OM Facility Layout

Operations Management
Facility Layout
Facility Layout
Strategic importance of facility layout
Helps achieve competitive priorities of

Cost
Time
Flexibility
Facility Layout
Considerations while deciding on layout
Utilization of space
Utilization of people/machinery
Flow of information
Flow of material
Flow of people
Safety, ventilation, illumination
Flexibility of output
Facility Layout
Considerations while deciding a layout
(contd)
Ease of stock picking
Ease of communication among employees
Ease of maintenance of machinery
Ease of communication with customers
Profitability per square foot of space
Facility Layout
Layout is the physical arrangement of
facilities in an organization
Major types of layouts:
1.Process layout or functional layout
2.Product layout
3.Cellular layout
4.Fixed position layout
Objectives of a designing a layout
Process-Oriented Layout
A process layout has the following features:
• Suitable for low volume, high variety
• Facilities are set up around processes
• High waiting times
• Lot of material movement between departments
• High work in process inventory
• Highly skilled labor
• High job satisfaction
• Break down of one machine does not stop whole
production
Process-Oriented Layout
n n
Minimize cost = ∑ ∑ Xij Cij

i=1 j=1
where n = total number of

work centers or departments
i, j = individual
departments
Xij = number of loads
moved from department i to
department j
Cij = cost to move a load
between department i and
Steps in designing a Process
Layout
1.Construct a “from-to matrix”
2.Determine the space requirements
3.Develop an initial schematic diagram
4.Determine the cost of this layout
5.Try to improve the layout
6.Prepare a detailed plan
Process Layout Example
Arrange six departments in a factory to
minimize the material handling costs.
Each department is 20 x 20 feet and the
building is 60 feet long and 40 feet wide.
Number of loads per week
Department Assembly Painting Machine Receiving Shipping Testing
(1) (2) Shop (3) (4) (5) (6)
Assembly (1) 50 100 0 0 20
Painting (2) 30 50 10 0
Machine Shop (3) 20 0 100
Receiving (4) 50 0
Shipping (5) 0
Testing (6)
Area 1 Area 2 Area 3
Assembly Painting Machine Shop

Department Department Department
(1) (2) (3)
40’
Receiving Shipping Testing

(4) (5) (6)

60’
Cost of moving between adjacent deptts:
Interdepartmental Flow $1 per load
Cost of moving between non-adjacent
100 deptts: $ 2 per load
50 30
1 2 3
20 20
10
50 100
4 5 6
50
n n
Cost = ∑ ∑ Xij Cij

i=1 j=1
Cost = $50 + $200 + $40

(1 and 2) (1 and 3) (1 and 6)
+ $30 + $50 + $10
(2 and 3) (2 and 4) (2 and 5)
+ $40 + $100 + $50
(3 and 4) (3 and 6) (4 and 5)
= $570
Revised Interdepartmental Flow Graph
30
50 100
2 1 3
10
50 20 20 100
50
4 5 6
n n
Cost = ∑ ∑ Xij Cij

i=1 j=1
Cost = $50 + $100 + $20

(1 and 2) (1 and 3) (1 and 6)
+ $60 + $50 + $10
(2 and 3) (2 and 4) (2 and 5)
+ $40 + $100 + $50
(3 and 4) (3 and 6) (4 and 5)
= $480
Painting Assembly Machine Shop

(2) (1) (3)
40’
Receiving Shipping Testing

(4) (5) (6)

60’
Process Layouts: Relationship Chart
Computer Software
 Computer programs are available to

prepare process layouts
 CRAFT
 ALDEP
 CORELAP
Product-Oriented Layouts
Product oriented layouts have the following
features.
• Used for high volumes, low variety
• facilities are set up around products
• low material handling
• low work in process inventories
• low skill levels
• low job satisfaction
• break down of one machine stops whole
production
Product-Oriented Layouts
 Fabrication line
 Builds components on a series of machines
 Machine-paced
 Require mechanical or engineering changes
to balance
 Assembly line
 Puts fabricated parts together at a series of
workstations
 Paced by work tasks
 Balanced by moving tasks
Both types of lines must be balanced so that the
time to perform the work at each station is the same
McDonald’s Assembly Line
Assembly-Line Balancing
Objective is to minimize the imbalance
between machines or personnel while
meeting required output
1. Determine cycle time

