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

2. 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?

3. Ann, Inc.

4. Ann, Inc.

5. Ann, Inc.

6. 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 A.D.
Romans developed full-fledged methods for the construction of temples, arenas, and other buildings. Detailed planning of public and residential buildings
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
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

7. Typical Design and Planning Problems

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

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

10. 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

11. 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.

12. 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

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. 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

16. Service system layout – Dentist’s office

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

22. Open structure

23. Semiopen structure

24. 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

25. Factory Floor Layout

26. Warehouse layout

27. Driveway layout

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

29. Engineering design approach

30. VIP-PLANOPT Layout