Layout and Flow

7.
Layout and Flow
Nigel Slack, Stuart Chambers & Robert Johnston, 2004
Operations Management, 4E: Chapter 7
7.2
Layout:
The layout of an operation is concerned with the
physical location of its transforming resources, that
is deciding where to put the facilities, machines,
equipment and staff in the operation.
Layout types:
1) Fixed position layout
2) Process layout
3) Cell layout
4) Product layout
7.3
Fixed position layout

1)
2)
In a fixed position layout, the transformed resource

does not move between its transforming resources.
Equipment, machinery, plant and people who do
the processing move as necessary because the
product or customer is either:
i. Too large
ii. Too delicate or
iii. Objects being moved
7.4
Process layout
1)
In a process layout, similar processes or processes

with similar needs are located together because:
i.
ii.
2)
3)
It is convenient to group them together or

The utilization of the transforming resource is
improved
Different products of customer have different

requirements therefore they may take different
routes within the process.
The flow in a process layout can be very complex.
7.5
An example of a process layout in a library

showing the path of just one customer
Loan books in subject order
On-line and
CD-ROM
access room
Study desks
Enquiries
Company reports
To
journal
sack
Current
journals
Reference
section
Reserve
collection
Store
room
Counter staff
Entrance
Copying area
Exit
7.6
Cell layout
1)
2)
3)
4)
In a cell layout, the transformed resources entering

the operation move into a cell in which all the
transforming resources it requires in located.
After being processed in the cell, the transformed
resource may move to a different cell in the
operation or it may be a finished product or service.
Each cell may be arranged in either a process or
product layout.
The cell type layout attempts to bring order to the
complex flow seen in a process layout.
7.7
The ground floor plan of a department store

showing the sports goods shop-within-a-shop
retail cell
Books
and
videos
Footwear
Sports shop
Menswear
Perfume
& jewellery
Elevators
Confectionery,
newspaper,
magazines and
stationery
Womens clothes
Luggage
and gifts
Entrance
7.8
Product layout
1)
2)
In a product layout, the transformed resource flow

a long a line of processes that has been
prearranged.
Flow is clear, predictable and easy to control.
7.9
An army induction centre with uses

product layout
Waiting
area
Lecture theatre
Doctor
Waiting
area
Doctor
Blood
test
X-ray
Uniform
issuing
area
Doctor
Doctor
Blood
test
Record
personal
history and
medical
details
X-ray
Uniform
store
Doctor
Blood
Doctor test
X-ray
7.10
A restaurant complex with all four basic

layout types
Line layout cafeteria
Cell layout buffet
Starter
buffet
Desert
buffet
Fixed-position layout
service restaurant
Main course
buffet
Service line
Oven
Preparation
Process layout kitchen

Cool room
Freezer
Vegetable prep
Grill
Volume-variety relationship
High
Flow is
intermittent
Low
High
Volume
Fixed-position
layout
Variety
Process
layout
Cell layout
Product
layout
Regular flow more feasible
7.11
Low
Flow
becomes
continuous
Regular flow more important
7.12
Volume and
variety
Layout selection steps

Decision 1
Process type
Strategic
performance
objectives
Decision 2
Basic layout type
Project process
Professional services
Jobbing process
Service shops
Batch process
Mass services
Mass process
Continuous process
Fixed position layout
Process layout
Cell layout
Product layout
Decision 3
Detailed design of
layout
The physical position

of all transforming
resources
The flow of the

operations
transformed resources
7.13
Selecting a layout type
7.14
1) The nature of the basic layout types

Manufacturing
process types
Basic layout
types
Service
process types
Project processes
processes
Project
Fixed
position layout
Professional
services
Jobbing processes
Process layout
Service shops
Batch processes
Cell layout
Mass processes
Product layout
Mass services
Continuous processes
7.15
2) Advantages and disadvantages

