7. Facilities layout7. Facilities layout

DefinitionDefinition

►Waller describes facility layout as Waller describes facility layout as the arrangement of machines, the arrangement of machines,

workstations, storage areas etc to enable workstations, storage areas etc to enable an operation to function efficiently, safely an operation to function efficiently, safely and in a cost-effective mannerand in a cost-effective manner

Layout StrategiesLayout Strategies

► Many cited by material, but one presented Many cited by material, but one presented herehere

► Heizer & Render suggest that in most cases, Heizer & Render suggest that in most cases, layout will strive to accommodate the following layout will strive to accommodate the following criteria:criteria: Higher utilization of space, equipment and peopleHigher utilization of space, equipment and people Improved flow of information, materials or peopleImproved flow of information, materials or people Improved staff morale and safer working conditionsImproved staff morale and safer working conditions Improved customer interactionImproved customer interaction Flexibility, i.e. whatever the layout is now it will Flexibility, i.e. whatever the layout is now it will

need to changeneed to change

Layout & FlowLayout & Flow

►There are direct links between layout There are direct links between layout and the flow of operations with a and the flow of operations with a logical flow of materials/components logical flow of materials/components with value being added at each part of with value being added at each part of the transformation.the transformation.

Types of LayoutsTypes of Layouts

►Fixed positionFixed position►Process-orientatedProcess-orientated►OfficeOffice►RetailRetail►WarehouseWarehouse►Product-orientatedProduct-orientated

Fixed PositionFixed Position

► For large bulky projects such as ships and For large bulky projects such as ships and buildingsbuildings

► The operation remains static and workers The operation remains static and workers and materials come to the site, e.g. and materials come to the site, e.g. chemical plant, new building, shipbuilding, chemical plant, new building, shipbuilding, and highway. and highway.

► Many fixed positions are characterized by Many fixed positions are characterized by lack of space and limitations on resources lack of space and limitations on resources for the workers and their operations. for the workers and their operations.

► Project management is therefore essential Project management is therefore essential to co-ordinate activities e.g. consider the to co-ordinate activities e.g. consider the access, use of resources by the operators. access, use of resources by the operators.

Process OrientedProcess Oriented

► Design places departments with large flows of Design places departments with large flows of material or people together or areas having material or people together or areas having similar processes located in close proximitysimilar processes located in close proximity

► This operation can simultaneously handle a This operation can simultaneously handle a wide range of products or services. wide range of products or services.

► Good for processes which have a low volume, Good for processes which have a low volume, high variety set of customers needs. high variety set of customers needs.

► The advantage of process-orientated layouts is The advantage of process-orientated layouts is the flexibility.the flexibility.

Emergency Room LayoutSurg

ery

RadiologyE.R. beds Pharmacy Billing/exit

E.R.Triage room

E.R. AdmissionsPatient B - erratic pacemaker

Patient A - broken leg

Hallway

OfficeOffice

►Arranged by process or productArranged by process or product Example: Payroll dept. is by Example: Payroll dept. is by

processprocess►Typically, small teams of workers Typically, small teams of workers

will share a work cell and each may will share a work cell and each may either initiate or add value to the either initiate or add value to the work of the others. work of the others.

►Examples: R & D, production, Examples: R & D, production, operations, sales, finance. operations, sales, finance.

OfficeOffice

AccountingAccounting

ManagerManager Brand XBrand X

FinanceFinanceFin. Acct.

RetailRetail

Retail layout is concerned with maximizing Retail layout is concerned with maximizing profitability per square foot of floor space. profitability per square foot of floor space.

Retail outlets attempt to expose customers Retail outlets attempt to expose customers to as many products as possible, e.g. to as many products as possible, e.g. cashier stations are often at the rear or cashier stations are often at the rear or side of stores so we have to pass through side of stores so we have to pass through merchandise before payment. merchandise before payment.

Where products are stocked denotes their Where products are stocked denotes their selling strategy. E.g. immediately beyond selling strategy. E.g. immediately beyond the entrance, at the end of aisles, at eye the entrance, at the end of aisles, at eye height on the shelves. height on the shelves.

OfficeOffice CartsCarts Check-Check-outout

Grocery StoreGrocery StoreMeatBread

Milk

ProduceFrozen Foods

WarehouseWarehouse

► The key to warehousing is to find the The key to warehousing is to find the optimum between storage and layout. Many optimum between storage and layout. Many warehouses are now highly automated and warehouses are now highly automated and characterized by height ceilings, multiple characterized by height ceilings, multiple stacking bins and automated lifts / picking stacking bins and automated lifts / picking equipment. equipment.

► The warehouse manager’s job is to utilize as The warehouse manager’s job is to utilize as much of the ‘cube’ space as possible while much of the ‘cube’ space as possible while minimizing material handling costs and minimizing material handling costs and optimising the flow of goods in & outoptimising the flow of goods in & out

WarehouseWarehouse

ZonesZones

ConveyorConveyorTruckTruck

Order PickerOrder Picker

Product OrientedProduct Oriented

► Facility organized around productFacility organized around product► These layouts are organized to maximize cost-These layouts are organized to maximize cost-

effectiveness on similar goods manufactured on effectiveness on similar goods manufactured on repetitive and continuous production. repetitive and continuous production.

► There are two main types of product layout – There are two main types of product layout – Fabrication builds components which form part of a larger Fabrication builds components which form part of a larger

operation. operation. Assembly places the fabricated parts together to complete Assembly places the fabricated parts together to complete

the operationthe operation► An important element of both fabrication and An important element of both fabrication and

assembly is that each part of the operation must be assembly is that each part of the operation must be balanced with all others otherwise gaps and balanced with all others otherwise gaps and bottlenecks will occur.bottlenecks will occur.

► Management’s goal is to create a smooth flow of Management’s goal is to create a smooth flow of work. work.