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Lathing Milling D Drilling D

M Grinding


Assembly G A A A G G G

Receiving and shipping

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Ford Production Plant Layout Ford-Brazil

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What is a Layout?
Layout refers to the physical arrangement of economic activity centers for processes within a facility. A center can be anything that consumes space.
The Layout decisions are: What centers are needed? How much space and capacity are needed? Layout Configuration? Where to locate them?
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Strategic Issues
Good layouts improve productivity and efficiency. Altering a layout can affect an organization and how well it meets its competitive priorities in the following ways:
1. Increasing customer satisfaction and sales at a retail

2. Facilitating the flow of materials and information
3. Increasing the efficient utilization of labor and

4. Reducing hazards to workers
5. Improving employee morale 6. Improving communication
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Basic Layouts
Fixed Position
Line-Flow (Product) Flexible-Flow (Process) Hybrid Retail
Not directly concerned with the transformation process. Directly concerned with layout of the transformation process.

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Qualities of a good layout

Effective & efficient use of space Facilitates good communication Minimizes costs Meets quality of work life needs
noise safety lighting temperature social aesthetics
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We are going arrange activity centers to optimize workflow and time utilization, but this list of intangible factors is also very important and very much affected by the layout.

Flexible Flow Layout A job shop has a flexible-flow layout.

Different jobs have different process requirements and different flow patterns.








Milling machines


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Line Flow Layout

A production line has a line-flow layout.

Station 1

Station 2

Station 3

Station 4

Also known as a product-focused layout because work (people, workstations, machines) are focused on the product as it moves down the line.

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Warehouse/Storage Layouts
1. Optimal utilization of storage space at

minimum cost 2. Minimizing the cost of handling and moving materials and the cost of storing them. Flows are to and from (in and out) of the warehouse rather than in between internal areas.
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Sample Warehouse Problem

Dept. Trips Areas A 330 3 B 240 1 C 180 2 D 460 4 E 300 1 F 60 1 G 280 2
Trips are round trips (to and from the warehouse) because what goes in the warehouse must eventually come out. There are no one-way trips. Areas are the number of areas assigned to each department.

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Sample Warehouse Problem

Dept. Trips Areas Trips Priority A 330 3 110 5 B 240 1 240 2 C 180 2 90 6 D 460 4 115 4 E 300 1 300 1 F 60 1 60 7 G 280 2 140 3

To solve the layout, divide the # of trips each department makes by the number of areas in that department to get trips-per-area. Then prioritize the departments by the # of trips per area.







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Spaces are assigned closest to the dock based on the priority.

Retail Layout
1. Maximize the net profit per square

foot of display space. 2. Maximum customer exposure to as many products as possible.

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Fixed Position Layout

Used where the product remains in a fixed position.
(Usually large construction such as building a bridge)

Workers & equipment move to and from the product. Poorest space utilization Most difficult type of layout to make efficient. Process is the extreme in Low-volume, High 2013 Lew Hofmann variety.

Hybrid Layouts for Fixed Position

If possible, a line-flow and/or a flexible-flow layout is used along with a fixed-position layout in order to improve efficiency. Fixed + Flexible Flow (Process) Layouts
Prefab. Homes are made in a flexible flow layout and then assembled at a Fixed Position Layout. Fixed + Line-Flow (Product) Aircraft parts are made in a line-flow and then delivered to a Fixed-Position location for assembly.

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Flexible-Flow (Process) Layout

Objective: To minimize movement of people, parts, and materials.
Flexible flow is common for low-volume, high-variety processes. Resources are grouped by function or process. Typically a variety of products (or customers) move from one area to another depending on what activity is required. (TCNJ)
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Flexible-Flow (process) Layout

People & machines can be moved around and used in a variety of ways. (flexible) Uses general purpose equipment so it is a less capital-intensive process.

Higher labor skills are needed Higher inventory and inventory-related costs Higher costs of moving materials since more movement is required. Longer processing time (start to end) Poor utilization of equipment.
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Designing Flexible-Flow Layouts

Step 1: Gather information
What are the activity centers? How much space does each activity center need? Closeness factors: Which centers need to be located close to one another due to frequent interaction. Closeness matrix (Two-From matrix): A table that shows the degree of interaction between each pair of activity centers or departments. Step 2: Develop a Block plan: A plan that indicates the placement of each activity center or department.
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The Classic To-From Matrix

Used on maps for the last 100 years

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Two types of

(To-From matrices)


B 20

C 10

D 20 15

E 75

F 80 90



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20 20 80 10 75 15 90 70

Values are usually distances between two areas, but could be some other relative measure of closeness such as travel time, steps needed, trips per period of time, etc.

