[ppt]layout strategy · web viewtitle layout strategy subject heizer/render 8e author jeff heyl...

© 2006 Prentice Hall, Inc. 9 – 1

Operations ManagementChapter 9 – Layout Strategy

© 2006 Prentice Hall, Inc.

PowerPoint presentation to accompanyPowerPoint presentation to accompany Heizer/Render Heizer/Render Principles of Operations Management, 6ePrinciples of Operations Management, 6eOperations Management, 8e Operations Management, 8e


OutlineOutline

Global Company Profile: Global Company Profile: McDonald’sMcDonald’s

The Strategic Importance The Strategic Importance Of Layout DecisionsOf Layout Decisions

Types of LayoutTypes of Layout Office LayoutOffice Layout


Outline – ContinuedOutline – Continued Retail LayoutRetail Layout

ServicescapesServicescapes Warehousing and Storage LayoutsWarehousing and Storage Layouts

Cross-DockingCross-Docking Random DockingRandom Docking CustomizingCustomizing

Fixed-Position LayoutFixed-Position Layout


Outline – ContinuedOutline – Continued

Process-Oriented LayoutProcess-Oriented Layout Computer Software for Process-Computer Software for Process-

Oriented LayoutsOriented Layouts Work CellsWork Cells

Requirements of Work CellsRequirements of Work Cells Staffing and Balancing Work CellsStaffing and Balancing Work Cells The Focused Work Center and the The Focused Work Center and the

Focused FactoryFocused Factory


Outline – ContinuedOutline – Continued

Repetitive and Product-Oriented Repetitive and Product-Oriented LayoutLayout Assembly-Line BalancingAssembly-Line Balancing


Learning ObjectivesLearning ObjectivesWhen you complete this chapter, you When you complete this chapter, you should be able to:should be able to:Identify or Define:Identify or Define:

Fixed-position layoutFixed-position layout Process-oriented layoutProcess-oriented layout Work cellsWork cells Focused work centerFocused work center Office layoutOffice layout


Learning ObjectivesLearning ObjectivesWhen you complete this chapter, you When you complete this chapter, you should be able to:should be able to:Identify or Define:Identify or Define:

Retail layoutRetail layout Warehouse layoutWarehouse layout Product-oriented layoutProduct-oriented layout Assembly-lineAssembly-line


Learning ObjectivesLearning ObjectivesWhen you complete this chapter, you When you complete this chapter, you should be able to:should be able to:Describe or Explain:Describe or Explain:

How to achieve a good layout for the How to achieve a good layout for the process facilityprocess facility

How to balance production flow in a How to balance production flow in a repetitive or product-oriented facilityrepetitive or product-oriented facility


Innovations at McDonald’sInnovations at McDonald’s

Indoor seating (1950s)Indoor seating (1950s) Drive-through window (1970s)Drive-through window (1970s) Adding breakfast to the menu Adding breakfast to the menu

(1980s)(1980s) Adding play areas (1990s)Adding play areas (1990s)

Three out of the four are Three out of the four are layout decisions!layout decisions!


McDonald’s New Kitchen McDonald’s New Kitchen LayoutLayout

Fifth major innovation Fifth major innovation Sandwiches assembled in order Sandwiches assembled in order Elimination of some steps, shortening of Elimination of some steps, shortening of

others others No food prepared ahead except pattyNo food prepared ahead except patty New bun toasting machine and new bun New bun toasting machine and new bun

formulationformulation Repositioning condiment containersRepositioning condiment containers Savings of $100,000,000 per year in food Savings of $100,000,000 per year in food

costscosts


McDonald’s McDonald’s New Kitchen New Kitchen LayoutLayout


Strategic Importance of Strategic Importance of Layout DecisionsLayout Decisions

The objective of layout strategy The objective of layout strategy is to develop an economic layout is to develop an economic layout

that will meet the firm’s that will meet the firm’s competitive requirementscompetitive requirements


