1. Facility Layout Facility Layout Facility Layout decisions translate the broader decisions about a firm’s strategy such as competitive priorities, process, and capacity into actual physical arrangements of people, equipment, and space.

2. Emphasis: On flexibility and change Determine:  Placement of departments  Workgroups within departments  Workstations  Machines  Stock-holding points Factory: smooth work flow Service: traffic pattern Determine:  Placement of departments  Workgroups within departments  Workstations  Machines  Stock-holding points Factory: smooth work flow Service: traffic pattern

3. Inputs to layout decisions: 1. specification of the objectives 2. estimates of product or service demand 3. processing requirements 4. space requirements space availability – existing facility space availability – existing facility building configuration – new facility building configuration – new facility

4. Basic Production Layout Formats Process Layout - Job shop/functional layout Similar equipment or functions are grouped together Tools: Interdepartmental Flow Systematic Layout Planning Distance/Load Basis Tools: Interdepartmental Flow Systematic Layout Planning Distance/Load Basis Product Layout - Assembly Line Equipment is arranged according to the steps in which the product is made Tools: Line balancing Group Technology (cellular) Fixed-position layout

5. Retail Service Layout Stores, banks, restaurants Goal: maximize net profit per square foot of floor space Stores, banks, restaurants Goal: maximize net profit per square foot of floor space

6. Servicescapes: 1. Ambient conditions 2. Spatial layout and functionality 3. Signs, symbols, and artifacts 1. Ambient conditions 2. Spatial layout and functionality 3. Signs, symbols, and artifacts

7. Office Layout Trends: – more open offices – removed fixed walls to foster communication and teamwork – size and orientation of desks –often designed and laid out to convey a desired image –often designed and laid out to convey a desired image

8. Marks of a Good Layout: Manufacturing & Back-Office Operations 1. Straight line flow patterns 2. Backtracking minimized 3. Production time predictable 4. Little inter-stage storage of materials 5. Open plant floors so everyone can see what is happening 6. Bottleneck operations under control 7. Workstations close together 8. Orderly handling and storage of materials 9. No unnecessary re-handling of material 10. Easily adjustable to changing conditions 6. Bottleneck operations under control 7. Workstations close together 8. Orderly handling and storage of materials 9. No unnecessary re-handling of material 10. Easily adjustable to changing conditions

9. Face-to-face services 1. easily understood service flow pattern 2. adequate waiting facilities 3. easy communication with customers 4. easily maintained customer surveillance 5. clear exit and entry points with adequate checkout capabilities 6. departments and processes arranged so that customers only see what you want them to see 7. balance between waiting areas and service areas 8. minimum walking and material movement 9. lack of clutter 10. high sales volume per square foot of facility 10. high sales volume per square foot of facility

10. Conditions that drive layout decisions - reduce unnecessary activities - prevent damage to inventory - enhance communication - prevent rework - provide privacy - provide for employee safety - provide for security of resources - enhance labor skills and functional excellence - enhance the quality of work life - provide for customer involvement - reduce unnecessary activities - prevent damage to inventory - enhance communication - prevent rework - provide privacy - provide for employee safety - provide for security of resources - enhance labor skills and functional excellence - enhance the quality of work life - provide for customer involvement

11. The goal of layout planning is to allow workers and equipment to operate most effectively The goal of layout planning is to allow workers and equipment to operate most effectively Economic activity center – anything in your facility that consumes space Economic activity center – anything in your facility that consumes space

12. Questions to ask: 1. What centers to include? 2. How much space and capacity does each center need? 3. How should each center’s space be configured? 4. Where should each center be located?

13. Relative location – placement relative to other centers – based on: Relative location – placement relative to other centers – based on: –Travel time –Material handling costs –Communication needs Absolute location – particular space it will occupy Absolute location – particular space it will occupy

14. Designing a Process Layout 1. Gather information 2. Develop a block plan 3. Design a detailed layout

15. Gather information Space requirements for each center Space requirements for each center Available space Available space Closeness factors Closeness factors –Trip matrix –REL (relationship chart) What centers need fixed locations What centers need fixed locations

16. Develop a block plan 1. Trial and error for acceptable plan 2. LOAD-DISTANCE method

17. Process Layout Example ABCDEF A-8395 B-3 C-89 D-3 E-3 F-

18. Detailed representation Exact size and shape of each center Exact size and shape of each center Arrangement of elements Arrangement of elements

19. Designing a Product layout Arranges work stations in sequence Arranges work stations in sequence LINE BALANCING – assignment of work to stations LINE BALANCING – assignment of work to stations Goal: Obtain workstations with well- balanced workloads Goal: Obtain workstations with well- balanced workloads Work element – smallest unit of work that can be performed independently Work element – smallest unit of work that can be performed independently

20. Procedure 1. Develop a precedence diagram 2. Determine the desired output rate 3. Determine cycle time and related measures 4. Find an appropriate solution

21. Cycle time – 1/r where r is the desired output rate Cycle time – 1/r where r is the desired output rate –Maximum time allowed for work on a unit at each station Theoretical Minimum Number of Workstations Theoretical Minimum Number of Workstations –TM =  t / c Idle Time = n * c -  t Idle Time = n * c -  t –where n = number of stations Efficiency (%) =  t / nc (100) Efficiency (%) =  t / nc (100) Balance Delay (%) = 100 - Efficiency Balance Delay (%) = 100 - Efficiency

22. Finding a Solution Begin with station k = 1 Begin with station k = 1 –Make a list of candidates to assign to station k Pick a candidate Pick a candidate –Longest work-element rule –Largest number of followers Calculate cumulative time for all tasks assigned to station k Calculate cumulative time for all tasks assigned to station k If some work elements are still unassigned, but none are candidates for station k, create a new station k+1 If some work elements are still unassigned, but none are candidates for station k, create a new station k+1 Continue until all work elements are assigned Continue until all work elements are assigned

23. Work Element Time (seconds) Immediate Predecessor(s) A40None B80A C30D,E,F D25B E20B F15B G120A H145G I130H J115C,I Total