9 Layout Strategies PowerPoint presentation to accompany Heizer and Render Operations Management, Eleventh Edition Principles of Operations Management, Ninth Edition PowerPoint slides by Jeff Heyl © 2014 Pearson Education, Inc.

Outline Strategic Importance of Layout Decisions Types of Layout Fixed-Position Layout Process-Oriented Layout Product-Oriented Layout Use Line Balance Analysis for Product Layout

Strategic Importance of Layout Decisions TURNING MACHINE MILLING DRILLING INDUCTION HARDENING GRINDING

Strategic Importance of Layout Decisions Layout refers to the specific configuration of physical facilities in an organization. Objective of layout strategy is to develop an effective and efficient layout that will meet the firm’s competitive requirements.

Layout Design Considerations Higher utilization of space, equipment, and people Improved flow of information, materials, or people Improved employee morale and safer working conditions Improved customer/client interaction Flexibility

Types of Layout Fixed-position layout Process-oriented layout Product-oriented layout

Fixed-Position Layout Deal with large, bulky projects, e.g., ship & building Product remains in one place Workers and equipment come to site Complicating factors Limited space at site Different materials required at different stages of the project Volume of materials needed is dynamic

Fixed-Position Layout As much of the project as possible is completed off-site in a product-oriented facility This can significantly improve efficiency but is only possible when multiple similar units need to be created

Process-Oriented Layout Similar machines and equipment are grouped together To deal with low-volume, high-variety production Each product / service undergoes a different sequence of operations Example: Job shop

Process-Oriented Layout M D G A Receiving and Shipping Assembly Painting Department Lathe Department Milling Department Drilling Department Grinding P

Process-Oriented Layout Surgery Radiology ER triage room ER Beds Pharmacy Emergency room admissions Billing/exit Laboratories Patient A - broken leg Patient B - erratic heart pacemaker Figure 9.3

Product-Oriented Layout Organized around products or families of similar high-volume, low-variety products Volume is adequate for high equipment utilization Product demand is stable enough to justify high investment in specialized equipment Product is standardized or approaching a phase of life cycle that justifies investment Supplies of raw materials and components are adequate and of uniform quality Repetitive or continuous process

Product-Oriented Layout

Product-Oriented Layout Cafeteria serving Line

Line balance in product-oriented layout

Line Balancing in Product Layouts Central problem in product layout is to balance the output at each work station along the production line Line Balancing is the process of assigning tasks to workstations in such a way that the workstations have approximately equal time requirements

Total work time available General Procedure for Line Balancing Determine precedence relationships Calculate Takt time = Determine minimum number of work stations = Determine the candidate list which includes the following tasks The task whose immediate predecessors have been assigned to a workstation The task for which adequate time is available at the work station Decision rule: task with the longest processing time Determine efficiency = Total work time available Units required

Line Balancing (Example 1) There are 240 productive minutes available per day. The production schedule requires to complete 600 units each day. Arrange the work activities into workstations so as to balance the assembly line. Task Immediate Predecessor Time (Min) A Press out sheet of fruit — 0.1 B Cut into strips A 0.2 C Outline fun shapes A 0.4 D Roll up and package B, C 0.3 0.1 0.2 0.4 0.3 D B C A

Line Balancing (Example 1) There are 240 productive minutes available per day. The production schedule requires to complete 600 units each day. Arrange the work activities into workstations so as to balance the assembly line. Task Immediate Predecessor Time (Min) A Press out sheet of fruit — 0.1 B Cut into strips A 0.2 C Outline fun shapes A 0.4 D Roll up and package B, C 0.3 Takt time = = = 0.4 min/unit Production time available per day Output needed per day 240 600 Round up

Line Balancing (Example 1) 0.2 D B C A Takt time = 0.4 min/unit 0.3 0.1 0.4 Station Candidate Task Task Total Idle Number list assigned time time time 1 A A 0.1 0.1 0.3 B B 0.2 0.3 0.1 2 C C 0.4 0.4 0 3 D D 0.3 0.3 0.1

Line Balancing (Example 1) A, B C D Work station 1 Work station 2 Work station 3 0.3 minute 0.4 minute Efficiency = Total task times (# of actual workstations) x Takt time = 83.33% = 0.1 + 0.2 + 0.4 + 0.3 (3 stations) x (0.4 minutes)

Line Balancing (Example 2) (1) Draw a precedence diagram for the assembly line Performance Time Immediate Task (minutes) predecessor A 5 — B 3 A C 4 B D 3 B E 4 C F 1 C G 4 D, E, F H 7 G Total time 31 E 4 C 4 F 1 A 5 B 3 G 4 H 7 D 3

Line Balancing (Example 2) (2) Assuming 500 productive minutes available per day, compute the takt time needed to obtain an output of 65 units per day. Takt time = Production time available per day output required per day = 500 / 65 = 7.7 minutes per unit

E C F A B G H D 4 4 1 5 3 4 7 3 Takt time = 7.7 min/unit Station Candidate Task Task Total Idle Number list assigned time time time 1 A A 5 5 2.7 2 B B 3 3 4.7 C, D C 4 7 0.7 3 D, E, F E 4 4 3.7 D, F D 3 7 0.7 4 F F 1 1 6.7 G G 4 5 2.7 5 H H 7 7 0.7

Line Balancing (Example 2) Work station 1 Work station 2 Work station 3 Work station 4 Work station 5 A B,C D, E G, F H 5 minute 7 minute 7 minute 5 minute 7 minute Efficiency = Total task times (# of actual workstations) x Takt time = 80.52% = 31 minutes (5 stations) x (7.7 minutes)

EX 1 in Class Balance the assembly line for the Tourist T-Shirt Company. The operations run continuously for 8 hours per day. Each day, 80 T-shirts must be produced to meet customer demand.

Immediate predecessor EX 2 in Class The assembly of Noname personal computers, a generic mail-order PC clone, requires a total of 12 tasks, and the job times (in minutes) along with the precedence relationships are summarized in the table. Suppose that the company is willing to hire enough workers to produce one assembled machine every 18 minutes. Perform a line balancing analysis. Task Processing time Immediate predecessor A 12 - B 6 C D 2 E 3 F G 7 C, D H 5 I 4 J F, I K H, J L Total 74

Summary Fixed-position layout: Addresses the layout requirements of large, bulky projects such as ships and buildings Process-oriented layout: Deals with low- volume, high-variety production (also called job shop or intermittent production) Product-oriented layout: Seeks the best personnel and machine utilizations in repetitive or continuous production