Layout Design Layout Design ConsiderationsConsiderations

Higher utilization of space, equipment, Higher utilization of space, equipment, and peopleand people

Improved flow of information, materials, Improved flow of information, materials, or peopleor people

Improved employee morale and safer Improved employee morale and safer working conditionsworking conditions

Improved customer/client interactionImproved customer/client interaction FlexibilityFlexibility


Types of LayoutTypes of Layout

1.1. Office layout Office layout 2.2. Retail layout Retail layout 3.3. Warehouse layoutWarehouse layout4.4. Fixed-position layoutFixed-position layout5.5. Process-oriented layoutProcess-oriented layout6.6. Work cell layout Work cell layout 7.7. Product-oriented layoutProduct-oriented layout



1.1. Office layout - positions workers, Office layout - positions workers, their equipment, and spaces/offices their equipment, and spaces/offices to provide for movement of to provide for movement of informationinformation

2.2. Retail layout - allocates shelf space Retail layout - allocates shelf space and responds to customer behavior and responds to customer behavior

3.3. Warehouse layout - addresses Warehouse layout - addresses trade-offs between space and trade-offs between space and material handlingmaterial handling



4.4. Fixed-position layout - addresses Fixed-position layout - addresses the layout requirements of large, the layout requirements of large, bulky projects such as ships and bulky projects such as ships and buildingsbuildings

5.5. Process-oriented layout - deals with Process-oriented layout - deals with low-volume, high-variety production low-volume, high-variety production (also called job shop or intermittent (also called job shop or intermittent production)production)



6.6. Work cell layout - a special Work cell layout - a special arrangement of machinery and arrangement of machinery and equipment to focus on production of equipment to focus on production of a single product or group of related a single product or group of related productsproducts

7.7. Product-oriented layout - seeks the Product-oriented layout - seeks the best personnel and machine best personnel and machine utilizations in repetitive or utilizations in repetitive or continuous productioncontinuous production


Good Layouts ConsiderGood Layouts Consider

1.1. Material handling equipmentMaterial handling equipment2.2. Capacity and space requirementsCapacity and space requirements3.3. Environment and aestheticsEnvironment and aesthetics4.4. Flows of informationFlows of information5.5. Cost of moving between various Cost of moving between various

work areaswork areas


Layout StrategiesLayout Strategies

Table 9.1Table 9.1

OfficeOffice RetailRetailWarehouse Warehouse

(storage)(storage)ExamplesExamples

Allstate InsuranceAllstate InsuranceMicrosoft Corp.Microsoft Corp.

Kroger’s Kroger’s SupermarketSupermarketWalgreensWalgreensBloomingdale’sBloomingdale’s

Federal-Mogul’s Federal-Mogul’s warehousewarehouseThe Gap’s The Gap’s distribution centerdistribution center

Problems/IssuesProblems/IssuesLocate workers Locate workers requiring frequent requiring frequent contact close to contact close to one anotherone another

Expose customer Expose customer to high-margin to high-margin itemsitems

Balance low-cost Balance low-cost storage with low-storage with low-cost material cost material handlinghandling



Table 9.1Table 9.1

Project Project (fixed position)(fixed position)

Job Shop Job Shop (process oriented)(process oriented)

ExamplesExamplesIngall Ship Building Ingall Ship Building Corp.Corp.Trump PlazaTrump PlazaPittsburgh AirportPittsburgh Airport

Arnold Palmer HospitalArnold Palmer HospitalHard Rock CafesHard Rock Cafes

Problems/IssuesProblems/Issues

Move material to the Move material to the limited storage area limited storage area around the sitearound the site

Manage varied material Manage varied material flow for each productflow for each product



Table 9.1Table 9.1

Work Cells Work Cells (product families)(product families)

Repetitive/ Continuous Repetitive/ Continuous (product oriented)(product oriented)

ExamplesExamplesHallmark CardsHallmark CardsWheeled CoachWheeled CoachStandard AeroStandard Aero

