1. Facilities Planning - Unit 01 Facilities Planning Introduction

2. Definition of Facility Planning
Facility Planning determines how an activity’s tangible fixed assets best support achieving the activity’s objectives.
Examples:
In manufacturing, the objective is to support production.
In an airport, the objective is to support the passenger airplane interface.
In a hospital, the objective is to provide medical care to patients.
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3. Hierarchy of Facility Planning
Structural Design
Facility Location
Facility Design
Handling System Design
Layout Design
Source for Figure: Tompkins and White, Facilities Planning, 2nd edition, Wiley
Location - is the placement of a facility with respect to customers, suppliers, and other facilities with which it interfaces.
Structure - consists of the building and services (e.g., gas, water, power, heat, light, air, sewage).
Layout - consists of all equipment, machinery, and furnishings within the structure.
Handling System - consists of the mechanism by which all interactions required by the layout are satisfied (e.g., materials, personnel, information, and equipment handling systems).
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4. Strategic Facilities Planning Issues
1. Number, location, and sizes of warehouses and/or distribution centers.
2. Centralized versus decentralized storage supplies, raw materials, work-in-process, and finished goods for single- and multi-building sites, as well as single- and multi-site companies.
3. Acquisition of existing facilities versus design of model factories and distribution centers of the future.
4. Flexibility required because of market and technological uncertainties.
5. Interface between storage and manufacturing.
6. Level of vertical integration, including "subcontract versus manufacture" decisions.
7. Control systems, including materials control and equipment control.
8. Movement of materials between buildings, between sites.
9. Changes in customers' and suppliers' technology as well as firm's own manufacturing technology and materials handling, storage, and control technology.
10. Design-to-cost goals for facilities.
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5. Facility Design Sequential Approach vs. Integrated Approach
Material Handling System Design
Product Design
Process Design
Facility Layout
Production Planning
Sequential Approach
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6. Facility Design Sequential Approach vs. Integrated Approach
Impressive results in cost, quality, productivity, sales, customer satisfaction, delivery time, inventory levels, space + handling requirements, building size, etc.
Concurrent Engineering
Terms of product, process, scheduling and facility design planners work with marketing, purchasing, etc. Personnel address the design process in an integrated way.
Product Design
Process Design
Schedule Design
Layout Design +
Material Handling System Design
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7. Productivity = Output / Input
Productivity Model
Enterprise
Input
Output
Productivity = Output / Input
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8. Productivity = Output / Input
Productivity Model
Enterprise
Input
Output
Productivity = Output / Input
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9. Hierarchy of Facility Planning Layout Design
Facility Location
Structural Design
Facility Planning
Facility Design
Layout Design
Handling System Design
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10. Layout Design - Introduction
Facility layout means planning:
for the location of all machines, utilities, employee workstations, customer service areas, material storage areas, aisles, restrooms, lunchrooms, internal walls, offices, and computer rooms
for the flow patterns of materials and people around, into, and within buildings
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11. Layout Design – Introduction Planning for required Spaces and Areas
Equipment
Work stations
Material storage
Rest/break areas
Utilities
Eating areas
Aisles
Offices
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12. Layout Design – Introduction Characteristics of the Facility Layout Decision
Location of these various areas impacts the flow through the system.
The layout can affect productivity and costs generated by the system.
Layout alternatives are limited by
the amount and type of space required for the various areas
the amount and type of space available
the operations strategy
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13. Layout Design – Introduction Characteristics of the Facility Layout Decision
Layout decisions tend to be:
Infrequent
Expensive to implement
Studied and evaluated extensively
Long-term commitments
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14. Facility Layout A Layout problem may be to:
determine the location for a new machine,
develop a new layout for an existing production plant,
develop a layout for a new production plant,
etc.
A Layout problem may arises due to:
changes in the design of a product,
addition or deletion of a product,
change in the demand of a product,
changes in the design of the process,
addition or deletion of a process,
replacement of equipment,
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15. Facility Layout – Strategic Importance
Proper layout enables:
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
Poor Layout costs you time and money.
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16. McDonald’s over 95 billion served
Example of how a facility layout can save you money McDonald’s - New Kitchen Layout
No food prepared ahead except patty
Elimination of some steps, shortening of others
New bun toasting machine (11 seconds vs. 30 seconds)
Repositioning condiment containers (one motion, not two)
Sandwiches assembled in order
Production levels controlled by computer
Discard only meat when sandwiches do not sell fast enough
Savings of $100,000,000 per year in food costs
McDonald’s over 95 billion served
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17. Facility Innovations at McDonald’s over the years
Example of how a facility layout can save you money McDonald’s - New Kitchen Layout
Facility Innovations at McDonald’s over the years
Indoor seating (1950’s)
Drive-through window (1970s)
Adding breakfast to the menu (1980s)
Adding play areas (1990s)
McDonald’s over 95 billion served
Three out of the four are layout decisions, which one isn’t?
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18. Layout Strategies - Manufacturing vs. Service
Characteristic
Manufacturing
Service
Output
Tangible
Intangible
Customer contact
Uniformity of input
Labor content
Uniformity of output
Measure of Productivity
Easy
Difficult
Correcting Quality
High
Low
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19. Layout Strategies Fixed-position layout
When building large bulky projects such as ships and buildings
Process-oriented layout
When you have low-volume, high-variety production (“job shop”, intermittent production)
Product-oriented layout
When you need the best personnel and machine use in repetitive or continuous production
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20. Layout Strategies Office layout
When you have office workers, their equipment, and spaces/offices to provide for movement of information
Retail/service layout
When you need lots of shelf space and to be able to respond to customer behavior
Warehouse layout
When you need to trade-off between space and material handling
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21. Layout Strategies – Examples and Criteria
Layout strategy
Example
Criteria
Service/retail
Drug store
Grocery store
Department store
Expose customer to high margin items
Storage
Distributor
Warehouse
Minimize storage and handling costs
Product oriented
TV assembly line
Minimize line imbalance, delay, and idle time
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22. Areas of Concern in Layout Strategy
Communication
Service
Areas
Material
Attributes
Layout
Strategy
Warehousing
Work
Cell
Safety
Material
Flow
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23. Requirements of a Good Layout
an understanding of capacity and space requirements
selection of appropriate material handling equipment
decisions regarding environment and aesthetics
identification and understanding of the requirements for information flow
identification of the cost of moving between the various work areas
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24. Principles of a Good Layout Manufacturing
Straight-line Flow Pattern when possible
Backtracking kept to a Minimum
Predictable Production Time
Little In-process materials storage
Open Floor plans so everyone can see what is going on
Bottlenecks under control
Workstations close together
Minimum of material handling
Easy adjustment to changing conditions
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25. Layout in Services - Office
Situation: The office layout process deals with situations where the primary consideration is the movement of information and communications carried out by:
face-to-face conversations
phone or computers
movement of hard copy
meetings
intercom speakers
Examples:
Hotel Executive Offices
Accounting Firm Offices
An increasing number of the U.S. workforce work in an office environments
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26. Layout in Services – Office
Situation: Service buildings differ from manufacturing facilities in that instead of product flow, the flow involves people and information.
Buildings must:
be attractive
have handicap access
be secure
be wired for communications (computer networks, etc)
provide for efficient customer flow
have adequate parking
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27. Layout in Services – Office
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28. Principles of a Good Layout Face to Face Services
Easily understood service flow pattern
Adequate waiting facilities
Easy communication with customers
Customers in view of servers throughout the process
Clear entry and exit points with adequate checkout facilities
Customers see only what you want them to see
Balance between waiting and service areas
Minimum walking and material movement
Lack of clutter
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29. Layout Levels Workstation Tool & Fixture Locations Workstation Design
                    
