1. Facility Layout Planning
Introduction.
Objectives of Plant Layout.
Factors affecting Plant Layout.
Types of Plant Layout.
Plant Layout for a Service business.
Plant Layout for a Warehouse.

2. Facility Layout Planning
Introduction
Objectives
Factors Affecting Layout Selection and Design
Types of Plant Layout
Product Layout
Process Layout
Cell Layout
Layout for Services

3. Introduction
Plant layout planning includes decisions regarding the physical allocation of the economic activity centers in a facility.
An economic activity center is any entity occupying space.
The objective of plant layout planning is a more effective work flow at the facility, allowing workers and equipment being more productive.
Facility layout techniques apply to the case where several physical means have to be located in a certain area, either industrial processes or services.
The objective of the chapter is not only Plant layout but re-layout also (most common situation for a company).
To carry out an appropriate plant layout, it’s important to take into account the business strategic and tactical objectives
Example: space requirements/cost per m2 in Malls; accessibility/privacy in offices.

4. Introduction
To make a decision about layout planning, 4 different questions must have an answer:
Which centers do we have to consider?
How much space and capacity is required for each center?
If there is not enough space, productivity may be reduced.
Too much space is expensive and may also reduce productivity.
How must the space be configured at each center?
Space quantity, shape and the elements of the work center are related to each other.
Where should each center be located at within the facility?
The allocation of the different centers may affect productivity.

5. Introduction
The plant layout process starts at an aggregate level, taking into account the different departments. As soon as we get into the details, the different issues arise, and the original configuration may be changed through a feedback process.
Most (if not all of them) layouts are designed properly for the initial conditions of the business, although as long as the company grows and has to be adapted to internal and external changes, a re-layout is necessary.

6. Introduction
The reasons for a re-layout are based on 3 types of changes:
Changes in production volumes.
Changes in processes and technology.
Changes in the product.
The frequency of the re-layout will depend on the requirements of the process.

7. Introduction
Symptoms that allow us to detect the need for a re-layout:
Congestion and bad utilization of space.
Excessive stock in process at the facility.
Long distances in the work flow process.
Simultaneous bottle necks and workstations with idle time.
Qualified workers carrying out too many simple operations.
Labor anxiety and discomfort. Accidents at the facility.
Difficulty in controlling operations and personnel.

8. Lay Out Introduction Objectives
Factors Affecting Layout Selection and Design
Types of Plant Layout
Product Layout
Process Layout
Layout for Services

9. Facility Layout Definition
A facility layout is an arrangement of everything needed for production of goods or delivery of services. A facility is an entity that facilitates the performance of any job. It may be a machine tool, a work centre, a manufacturing cell, a machine shop, a department, a warehouse, etc. (Heragu, 1997).
Product
Layouts
Fixed
Position
Mixed Layouts
Process Layouts
Quantity
Number of Different Products
The layout design generally depends on the products variety and the production volumes. Four types of organization are referred to, namely fixed product layout, process layout, product layout and cellular layout (Dilworth, 1996).

10. Objectives of Plant Layout
The main objective consists of organizing equipment and working areas in the most efficient way, and at the same time satisfactory and safe for the personnel doing the work.
Sense of Unity
The feeling of being a unit pursuing the same objective.
Minimum Movement of people, material and resources.
Safety
In the movement of materials and personnel work flow.
Flexibility
In designing the plant layout taking into account the changes over short and medium terms in the production process and manufacturing volumes.

11. Objectives of Plant Layout
These main objectives are reached through the attainment of the following facts:
Congestion reduction.
Elimination of unnecessary occupied areas.
Reduction of administrative and indirect work.
Improvement on control and supervision.
Better adjustment to changing conditions.
Better utilization of the workforce, equipment and services.
Reduction of material handling activities and stock in process.
Reduction on parts and quality risks.
Reduction on health risks and increase on workers safety.
Moral and workers satisfaction increase.
Reduction on delays and manufacturing time, as well as increase in production capacity.
All these factors will not be reached simultaneosly, so the best solution will be a balance among them.