Sony’s TV assembly Sony’s TV assembly linelineDodge minivansDodge minivans

Problems/IssuesProblems/IssuesIdentify product family, Identify product family, build teams, cross train build teams, cross train team membersteam members

Equalize the task time Equalize the task time at each workstationat each workstation


Office LayoutOffice Layout Grouping of workers, their Grouping of workers, their

equipment, and spaces to provide equipment, and spaces to provide comfort, safety, and movement of comfort, safety, and movement of informationinformation

Movement of information is main Movement of information is main distinctiondistinction

Typically in state of flux due to Typically in state of flux due to frequent technological changesfrequent technological changes


Relationship ChartRelationship ChartValue Closeness

A Absolutely necessary

E Especially important

I ImportantO Ordinary OKU UnimportantX Not desirable

President

Chief Technology Officer

Engineer’s area

Secretary

Office entrance

Central files

Equipment cabinet

Photocopy equipment

Storage room

O

UA

X

O

U

A

I

OA

I

O

U

AI

I

A

UO

AU O

UX

O I

U

OII

I

E

EE

E E

1122

3344

5566

7788

99

Figure 9.1Figure 9.1


Supermarket Retail LayoutSupermarket Retail Layout

Objective is to maximize Objective is to maximize profitability per square foot of profitability per square foot of floor spacefloor space

Sales and profitability vary Sales and profitability vary directly with customer exposuredirectly with customer exposure


Five Helpful Ideas for Five Helpful Ideas for Supermarket LayoutSupermarket Layout

1.1. Locate high-draw items around the Locate high-draw items around the periphery of the storeperiphery of the store

2.2. Use prominent locations for high-impulse Use prominent locations for high-impulse and high-margin itemsand high-margin items

3.3. Distribute power items to both sides of Distribute power items to both sides of an aisle and disperse them to increase an aisle and disperse them to increase viewing of other itemsviewing of other items

4.4. Use end-aisle locationsUse end-aisle locations5.5. Convey mission of store through careful Convey mission of store through careful

positioning of lead-off departmentpositioning of lead-off department


Store LayoutStore Layout



ServicescapesServicescapes Ambient conditions - background Ambient conditions - background

characteristics such as lighting, characteristics such as lighting, sound, smell, and temperaturesound, smell, and temperature

Spatial layout and functionality - Spatial layout and functionality - which involve customer circulation which involve customer circulation path planning, aisle characteristics, path planning, aisle characteristics, and product groupingand product grouping

Signs, symbols, and artifacts - Signs, symbols, and artifacts - characteristics of building design characteristics of building design that carry social significancethat carry social significance


Retail SlottingRetail Slotting Manufacturers pay fees to retailers Manufacturers pay fees to retailers

to get the retailers to display (slot) to get the retailers to display (slot) their producttheir product

Contributing factorsContributing factors Limited shelf spaceLimited shelf space An increasing number of new An increasing number of new

productsproducts Better information about sales Better information about sales

through POS data collectionthrough POS data collection Closer control of inventoryCloser control of inventory


Retail Store Shelf Space Retail Store Shelf Space PlanogramPlanogram

Computerized Computerized tool for shelf-tool for shelf-space space managementmanagement

Generated from Generated from store’s scanner store’s scanner data on salesdata on sales

Often supplied Often supplied by manufacturerby manufacturer

5 facings5 facings

Shampoo

Shampoo

Shampoo

Shampoo

Shampoo

Conditioner

Conditioner

Shampoo

Shampoo

Shampoo

Shampoo

Conditioner

2 ft.2 ft.


