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A Note From The Author

Facil ities & Workplace Design

An Illust rated Guide

First EditionEngineering & Management Press

Institute of Industrial Engineers

Norcross Georgia, USA1996

Free Copy Available At www.strategosinc.com

This book was originally published in 1996 and was quite popular. However, Engineering& Management Press terminated publishing operations and the book went out of print.

Existing stocks are exhausted and it is now difficult to find, even on the used market.

I have been writing a second edition with more Lean Manufacturing examples andterminology. However, progress has been painfully slow. Many people have requested

either edition. Accordingly, I am making this special version of the First Editionavailable on a complimentary basis.

This special edition is a scanned copy of the original in PDF format. Some figures did notscan well. In addition, there are original typesetting errors, particularly in the later

chapters. If you find yourself confused, it may be due to a mislabeled or misplaced figure.

I apologize for these lapses in quality. They are one reason why the book is free.

However,the principles remain sound;examples are realistic; the approach is

universal.It applies to Lean Manufacturing and, indeed, any Manufacturing Strategy.

You will also find supplementary material on our website at www.strategosinc.com. A

free preview of the Second Edition Chapter 4 is at www.strategosinc.com/facdes.htm.

I hope this is helpful in your facilities planning work.

Sincerely,

Quarterman LeePresident

Strategos, Inc.Kansas City, Missouri, USA

www.strategosinc.com


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Facilities nd WorkplaceDesignAn lllustratedGuide

byQuartermanLee

withArild EngAmundsenWilliamNelsonHerbertTuttle

ENcrxeenrNc& MatacereNr PnessInstitute f Industrial ngineersNorcross,Georgia, SAhttp:llwww.iieneLorg


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@ 1997 Institute oflndustrial Engineers. All rights reserved.Published by the Institute of Industrial Engineers.Printeil in the United Statesof America.

No part of this book may be reproduced n any form without written permissionfrom the Publisher. The views and conceptspresentedare those of thecontributors. Publication by the Institute of Industrial Engineers doesnot in anyway constituteendorsement r approvalof the book s contents.

No responsibility is assumedby the Publisher for any injury andlordamageto personsor ProPerryas a matter of product's liability' due to negligenceor otherwise,or from any useor operationof any methods,Products,nstructions,or ideascontained n the materialherein.

02 01 00 99 98 97 6 5 4 3 2 r

CATALOGING-IN-PUBLICATION DATALee, Qrarterman.

Facilities and workplace design: an illustrated guide/by Qrarterman Lee;with Arild Eng Amundsen,William Nelson, Herbert Tuttle.

p. cm. -- (Engineers n business eries; )Includesbibliographical eferences nd index.ISBN 0-89806-166-01. Plant lzyout. 2. Plant engineering. 3. Office layout. 4. Workenvironment. I. Amundsen,Arild Eng. II. Nelson,William. III. Tuttle,Herbert. IV . Title. V. Series.TSI78.L44 1996658.2'3--dc20 96-22972

CIPDirector/Engineering& ManagementPress:Eric E. TorreyEditor: Forsyth AlexanderCover by Marty BenoitPrinted by Edwards Brothers nc .

ISBN 0-89806-166-0

Engineering & ManagementPress25 Technology ParkNorcross,GA 30092


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Tableof ContentsPreface .. . . . . . . . . . . . . .Acknowreogr "n t r . . . : :. : . . . . : . . . . . . : .: : . . : . : . : . . . : .: : . . : . . . . . : . . .. . . : . . . . . . : . . .. . . . .i iChapter 1 - Facilit ies in a Changing Environment...............Working facilitiesn modernhistory ...............Faci l i t iesn a changing nvironment.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Approacheso facilit ies lanning .....................The industrialengineer's ole in facilityplanning ............. 2Chapter 2 - The Framework for Facilities Design.............13The levels f spat ial esign.. . . . . . . . . . . . . . . . . . . . . . . . . . . .3The phasing f space esign .......2lThe space lanelements.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3Space lan .. . . . . . . . . . . . . . .7The design roject. . . . . . . . . . . . . . . . . . . . . . .8Chapter 3 - The Macro-Space-Plan ..................9Introducing CosmosProducts .... 32Planning he project ....................2Information cquis i t ionasks.. . . . . . . . . . . . . . . . . . . . . . . .33Identifyingphysicalnfrastructure.....................................0The strategicramework.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2Key manufacturing asksand focusopportunities ............54Identi$'ingoperations trategy...... ..................58Designinghe space lan .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5Cosmos ellandprocess efinition ................9The space lan primitive ............. 8Constraints .. . . . . . . . . . . . . .8


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Designof ExperimentsDesigning macro-space-plans ..... 91,Identifyingkey material andling ssues.........................4Deciding n thebest pace lan.. . . . . . . . . . . . . . . . . . . . 5Evaluating he Cosmos pace lans ...............9

Chapter 4 - Macro-Space-PlanningandWorkCellDesi9n................ ...109Workcells.......... ...111Interpreting erminology nd conventions.................... 72The micro-level asks ................14Selectinghe products ......... .......The DiamondEquipmentCompany.. . . . . . . . . . . . . . . . . . . . . . . . . . . . .19Gator Steel oundry . . . . . . . . . . . . . . . . .725Designingheprocess .. . . . . . . . . . . . . . .128Planning el l nfrastructure.. . . . . . . . . . . . . . . . . . . . . . . . .136Externalproduction ontrol .......138Designing space lan.. . . . . . . . . . . . . . I49Selectinghe bestplan ........... ....157

Chapter5 - WorkstationDesign:the Sub-Micro-Space-Plan t67Allocationof functions ...............162Motion economy .... 165Ergonomics .. . . . . . . . . . . 66The workstat ion pace Ian.. . . . . . . . . . . . . . . . . . . . . . . . .74

Chapter 6 - Site Planning and Location............................83Site ocationand acquisition ............. .......... 84Siteplanning . . . . . . . . . . . . . . . . . . . . . . . . . . . .88Chapter - OfficeSpacePlanning ...................203Approaches o officeplanning .. 204The office ayout eam .......... .... 207The layout project .. 207ChapterS -A Final Note .. . . . . . . . . . . . . . . . .215Gfossary . . . . . . . . . . .277Bibl iography.... . . . . . . . . . . . . . . . . . . . . .227fndex . . . . . . . . . . . . . . .225About he authors .......,.,.,.,.,.231..232


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PrefaceModern factory ayoutbeganmostnotablyat Highland Park,Michigan.There,Henry Ford and CharlesSorensenirst put large-scalelow lineproduction nto place.Layout, the arrangement f equipmentwithinthe building space,was he most striking featureof Ford production.The layout of Ford factorieswasso noticeable, t disguised he moreintangibleelements f Ford andSorensen'sighly ntegratedandwell-thought-outmanufacturing ystem. s aresult,many actorymanagers,businessexecutives, nd engineersstill try to replicate eady Fordlayouts.These mitationsoftenare ll-suited o their business urposes.Evenwhen managers o not copyFord ayouts,heycontinue o believethat layoul is the heart of efficientproduction.And so it is, but only as the culmination of a rational designprocess: processhat movesrom global ocation o workstations, rompolicy to operations. t is a processhat includes he entire rangeoftangibleand ntangibleelements. he result s a design hat integratesproducts,service, eople, nformation, and technology.Our facilitiesplanningapproach uildson thepioneeringworkofRichardMuther andKnut Haganas, othofwhom deleloped ystematiclayoutplanning(SLP) and systematic andlinganalysisSHA). Theseconcepts emainvalidafteralmost hirty-fiveyears.Our approach sescontemporary anguageand examples.Data acquisition s stressed.Perhapsmost importantly,we integratemanufacturingstrategyandmanufacturingocus, onceptsirstput forth byWickham Skinnerandfirst recognized sconnected y William Wrennall.This is more han a manufacturing ook, however.The conceptsoriginally developed or industry now apply to services.Products and


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Facilit ies lanningservices eld ogether n almosteveryviable nterprisen today'sworld.The conceptof "businessprocess" overs ll productivehumanactivity.Government, education, the professions,and industry are simplyvariationson a ew central deas. herefore, he planningofa governmentfacility or an idea fzctory follows the sameprinciples and approachasthe planning of an automotive factory.The planning of a hospitalfollows the samecourseas the planning of a textile mill.A facility projectoften s the catalystor newstrategies. nder itsguise,managementmayopena strategic ebatehatbrings ogether hemany disparateunctionsandelements f the enterprise.t canprovidethe structureor analysis nddiscussion.he project hen ranslatesheresultsnto steeland concrete.n this way, acilityplanningbecomeslarge-scaleeengineering roject rather than an exercisen templateshuffling.Our purpose n writing this book is to help practicing ndustrialengineers ew to facility planning.We intend it to be practicalwithmanyexamples,orms,diagrams, ndvisualaids.Visualapproachesreespeciallymportant for facilityplanning.The humanmind is usuallymore creativen avisualmode. llustrations,graphs,andchartseffectivelyrepresent omplexspatialarrangementshat havemany evelsof detail.Also, data s more significant or most of uswhen we can see t.

