor ndividuallyand rating eachoption. They couldthen average ndcompareheir resultsasabasis or discussion. his isauseful echniquewhen t appearshat ndividualshavewidelydifferingviews. Severalcomputer programsareavailable or this type of multilfactordecisionmaking,but the most mportant results erive rom thediscussions.n most situations, manualcompilation ike that n figure3.42 rs sufficient.
ConclusionThis completeshe discussion f macro-space-planning. any of themethods apply to other levelsof spaceplan design.Material flowanalysis,or example,san mportant tool for Level2,
"SitePlanning."
Weighted factor analysisappliesat all levels.For most facility planning, the macro-space-plans the most
important planning evel. t is wherestrateg.ys definedand the firststeps oward mplementation