layout strategy mar 2011

7/31/2019 Layout Strategy Mar 2011

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9-1

Operations

Management

Plant Layout Strategy


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9-2

Outline - continued

Office LayoutRetail Layout

Servicescapes

Warehousing and Storage Layouts Cross Docking

Random Stocking

Customizing

Repetitive and Product-Oriented Layout Assembly Line Balancing


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9-3

Learning ObjectivesWhen you complete this chapter, you should

be able to : Identify or Define:

Fixed-position layout

Process-oriented layout Work cells Focused work center Office layout

Retail layout Warehouse layout Product-oriented layout Assembly-line factory


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9-4

Learning Objectives

When you complete this chapter, you shouldbe able to :

Describe or explain:

How to achieve a good layout for the processfacility

How to balance production flow in a repetitive orproduct-oriented facility


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9-5

McDonalds - New Kitchen Layout

Fifth major innovation - kitchen design No food prepared ahead except patty

Elimination of some steps, shortening of others

New bun toasting machine (11 seconds vs 30seconds)

Repositioning condiment containers (one motion, nottwo)

Sandwiches assembled in order Production levels controlled by computer

Discard only meat when sandwiches do not sell fastenough

Savings of $100,000,000 per year in food costs


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9-6

Objectives of the Layout Strategy

Develop an economical layout which will meet therequirements of: product design and volume (product strategy)

process equipment and capacity (process strategy)

quality of work life (human resource strategy)

building and site constraints (location strategy)


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9-7

Types of Layouts

Fixed-position layout

Process-oriented layout

Office layout

Retail layout

Warehouse layoutProduct-oriented layout


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9-8

What is Facility Layout

Location or arrangement of everythingwithin & around buildings

Objectives are to maximize Customer satisfaction

Utilization of space, equipment, & people

Efficient flow of information, material, & people Employee morale & safety


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9-9

Strategic Importance of Layout

Proper layout enables:Higher utilization of space, equipment,and

people

Improved flow of information, materials, orpeople

Improved employee morale and safer working

conditions Improved customer/client interaction

Flexibility


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9-10

Six Layout Strategies

Fixed-position layout large bulky projects such as ships and buildings

Process-oriented layout deals with low-volume, high-variety production (job shop,

intermittent production)

Office layout

positions workers, their equipment, andspaces/offices to provide for movement of information


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9-11

Six Layout Strategies - continued

Retail/service layout allocates shelf space and responds to customer

behavior

Warehouse layout addresses trade-offs between space and material

handling

Product-oriented layout seeks the best personnel and machine use in repetitive

or continuous production


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9-12

Layout Strategies

Project(fixed-position)

Job Shop(Process-oriented)

Office Retail Warehouse(storage)

Repetitive/Continuous

(product-oriented)

Examples

Pittsburgh

Airport

Problem

Ingal ShipBuilding Corp.

Trump Plaza

ShouldiceHospital

OliveGarden

AllstateInsurance

Microsoft

KrogersSupermarket

Walgreens

Bloomingdales

Federal-MogulsWarehouse

The Gaps

distributioncenter

Sonys TVAssembly Line

DodgeCaravans

Move materialto the limitedstorage areasaround thesite

Manage variedmaterial flowfor eachproduct

Locate workersrequiringfrequentcontact close toeach other

Exposecustomer tohigh-marginitems

Balance low-cost storagewith low-costmaterialhandling

Equalize thetask time ateachworkstation


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9-14

Requirements of a Good Layout

an understanding of capacity and space requirements

selection of appropriate material handling equipment

decisions regarding environment and aesthetics

identification and understanding of the requirements forinformation flow

identification of the cost of moving between the various work

areas


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9-15

Constraints on Layout Objectives

Product design & volume

Process equipment & capacity

Quality of work lifeBuilding and site

L t St t i E l d


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9-16

Layout Strategies, Examples, andCriteria

Service/retail Drug storeGrocery store

Department store

Expose customer to highmargin items

Storage DistributorWarehouse

Minimize storage andhandling costs

Product oriented TV assembly line Minimize line imbalance,

delay, and idle time

Layout strategy Example Criteria

A f C i L t


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9-17

Areas of Concern in LayoutStrategy

LayoutStrategy

MaterialFlow

Communication

WorkCell

Safety

Material

Attributes

Warehousing

Service

Areas


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9-18

Fixed-Position Layout

Design is for stationary project

Workers and equipment come to site

Complicating factors

Limited space at site

Changing material needs

F t C li ti Fi d


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9-19

Factors Complicating a FixedPosition Layout

There is limited space at virtually allsites

At different stages in the construction

process, different materials areneeded therefore, different itemsbecome critical as the project

develops The volume of materials needed is

dynamic


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9-20

Process-Oriented Layout

Design places departments with large flowsof material or people together

Department areas having similar processeslocated in close proximity e.g., All x-ray machines in same area

Used with process-focused processes


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9-21

Emergency Room Layout

E.R. beds Pharmacy Billing/exit

E.R.Triage

room

Patient B - erratic

pacemaker

Patient A -broken leg

Hallway

Steps in Developing a


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Steps in Developing aProcess-Oriented Layout