A plant ayout s the productofthousandsofdecisions,both pastandpresent.t is he physicalmanifestation fthe firm'smanufacturingstrategy, hetherde actoor otherwise. hesedecisions over he entirerangeof manufacturing-finance, personnel, rocess' roductdesign,and many,many other topics.We cannotpossiblydo usticeto all ofthese ssues.We hope,however, o alert ndustrialengineerso theirexistence nd mportance.We hopeto point the way to more rationaland strategically riented acility design.


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Acknowledgments[e t{e this_opportuniry o thank otherswho helpedwith this book.Margie andcurtJennings producedmuchof the aitwork. sandraLeehelpedwith research, ata entry and proofing. Maura Reeves,Ellensnodgrass,Eric Torrey, Forslth Alex"nd.r, anJ thestaffat the Instituteof Industrial Engineershavesupportedus and helpedmakethis finalproduct readable.


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Chapter1Facilitiesn a

ChangingEnvironment"The dogmasof our quiet past are nadequateo thestormypresent. s oursituation s new,we must hinkanew.tt - Abraham Lincoln

Working facilitiesare he land, buildings, and equipment that providethe physical capability to add value. This book is about operationalfacilities used or a wide rangeof business,government, nstitutional,and charitableactivities. It applies o offices, factories,and fast-foodrestaurants.t applies o any acilitythat houses alue-addingoperations.For convenience,ermssuch as"businessfacility" or"factory" areused,although the changing nature of work has blured many of thesedistinctions. The principles herein apply to a wide rangeof situationsthe industrialengineer ommonlyencounters.Facilitiesareboth durableand expensive,asting for decades ndsometimeseven spanningcenturies.A firm's facilities are among themost expensive f itspossessions.hey representhe argestassettemon most balance heets.The durability of facilities, their cost, and their primary role inadding value make them an important strategicelement.Just asgunpowder made the fortressesof medieval Europe indefensible,changes n technology, culture, and politics canquickly render today'sindustrial facilities obsolete.Conversely, facilities that adapt to thenatureof their competitiveenvironment canbe a continuing sourceofadvantage or their owners.


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Facilit ies lanning

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Facilit iesn A ChangingEnvironmentFigure 1.1 depicts the interaction of facilities, organization,products,andprocesses.he understanding, esign,anddevelopmentof these ariedelementsnto a unctioningbusinessystem re eferredto in variouserms.Among these re:manufacfuring trategy, o{poratereengineering, nd business rchitecture.The importanceof facilitiesdoesnot lie solely n their costanddurability. They are also the most tangible elementof the businesssystem, he element o which everyonen everyareaof the business anrelate.They canbe a central,commonreferenceor the restrucfuring/reengineering/strategicebate.

Working facilities in modern historyIndustrial facilitiesshops that served he needsof individual artisanswere the industrialfacilitiesof the Middle Ages.Theseweresmalland centered roundasingleskill suchasarmoryor saddlemaking. hey had simpleandcleararrangements.Duringthe IndustrialRevolution,powersources nd he movementof raw materialsdeterminedfaciliry design.Textile mills requiredstreamsor waterpower,andcumbersome haftsandbeltsdominatedtheir arrangement. ady ron andsteelmillswere ocatedon waterways,railroads,or mining siteslcoal, ron ore,and imestone ransportationdominated heir design.Early large-scale roduction shopssuchas he pickering pianoFactory @g, 1.2) developedn the nineteenthcentury.These large

Figure 1.2 - The Pickering Piono Factory, Boston, Moss, Circo | 870


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Facilit ies lanningbuildings urned out high numbersof manufacrured roducts.At onetime, the Pickering factory urned out 400 pianoseachday.In the earlytwentieth entury, he progression fmass-productiontechnology required facilities that optimized material flow. Themicro-division of labor made skill less important than efficientmovementof product.In the secondhalf of this century, nformation and knowledgebegan o dominate ndustrialproduction.The educationand skills oftheworKorce n industrializedparts fthe world increased. s aresult,industrial facilitiesmust now optimize the coordination of people,processes,ndproducts.Government facilitiesIn the Middle Ages, the most important government acilitiesweretown fortresses. heir primary mission was defenseagainst rovingbandsand neighboring iry-states. he fortified town of Rocroi,on thenorthernplainof France, s an example.Still argelyintact, t is a astingtestimony o the durability,cost,and obsolescencef these ortresses.With the adventofgunpowder,battle echnoloryadvanced. ewtacticsevolvedand armiesbecamemore disciplined.These massiveworks drained the treasuries f many dukes and kings and becameindefensibleand obsolete.By the time of the Renaissance,ortresseshad evolved nto palaces. heir primary missionwas comfort for theinhabitants, as well as the projection of power and prestige.Thebuildersofmany governmentalbuildingswanted o intimidate potentialenemies, oth foreign and domestic.Governments no longer can survive only through warfare or thethreat of warfare.Their constituentsdemandaddedvalue n a widerange of human activity. Accordingly, many governmental facilitiesnow arebeing designedor efficient operations ather han projectionof power.The United StatesPostalService rovidesan excellentexample.Post officesbuilt in the early part of this century were architecturallandmarks.Their mission was to display the power, stability, andprestige f the federalgovernment.Postal acilitiesbuilt todayareneartransportation enters nd optimizemail flow. Their primarymissionis the efficient distribution of mail.Knowl e dge-based fa ci tiesFacilities n which knowledge s the primary meansof work havealways eenmorevaried han other types.The medievalmonastery,for example)was a primary depositoryof knowledge n its time.


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Facilitiesn A ChangingEnvironmentThe church used this knowledge to vie with governments forpower and influence.During the Renaissancend Industrial Revolution,knowledgebecamean important source or commercialcompetitiveadvantage.Individual professionalsuchasdoctors, awyers,and financierswereprimary keepers f knowledge.Other knowledge esided n libraries.Factoriesmbeddedt in their facilitiesandprocesses.eterF. Druckerwas among he first to rccognize he increasing alueofwhat he termed"knowledgework." He put forth these deas n his landmarkwork, ThePracticeofManagement,n 1955. Knowledgework dependsprimarilyon brainpower rather than manual skills or strength. In today'smanufacturingenvironment,most work requiring pure strength ofmusclehas ong beenautomatedaway.Much of the work that oncerequired manual dexterity has been taken over by computerizedequipmentsuchasnumerically ontrolledmachine oolsor coordinatemeasuringmachines. herefore, nowledge nd he nformationbehindit now havebecomeprimarysources fvalue n their own right. Manyorganizationsexist for the solepurposeof processing nformation anddistributing t. Their facilitiesshouldreflectandenhance his role.Facilitiesn a changing nvironmentFacilitydesigners avealwaysworkedwith materials, roducts,processes,information,andpeople. heirtaskis to arrangeworkprocessesn andand n buildings or optimum performance. his hasnot changedandwill not change,but rapid shifts in technology, politics, and culturerequire a more fundamentalunderstandingand analysis rom thefacility designer. t no longer is sufficient(i f it everwas) to copy anassemblyine ust becauset wassuccessfulomewhere lse.In additionto the ong-term trend toward ncreased nowledge-basedwork, other rendsofa stretigicnatureareaffectingbusiness.hefacility plannershould catalyze r leadan organization'sadaptationtoever-changing urroundings.The environmental imperativeHarmony with the environment s an increasinglymportant businessconcernthat will not go away.Population growth is a principal factordictating this concern; he spreadof the suburbs hrough increasedmobility is another. Organizafions hat surviveandprosper n comingyearswill anticipateand eadwith their environmentalpolicies.Location requirement changesInformation is the raw material of the knowledge worker. With the


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6 Facilities lanningconfluence of information processingand communication, theinformation superhighway as opened.The ability to distributevastamountsof information makes t less mportant for facilities o locatenear the sourceof information. This is similar to the distribution ofmaterials n an earlierday.As material ransportationbecamemoreefficient.manufacturers ould ocate arther from their sources.Knowledge-basedacilitiesnow locatewhere heir workerswishto live-often far from traditional industry. Industries that requirespecialized nowledgeoftenconvergen smallareas:manufacturers foverhead ranes ongregaten Milwaukee,Wisconsin;Wichita, Kansas,hasa high concentrationofvinyl printers for decorativedecals;and"SiliconValley" n California s the home for many electronics lants.These changesaffectglobal facilitiesplanning decisions uch as siteselectionandplanning.The changing nature of workAs products becomemore sophisticated, heir knowledge componentbecomesmore important. It is no longer enough to manufacture acommodity product.Competitiondemands ariety, requentchange,anddistribution systemshat deliverphysicalproduct,service, ndknowledge.The natureofworkhas changed. oday, ndividuals eldomworkalone. Knowledge teams are necessaryn product design, processdesign, inance, ndeven aw.Teams,by their nature, equireproximiry.Facilities can inhibit or promote teamwork.They can smooth theoperation of complexand etherealknowledgeprocessesr they canisolate eopleandprevent ommunication.The socio-technical systemSocio-technical ystems ave alwaysexisted,althoughfew managersrecognized he phenomenon ntil recently.Management houghtwascaughtn theNewtonianconcepthat organizations ere ike machines,giant clockrvork mechanisms hat ticked away in a predictable,mechanicalmanner.EricTrist ofthe Tavistock nstitutedevelopedhesocio-technical dea in the early 1950s. Teamwork, total qualitymanagementTQ{), and other echniquesor employeenvolvementhave heir roots n the conceptofthe socio-technical ystem fiS.1.3).The socialsystem ncludespeopleand their habitual attitudes,values,behavioral styles,and relationships. t is the formal powerstrucfure depicted on otganization charts and the informal structurederived rom knowledgeandpersonal nfluence.The technicalsystemincludes machinery, processes, rocedures,and their physicalarrangement layout).


