1. Facility Layout
Chapter 10
pages , ,

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

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

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
Example: cellular layout
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. Process Layout Example (4)
Proposed Layout 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
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. 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

22. 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.

23. 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