1. Chapter 10 – Facility Layout Operations Management by R. Dan Reid & Nada R. Sanders 2 nd Edition © Wiley 2005 PowerPoint Presentation by R.B. Clough - UNH

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 both process and product layouts Explain the advantages of hybrid layouts Define the meaning of group technology & its importance to cellular layouts

3. What Is Layout Planning Layout planning is determining the best physical arrangement of resources within a facility Two broad categories of operations: Intermittent processing systems Continuous processing systems

4. Types of Layouts 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

5. Process Layouts General purpose & flexible resources Lower capital intensity & automation Higher labor intensity Resources have greater flexibility Processing rates are slower Material handling costs are higher Scheduling resources & work flow is more complex Space requirements are higher

6. Product Layouts Specialized equipment High capital intensity & wide use of automation Processing rates are faster Material handling costs are lower Less space required for inventories Less volume or design flexibility

7. 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

8. Comparison of Product vs. Product Layouts Process Layouts Product Layouts Products: large #, different small # efficiently Resources: general purpose specialized Facilities: more labor intensive more capital intensive Flexibility: greater relative to market lower relative to market Processing slower faster Rates: Handling costs: high low Space requirements: higher lower

9. 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

10. 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 300 sq. ft. D Examining Rooms 800 sq. ft. E Surgery & Recovery 900 sq. ft. F Physical Therapy 1050 sq. ft.

11. Step 1: Gather Information (continued)

12. Step 2: Develop a Block Layout Use trial and error with from- to and REL Charts as a guide Use computer software like ALDEP or CRAFT

13. 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” (see Ch.4) modifies the traditional warehouse layouts; more docks, less storage space, and less order picking

14. 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

15. Designing Product Layouts 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

16. Step 1: Identify Tasks & Immediate Predecessors

17. 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):

18. 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

19. 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

20. 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%

21. 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 Single or mixed-model lines

22. 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

23. Process Flows before the Use of GT Cells

24. Process Flows after the Use of GT Cells

25. Chapter 10 Highlights Layout planning is deciding on the best physical arrangement of resources. There are four basic types of layouts: process, product, hybrid, and fixed position. Process layouts provide flexibility to make a variety of different products. Product layouts provide greater efficiency for one product. The steps for designing process layouts are: gather space and closeness information, develop a block plan, and develop a detailed layout.

26. Chapter 10 Highlights (continued) The steps for designing an product layout are: identify tasks and predecessors, determine output rate, determine cycle time, computing the theoretical minimum number of work stations, assigning tasks to workstations, and computing efficiency and balance delay. Hybrids layouts combine elements from both types of layouts to increase efficiency. Hybrid layouts combine GT analysis with cellular layout concepts.

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