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Facilit iesn A ChangingEnvironment

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Facilities lanningTo be effective,the social and technical systemsmust integrate

and assistone another.Facilitiesplanning playsa major role in thisintegration.Businesses herepeoplehave solatedworkstations,argeinventory buffers, and few sequential processeshave difficultyimplementing teamwork. A manufacturing work cell that requiresextensiveeamworkwill not produce n an environmentof suspicion,individual rewards,and command-control.N on-h erarchi ca orga niz ation sHierarchical organizationswith functional divisions of work evolvedfrom the Roman Legions, he Catholic Church, andmedievalguilds.Such organizations are ill-suited for today's work, where the workproduct requires nput from many functional specialties nd wherecoordinationbetweenspecialtiess a primaryrequirement'While TqM emphasizescross-functional teamwork, morefundamental reengineeringemphasizeselimination of functionalstructures in the organization This puts special demands on thefacilitiesplanner.Non-hierarchicalorganizationsmust constantly hangeto accommodate hangesn business olumeand product ife cycles.In these organizations here is less division betweentraditionalmanagementand labor functions.Many engineersand otherswhotraditionally worked in office areasnow have their desks n themanufacturing plant. Many of today's high-tech manufacturingoperationsdemand more cleanliness nd order than the traditionaloffice. Therefore, facilitiesmust be more open with few walls andbarriers.Theyrequireconstant earrangemento accommodate hangingwork cells and changing team structures.Global business restructurtng reengineering, and facilitiesThanks in part to the changingnatureofwork, globaleconomics, ndtechnologicaladvances,arge-scaleestructurings occurring n manyorganizatrons. s a result,many acilities hat areno onger contributingto companymissionswill close.Other facilitieswill be built. Manymore will haveproducts ealignedandprocesseseengineered.Facilitiesplanning s often a arge-scaleeengineering roject. tis an opportunity to rethink processesswell assuPPorting lements.During a acilitiesplanningproject,he designersanhelpmanagementclarifr missionsand rationalizeproduct ines.

Layout is an integral part of reengineering and restructuring.Meaningful restructuring equires orrespondinghangesn the ayout.Conversely,a ayout redesigncanbe he catalyst or restructuring.Many symptomsofinappropriatebusiness rchitectureappearas ayout


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Facilit iesn A ChangingEnvironmentor materialhandling ssues. actoryayoutcandemonstratehe need orreengineeringo an organization eluctant o tear tselfapartandrebuild.Approaches to facility planningThose who plan and build facilities ake many approaches. ome arehighly organized;othersaread hoc. Examplesofapproachesfig.7.4) areexperiential,masterbuilding, cloning,bottom-up,systematic, ndstrategic.ExperientialIn this approach, eopleplan their facilitiesbasedon pastexperience,common sense, nd instinct. In any organization,he experience fseniormemberss valuable or information on what hasworked andwhat has not worked in the past. Otganizations,aswell as ndividuals,need his experienceo function.A faciliry designed rom experienceaps nto the rich knowledgeof thosewho havegone beforel however,experience-basedacilitiesplanninghas imitations.Experience, ydefinition, sbased n the past,and new technologyandorganization tructures an make t obsolete.In addition,planningby experiencesusuallyunorganized.t frequentlyis he resultof the memories fonlyone or a ewindividuals,and othersmayhavehadadditionalor contradictory xperiences.uchhindrances,aswell as orgotten details,haunt theseefforts.In planning a major facility, experience annotbe ignored butmust be gathered rom the widest field of experience ossibleandappliedwith judgment and discretion.Master buildingMaster building focuseson consrructionand buildings. The finalproduct soften mpressive ndsometimes work of art, but it may notfit theoperational eeds fthe enterprise.Masterbuilderscanbe oundat many levels in both large and small organizations: a companypresident building a new headquartersor a department managerfocusing on technological mpressivenessather than actual needs.Using abuildingto displayfinancial trength, echnological rowess, rartistic accomplishments a legitimate orm of advertising.However,this purposeshouldbe balancedwith other business eeds.CloningCloning simply duplicates an existing facllity or portion of it. Thisapproachs ast. fthe existingfaciliryis rovenand fconditionsare hesame,this type works well. McDonald's uses cloning to build itshamburger factories"throughout he world. For most acilities,however,


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I O Facilities lanning

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cloninghas imited usebecauseites, rocesses,ndpeoplearedifferent.Cloning shouldbe appliedonly when appropriate.Bottom upThe bottom-up approachstartswith the details.How many desks?How many and which machines?How many people?From them,


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Facilit iesn A ChangingEnvironmentdepartmentalunits and, eventually, he overall acility plan are built. Itis a satisfactory pproachf the derailsand how theywill be assembledinto a argersystem reknown, fthere is time, and fthe detailswill notchange.such conditionsare often met for smaller acilities n stableenvironments.

Bottom-up planning does not lend itself to new operationsstrategies. ecause ll detailshave o be workedout before inal designand construction, onstructionead imesareoften too long. On largeprojects, he detailsbecomeso overwhelming t is often difficult tomaintain schedules.SystematicSystematicayoutplanning (SLP) usesprocedures, onventions,andphases. t helps ayout plannersknow what to do at eachstep of aproject. This provides ayout planning with systemand strucrure,saving ime and effort. However, many ayoutscreatedwith systematicmethodologyare simply better versionsof what went before.Theprimaryconcerns howto arrange locksof space. more undamentalissue s what blocksof space houldbe arranged.StrategicThe strategic pproachstop-down. t sets olicy irst andaranges hetechnology, organization,and facilities to support it. Starting withbusiness ndcorporate trateg'yuchasglobalsite ocation, t moves ooperations trate yand inisheswith detailsike ocarions f equipmentand furniture.A strategic pproachsdirectand haspurpose. t allowseveryoneinvolved in the project to follow a common direction. Used alone,however,strategicdirection is insufficient. It does not tell facilirydesigners nd thosewho use he facilitieswhat to do.FacPIanThe FacPlanmethodcombines he bestof variousapproaches.t hassystemand structureand addsstrategicdimension. t taps nto theexperience nd knowledgeof thosewho use he facilities. t canworkfrom detail to generaland viceversawhen appropriate.FacPlanusesa hierarchyof detail evels. t focuses n strategicissuesat the appropriate ime and minutiae at the appropriate ime,usingamodelprojectplan oguideandsrrucrure ach roject.Proceduralflow chartsguide heplanner hrougheach askandassistwithdecisionmaking.Charts, orms,anddesignaidscontribute o the organizationof information.

1 1


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1 2 Faci l i t ies lanningThe ndustrial nginee/s ole n facilityplanningThe central,strategic ole offacilitiesplacesheir designersn a uniqueposition. Industrial engineers an assumenarrow roles as technicalequipmentarrangers r they can take broader oles as educators ndcatalysts or or gan\zationalstrate ic debate.The latter requiresmore han skills n layoutdesignand echnicalprocedure.Strategicperspective, ell-developed nterpersonal kills,patience,and understanding re alsonecessary.This work providesnsight nto the basic echnicalools ndustrialengineers eed or facilitiesplanning.The broaderskills will reguireexperie ce, nsight, maturity, and education.


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Chapter2The Frameworkor

Facilities esignThe completedesignof a facility requireswork from many disciplineswithin an organization:sales and marketing, purchasing, humanresource, accounting, nd more.More visible s he work of architects,structuralengineers, rocess ngineers, nd management.Architectsand structuralengineers heck soil conditions, building codes,andinfrastructure, etailing he structure, ppearance,nd nternalsof thebuildingandsite.Processngineers ayplan heproductionprocedures.To guide and coordinateall theseefforts,management etsstrategicpolicies.Industrial engineers lsoplay key roles.They often manage heoverallprojectand report to top management, nd they may performsomeor all of the above asks.Most importantly, hey plan the useofspace. hesespace lans,atvarious etail evels, ecome hecenterpiecefor coordinating he entireproject.The levels of spatial designLayout, or space lanning, s the central ocusof facilitiesdesignanddominates he thoughtsof mostmanagers. ut factoryor office ayoutis only one detail level. Ideally, a facility design proceeds rom thegeneral o the particular-from global site location to workstation.Largerstrategicssues redecided irst.It is useful o think of space lanning in five levelsas shown infigure 2.1.Figures2.2 through 2.6 show qpical ourputsat each evel.These range from the global maps of site location to engineeringdrawingsof tools and workstations.


