Module on Layout & Facilities Planning. 2 Operations Management: Layout & Facilities Planning In...
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Transcript of Module on Layout & Facilities Planning. 2 Operations Management: Layout & Facilities Planning In...
Module on
Layout & Facilities Planning
2
Operations Management: Layout & Facilities Planning
In this module we will discuss:
• Layout types
• Employee & customer considerations
• Steps in layout planning
• Manufacturing & service layout
• Contemporary layout issues
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Operations Management: Layout & Facilities Planning
1.Layout planning is concerned with placement of departments, working groups, machines, and stockholding points within a production facility. The objective is to arrange the elements in a way that facilitates smooth work flow ( in manufacturing) or a particular traffic pattern ( in service).
2.Layout planning is the integral part of design of the productive system. It is a physical expression of technological choices, capacity decisions, process & job design, material handling and communication system that joins the processes.
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Operations Management: Layout & Facilities Planning
Types of Layouts:
• Fixed position layout
• Process layout
• Product layout
• Cellular layout
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Operations Management: Layout & Facilities Planning
Process Choices
Project
Jobbing
Batch
Line
Continuous
BuildingDams Special,
Small Orders
Mid VolumeProduction
High VolumeProductions
Small LargeAverage Order Size
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Operations Management: Layout & Facilities Planning
Attributes of Projects
Applications: Usually large, one of kind
Order Winners: Price or Capability
Physical Resources: General purpose, mobile
Human Resources: Project skills, outsourcing
Information System: Tracking oriented
Project costing
Inventory: Timely Raw, sizable WIP, little FG
Adaptability to Change: High within charter
Fixed Position Layout
Question: What are our primary considerations for a fixed position layout?
Answer: Arranging materials and equipment concentrically around the production point in their order of use.
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Operations Management: Layout & Facilities Planning
Fixed Position (Project) Layout
• Suitable for large projects (shipbuilding, missile/aircraft assembly, dam building)
• Assembly is the main process
• Functional centres arranged around project
• Functional areas may be inventory storage or some form of fabrication
• Proximity of functional area depends upon frequency of use/ travel time
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Operations Management: Layout & Facilities Planning
Process (Functional) Layout• Used when competitive priorities are flexibility &
quality• Lot size Q is low & number of products/parts P high• Similar equipment/functions are grouped together• Variable routes between job centres• Variable processing time at centres • Waiting line (queue) at each centre• Enhances learning & skill development• Distances the supplier from the customer*• Examples: machine shop, job order shop,
hospital,consultancy organization
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Operations Management: Layout & Facilities Planning
Typical Attributes Of Jobbing
Applications: Special, Small, Make-to-Orders
Order Winners: Price, Speed or Capability
Physical Resources: General purpose equipment, process layout
Human Resources: Skilled, empowered, may be labor limited
Inventory: Timely Raw, sizable WIP, little FG
Adaptability to Change: High within charter
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Operations Management: Layout & Facilities Planning
Job Shop : Process Layout
Office Final Assembly Loading Dock
Milling Machines
Drill PressesPlantMaintenance
Welding Shop
Tool Storage
Boring Machines PaintBooths
Coffee
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Operations Management: Layout & Facilities Planning
Cellular Manufacturing
• Cellular manufacturing is a category of manufacturing processes that produce a family of similar outputs, one at a time, by linking together all possible operations in the required process.
• Whereas a job shop is designed to process a wide variety of product, the scope of a cell is limited to a subset of parts with similar processing characteristics.
• This subset of similar parts is called a parts family.
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Parts FamiliesParts Families
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Operations Management: Layout & Facilities Planning
Cellular (Group Technology) Layout• Lot size Q & number of products/parts P are both
moderate • Allocates dissimilar machines in to cells to
produce products having similar shapes/ processing requirements (e.g. all small gears)
• Objective is to get benefit of product layout in job-shop production
• Better teamwork & human relations• Improved operator efficiency, less in-process