Warehousing and Storage Warehousing and Storage LayoutsLayouts

Objective is to optimize trade-offs Objective is to optimize trade-offs between handling costs and costs between handling costs and costs associated with warehouse spaceassociated with warehouse space

Maximize the total “cube” of the Maximize the total “cube” of the warehouse – utilize its full volume warehouse – utilize its full volume while maintaining low material while maintaining low material handling costshandling costs



All costs associated with the transactionAll costs associated with the transaction Incoming transportIncoming transport StorageStorage Finding and moving materialFinding and moving material Outgoing transportOutgoing transport Equipment, people, material, supervision, Equipment, people, material, supervision,

insurance, depreciationinsurance, depreciation Minimize damage and spoilageMinimize damage and spoilage

Material Handling CostsMaterial Handling Costs



Warehouse density tends to vary Warehouse density tends to vary inversely with the number of inversely with the number of different items storeddifferent items stored

Automated Storage and Retrieval Automated Storage and Retrieval Systems (ASRS) can significantly Systems (ASRS) can significantly improve warehouse productivityimprove warehouse productivity

Dock location is a key design Dock location is a key design elementelement


Cross-DockingCross-Docking

Materials are moved directly from Materials are moved directly from receiving to shipping and are not receiving to shipping and are not placed in storage in the placed in storage in the warehousewarehouse

Requires tight scheduling and Requires tight scheduling and accurate shipments, typically accurate shipments, typically with bar code identificationwith bar code identification


Random StockingRandom Stocking Typically requires automatic identification Typically requires automatic identification

systems (AISs) and effective information systems (AISs) and effective information systemssystems

Random assignment of stocking locations Random assignment of stocking locations allows more efficient use of spaceallows more efficient use of space

1.1. Maintain list of open locationsMaintain list of open locations2.2. Maintain accurate recordsMaintain accurate records3.3. Sequence items to minimize travel timeSequence items to minimize travel time4.4. Combine picking ordersCombine picking orders5.5. Assign classes of items to particular areasAssign classes of items to particular areas


CustomizationCustomization

Value-added activities performed at Value-added activities performed at the warehousethe warehouse

Enable low cost and rapid response Enable low cost and rapid response strategiesstrategies Assembly of componentsAssembly of components Loading softwareLoading software RepairsRepairs Customized labeling and packagingCustomized labeling and packaging


Shipping and receiving docks

Office

Cus

tom

izat

ion

Conveyor

Storage racks

Staging

Warehouse LayoutWarehouse LayoutTraditional LayoutTraditional Layout


Warehouse LayoutWarehouse LayoutCross-Docking LayoutCross-Docking Layout


Offi

ce



Fixed-Position LayoutFixed-Position Layout Product remains in one place Product remains in one place Workers and equipment come to Workers and equipment come to

sitesite Complicating factorsComplicating factors

Limited space at siteLimited space at site Different materials required at Different materials required at

different stages of the projectdifferent stages of the project Volume of materials needed is Volume of materials needed is

dynamicdynamic


Alternative StrategyAlternative Strategy

As much of the project as possible As much of the project as possible is completed off-site in a product-is completed off-site in a product-

oriented facilityoriented facility

This can significantly improve This can significantly improve efficiency but is only possible when efficiency but is only possible when

multiple similar units need to be multiple similar units need to be createdcreated


Process-Oriented LayoutProcess-Oriented Layout

Like machines and equipment are Like machines and equipment are grouped togethergrouped together

Flexible and capable of handling a Flexible and capable of handling a wide variety of products or wide variety of products or servicesservices

Scheduling can be difficult and Scheduling can be difficult and setup, material handling, and labor setup, material handling, and labor costs can be highcosts can be high


Surgery

Radiology

ER triage room

ER Beds Pharmacy

Emergency room admissions

Billing/exit

Laboratories


Patient A - broken leg

Patient B - erratic heart pacemaker




Arrange work centers so as to Arrange work centers so as to minimize the costs of material minimize the costs of material handlinghandling

