1. © Wiley 2007 Chapter 10 – Facility Layout Operations Management by R. Dan Reid & Nada R. Sanders 3rd Edition © Wiley 2007 PowerPoint Presentation by R.B. Clough – UNH M. E. Henrie - UAA

2. © Wiley 2007 Learning Objectives Define layout planning and its importance Identify and describe different types of layouts Compare process layouts & product layouts Describe the steps involved in designing a process layout

3. © Wiley 2007 Learning Objectives - continued Describe the steps involved in designing a product layout Explain the advantages of hybrid layouts Define the meaning of group technology (cell) layouts

4. © Wiley 2007 What Is Layout Planning Layout planning is determining the best physical arrangement of resources within a facility Facility resource arrangement can significantly affect productivity Two broad categories of operations: Intermittent processing systems – low volume of many different products Continuous processing systems – high volume of a few standardized products

5. © Wiley 2007 Types of Layouts Four basic layout types consisting of; Process layouts - Group similar resources together Product layouts - Designed to produce a specific product efficiently Hybrid layouts - Combine aspects of both process and product layouts Fixed-Position layouts - Product is two large to move; e.g. a building

6. © Wiley 2007 Process Layouts Process layout unique characteristics include; General purpose & flexible resources Facilities are more labor intensive Lower capital intensity & automation Higher labor intensity

7. © Wiley 2007 Process Layouts - continued Processing rates are slower Material handling costs are higher Scheduling resources & work flow is more complex Space requirements are higher

8. © Wiley 2007 Product Layouts Product layout unique characteristics are Produce small number of products efficiently Resources are specialized High capital intensity Low flexibility relative to the market

9. © Wiley 2007 Product Layouts - continued Processing rates are faster Material handling costs are lower Lower space requirements

10. © Wiley 2007 Hybrid Layouts Combine elements of both product & process layouts Maintain some of the efficiencies of product layouts Maintain some of the flexibility of process layouts Examples: Group technology & manufacturing cells Grocery stores

11. © Wiley 2007 Fixed-Position Layout Used when product is large Product is difficult or impossible to move, i.e. very large or fixed All resources must be brought to the site Scheduling of crews and resources is a challenge

12. © Wiley 2007 Designing Process Layouts Step 1: Gather information: Space needed, space available, importance of proximity between various units Step 2: Develop alternative block plans: Using trial-and-error or decision support tools Step 3: Develop a detailed layout Consider exact sizes and shapes of departments and work centers including aisles and stairways Tools like drawings, 3-D models, and CAD software are available to facilitate this process

13. © Wiley 2007 Process Layout Steps Step 1: Gather information like space needed, from-to matrix, and REL Chart for Recovery First Sports Medicine Clinic (total space 3750 sq. ft.) A Radiology 400 sq. ft. B Laboratory 300 sq. ft. C Lobby & Waiting 300 sq. ft. D Examining Rooms 800 sq. ft. E Surgery & Recovery 900 sq. ft. F Physical Therapy 1050 sq. ft.

14. © Wiley 2007 Step 1: Gather Information (continued)

15. © Wiley 2007 Step 2: Develop a New Block Layout Use trial and error with from-to and REL Charts as a guide Use computer software like ALDEP or CRAFT

16. © Wiley 2007 Decision Support Tools Trial and error method good for simple problems Layout problems are combinatorial, 3x2 office layout has 6! Options (6*5*4*3*2*1 = 720 options) Computer programs are available decision support tools ALDEP based on REL and CRAFT based on form-to matrix

17. © Wiley 2007 Special Cases of Process Layouts There are a number of unique process layouts which include Warehouse layouts Office Layouts

18. © Wiley 2007 Warehouse Layouts Warehouse Layout Considerations: Primary decision is where to locate each department relative to the dock Departments can be organized to minimize “ld” totals Departments of unequal size require modification of the typical ld calculations to include a calculation of the “ratio of trips to area needed” The usage of “Crossdocking” modifies the traditional warehouse layouts; more docks, less storage space, and less order picking

19. © Wiley 2007 Office Layouts Office Layout Considerations: Almost half of US workforce works in an office environment Human interaction and communication are the primary factors in designing office layouts Layouts need to account for physical environment and psychological needs of the organization One key layout trade-off is between proximity and privacy Open concept offices promote understanding & trust Flexible layouts incorporating “office landscaping” help to solve the privacy issue in open office environments

