Introduction to Facility Design Chapter 1 S.S. Heragu, Facilities Design, 4th Edition, CRC Press

Case Study – Ann, Inc Founded in 1954 1,000 Ann Taylor and Loft stores DC in Louisville, KY – Why? 60% of the items cross-docked – Why? Many part-time workers – Why?

Ann, Inc.

Ann, Inc.

Ann, Inc.

Chronological list of facilities planning and design activities Date Event 4000 B.C.   Egyptians developed expertise in finding suitable locations for pyramids according to their astrological calculations 100 B.C. - 100 A.D. Romans developed full-fledged methods for the construction of temples, arenas, and other buildings. Detailed planning of public and residential buildings 1700 - 1900 Industrial revolution period 1910 First industrial engineering text book Factory Organization and Administration published by Hugo Diemer. 1913 First moving automotive assembly line introduced by Henry Ford. 1954 Quadratic assignment problem for micro- and macro-level location problems introduced by Koopmans and Beckman 1955-1995 Optimal and heuristic algorithms for the quadratic assignment problem 1959 Systematic layout planning approach introduced by Muther 1963 CRAFT (Computerized relative allocation of facilities technique) introduced by Armour and Buffa Early 1980s The flexible manufacturing system concept is introduced and attention shifts towards achieving plant-wide flexibility via medium-volume, medium-variety production using cellular manufacturing techniques 1985-present Modern software for facilities design problems 1990s-present Research on new layout concepts including dynamic layouts, robust layouts, and reconfigurable layouts introduced to support mass customization techniques

Typical Design and Planning Problems

Levels of decisions Strategic or Design or Long-term Planning or Intermediate Operational or short-term

Why is facilities layout important? 30-75% of product cost attributed to materials handling (Sule, 1991 and Tompkins et al. 2003) Layout of facilities affects materials handling costs Facilities includes machines, departments, workstations, locker rooms, service areas, etc.

Why is facilities layout important? Good layout increases productivity efficiency Reducing congestion permits smooth flow of people and material Space utilization is effective and efficient Facilitates communication and supervision Safe and pleasant working environment

Constraints in developing facilities layout Some pairs of departments must be adjacent Some pairs of departments must not be adjacent Some departments only in specific locations Existing building constraints OSHA regulations, fire codes, etc.

Types of layout problems – Some examples JIT manufacturer Relayout of an existing facility Relayout due to increased traffic (resulting from a merger) Consolidation of manufacturing operations from two or more sites to one Leasing of office space in a multi-story building Find a better layout in existing space Introduction of new product lines

Types of layout problems Layout of a service system Layout of a manufacturing facility Warehouse layout Nontraditional layout

Applications Manufacturing Healthcare Service Restaurants Banks Airports Entertainment Logistics and Distribution Ports/Terminals Distribution Centers

Types of Projects Expansion due to new product(s) New Facility General Re-layout (retrofit) Expansion due to new product(s) Expansion due to sales growth in existing products Re-organization of work areas (evolutionary design) Outsourcing of logistics capability Addition of automation technology Problem elimination Cost reduction Product discontinuation

Service system layout – Dentist’s office

Service system layout – Grocery store

Operations review for office layouts (Suskind, 1989) Is the company outgrowing its space? Is available space too expensive? Is building in the proper location? How will a new layout affect the organization and service? Are office operations too centralized or decentralized? Does the office structure support the strategic plan? Is the new layout in tune with the company’s image Does customer physically participate in service delivery?

Office structures Closed structure Semiclosed structure Open structure Semiopen structure

Closed structure

Semiclosed structure

Open structure

Semiopen structure

Manufacturing layout Minimize transportation cost of raw materials, sub- assemblies, work-in-process inventory, tools, parts, finished products, etc. Facilitate traffic flow Improve employee morale Minimize or eliminate risk of injury and property damage Ease of supervision and face-to-face communication

Factory Floor Layout

Warehouse layout

Driveway layout

Nontraditional layout Keyboard layout IC board layout Computer disk storage layout Airport gate layout

Engineering design approach

VIP-PLANOPT Layout