Facility Layout 1st Feb 2011 [ Production and Operations management]

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C HAPTERLayout Strategy or facility layout

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WHAT IS F ACILITY L AYOUT

Location or arrangement of everything within &

around buildingsObjectives are to maximize

Customer satisfaction

Utilization of space, equipment, & peopleEfficient flow of information, material, &people

Employee morale & safety

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OBJECTIVES OF THE L AYOUT STRATEGY

Develop an economical layout which will meet the

requirements of:product design and volume (product strategy)process equipment and capacity (process

s ra egyquality of work life (human resource strategy)building and site constraints (location

strategy)

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LOCATE A LL A REAS IN AND A ROUND

BUILDINGS

Equipment

Work stationsMaterial storageRest/break areas

UtilitiesEating areas

Aisles

Offices

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STRATEGIC IMPORTANCE OF L AYOUT

Proper layout enables :

Higher utilization of space, equipment,andpeopleImproved flow of information, materials, or

peop eImproved employee morale and safer workingconditions

Improved customer/client interactionFlexibility

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CHARACTERISTICS OF THE F ACILITY L AYOUT

DECISION

Location of these various areas impacts the flow

through the system.The layout can affect productivity and costsgenerated by the system.

the amount and type of space required for the variousareasthe amount and type of space available

the operations strategy. . . more

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CHARACTERISTICS OF THE F ACILITY L AYOUT

DECISION

Layout decisions tend to be:InfrequentExpensive to implementStudied and evaluated extensively

Long-term commitments

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REQUIREMENTS OF A GOOD L AYOUT

A good layout requires:4 an understanding of capacity & space requirements4 selection of appropriate material handling equipment4 decisions regarding environment and aesthetics4 identification and understandin of the re uirements for

information flow4 identification of the cost of moving between the various

work areas

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S IX L AYOUT STRATEGIES

Fixed-position layout

large bulky projects such as ships and buildingsProcess-oriented layout

deals with low-volume, high-variety production“ ”o s op , n erm en pro uc on

Office layoutpositions workers, their equipment, andspaces/offices to provide for movement of information

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S IX L AYOUT STRATEGIES - CONTINUED

Retail/service layoutallocates shelf space and responds to customer behavior

Warehouse layoutaddresses trade-offs between space and materialhandling

Product-oriented layoutseeks the best personnel and machine use in repetitiveor continuous production

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Types of Facility Layouts

• A product layout is an arrangement based on the sequence of operations that are

performed during the manufacturing of a ood or deliver of a service.

• Examples : winemaking industry, credit cardprocessing, Subway sandwich shops, papermanufacturers, insurance policy processing,and automobile assembly lines.

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Types of Facility Layouts

Product Layout

• Advantages of product layouts include lower work-in-process inventories, shorter processing times,

, ,planning and control systems.

• Disadvantages include that a breakdown at oneworkstation can cause the entire process to shutdown; a change in product design or theintroduction of new products may require majorchanges in the layout, limiting flexibility.

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Product Layout for Wine

Manufacturer

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Types of Facility Layouts

• A process layout consists of a functional grouping of equipment or activities that do similar work.

• xamp es : ega o ces, s oe manu ac ur ng, jet engine turbine blades, and hospitals use aprocess layout.

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Types of Facility Layouts

Process Layout

• Advantages of process layouts include a lowerinvestment in equipment, and the diversity of jobs

worker satisfaction.

• Disadvantages include high movement andtransportation costs, more complicated planningand control systems, longer total processing time,higher in-process inventory or waiting time, andhigher worker-skill requirements.

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Process Layout for a Machine Shop

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Cellular Layout

• In a cellular layout the design is not according to the functional characteristics of equipment, but rather by self-contained groups of equipment (called cells), needed for

producing a particular set of goods or services.

• Group technology, or cellular manufacturing,classifies parts into families so that efficientmass-production-type layouts can be designedfor the families of goods or services.

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P ROCESS VS . P RODUCT L AYOUTS

Here are the characteristic differences between a processand product layout.

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Cellular Layout

• Cellular layouts are used to centralize peopleexpertise and equipment capability.

• Examples: groups of different equipment

ca e ce s nee e or pro uc ng am es ogoods or services, group legal (labor law,bankruptcy, divorce, etc.), or medical specialties(maternity, oncology, surgery, etc.).

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Cellular Manufacturing Layout

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• A fixed-position layout consolidates the resources necessary to manufacture a good or deliver a service, such as people, materials,and e ui ment in one h sical location.

Fixed-Position Layout

• The production of large items such as heavymachine tools, airplanes, buildings,locomotives, and ships is usually accomplishedin a fixed-position layout.

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Fixed-Position Layout

• This fixed-position layout is synonymous withthe "project" classification of processespresented in Chapter 7.

• erv ce-prov ng rms a so use xe -pos onlayouts; examples include major hardware andsoftware installations, sporting events, andconcerts.

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2 4

H YBRID L AYOUTS

Combine elements of both product &process layouts

Maintain some of the efficiencies of product

© Wile

y2010

layoutsMaintain some of the flexibility of processlayouts

Examples:Group technology & manufacturing cellsGrocery stores

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W AREHOUSE L AYOUTS

Warehouse Layout Considerations:Primary decision is where to locateeach department relative to thedockDepartments can be organized tominimize “ld” totalsDe artments of une ual size

require modification of the typicalld calculations to include acalculation of the “ratio of tripsto area needed”The usage of “Crossdocking”modifies the traditional warehouselayouts; more docks, less storagespace, and less order picking

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GROUP TECHNOLOGY (CELL) L AYOUTS

One of the most popular hybrid layouts uses GroupTechnology (GT) and a cellular layoutGT has the advantage of bringing the efficiencies of aproduct layout to a process layout environment

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P ROCESS F LOWS BEFORE THE U SE OF

GT C ELLS

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RETAIL /S ERVICE L AYOUT –

GRID DESIGN

Grocery StoreGrocery Store

MeatBread

M i l k

P r o

d u c e

OfficeOffice CartsCarts CheckCheck--

outout

F r o z

e n F

o o d s

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RETAIL /S ERVICE L AYOUT -F REE -F LOW DESIGN

Trans.Trans.

Apparel StoreApparel Store

DisplayDisplayTableTable

Counter Counter

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Comparison of Basic Layout Patterns

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N EW TRENDS IN M ANUFACTURING

L AYOUTS

Designed for quality and flexibility

Ability to quickly shift to different productmodels or to different production ratesCellular layout within larger process layouts

U-shaped production linesMore open work areas with fewer walls,partitions, or other obstaclesSmaller and more compact factory layoutsLess space provided for storage of inventoriesthroughout the layout