1. Mba 621 2 Facility Layout u Basic layouts u Some layout techniques u Assembly line balancing u Service Layout

2. Mba 621 3 Inputs to the Layout Decision 1. Specification of objectives of the system in terms of output and flexibility. 2. Estimation of product or service demand on the system. 3. Processing requirements in terms of number of operations and amount of flow between departments and work centers. 4. Space requirements for the elements in the layout. 5. Space availability within the facility itself.

3. Mba 621 4 Basic Production Layouts u Process Layout u Product Layout u Group Technology (Cellular) Layout u Fixed-Position Layout

4. Mba 621 5 Process Layout (also called job shop or functional layout) u What factors might we consider when determining the locations of process areas, or departments?

5. Mba 621 6 Process Layout: Interdepartmental Flow u Given – The flow (number of moves) to and from all departments – The cost of moving from one department to another – The existing or planned physical layout of the plant u Determine – The “best” locations for each department, where best means interdepartmental transportation, or flow, costs

6. Mba 621 7 Process Layout: Cut-And-Try Approach - see pp. 176 - 179 u Involves searching for departmental changes to reduce overall flow cost u Difficult to determine correct moves u Non-optimal and based on limited criteria (cost, flow and distance)

7. Mba 621 8 Process Layout: CRAFT Approach (computerized method) u It is a heuristic program; it uses a simple rule of thumb in making evaluations: – "Compare two departments at a time and exchange them if it reduces the total cost of the layout." u It does not guarantee an optimal solution. u CRAFT assumes the existence of variable path material handling equipment such as forklift trucks.

8. Mba 621 9 Process Layout: Systematic Layout Planning u Useful when numerical flow of items between departments – Can be impractical to obtain – Does not account for the qualitative factors that may be crucial to the placement decision u Systematic Layout Planning – Accounts for the importance of having each department located next to every other department – Is also guided by trial and error » Switching departments then checking the results of the “closeness” score

9. Mba 621 10 Systematic Layout Planning-- Example Reasons for Closeness Code 1 2 3 4 5 6 Reason Type of customer Ease of supervision Common personnel Contact necessary Share same price Psychology

10. Mba 621 11 Systematic Layout Planning-- Example Importance of Closeness Value A E I O U X Closeness Line code Numerical weights Absolutely necessary Especially important Important Ordinary closeness OK Unimportant Undesirable 16 8 4 2 0 80

11. Mba 621 12 Systematic Layout Planning-- Example Relating Reasons and Importance From 1. Credit department 2. Toy department 3. Wine department 4. Camera department 5. Candy department 6 I -- U 4 A U U 1 I 1,6 A -- U 1 X 1 X To 234 5 Area (sq. ft.) 100 400 300 100 Letter Number Closeness rating Reason for rating

12. Mba 621 13 Systematic Layout Planning-- Example Initial Relationship Diagram 1 2 4 3 5 U U E A I

13. Mba 621 14 Systematic Layout Planning-- Example Initial and Final Layouts 1 24 3 5 Initial Layout Ignoring space and building constraints 2 514 3 50 ft 20 ft Final Layout Adjusted by square footage and building size

14. Mba 621 15 Station 1 Mins per Unit 6 Station 2 7 Station 3 3 Assembly Lines (Product Layout) What’s Going to Happen?

15. Mba 621 16 Example--Line Balancing u You’ve just been assigned the job a setting up an electric fan assembly line with the following tasks:

16. Mba 621 17 Precedence Diagram A C B DEF G H 2 3.25 1 1.2.5 1 1.4 1 u Which process step defines the maximum rate of production?

17. Mba 621 18 The bottleneck

18. Mba 621 19 We want to assembly 100 fans per day What does this figure represent?

19. Why should we always round up? 20 © The McGraw-Hill Companies, Inc., 1998 Irwin/McGraw-Hill

20. Mba 621 21 Some Rules We’ll Follow for Loading Workstations u Primary: Assign tasks in order of the largest number of following tasks. u Secondary (tie-breaking): Assign tasks in order of the longest operating time

21. A C B DEF G H 2 3.25 1 1.2.5 1 1.4 1 Precedence Diagram 22 © The McGraw-Hill Companies, Inc., 1998 Irwin/McGraw-Hill

22. A C B DEF G H 2 3.25 1 1.2.5 1 1.4 1 Station 1Station 2 Station 3 TaskFollowersTime (Mins) A62 C43.25 D31.2 B2 1 E20.5 F11 G11 H01.4 23 © The McGraw-Hill Companies, Inc., 1998 Irwin/McGraw-Hill

23. A C B DEF G H 2 3.25 1 1.2.5 1 1.4 1 Station 1Station 2 Station 3 A (4.2-2=2.2) TaskFollowersTime (Mins) A62 C43.25 D31.2 B2 1 E20.5 F11 G11 H01.4 24 © The McGraw-Hill Companies, Inc., 1998 Irwin/McGraw-Hill

