1. Traditional Approaches to Facility Layout
Chapter 4
Source for some slides: John S. Usher class notes

2. Applications Manufacturing Healthcare Service
Restaurants
Banks
Airports
Entertainment
Logistics and Distribution
Ports/Terminals
Distribution Centers

3. Types of Projects 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

4. Significance of Facilities Planning
20-50% of all manufacturing costs are related to material handling
FP can reduce MH costs by 10-30%
Therefore…
2-15% reductions in overall manufacturing costs could be achieved by effective facilities planning.
Annual productivity would increase 3x more than it has in the past 15 years.
Hard to make similar projections to other areas of our economy
FP continues to be one of the most promising fields

5. Objectives Minimize material handling costs Utilize space efficiently
Utilize labor efficiently
Eliminate bottlenecks
Facilitate communication and interaction between workers, between workers and their supervisors, or between workers and customers
Reduce manufacturing cycle time or customer service time

6. Objectives (continued)
Eliminate waste or redundant movement
Facilitate the entry, exit, and placement of material, products, or people
Incorporate safety and security measures
Promote product and service quality
Encourage proper maintenance activities
Provide a visual control of operations or activities
Provide flexibility to adapt to changing conditions
Increase capacity

7. The Nature of FP Objectives
As you can see, there are MANY!
They are conflicting. How?
There are constraints. Can you list some?

8. The Facility Planning Problem
It is a constrained multi-objective optimization problem with many non-quantifiable costs and benefits.
There is NO OPTIMAL SOLUTION!
The best we can hope for is a “GOOD” solution.
Effective designs must consider all stakeholders
Owners
Customers
Suppliers
Employees
Neighbors

9. Layout Problems
Design or Optimization?

10. Facility Design Process
Combination of art and engineering
Many techniques available
Muther’s SLP Approach (1973)
Optimization based approaches
We will focus on the latter

11. Systematic Layout Planning
Phase I - Determination of the location of the area where departments are to be laid out
Phase II - Establishing the general overall layout
Phase III - Establishing detailed layout plans
Phase IV - Installing the selected layout

12. Systematic Layout Planning
Input Data and Activities
2. Activity Relationships
ANALYZE
1. Flow of materials
3. Relationship Chart
4. Space Requirements
5. Space Available
6. Space Relationship Diagram
SEARCH
7. Modifying Considerations
8. Practical Limitations
9. Develop Layout Alternatives
SELECT
10. Evaluation
Source: John S. Usher class notes

13. Systematic Layout Planning
P Product: Types of products to be produced
Q Quantity: Volume of each part type
R Routing: Operation sequence for each part type
S Services: Support services, locker rooms, inspection stations, and so on
T Timing: When are the part types to be produced ? What machines will be used during this time period?

14. Sample relationship diagram

15. SLP

16. SLP

17. Special Considerations in Office Layout
Minimizing distance traveled by employees
Permitting flexibility so that the current layout can be changed, expanded or downsized easily
Providing a safe and pleasant atmosphere for people to work in
Minimizing capital and operational costs of the facility

18. Operations Review Is the company outgrowing available space?
Is the available space too expensive?
Is the current building not in the proper location?
How will a new office layout affect the organization?
Are office operations too centralized or decentralized?
Does the office structure support the strategic plan?
Is the office layout in tune with the company's image?

19. Aesthetics

20. Aesthetics

21. Aesthetics

22. Aesthetics

23. Aesthetics

24. Aesthetics

25. Aesthetics

26. Aesthetics

27. Aesthetics

28. Cubicles layout

29. Cubicles layout

30. Iowa State DOT layout

31. Albany International Airport layout

32. Operations Review for MortAmerica, Inc.
Is there a significant increase in mortgage lending operations of MortAmerica, Inc.?
Are the costs of leasing and refurbishing interior space too high?
Is there a problem with the current location? For example:
There is not enough space for expansion
Major attorneys’ offices, other related financial institutions and restaurants, are not located within a reasonable distance of MortAmerica, Inc.
Adequate parking space is not available
Traffic is too congested
Will a change in office location improve business?

33. SLP for MortAmerica, Inc.
Evaluation
Planning
Site selection
Design and layout

34. SLP for MortAmerica, Inc.
Review current space utilization
Determine space projections
Determine level of interaction between departments
Identifying special consideration

35. Current and Future Space Requirements

36. Current and Future Space Requirements
Support service area
Current net space
Current gross space150% of net space
Future net space
Future gross space 150% of net space
Copying/Printing Area (C/P)
300
450
465
700
File Storage Room (FS) 80
120
Customer Waiting Lounge (CW)
800
1200
Conference Rooms (CR)
500
750
1000
1500
Employee Break Room (EBR)
200
850
1275
Rest Rooms (RR)
Total
1800
2700
3695
5545

37. Relationship diagram for MortAmerica, Inc.

38. Activity relationship diagram for MortAmerica, Inc.

39. Space relationship diagram for MortAmerica, Inc.

40. Pre-architectural layout for MortAmerica, Inc.

41. Engineering design approach

42. OSHA, ADA and Local Codes

43. OSHA, ADA and Local Codes

44. OSHA ADA and Local Codes