1. Facility Layout 1

2. General Observations Facility Planning includes planning for: (1) the number of facilities and general facility type, (2) facility capacity, (3) facility locations, and (4) facility layout (process choice). Facility layout refers to resource positioning and ultimately the material and people flows as well as the space necessary for the operation and support of operations. Regardless of whether it’s a manufacturing or a service facility, the design process is dependent upon the objective(s): (1) low cost per unit, (2) short order response time, and (3) flexibility. The central focus of many facility layouts producing standardized (make- to-stock) goods or services is to minimize the cost per unit and throughput time. The central focus of many facility layouts producing customized (make-to- order) goods or services is to maximize the range of offerings that can be accommodated. 2

3. Strategic Importance 1. Capital investment and dollar investment in process design 2. Long-term commitment (cost of making alterations) 3. Process choice constrains the short-term rate of output 4. Relationship between design and productivity (operating efficiency) 5. Effects competitiveness (e.g., delivery speed, barrier to market entry) 3

4. Types of Processes Two broad categories: (1) intermittent (batch) and (2) repetitive (continuous) Most significant differences: (1) volume (batch size), (2) variety, (3) degree of customization or standardization Continuum of choice: Project Process Jumbled Process Line Process Continuous Process 4

5. Key Contrasting Differences Between Jumbled and Line Processes Jumbled Process Line Process Functional layoutTask layout Variable path work flowUnidirectional (fixed) path work flow Customized ordersStandardized Orders Low volumeHigh volume High varietyLow variety High flexibilityLow flexibility Low fixed costs/high variableHigh fixed costs/low variable Labor intensiveCapital intensive General purpose equipmentSpecial purpose equipment High skill labor requirementsLow skill labor requirements Easy capacity changesDifficult capacity changes Chaotic planning environmentStable planning environment 5

6. Product Life Cycle Volume Introduction Growth Maturation Plateau time 6

7. Product and Process Matrix: Matching the Product and Production Process Life Cycles Life Cycle Stage Introduction Growth Maturation Plateau Jumbled FlowEconomically Infeasible danger Cellular Assembly Line danger Continuous Economically Infeasible 7

8. Jumbled Layouts for both Manufacturing and Service Facilities Typically: early life cycle items, generally low demand, nonstandard 1. Common Design Objectives a. Flexibility (process, product, and volume) b. Minimize load/distance traveled 2. Strategies to Achieve Objectives a. Place resources that have high workload exchanges in close proximity b. Easy redesign capabilities (e.g., partitions, machines on wheels) 3. Process-focused layout design information requirements a. Space requirements: list of departments, work centers, or items to be arranged, their approximate dimensions, and the dimensions of the building that will house the items. b. Projection of work flows between various work centers, item throughput volumes, or closeness preference (REL) ratings c. The distance between locations and the cost per unit of distance to move loads (items) between various locations. d. The budget for the layout design. e. A list of special considerations (e.g., location of loading docks, windows, aisle widths) 4. Example Solution Techniques a. Linear programming methods b. Heuristic Methods 8

9. Evaluating Jumbled Process Solution Quality 1.Sum of load distance products 2.Sum of relationship (REL) scores 9

10. Line Process for both Manufacturing and Service Facilities Typically: mature life cycle items, high demand, standardized 1. Common Design Objectives a. Low cost per unit b. Rapid order response time 2. Strategies to Achieve Objectives a. High resource utilization rates (equalized workloads) b. High throughput volume and worker productivity (successive production stages in close proximity) c. Reduced material movements (many material entry points) 3. Layout Design Process: assembly line balancing = equal performance times a. Identify elemental tasks, precedence requirements, and time standards b. Determine desired (required) output rate c. Design Parameters: (1) Maximum possible output = Time available per day/bottleneck task time (2) Minimum possible output = Time available per day/sum of all task times (3) Target cycle time (must be > to largest task time) = Time available per day/ Desired (required) output (4) Theoretical minimum number of work stations = Sum of all the task times/ Cycle Time d. Allocate tasks to work stations: Heuristics 10

11. Evaluating Line Process Solution Quality 1.Actual number of workstations Good basis for predetermining solution quality is the theoretical minimum number of workstations 2. Efficiency = Sum of all the task times /(Number of stations * Cycle time) 3. Workload balance 4. Psychological factors (enrichment, specialization, etc.) 11

12. Additional Managerial Considerations 1. Control variance 2. Cross-training workers 3. Parallel workstations 4. Incompatible tasks and zoning constraints 12

13. Cellular (Hybrid) Layouts 1.Determine part families using group technology 2.Arrange equipment into manufacturing cells, each containing the equipment used to process a particular family of component parts, typically U-shaped or C- shaped 13

14. Common Performance Metrics 1. Throughput time: the average amount of time a product takes to move through the system. 2. Process Velocity similar to throughput times but it also takes into account the waste of time spent waiting ; determined as the ratio of: Throughput time/Value-added Time 3. Productivity: measures how well a company uses its resources, and is generally determined as: Output/Input 4. Utilization: measures the proportion of time a resource is actually used, and is determined as: Time a resource is used/Time a resource is available 5. Efficiency: measures performance relative to a standard, and is determined as: Actual output/Standard output 14