1. MGT 4700 - Operations Management
4/23/2017
Facilities Chapter 5
Sec# 83930

2. Objectives Facility Layouts Process Layout Design
Product Layout Design
Hybrid Layouts
Facility Location

3. Facility Layouts Layout characteristics Basic layouts
Min handling cost, max utilization
Safety, security, quality, flexibility
Basic layouts
Process layout
Product layout
Fixed position layout L M D G A
Receiving and
Shipping
Assembly
Painting Department
Lathe
Department
Milling
Drilling Department
Grinding P

4. Compare PRODUCT LAYOUT PROCESS LAYOUT
1. Description Sequential arrangement Functional grouping
of machines of machines
2. Type of Process Continuous, mass Intermittent, job shop
production, mainly batch production,
assembly mainly fabrication
3. Product Standardized Varied,
made to stock made to order
4. Demand Stable Fluctuating
5. Volume High Low
6. Equipment Special purpose General purpose
7. Workers Limited skills Varied skills
8. Inventory Low in-process, High in-process,
high finished goods low finished goods
9. Storage space Small Large
10. Material Fixed path Variable path
handling (conveyor) (forklift)
11. Aisles Narrow Wide
12. Scheduling Somewhat static Complex & dynamic
13. Layout decision Line balancing Machine location
14. Goal Equalize work at Minimize material
each station handling cost
15. Advantage Efficiency Flexibility

5. Designing Process Layouts
Block Diagramming
Minimize nonadjacent loads
Use when quantitative data is available
Relationship Diagramming
Based on location preference between areas
Use when quantitative data is not available

6. Block Diagramming Create load summary chart
Calculate composite (2 way) movements
Develop trial layouts minimizing number of nonadjacent loads

7. Load Summary Chart Department A B C D E F A Radiology — 20 8 15
FROM/TO DEPARTMENT
A Radiology —
B Lab —
C Waiting —
D Exam —
E Surgery —
F Therapy —

8. Relationship Diagramming
Used when quantitative data is not available
Muther’s grid table displays managers preferences for relative (pair wise) department locations
Denote location preferences with weighted lines in a diagram

9. Muther’s Grid Table U A E O X I A Absolutely necessary
Radiology
Lab
Waiting
Exam
Surgery
Therapy
A Absolutely necessary
E Especially important
I Important
O Okay
U Unimportant
X Undesirable

10. Computerized Layout Solutions
CRAFT – block diagramming
CORELAP – relationship diagramming
Simulation

11. Service Layouts Tailored to customer needs Max flow and exposure
Computer programs consider
Shelf space
Demand
Profitability
Aesthetically pleasing

12. Designing Product Layouts
Arranged in assembly line
Precedence diagram of tasks
Jobs divided into work elements
Work elements assigned to workstations
Workload balanced along the line

13. Line Balancing Balance the amount of work at each workstation
Achieve a constant throughput with high efficiency
Line balancing process
Precedence diagram
Desired cycle time
Min number of workstations
Group elements into workstations with acceptable efficiency

14. Precedence Table Work Element Precedence Time (min) A Tan leather — 30
B Dye leather A 15
C Shape case B 10
D Mold hinges and fixtures — 5
E Install hinges and fixtures C, D 10
F Assemble case E 10

15. Hybrid Layouts Cellular layouts Flexible manufacturing systems
Group machines into machining cells
Flexible manufacturing systems
Automated machining & material handling systems
Mixed-model assembly lines
Produce variety of models on one line

16. Cellular Layouts Identify flow of similar partsB
Raw materials
Assembly 1 2 3 4 5 6 7 8 9 10 11 12
Identify flow of similar parts
Group machines into cells
Arrange cells to min material movement
Locate shared machines where cells connect 3 6 9
Assembly 1 2 4 8 10 5 7 11 12
A B C
Raw materials
Cell 1
Cell 2
Cell 3

17. Direction of part movement within cell
Manufacturing Cell In
Out
Worker 1
Worker 2
Worker 3
Direction of part movement within cell
Saw
Lathe
Horizontal
Milling
Vertical
Grinder
Final inspection
Finished part

18. FMS Layout Automated machining, material handling, tool changers
Computer controlled system
Designed around part sizes and flow times

19. Mixed Model Assembly Lines
Produce multiple models in any order on one assembly line
Issues in mixed model lines
Line balancing
U-shaped line
Flexible workforce
Model sequencing

20. Facility Location Types of facilities Location factors
Heavy manufacturing
Light industry
Warehouses and distribution centers
Retail and service
Location factors
Standard factors
Global, regional, site factors
Location incentives

21. Location Analysis Location factor rating Center-of-gravity technique
Long-distance technique