Fixed
Advantages
Process
Product
- Very high mix

position
and product
layout
flexibility
- High mix and

product
flexibility
layout
- Good compromise
between
cost and
layout
flexibility
Lo- w unit costs for high

volume
layout
- Product/customer
not moved or
disturbed.
- Relatively robust
if in the case of
disruptions
- Fast throughput.
- Gives Opportunities
for specialization of
equipment
- High variety of
tasks for staff
- Easy supervision
of equipment of
plant
- Group work can

result in good
motivation
- Gives Opportunities
for specialization of
equipment
Low utilization of
resources.
- Very high unit cost.
Disadvantages
Cell
Can have very high

WIP
- Scheduling space
and activities can be
Complex flow.
difficult.
Can be costly to
rearrange existing
layout
Can need more plant
and equipment
Can have low mix and

flexibility
Not very robust to
disruption
Work can be very
repetitive.
7.16
(a) The basic layout types have different fixed and

variable cost characteristics which seem to determine
which one to use. (b) In practice the uncertainty about
the exact fixed and variable costs of each layout means
the decision can rarely be made on cost alone
(b)
Costs
Costs
(a)
Fixed-position
Process
Cell
Product
Use
Use
fixed- process
position
Use
cell
Use
product
Volume
3) Consider total cost

Volume
Use product
Use cell or product
Use process or cell or product
Use process or cell
Use process
Use fixed-position or process
Use fixed-position
7.17
Detailed design of a layout
7.18
Fixed position layout design:
The location of resources for each project is unique

and it will be determined on the convenience of
transforming resources themselves.
Although there are techniques which held to locate
resources on fixed position layouts, they are not
widely used because this layout can be very
complex and planned schedules do change
frequently.
7.19
Process layout design:
When cost of traveling is important:

Collecting information such as:
number of loads per day
cost per distance traveled
When process relationship is important
Relationship chart
Collecting information in process layout
7.20
(a)
LOADS/DAY
To
From
A
B
17
13
(b)
30
10
30
10
20
20
70
30
10
10
10
LOADS/DAY
If direction is not
important, collapses
to
10
30
30
60
20
30
80
40
7.21
(c)
LOADS/DAY
A
A
B
30
30
60
20
(d)
LOADS/DAY
A
B
30
C
C
D
80
Or alternatively
40
D
E
30
30
40
80
60
30
20
7.22
(e)
LOADS/DAY
To
From
A
B
17
13
(f) UNIT COST/DISTANCE TRAVELLED

D
To
From
30
10
20
10
10
10
20
10
30
10
70
30
10
10
If cost of flow differs

between work
centers, combine
with
10
2
10
7.23
(g) DAILY COST/DISTANCE TRAVELLED

To
From
A
B
To give
34
39
60
20
60
60
20
300
20
140
300
20
20
20
7.24
(h) DAILY COST/DISTANCE TRAVELLED

To
From
A
B
34
39
C
300
20
60
20
60
60
140
300
20
20
20
(i) DAILY COST/DISTANCE TRAVELLED
If direction is not
important, collapses
to
20
73
80
360
40
80
160
320
A relationship chart
7.25
DEPARTMENT
X
Metrology
CODE
A
E
I
O
U
X
CLOSENESS
Absolute ly ne ce ssa
ry
Espe cially important
Important
Ordinary close ne ss
Unimportant
Unde sirable
E
Electronic testing
A
I
Analysis
O
U
Ultrasonic testing
X
U
O
I
Fatigue testing
X
U
U
O
E
Impact testing
7.26
Cell layout design

1)
Cells in an operation can be created based on two

interrelated decisions:
1)
2)
What is the extent and nature of the cell i.e. the

amount of direct and indirect resources the cell has as
shown in Fig 7.28
Which resources to allocate to which cell using:
i.
ii.
Cluster analysis which process group naturally together