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1 4 Facilities lanning

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The Framework orFacilit ies esign 1 5Level I -Global site locationDuring global ocation, he site ocation evel, he firm decideswhereto locate acilitiesand determines heir missions.A facility missionstatement is a concisesummary of products, processes, nd keymanufacfuring tasks.A facility rarely canperform more than two orthreekey manufacturingaskswell. The missionstatementsthereforean important guide for facilitiesplannersand othersas hey considervariousdesign rade-offs.Otheroutputsat his evelusuallyncludeareport o management.For multiple sites,mapsshowingsite ocationsand customeiactivityarecommon.Figure2.2 illustrates.The costof space lanning at Level 1 is small.Global locationusually nvolvesa ew top executives ndone or fwo industrial engineersor consultants.Each level below requiresmore and more people,analysis, nd detailedengineering.Yet, the corporatebudgetpro..r,frequentlydemandshat all significantplanningbe delayed rriil uft.,a decisions made oproceedwith siteacquisition. hose evelswith the

ProposedSouth American PlantSite SpecificationContents1 O Mission2.0 General

Requirements3.0 Land Features4.O Building5.O Transponation6.0 l.ltilities7,0 Labor8.O Communlty9. 0 Suppl leG1O.O Environmental

O ManufacturingI Distribution-9u !l! Proposed

MissionStatementMidwest Plant& WarehouseMissionStatementBrusselsWarehouse

MissionStatementShenandoahPlant

Th e ShenandoahFaci l i tywi l lmanufacture the Eliteproduct l ine for highvolume customers nthe Eastern UnitedStates. lt will strive tobe the primarysuppl ier for ou rindustry for highqual i ty OEM material .

Figure 2.2 - Level | - Site Location


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1 6 Facilit ies lanningmost strategic mpact and the lowestplanning cost receive he leastattention.Consequently,he decisions ith the most strategicmpactare sometimesmade with the least reliableknowledge.Overall businessstrategy s most important at the global level.Determining the number and ocationof sites equires ar more thansimply searching or the lowest labor rates and largest ax breaks.Available labor skiils and attitudes toward work, supporting servicessuchas ool productionandmaterial upply, ndpolitics,andsometimesgeopolitics,must alsobe majorconsiderations.or example,f a plantis located n the wrong countr/r it may becomea geopoliticalpawn.Technologicalprowesscould then shift to other regions. f there ispolitical instability locally, it can destroy a firm's ability to produce.Important raw materialsmight bedepleted r replaced. uchproblemsare not easy o correct.Appropriate planningresults n facilitiesoptimizedfor the marketsand located near the most important resources-resources hat,increasingly, nvolve knowledge,skills, and infrastructure rather thanraw materials.Level 2-Supra-space planAt the supra-space lan level, site planning takesplace.This includesnumber,size,and ocationofbuildings,aswell as nfrastructure uchasroads, water, gas, and rail. This plan should look ahead to plantexpansions nd eventual itesaturation.The documents from a site planning project almost alwaysinclude a site drawing (fig. 2.3). Frequently, they involve a seriesofdrawings showing past,present,and future configurations(there maybe severaloptions for these).A major site study alsomight includenarrativeson site history and descriptionsof the considerations ndrationale or the siteplans.At this level, planning still has long-term and far-reachingconsequences.well-designed nfrastructuresupports uture expansionor conversion o new products.Proper ocation and building designprovide or logicalexpansionn suitable ncrements.Level 3-Macro-space planAt the macro-spaceplan level, a macro-layout (fig. 2.4) plans eachbuilding, structure, r othersub-unitof the site.Usually his s he mostimportant level of planning, for it sets he focus,or basicorganization,of the factory.The designers efineand ocateoperatingdepartmentsand determine overallmaterial flow.Macro-space landecisionsmay esult n new-product lexibility,


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The FrameworkFor FacilitiesDesign 1 7

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Figure2.? - Level2, Site PlonningMaster Site Plon, Shenondooh Plont, Stonewatl Corp.

lowercosts, igh quality,or a lexible abor.Fundamentalmacro-spaceplandecisions sually reeasiero correct hansite-level ecisions. till,a poorlyplanned acilitycanbring high handlingcosts, onfusion,andinflexibility. Theseproblems, n rurn, can causedifficulty in launchingnew products, erratic deliveries,and too much inventory. Correctingsuch problems may require a complete rearrangementwith majorinvestmentsn process quipmentand infrastructure.Level 4-Micro-space planThe locationof specificequipmentand furniture s determined n themicro-spaceplan. The emphasisshifts from gross material flow topersonalspaceand communication.Socio-technicalconsiderationsdominate. fproduction teamsarean mportant elementofthe operationsstratery, the work at this level may inhibit or discourage eamwork.Figure2.5 showsa space lan for an operatingdepartment.


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1 8 Facilities lanning

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ElectronEngineer ing orp.Macro-Layout pt ionAMacro-LayoutptionBMacro-Layout ptionC

Figure 2.4 - Level 3, Mocro LoyoutProject Report Mocro-Loyout ond Moteriol Hondling

Level 5-Sub-micro-space planIndividual workstations and workers are he concernof the fifth level.Here, workstationsaredesigned or efficiency,effectiveness, ndsafety.Ideally, the industrial engineerplansfor the correct tools in the mostappropriate places,using fixtures that properly hold the work piece.Materials are introduced at optimal locations and large items areprovidedwith appropriatematerial handling aids.Some ypical outputsare shown in figure 2.6.


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TheFrameworkorFacilities esign 1 9

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20 Facilit ies lanning

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The Framework orFacilit ies esign 2' lLevels 4 and 5 are the more detailed evelsof spaceplanning;therefore,equipmentand ssues remore ocalized.When.h"rrg., "r"necessary,here susuallylessanger fmajorproduction nterruptions.

The phasing of space designIdeally, designprogressesrom the global level to the sub-micro levelin distinct, sequential hases. t the end of eachphase, he design s"frozen" by consensus. his seftles he more global issues irsiandallowssmoothprogresswithout continuallyrevisitingunresolvedssues.It alsopreventsdetailsfrom overwhelming the prolect. Figure 2.7(A)illustrateshis ogicalprogression ndshows he strategicmpactofthework in eachphase.Strategicmpact affects he ong-term ab1fityof thefirm to competeandprofit.. Industrial engineersarelyhave he opportunityto design afacilityin accordance ith the normalphasingshown n figure2.7(A).Thereare severaleasonsor this. Sitesandbuildings hat haveevolvedovermanyyears utlive echnologies nd heir originalpurpose,and hereforemust be rearranged. nother reasonmaybe management'selief hatthe existingspace lan is simplynot optimal. In both cases, lanning

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2 2 Facilit ies lanningbeginsat the macro-spacelan evel.Figure2.7(B) llustrates his.Thephasingdemonstratedn figure2.7(B) alsooccurswhen managementmakesglobalandsite-level ecisions ithout the benefitof adviceandcounsel rom their facilitiesplanner(s).The size and organizationstructureof cells n a macro-space lanmaybe ndeterminablewhen processesnd strategies reuntried.Thisoftenhappenswhenfirms makea transition rom functional o cellularmanufacruring. ilot cellsmust henbe developedo prove he conceptor technology.Figure 2.7(C) reflects his. A cell or micro-space lan(Level4) then becomeshe first phase.Upon completionof th is pilot,peoplecanagreeon the generalapproach. hen the designer an shiftback to Level 3 and preparea macro-space lan. The details ofremainingcellsare defined n their optimal sequence.

The phasingdemonstratedn figure 2.7(D) is commonfor largeoffice layout projects. First, the details of workstation layout areestablished. his may come rom standardizing pace nd equipmentbased n eachperson's osition n a hierarchy.Secretaries,or example,may get a 175-square-footworkstationwith filing spaceand wordprocessing quipment,while a Grade engineer etsa11O-square-footcubicle and a supervisor,a 15O-square-foot ubicle. From theorganizationchartsandstaffing orecasts,he spaceor eachdepartmentandthe arrangement etweendepartments an hen be developed. tthis point, the projectmovesupward n detail to the globalor' morecommonly,macro- evel.Separatinghe work into phases nd evelss the idealapproach.Nevertheless,heremaybe someoverlap.For example,he space lanof a particularwork cell maynot fit the boundaries reviouslydecidedin the macro phase.This may then require minor changes o thepreviouslydesigned ndagreed pon macro-spacelan.For theseandother reasons, hasingshouldbe flexible.Proper phasingshouldbe consideredn the earliest tages f theproject, perhapsafter the initial discussions nd certainlybeforeanysignificantwork effort begins.Here are someguidelines:' work from the most general o the mostspecificevel(highestto lowest)unless pecial onditionsdictateotherwise;' clearlycommunicate he phasingplan to all participants;' resist he temptation o jump aheadbeforea particularphaseis complete;

' obtainagreement n theplanfor eachphase eforemovingonto the next phase;and' rccognize hat there may be someoverlapbetweenphases.


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The FrameworkForFacilitiesDesign 23ThespaceplanelementsEvery spaceplan at each evelhas our fundamentarelementsand twoderivedelements.The fundamentalelementsare:spacelanning unitsqPys): ffiniyies, spa-ce,ndconstraints.When developinga spaci plan,the desgners i rstdefine and denti$' SPUs.Theyth.r, .rrJrr"t. "ffi nities.using the affinities, hey oin SPUs o form oneor mo c afi n y diagrams.The affiniry,or configuration,diagrams he first ofthe derivei eleirerrts.Space dded o the configurationdiagramproduces spacelanprimitire,the second derived element. constraints applied io tit. spaceplanprimitive produce he space lan. Figure2.8 shows his progression.

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Figure2.8 - Elementsof o Spoceplan


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2 4 Faci l i t ies lanningThe conceptof fundamentaland derivedelementss valid at al llevels.However, t ismostusefulanddirectat hemacro-andsite evels.The chapters hat follow explore ts application.