inventory, material handling, faster production due to faster tooling changes
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Drilling
D D
D D
Grinding
G G
G G
G G
Milling
M M
M M
M M
Assembly
A A
A A
Lathe
Receiving and shipping
L
L L
L L
L L
L
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Cell 3
L M G G
Cell 1 Cell 2
Assembly area
A A
L M DL
L MShipping
D
Receiving
G
Line flows in a job shop with three GT cells
Group Technology:Transition from Process Layout
1. Grouping parts into families that follow a common sequence of steps.
2. Identifying dominant flow patterns of parts families as a basis for location or relocation of processes.
3. Physically grouping machines and processes into cells.
Group Technology: Benefits
1. Better human relations
2. Improved operator expertise
3. Less in-process inventory and material handling
4. Faster production setup
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Operations Management: Layout & Facilities Planning
Product Layout• Focus on product• Lot size Q is large w.r.t. number of products/parts
P • More suited to assembly than fabrication• If same process is required elsewhere, facility is
duplicated• Adequate volume for equipment utilization• Stable, long-term product demand• Product standardization• Continuous flow of materials• Throughput time & material handling minimized
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Operations Management: Layout & Facilities Planning
Typical Attributers Of Line Production
Applications: High Volume MTS Jobs
Order Winners: Often Price and capability
Physical Resources: Special purpose fixed product layout
Human Resources: Toward less skilled, unionized
Bureaucratic
Information System: Material and process control,process costingInventory: Timely Raw, sizable WIP & FG
Adaptability to Change: Low
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Operations Management: Layout & Facilities Planning
Service Facility Layout
• Service Types-Fixed / Delivered Services
• Fixed- Consumption at delivery point
• E.g. restaurant, bank, health care & hospital
• Layout is crucial for fast service
• In direct customer contact service- analyze
waiting line structure
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Operations Management: Layout & Facilities Planning
Service Facility Layout (cont..)
• Entry flow & Exit flow should planned
• Exit flow should not clash with waiting line
• Fast-food, standardized, high volume office
work- production line layout
• Banks, general offices-functional layout
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Operations Management: Layout & Facilities Planning
Facilities Location Problem
• Suppose there are 4 functions A,B,C,D
• How should they be located?
• Should it beA B
D C
A C
D B
A D
B C
A B
C D
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Operations Management: Layout & Facilities Planning
Inputs to layout decisions:
• Estimates for product/service demand
• Space required for layout elements
• Distance travelled by product & amount of flow between elements in layout
• Processing requirements
• Space available within & outside facility
• Building configuration
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Process Layout: Interdepartmental Flow
• Given– The flow (number of moves) to and from all
departments– The cost of moving from one department to another– The existing or planned physical layout of the plant
• Determine– The “best” locations for each department, where best
means interdepartmental transportation, or flow, costs
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Process Layout: CRAFT Approach
• It is a heuristic program; it uses a simple rule of thumb in making evaluations: – "Compare two departments at a time and exchange
them if it reduces the total cost of the layout."
• It does not guarantee an optimal solution.
• CRAFT assumes the existence of variable path material handling equipment such as forklift trucks.
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Process Layout: Systematic Layout Planning
• Numerical flow of items between departments – Can be impractical to obtain– Does not account for the qualitative factors that may
be crucial to the placement decision
• Systematic Layout Planning– Accounts for the importance of having each
department located next to every other department– Is also guided by trial and error
• Switching departments then checking the results of the “closeness” score
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Example of Systematic Layout Planning: Reasons for Closeness
Code
1
2
3
4
5
6
Reason
Type of customer
Ease of supervision
Common personnel
Contact necessary
Share same price
Psychology
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Example of Systematic Layout Planning:Importance of Closeness
Value
A
E
I
O
U
X
ClosenessLinecode
Numericalweights
Absolutely necessary
Especially important
Important
Ordinary closeness OK
Unimportant
Undesirable
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8
4
2
0
- 80
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Example of Systematic Layout Planning: Relating Reasons and Importance
From
1. Credit department
2. Toy department
3. Beverage department
4. Camera department
5. Chocolate department
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I
--
U
4
A
--
U
--
U
1
I
1,6
A
--
U
1
X
1
X
To2 3 4 5
Area(sq. ft.)
100
400
300
100
100
Letter
Number
Closeness rating
Reason for rating
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Example of Systematic Layout Planning:Initial Relationship Diagram
1
2
4
3
5
U U
A
A
I
32
4
1
5
2
3
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Example of Systematic Layout Planning:Initial Layout(ignoring space constraints)
1
2 4
3
5
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Example of Systematic Layout Planning:Initial and Final Layouts
1
2 4
3
5
Initial Layout
Ignoring space andbuilding constraints
2
5 1 43
50 ft
20 ft
Final Layout
Adjusted by squarefootage and buildingsize
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Operations Management: Layout & Facilities Planning
Layout Planning Steps
• Arrange work centres in order of dominant flow
(objective is to ensure resource/product flow at
optimum cost/time)
• Analyze product/resource flow ( Flow diagram/
From-To diagram)
• Include non-flow factors & combine with flow
factors
• Determine space requirements
• Fit space arrangement into available space
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Operations Management: Layout & Facilities Planning
Layout Planning Steps
• Arrange work centres in order of dominant flow
(objective is to ensure resource/product flow at
optimum cost/time)
• Analyze product/resource flow ( Flow diagram/
From-To diagram)
• Include non-flow factors & combine with flow
factors
• Determine space requirements
• Fit space arrangement into available space
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Analyze product/ resource flow
Flow diagram
From-to chart
Identify non-flow factors,
Where significant
Activity-Relationship diagram
Assess data and arrange work area
Activity arrangement diagram
Determine space arrangement plan
Space relationship diagram
Fit space arrangement in to available space
Floor plan
Detailed layout plan
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Operations Management: Layout & Facilities Planning
Thank you