Basic cost elements areBasic cost elements are Number of loads (or people) moving Number of loads (or people) moving

between centersbetween centers Distance loads (or people) move Distance loads (or people) move

between centersbetween centers


Layout at Arnold Palmer Layout at Arnold Palmer HospitalHospital



Minimize cost = Minimize cost = ∑ ∑∑ ∑ X Xijij C Cijij

nn

i i = 1= 1

nn

j j = 1= 1

wherewhere nn == total number of total number of work centers or departmentswork centers or departmentsi, ji, j == individual individual departmentsdepartmentsXXijij == number of loads number of loads moved from department i to moved from department i to department jdepartment jCCijij == cost to move a load cost to move a load between department i and between department i and department jdepartment j


Process Layout ExampleProcess Layout Example

1.1. Construct a “from-to matrix”Construct a “from-to matrix”2.2. Determine the space requirementsDetermine the space requirements3.3. Develop an initial schematic diagramDevelop an initial schematic diagram4.4. Determine the cost of this layout Determine the cost of this layout 5.5. Try to improve the layoutTry to improve the layout6.6. Prepare a detailed plan Prepare a detailed plan

Arrange six departments in a factory to Arrange six departments in a factory to minimize the material handling costs. minimize the material handling costs. Each department is 20 x 20 feet and the Each department is 20 x 20 feet and the building is 60 feet long and 40 feet wide.building is 60 feet long and 40 feet wide.


DepartmentDepartment AssemblyAssembly PaintingPainting MachineMachine ReceivingReceiving ShippingShipping TestingTesting(1)(1) (2)(2) Shop (3)Shop (3) (4)(4) (5)(5) (6)(6)

Assembly (1)Assembly (1)

Painting (2)Painting (2)

Machine Shop (3)Machine Shop (3)

Receiving (4)Receiving (4)

Shipping (5)Shipping (5)

Testing (6)Testing (6)

Number of loads per weekNumber of loads per week

50 100 0 0 20

30 50 10 0

20 0 100

50 0

0




Room 1Room 1 Room 2Room 2 Room 3Room 3

Room 4Room 4 Room 5Room 5 Room 6Room 660’60’

40’40’


Receiving Shipping TestingDepartment Department Department

(4) (5) (6)


Assembly Painting Machine ShopDepartment Department Department

(1) (2) (3)



Cost Cost == $50$50 ++ $200$200 ++ $40$40(1 and 2)(1 and 2) (1 and 3)(1 and 3) (1 and 6)(1 and 6)

++ $30$30 ++ $50$50 ++ $10$10(2 and 3)(2 and 3) (2 and 4)(2 and 4) (2 and 5)(2 and 5)


= $570= $570

Cost = Cost = ∑ ∑∑ ∑ X Xijij C Cijij

nn

i i = 1= 1

nn

j j = 1= 1


100100

5050

2020

5050

5050

20201010

100100

3030

Process Layout ExampleProcess Layout ExampleInterdepartmental Flow GraphInterdepartmental Flow Graph

1 2 3

4 5 6




Cost Cost == $50$50 ++ $100$100 ++ $20$20(1 and 2)(1 and 2) (1 and 3)(1 and 3) (1 and 6)(1 and 6)



= $480= $480

Cost = Cost = ∑ ∑∑ ∑ X Xijij C Cijij

nn

i i = 1= 1

nn

j j = 1= 1



3030

5050

1010

5050

505020205050 100100

100100

Interdepartmental Flow GraphInterdepartmental Flow Graph

2 1 3

4 5 6



Room 1Room 1 Room 2Room 2 Room 3Room 3

Room 4Room 4 Room 5Room 5 Room 6Room 660’60’

40’40’


Receiving Shipping TestingDepartment Department Department

(4) (5) (6)


Painting Assembly Machine ShopDepartment Department Department

(2) (1) (3)


Computer SoftwareComputer Software Graphical approach only works for Graphical approach only works for

small problemssmall problems Computer programs are available to Computer programs are available to

solve bigger problemssolve bigger problems CRAFTCRAFT ALDEPALDEP CORELAPCORELAP Factory FlowFactory Flow