1 Construct a from-to matrix

2 Determine space requirements for each department

3 Develop an initial schematic diagram

4 Determine the cost of this layout

5 By trial-and-error (or more sophisticated means), try to

improve the initial layout

6 Prepare a detailed plan that evaluates factors inaddition to transportation cost


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Interdepartmental Flow of Parts

1 2 3 4 5 6

1

2

3

4

5

6

50 100 0 0 20

30 50 10 0

20 0 100

50 00

Interdepartmental Flow Graph


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Interdepartmental Flow GraphShowing Number of Weekly Loads

100

50 30

10

50

100

1 2 3

4 5 6


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9-25

Possible Layout 1

AssemblyDepartment

(1)

PrintingDepartment

(2)

Machine shopDepartment

(3)

ReceivingDepartment

(4)

ShippingDepartment

(5)

TestingDepartment

(6)

Room 1 Room 2 Room 2


40

Interdepartmental Flow Graph


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Interdepartmental Flow GraphShowing Number of Weekly Loads

10050

30

50

100

1 2 3

4 5 6


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Possible Layout 2

PrintingDepartment

(1)

AssemblyDepartment

(2)

Machine shopDepartment

(3)

ReceivingDepartment

(4)

ShippingDepartment

(5)

TestingDepartment

(6)



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Computer Programs to Assist in


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9-28

Computer Programs to Assist inLayout

CRAFT (Computerised relative allocation offacilities techniques)

SPACECRAFT

CRAFT 3-D

ORELAP (Comp. relationship layout planning)

ALDEP (Auto. layout design programs)COFAD

FADES - expert system


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9-29

Cellular Layout - Work Cells

Special case of product-oriented layout - inwhat is ordinarily a process-oriented facility

Consists ofdifferentmachines broughttogether to make a product

Temporary arrangement only

Example: Assembly line set up to produce3000 identical parts in a job shop

Improving Layouts by Moving to


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Improving Layouts by Moving tothe Work Cell Concept


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Work Cells - Some Advantages

Reduced work-in-process inventory Less floor space required

Reduced raw material and finished goodsinventories required

Reduced direct labor costs

Heightened sense of employee participation

Increased utilization of equipment machinery

Reduced investment in machinery and equipment

Note: Green & Sadowski report increased capital

investment and lower machine utilization


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Work Cell Advantages

Inventory

Floor spaceDirect labor costs

Equipmentutilization

Employee

participationQuality


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Work Cell Floor Plan

Office

Tool Room Work Cell

Saws Drills


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Work Cells, Focused Work


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Work Cells, Focused WorkCenters and the Focused Factory

Work Cell A temporary assembly-line-oriented arrangement ofmachines and personnel in what is ordinarily aprocess-oriented facilityExample: job shop with rearranged machinery andpersonnel to produce 30 unique control panels

Focused WorkCenter

A permanent assembly-line-oriented arrangement ofmachines and personnel in what is ordinarily aprocess-oriented facility

Example: manufacturing of pipe brackets at ashipyard

Focused Factory A permanent facility to produce a product orcomponent in a product-oriented facility

Example: a plant to produce window mechanismsfor automobiles

Offi L t


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Office Layout

Design positions people, equipment, &offices for maximum information flow

Arranged by process or product

Example: Payroll dept. is by process

Relationship chart used

Examples

Insurance company

Software company

1995

Corel Corp.

Offi L t Fl Pl


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Office Layout Floor Plan

Accounting

Manager Brand X

FinanceFin. Acct.

R l ti hi Ch t


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Relationship Chart

1 PresidentO

2 Costing UA A3 Engineering I

O

4 Presidents Secretary

12

3

Ordinarycloseness:President (1) &Costing (2)

Absolutely necessary:

President (1) &Secretary (4)

4

I = Important

U = Unimportant

R t il/S i L t


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Retail/Service Layout

Design maximizes product exposure to customers

Decision variables

Store flow pattern Allocation of (shelf) space to products

Types

Grid design Free-flow design

Video

Retail Layouts -


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9-40

Retail Layouts Some Rules of Thumb

Locate high-draw items around the periphery of the store

Use prominent locations such as the first or last aisle forhigh-impulse and high margin items

Remove crossover aisles that allow customers theopportunity to move between aisles

Distribute what are known in the trade as power items(items that may dominate a shopping trip) to both sides of

an aisle, and disperse them to increase the viewing ofother items

Use end aisle locations because they have a very highexposure rate

Retail /Service Layout -


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PowerPoint 2001 by Prentice9-41

Retail /Service Layout Grid Design

Office CartsCheck-out

Grocery StoreMeatBread

M

ilk

Produ

ce

Frozen

Foods

Store Layout - with Dairy, Bread,


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y y, ,High Drawer Items in Corners

Retail/Service Layout -


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yFree-Flow Design

Feature

DisplayTable

Trans.Counter

Apparel Store

Retail Store Shelf Space


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Planogram

Computerized toolfor shelf-spacemanagement

Generated fromstores scanner data

on sales

Often supplied bymanufacturer

Example: P&G2 ft.