12. Lay Out Introduction Objectives
Factors Affecting Layout Selection and Design
Types of Plant Layout
Product Layout
Process Layout
Layout for Services

13. Factors affecting Plant Layout
The final solution for a Plant Layout has to take into account a balance among the characteristics and considerations of all factors affecting plant layout, in order to get the maximum advantages.
The factors affecting plant layout can be grouped into 8 categories:
Materials
Machinery
Labor
Material Handling
Waiting Time
Auxiliary Services
The building
Future Changes

14. Factors affecting Plant Layout
The factors affecting plant layout can be grouped into 8 categories:
Materials
The layout of the productive equipment will depend on the characteristics of the product to be managed at the facility, as well as the different parts and materials to work on.
Main factors to be considered: size, shape, volume, weight, and the physical-chemical characteristics, since they influence the manufacturing methods and storage and material handling processes.
The sequence and order of the operations will affect plant layout as well, taking into account the variety and quantity to produce.

15. Factors affecting Plant Layout
The factors affecting plant layout can be grouped into 8 categories:
Machinery
Having information about the processes, machinery, tools and necessary equipment, as well as their use and requirements is essential to design a correct layout.
The methods and time studies to improve the processes are closely linked to the plant layout.
Regarding machinery, we have to consider the type, total available for each type, as well as type and quantity of tools and equipment.
It’s essential as well to know about space required, shape, height, weight, quantity and type of workers required, risks for the personnel, requirements of auxiliary services, etc.

16. Factors affecting Plant Layout
The factors affecting plant layout can be grouped into 8 categories:
Labor
Labor has to be organized in the production process (direct labor, supervision and auxiliary services).
Environment considerations: employees’ safety, light conditions, ventilation, temperature, noise, etc.
Process considerations: personnel qualifications, flexibility, number of workers required at a given time as well as the type of work to be performed by them.
Material Handling
Material handling does not add value to the product; it’s just waste.
Objective: Minimize material handling as well as combining with other operations when possible, eliminating unnecessary and costly movements.

17. Factors affecting Plant Layout
The factors affecting plant layout can be grouped into 8 categories:
Labor
Labor has to be organized in the production process (direct labor, supervision and auxiliary services).
Environment considerations: employees’ safety, light conditions, ventilation, temperature, noise, etc.
Process considerations: personnel qualifications, flexibility, number of workers required at a given time as well as the type of work to be performed by them.
Material Handling
Material handling does not add value to the product; it’s just waste.
Objective: Minimize material handling as well as combining with other operations when possible, eliminating unnecessary and costly movements.

18. Factors affecting Plant Layout
The factors affecting plant layout can be grouped into 8 categories:
Waiting time - Stock
Objective: Continuous Material Flow through the facility, avoiding the cost of waiting time and demurrages that happen when the flow stops.
On the other hand, the material waiting to flow through the facility not always represents a cost to avoid. As stock sometimes provides safety to protect production, improving customer service, allowing more economic batches, etc.
It’s necessary then to consider space for the required stock at the facility when designing the layout.
Resting time to cool down or heating up…

19. Factors affecting Plant Layout
The factors affecting plant layout can be grouped into 8 categories:
Auxiliary Services
Support the main production activities at the plant:
Related to labor: Accessibility paths, fire protection installations, supervision, safety, etc.
Related to material: quality control.
Related to machinery: maintenance and electrical and water lines.
The auxiliary services represent around 30% of the space at a facility.
The space dedicated to auxiliary services is usually considered as waste.
It’s important to have efficient services to insure that their indirect costs have been minimized.

20. Factors affecting Plant Layout
The factors affecting plant layout can be grouped into 8 categories:
The building
If it has been already selected, its characteristics will be a constraint at the moment of designing the layout, which is different if the building has to be built.
Future changes
One of the main objectives of plant layout is flexibility.
It’s important to forecast the future changes to avoid having an inefficient plant layout in a short term.
Flexibility can be reached keeping the original layout as free as possible regarding fixed characteristics, allowing the adjustment to emergencies and variations of the normal process activities.
Possible future extensions of the facility must be taken into account, as well as the feasibility of production during re-layout.