Step 2: Develop a Block plan A plan that indicates the placement of each department.
Department interactions (Trips per day)

Block Plan of Existing Layout B D C F E A


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20 20 80 10 75 15 90 70

To-From Matrices of Department Interactions

A A B C D E F B 20 C 10 15 70 D 20 E 75 90 F 80

Determine the distance between each interacting department using rectilinear distance.
Dept. Trips Pair Per-Day A,B 20 A,D 20 A,F 80 B,C 10 B,E 75 C,D 15 C,F 90 D,E 70 Current Distance 3 2 2 2 2 1 3 1 Total Distance 60 40 160 20 150 15 270 70 785 P
5 6 2 7 3 8 1 4
Multiply trips-per-day times the distance between areas to get total distance traveled.
Prioritize the department pairs based on total distance traveled.


Total distance is used to compare plans.

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Block Plan of Existing Layout B D C F E A

Dept. Trips Current Total P Pair Per Day Distance Distance A,B 20 3 60 5 A,D 20 2 40 6 A,F 80 2 160 2 B,C 10 2 20 7 B,E 75 2 150 3 C,D 15 1 15 8 C,F 90 3 270 1 D,E 70 1 70 4 785 Existing Layout B D C F E A New Layout E D C F A B
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New Total Distance Distance

1 1 1 3 1 1 1 2

Use a trial-anderror method of selecting a new layout based on the priorities.

Dept. Trips Current Total P New Total Pair Per Day Distance Distance Distance Distance A,B 20 3 60 5 1 20 A,D 20 2 40 6 1 20 A,F 80 2 160 2 1 80 B,C 10 2 20 7 3 30 B,E 75 2 150 3 1 75 C,D 15 1 15 8 1 15 C,F 90 3 270 1 1 90 D,E 70 1 70 4 1 70 785 400 A 47.7% improvement Existing Layout B D C F E A New Layout C D E F A B

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Space Planning

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Available Decision-Support Tools

Automated layout design program (ALDEP)
A computer software package that constructs a good layout from scratch, adding one department at a time.

Computerized Relative Allocation of Facilities Technique (CRAFT)

A trial-and-error (heuristic) method that begins with the closeness matrix and an initial block layout, and makes a series of paired exchanges of departments to find a better block plan.
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(No need to memorize these tools for the exam. Just be

More Hybrids
In addition to the common fixed-position hybrids that combine flexible flow and/or line flow with a fixed position situation, there are other hybrids that have characteristics of both a flexible-flow and a line-flow.
One-worker, multiple-machines (OWMM) cell is a one-person cell in which a worker
operates several different machines simultaneously to achieve a line flow at that particular workstation.

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One Worker, Multiple Machines

Machine 2 Machine 3

Machine 1

Materials in

Finished goods out Machine 4

Machine 5
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Group Technology
A Hybrid Layout technique used to make flexible flows more efficient.
A low-volume, flexible-flow process that uses multiple line-flows. Parts/products that have similar processing requirements are grouped into line flows. One-Worker, Many-Machines is one technique. Material Inventory is reduced Work-in-process Inventory is reduced Work flow is simplified Floor space is optimized
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Before Group Technology

Jumbled flows in a job shop without using Group Technology cells.
Lathing Milling D Drilling D

M Grinding


Assembly G A A A G G G

Receiving and shipping

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After applying Group Technology

Line flows in a job shop with three GT cells. Each of three types of jobs go through their required functional processes in a linear flow.

L Cell 1

M Cell 2 M


Assembly area A


L Cell 3


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Office Layouts
People problems dominate office layouts. Most formal procedures for designing office layouts try to maximize the proximity of workers whose jobs require frequent interaction. Privacy is another key factor in office design. Three basic types of office layouts: 1. Traditional (Private offices such as for faculty in
the School of Business or for attorneys in a law firm) 2. Office Landscaping (cubicles) 3. Activity Settings (Gym, Library) Where workers move from area to area depending on the type of work they need to do. 2013 Lew Hofmann

Line-Flow (Product) Layouts

Objective: To have a work-balanced line!
Minimize the number of workers and work stations on a production line, and give them equal (balanced) work loads

Two types of line flows that can be balanced Type Nature Flow Balancing
Cutting, milling, machining, drilling, etc.

Fabrication Lines Assembly Lines

Makes Parts Assembles Parts

Machine Paced Worker Paced

Mechanical & Engineering changes Task Changes

Assembling parts and components

Note: Waiting lines cannot be balanced because there is no work being done in the line.
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Line Balancing
The work that one person or one machine does should be balanced (in terms of time) with the work that another person or machine does on that line.