Spaceplanning unitsSPUsare he entitiesarranged y space lan designers. t the macro-level, hey are eferred o ascells.The systematic ayout planning ISLP]system sed he termacti'uity rea.)Acell mightbe aworkdepartment'a srorage pace, building feature,or a fixed tem. Eachcell nitially isrepreseted by a symboland dentifier.Nlost of thesesymbolsare aken rom ANSI Y15.3M-1979,theAmerican National Standards nstitute standard or process harts,which show the tlpe of activity that acts on a product. For spaceplanning, he symbol hat best epresentshe space'sominantactivityir rrsed. igrrt.2.8 showshe symbols,heir meanings, ndcolorcodes'The standard ymbolsepresent peration, ransport, nspection,delay, and storage.For spaceplanning, t'"voadditional symbols-handling and product cells-are added. The handling symboldesignatesareasusedfor repackaging, ransfers,or other elementsthat are partly transport and partly operation. The product celldesignates paceusedfor multiple activitieson a singleproduct orsmallgroup of products.The definition of SPUs s one of the moststrategic asks n facility planning. This definition decides he basicorgantzationof the factory.AffinitiesAffinities represet various actors hat demandclosenessetweenanytwo cells n a spaceplan. For example,communicationor personalinteractionbetweenworkersmight giverise o anaffinity. Affinities areratedusing a six-levelscale,with numericalvalues anging from +4 to-1. The scalehas our positive evels hat mean sPUs shouldbe close.Suchhigh-value affinitiesmayresult rom frequentmaterialmovementbetweenhe cells.Negative atingsmean hat the SPUsshouldbeapart.There also s a neutral ating,0.A vowel scale,A-E-I-O-U-X, may also be used for ratingaffinities;this scalewas irst popularizedby RichardMuther. Here, "A"represents he highestaffinity rating, "IJ" represents neutral affinity,"nd "X" i, " rregative ffinity. This scale asa mnemonicadvantage- hevowelshavecorrespondingword associations s llustrated n ft gute2.9.Chapter3 discusseshe methods or evaluatingaffinities.Figure 2.9 shows he affinity conventionsdevelopedby buildingon the original SLP system.The multi-line representationworks well


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The FrameworkFor FacilitiesDesign 25

Descriptlon VowelRating ScalarRating ManualGraphic CADGraphic Color

Absolute A 4 2 , RedExceptional E 3 / / Yellovlmportant I 2 / / GreenOrdinary o 1 BlueUnimportantU 0 (None)(None)(None)Apart x N/A f aa Black

Figure2.9 - Affinity Conyentions

for manual graphics.On many CAD systemsand other computergraphicssoftware, t is easier o usevarying ine widths, gray scales, ndcolor. When color is available, t dramatically llustrates the nature ofthe affinity network.Figure 2.10 shows he typical range of affinity distributions formacro-and micro-layouts.Affinity diagromSPUs combine with affinities to form an affinity diagram-the firstof the derived elements. This diagram is an idealized spatialarrangement hat eventuallybecomesa spaceplan. In the diagram,symbols epresentSPUs and ines representaffinities between hem.A single ine is the lowest value affinity and a four-part line is thehighest.Squiggly ines epresent egative ffinities.Theseconventionsare llustrated n figure 2.9.Using an iterativeprocess, he designermanipulates he diagramto create an optimal or near-optimal arrangement.A near-optimalarrangementhasvery short high valueaffinities at the expense flower


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26 Facilit ies lanningvalue affinities. t minimizes he crossing f affinity linesFigure 2.11 illustrates he iterative mprovementof an affinitydiagram. t is interesting hat many computerizedplanning systemsemphasizehis specific rocess hen, n fact, t is the partofthe layoutprocesso which computersare eastsuited.SpaceEach SPU hasa unique space equirement.Some SPUsmay requireonlv a few square eet, while othersmay require ensor hundredsofthousands f square eet.The natureofspaceand he calculationsequiredchangeswith eachpianning evel.At the higher evels, paces"elastic,"and he calculationsmaynot need o be asaccurate. t the ower evels, pace anbemorerigidbut also essdefinite. For example,a particularmachineor desk equiresacertainamountofspace,and he designer annotmake t fit in less pace.In other instances,a pieceof equipmentmay require a certain type ofspace ecauset has a peculiarshape, uchas a U. But, under certainconditions, other items may also it in that U shape.

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The FrameworkFor FacilitiesDesign 27Thespaceplon primitiveWhen spacesadded o the affinitydiagram, t distorts he diagram ntothe space lan primitive. It is an dealized epresentation nddoesnotincludedesignconstraints.ConstraintsDesignconstraints re hoseconditions hat limit an idealspace lan.Such constraintsmight be building size and shape,columns,floorloading,utility configurations, xternal eatures, nd manyothers.Space planThe fusionof a space lan primitive and constraints roducesa spaceplan.Several iablespace lansshouldemerge.A setof cells,affiniiies,and constraints may give rise to severalequally valid configurationdiagrams ndprimitives.Eachoftheseprimitivesmay esult n multiplemacro-space lans. The nature of the designproblem precludesanoptimal space lan, except n the simplestsituations.The designer's xperiences a key factor, or it helpshim or herdecidewhich configurations ave he mostpotential. t helpsscalehemyriadof possible pace lansdown to a reasonable umber.Figure2.11 llustrateshecomplete rogressionrom fundamental

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Figure2.1 - Optimizing o Configurotion Diogrom


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2 8 Facilit ies lanningelementsof cells,space, ffinities,and constraintso the macro-spaceplan.Theseelements ndthe progression revalid for anysize acilityand at any level.

The design projectThe elements f facility space lansaresimple;executionof the tasksrequired o develop hem is not. Rarelydo the tasksneatlycorrespondto the developmentas describedabove.At each evel of design, heapproachchanges o accommodatehe amount of detail, availableinformation, and the dominant ssues.At each evel, an approach hat fits a wide range of projectsandsiruationscanbe developed. hese are calledmodel rojec*.With minorvariations, he model project for a macro-space lan, for example,applies o almostanymacro-space lan regardless f size,complexity,or industry. Similarly, the model projects for cell design and siteplanningapply o almostany cell designor site-planningproject.Thescope, esources, ethods, ormality,and ime required aryaccordingto sizeandcomplexiry.The sequence, rocedures, nd deliverables reessentially onstant.Model projects or each evel of design can befound n Chapters ,4,5,6, and7.


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Chapter3TheMacro-Space-Plan

The macro-space-plan ften is the mosr important level of facilityplanning. It sets the fundamental organization of the factory andpatterns of material flow with long-term effects.From personnelturnover o quality o delivery, hemacro-space-plannfluences lmosteverymeasureof facility and organizationperformance.Donewell, t isa platform for reengineering usiness.t can orcereexaminationof markets,products, and processes.t can achievequantum improvements n productivityand profit. It can position afirm for profitability and growth. Done superficially, t can leave realissues nquestioned.This chapterexplainshow to designmacro-space-planssing astructured, tep-by-step pproachhat results n a near-optimalspaceplan andwideacceptancefthe results. his approach asseveralparts:

conceptualframetuork, modelprojectp/ans, taskprocedures,onventions,and designoolsand aids.Chapter2 introducedthe conceptual rameworkwith its levelsofdetail hat narrow heproject o a manageableevel.These undamentaland derivedelements how how a space lan dwelops. Arranging thelevels n phases elpsplan theproject. n the pages hat follow, macro-space-planning-one of the more important phases-is examined.With a model project plan, tasks are arranged.Procedure diagramsillustratehow to conducteach ask.The technical ools and other aidsprovide hemeanso complete ach ask.Figure3.1 s he modelprojectplan for a macro-layout.t shows he required asksand heir sequence.This modelevolvedrom thesystematicayoutplanning(SLP) approachdeveloped y RichardMuther almost hirtyyearsago. t hasbeenused


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3 0 Facilit ies lanningfor hundreds of projectsand suffices or almost any size and type ofmacro-space-plan. rom project to project, the depth of analysischanges longwith the methods or each ask, he resources) nd thetime. Occasionally, project equires few additional asks.However,the basicstructureand sequenceemain he same.Each task has a two-part identificationnumber.The two digitsbefore he decimalshowthe asklevel. he digits ollowingthe decimalidentifythe specific ask, oughlyin sequence.ask03.04, or example,is the fourth taskat Level 3, the macro-space-plan.The tasksofthe modelprojectoccur n threedistinctgroups:dataacquisition, trategy evelopment, nd ayoutplanning.Thesegroupsarenear he top of figure 3.1.Two tasks,03.01 and 03.27,areoutsidethesegroups.Task 03.01 starts he project,with plansfor activities,timing, and esources.ask03.21 s he actual election fthe preferredlavout option. It closes he projectand allowspreparation or Level4,the micro-space-plan.A procedurediagram s providedfor some asks.For example,figure 3.3 is the procedurediagramfor Task 03.02.Such diagramsillustrate he logic flow and sub-tasksequired.These procedures resometimesterative.Most early ayout modelsemphasizedhe thirdtaskgroup,where geometricarrangementakesplace.Of course,hisis important, but far more important is the determinationof whatspaceso arrange.The definition of these ayout cellsestablishesheorganizationofa faciliry'swork. Embodied in cell definition, it has armore mpact on facility performance.Figure 3.1 alsoguidesdesignershrough their first layoutsusingthe systemdescribedn this chapter.The design ask at hand shouldalways be the central focus and any temptations to jump aheadprematurely o other tasksshouldbe resisted.Completed tasftsalsoshouldnot be revisited.Figure 3.1 helpsdesigners oncentrate n thecurrent task, ts procedurediagram,and specificdiscussions.f eachtask s done n propersequence,he space lanwill take shapeandtheprojectobjectivewill be reached.It is vital to keepmanagershroughout the organization nformedduring the entire planningprocess, responsibility estsuited o thedesigner. Many facility projects result in fundamental changesandrestructuring.Managers ndothersneed ime to learnnewinformationandform newviews. f theyarenot kept nformed and nvolved n thelearning and reasoning rocess, greement nd consensus il l not beachieved. his could result n the rejectionof an excellentayout.There areseveralormal and nformalwaysofinvolving managers.Formal methods nclude using a steeringcommitteeto oversee nd