21. Lay Out Introduction Objectives
Factors Affecting Layout Selection and Design
Types of Plant Layout
Product Layout
Process Layout
Layout for Services

22. Types of Plant Layout
The production process normally determines the type of plant layout to be applied to the facility:
Fixed position plant layout
Product stays and resources move to it.
Product oriented plant layout
Machinery and Materials are placed following the product path.
Process oriented plant layout (Functional Layout).
Machinery is placed according to what they do and materials go to them.
Cell Layout
Hybrid Layout that tries to take advantage of different layouts types.
In Fixed product layout, the products generally circulate within the production facilities (machines, workers, etc.); in this particular type of layout, the product does not move, it is the different resources that are moved to perform the operations on the product. This type of layout is commonly found in industries that manufacture large size products, such as ships or aircrafts. Process layout groups facilities with similar functions together (resources of the same type). This organization is often reported to be suited when there is a wide variety of product. Product layout is used for systems with high production volumes and a low variety of products. Facilities are organized according to the sequence of the successive manufacturing operations. In Cellular layout, machines are grouped into cells, to process families of similar parts. These cells also need to be placed on the factory floor. Therefore, one is also generally concerned with so called intra cells machine layout problems, as mentioned for example in (Proth, 1992, ch. 3) and (Hamann & Vernadat, 1992). Here, one is concerned with finding the best arrangement of machines in each cell.

23. Product Oriented LayOut
Espuela de Ferrocarril
Camiones
Camiones

24. Types of Plant Layout Product oriented plant layout
This type of plant layout is useful when the production process is organized in a continuous or repetitive way.
Continuous flow: The correct operations flow is reached through the layout design and the equipment and machinery specifications.
Repetitive flow (assembly line): The correct operations flow will be based in a line balancing exercise, in order to avoid problems generated by bottle necks.
The plant layout will be based in allocating a machine as close as possible to the next one in line, in the correct sequence to manufacture the product.

25. Types of Plant Layout Product oriented plant layout Advantages:
Reduced material handling activities.
Work In Process almost eliminated.
Minimum manufacturing time.
Simplification of the production planning and control systems.
Tasks simplification.
Disadvantages:
No flexibility in the production process.
Low flexibility in the manufacturing times.
High capital investment.
Every workstation is critical to the process.- The lack of personnel or shut down of a machine stops the whole process.
Monotonous work.

27. Process layout Espuela de Ferrocarril Planeación Fresadoras Recepción
Almacén
Materia Prima
Planeación
Maquinaria
Automática
Tornos
Esmeriladoras
Inspección
Ensamble
Producto
Acabado
Embarque
Camiones
Camiones

28. Types of Plant Layout
Process oriented plant layout (Functional Layout)
This type of plant layout is useful when the production process is organized in batches.
Personnel and equipment to perform the same function are allocated in the same area.
The different items have to move from one area to another one, according to the sequence of operations previously established.
The variety of products to produce will lead to a diversity of flows through the facility.
The variations in the production volumes from one period to the next one (short periods of time) may lead to modifications in the manufactured quantities as well as the types of products to be produced.

29. Chart relationship (flow, functional)
P-Q Analysis
Definition
Diagram activity relationships
Product
Flow
Chart relationship (flow, functional)
Establish space requirements
Space Availability
Analysis
Diagram space relationships
Maintenance QC
Mat. Handling
Adjustment
Synthesis
Practical Limitations
Space Availability
Project Project Project
A B C
Evaluation
Evaluate alternative arrangements
Selection
Detail selected layout, install
SLP Method
Muther (1973)
INSTALACION
Implementation

30. Cellular Layout Process (Functional) Layout Group (Cellular) Layout
A cluster or cell T M SG CG D T CG SG M D
Similar resources placed together
Resources to produce similar products placed together

31. Types of Plant Layout Work cells Definition:
Group of equipment and workers that perform a sequence of operations over multiple units of an item or family of items.
Looks for the advantages of product and process layouts:
Product oriented layout: Efficiency
Process oriented layout: Flexibility
Group Technology
Grouping outputs with the same characteristics to families, and assigning groups of machines and workers for the production of each family.

32. Lay Out Introduction Objectives
Factors Affecting Layout Selection and Design
Types of Plant Layout
Product Layout
Process Layout
Layout for Services

33. Plant Layout for a Service Business
Most of the concepts and techniques explained here can be applied to any plant layout, including services.
Examples: Line Balancing for Restaurant self-services; Process oriented layout for Hospitals.
Service Businesses have a more direct customer focus:
Sometimes, the customer is required at the facility for the company to be able to perform the service.
Frequently, the layout is focused on the customer satisfaction than on the operation itself.
Some of the objectives include comfortability during the performance of the service, as well as making attractive those areas in direct contact with the customer.

