Traditional Approaches to Facility Layout Chapter 4 Source for some slides: John S. Usher class notes

Applications Manufacturing Healthcare Service Restaurants Banks Airports Entertainment Logistics and Distribution Ports/Terminals Distribution Centers

Types of Projects New Facility General Re-layout (retrofit) Expansion due to new product(s) Expansion due to sales growth in existing products Re-organization of work areas (evolutionary design) Outsourcing of logistics capability Addition of automation technology Problem elimination Cost reduction Product discontinuation

Significance of Facilities Planning 20-50% of all manufacturing costs are related to material handling FP can reduce MH costs by 10-30% Therefore… 2-15% reductions in overall manufacturing costs could be achieved by effective facilities planning. Annual productivity would increase 3x more than it has in the past 15 years. Hard to make similar projections to other areas of our economy FP continues to be one of the most promising fields

Objectives Minimize material handling costs Utilize space efficiently Utilize labor efficiently Eliminate bottlenecks Facilitate communication and interaction between workers, between workers and their supervisors, or between workers and customers Reduce manufacturing cycle time or customer service time

Objectives (continued) Eliminate waste or redundant movement Facilitate the entry, exit, and placement of material, products, or people Incorporate safety and security measures Promote product and service quality Encourage proper maintenance activities Provide a visual control of operations or activities Provide flexibility to adapt to changing conditions Increase capacity

The Nature of FP Objectives As you can see, there are MANY! They are conflicting. How? There are constraints. Can you list some?

The Facility Planning Problem It is a constrained multi-objective optimization problem with many non-quantifiable costs and benefits. There is NO OPTIMAL SOLUTION! The best we can hope for is a “GOOD” solution. Effective designs must consider all stakeholders Owners Customers Suppliers Employees Neighbors

Layout Problems Design or Optimization?

Facility Design Process Combination of art and engineering Many techniques available Muther’s SLP Approach (1973) Optimization based approaches We will focus on the latter

Systematic Layout Planning Phase I - Determination of the location of the area where departments are to be laid out Phase II - Establishing the general overall layout Phase III - Establishing detailed layout plans Phase IV - Installing the selected layout

Systematic Layout Planning Input Data and Activities 2. Activity Relationships ANALYZE 1. Flow of materials 3. Relationship Chart 4. Space Requirements 5. Space Available 6. Space Relationship Diagram SEARCH 7. Modifying Considerations 8. Practical Limitations 9. Develop Layout Alternatives SELECT 10. Evaluation Source: John S. Usher class notes

Systematic Layout Planning P Product: Types of products to be produced Q Quantity: Volume of each part type R Routing: Operation sequence for each part type S Services: Support services, locker rooms, inspection stations, and so on T Timing: When are the part types to be produced ? What machines will be used during this time period?

Sample relationship diagram

SLP

SLP

Special Considerations in Office Layout Minimizing distance traveled by employees Permitting flexibility so that the current layout can be changed, expanded or downsized easily Providing a safe and pleasant atmosphere for people to work in Minimizing capital and operational costs of the facility

Operations Review Is the company outgrowing available space? Is the available space too expensive? Is the current building not in the proper location? How will a new office layout affect the organization? Are office operations too centralized or decentralized? Does the office structure support the strategic plan? Is the office layout in tune with the company's image?

Aesthetics

Aesthetics

Aesthetics

Aesthetics

Aesthetics

Aesthetics

Aesthetics

Aesthetics

Aesthetics

Cubicles layout

Cubicles layout

Iowa State DOT layout

Albany International Airport layout

Operations Review for MortAmerica, Inc. Is there a significant increase in mortgage lending operations of MortAmerica, Inc.? Are the costs of leasing and refurbishing interior space too high? Is there a problem with the current location? For example: There is not enough space for expansion Major attorneys’ offices, other related financial institutions and restaurants, are not located within a reasonable distance of MortAmerica, Inc. Adequate parking space is not available Traffic is too congested Will a change in office location improve business?

SLP for MortAmerica, Inc. Evaluation Planning Site selection Design and layout

SLP for MortAmerica, Inc. Review current space utilization Determine space projections Determine level of interaction between departments Identifying special consideration

Current and Future Space Requirements

Current and Future Space Requirements Support service area Current net space Current gross space150% of net space Future net space Future gross space 150% of net space Copying/Printing Area (C/P) 300 450 465 700 File Storage Room (FS) 80 120 Customer Waiting Lounge (CW) 800 1200 Conference Rooms (CR) 500 750 1000 1500 Employee Break Room (EBR) 200 850 1275 Rest Rooms (RR) Total 1800 2700 3695 5545

Relationship diagram for MortAmerica, Inc.

Activity relationship diagram for MortAmerica, Inc.

Space relationship diagram for MortAmerica, Inc.

Pre-architectural layout for MortAmerica, Inc.

Engineering design approach

OSHA, ADA and Local Codes

OSHA, ADA and Local Codes

OSHA ADA and Local Codes