Layout Strategy

Objectives of the Layout Strategy

Developan economical layout which will
meet the requirements 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)

What is Facility Layout

Location or arrangement of everything

within & around buildings
Objectives are to maximize
Customer satisfaction
Utilization of space, equipment, & people
Efficient flow of information, material, & people
Employee morale & safety
Strategic Importance of Layout
Proper layout enables:
Higher utilization of space, equipment,and
people
Improved flow of information, materials, or
people
Improved employee morale and safer working
conditions
Improved customer/client interaction
Flexibility
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 for information flow
Identification of the cost of moving between
the various work areas
Constraints on Layout Objectives

Product design & volume

Process equipment & capacity
Quality of work life
Building and site
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, and
spaces/offices to provide for movement of
information
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
Fixed-Position Layout

Design is for stationary project

Workers and equipment come to site
Complicating factors
Limited space at site
Changing material needs
Factors Complicating a Fixed
Position Layout
There is limited space at virtually all
sites
At different stages in the construction
process, different materials are needed
therefore, different items become
critical as the project develops
The volume of materials needed is
dynamic
Process-Oriented Layout

Design places departments with large

flows of material or people together
Department areas having similar
processes located in close proximity
e.g., All x-ray machines in same area
Used with process-focused processes
Emergency Room Layout

E.R.Triage Patient A -
broken leg
room
Patient B - erratic
pacemaker

Hallway

E.R. beds Pharmacy Billing/exit

Steps in Developing a
Process-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 in addition to transportation cost
Cost of Process-Oriented Layout
n n
Minimize cost X ijC ij
i 1 j1

where n total number of work centers

or department s
i, j individual department s
X ij number of loads moved from
department i to department j
C ij cost to move a load between
department i and department j
Interdepartmental Flow of Parts

1 2 3 4 5 6
1 50 100 0 0 20
2 30 50 10 0
3 20 0 100
4 50 0
5 0
6
Number of Weekly Loads

100

1 2 3
50 30

100

10

4 5 6
50
Possible Layout 1
Room 1 Room 2 Room 3
Assembly Painting Machine Shop
Department Department Department
(1) (2) (3)

Receiving Shipping Testing 40

Department Department Department
(4) (5) (6)

Room 4 Room 5 Room 6

60
Number of Weekly Loads

30

1 2 3
50 100

100

4 5 6
50
Possible Layout 2
Room 1 Room 2 Room 3
Painting Assembly Machine Shop
Department Department Department
(2) (1) (3)

Receiving Shipping Testing 40

Department Department Department
(4) (5) (6)

Room 4 Room 5 Room 6

60
Computer Programs for Layout

CRAFT
SPACECRAFT
CRAFT 3-D
MULTIPLE
CORELAP
ALDEP
COFAD
FADES - expert system
Out-Patient Hospital Example
CRAFT
1 2 3 4 5 6 1 2 3 4 5 6
Legend:
1 A AAA
B B 1DDDD B B
A = xray/MRI rooms
2 A AAA
B B 2DDDD B B
B = laboratories
3DDDD D D 3DDDE E E
C = admissions
D = exam rooms 4CCDD D D 4CCDE E F
E = operating rooms 5 5 A AAA
F F F F
F D A F
F = recovery rooms 6 6
EEEEE D AAAF F F
Total cost: 20,100 Total cost: 14,390
Est. Cost Reduction .00 Est. Cost Reduction 70.
Iteration 0 Iteration 3
Cellular Layout - Work Cells

Special case of product-oriented layout

- in what is ordinarily a process-oriented
facility
Consists of different machines brought
together to make a product
Temporary arrangement only
Example: Assembly line set up to
produce 3000 identical parts in a job
shop
Improving Layouts by Moving to
the Work Cell Concept
Work Cells - Some Advantages
Reduced work-in-process inventory
Less floor space required
Reduced raw material and finished goods
inventories required
Reduced direct labor costs
Heightened sense of employee participation
Increased utilization of equipment machinery
Reduced investment in machinery and
equipment
Work Cell Advantages

Inventory Equipment
Floor space utilization
Direct labor costs Employee
participation
Quality
Work Cell Floor Plan

Saws Drills Office

Work Cell
Tool Room
Requirements for Cellular
Production
Identification of families of products -
group technology codes
High level of training and flexibility on the
part of the employees
Either staff support or flexible,
imaginative employees to establish the
work cells initially
Test (poka-yoke) at each station in the
cell
Work Cells, etc.
Work Cell A temporary assembly-line-oriented arrangement of
machines and personnel in what is ordinarily a process-
oriented facility
Example: job shop with rearranged machinery and
personnel to produce 30 unique control panels

Focused Work A permanent assembly-line-oriented arrangement of

Center machines and personnel in what is ordinarily a process-
oriented facility
Example: manufacturing of pipe brackets at a shipyard

Focused Factory A permanent facility to produce a product or component in

a product-oriented facility
Example: a plant to produce window mechanisms for
automobiles
Number of Product Lines and
Operating Performance
15

I(2)
More focused

10 H(2)
plants G(1) K(2)

J(1)
5 A(6)
Less focused D(6)
E(4) plants F(6)

0
C(5)
B(5)
-5

100
Sales ($M)
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
Office Layout Floor Plan

Accounting
Finance
Fin. Acct.