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The Macro-Space-Plan 3 1review progressand adding updatemeetings to the model project. Akickoff meeting can follow Task 03.01. During such a meeting, keymembers of the organization could review tasks and confirm thatresourcesare available.An additional meeting, at which time factualdatawouldbepresentedn a non-threateningmanner,might followthe

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3 2 Facilit ies lanningdataacquisition asks.A formal meeting is valuable or developingoperationsstrategyandcanbean mportant consensusuilder.Agreementandcommitmentto the operationsstrategyarevital for later agreementon a faciliry plan.Task 03.21, he evaluation nd selection f space lan options, s alsoa good consensusbuilder. Extensive interviews and informalconversations ith managers nd others hroughout the organizationare also mportant.IntroducingCosmosProductsCosmosProducts s the companyusedas a model in this chapter oillustrate he processesffacilitiesplanningat themacro-level.CosmosProductsconvertshigh-gradevinyl film into decorativematerial.Thefirm has wo broadproduct ineswith differentprocesses, arkets, nddistribution channels.Roll products-pin-striping material n manycolors, patterns,widths, and combinations-sell in the automotiveafte market.Customsheet roducts el l o manufacturershat use hemfor labels, ogos, and decoration.Manufacturersof campers'boats,chainsaws,andagriculturalequipmentare ypicalcustomers.Cosmosoften prepareshe artwork for thesecustomers.Customproductsareflat sheets f materialwith imprinting, adhesiveanda paperbacking.

CosmosProductsstartedas a small operationabout twenry-fiveyearsago.The firm hasgrown significantlyeachyear at n averageateof 22percent.To accommodatehis growth, therehavebeena numberof additions o the currentfaciliry. In recentyears'managementhasexperienced ifficulty that hasmanifestedtself n too much nventory'shippingdelays, nd generalconfusion.The company's urrentproject s reengineeringhe faciliry andrelatedDrocesses.he obiectives re o: reducematerialhandlingcosts;reduce'operating .orrrl i-prove delivery performance; irip.or'.teamwork, communication, and quality; allow for new products;accommodate 998production;and deliver he projectundera budgetof $800,000. he steering ommittee or this projectconsists f; O. W.Holmes, presidentandchiefexecutive ffi cer; .Marshall, chieffinancialofficer; W. Burger, vice president,operations;and E. Warren, vicepresident,sales nd marketing.Planninghe projectTask 03.01, PlanProject,"develops specifi projectplan.Developinga soundmacro-space-planemands ignificant esources.n this step,the dispositionof those esourcess mappedout.The model project nfigure 3.1-works for almost everymacro-space-planproject, whether


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The Macro-Space-Planlarge or small. Small or simple projectsmay need ess ormality, rigor,anddocumentationhan largeror complexprojects.Nevertheless,heessentials f each askmust be done.Step1 establisheshe key decision-makersor the project.Afterthey are nterviewedand their objectivesareestablished, he time andresources eeded or each task should be defined.With the aboveinformation and he model, hedesignerhenplans he project.Projectplanning software is useful for this task, although for most macro-space-plans,simpleGantt chartwill suffice.Figure3.2 s heschedulefor a new macro-space-planor CosmosProducts.In addition to statementsoutlining tasks, elapsed ime, andresponsibility, he deliverablesor each ask should be identified. Adeliverable s a tangibleoutput for the task.A written summaryoffindings is a valid deliverable, as are a material flow diagram andphysical infrastructure checklist. "IJnderstand material flow" is not avalid deliverablebecausehere is no way to see' measure,or judgecompletion. The designershould confirm that these deliverablesaccuratelyreflecthe ntentionsofkeydecisionmakersbefore roceeding.For Task 03.01,"Plan Project," he deliverables re a task ist, aGantt chart, and a summary hat includes he project objectives.APERT chart s usefulbut not necessary.The typical ime frame or completinga projectof Cosmos's izeand complexity is about forty working days.Almost half is used forinformation acquisitionand strategy.This providesa firm foundationfor the layouts o follow, therebyeventually educing otal project time.This is sometimes ifficult for impatientmanagerso accept ecausettakes onger for a spaceplan to aPPear.However, far less ime is spenton changesand debate.Moreover,a consensusor the plan is morelikely when all participants have been through the information andstrategJ tages.Information acquisition tasksOnce there s approval or the projectplan, the first setof tasks nvolvesthe gatheringofirrformation,both quantitativeand qualitative, eededto developsoundmacro-space-plans.This phasehasanotherpulpose hat may be more profound andlessobvious: aising awarenesshroughout the organizationand askingdifficult questions hat many n the org anizationmaynot haveconsideredpreviously. t this time, the process fbuilding suPPort ndconsensusfor the outcome s begun.In addition to analysisskills, spaceplan designersmust haveanunderstanding f individualandorganizational sychology. onsensus

33


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34 Facilit ies lanning

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The Macro-Space-Plan 3 5means ime andcommonunderstandingshat mustbeginearly n orderto bear ruit at the end ofthe project.Product-volume ana lysisProduct-volume (P-!) analysisexamines he current and future timeframes or the products and their volumes.This analysishelps thedesigner nderstandhe relationships etween arious roducts.High-volumeand ow-volumeproducts, or example,may requiredifferentequipment and production modes.The analysisalso defines uturerequirements, elps select he bestplanninghorizon, and allows forchanges eyond he immediatespace lan.The results f theP-V analysis rovide mportant nput for manylater tasks,and, therefore,shouldbe completedearly n the project.Facility designers hat have been long-time employeessometimesbelieve hey know the productswell enough to skip this task,but thisis not recommended.The procedure iagram or product-volumeanalysiss n figure3.3.Block1 documentshegathering finformation.Thismaybeaccomplishedin the following ways:visuallyexamininga rangeof finished products;reviewing salescatalogsand other information for an overviewof theproduct line; and interviewing salesand marketing people. It is also

important to obrain overallsales olumehistory (usually, ive to ten yearsisadequate).Wheremarketsand echnologies rechanging apidly, vyo othreeyearsmay be a moreappropriateime frame.Sales orecasts or the following five to ten yearsshould alsoberequested. n absence f this nformation ndicates ncertainty. t mayrequiremultiplecontingenciesn the faciliryplan.Unfortunately,salespeopleand other managersmaybe unwilling to commit to a forecast.In sucha situation,high, low, andoptimistic forecasts ould be askedfor, with the explanation that they are needed for facility planningpurposes nd extremeaccuracys unnecessary.A request or a sales orecastmay touch off a flurry of executiveactivity becausehe requestednformation may nor exist or may bequestionable.Generating he numberswill help build managementawareness.t is sometimes he beginning of an important strategicdebatehat ultimately eadso better acilityplans.This debatealsocanleadto important andprofound changesn managementhinking.In Block 2, the forecastdata s plotted on a line chart alongwithsales istories. f theyareavailable, primisticandpessimisticorecastsshouldalsobe added.After examining he chart,plotting a regressionline like that in figure 3.4 may be helpful. Where seasonalitys aconcern,a separate hart couldbe used o show monthly sales or the


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3 6 Facilit ies lanningpast wo to four years.Visualpresentation s moremeaningful han a istofnumbers.A simplechartoften reveals reviouslyunrecognizedrends.In Block 3, the productsareexamined or appropriate rouping.If the facility will only produce a few products, such grouping isunnecessary.ost facilities, owever, avemanyproductsorvariationsin anywhere rom three to fifly groups.Preferably, hesegroupshavecommonmanufacturingcharacteristics swell ascustomer equirements.Sometimeshe distribution channeldetermines ales roups.During this task, the groups may have either a marketing ormanufacturing rientation,orboth. A marketingorientationmeans heitems within a group are similar for the customer.A manufacturingorientationmeanshe temswithin agrouparesimilarformanufacturingpurposes.These groups m y or may not be the same. Sometimes

2GroupedProdud tofile. Dollars. Pi@es. OtherLhib

Figure3.3- Tosk3.01, Product-Yolume nolysis


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The Macro-Space-Plan 3 7

Thousands403530252A1 51 050 8&g&'1!$3ra1q" -l rf *f+,1f . : : rr: :at -t : i i ' : t , : -r i l i r :a*ia i : :s. : : : : . " : t rr: : : l l : . rt : . . . r. : : : r ' . - i : : ' - :. l1 9 8 71 9 8 81 9 8 91 9 9 0 1 9 9 1 1 9 9 21 9 9 3 1 9 9 41 9 9 5 1 9 9 61 9 9 7