34. Plant Layout for a Service Business
Service Businesses have a more direct customer focus:
The customer, with his/her presence, creates the work flow.
The workload forecast and the activities planning is not as accurate as it is in a manufacturing environment.
Queues:
Seasonal and heterogeneous demand: execution time can be variable.
Services are intangible: adjustment between demand and production can not be done through inventory management.
Queues are formed by people: higher implications for the layout.

35. Plant Layout for a Service Business
Plant layout for an office:
The material that flows among departments and workstations is basically information. This can be done through:
Individual conversations face to face.
Individual conversations through telephone or computer.
Mail and other physical documents.
Electronic mail.
Meetings and discussion groups.
Interphones.
The layout solution is dictated by workers and physical documentation movements.

36. Plant Layout for a Service Business
Plant layout for a commerce:
Objective: Maximize the net benefit per m2 of shelves.
If sales are directly related to the exposition of products to the customer, the objective will consist of exposing as many products as possible to the customers in the available space.
This has to take into account to leave enough space for the movement among shelves, not making the layout uncomfortable for the customer.
Aspects:
Allocation of daily consumption products at the periphery.- Allocation of impulsive purchase and high profit margin products in prominent places.
Eliminate aisles that allow the customers to go from one row to other without going through them completely.

37. Plant Layout for a Service Business
Plant layout for a commerce:
Aspects:
Global organization of the available space:
Allocation of attraction products on both sides of a row, and dispersion of them to increase the exposition of adjacent products.
Use the end of a row as a place for exposition.
Creation of the business image through a careful selection of the first section where the customers are getting into the facility.
Allocation of products in the exposition areas:
This aspect remains within the commercial function. It is called merchandising.

38. Cafetería Cafetería Three Retail Layout Patterns Grid
Rectangular with parallel aisles; formal; controls traffic flow; uses selling space efficiently.
Free-Form
Free-flowing; informal; creates "friendly" environment; flexible.
Boutique
Divides store into a series of individual shopping areas, each with its own theme; unique shopping environment.
Cafetería

39. Plant Layout for a Warehouse
Objective: Optimal relationship between space and material handling costs.
Aspects to be considered: cubic space utilization, storing equipment and methods, material protection, allocation of different parts, etc.
A warehouse layout is more complicated when:
The different customer orders take into account a high number of references.
There are frequent orders of low number of units for the same product.
In this cases, the material handling costs for each roundtrip move would be excessively high.
Solutions for this problem: Aggregation of units for several orders, or establishment of optimal routes for each order.
Click to add title
Zones
Control station
Shipping doors
Tractor trailer
Overflow
Feeder lines

40. Lay Out Introduction Objectives
Factors Affecting Layout Selection and Design
Types of Plant Layout
Product Layout
Process Layout
Layout for Services

41. Systematic Layout Planning

42. Chart relationship (flow, functional)
P-Q Analysis
Definition
Diagram activity relationships
Product
Flow
Chart relationship (flow, functional)
Establish space requirements
Space Availability
Analysis
Diagram space relationships
Maintenance QC
Mat. Handling
Adjustment
Synthesis
Practical Limitations
Space Availability
Project Project Project
A B C
Evaluation
Evaluate alternative arrangements
Selection
Detail selected layout, install
SLP Method
Muther (1973)
INSTALACION
Implementation

43. Types of Plant Layout Process oriented plant layout Analysis
It’s essential to design a flexible plant layout, taking into account as well the need of flexibility for the material handling equipment to be used.
Main disadvantage of this layout:
Low operations and material handling efficiency when comparing to a plant layout oriented to the product.
On the other hand, technology development is facilitating getting over this disadvantage (i.e.- CNC Equipment).
Analysis
Decision to be made: Relative location of the different working areas (same type of equipment).
Criteria: reduction of distance and material handling costs: Increase of operations efficiency.

