LAYOUT DECISIONS

W S William
 Facility Layout

Facility layout refers to arrangement of

machines, departments, workstations,
storage areas , aisles and common areas
within an existing or proposed facility.
 Objectives of Facility Layout

 Minimize material handling costs

 Utilize space efficiently
 Utilize labor efficiently
 Eliminate bottlenecks
 Facilitate communication and interaction between workers, between workers
and their supervisors, or between workers and customers
 Reduce manufacturing cycle time or customer service time
 Eliminate waste or redundant movement
 Facilitate the entry, exit, and placement of material, products, or people
 Incorporate safety and security measures
 Promote product and service quality
 Encourage proper maintenance activities
 Provide a visual control of operations or activities
 Provide flexibility to adapt to changing conditions
Methodology for Product Layout
 Steps in Developing Product Oriented Layout

1. Draw the precedence diagram

2. Determine the required cycle time (C) ; C = Production
time per day / output per day (in units)
3. Determine the theoretical number of work stations ; Nt =
Sum of tasks time / cycle time
4. Select a rule by which tasks are to be assigned to work
stations and a secondary rule to break the ties
5. Efficiency = Sum of the tasks time / (actual number of
work stations x cycle time)
6. Balance delay = 1- efficiency
PROCESS LAYOUT
Emergency Room Layout

E.R.Triage Patient A -
broken leg
room
Patient B - erratic
pacemaker

Hallway

E.R. beds Pharmacy Billing/exit

Steps in Developing a Process-Oriented Layout

1 Construct a “From-To matrix”

2 Determine space requirements for each
department
3 Develop an initial schematic diagram
4 Determine the cost of this layout
5 By trial-and-error (or more sophisticated
means), try to improve the initial layout
6 Prepare a detailed plan that evaluates factors
in addition to transportation cost
Cost of Process-Oriented Layout
n n
Minimize cost   X ijC ij
i 1 j1

where n  total number of work centers

or department s
i, j  individual department s
X ij  number of loads moved from
department i to department j
C ij  cost to move a load between
department i and department j
 Interdepartmental Flow of Parts
1 2 3 4 5 6
1 50 100 0 0 20
2 30 50 10 0

3 20 0 100

4 50 0
5 0
6
Interdepartmental Flow Graph Showing Number of Weekly Loads

100

1 2 3
50 30

100

10

4 5 6
50
 Possible Layout 1
Room 1 Room 2 Room 2
Assembly Printing Machine Shop
Department Department Department
(1) (2) (3)

Receiving Shipping Testing 40’

Department Department Department
(4) (5) (6)

Room 4 Room 5 Room 6

60’
Interdepartmental Flow Graph Showing Number of Weekly Loads

30

1 2 3
50 100

100

4 5 6
50
 Possible Layout 3
Room 1 Room 2 Room 2
Painting Assembly Machine Shop
Department Department Department
(2) (1) (3)

Receiving Shipping Testing 40’

Department Department Department
(4) (5) (6)

Room 4 Room 5 Room 6

60’
 Relationship Chart
Val Closeness
1 President .
O
2 Chief Technology Officer U A Absolutely
A A necessary
3 Engineer’s Area I I
O I I
4 Secretary I I U E Especially
A I O O important
5 Office entrance A E U O
X E E U I Important
7 Equipment cabinet U A O
O U I O Ordinary
8 Photocopy equipment O X
U A OK
9 Storage room E
E U Unimporta
9 Storage room nt
X Not
desirable
CELL LAYOUT
 Cellular Layout HM

VM

1. Identify families of Worker 3

VM
parts with similar
flow paths L

2. Group machines
into cells based
on part families Worker 2
G
3. Arrange cells so
L
material
movement is Final
inspection
minimized
4. Locate large Finished
part
S Worker 1
shared machines
at point of use In Out
Improving Layouts by Moving to the Work Cell Concept
Rabbit-Chase Cell
U-Line Cell
 Requirements for Cellular Production

• Identification of families of products - group

technology codes
• High level of training and flexibility on the part of
the employees
• Either staff support or flexible, imaginative
employees to establish the work cells initially
 Advantages/Disadvantages of Cellular Layout

Advantages Disadvantages
 Reduced material  Inadequate part families
handling and transit  Poorly balanced cells
time  Expanded training
 Reduced setup time and scheduling
 Reduced work-in- of workers
process inventory  Increased capital
 Better use of human investment
resources
 Easier to control
 Easier to automate
 Procedure for developing a cellular layout

• Identify families of parts with that follows similar flow

paths
• Regrouping machines (from the process layout
departments) into manufacturing cells according to the
processing requirements of each part family.
• Arranging the manufacturing cells in relation to each
other so that material movement is minimized
• Locating large shared machines at point of use that
cannot be split among cells near to the cells that use
them
 Cummins Engine ( Indiana )

100,000 parts in its catalog

one engine family has

 86 different flywheels
 46 flywheel housings
 17 starter motors
 12 possible mountings
The Indiana plant has 15 cells
Cummins invested $ 60,0000 for new m/cs, $105,000 for additional fixtures and
tools
In the first year,
 Floor space requirements – reduce by 25%
 Scrap30%
 W.I.P inventory by 90%
 Saving in labor cost : > $ 1 Million
SPECIAL LAYOUT
 Retail/Service Layout

• Design maximizes product exposure to

customers
• Decision variables
– Store flow pattern
– Allocation of (shelf) space to products
• Types Video
– Grid design
– Free-flow design
 Retail Layouts - Some Rules of Thumb

• Locate high-draw items around the periphery of the

store
• Use prominent locations such as the first or last aisle
for high-impulse and high margin items
• Remove crossover aisles that allow customers the
opportunity to move between aisles
• Distribute what are known in the trade as “power
items” (items that may dominate a shopping trip) to
both sides of an aisle, and disperse them to increase
the viewing of other items
• Use end aisle locations because they have a very high
exposure rate
 Warehouse Layout

• Design balances space (cube)

utilization & handling cost
• Similar to process layout
– Items moved between dock
& various storage areas
• Optimum layout depends on
• Variety of items
stored
• Number of items picked
 Warehouse Layout Floor Plan

Conveyor
Truck

Zones Order Picker

 Cross Docking
• Transferring goods
– from incoming trucks In-coming
at receiving docks
– to outgoing trucks at Outgoing
shipping docks

• Avoids placing goods into

storage

• Requires suppliers
provide effective
addressing (bar codes)
and packaging that
provides for rapid © 1995 Corel Corp.
© 1984-1994 T/Maker Co.

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