Manager Brand X
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
Retail Layouts - Rules of Thumb
Locate high-draw items around the periphery of the
store
Use prominent locations such as the first or last aisle
for high-impulse and high margin items
Remove crossover aisles that allow customers the
opportunity 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 of other items
Use end aisle locations because they have a very high
exposure rate
Retail/Service Layout
Grid Design
Grocery Store
Bread Meat

Produce Frozen Foods

Milk

Check-
Office Carts
out
Retail/Service Layout -
Free-Flow Design
Apparel Store

Feature Trans.
Counter

Display
Table
Retail Store Shelf Space
Planogram
Computerized tool 5
for shelf-space facings

PERT
PERT
PERT

PERT
PERT
management
Generated from
stores scanner

SUAVE
SUAVE
VO-5

VO-5
VO-5
data on sales

VO-5
VO-5
Often supplied by
manufacturer
Example: P&G 2 ft.
A Good Service Layout
(Servicescape) Considers
Ambient conditions - background
characteristics 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
carry social significance
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

Conveyor
Truck

Zones Order Picker

Cross Docking
Transferring goods
from incoming trucks at In-
receiving docks coming
to outgoing trucks at Outgoing
shipping docks
Avoids placing goods into
storage
Requires suppliers
provide effective
addressing (bar codes)
and packaging that
provides for rapid
transhipment
1984-1994 T/Maker Co.
1995 Corel Corp.
Random Stocking Systems Often:
Maintain a list of open locations
Maintain accurate records of existing
inventory and its locations
Sequence items on orders to minimize
travel time required to pick orders
Combine orders to reduce picking time
Assign certain items or classes of items,
such as high usage items, to particular
warehouse areas so that distance
traveled is minimized
Product-Oriented Layout

Facility organized around product

Design minimizes line imbalance
Delay between work stations
Types: Fabrication line; assembly line
Product-Oriented Requirements

Standardized product
High production volume
Stable production quantities
Uniform quality of raw materials &
components
Product-Oriented Layout - Assumptions
Volume is adequate for high equipment
utilization
Product demand is stable enough to justify
high investment in specialized equipment
Product is standardized or approaching a
phase of its life cycle that justifies investment
in specialized equipment
Supplies of raw materials and components
are adequate and of uniform quality to ensure
they will work with specialized equipment
Product-Oriented Layout Types

Fabrication Line Assembly Line

Builds components Assembles
Uses series of fabricated parts
machines Uses workstations
Repetitive process Repetitive process
Machine paced Paced by tasks
Balanced by physical Balanced by
redesign moving tasks
Product Layout Advantages
Lower variable cost per
unit
Lower material handling
costs
Lower work-in-process
inventories
Easier training &
supervision
Rapid throughput
Product Layout Disadvantages

Higher capital
investment
Special equipment
Any work stoppage
stops whole process
Lack of flexibility
Volume
Product
An Assembly Line Layout
Assembly Line Types
Repetitive Layout

Work 1 Station 3 4 Work

Station

Work Station 2 5
Belt Conveyor

Office

Note: 5 tasks or operations; 3 work stations

Assembly Line Balancing

Analysis of production lines

Nearly equally divides work between
workstations while meeting required
output
Objectives
Maximize efficiency
Minimize number of
work stations
Assembly Line Balancing
The General Procedure

Determine cycle time by taking the demand

(or production rate) per day and dividing it
into the productive time available per day
Calculate the theoretical minimum number of
work stations 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
1. Determine tasks (operations)
2. Determine sequence
3. Draw precedence diagram
4. Estimate task times
5. Calculate cycle time
6. Calculate number of work stations
7. Assign tasks
8. Calculate efficiency
Assembly Line Balancing Jargon

Task an element of work on the product

line
Workstation a physical location where a
particular set of tasks is performed
Product Line much like a moving
conveyor that passes a series of
workstations in a uniform time interval:
Cycle Time the time between successive
units coming off the end of the line
Assembly Line Balancing Equations

Production time available

Cycle time =
Demand per day

Minimum Task times

number of =
work Cycle time
stations
Task times
Efficiency =
(Actual number
* (Cycle time)
of work
stations)
Heuristics for Assigning Tasks in
Assembly Line Balancing
Longest task time - choose task with longest
operation time
Most following tasks - choose task with
largest number of following tasks
Ranked positional weight - choose task
where the sum of the times for each following
task is longest
Shortest task time - choose task with shortest
operation time
Least number of following tasks - choose task
with fewest subsequent tasks
Line Balancing Example #1
Task Predecessor Seconds
A - 60
B A 80
C - 30
D C 40
E B, D 30
F - 50
G F 100
H D, G 70
I E, H 30
Line Balancing Example #1 (cont.)

Assuming:
Demand of 160 units per day
Operating time of 8 hours per day

Compute (using longest task time):

Cycle time
Theoretical minimum number of
workstations
Assignment of tasks to workstations
Efficiency of the line
Line Balancing Example #2
Task Predecessor Seconds
A - 60
B A 80
C - 30
D C 40
E B, D 30
F - 50
G F 100
H D, G 70
I E, H 30
Line Balancing Example #2 (cont.)

Assuming:
Demand is unknown
Operating time of 8 hours per day

Compute (using most following tasks):

Cycle time
Theoretical minimum number of
workstations
Assignment of tasks to workstations
Efficiency of the line