44. Types of Plant Layout Process oriented plant layout Analysis
If it exists a clear material flow that carries out more volume than anyone else, the layout could be similar to a Product oriented plant layout.
The main factor for the analysis is the material handling and transportation costs among the different working areas.
Sometimes, quantitative information relative to material handling flows is not available, or it’s not the main factor to be considered, being the qualitative factors the most important ones in this case.

45. Types of Plant Layout Process oriented plant layout Analysis Process:
Information gathering.
Plan development.
Quantitative criteria: transportation costs.
Qualitative criteria: closeness priorities.
Information gathering
We have to know the space requirements by working area.
Demand forecast – production plan – working hours – number of workers and equipment.
Consider demand and production fluctuations.

46. n=number of accessible sides k=industry coefficient (0,05-3)
Types of Plant Layout
Process oriented plant layout
Analysis
Information gathering
Working area space.
Static area (Se): Physical space for equipment and workstations.
Gravitation area (Sg): Allocation of tools and materials. Area where operators develop their work.
Evolution area (Sv): Space to allow operators and material movements.
St=Se+Sg+Sv
Sg=Se*n Sv=(Se+Sg)*k
n=number of accessible sides k=industry coefficient (0,05-3)

47. Types of Plant Layout Process oriented plant layout Analysis
Information gathering
Available space.
Total available area at the plant.
Divide the area at a first approach to estimate each section.
When performing the detailed layout, it’s required to have more accurate shapes adjusted to the reality.
When the objective is the reduction of material handling costs, we can solve the problem in quantitative terms:
It’s required to know the material flow among departments or areas, distances among them and means of transportation.

48. Types of Plant Layout Process oriented plant layout Analysis
Information gathering
When the objective is the reduction of material handling costs, we can solve the problem in quantitative terms:
Traffic intensity matrix: Number of material handling moves among departments (information provided by historical data, route sheets and production plans).
Distance matrix: Distances among areas at the plant and places where the different working areas could be allocated.
Cost matrix: Cost of material transportation.- It depends on the type of equipment to be used.

49. Types of Plant Layout Process oriented plant layout Analysis
Information gathering
Sometimes, quantitative information is not available, or the importance of distance among areas depends on qualitative factors (i.e.- a hospital X-ray room may be close to the trauma medicine room).
Plan development
Once the size of the different areas have been determined, the next step is to organize the different areas within the existent facility, or to determine the desired shape for the facility construction.
There are multiple possible solutions, so the selected one will be the a good one that complies with the max. number of constraints.

50. Number of Different Products
P-Q Analysis
Quantity
Product
Layouts
Fixed
Position
Layouts
Mixed Layouts
Process Layouts
Number of Different Products

52. Types of Plant Layout Process oriented plant layout Analysis
Quantitative criteria: Transportation costs.
With the information gathered in the previous 3 matrixes, the objective is to minimize the transportation costs.
Total Transportation Cost:
Objective: Finding the combination of dij that minimizes TTC.
This formula is complicated for common cases, due to the number of different possibilities (i.e.- for 10 sections, the alternatives would be 3,628,000).
TTC= ΣΣ tij dij cij

53. Number of permutations =(n*(n-1))/2
Types of Plant Layout
Process oriented plant layout
Analysis
Quantitative criteria: Transportation costs.
Use of heuristics: Algorithm of basic transposition
Initial arbitrary layout: base permutation.
Transportation cost calculation for this layout.
Generation of all possible permutations among activities, interchanging the ones in the initial arbitrary layout 2 to 2:
Transportation cost calculation for each of the generated permutations: If we get one with a lower cost than the base, this last one becomes the base permutation and the process starts again until there is no one with a lower cost.
Number of permutations =(n*(n-1))/2

54. Types of Plant Layout Process oriented plant layout Analysis
Quantitative criteria: Transportation costs.
In practice, we have to take into account certain constraints and circumstances that have to be considered, apart from the quantitative criteria of the transportation costs.
Once this information is taken into account, the next step will be to perform the spatial design of the different departments.

55. Types of Plant Layout Process oriented plant layout Analysis
Qualitative criteria: Closeness priorities.
Technique: Systematic Layout Planning (SLP)
Closeness priorities have a letter code:

56. Types of Plant Layout Process oriented plant layout Analysis
Qualitative criteria: Closeness priorities.
Technique: Systematic Layout Planning (SLP): Example.