Imbalanced lines are inefficient.

Some people or machines are idle while others are working. Idleness is wasteful Unions dont tolerate unequal work loads and neither do workers.

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Work Elements
A work element is the smallest unit of work that can be done independently.
An element may be a person or a machine, or one worker operating many machines (OWMM). The goal in line balancing is to combine work elements into work stations so that each workstation has the same work load. (Or approximately the same work load.) A workstation may be one work element or many work elements.

The minimum number of workstations required for 2013 Lew Hofmann each line flow must be calculated.

Immediate Predecessors
The work element that must be completed immediately before the next element can begin. A diagram of work elements and their relationships is called a Precedence Diagram. (Similar to Project Management) Work elements are denoted by nodes (circles or squares), and contain the time required to perform that work.
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Precedence Table
A precedence table lists all of the work elements and the immediate predecessors, if any, of each element.
Work Elem. A B C D E F G H I J Time (seconds) 40 80 30 25 20 15 120 145 130 115 720 Predecessor None A D,E,F B B B A G H C,I

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Precedence Diagram
D 25 B 80 A 40 E 20 C 30

G 120
Work Elem. A B C D E F G H I J Time (seconds) 40 80 30 25 20 15 120 145 130 115 720 2013 Lew Hofmann Predecessor None A D,E,F B B B A G H C,I

J 115 F 15 I 130 H 145

Line Balancing Terms

WORK STATION: A work station is a grouping of one or more work elements to a person or machine. CYCLE TIME: Cycle time is the maximum time allowed for a workstation to complete its work on a given product/service before passing it on to the next workstation. Exceeding the cycle time at any workstation means the days production quota wont be met. NOTE: Cycle time is NOT the time it takes to do the work-elements at a workstation, but the maximum time a workstation is allocated to complete its work.
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Desired Output Rate

This is the target production output (quota) for a given period of time. (Units of output per shift or per
day, etc.)

If the cycle time is exceeded at any workstation, the desired output (quota) for the shift cannot be achieved. Line balancing focuses on combining work elements into equally-balanced workstations so as to best meet the desired output. In this example the desired output is given as 192 widgets per 8-hour shift.
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Desired Output = 192 per 8 hr shift

Computing the Cycle Time

Cycle time is the maximum time a workstation can spend working on one widget and still meet the desired output. Cycle time is how long it takes to make one widget, given a desired output rate (quota) and time period. If desired output is 192 units per 8-hour shift, how long does it take to make one widget?
Eight hours = 28,800 seconds (to make 192 widgets) 28,800 seconds / 192 = 150 seconds to make each widget
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Cycle Time (C) = 150 seconds

Theoretical Minimum # of Workstations

The Theoretical Minimum # of Workstations is the minimum number of workstations needed to achieve the desired output. A perfectly balanced line would have the minimum # of workstations, all having equal work loads (equal cycle times).
The total time for all work elements is divided by the Work Elem. Time (seconds) Predecessor 40 None cycle time, to determine theA theoretical minimum # of B 80 A C 30 D,E,F workstations needed. Theoretical Minimum # of D 25 B
workstations = the sum of all work stations divided by the cycle time
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E F G H I J 20 15 120 145 130 115 720 B B A G H C,I

Work Elem. A B C D E F G H I J

Time (seconds) 40 80 30 25 20 15 120 145 130 115 720

Predecessor None A D,E,F B B B A G H C,I

Desired Output = 192 per 8 hr shift Cycle Time = 150

Computing the Theoretical Minimum # of Work Stations

Sum of all work element times (720 seconds)

Cycle Time of 150 seconds

= 4.8 workstations

The number of workstations must be a whole number, so in this case 4.8 has to be rounded up to 5 work stations.
(The theoretical # of workstations is thus 4.8, but the actual number of workstations has to be 5. Thus the line will not be 100% efficient.)
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Balance Delay
In most situations, as in the previous example, it is impossible to have a 100% balanced line. Usually because the theoretical minimum # workstations ends up being a fraction, and must be rounded up. or because it takes more than the minimum number of workstations to group all of the work elements. A 100% balanced line would be 100% efficient. No one is waiting for anyone else. (Zero balance delay) Balance delay is the amount (%) you fall short of 2013 Lew Hofmann 100% efficiency. (There is some idleness.)

