module on layout & facilities planning. 2 operations management: layout & facilities...

Module on

Layout & Facilities Planning

2

Operations Management: Layout & Facilities Planning

In this module we will discuss:

• Layout types

• Employee & customer considerations

• Steps in layout planning

• Manufacturing & service layout

• Contemporary layout issues

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1.Layout planning is concerned with placement of departments, working groups, machines, and stockholding points within a production facility. The objective is to arrange the elements in a way that facilitates smooth work flow ( in manufacturing) or a particular traffic pattern ( in service).

2.Layout planning is the integral part of design of the productive system. It is a physical expression of technological choices, capacity decisions, process & job design, material handling and communication system that joins the processes.

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Types of Layouts:

• Fixed position layout

• Process layout

• Product layout

• Cellular layout

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Process Choices

Project

Jobbing

Batch

Line

Continuous

BuildingDams Special,

Small Orders

Mid VolumeProduction

High VolumeProductions

Small LargeAverage Order Size

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Attributes of Projects

Applications: Usually large, one of kind

Order Winners: Price or Capability

Physical Resources: General purpose, mobile

Human Resources: Project skills, outsourcing

Information System: Tracking oriented

Project costing

Inventory: Timely Raw, sizable WIP, little FG

Adaptability to Change: High within charter

Fixed Position Layout

Question: What are our primary considerations for a fixed position layout?

Answer: Arranging materials and equipment concentrically around the production point in their order of use.

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Fixed Position (Project) Layout

• Suitable for large projects (shipbuilding, missile/aircraft assembly, dam building)

• Assembly is the main process

• Functional centres arranged around project

• Functional areas may be inventory storage or some form of fabrication

• Proximity of functional area depends upon frequency of use/ travel time

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Process (Functional) Layout• Used when competitive priorities are flexibility &

quality• Lot size Q is low & number of products/parts P high• Similar equipment/functions are grouped together• Variable routes between job centres• Variable processing time at centres • Waiting line (queue) at each centre• Enhances learning & skill development• Distances the supplier from the customer*• Examples: machine shop, job order shop,

hospital,consultancy organization

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Typical Attributes Of Jobbing

Applications: Special, Small, Make-to-Orders

Order Winners: Price, Speed or Capability

Physical Resources: General purpose equipment, process layout

Human Resources: Skilled, empowered, may be labor limited

Inventory: Timely Raw, sizable WIP, little FG

Adaptability to Change: High within charter

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Job Shop : Process Layout

Office Final Assembly Loading Dock

Milling Machines

Drill PressesPlantMaintenance

Welding Shop

Tool Storage

Boring Machines PaintBooths

Coffee

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Cellular Manufacturing

• Cellular manufacturing is a category of manufacturing processes that produce a family of similar outputs, one at a time, by linking together all possible operations in the required process.

• Whereas a job shop is designed to process a wide variety of product, the scope of a cell is limited to a subset of parts with similar processing characteristics.

• This subset of similar parts is called a parts family.

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Parts FamiliesParts Families

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Cellular (Group Technology) Layout• Lot size Q & number of products/parts P are both

moderate • Allocates dissimilar machines in to cells to

produce products having similar shapes/ processing requirements (e.g. all small gears)

• Objective is to get benefit of product layout in job-shop production

• Better teamwork & human relations• Improved operator efficiency, less in-process

inventory, material handling, faster production due to faster tooling changes

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Drilling

D D

D D

Grinding

G G

G G

G G

Milling

M M

M M

M M

Assembly

A A

A A

Lathe

Receiving and shipping

L

L L

L L

L L

L

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Cell 3

L M G G

Cell 1 Cell 2

Assembly area

A A

L M DL

L MShipping

D

Receiving

G

Line flows in a job shop with three GT cells

Group Technology:Transition from Process Layout

1. Grouping parts into families that follow a common sequence of steps.

2. Identifying dominant flow patterns of parts families as a basis for location or relocation of processes.

3. Physically grouping machines and processes into cells.

Group Technology: Benefits

1. Better human relations

2. Improved operator expertise

3. Less in-process inventory and material handling

4. Faster production setup

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Product Layout• Focus on product• Lot size Q is large w.r.t. number of products/parts

P • More suited to assembly than fabrication• If same process is required elsewhere, facility is

duplicated• Adequate volume for equipment utilization• Stable, long-term product demand• Product standardization• Continuous flow of materials• Throughput time & material handling minimized

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Typical Attributers Of Line Production

Applications: High Volume MTS Jobs

Order Winners: Often Price and capability

Physical Resources: Special purpose fixed product layout

Human Resources: Toward less skilled, unionized

Bureaucratic

Information System: Material and process control,process costingInventory: Timely Raw, sizable WIP & FG

Adaptability to Change: Low

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Service Facility Layout

• Service Types-Fixed / Delivered Services

• Fixed- Consumption at delivery point

• E.g. restaurant, bank, health care & hospital

• Layout is crucial for fast service

• In direct customer contact service- analyze

waiting line structure

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Service Facility Layout (cont..)