CRAFT ExampleCRAFT Example11 22 33 44 55 66

11 A A A A B B

22 A A A A B B

33 D D D D D D

44 C C D D D D

55 F F F F F D

66 E E E E E D

PATTERNPATTERN

TOTAL COST 20,100TOTAL COST 20,100EST. COST REDUCTION .00EST. COST REDUCTION .00ITERATION 0ITERATION 0

(a)(a)

11 22 33 44 55 66

11 D D D D B B

22 D D D D B B

33 D D D E E E

44 C C D E E F

55 A A A A A F

66 A A A F F F

PATTERNPATTERN

TOTAL COST 14,390TOTAL COST 14,390EST. COST REDUCTION 70.EST. COST REDUCTION 70.ITERATION 3ITERATION 3

(b)(b) Figure 9.9Figure 9.9


Work CellsWork Cells Reorganizes people and machines Reorganizes people and machines

into groups to focus on single into groups to focus on single products or product groupsproducts or product groups

Group technology identifies Group technology identifies products that have similar products that have similar characteristics for particular cellscharacteristics for particular cells

Volume must justify cellsVolume must justify cells Cells can be reconfigured as Cells can be reconfigured as

designs or volume changesdesigns or volume changes


Advantages of Work CellsAdvantages of Work Cells1.1. Reduced work-in-process inventoryReduced work-in-process inventory2.2. Less floor space requiredLess floor space required3.3. Reduced raw material and finished Reduced raw material and finished

goods inventorygoods inventory4.4. Reduced direct laborReduced direct labor5.5. Heightened sense of employee Heightened sense of employee

participationparticipation6.6. Increased use of equipment and Increased use of equipment and

machinerymachinery7.7. Reduced investment in machinery Reduced investment in machinery

and equipmentand equipment


Improving Layouts Using Improving Layouts Using Work CellsWork Cells

Current layout - workers in Current layout - workers in small closed areas. small closed areas. Cannot increase output Cannot increase output without a third worker and without a third worker and third set of equipment.third set of equipment. Improved layout - cross-trained Improved layout - cross-trained

workers can assist each other. workers can assist each other. May be able to add a third worker May be able to add a third worker as additional output is needed.as additional output is needed.

Figure 9.10 (a)Figure 9.10 (a)


Improving Layouts Using Improving Layouts Using Work CellsWork Cells

Current layout - straight Current layout - straight lines make it hard to balance lines make it hard to balance tasks because work may not tasks because work may not be divided evenlybe divided evenly

Improved layout - in U Improved layout - in U shape, workers have better shape, workers have better access. Four cross-trained access. Four cross-trained workers were reduced.workers were reduced.

Figure 9.10 (b)Figure 9.10 (b)

U-shaped line may reduce employee movement and space requirements while enhancing communication, reducing the number of workers, and facilitating inspection


Requirements of Work CellsRequirements of Work Cells1.1. Identification of families of productsIdentification of families of products2.2. A high level of training and A high level of training and

flexibility on the part of employeesflexibility on the part of employees3.3. Either staff support or flexible, Either staff support or flexible,

imaginative employees to establish imaginative employees to establish work cells initiallywork cells initially

4.4. Test (poka-yoke) at each station in Test (poka-yoke) at each station in the cellthe cell


Staffing and Balancing Staffing and Balancing Work CellsWork Cells

Determine the takt timeDetermine the takt time

Takt time =Takt time = total work time availabletotal work time availableunits requiredunits required

Determine the number Determine the number of operators requiredof operators required

Workers required =Workers required = total operation time requiredtotal operation time requiredtakt timetakt time