Workstation
Tool & Fixture Locations
Workstation Design V
Sub Micro Layout
                 
Cells or Departments
Workstations or Work cell Features
Work cell of Department IV
Micro Layout
Building
Work cells or Departments
Building Department or Block Layout
III
Macro Layout
                            
Site
Buildings or Site Features
Site Planning II
Supra
                                 
World or Country
Sites
Site Location & Selection I
Global
Output
Environment
Space Planning Unit
Activity
Level
From:
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30. Layout Levels - Continued
At the Global level, we select a site location. This involves factors such as freight cost, labor cost, skill availability and site focus.
At the Supra-Layout level we plan the site. This includes number, size, and location of buildings. It includes infrastructure such as roads, water, gas and rail. This plan should look ahead to plant expansions and eventual site saturation
The Macro-Layout plans each building, structure or other sub-unit of the site. Operating departments are defined and located at this level. Frequently, this is the most important level of planning. A Macro-Layout institutionalizes the fundamental organizational structure in steel and concrete.
From:
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31. Layout Levels - Continued
The Micro-Level IV determines the location of specific equipment and furniture. The emphasis shifts from gross material flow to personal space and communication. Socio-Technical considerations dominate.
The sub micro level focuses on individual workers. Here we design workstations for efficiency, effectiveness and safety. Ergonomics is key.
Ideally, the design progresses from Global to Sub-Micro in distinct, sequential phases. At the end of each phase, the design is "frozen" by consensus.
From:
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32. New Trends in Manufacturing Layouts
Designed for quality and flexibility
Ability to quickly shift to different product models or to different production rates
Cellular layout within larger process layouts
Automated material handling
U-shaped production lines
More open work areas with fewer walls, partitions, or other obstacles
Smaller and more compact factory layouts
Less space provided for storage of inventories throughout the layout
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33. Wrap-Up: World-Class Practices
Strive for flexibility in layouts
Multi-job training of workers
Sophisticated preventive-maintenance programs
Flexible machines
Empowered workers trained in problem solving
Layouts small and compact
Services follow the above practices plus incorporate customer needs in design
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34. Few More Words on Layout Strategy Objectives
Develop an economical layout which will meet the requirements of:
product design and volume (product strategy)
process equipment and capacity (process strategy)
quality of work life (human resource strategy)
building and site constraints (location strategy)
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35. Facilities Planning – What’s Coming up?
Unit 01 - Facilities Planning Introduction
Unit 02 - Transformation Systems and Process Selection
Unit 03 - Layout Flow Analysis
Unit 04 - Layout Types: Manufacturing
Unit 05 - Layout Types: Service and Retail
Unit 06 - Balancing Production Lines
Unit 07 - Layout Design: Systematic Layout Planning
Unit 08 - General Layout Planning and Evaluation
Unit 09 - Material Handling Principles
Unit 10 - Material Handling Equipment
Unit 11 - Warehousing and Storage
Unit 12 - Facilities Location Planning and Analysis
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