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Operations Management ORMB11-1

Session 15 Location Layout

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Dipankar Bose - XLRI

Making Location Decisions

Decide on the criteria

Identify the important factors

Develop location alternatives

Evaluate the alternatives

Make selection

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Factors Affecting Location

Regional

Raw material/ Market/ Labor/ Climate/ Tax

Community

Site Land/ Transportation

Multiple plant location strategies

Product plant strategy Market area plant strategy

Process plant strategy

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Comparison of Service and

Manufacturing Considerations

Manufacturing/Distribution Service/Retail

Cost Focus Revenue focus

Transportation modes/costs Demographicsage/income

Energy availability, costs Population/drawing area

Labor cost/availability/skills Competition

Building/leasing costs Traffic volume/patterns

Customer access/parking

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Evaluating Locations

Weighted Factor Rating Method

Center of Gravity Method

Simple Median Method

Cost-volume-profit Analysis

Transportation Model

Will be covered in Operations Research course

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Problem Homework

For a particular product demand destinations, demand

quantities associated with each destination and the

coordinates of each destination are given below.

If you are planning to build a warehouse, what will be the

coordinates of that warehouse?

Destination XCoordinate YCoordinate Demand in units

1 5 2 800

2 3 6 900

3 2 7 200

4 8 4 100

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Steps for a Populated Layout

Identify Space Planning Identifiers (SPIs)

Chart the Affinities/ Relationships

Determine space requirements

Develop layout primitive Generate macro layouts

Evaluate layouts

Populate layout

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Affinity Chart Example

Value Closeness

A

Absolutely

necessary

E

Especially

important

I Important

O Ordinary OK

U Unimportant

X Not desirable

XX

Must be

separated

Director

Chief Technology Officer

Engineers area

Secretary

Office entrance

Central filesEquipment cabinet

Photocopy equipment

Storage room

O

U

A

X

O

U

A

I

O

A

I

O

U

A

I

I

A

U

O

AU O

U

X

O I

U

OI

I

I

E

E

E

E E

1

2

3

4

5

6

7

8

9

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Basic Layout Types

Product layouts

Process layouts

Fixed-Position layout

Combination layouts

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Layout Types

Fixed Machine Position Layout

3

4

1

2

Process Layout

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Layout Types Continued

1

2

3

4

Flow through Process Departments

Flow through Process Groupings

1

2

3

4

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Product Layout With Conveyor

Product Layout Without Conveyor

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Product Layout Four Lines

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Similar to

Production Line

1

2

3

4

1

2

3

4

Production Line

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U-Shaped Production Line

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Designing Product Layouts Assembly

Line Balancing

The process of assigning tasks to workstations in such a

way that

The workstations have approximately equal time

requirements

Takt time

The maximum time allowed at each workstation

To complete its set of tasks on a unit Can be termed as required cycle time

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Line Balancing Steps

1. Set up a precedence table

2. Compute required cycle time

C = (production time) / (required output in units)

3. Compute minimum number of stations

SMIN = (sum of all times) / C

4. Select rule by which tasks are assigned to work stations

5. Assign tasks to the first work station until

Sum of the task times are equal to the cycle time or

No other tasks are feasible6. Repeat for stations 2, 3, until tasks are assigned

7. Find Efficiency

Efficiency = (Sum of all times)/

Actual No. of stations Cycle time

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Various Rules for Assembly Line

1. Longest task time First choose the available task withthe longest task time

2. Most following tasks First choose the available task with

the largest number of following tasks3. Ranked positional

weightFirst choose the available task forwhich the sum of following tasktimes is the longest

4. Shortest task time First choose the available task withthe shortest task time

5. Least number offollowing tasks

First choose the available task withthe least number of following tasks

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Assembly Line Balancing Example

Balance this production line to achieve an output of 367

units per day. Available production time is 8 hrs. less a 40min. lunch break. Use the largest number of following

tasks rule to select tasks for work stations. Break ties with

the longest operation time.

What happens if Job G takes 2.1 min?

A

B

C

D

E

F

G

H

I J

1.1

0.4

0.3 1.1

0.5

1.2 0.4 0.8

0.7 0.3

All values in minutes

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Assembly Line Balancing Example

Answer

Takt time = 440/367 1.2 min

Total production time = 6.8 min

Number of workstation = 6.8/1.2 6

Allocation rule = A > D > C > B > F > E > G > H > I > J

Idle time in a day = 144.4 min

If G = 2.1 min > Takt time

Split the job in two workstations

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Next slides about CRAFT) are not part of ORMB11-1 syllabus

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Designing Process Layouts Example

How CRAFT Technique works

Distance matrix Flow/Load matrix

1 2 3 4 5 6 7 8

1 10 20 30 15 18 25 34

2 10 20 18 15 18 25

3 10 25 18 15 18

4 34 25 18 15

5 10 20 30

6 10 20

7 10

8

A B C D E F G H

A 2 0 0 5 0 0 0

B 0 0 0 3 0 2

C 0 0 0 0 3

D 4 0 0 0

E 1 0 0

F 1 0

G 4

H

Computerized Relative Allocation of Facilities Technique CRAFT)

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Process layout Example Continued

Load Distance matrix

Total = 440

A B C D E F G H

A 20 0 0 75 0 0 0

B 0 0 0 45 0 50

C 0 0 0 0 54

D 136 0 0 0

E 10 0 0

F 10 0

G 40

H

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Prepare full Load matrix

A B C D E F G H

A - 2 0 0 5 0 0 0

B 2 - 0 0 0 3 0 2

C 0 0 - 0 0 0 0 3

D 0 0 0 - 4 0 0 0

E 5 0 0 4 - 1 0 0

F 0 3 0 0 1 - 1 0

G 0 0 0 0 0 1 - 4

H 0 2 3 0 0 0 4 -

A B C D E F G H

A 2 0 0 5 0 0 0

B 0 0 0 3 0 2

C 0 0 0 0 3

D 4 0 0 0

E 1 0 0

F 1 0

G 4

H

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Interchange B and E

A E C D B F G H

A - 5 0 0 2 0 0 0

E 5 - 0 4 0 1 0 0

C 0 0 - 0 0 0 0 3

D 0 4 0 - 0 0 0 0

B 2 0 0 0 - 3 0 2

F 0 1 0 0 3 - 1 0

G 0 0 0 0 0 1 - 4

H 0 0 3 0 2 0 4 -

A B C D E F G H

A - 2 0 0 5 0 0 0

B 2 - 0 0 0 3 0 2

C 0 0 - 0 0 0 0 3

D 0 0 0 - 4 0 0 0

E 5 0 0 4 - 1 0 0

F 0 3 0 0 1 - 1 0

G 0 0 0 0 0 1 - 4

H 0 2 3 0 0 0 4 -

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Dipankar Bose XLRI


New Load Distance matrix

Total = 369

A E C D B F G H

A 50 0 0 30 0 0 0

B 0 80 0 15 0 0

C 0 0 0 0 54

D 0 0 0 0

E 30 0 60

F 10 0

G 40

H

ormb11-1 - session 15

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