1. Chapter 10 – Facility Layout
Operations Management by
R. Dan Reid & Nada R. Sanders
3rd Edition © Wiley 2007
PowerPoint Presentation by R.B. Clough – UNH
M. E. Henrie - UAA
© Wiley 2007

2. Learning Objectives Define layout planning and its importance
Identify and describe different types of layouts
Compare process layouts & product layouts
Describe the steps involved in designing a process layout
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3. Learning Objectives - continued
Describe the steps involved in designing a product layout
Explain the advantages of hybrid layouts
Define the meaning of group technology (cell) layouts
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4. What Is Layout Planning
Layout planning is determining the best physical arrangement of resources within a facility
Facility resource arrangement can significantly affect productivity
Two broad categories of operations:
Intermittent processing systems – low volume of many different products
Continuous processing systems – high volume of a few standardized products
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5. Types of Layouts Four basic layout types consisting of;
Process layouts - Group similar resources together
Product layouts - Designed to produce a specific product efficiently
Hybrid layouts - Combine aspects of both process and product layouts
Fixed-Position layouts - Product is two large to move; e.g. a building
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6. Process Layouts Process layout unique characteristics include;
General purpose & flexible resources
Facilities are more labor intensive
Lower capital intensity & automation
Higher labor intensity
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7. Process Layouts - continued
Processing rates are slower
Material handling costs are higher
Scheduling resources & work flow is more complex
Space requirements are higher
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8. Product Layouts Product layout unique characteristics are
Produce small number of products efficiently
Resources are specialized
High capital intensity
Low flexibility relative to the market
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9. Product Layouts - continued
Processing rates are faster
Material handling costs are lower
Lower space requirements
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10. Hybrid Layouts Combine elements of both product & process layouts
Maintain some of the efficiencies of product layouts
Maintain some of the flexibility of process layouts
Examples:
Group technology & manufacturing cells
Grocery stores
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11. Fixed-Position Layout
Used when product is large
Product is difficult or impossible to move, i.e. very large or fixed
All resources must be brought to the site
Scheduling of crews and resources is a challenge
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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
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 CAD software are available to facilitate this process
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13. Process Layout Steps
Step 1: Gather information like space needed, from-to matrix, and REL Chart for Recovery First Sports Medicine Clinic (total space 3750 sq. ft.) A
Radiology
400 sq. ft. B
Laboratory
300 sq. ft. C
Lobby & Waiting D
Examining Rooms
800 sq. ft. E
Surgery & Recovery
900 sq. ft. F
Physical Therapy
1050 sq. ft.
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14. Step 1: Gather Information (continued)
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15. Step 2: Develop a New Block Layout
Use trial and error with
from-to and REL Charts as a guide
Use computer software like ALDEP
or CRAFT
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16. Decision Support Tools
Trial and error method good for simple problems
Layout problems are combinatorial,
3x2 office layout has 6! Options (6*5*4*3*2*1 = 720 options)
Computer programs are available decision support tools
ALDEP based on REL and CRAFT based on form-to matrix
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17. Special Cases of Process Layouts
There are a number of unique process layouts which include
Warehouse layouts
Office Layouts
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18. Warehouse Layouts Warehouse Layout Considerations:
Primary decision is where to locate each department relative to the dock
Departments can be organized to minimize “ld” totals
Departments of unequal size require modification of the typical ld calculations to include a calculation of the “ratio of trips to area needed”
The usage of “Crossdocking” modifies the traditional warehouse layouts; more docks, less storage space, and less order picking
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19. Office Layouts Office Layout Considerations:
Almost half of US workforce works in an office environment
Human interaction and communication are the primary factors in designing office layouts
Layouts need to account for physical environment and psychological needs of the organization
One key layout trade-off is between proximity and privacy
Open concept offices promote understanding & trust
Flexible layouts incorporating “office landscaping” help to solve the privacy issue in open office environments
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20. Designing Product Layouts
Product layouts are different than process layouts
