1. Facility Layout Chapter 10 pages 345-349, 359-360, 367-368

2. MGMT 326 Foundations of Operations Introduction Strategy Managing Projects Quality Assurance Facilities Products & Processes Product Design Process Design Managing Quality Statistical Process Control Just-in-Time & Lean Systems Facility Layout Facility Location Planning & Control Managing Inventory Linear Program- ming

3. Presentation Outline Importance of layout planning Process and product layouts Office layouts Designing cellular layouts

4. What Is Layout Planning? Layout planning is determining the best physical arrangement of resources within a facility Most facilities use either a product or a process layout

5. Why is layout planning important? Eliminates unnecessary costs for space and materials handling Reduces work-in-process inventory Products goods and services faster Reduces distances that workers must travel in the workplace Improves communication and morale Increases retail sales Improves brand image

6. Types of Layouts Process layouts: Group similar resources together Product layouts:Designed to produce a specific product, or a small number of products efficiently Hybrid layouts:Combine aspects of both process and product layouts Example: cellular manufacturing Fixed-Position layouts: Product is too large to move Examples: building construction, shipyard Resources must be brought to where they are needed

7. Process and Product Layouts

8. Process Layouts Used in project and batch manufacturing (intermittent processes) Also used in department stores, offices, hospitals, and universities Able to make or sell a variety of products Use general purpose resources Less automation than in product layouts

9. Process Layouts (2) Material handling costs per unit are higher than in product layouts Scheduling production is more complex than in product layouts

10. Product Layouts Used in assembly lines and continuous manufacturing (repetitive processes) A cafeteria line is a product layout In manufacturing, product layouts are used to produce one product, or a small group of products, efficiently Uses special purpose resources More automation than in process layouts

11. Product Layouts (2) Material handling costs per unit are lower than in process layouts Scheduling production is simpler than in process layouts

12. Office Layouts Almost half the U. S. work force works in an office Human interaction and communication are the primary considerations in office layouts People who need to interact frequently should be close to each other One key layout tradeoff is between closeness and privacy

13. Office Layouts (2) Open concept offices promote understanding and trust. A few closed rooms are needed for private discussions, such as personnel matters. Moveable walls provide flexibility to change the layout when needed.

14. Office Layout Example 3D Systems Hi-tech company – provides equipment and materials for rapid product design and manufacturing Rock Hill headquarters handles product design, sales, training, and administration Open office plan Conference room Areas for informal meetings Product showroom for customers Cyber café and fitness center for employees

15. Designing Cellular Layouts Group technology is used to organize parts into families with similar manufacturing requirements.

16. Process Flows before the Use of GT Cells

17. Process Flows with the Use of GT Cells Cellular manufacturing is: More efficient than a process layout More flexible than a product layout Used to produce parts in Just-in-Time manufacturing