1. Facility Layout Chapter 10 pages 343-355, 358-360, 366-367

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 Capacity and Location Planning & Control

3. Presentation Outline Importance of layout planning Types of layouts Comparing process and product layouts Designing process layouts Designing product layouts Designing cellular layouts Office layouts

4. What Is Layout Planning? Layout planning is determining the best physical arrangement of resources within a facility

5. Why is layout planning important? Eliminates unnecessary costs for space and materials handling Reduces work-in-process inventory Produces 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 Examples: cellular layout, grocery store 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. 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 2 approaches Relationship (REL) chart From-to matrix Can use both Decision support systems are heuristic methods Usually give a "good" solution Solution may not be optimal (best solution)

13. Designing Process Layouts (2) 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 computer-assisted design (CAD) software are often used

14. Process Layout Example Block layout for a sports medicine clinic A Radiology B Laboratory C Lobby & Waiting D Examining Rooms E Surgery & Recovery F Physical Therapy

15. Process Layout Example (2)

16. Process Layout Example (3)

17. Proposed Layout Process Layout Example (4) A Radiology B Examining Rooms C Lobby & Waiting D Surgery & Recovery E Laboratory F Physical Therapy

18. Process Layout Example (5)

19. Designing Product Layouts Objectives Produce the required number of units to meet demand Cycle time = maximum work station time that will meet demand Use workers and equipment efficiently High utilization of workers and equipment Balance workload among employees

20. Designing Product Layouts (2) Based on a precedence diagram Assign tasks to work stations Assign work stations to locations

21. Assigning Tasks to Work Stations Given: Complete 1 Pizza Every 60 Seconds Assign Tasks to Work Stations Work station 1: A, B50 + 5 = 55 seconds Work station 2: C, D, G25 + 15 + 15 = 55 seconds Work station 3: E, F, H, I12 + 10 + 18 + 15 = 55 sec. Precedence Diagram Layout: WS 1WS 2WS 3

22. Cellular Layouts Used to make parts in Just-in-Time Manufacturing Based on group technology Group technology (GT): A method of organizing parts into families with similar manufacturing requirements A manufacturing cell is created for each part family

23. An Example of Group Technology

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

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

26. 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

27. 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.

28. 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