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Facility Location
2
OBJECTIVES
Issues in Facility Location
Competitive Imperatives
Impacting Location
The need to produce close to the
customer due to time-based
competition, trade agreements, and
shipping costs
Proximity to Customers
Business Climate
Total Costs
Infrastructure
Quality of Labor
Suppliers
Other Facilities
Types of Layouts:
1. Process Layout : Same type of machinery are
grouped together in one area. Stress on similar
process in one place.
2.Product Layout: Also called “line” layout.
Machinery are in sequence of the operation
process.
3. Combination Layout: Machinery are laid in
sequence, yet, similar machines are grouped
together.
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PLANT LAYOUT 14
Types of Layouts:
4. Cellular or Group Layout: Machineries are
grouped in to cells, in process or product layout.
Combination of cells make up the whole unit.
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PLANT LAYOUT 15
Washing and
R. M. Store
dying
Cutting Stitching
F. G. Store
Shirt - Jeans - 15
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PLANT LAYOUT 16
Stitching
Washing/Dying
Cutting
Insp.
Ironing
Packing Insp. Finishing
F. G. Store
Insp.
Packing Insp. Finishing
Shirt - Jeans - 16
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PLANT LAYOUT 17
M/c 4
M/c 2
Insp. M/c 3
Paint
Body shop Gear Shop Line 2
R.
M.
Assembly Inspection Despatch
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PLANT LAYOUT 19
Combined Layout:
Cutting Pckg.
Insp. Stitching Insp. Finishing Insp. Iron
R KURTA
M F
AISLE
SHIRT
G
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20
Facility Layout
Facility Layout
Defined
Formats
Fixed-Position Layout
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
Determine
– The “best” locations for each department,
where best means maximizing flow, which
minimizing costs
Approach
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."
Code Reason
1 Type of customer
2 Ease of supervision
3 Common personnel
4 Contact necessary
6 Psychology
Example of Systematic
Layout Planning:
Importance of Closeness
Line Numerical
Value Closeness
code weights
A Absolutely necessary 16
E Especially important 8
I Important 4
O Ordinary closeness OK 2
U Unimportant 0
X Undesirable 80
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29
Example of Systematic Layout
Planning: Relating Reasons and
Importance
Area
From To
2 3 4 5 (sq. ft.)
I U A U
1. Credit department 100
6 -- 4 --
U I A
2. Toy department 400
-- 1 1,6
3. Wine department
Note
Notehere
here U X
300
that
thatthe
the(1)
(1) -- 1
Credit NoteX here
Note herethat
that
4. Camera department CreditDept.
Dept. 100
and the
the (2) ToyDept.
1(2) Toy Dept.
and(2)
(2)Toy
Toy
Dept. and
andthe
the(5)
(5)100
5. Candy department Dept.are
are
given Candy
CandyDept.
Dept.are
are
givenaahigh
high
rating given
givenaahigh
high
Closeness rating Letter
ratingofof6.6.
Reason for rating Number
rating
ratingof
of6.
6.
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30
Example of Systematic Layout
Planning:
Initial Relationship Diagram
1 E 3 The
Thenumber
numberof oflines
lines
here
hererepresent
representpaths
paths
I U U required
requiredto tobe
betaken
takeninin
4 transactions
transactionsbetween
between
the
thedepartments.
departments. The The
2 5
A more
morelines,
lines,the
themore
more
Note the
theinteraction
interactionbetween
between
Notehere
hereagain,
again,Depts.
Depts.(1)
(1)and
and
(2) departments.
departments.
(2)are
arelinked
linkedtogether,
together,and
and
Depts.
Depts.(2)
(2)and
and(5)
(5)are
arelinked
linked
together
togetherby
bymultiple
multiplelines
linesor
or
required
requiredtransactions.
transactions.
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31
5 2 4 2
3 20 ft
3 1 5 1 4
Note
Noteininthe
the
50 ft Final
FinalLayout
Layout
that
thatDepts.
Depts.
Initial Layout Final Layout (1)
(1)and
and(5)
(5)
are
arenot
notboth
both
Ignoring space and Adjusted by square
building constraints placed
placed
footage and building
size
directly
directlynext
next
to
toDept.
Dept.(2).
(2).
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32
Group Technology:
Benefits
1. Better human relations
Group Technology:
Transition from Process Layout
1. Grouping parts into families that
follow a common sequence of steps
Question:
Question: What
What are
are our
our primary
primary
considerations
considerations for
for aa fixed
fixed position
position
layout?
layout?
Answer:
Answer: Arranging
Arranging materials
materials and
and equipment
equipment
concentrically
concentrically around
around the
the production
production point
point in
in
their
their order
order of
of use.
use.
– Ambient Conditions
– Spatial Layout and Functionality
– Signs, Symbols, and Artifacts