2. Determine the precedences
3. Draw the precedence diagram
4. Balance the line by
assigning specific
tasks to workstations
Assembly-Line Balancing
While balancing the line keep the following
two things in mind:
1. Do not violate precedence relationships

2. Do not exceed cycle time
Wing Component Example
Performance Task Must Follow
Time Task Listed
Task (minutes) Below
A 10 —
B 11 A This means that
C 5 B tasks B and E
cannot be done
D 4 B until task A has
E 12 A been completed
F 3 C, D
G 7 F
H 11 E
I 3 G, H
Total time 66
Performance Task Must Follow
Time Task Listed
Task (minutes) Below
A 10 —
B 11 A
C 5 B
D 4 B
E 12 A
F 3 C, D 5
G 7 F 10 11
C
3 7
H 11 E
A B F G
I 3 G, H 4
3
Total time 66 12
D
11 I
E H
Figure 9.13
Performance Task Must Follow 480 available
Time Task Listed mins per day
Task (minutes) Below 40 units required
A 10 —
B 11 A Production time
C 5 B available per day
D 4 CycleB time = Units required per day
E 12 A = 480 / 40
F 3 C, D 5
= 12 minutes per unit
G 7 F 10 11
C
3 7
H 11 E n
Minimum A ∑ TimeB for taskFi G
I 3 G, H 4
number of = i = 1 3
Total time 66 workstations Cycle Dtime
12 11 I
= 66 / 12
E H
= 5.5 or 6 stations
Figure 9.13
A 10 — Cycle time = 12 mins
B 11 A Minimum
Station
workstations = 5.5 or 6
C 52 5 B
D 4 C B
E 10 11
12 A 3 7
F A B3 C, D F G
4 3
G 7 F
H 11 D E Station 3 I
I 3 12 G, H 11
Station 6
Total
Stationtime 66
1 E H
Station Station
4 5 Figure 9.14
A 10 — Cycle time = 12 mins
B 11 A Minimum
C 5 B workstations = 5.5 or 6
D 4 B
E 12 A
F 3 C, D
G 7 F ∑ Task times
Efficiency =
H (Actual number ofEworkstations) x (Largest cycle time)
11
I 3 G, H
= 66 minutes / (6 stations) x (12 minutes)
Total time 66
= 91.7%
Work Cells/ Cellular layout
 Reorganizes people and machines
into groups to focus on single
products or product groups
 Group technology identifies
products that have similar
characteristics for particular cells
 Volume must justify cells
 Cells can be reconfigured as
designs or volume changes
Advantages of Work Cells
1. Reduced work-in-process inventory
2. Less floor space required
3. Reduced raw material and finished
goods inventory
4. Reduced direct labor
5. Increased use of equipment and
machinery
Improving Layouts Using
Work Cells
Current layout - straight

lines make it hard to balance Improved layout - in U
tasks because work may not shape, workers have better
be divided evenly access. Four cross-trained
workers were reduced.
U-shaped line may reduce employee movement

and space requirements while enhancing
communication, reducing the number of
Figure 9.10 (b) workers, and facilitating inspection

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Operations Management

Helps achieve competitive priorities of

Minimize cost = ∑ ∑ Xij Cij

where n = total number of

Assembly (1) 50 100 0 0 20

Machine Shop (3) 20 0 100

Assembly Painting Machine Shop

Receiving Shipping Testing

Area 4 Area 5 Area 6

Cost = ∑ ∑ Xij Cij

Cost = $50 + $200 + $40

Cost = ∑ ∑ Xij Cij

Cost = $50 + $100 + $20

Painting Assembly Machine Shop

Receiving Shipping Testing

Area 4 Area 5 Area 6

 Computer programs are available to

1. Determine cycle time

1. Do not violate precedence relationships

Current layout - straight

U-shaped line may reduce employee movement

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