20. © Wiley 2007 Designing Product Layouts Product layouts are different than process layouts Product layouts provide for sequential product movement that enhances efficiency Designing product layouts requires consideration of Sequence of tasks to be performed by each workstation Logical order Speed considerations – line balancing

21. © Wiley 2007 Designing Product Layouts - continued Step 1: Identify tasks & immediate predecessors Step 2: Determine the desired output rate Step 3: Calculate the cycle time Step 4: Compute the theoretical minimum number of workstations Step 5: Assign tasks to workstations (balance the line) Step 6: Compute efficiency, idle time & balance delay

22. © Wiley 2007 Step 1: Identify Tasks & Immediate Predecessors

23. © Wiley 2007 Layout Calculations Step 2: Determine output rate Vicki needs to produce 60 pizzas per hour Step 3: Determine cycle time The amount of time each workstation is allowed to complete its tasks Limited by the bottleneck task (the longest task in a process):

24. © Wiley 2007 Layout Calculations (continued) Step 4: Compute the theoretical minimum number of stations TM = number of stations needed to achieve 100% efficiency (every second is used) Always round up (no partial workstations) Serves as a lower bound for our analysis

25. © Wiley 2007 Layout Calculations (continued) Step 5: Assign tasks to workstations Start at the first station & choose the longest eligible task following precedence relationships Continue adding the longest eligible task that fits without going over the desired cycle time When no additional tasks can be added within the desired cycle time, begin assigning tasks to the next workstation until finished

26. © Wiley 2007 Last Layout Calculation Step 6: Compute efficiency and balance delay Efficiency (%) is the ratio of total productive time divided by total time Balance delay (%) is the amount by which the line falls short of 100%

27. © Wiley 2007 Other Product Layout Considerations Shape of the line (S, U, O, L): Share resources, enhance communication & visibility, impact location of loading & unloading Paced versus un-paced lines Paced lines use an automatically enforced cycle time Number of products produced Single Mixed-model lines

28. © Wiley 2007 Designing Hybrid Layouts One of the most popular hybrid layouts uses Group Technology (GT) and a cellular layout GT has the advantage of bringing the efficiencies of a product layout to a process layout environment

29. © Wiley 2007 Process Flows before the Use of GT Cells

30. © Wiley 2007 Process Flows after the Use of GT Cells

31. © Wiley 2007 Facility Layout Across the Organization Layout planning is organizationally important for an efficient operations Marketing is affected by layout especially when clients come to the site Human resources is affected as layout impacts people Finance is involved as layout changes can be costly endeavors

32. © Wiley 2007 Chapter 10 Highlights Layout planning is deciding on the best physical arrangement of all resources that consumes space within a facility. Proper layout planning is highly important for the efficient running of a business. Otherwise, there can be much wasted time and energy, as well as confusion. There are four basic types of layouts: process, product, hybrid, and fixed position. Process layouts group resources based on similar processes. Product layouts arrange resources in straight-line fashion. Hybrid layouts combine elements of both process and product layouts. Fixed-position layouts occur when the product is larger and cannot be moved.

33. © Wiley 2007 Chapter 10 Highlights - continued Process layouts provide much flexibility and allow for the production of many products with differing characteristics. Product layouts, on the other hand, provide greater efficiency when producing one type of product. The steps for designing process layouts are (1) gather information about space needs, space availability, and closeness requirements of departments; (2) developing a block plan or schematic of the layout; and (3) developing a detailed layout.

34. © Wiley 2007 Chapter 10 Highlights - continued The steps for designing an product layout are (1) identify tasks that need to be performed and their immediate predecessors; (2) determine output rate; (3) determine cycle time; (4) computing the theoretical minimum number of work stations, (5) assigning tasks to workstations; and (6) computing efficiency and balance delay. Hybrids layouts have advantages over other layout types because they combine elements of both process and product layouts to increase efficiency.

35. © Wiley 2007 Chapter 10 Highlights - continued An example of hybrid layouts is group technology or cell layouts. Group technology is the process of crating groupings of products based on similar processing requirements. Cells are created for each grouping of products, resulting in a more orderly flow of products through the facility.

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