Figure 3.4 - Soles HistorylForecost

operationspeopleadoptproductgroupsoriginallydevisedby marketing.This cancomplicate he manufacturing rocess nnecessarily.Once he groupshavebeendetermined, groupedproductprofileshouldbe prepared.Suchaprofile takes he form ofa rankedbarchartshowingsalesolume or eachgroup fig.3.5).Sales olume s measurablein dollars,pieces, r other convenientunits. Several rofilesshowingdifferentunits suchas onsor palletsmavbe helpful.A second -axison the chart showscumulativepercentage.A moredetailed roductprofile,Block4, alsomight proveuseful.There aresituationswhen aproduct group hassignificantsales olume,but individual products n the group have few (or no) sales.The forecasts nd P-V analysis ecome he agreed ponbasis orprocess esign, paceequirements, torageequirements, nd materialflow analysis.t is important to confirm the forecasts nd other P-Vdatawith managers nd especially ith the key decision-makers.The P-V analysiscan assistwith the development of themanufacturing strategy.High volume and low variety suggesthigh-speedproduction line equipment. Low volume with high varietysuggests functional ayout.High varietyand a wide rangeofvolumessuggest ellularmanufacturing.Seasonalariationnecessitatespecifistrategies or inventory and capacity.The section on manufacturing


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38 Facilit ies lanningstrateg'ywill explore hese ssuesmore fully.A few short paragraphsor bullets can summarrzethe findingsfrom the P-V analysis sshown n figure 3.3, Block 5.Figures3.3 hrough3.5 llustratedeliverablesorthe CosmosProductVolume Task The following is its P-V summary,anotherdeliverable.CosmosProductsProduct-volumeumma yThe 22 percent growth rate is expected o slow somewhat during thenext three years.The 1997 forecast olume of 35,000 units will be thefirst faciliryplanninghorizon. Cosmoshasabout 10,000 ine items nthe product database. heseareinl92 groupsaccording o significantfeafuressuch as basematerial,color, and width. Thirty-four groupsrepresent 0 percentofsales.Ofthe 192 groups,63 generateess han$200per month of income.We may havesignificantopportunity tontionalize the product offering or modify our inventory policy.Existing process analysisTask 03.03, ExistingProcess nalysis,"nvolvesrackingworkproductactivity,or thesequencesn which outsideentitiesacton anorganization'swork product. For manufacturingspaceplans, the work product isusuallya physicalproduct. n otherspace lans, he work productmaybe intangible such as an information packet. n a hospital, he workproduct maybe a patient.Existing process nalysis ocuments he process urrently n place.However, fthe product s new,suchaprocessmay not exist,and a similar

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Figure3.5 - Product Profile


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The Macro-Space-Planproduct andprocess houldbestudied. fboth product andprocess aveno current benchmarks,an initial proposal for the processshould beselected.The eady completionof this taskcreates reference oint forprocessmprovementsand a space lan. The space lan designerusuallyperforms this taskwith assistancerom production people.This bringsdetailedknowledgeof actual loor operations o the process._ Figure3.6 shows he procedu e for analyzing he existingprocess.one or more flow processcharts are constructedduring ihis task.Modified ANSI conventions see ig. 3.7) areused n this chartingsystem,wherebysymbols epresentdifferent typesofevents hat involvea work product.The operationsymbolmodifies the work product in a way thatadvancest towardsa finished state.The transp,rt symbor hows a

physicalmovementofthe workproduct-usually a significantdisrance,such as ten feet or more. The bandling symbol epresents orting,positioning, or some other short movement. nspection checks orquality.The delay ymbol epresentsomething hat haltsthe processora time. Often, this is a work-in-process taging.Storage s a longerwait, usually n a designated reawhere thelocation and material have records. A short horizontal line at thebeginningofthe process howstems rom suppliers utside he processunder study.vertical lineson the chart showthe sequence fivents.Horizontal arrows showwhere several tems of work product merge.Text to the right of eachsymboldescribeshe event.Thesenotesalsomight ndicate ime, henumberofpeople, rotherrelevantnformation.Process hartsand material low chartsshouldnot be confused.There s a notabledifference.with process harts, he symbolsarenotlocationsor workstationsor evenmachines.only the text haswho,what, andwhere nformation.The linesdo nor representmovementofthe work product; nstead, hey represent nly ^ ,.qu.rr." of events.Constructing the chart(s)meansgathering nitial informationbeforehand; his is illustratedby Block 1 in figure 3.6. Someof thiscomesrom the P-vanalysis Task03.02)andsome romlookingattheprocess nd talking with knowledgeable eople;- Block2 (fig.3.6) of theprocedure eginsaddressinghe questionof how manyandwhich products o analyze.Itasksf theie areproductgroupswith similar processes.he answershould be basedon theobservations nd knowledgecurrentlyavailable.Somesituationsmay

present housands r tensofthousandsofproducts.A definiteanswermay norbepossiblewithout extensive nalysis,w-hich s unnecessaryt this point. Suppose,or example,an injectionplanning facility were being planned.The plant supplies67 molded

39


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40 Facilit ies lanningitemsbut each tem comesnanyof 79 colors. his givesa otal of 7,273item, or SKU, numbers.However,the plant usesquick color changeequipmentand hashoned heir skills n colorchanges. or manufacturingpurposes, olor is not a differentiator.The molderscan make anygivenpiece n any coloror a successionf colorswithout difficulty. The 19colorsof eachpart would thereforebe groupedas f they were a singleproduct. f suchgroupscannotbe identified,Block 3 is the next steP.Block 3 asks f there are ewer than2i products. f there are,each

ProcessChart

Figure3.6 - Task 3.03, AnolyzeCurrent Process


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The Macro-Space-Plan 4 1item is charted.For more than25, a charting sampleof 5 to 25 itemsshould be selected.This is Block 4 or Block 10. Product groupsidentified in Block 2 are reatedsimilarly, resulting n Block z. Simptysubstitutegroupsfor individual products n the processdescribed.There are severalmethodsof preparingthe charts.For a simpleprocess' ersonalobservations enough. f computerized outingsareavailable, hey may be used.A personal nterview with someonJwhoknows the processwell is sometimessatisfactory.usually, however, agroup approachshouldbe used. t caprures wide rangeofopinion andknowledgeand helpsbuild consensusor the chartaswell as or the laterspace lans.

_The group approach garhers the mosr knowledgeablepeopleavailable.Together, they constructachart that follows the matirial oritem and records events that affect it. People often have difficultydistinguishing he product or item, workers,and machines.To helpwith this, theyshould magine they havebecome he product and haveassumedts role.They should hen report their experiences.All elementsshouldbe recorded.Frequenth. there s an ,,official"process ocumented n routingsanda computeidatabase. hen thereis the "unofficial" process-what really happens.unofficial erementsmay include set downs, queues,and repairs.The group may wish toinclude other information on the chart suchasprocess ime or cost.when this is complete, the group should make further commenrs,particulady about which processelementsare troublesome.someadditionalquestionso bring out important processssues re:. Which elements eneratehe most qualitydefects?. Which elementsare most difficuit to setup?. Where are the largest nventory buildupsl. Which elementshave he most schedulingdifficulry?. Which elements emand he most abor?The analystguidesthe group during this taskby deciding:. the levelof detail for processelementsl. the number of products to chart;. whether and how to group products;and. whether and how to group items that go into a product.To tallya countfor each '?e ofelement, he percentage ftotal elementsis calculated.These could be chartedon a bar or pie graph. Only theoperationsymboladdsvalue.All other elementscontribute only costor

time. The percentage fvalue-addingelementsscalled he valueaddedindex vAI). vAIs frequentlyarentherangeof20 o 30percent.Awen-thougtrt-out process houldhaveaVAI of at least60 p-r.ent:Next, a short summaryofthe resultsshouldbepripared. The flow


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42 Facilit ies lanningprocess harts,elementprofiles,and written findingsaredeliverables.The following is the Cosmosprocess ummary:CosmosProducts:Existing rocesssummotyThe valueadded ndex(VAI) for roll products s 13 percent'The VAIfor commercial roductss 20 percent.Theseareboth quite ow.Therearea substantial umberofopportunities o reduceransport'handling,and storageelements.In ro11 roducts, he processesequirespecialequipment'Thisequipment s relatively mallscale.Changeoverimesrange rom fiveto forty-five minutes.For commercial roducts, rocess calesverysmall n themanualoperations t pick-and-pee1. ie-cutting operates n a medium scale.Silk-screeninguses arge-scale resses.We may wish to investigatesmallerscale rocessesor silk-screening.Slit-and-sheet perations ll usea singleslitterthat is quite fast.Both commercialandroll productsuse he samematerial.Optimizingthe use of each roll savessignificantwastage. t seems o dictatecontinueduseof a commonslit-and-she t tea or all products.The processcharts for Cosmos Products arc fairly simple. Inadditionto themodifiedANSI conventions,igure 3.7shows heprocessfor one of Cosmos's oll products-a vinyl stockmaterial or signsandotherdecoration.Figure 3.8charts he processor a multi-color, die-cutdecal,a ypicalproduct rom oneofCosmos'scommercialmarkets.Thesedecalsdecorateautomobilesand other outdoor equipment.This singlechart represents everalhousanddistinct products.With complexprocesses,t is often tempting to combine tems,therebyreducing he complexityof the chart. Simplifying the chart,however,s not the sameassimplifring the process.Much of the valueof aprocess hart s ts accurateepresentation f the full complexityofa process. t is an important meansof building consensus ndunderstanding or a new spaceplan. A readable hart on large-scaledraftingpapermaybenecessaryo conveyhefull scope ndcomplexityofthe process.lnventory analysisTask 03.04, InventoryAnalysis,"s mportant for at east wo reasons.First, inventory s usually he primary or secondary apitalconsumer'often vying with facilities for this dubioushonor. Second,almosteverydifficulty, problem,or defectn the business ystem ventually omesorest in inventory. Inventory thus canbe an indicator of the efficacyofthe business ystem.