5facings

VO-5

VO-5

VO-5

SU

AVE

SU

AVE

VO

-5

PERT

PERT

PERT

PERT

PERT

VO

-5

A Good Service Layout


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A Good Service Layout(Servicescape) Considers

Ambient conditions - backgroundcharacteristics such as lighting, sound,

smell, and temperature.Spatial layout and functionality- which

involve customer circulation path planning

Signs, Symbols, and Artifacts -characteristics of building design that carrysocial significance

Warehouse Layout


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Warehouse Layout

Design balances space (cube) utilization& handling cost

Similar to process layout

Items moved between dock& various storage areas

Optimum layout depends on Variety of items

stored

Number of items picked

Warehouse Layout Floor Plan


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Warehouse Layout Floor Plan

Zones

Conveyor

Truck

Order Picker

Cross Docking


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Cross Docking

Transferring goods from incomingtrucks at

receiving docks to outgoingtrucks at

shipping docks

Avoids placing goodsinto storage

Requires suppliersprovide effective

addressing (bar codes)and packaging thatprovides for rapidtranshipment

In-coming

Outgoing

1984-1994 T/Maker Co.

1995 Corel Corp.

Random Stocking Systems Often:


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Random Stocking Systems Often:

Maintain a list of open locationsMaintain accurate records of existing

inventory and its locations

Sequence items on orders to minimize traveltime required to pick orders

Combine orders to reduce picking time

Assign certain items or classes of items,

such as high usage items, to particularwarehouse areas so that distance traveled isminimized

Product-Oriented Layout


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Product-Oriented Layout

Facility organized around product

Design minimizes line imbalance

Delay between work stations

Types: Fabrication line; assembly line

Product-Oriented Requirements


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Product Oriented Requirements

Standardized product

High production volume

Stable production quantities

Uniform quality of raw materials &components

Product-Oriented Layout - Assumptions


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Product Oriented Layout Assumptions

Volume is adequate for high equipmentutilization

Product demand is stable enough to justifyhigh investment in specialized equipment

Product is standardized or approaching aphase of its life cycle that justifiesinvestment in specialized equipment

Supplies of raw materials and componentsare adequate and of uniform quality ensurethey will work with specialized equipment

Product-Oriented Layout Types


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Product Oriented Layout Types

Assembles fabricated parts

Uses workstation

Repetitive process

Paced by tasks

Balanced by moving tasks

Builds components

Uses series of machines

Repetitive process

Machine paced

Balanced by physical redesign

Fabrication Line Assembly Line

Product-Oriented Layout Advantages


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Product-Oriented Layout Advantages

Lower variable cost perunit

Lower material handlingcosts

Lower work-in-processinventories

Easier training &supervision

Product-Oriented LayoutDisadvantages


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Disadvantages

Higher capital investment Special equipment

Any work stoppage stopswhole process

Lack of flexibility

Volume Product

An Assembly Line Layout


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An Assembly Line Layout

Repetitive Layout


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p y

1 3

2

4

5

Work

Office

Belt Conveyor

WorkStation

Note: 5 tasks or operations; 3 work stations

Work Station

Station

Assembly Line Balancing


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y g

Analysis of production lines

Nearly equally divides work between

workstations while meeting required outputObjectives

Maximize efficiency

Minimize number ofwork stations

Assembly Line BalancingThe General Procedure


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The General Procedure

Determine cycle time by taking the demand (orproduction rate) per day and dividing it into theproductive time available per day

Calculate the theoretical minimum number of workstations by dividing total task time by cycle time

Perform the line balance and assign specific

assembly tasks to each work station

Assembly Line Balancing Steps


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y g p

1. Determine tasks (operations)2. Determine sequence

3. Draw precedence diagram

4. Estimate task times5. Calculate cycle time

6. Calculate number of work stations

7. Assign tasks8. Calculate efficiency

Precedence Diagram Example


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A B

E H

C

DF G I

10 Min.

5

11

12

3 7 3

4

11

g p

Assembly Line Balancing Equations


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y g q

Cycle time =Production time available

Demand per day

Minimum

number ofwork stations

Task times

Cycle time

Efficiency =

=

Task times

* (Cycle time)(Actual numberof work stations)

Six Station Solution


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A B

C

E

D

F G

I

H

10 11

5

3 7

3

1112

Layout Heuristics for AssigningTasks in Assembly Line Balancing


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Tasks in Assembly Line Balancing

Longest task time - choose task with longestoperation timeMost following tasks - choose task with

largest number of following tasksRanked positional weight- choose task

where the sum of the times for eachfollowing task is longest

Shortest task time - choose task withshortest operation timeLeast number of following tasks - choose

task with fewest subsequent tasks

The Digital (Virtual) Factory


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A newly established laboratory with world class softwareand hardware facilities

To provide an interactive, graphical-based discrete event

simulation environment for students, researchers to model,develop, experiment, analyze and optimize design andmanufacturing processes in a digital (virtual) environmentprior to production


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layout strategy mar 2011

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