1. 9 Layout Strategies PowerPoint presentation to accompany
Heizer and Render
Operations Management, Eleventh Edition
Principles of Operations Management, Ninth Edition
PowerPoint slides by Jeff Heyl
© 2014 Pearson Education, Inc.

2. Outline Strategic Importance of Layout Decisions Types of Layout
Fixed-Position Layout
Process-Oriented Layout
Product-Oriented Layout
Use Line Balance Analysis for Product Layout

3. Strategic Importance of Layout Decisions
TURNING
MACHINE
MILLING
DRILLING
INDUCTION
HARDENING
GRINDING

4. Strategic Importance of Layout Decisions
Layout refers to the specific configuration of physical facilities in an organization.
Objective of layout strategy is to develop an effective and efficient layout that will meet the firm’s competitive requirements.

5. Layout Design Considerations
Higher utilization of space, equipment, and people
Improved flow of information, materials, or people
Improved employee morale and safer working conditions
Improved customer/client interaction
Flexibility

6. Types of Layout Fixed-position layout Process-oriented layout
Product-oriented layout

7. Fixed-Position Layout
Deal with large, bulky projects, e.g., ship & building
Product remains in one place
Workers and equipment come to site
Complicating factors
Limited space at site
Different materials required at different stages of the project
Volume of materials needed is dynamic

8. Fixed-Position Layout
As much of the project as possible is completed off-site in a product-oriented facility
This can significantly improve efficiency but is only possible when multiple similar units need to be created

9. Process-Oriented Layout
Similar machines and equipment are grouped together
To deal with low-volume, high-variety production
Each product / service undergoes a different sequence of operations
Example: Job shop

10. Process-Oriented LayoutM D G A
Receiving and
Shipping
Assembly
Painting Department
Lathe Department
Milling
Department
Drilling Department
Grinding P

11. Process-Oriented Layout
Surgery
Radiology
ER triage room
ER Beds
Pharmacy
Emergency room admissions
Billing/exit
Laboratories
Patient A - broken leg
Patient B - erratic heart pacemaker
Figure 9.3

12. Product-Oriented Layout
Organized around products or families of similar high-volume, low-variety products
Volume is adequate for high equipment utilization
Product demand is stable enough to justify high investment in specialized equipment
Product is standardized or approaching a phase of life cycle that justifies investment
Supplies of raw materials and components are adequate and of uniform quality
Repetitive or continuous process

13. Product-Oriented Layout

14. Product-Oriented Layout
Cafeteria serving Line

15. Line balance in product-oriented layout

16. Line Balancing in Product Layouts
Central problem in product layout is to balance the output at each work station along the production line
Line Balancing is the process of assigning tasks to workstations in such a way that the workstations have approximately equal time requirements

17. Total work time available
General Procedure for Line Balancing
Determine precedence relationships
Calculate Takt time =
Determine minimum number of work stations =
Determine the candidate list which includes the following tasks
The task whose immediate predecessors have been assigned to a workstation
The task for which adequate time is available at the work station
Decision rule: task with the longest processing time
Determine efficiency =
Total work time available
Units required

18. Line Balancing (Example 1)
There are 240 productive minutes available per day. The production schedule requires to complete 600 units each day. Arrange the work activities into workstations so as to balance the assembly line.
Task Immediate Predecessor Time (Min)
A Press out sheet of fruit —
B Cut into strips A
C Outline fun shapes A
D Roll up and package B, C
0.1
0.2
0.4
0.3 D B C A

19. Line Balancing (Example 1)
There are 240 productive minutes available per day. The production schedule requires to complete 600 units each day. Arrange the work activities into workstations so as to balance the assembly line.
Task Immediate Predecessor Time (Min)
A Press out sheet of fruit —
B Cut into strips A
C Outline fun shapes A
D Roll up and package B, C
Takt time = = = 0.4 min/unit
Production time available per day
Output needed per day
240
600
Round up

20. Line Balancing (Example 1)
0.2 D B C A
Takt time = 0.4 min/unit
0.3
0.1
0.4
Station Candidate Task Task Total Idle
Number list assigned time time time
A A
B B
C C
D D

21. Line Balancing (Example 1)
A, B C D
Work station 1
Work station 2
Work station 3
0.3 minute
0.4
minute
Efficiency =
Total task times
(# of actual workstations) x Takt time
= % =
(3 stations) x (0.4 minutes)

22. Line Balancing (Example 2)
(1) Draw a precedence diagram for the assembly line
Performance
Time Immediate
Task (minutes) predecessor
A 5 —
B 3 A
C 4 B
D 3 B
E 4 C
F 1 C
G 4 D, E, F
H 7 G
Total time 31 E 4 C 4 F 1 A 5 B 3 G 4 H 7 D 3

23. Line Balancing (Example 2)
(2) Assuming 500 productive minutes available per day, compute the takt time needed to obtain an output of 65 units per day.
Takt time =
Production time available per day
output required per day
= 500 / 65
= 7.7 minutes per unit

24. E C F A B G H D 4 4 1 5 3 4 7 3 Takt time = 7.7 min/unit
Station Candidate Task Task Total Idle
Number list assigned time time time
A A
B B
C, D C
D, E, F E
D, F D
F F
G G
H H

25. Line Balancing (Example 2)
Work station 1
Work station 2
Work station 3
Work station 4
Work station 5 A
B,C
D, E
G, F H
5 minute
7 minute
7 minute
5 minute
7 minute
Efficiency =
Total task times
(# of actual workstations) x Takt time
= % =
31 minutes
(5 stations) x (7.7 minutes)

26. EX 1 in Class
Balance the assembly line for the Tourist T-Shirt Company. The operations run continuously for 8 hours per day. Each day, 80 T-shirts must be produced to meet customer demand.

27. Immediate predecessor
EX 2 in Class
The assembly of Noname personal computers, a generic mail-order PC clone, requires a total of 12 tasks, and the job times (in minutes) along with the precedence relationships are summarized in the table. Suppose that the company is willing to hire enough workers to produce one assembled machine every 18 minutes. Perform a line balancing analysis.
Task
Processing time
Immediate predecessor A 12 - B 6 C D 2 E 3 F G 7
C, D H 5 I 4 J
F, I K
H, J L
Total 74

28. Summary
Fixed-position layout: Addresses the layout requirements of large, bulky projects such as ships and buildings
Process-oriented layout: Deals with low- volume, high-variety production (also called job shop or intermittent production)
Product-oriented layout: Seeks the best personnel and machine utilizations in repetitive or continuous production