1 Facility Design-Week 1 Introduction to Facility Planning Anastasia L. Maukar

2 Definition of Factory Factory/Plant:

3 Factory/plant PRODUCTION SYSTEM RESOURCES MACHINES/ EQUIPMENTS MATERIAL INFORMATION MONEY ENERGY MAN FINISHED GOODS

4 Facilities Planning Facilities planning determines how an activity’s tangible fixed assets best support achieving the activity's objectives

5 Facilities Planning Examples: a. In manufacturing, the objective is to support production. b. In an airport, the objective is to support the passenger airplane interface. c. In a hospital, the objective is to provide medical care to patients.

6 Facility Planning-Hierarchy Facility Planning Structural Design Facility Location Facility Design Layout Design Handling System Design

7 Facility Planning Location:is the placement of a facility with respect to customers, suppliers, and other facilities with which it interfaces. Structure:consists of the building and services (e.g., gas, water, power, heat, light, air, sewage). Layout:consists of all equipment, machinery, and furnishings within the structure. Handling System:consists of the mechanism by which all interactions required by the layout are satisfied (e.g., materials, personnel, information, and equipment handling systems).

8 Typical Design and Planning Problems

9 Facility Planning Objectives 1.Support the organization's mission through improved material handling, materials control, and good housekeeping. 2.Effectively utilize people, equipment, space, and energy. 3.Minimize capital investment. 4.Be flexible and promote ease of maintenance. 5.Provide for employee safety and job satisfaction.

10 Issues in Facilities Design Minimize investment in new equipment Maximize production throughput rate Utilize space most efficiently Provide for the safety and comfort of employees Maintain a flexible arrangement Minimize materials handling cost Facilitate the manufacturing process Facilitate the organizational structure

Facility Plant Layout Facility layout: Arrangement of machines, storage areas, and/or work areas usually within the confines of a physical structure, such as a retail store, an office, a warehouse, or a manufacturing facility.  for the location of all machines, utilities, employee workstations, customer service areas, material storage areas, aisles, restrooms, lunchrooms, internal walls, offices, and computer rooms  for the flow patterns of materials and people around, into, and within buildings 11

12 Why is facilities layout important? 20-75% 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. “You can make as many mistakes as you want in layout planning, and they’ll all any for themselves if they avoid mistakes in the physical installation”

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

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

15 Service Layout Problem  Minimize transportation among personnel  Communication and privacy  Conform building codes  Safety & security for the personnel

16 Retail/Service Layout  Design maximizes product exposure to customers  Decision variables  Store flow pattern  Allocation of (shelf) space to products  Types  Grid design  Free-flow design Video

17 Service system layout – Grocery store

18 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?

19 Office structures Closed structure Semiclosed structure Open structure Semiopen structure

20 Closed structure

21 Semiclosed structure Teller

22 Open structure

23 Semiopen structure

24 Service Layout

25 Service Industry - Bank

26 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

27 Assembly facility layout

28 Driveway layout

29 Warehouse layout

30 Warehouse is a facility for storing merchandise, commodities or other items 4 main warehouse functions 1. Receiving 2. Storing 3. Order picking 4. Shipping Warehouse layout

31 Where to locate receiving and shipping functions? Should the two functions be combined at one location or separated? Warehouse layout

32 Warehouse Layout Problem Goal: utilize space effectively to minimize storage and material handling cost(MHC).

33 Warehouse Layout Problem Factor: shape and size of aisle, warehouse height, location and orientation of docking area, types of rack, storage & retrieval automation.

34 Warehouse Layout Problem Shape and size of aisle factor  MH equipment/ device  Types of rack

35 Warehouse Layout

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

37 Non Traditional Layout Problem Ex: Control panel LP in the design of a computer backboard.