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Chapter 10 Facility Layout

Operations Management
by
R. Dan Reid & Nada R. Sanders
4th Edition Wiley 2010

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Learning Objectives
Define layout planning and explain its
importance
Identify and describe different types of
layouts
Compare process layouts & product
layouts
Describe the steps involved in designing a
process layout

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Learning Objectives cont
Describe the steps involved in designing a
product layout
Explain the advantages of hybrid layouts
Define the meaning of group technology
(cell) layouts

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What Is Layout Planning?
Layout planning is deciding the best physical arrangement of
all resources within a facility
Facility resource arrangement can significantly affect
productivity
Two broad categories of operations:
Intermittent processing systems low volume of many different
products
Continuous processing systems high volume of a few
standardized products
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Types of Layouts
Four basic layout types consisting of:
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 to large to
move; e.g. a building
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Process Layouts
Process layout unique characteristics include:

Resources used are general purpose
Facilities are less capital intensive
Facilities are more labor intensive
Resources have greater flexibility
Processing rates are slower
Material handling costs are higher

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Process Layouts cont

Scheduling resources & work flow is more
complex
Space requirements are higher

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Product Layouts
Product layout unique characteristics are:
Resources are specialized
Facilities are capital intensive
Processing rates are faster
Material handling costs are lower
Space requirements for inventory storage are
lower
Flexibility is low relative to the market


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Process vs. Product Layouts
Here are the characteristic differences between a process
and product layout.

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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

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Fixed-Position Layout
Used when product is large
Product is difficult or impossible to move,
i.e. very large or fixed
All resources must be brought to the site
Scheduling of crews and resources is a
challenge
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Designing Process Layouts
Step 1: Gather information:
Space needed, space available, identify closeness
measures
Step 2: Develop alternative block plans:
Using trial-and-error or decision support tools
Step 3: Develop a detailed layout:
Consider exact sizes/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

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Special Cases of Process
Layouts
A number of unique process layouts require
special attention. We will look at two of
these:
Warehouse layouts
Office Layouts
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Warehouse Layouts pg 24 pdf
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 modifies the
traditional warehouse layouts; more docks, less
storage space, and less order picking

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Office Layouts pg24 pdf
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
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Designing Product Layouts
Designing product layouts requires
consideration of:
Sequence of tasks to be performed by each
workstation
Logical order
Speed considerations line balancing

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Designing Product Layouts
cont
Step 1: Identify tasks & immediate predecessors
Step 2: Determine output rate
Step 3: Determine cycle time
Step 4: Compute the Theoretical Minimum number of
Stations
Step 5: Assign tasks to workstations (balance the
line)
Step 6: Compute efficiency, idle time & balance delay
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Step 1: Identify Tasks &
Immediate Predecessors
Example 10.4 Vicki's Pizzeria and the Precedence Diagram
Immediate Task Time
Work Element Task Description Predecessor (seconds
A Roll dough None 50
B Place on cardboard backing A 5
C Sprinkle cheese B 25
D Spread Sauce C 15
E Add pepperoni D 12
F Add sausage D 10
G Add mushrooms D 15
H Shrinkwrap pizza E,F,G 18
I Pack in box H 15
Total task time 165
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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):




sec./unit 60
units/hr 60
sec/min 60 x min/hr 60
units/hr output desired
sec./day time available
) (sec./unit time Cycle
hour per pizzas or units/hr, 72
sec./unit 50
sec./hr. 3600
time task bottleneck
time available
output Maximum
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Layout Calculations cont
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


stations 3 or 2.75,
n sec/statio 60
seconds 165
time cycle
times task
TM

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Layout Calculations cont
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
Workstation Eligible task Task Selected Task time Idle time
A A 50 10
B B 5 5
C C 25 35
D D 15 20
E, F, G G 15 5
E, F E 12 48
F F 10 38
H H 18 20
I I 15 5
1
2
3
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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%
91.7% 100
sec. 60 x stations 3
sec. 165
NC
t
(%) Efficiency

8.3% 91.7% 100% delay Balance

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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

Number of Product Models produced
Single
Mixed-model lines
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Group Technology (CELL)
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

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Process Flows before the Use of GT Cells
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Process Flows after the Use of GT Cells
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Facility Layout Across the
Organization
Layout planning is organizationally important
for an efficient operations
Marketing is affected by layout especially
when clients come to the site
Human resources is affected as layout impacts
people
Finance is involved as layout changes can be
costly endeavors
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Facility Layout within OM:
How it all fits together
Layout decisions are directly related to issues of product
design and process selection (Ch 3).
Job design, as process layouts tend to require greater
worker skills than do product layouts (Ch 11).
Degree of automation, as product layouts tend to be
more capital intensive and use more automation
compared to process layouts (Ch 3).
Layout decisions are also affected by implementation of
just-in-time (JIT) systems, which dictate a line flow and
the use of group technology (GT) cells (Ch 7).
As layout decisions specify the flow of goods through the
facility, they impact all other aspects of operations
management.
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Chapter 10 Highlights
Layout planning is deciding on the best physical
arrangement of all resources that consumes space within a
facility. Proper layout planning is highly important for the
efficient running of a business. Otherwise, there can be
much wasted time and energy, as well as confusion.

There are four basic types of layouts: process, product,
hybrid, and fixed position. Process layouts group
resources based on similar processes. Product layouts
arrange resources in straight-line fashion. Hybrid layouts
combine elements of both process and product layouts.
Fixed-position layouts occur when the product is larger
and cannot be moved.
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Chapter 10 Highlights cont
Process layouts provide much flexibility and allow for the
production of many products with differing characteristics.
Product layouts, on the other hand, provide greater
efficiency when producing one type of product.

The steps for designing process layouts are (1) gather
information about space needs, space availability, and
closeness requirements of departments; (2) developing a
block plan or schematic of the layout; and (3) developing a
detailed layout.
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Chapter 10 Highlights cont
The steps for designing an product layout are (1) identify
tasks that need to be performed and their immediate
predecessors; (2) determine output rate; (3) determine
cycle time; (4) computing the theoretical minimum number
of work stations, (5) assigning tasks to workstations; and
(6) computing efficiency and balance delay.
Hybrids layouts have advantages over other layout types
because they combine elements of both process and
product layouts to increase efficiency.
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Chapter 10 Highlights cont
An example of hybrid layouts is group technology or cell
layouts. Group technology is the process of crating
groupings of products based on similar processing
requirements. Cells are created for each grouping of
products, resulting in a more orderly flow of products
through the facility.
Chapter 10 Homework Hints
10.8: Assign sites based on number of
trips (refer to Example 10.2). There is no
strategy regarding which side of the aisle
to assignjust nearness to the dock.
10.16: Follow the steps. This is a product
layout (assembly line balancing). The
book has an example on pages 360-366,
which is also on the slides covered in class.
Sample Problem10.7



dock
aisle
Department Category Trips to/from
dock
1 Sports t-shirts 50
2 Mens t-shirts 63
3 Womens t-shirts 35
4 Childrens t-shirts 55
5 Fashion t-shirts 48
6 Undershirts 60
Sample Problem 10.15






Draw precedence diagram
Determine cycle timedemand = 50 units/hr
Theoretical minimum no. of work stations
Assign tasks to workstations using cycle time
Efficiency and balance delay of line?
Bottleneck?
Maximum output?

Task Imm. predecessor Task time (sec)
A None 55
B A 30
C A 22
D B 35
E B, C 50
F C 15
G F 5
H G 10
TOTAL 222