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TheMacro-Space-Plan 43The inventoryanalysis ses inancial and warehouse ata.Thefirst step n the analysiss to preparea chart that showshistorical annualinventory turns, usually for five to ten yearsor even further if theinformation is readilyavailable.nventory turns are he total inventoryfrom thefirm'sbalance heet ivided nto thetotal salesor thepreviousyear.salesnformationusually omesrom the ncomestatemint.Theindustryaverageor the nventory urn also houldbe istedon thechart.The inventory urns for cosmosProductsare llustrated n figure 3.9.

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Figure .7 - Tosk?.03,ProductProcessChort


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44 Facilities lanningOne or more nventoryprofiles ike that in figure 3.10 shouldbeprepared.These are pie charts or bar graphs hat show the currentdistribution of inventory across everal lassifications. productionclass rofile shouldshow nventory by raw material,purchasedtems,

finished goods,and work-in-process WIP). A product classprofileshows nventory by product or product group. Other classifications,suchascustomerWq areuseful n special ituations.What does nventory analysisdetermine?Trends in inventoryhistorv can help size storaseareas or the new facilitv or layout. Such

9 . ; F H i g :c t c r ! g g e

Figure3.8 - ProcessChon for a Multi-color, Die-cut Decol


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The Macro-Space-Plan 45

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Average nventory nEquivalentStorageUnits

PurchasedN,4atls237 7y.

Work-ln-Process628 18%

Productron tage

Figure .10- lnventoryAnalysis


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46 Facilit ies lanningtrends provide valuable nput for the developmentof manufacturingstrategy.An unfavorable rend might initiate a change n strategy.The productionclass rofilealsocansuggest reasorimprovement.High levelsof raw materials r purchasedtems ndicateasupplierandpurchasing ssue.High levelsof WIP indicate materialmovement'scheduling, r focus ssues. high volumeof finishedgoods ndicatescheduling, ales, r marketing ssues. he following is an exampleofan inventoryanalysis ummary:CosmosProducts:nventory ummaryInventoryvolume has ncreased ignificantlyduring the pastsixyears.This increases higher han sales rowth' resulting n a gradualerosionof the rurn ratio. Managementanticipateshat, asa resultofthe facilityreengineering roject, he numberof turnswill increase, nd nventorylevelswill comedown.The inventoryprofile fig. 3.10]showshe portionofinventoryateach production stage.This indicatessignificant opportunities forreducing inished goodsand purchased inyl.SpaceAnalysisThe spaceanalysis evealscurrent spaceuse. The spacediagramsindicatewhether the existing ayout s primarily functional,product-focused,or a mixture, aswell aswhich productsuse ine or cellularproductionandwhich use unctional ayoutmodes.This space nalysisalsohelpsdefine ayout cells ater n the projectandcan be a basis orspace equirementcalculationsor the newfacility.The spaceprofile alsorevealsmbalancesn spaceuse.Value-added pace enerally epresents0percentor moreoftotal space sagein thebestspace lans.When value-added paceallsbelow30 percent,therearesignificantopportunities or improvement.Large amountsofstorage pace an ndicateaneed or moreceilularand ine production,or it may show a needfor schedulingsystem evisions.Using largeamounts of space or inspectionor repair may indicate significantquality ssues.When operations ocus s an issue,addinga product space lassdiagram s useful. t classifiespace yproduct.Eachproductgrouphasa patternor color. Space sed or operationsor a singleproductgroupwill haveonly onecolor,while functionalspace sed or operationsormanyproductgroupswill havemany colors.A product-focusedayouthas a "clean"product spacediagramand a "messy''functionalspacediagram.A processocused functional) ayout has he opposite.Thesectionon oDerationsocusexploreshese ssuesn more detail.


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The Macro-Space-Plan 47The analyst suallyperformsTask 03.06, SpaceAnalysis,',withassistancerom thosewho are familiar with operations.The analysisbeginswith acurrent drawing of the facility, preferablyone that showsmajor departmentsand,perhaps,detailsof equipmentand furniture

locations.The colorsor patterns n figure 2.9 are hen used o codemarked-offspace n this drawing.A tlpical result s the existingspacediagram or cosmos Products n figure 3.11.The area or "".h ,p"..class s totaledand a space lass rofile similarro the pie chart abeled"Existing SpaceProfile" n figure3.11 s prepared.

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48 Facilit ies lanningThe collection and presentationof this information can alertmanagerso key ssues. swith the other nformationacquisitionasks,this is an important resultof the spaceanalysis. he analystshouldencouragemanagerso beginaskingsuchquestions s:' Why do we use40 percentof our facility for storage,yet weconstantly fall short on customerdelivery?' Why are aislesn our facility so disjointed and chaotic?' Why doesProductA require18 percentof our facilitys spacebut only generatespercentofour sales nd0.5percentofour profit?The following is the space nalysis ummary or CosmosProducts'

CosmosProducts:Existing pocesummoryI\{uch of our spaceappears isconnected nd scattered. he existingspacediagramshowsno clear,undedying plan. The proPortionsofspaceuse are better than in many other industries,but could beimproved.Significantopporrunitiesmay exist n reducingstorage ndtraffic areas.Some parts of the plant havenarrow aisles.Others haveoverlywide aisles hat becomeWIP storageareas.Organization analysisTask 03.06,"OrganizationAnalysis,"hasseveral urposes.t canhelpdetermine he sizeof support acilitiessuchas estrooms ndcafeterias.In office ayouts, t maybe essentialor planningspace asedon workstation requirements. t can help evaluate he current and proposedspace lan. It can assistn formulatinga manufacturingstrategyor inidenti4'ing inconsistenciesetweenstrategyand practice.Organizationanalysis suallybegins ith a completeandcurrentorganizatronchart rom the personneldepartment. t should ncludealldepartmentsand employees hat use the facility hdown to the lowestlevil. It alsomight includedepartments nd peoplewho resideoutsidethe facility but havea major impact on operations.An examplemightbe a corporateengineeringdepartment that designsprocesses ndoroducts but is in a remote location. Names and titles for eachproductionworkerarenot needed, ut thereshouldbe an approximatecount for eachsupervisor nd department.Thesechartscanbecomequite argeand mayhave o beplottedonlarge-scale rafting paper,but the chart shouldnot bebroken nto smallsheets.This may be convenient or the analystbut it disguiseshe truenature of large, convoluted organizatrcns.Maximum impact is the aim.Managersmustdevelopandapprove he sftategicbasisof the space lan,aswellashe spaceplanitselfFigure3.12shows owto constructthe hart.After the organ\zationchart is complete, the current spaceplan


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The Macro-Space-Plan 49shouldbe examined.A continuous,enclosedine on the organizationchartshould epresent achmajorareaon the ayout,surroundingeachpositionor department hat inhabits he layoutareauntil all positionsare accountedor.Figure 3.12 llustratesspaceandorganizationcongruity. It showsconsistency between the current otganizatron and the currentarrangement.Peopleand positions n the samedepartmentgenerallyoccupycontiguousareas.

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Figure3,I2 - Orgonizationol Anolysis


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50 Facilit ies lanningA messydiagramfig.3.13)demonstratesowmanypeople n thesameorganization units arescatteredhrough the facility. The diagramby itself does not tell us whether the facility or the organization iscorrect; t shows hat they are nconsistent.

ldentifying physical nfrastructurePhysical nfrastructure supports operations or all or most of theproduct line but doesnot contribute directly to the process. or this

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Figure .13- OrganizationalAnalysis


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The Macro-Space-Plan 5 1reason, hysical nfrastructureelements o not appearon the processcharts. Infrastructure seldom relates to a single product or productgroup. Examplesare: cafeteria,maintenancedepartment,heating,ventilating andair conditioning space, ndelectricalswitchgear ooms.Theseelements renecessaryor operations nd heyareessentialo thespaceplan, yet they areeasy o overlook.A physicalnfrastructure hecklist fig. 3.1a) helpscatalog hesefeatures.using this form involvesstepping hrough thelist with a smallgroup of knowledgeablepeople.Qrestions to askare:. Is each tem in the current acility?. Will a similar tem be neede in the newfacility or space lan?This list will be input for the celldefinition task ater n the project.

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5 2 Facilit ies lanningAnalyzing material flowIn this task, nformationfrom the process nalysiss superimposed nthe current spaceplan. The resulting diagramsbring attention tomaterialmovementopportunities. hey also ndicate he

good book- materil handling

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