Product layouts provide for sequential product movement that enhances efficiency
Designing product layouts requires consideration of
Sequence of tasks to be performed by each workstation
Logical order
Speed considerations – line balancing
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21. Designing Product Layouts - continued
Step 1: Identify tasks & immediate predecessors
Step 2: Determine the desired output rate
Step 3: Calculate the cycle time
Step 4: Compute the theoretical minimum number
of workstations
Step 5: Assign tasks to workstations (balance the
line)
Step 6: Compute efficiency, idle time & balance
delay
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22. Step 1: Identify Tasks & Immediate Predecessors
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23. Layout Calculations Step 2: Determine output rate
Vicki needs to produce 60 pizzas per hour
Step 3: Determine cycle time
The amount of time each workstation is allowed to complete its tasks
Limited by the bottleneck task (the longest task in a process):
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24. Layout Calculations (continued)
Step 4: Compute the theoretical minimum number of stations
TM = number of stations needed to achieve 100% efficiency (every second is used)
Always round up (no partial workstations)
Serves as a lower bound for our analysis
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25. Layout Calculations (continued)
Step 5: Assign tasks to workstations
Start at the first station & choose the longest eligible task following precedence relationships
Continue adding the longest eligible task that fits without going over the desired cycle time
When no additional tasks can be added within the desired cycle time, begin assigning tasks to the next workstation until finished
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26. Last Layout Calculation
Step 6: Compute efficiency and balance delay
Efficiency (%) is the ratio of total productive time divided by total time
Balance delay (%) is the amount by which the line falls short of 100%
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27. Other Product Layout Considerations
Shape of the line (S, U, O, L):
Share resources, enhance communication & visibility, impact location of loading & unloading
Paced versus un-paced lines
Paced lines use an automatically enforced cycle time
Number of products produced
Single
Mixed-model lines
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28. Designing Hybrid Layouts
One of the most popular hybrid layouts uses Group Technology (GT) and a cellular layout
GT has the advantage of bringing the efficiencies of a product layout to a process layout environment
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29. Process Flows before the Use of GT Cells
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30. Process Flows after the Use of GT Cells
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31. Facility Layout Across the Organization
Layout planning is organizationally important for an efficient operations
Marketing is affected by layout especially when clients come to the site
Human resources is affected as layout impacts people
Finance is involved as layout changes can be costly endeavors
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32. Chapter 10 Highlights
Layout planning is deciding on the best physical arrangement of all resources that consumes space within a facility. Proper layout planning is highly important for the efficient running of a business. Otherwise, there can be much wasted time and energy, as well as confusion.
There are four basic types of layouts: process, product, hybrid, and fixed position. Process layouts group resources based on similar processes. Product layouts arrange resources in straight-line fashion. Hybrid layouts combine elements of both process and product layouts. Fixed-position layouts occur when the product is larger and cannot be moved.
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33. Chapter 10 Highlights - continued
Process layouts provide much flexibility and allow for the production of many products with differing characteristics. Product layouts, on the other hand, provide greater efficiency when producing one type of product.
The steps for designing process layouts are (1) gather information about space needs, space availability, and closeness requirements of departments; (2) developing a block plan or schematic of the layout; and (3) developing a detailed layout.
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34. Chapter 10 Highlights - continued
The steps for designing an product layout are (1) identify tasks that need to be performed and their immediate predecessors; (2) determine output rate; (3) determine cycle time; (4) computing the theoretical minimum number of work stations, (5) assigning tasks to workstations; and (6) computing efficiency and balance delay.
Hybrids layouts have advantages over other layout types because they combine elements of both process and product layouts to increase efficiency.
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35. Chapter 10 Highlights - continued
An example of hybrid layouts is group technology or cell layouts. Group technology is the process of crating groupings of products based on similar processing requirements. Cells are created for each grouping of products, resulting in a more orderly flow of products through the facility.
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36. The End
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