57. Types of Plant Layout Process oriented plant layout Analysis
Qualitative criteria: Closeness priorities.
Technique: Systematic Layout Planning (SLP): Example. S3 S1 S2 S4 S5 S6
Initial Diagram

58. Types of Plant Layout Process oriented plant layout Analysis
Qualitative criteria: Closeness priorities.
Technique: Systematic Layout Planning (SLP): Example. S2 S1 S3 S5 S6 S4
First iteration

59. Second iteration (might be the optimum)
Types of Plant Layout
Process oriented plant layout
Analysis
Qualitative criteria: Closeness priorities.
Technique: Systematic Layout Planning (SLP): Example. S1 S3 S4 S2 S6 S5
Second iteration (might be the optimum)

60. Types of Plant Layout Process oriented plant layout Detailed layout
Equipment and machinery layout within each area or department, getting a detailed layout of installations and all elements.
There could appear some issues like scales, elevators, columns, floor resistance, roof height, etc. not considered in previous stages, that could make necessary the review of the solution.

61. Cellular Layout

62. Types of Plant Layout Work cells Definition:
Group of equipment and workers that perform a sequence of operations over multiple units of an item or family of items.
Looks for the advantages of product and process layouts:
Product oriented layout: Efficiency
Process oriented layout: Flexibility
Applies the principles of Groups’ Technology to Manufacturing:
Grouping outputs with the same characteristics to families, and assigning groups of machines and workers for the production of each family.

63. Types of Plant Layout Work cells
Applies the principles of Groups’ Technology to Manufacturing:
Sometimes, these outputs will be final products or services; some other times, they will need to integrate to a final product.
In this case, the work cells would need to be located close to the main production line, to facilitate the assembly of the component at the moment and place required.
Real Work Cells: the grouping of workers and equipment is a fact:
At the same time as identifying family of products and grouping of equipment, it’s essential to perform an internal layout of the cell (by product, by process or a combination of both…generally by product).

64. Types of Plant Layout Work cells
Applies the principles of Groups’ Technology to Manufacturing:
Virtual Work Cells: identifying and dedicating certain equipment to the production of certain families of outputs, but without grouping them physically within the cell:
The only issue is the identification of equipment and families of products, without performing an internal layout of the cell.
Residual Work Cells: only used when there is a specific item that has not been associated to any family, or a specialized equipment can not be included within a work cell due to its general use.
Advantages: lower production cost and better supply and customer service time.

65. Types of Plant Layout Work cells
Applies the principles of Groups’ Technology to Manufacturing:
Steps to follow:
Select product families.
Determine work cells.
Detail the work cells’ internal organization or layout.
Regarding product grouping to be produced at the same work cell, we need to determine which is the condition that allows such grouping.
Once product families are determined, creating a work cell for each family might be the best solution, although is not always like that (sometimes it’s even impossible).

66. Types of Plant Layout Work cells
Applies the principles of Groups’ Technology to Manufacturing:
Approaches used to identify families and work cells:
Classification and codification of all items to be manufactured, and comparison among them to define families. After that, it’s required to identify the cells and equipment to manufactured those families.
Creation of work cells by grouping of equipment. In this case, we still need to define the families.
Definition of families by similar manufacturing routes. Still pending the cells’ identification.
Simultaneous identification of families and cells, based on the similarity of products and their needs of equipment and vice versa.

67. Types of Plant Layout Work cells
Applies the principles of Groups’ Technology to Manufacturing:
A component that does not use all machines within its work cell can be accepted, as well as a machine that does not process all components in its group.
However, it’s essential to avoid that a component or machine interacts with other machine or component outside of its cell.
If it’s not possible avoid this situation, the solution will be duplicating the piece of equipment, or process the item in more than one cell.- Sometimes a residual cell might be needed to absorb a component like this or to include a general type of equipment that we can not duplicate.

68. Types of Plant Layout Work cells
Applies the principles of Groups’ Technology to Manufacturing:
In general, the steps to follow to reorganize the layout will be:
Incompatible equipment must be located in separate cells.
Each component should be produced only in 1 cell.
Each type of equipment should be located only in 1 cell.
Investment in duplicating equipment should be minimized.
The work cell should be limited to a reasonable size.