Staffing Work Cells ExampleStaffing Work Cells Example600 600 Mirrors per day requiredMirrors per day requiredMirror production scheduled for Mirror production scheduled for 88 hours per day hours per dayFrom a work balance chart From a work balance chart

total operation time total operation time = 140= 140 seconds seconds

Stan

dard

tim

e re

quire

dSt

anda

rd ti

me

requ

ired

OperationsOperations

AssembleAssemble PaintPaint TestTest LabelLabel Pack forPack forshipmentshipment

6060

5050

4040

3030

2020

1010

00


600600 Mirrors per day required Mirrors per day requiredMirror production scheduled for Mirror production scheduled for 88 hours per day hours per dayFrom a work balance chart From a work balance chart

total operation time = total operation time = 140 140 secondsseconds

Staffing Work Cells ExampleStaffing Work Cells Example

Takt timeTakt time = = (8(8 hrs hrs x 60x 60 mins mins) / 600) / 600 units units = .8= .8 mins mins = 48= 48 seconds seconds

Workers requiredWorkers required ==total operation time requiredtotal operation time required

takt timetakt time= 140 / 48 = 2.91= 140 / 48 = 2.91


Work Balance ChartsWork Balance Charts Used for evaluating operation Used for evaluating operation

times in work cellstimes in work cells Can help identify bottleneck Can help identify bottleneck

operationsoperations Flexible, cross-trained employees Flexible, cross-trained employees

can help address labor bottleneckscan help address labor bottlenecks Machine bottlenecks may require Machine bottlenecks may require

other approachesother approaches


Focused Work Center and Focused Work Center and Focused FactoryFocused Factory

Focused Work CenterFocused Work Center Identify a large family of similar products Identify a large family of similar products

that have a large and stable demandthat have a large and stable demand Moves production from a general-purpose, Moves production from a general-purpose,

process-oriented facility to a large work cellprocess-oriented facility to a large work cell Focused FactoryFocused Factory

A focused work cell in a separate facilityA focused work cell in a separate facility May be focused by product line, layout, May be focused by product line, layout,

quality, new product introduction, flexibility, quality, new product introduction, flexibility, or other requirementsor other requirements


Focused Work Center and Focused Work Center and Focused FactoryFocused Factory

Table 9.2Table 9.2

Work CellWork Cell Focused Work CenterFocused Work Center Focused FactoryFocused Factory

A work cell is a A work cell is a temporary product-temporary product-oriented arrangement oriented arrangement of machines and of machines and personnel in what is personnel in what is ordinarily a process-ordinarily a process-oriented facility.oriented facility.

A focused work center is A focused work center is a permanent product-a permanent product-oriented arrangement oriented arrangement of machines and of machines and personnel in what is personnel in what is ordinarily a process-ordinarily a process-oriented facility.oriented facility.

A focused factory is a A focused factory is a permanent facility to permanent facility to produce a product or produce a product or component in a component in a product-oriented product-oriented facility. Many focused facility. Many focused factories currently factories currently being built were being built were originally part of a originally part of a process-oriented process-oriented facility.facility.

Example: A job shop Example: A job shop with machinery and with machinery and personnel; rearranged personnel; rearranged to produce 300 unique to produce 300 unique control panels.control panels.

Example: Pipe bracket Example: Pipe bracket manufacturing at a manufacturing at a shipyard.shipyard.

Example: A plant to Example: A plant to produce window produce window mechanism for mechanism for automobiles.automobiles.


Repetitive and Product-Repetitive and Product-Oriented LayoutOriented Layout

Volume is adequate for high equipment Volume is adequate for high equipment utilizationutilization

Product demand is stable enough to justify high Product demand is stable enough to justify high investment in specialized equipmentinvestment in specialized equipment

Product is standardized or approaching a phase Product is standardized or approaching a phase of life cycle that justifies investment of life cycle that justifies investment

Supplies of raw materials and components are Supplies of raw materials and components are adequate and of uniform qualityadequate and of uniform quality

Organized around products or families of Organized around products or families of similar high-volume, low-variety productssimilar high-volume, low-variety products


Product-Oriented LayoutsProduct-Oriented Layouts Fabrication lineFabrication line

Builds components on a series of machinesBuilds components on a series of machines Machine-pacedMachine-paced Require mechanical or engineering changes Require mechanical or engineering changes

to balanceto balance Assembly lineAssembly line

Puts fabricated parts together at a series of Puts fabricated parts together at a series of workstationsworkstations

