1. Definition: The physical positioning of processes, departments, equipment and work areas to optimize an organization’s effectiveness in achieving its operating objectives. Plant, Machine & Office Layout 1 2 3 4 5 1 2 3 4 5

2. Scheduled Inventory Traditional Production Layout Batch Production Lathe Stock Room Mill Scheduled Inventory Departments Organized by Function Inventory Banks Before/After Each Process Large Batch Sizes Equipment (e.g. Fork Trucks) Required to Move Material Resource(s) required to maintain Stock Room Lead Times are Long High Inventory Each Area Optimizes it's own Performance Processing Time is a Small % of Total Time

3. Traditional Layout Departmental Focus COMMON ACTIVITY C Entrance Exit 1 2 4 5 6 7 3 A A C C B B B D D D A

4. Traditional Process Flow 111 22 3 3 3 3 Complex Material Flow Complex Scheduling Required Large Inventories within System Long Lead Times Batch Operations High Cost to Manufacture

5. Traditional Production Layout Assembly Line Conveyor x x x x x x x x Work Paced by Conveyer Material Handling Reduced Individual Station Disruptions Accumulate High Capital Investment Low Flexibility to Satisfy Schedule Variations Usually Long Changeover Times

6. Traditional Production Layout "Process Flow" Continuous Flow Process ( i.e. Paint or Plating) Finished Goods Storage Raw/WIP Stock Room Raw Materials Stored Externally to Process Complicated Scheduling Fork Trucks Required to Move Material Material Moved Long Distances Resource(s) Required for Stock Rooms Packaging often done External to Dept. High Inventories Long Lead Times

7. Layout Waste Elimination Techniques Group Technology Point of Use Manufacturing Cell Technology

8. Layout Waste Elimination Techniques Grouping of Operations so that the End of One Operation is Located at the Start of the Next Operation Group Technology

9. Layout Waste Elimination Techniques Group Technology 1 2 1 2 1 2 33 3 3 Processes Grouped by Product Families Simplified Material Flow Simplified Scheduling Small Batch Sizes between Processes Shortened Lead Times Lower Cost to Manufacture

10. Layout Waste Elimination Techniques Point of Use Manufacturing Locate Feeder and User Operations Adjacent to Each Other at the Assembly Line or Manufacturing Cell. Conveyor x x x x x x x x Feeder Operation x

11. Layout Waste Elimination Techniques Operations are located so that one individual can produce the entire assembly - with multiple simple machines instead of one large machine. Cell Technology AB E C D F Entrance Exit Operator 1Operator 2

12. Flexibility to Increase/Decrease Number of Operators depending on Schedule No Fork Trucks, Dedicated Material Handlers or Stockrooms Required Eliminates Large Inventories between Operations Grouping Technology Reduces Product Variation Better Control of Quality between Operations Layout Waste Elimination Techniques Layout Using Manufacturing Cell Concept: AB E C D F Entrance Exit Operator 1Operator 2

13. “U” or other Shape for Equipment Layout; (1) Operator could produce entire Product Multiple Simple Machines; not One Large Machine Operators Know Every Job and Rotate between Jobs Vary Amount of Personnel within Cell to Match Schedule Requirements Layout Waste Elimination Techniques Cell Concept

14. Layout Waste Elimination Techniques Manufacturing Cells; Including a Monument Common Activity B C A A D E A B C A B D E B Operator A Operator B

15. LEAN ORGANIZATION CELLS MANY SHAPES AND SIZES Equal Sign Shaped U - Shaped S - Shaped A BCC C CDD P D C D C P DB C C B A A A

16. ISOLATED ISLANDS PRODUCT FOCUS SMOOTHER FLOW BALANCING DIFFICULT REALLOCATION DIFFICULT A B C 1 2 3 BIRD CAGE LESS WAITING INVENTORY INCREASES UN-BALANCED A A A 1 2 3 LEAN ORGANIZATION CELLS INTERIM STEPS

17. 12 3 4 5 18 17 16 15 14 13 12 6 7 8 9 10 11 1 2 3 98 7 6 5 4 part D part A 1 2 3 4 5 6 9 87 7 1 6 5 4 2 3 part B part E part C part F 34 5 6 7 8 1 2 1 10 2 9 8 7 13 4 5 6 6 PARTS LEAN ORGANIZATION CELLS COMBINED CELLS

18. 5 6 7 1 234 8 9 10 1112 13 14 15 161718 12 34 5 6 7 8 9 1 2 345 6 7 8 123 4 5 6 7 89 1 2 3 4 5 6 7 10 1 2 3 4 5 6 7 8 9 1 MINUTE CYCLE- 8 WORKERS LEAN ORGANIZATION CELLS COMBINED CELLS

19. 1.2 MINUTE CYCLE - 6 WORKERS 5 6 7 1 234 8 9 10 1112 13 14 15 161718 12 34 5 6 7 8 9 1 2 345 6 7 8 123 4 5 6 7 89 1 2 3 4 5 6 7 10 1 2 3 4 5 6 7 8 9 LEAN ORGANIZATION CELLS COMBINED CELLS

20. More Machines than People; Operators should Run More than One Machine. Keep Large Containers Out of Cell No Physical Barriers within Cell; e.g. Control Panels, Tool Boxes, etc. Arrange Machines Close Enough together to Allow Operators to Operate Machines on Both Sides of Cell. Operators Should Perform Material Handling between Machines; Minimum or Single Parts. U Cell Guidelines for Waste Elimination

21. 1st and Last Operation should be done by Same Operator (Where Feasible) OK for Operators to Walk between Stations (unless Excessive); Machines can wait on People Total Operator Work Content should not Equal 100 % of Demand Cycle Time to Allow for: –Material Handling –Preventative Maintenance –Changeovers U Cell Guidelines for Waste Elimination (Continued)

22. Eliminate Need for Function (Best Alternative) Combine Operations where possible (Next Best) – reduces inventory between processes – reduces excessive operator motions/ walking – enhances operator productivity Utilize Dedicated Equipment/Tools (where possible) Organize Operations by Product Flow Path (Group Technology) Incorporate Simple/Flexible Types of Equipment or Tooling Overall Layout Guidelines for Waste Elimination

23. Store Incoming Material at Point of Use. Design Containers to Fit Point of Use. Arrange Equipment so that Output of one Process is located at Input of Next Process. Design Layout for Standard Conditions; Don’t Institutionalize the Exceptions Overall Layout Guidelines for Waste Elimination -Continued

24. Locate End of Assembly Line at Shipping Docks. Receiving Shipping ASSEMBLYASSEMBLY FABRICATION Overall Layout Guidelines for Waste Elimination -Continued

25. Use Simple Automation with Minimum Material Handling Progression from Manual into Automation Simplify Consolidate Automate Overall Layout Guidelines for Waste Elimination -Continued

26. Plant, Machine & Office Layout Permits Immediate Feedback on Quality Problems Reduces Scrap and Obsolescence Saves Space and Investment in Material Handling and Capital Equipment Provides Greater Flexibility Eliminates Waste Improves Responsiveness to Customer Requirements Benefits