Desired Output = 192 per 8 hr shift Cycle Time = 150 Minimum # workstations = 5
Work Elem. A B C D E F G H I J Time (seconds) 40 80 30 25 20 15 120 145 130 115 720 Predecessor None A D,E,F B B B A G H C,I

Computing Efficiency
Sum of Element Times
(Min. # Workstations x Cycle Time)

= .96

(5 x 150)

96% efficient Efficiency can also be computed by dividing the minimum # of workstations by the actual number needed. In this case, 4.8 workstations is 96% of 5 workstations. (4.8 / 5 = .96)
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Balance Delay
Balance Delay is 100% - Efficiency 100% - 96% = 4% Balance Delay

In this example, 4% of the time there are idle workstations. This is accounted for by the fact that we cant have exactly 4.8 workstations. A perfectly balanced line is, by definition, 100% efficient and has zero balance delay.
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Establishing Workstations
Group the 10 work elements into five workstations, with each as close to the 150 second cycle time as possible.
D 25 B 80 A 40 E 20

C 30

G 120

J 115 F 15 I 130

Start with the work element that has the highest time and work down.
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H 145

In this example, there are no constraints for grouping work elements. In the real world, there would be many more elements and many constraints.

Another line balancing example: Green Grass, Inc.

Green Grass, Inc., a manufacturer of lawn & garden equipment, is designing an assembly line to produce a new type of fertilizer spreader. Using the following information, construct a precedence diagram its assembly.

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Green Grass, Inc.
B 30 A 40 C 50 G
2007 Pearson Education
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H 20 E

40 6

F 25 I 18


Output and Cycle Time

Desired output rate must be matched to the staffing or production plan.
Desired output rate (r) = 2,400 units per week. Plant operates 40 hours per week.
Cycle time (c) is the maximum time allowed for work on a unit at each station. 1 c=
r r = 2400 per week /40 hours = 60 units per hour c = 1/60 = 1 minute/unit = 60 seconds per unit

Desired Output is 60 units per hour. Cycle Time (c) is 60 seconds per unit.
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Desired Output is 60 units per hour. Cycle Time is 60 seconds per unit.

Theoretical Minimum Number of Work Stations

The Theoretical Minimum number of workstations is a bench-mark or goal. The total time required to assemble each unit (sum of all workelement times) is divided by the cycle time. Minimum # work stations = Total Work element times / Cycle Time Minimum # work stations = 244 seconds / 60 seconds = 4.067 work stations

It must be rounded up to 5 stations Idle time is the total unproductive time for all stations in the assembly of each unit. Efficiency (%) is the ratio of productive time to total time.
Efficiency = [ 244 / 5 (60) ]100 = 81.3% (or 4.067/5 = .813)

Balance Delay is the amount by which efficiency falls short of 100%. (100% - 81.3%) = 18.7%
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The goal is to cluster the work elements into 5 workstations so that the number of work-stations is minimized, and the cycle time (c) of 60 seconds is not violated. Here we use the trial-and-error method to find a solution, although commercial software packages are also available.

Line Balancing
Green Grass, Inc.
B H 20 E S4

40 6

S1 A 40
c = 60 seconds/unit TM = 5 stations Efficiency = 81.3%
2007 Pearson Education
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30 S3 S2 C 50 F 25

I G 15 18

Four Homework Problems

(Due in one week)
(No computer use is needed)

#1. Solve the warehouse layout below.


250 180 390

2 1 3

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100 190 220

1 2 1

Homework Problem # 2
The closeness matrix below shows the daily trips between six department offices. The block diagram shown is one solution being proposed. 1. Just looking at the matrix, which two offices should be located closest? 2. What is the total weighted-distance for the proposed layout? 3. Can you find a better layout?

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Homework Problem # 3: Line Balancing

Draw the precedence diagram for following situation. Using a desired output of 40 units per hour, calculate the following: Cycle Time Theoretical Minimum Efficiency

Balance Delay
Group the work elements into the Theoretical Minimum # of work stations.

Work Element A B C D E F G H

Time (Sec.) 20 55 25 40 5 35 14 40

Immed. Pred. None A B B B A D,E C,F,G

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Homework Problem # 4: Line Balancing

The desired output is 60 items in a ten-hour day. Using the work flow information provided in the table, draw a precedence diagram.

What Cycle Time corresponds to the desired output rate?

A. Identify the best possible linebalancing solution. (Note that you
may not be able to group them into the theoretical minimum number of work stations.)

Work Element A B C D E F G H I J K L

Time (min) 3 5 2 7 7 6 2 3 8 6 3 8

Immediate Predecessor(s) None A B B C,D E D,E F G H I,J K

B. What is the impact on your solution if the time for work element D increases by 3 minutes? E. What is the impact if the time for element D decreases by three minutes?
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