Paced by work tasksPaced by work tasks Balanced by moving tasksBalanced by moving tasks

Both types of lines must be balanced so that the Both types of lines must be balanced so that the time to perform the work at each station is the sametime to perform the work at each station is the same


Product-Oriented LayoutsProduct-Oriented Layouts

1.1. Low variable cost per unitLow variable cost per unit2.2. Low material handling costsLow material handling costs3.3. Reduced work-in-process inventoriesReduced work-in-process inventories4.4. Easier training and supervisionEasier training and supervision5.5. Rapid throughputRapid throughput

AdvantagesAdvantages

1.1. High volume is requiredHigh volume is required2.2. Work stoppage at any point ties up the Work stoppage at any point ties up the

whole operationwhole operation3.3. Lack of flexibility in product or production Lack of flexibility in product or production

ratesrates

DisadvantagesDisadvantages


Assembly-Line BalancingAssembly-Line Balancing Objective is to minimize the imbalance Objective is to minimize the imbalance

between machines or personnel while between machines or personnel while meeting required outputmeeting required output

Starts with the precedence Starts with the precedence relationshipsrelationships

1.1. Determine cycle timeDetermine cycle time2.2. Calculate theoretical minimum number Calculate theoretical minimum number

of workstationsof workstations3.3. Balance the line by assigning specific Balance the line by assigning specific

tasks to workstationstasks to workstations


Copier ExampleCopier Example

This means that This means that tasks B and E tasks B and E cannot be done cannot be done until task A has until task A has been completedbeen completed

PerformancePerformance Task Must FollowTask Must FollowTimeTime Task ListedTask Listed

TaskTask (minutes)(minutes) BelowBelowAA 1010 ——BB 1111 AACC 55 BBDD 44 BBEE 1212 AAFF 33 C, DC, DGG 77 FFHH 1111 EEII 33 G, HG, HTotal time Total time 6666


Copier ExampleCopier ExamplePerformancePerformance Task Must FollowTask Must Follow

TimeTime Task ListedTask ListedTaskTask (minutes)(minutes) BelowBelow

AA 1010 ——BB 1111 AACC 55 BBDD 44 BBEE 1212 AAFF 33 C, DC, DGG 77 FFHH 1111 EEII 33 G, HG, HTotal time Total time 6666 I

GF

C

D

H

B

E

A10

1112

5

4 3

711 3

Figure 9.13


I

GF

C

D

H

B

E

A10

1112

5

4 3

711 3

Figure 9.13



Copier ExampleCopier Example480 available

mins per day40 units required

Cycle time =Production time available per day

Units required per day= 480 / 40= 12 minutes per unit

Minimum number of

workstations=

∑ Time for task i

Cycle time

n

i = 1

= 66 / 12= 5.5 or 6 stations


I

GF

C

D

H

B

E

A10

1112

5

4 3

711 3

Figure 9.13





Cycle time = 12 minsMinimum

workstations = 5.5 or 6

Line-Balancing Heuristics

1. Longest task time Choose the available task with the longest task time

2. Most following tasks Choose the available task with the largest number of following tasks

3. Ranked positional weight

Choose the available task for which the sum of following task times is the longest

4. Shortest task time Choose the available task with the shortest task time

5. Least number of following tasks

Choose the available task with the least number of following tasks

Table 9.4


480 available mins per day

40 units requiredCycle time = 12 mins

Minimum workstations = 5.5 or 6



Copier ExampleCopier Example

I

GF

H

C

D

B

E

A10 11

12

5

4

3 7

11

3

Station 1

Station 2

Station 3

Station 5

Station 4

Station 6

Figure 9.14






Cycle time = 12 minsMinimum

workstations = 5.5 or 6

Efficiency =∑ Task times

(actual number of workstations) x (largest cycle time)

= 66 minutes / (6 stations) x (12 minutes)= 91.7%

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