1. Facilities Planning and Design Course code: 1704031511
Spring
Required Text: Tompkins et al., (2003). Facilities Planning, 3rd or later Edition, John Wiley and Sons Inc.
Students are encouraged to refer to the text book, and to take notes during the lectures.

2. Chapter 1: Introduction
Definition of Facilities Planning
Significance of Facilities Planning
Objectives of Facilities Planning
Facilities Planning Process
Strategic Facilities Planning

3. Definition of Facilities Planning
Facility is a place, resource, or piece of equipment and other fixed assets provided for a particular purpose.
Facilities planning determines how an activity’s tangible assets best support the activity's objective.
Recently, facilities planning has become a strategy, and part of supply chain excellence.
Facilities planning is part art and part science.
Proper Facilities planning will have significant result on cost reduction and productivity improvement.
Facilities planning consists of:
Facilities location (macro level)
Facilities design (micro level, detailed)
Facilities systems design
Layout design
Handling systems design

4. Facilities location
The placement of the facility with respect to customers, suppliers and other facilities, and also its orientation on a given piece of land.
Factors:
Closeness (to the market, to the raw materials, to the suppliers, to other facilities, to the competitors)
Geographical area (zoning, transportation access, labor, demographics, climate, environmental considerations)
Fixed and recurring costs

5. Facilities systems design
Structural systems, enclosure systems, atmospheric systems,
electrical and lighting systems, communication system,
life safety systems, sanitation system, etc.
What systems are required
Where they are required
Integrating the systems into the overall facility

6. Layout design Layout for production areas
Production-related and support areas
Consists of all equipment, machinery and furnishing within the building envelope
Determination of:
Block layout
Relative locations and sizes of the planning departments
equipment and storage areas

7. Handling systems design
The mechanisms needed to satisfy the required facility interactions
It consists of materials, personnel, information and equipment-handling systems required to support production.
Receiving, storing, retrieval, transporting, packaging and shipping, postal system.
personnel transit system.

8. Which should be designed first:
the material handling system or the facility layout?
The layout and the handling system should be designed simultaneously

9. Example of Detailed Layout

10. Main characteristics of facilities in a supply chain
Proper Facilities planning ensures that a product will be manufactured and shipped to satisfy the ultimate customer needs, facilities that achieve this objective should have the following characteristics:
Flexibility
Flexible facilities are able to handle a variety of requirements without being altered
Modularity
Modular facilities include systems that cooperate efficiently over a wide range of operating rates
Upgradeability
Upgraded facilities easily incorporate advances in equipment systems and technology
Adaptability
Considering the
Calendar
Cycles
Peaks
Selective operability
Understanding how each facility segment operates
Allows contingency plans to be put in place

11. Levels of Supply Chain Excellence Process
Business as usual
Link Excellence
Visibility
Collaboration
Synthesis
Velocity
The facilities we plan today must help an organization achieve supply chain excellence.

12. Fig 1.1: Continuous improvement facilities planning cycle

13. Figure 1-2: Facilities Planning as part of Supply chain excellence

14. Figure 1-3: Facilities Planning for specific types of facilities (a) Manufacturing Plant, (b) Office, (c) Hospital (d) Emergency room

15. Objectives of Facilities Planning
Improve customer satisfaction
Maximize speed
Reduce costs (transportation costs, inventory costs…)
Integrate the supply chain
Support the organization’s vision
Effectively utilize resources
Maximize return on investment (ROI)
Maximize return on assets (ROA)
Be easy to adapt and to maintain
Provide safety for employees

16. Four main issues when designing a facility:
Customers
Internal efficiency
Work environment
Integration into the supply chain

17. Figure 1-4: Winning Facilities Planning Process

18. Figure 1-5: The model of success “ winning circle”

19. Figure 1-6 a: The facilities planning process: General and manufacturing facilities

20. Figure 1-6 b: The facilities planning process: Hospital

21. Figure 1-7: Cost of design changes during a project
Strategic Facilities Planning
Figure 1-7: Cost of design changes during a project

22. Strategic Facilities Planning
Figure 1-8:

23. Figure 1-9: Dimensions for improvement
Strategic Facilities Planning
Buildings, Equipment and People
Space standards, materials control and productivity measures
Provide enough time for planning
Figure 1-9: Dimensions for improvement

24. Significance of Facilities Planning
Material Handling costs are about 20-50% of overall operating costs (materials and manufacturing)
New technology renders old machines and equipment obsolete.
Employee health and safety have become a motivation for behind facilities planning studies.
Energy conservation is also another motivation for facilities planning studies.
Fire protection and security should be considered when designing facilities.
Community rules against noise, air pollution and waste disposal.
Compliance with disabilities acts.
Pilferage losses should be considered when designing facilities.
Table 1-1: Percentage of GNP expended on new facilities in USA ( )

25. Table 1-2: Explanation of Winning Facilities Planning Process

26. Table 1-3: Comparison of EDP, FPP and WFPP