Parts and family coding based on similar characteristics
of parts of products
OR
2) Production Flow Analysis (PFA)
Examines both product requirement and process grouping
(See Fig. 7.31)
7.27
Types of cell
High
e.g. Specialist process

manufacturing cell
Internal audit group
in a bank
Amount of indirect
resources included
in the cell
e.g. Plant-within-a-plant
manufacturing
operation
Maternity unit
in a hospital
Low
e.g. Small multi-machine
manufacturing cell
Joint reference and
copying room in a
library
e.g. Complete
component
manufacturing cell
Proportion of
the resources
needed to
complete the
High transformation
included in the
cell
Lunch and snack

produce area in
supermarket
Low
(a) and (b) Using production flow analysis

to allocate machines to cells
(a)
1
Machines
X
X
X
X
X
X
6
3
Cell A
X
X
Cell B
8
2
5
Product
X
X
6
X
(b)
Product
Machines
7.28
Cell C
7.29
Product layout design

1)
Product type layout is designed based on a

technique called line balancing. The technique
consist of the following steps:
1)
2)
3)
4)
Calculating the required cycle time.

Calculating the number of stages.
Producing a precedence diagram.
Finally allocating activities to the stages.
7.30
Cycle time:
It is the time between completed products emerging from the
process.
Example:
Suppose the regional back-office operation of a large bank is
designing an operation which will process its mortgage
applications. The number of applications to be processed is 160
per week and the time available to process the applications is 40
hours per week.
Cycle time = 40
= 1/4 hours = 15 minutes
160
1 product every 15 minutes
7.31
Number of stages
Required no. of stages = total work content
required cycle time
Where the total work content is the total quantity of work involved in
producing the product given in time.
Example:
Suppose that the bank in the previous example calculated that the
average total work content of processing a mortgage application is 60
minutes. The number of stages needed to produce a processed
application every 15 minutes can be calculated
Required no. of stages = 60 minutes
=
4 stages
15 minutes
If you get a fraction round it up to the higher whole number.
7.32
Precedence diagram
This is a diagram representing the ordering of the elements which
comprise the total work content of the product or service.
Two rules when constructing the diagram:
1. The circles which represent the elements are drawn as
far to the left as possible.
2. None of the arrows which shows the precedence of the
elements should be vertical.
0.17 mins
e
0.25 mins
0.30 mins
a
0.12 mins
0.36 mins
0.05 mins
0.25 mins
0.10 mins
h
0.08 mins
7.33
Allocating activities to the stages

The general approach is to allocate elements from the precedence
diagram to the first stage, starting from the left, until the
work allocated to the stage is as close to, but less than, the
cycle time.
When the stage is full of work without exceeding the cycle time,
move to the next stage.
Two rules help to decide which activities to allocate to a stage:
1.
2.
Choose the largest that will fit into the time remaining at
the stage
Choose the element with the most followers.
7.34
Balancing loss
The effectiveness of the line balancing activity is measured by the
balancing loss.
This is the time wasted through the unequal allocation of work as
a percentage of the total time invested in processing the product
or service.
Balancing loss =
Total idle time

No. of stages x Cycle time
Balancing loss is that proportion of the time

invested in processing the product or service
which is not used productively
7.35
An ideal balance where work is

allocated equally between the stages
But if work is not equally allocated the

cycle time will increase and
balancing losses will occur
3.5
Cycle time = 3.0 mins
3.0
2.5
Load
Load
2.5
1.5
1
2.5
2.2
2.3
1.5
1
0.5
0.5
0
1
Stage
Work allocated to stage

Idle time
Stage
Calculating balancing loss:

Idle time every cycle =(3.0 - 2.3) +
(3.0 - 2.5) +
(3.0 - 2.2) = 2.0 mins
Balancing loss
=
2
4 x 3.0
= 0.1667
= 16.67%
7.36
Worked Example
Consider Karlstad Kakes, a manufacturer of specialty cakes, which has
recently obtained contract to supply a major supermarket chain with a specialty
cake in the shape of a space rocket. It has been decided that the volumes
required by the supermarket warrant a special production line to perform the
finishing, decorating and packing of the cake. This line would have to carry
out the elements shown in the next slide, which also shows the precedence
diagram for the total job. The initial order from the supermarket is for 5000
cakes a week and the number of hours worked by the factory is 40 per week.
From this:
The required cycle time = 40 hrs x 60 mins = 0.48 mins
5000
The required number of stages = 1.68 mins (total work content)
0.48 mins (required cycle time)
= 3.5 stages
Element listing and precedence diagram