• Entry flow & Exit flow should planned

• Exit flow should not clash with waiting line

• Fast-food, standardized, high volume office

work- production line layout

• Banks, general offices-functional layout

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Facilities Location Problem

• Suppose there are 4 functions A,B,C,D

• How should they be located?

• Should it beA B

D C

A C

D B

A D

B C

A B

C D

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Inputs to layout decisions:

• Estimates for product/service demand

• Space required for layout elements

• Distance travelled by product & amount of flow between elements in layout

• Processing requirements

• Space available within & outside facility

• Building configuration

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Process Layout: Interdepartmental Flow

• Given– The flow (number of moves) to and from all

departments– The cost of moving from one department to another– The existing or planned physical layout of the plant

• Determine– The “best” locations for each department, where best

means interdepartmental transportation, or flow, costs

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Process Layout: CRAFT Approach

• It is a heuristic program; it uses a simple rule of thumb in making evaluations: – "Compare two departments at a time and exchange

them if it reduces the total cost of the layout."

• It does not guarantee an optimal solution.

• CRAFT assumes the existence of variable path material handling equipment such as forklift trucks.

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Process Layout: Systematic Layout Planning

• Numerical flow of items between departments – Can be impractical to obtain– Does not account for the qualitative factors that may

be crucial to the placement decision

• Systematic Layout Planning– Accounts for the importance of having each

department located next to every other department– Is also guided by trial and error

• Switching departments then checking the results of the “closeness” score

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Example of Systematic Layout Planning: Reasons for Closeness

Code

1

2

3

4

5

6

Reason

Type of customer

Ease of supervision

Common personnel

Contact necessary

Share same price

Psychology

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Example of Systematic Layout Planning:Importance of Closeness

Value

A

E

I

O

U

X

ClosenessLinecode

Numericalweights

Absolutely necessary

Especially important

Important

Ordinary closeness OK

Unimportant

Undesirable

16

8

4

2

0

- 80

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Example of Systematic Layout Planning: Relating Reasons and Importance

From

1. Credit department

2. Toy department

3. Beverage department

4. Camera department

5. Chocolate department

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I

--

U

4

A

--

U

--

U

1

I

1,6

A

--

U

1

X

1

X

To2 3 4 5

Area(sq. ft.)

100

400

300

100

100

Letter

Number

Closeness rating

Reason for rating

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Example of Systematic Layout Planning:Initial Relationship Diagram

1

2

4

3

5

U U

A

A

I

32

4

1

5

2

3

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Example of Systematic Layout Planning:Initial Layout(ignoring space constraints)

1

2 4

3

5

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Example of Systematic Layout Planning:Initial and Final Layouts

1

2 4

3

5

Initial Layout

Ignoring space andbuilding constraints

2

5 1 43

50 ft

20 ft

Final Layout

Adjusted by squarefootage and buildingsize

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Layout Planning Steps

• Arrange work centres in order of dominant flow

(objective is to ensure resource/product flow at

optimum cost/time)

• Analyze product/resource flow ( Flow diagram/

From-To diagram)

• Include non-flow factors & combine with flow

factors

• Determine space requirements

• Fit space arrangement into available space

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Layout Planning Steps

• Arrange work centres in order of dominant flow

(objective is to ensure resource/product flow at

optimum cost/time)

• Analyze product/resource flow ( Flow diagram/

From-To diagram)

• Include non-flow factors & combine with flow

factors

• Determine space requirements

• Fit space arrangement into available space

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Analyze product/ resource flow

Flow diagram

From-to chart

Identify non-flow factors,

Where significant

Activity-Relationship diagram

Assess data and arrange work area

Activity arrangement diagram

Determine space arrangement plan

Space relationship diagram

Fit space arrangement in to available space

Floor plan

Detailed layout plan

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Thank you

module on layout & facilities planning. 2 operations management: layout & facilities...

Documents

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