24. A C B DEF G H 2 3.25 1 1.2.5 1 1.4 1 A (4.2-2=2.2) B (2.2-1=1.2) TaskFollowersTime (Mins) A62 C43.25 D31.2 B2 1 E20.5 F11 G11 H01.4 Station 1Station 2 Station 3 25 © The McGraw-Hill Companies, Inc., 1998 Irwin/McGraw-Hill

25. A C B DEF G H 2 3.25 1 1.2.5 1 1.4 1 A (4.2-2=2.2) B (2.2-1=1.2) G (1.2-1=.2) Idle=.2 TaskFollowersTime (Mins) A62 C43.25 D31.2 B2 1 E20.5 F11 G11 H01.4 Station 1Station 2 Station 3 26

26. A C B DEF G H 2 3.25 1 1.2.5 1 1.4 1 C (4.2-3.25)=.95 TaskFollowersTime (Mins) A62 C43.25 D31.2 B2 1 E20.5 F11 G11 H01.4 A (4.2-2=2.2) B (2.2-1=1.2) G (1.2-1=.2) Idle=.2 Station 1Station 2 Station 3 27

27. A C B DEF G H 2 3.25 1 1.2.5 1 1.4 1 C (4.2-3.25)=.95 Idle =.95 TaskFollowersTime (Mins) A62 C43.25 D31.2 B2 1 E20.5 F11 G11 H01.4 A (4.2-2=2.2) B (2.2-1=1.2) G (1.2-1=.2) Idle=.2 Station 1Station 2 Station 3 28

28. A C B DEF G H 2 3.25 1 1.2.5 1 1.4 1 C (4.2-3.25)=.95 Idle =.95 D (4.2-1.2)=3 TaskFollowersTime (Mins) A62 C43.25 D31.2 B2 1 E20.5 F11 G11 H01.4 A (4.2-2=2.2) B (2.2-1=1.2) G (1.2-1=.2) Idle=.2 Station 1Station 2 Station 3 29 © The McGraw-Hill Companies, Inc., 1998 Irwin/McGraw-Hill

29. A C B DEF G H 2 3.25 1 1.2.5 1 1.4 1 C (4.2-3.25)=.95 Idle =.95 D (4.2-1.2)=3 E (3-.5)=2.5 TaskFollowersTime (Mins) A62 C43.25 D31.2 B2 1 E20.5 F11 G11 H01.4 A (4.2-2=2.2) B (2.2-1=1.2) G (1.2-1=.2) Idle=.2 Station 1Station 2 Station 3 30 © The McGraw-Hill Companies, Inc., 1998 Irwin/McGraw-Hill

30. A C B DEF G H 2 3.25 1 1.2.5 1 1.4 1 C (4.2-3.25)=.95 Idle =.95 D (4.2-1.2)=3 E (3-.5)=2.5 F (2.5-1)=1.5 TaskFollowersTime (Mins) A62 C43.25 D31.2 B2 1 E20.5 F11 G11 H01.4 A (4.2-2=2.2) B (2.2-1=1.2) G (1.2-1=.2) Idle=.2 Station 1Station 2 Station 3 31 © The McGraw-Hill Companies, Inc., 1998 Irwin/McGraw-Hill

31. A C B DEF G H 2 3.25 1 1.2.5 1 1.4 1 C (4.2-3.25)=.95 Idle =.95 D (4.2-1.2)=3 E (3-.5)=2.5 F (2.5-1)=1.5 H (1.5-1.4)=.1 Idle =.1 Which station is the bottleneck? What is the effective cycle time? TaskFollowersTime (Mins) A62 C43.25 D31.2 B2 1 E20.5 F11 G11 H01.4 A (4.2-2=2.2) B (2.2-1=1.2) G (1.2-1=.2) Idle=.2 Station 1Station 2 Station 3 32 © The McGraw-Hill Companies, Inc., 1998 Irwin/McGraw-Hill

32. Mba 621 33 Efficiency of the Assembly Line

33. Mba 621 34 Group Technology Benefits 1. Better human relations 2. Improved operator expertise 3. Less in-process inventory and material handling 4. Faster production setup

34. Mba 621 35 Group Technology Transition from Process Layout 1. Grouping parts into families that follow a common sequence of steps. 2. Identifying dominant flow patterns of parts families as a basis for location or relocation of processes. 3. Physically grouping machines and processes into cells.

35. Mba 621 36 Fixed Position Layout u What are our primary considerations for a fixed position layout?

36. Mba 621 37 Retail Service Layout u Goal--maximize net profit per square foot of floor space u What about the humanistic considerations? – The “servicescape”

37. Mba 621 38 Servicescapes u Ambient Conditions u Spatial Layout and Functionality u Signs, Symbols, and Artifacts