for Karlstad Kates
7.37
Element
Element
Element
Element
Element
Element
Element
Element
Element
ab
- De-tin and trim
0.12 mins
- Reshape with off-cuts
0.30 mins
c
d
- Clad in almond fondant
0.36 mins
- Clad in white fondant
0.25 mins
- Decorate, red icing
0.17 mins
- Decorate, green icing
0.05 mins
- Decorate, blue icing
0.10 mins
- Affix transfers
0.08 mins
- Transfer to base and pack
0.25 mins
e
f
g
h
i
Total work content = 1.68 mins

0.17 mins
e
0.25 mins
0.30 mins
a
0.12 mins
0.05 mins
0.36 mins
0.25 mins
0.10 mins
h
0.08 mins
Allocation of elements to stages and

balancing loss for Karlstad Kates
7.38
Stage 1
Stage 2
Stage 3
0.17 mins
Stage 4
e
0.25 mins
0.30 mins
0.12 mins
0.36 mins
0.05 mins
0.25 mins
0.10 mins
h
0.08 mins
0.6
0.5
0.4
Idle time every cycle = (0.48 - 0.42) + (0.48 - 0.36) + (0.48 - 0.42) = 0.24 mins
Proportion of idle time per cycle = 0.24 = 12.5%
4 x 0.48
0.3
0.2
0.1
0
1

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7.

Layout and Flow

Nigel Slack, Stuart Chambers & Robert Johnston, 2004

Operations Management, 4E: Chapter 7

Operations Management, 4E: Chapter 7

Fixed position layout

In a fixed position layout, the transformed resource

Nigel Slack, Stuart Chambers & Robert Johnston, 2004

Operations Management, 4E: Chapter 7

In a process layout, similar processes or processes

It is convenient to group them together or

Different products of customer have different

Nigel Slack, Stuart Chambers & Robert Johnston, 2004

Operations Management, 4E: Chapter 7

An example of a process layout in a library

In a cell layout, the transformed resources entering

Nigel Slack, Stuart Chambers & Robert Johnston, 2004

Operations Management, 4E: Chapter 7

The ground floor plan of a department store

Nigel Slack, Stuart Chambers & Robert Johnston, 2004

Operations Management, 4E: Chapter 7

In a product layout, the transformed resource flow

Nigel Slack, Stuart Chambers & Robert Johnston, 2004

Operations Management, 4E: Chapter 7

An army induction centre with uses

Nigel Slack, Stuart Chambers & Robert Johnston, 2004

Operations Management, 4E: Chapter 7

A restaurant complex with all four basic

Cell layout buffet

Process layout kitchen

Nigel Slack, Stuart Chambers & Robert Johnston, 2004

Operations Management, 4E: Chapter 7

Regular flow more feasible

Nigel Slack, Stuart Chambers & Robert Johnston, 2004

Operations Management, 4E: Chapter 7

Layout selection steps

The physical position

The flow of the

Operations Management, 4E: Chapter 7

Selecting a layout type

Nigel Slack, Stuart Chambers & Robert Johnston, 2004

Operations Management, 4E: Chapter 7

1) The nature of the basic layout types

Nigel Slack, Stuart Chambers & Robert Johnston, 2004

Operations Management, 4E: Chapter 7

2) Advantages and disadvantages

- Very high mix

- High mix and

Lo- w unit costs for high

- Group work can

Can have very high

Nigel Slack, Stuart Chambers & Robert Johnston, 2004

Can have low mix and

Operations Management, 4E: Chapter 7

(a) The basic layout types have different fixed and

3) Consider total cost

Detailed design of a layout

Nigel Slack, Stuart Chambers & Robert Johnston, 2004

Operations Management, 4E: Chapter 7

Fixed position layout design:

The location of resources for each project is unique

Nigel Slack, Stuart Chambers & Robert Johnston, 2004

Operations Management, 4E: Chapter 7

Process layout design: