Chapter 10 - Facilities Layout

and Location
Outline
1. Patterns of flow
2. Types of layout
3. Facilities layout problem
4. Computerized layout techniques
5. Facilities location problem
2
Facilities layout problem
Layout: the arrangement of physical facilities
such as machines, equipment, tools, furniture
Determine the layout to optimize some
measure of production efficiency
Used for hospitals, warehouses, schools,
offices, workstations, banks, shopping centers,
airports, industrial plants
There can be multiple objectives
3
Office layout
4
Store Layout
5
Facilities layout problem
Some possible objectives:
Minimize the investment on new equipment
Minimize the time required for production
Utilize the existing space most efficiently
Provide for the convenience, safety and comfort of
the employees
Minimize the material handling cost

6
Patterns of flow
Horizontal (same floor)
Straight,
U flow,
Serpentine,
Circular,
L flow,
S flow
Vertical (multi-story structures)
7
Horizontal flows
8
Useful Information about flows
Activity relationship chart
Desirability of locating pairs of operations near
each other
From-To chart: may show
Number of material handling trips between the
pairs
The distance between the pairs (based on the
current layout)
The cost of material handling between the pairs
(based on the current layout)

9
Activity Relationship Chart
Each pair of operations is given a letter to
indicate the desirability of locating the
operations near each other.
The letter codes are:
A: Absolutely necessary
E: Especially important
I: Important
O: Ordinary importance
U: Unimportant
X: Undesirable
10
Meat Me Fast-Food Restaurant
1. Cooking burgers
2. Cooking fries
3. Packing and storing burgers
4. Drink dispensers
5. Counter servers
6. Drive-up server
For safety, 1 and 2 should not be located next
to each other

11
Activity Relationship Chart for
Meat Me Fast-Food Restaurant
12
A: Absolutely necessary
E: Especially important
I: Important
O: Ordinary importance
U: Unimportant
X: Undesirable
Department Assembly Painting Machine Receiving Shipping Testing
(1) (2) Shop (3) (4) (5) (6)
Assembly (1)
Painting (2) 18
Machine Shop (3) 40
Receiving (4) 30
Shipping (5) 65
Testing (6) 24 30 12 46 60


18 40 30 65 24
38 75 16 30
38 22 38 12
75 22 50 46
16 38 50 60

From-To chart:
Distance between departments

Figure 9.4
13
Department Assembly Painting Machine Receiving Shipping Testing
(1) (2) Shop (3) (4) (5) (6)
Assembly (1)
Painting (2)
Machine Shop (3)
Receiving (4)
Shipping (5)
Testing (6) 12


43 26 14 40
75 60 23
45 16
22 28
45 30 60

From-To chart:
Number of materials handling trips
per day

14
Department Assembly Painting Machine Receiving Shipping Testing
(1) (2) Shop (3) (4) (5) (6)
Assembly (1)
Painting (2)
Machine Shop (3)
Receiving (4)
Shipping (5)
Testing (6) 72


154.8 208 84 520
570 900 138
342 38.4
330 280
144 30 720

From-To chart:
Materials handling cost per day
(1 trip costs $0.2)
15
Types of Layout
1. Fixed-position layout: Addresses the layout
requirements of large, bulky projects such as
ships and buildings
2. Product layout: Seeks the best personnel and
machine utilizations in repetitive or
continuous production
3. Process layout: Deals with low-volume, high-
variety production (also called job shop or
intermittent production)

16
Fixed Position Layout
17
Product layout
Suitable for high volume- standardized production
18
Product layout

Raw matl. Fabrication
Rec- storage line-part B
eiving Fabrication Planer
line-part A
Finished Lathe
goods Drill
storage Mill
Mill
Drill
Grinder
Mill

Assembly line Automatic


Small number
of
high volume
products
19
Process layout
Common in small to medium volume manufacturers minimize machine idle
time. Wide variation in product mix. 20
Types of Layout

4. Layouts based on group technology
Reduced WIP inventory
Reduced setup times
Reduced materials handling cost
Better scheduling

21
Group Technology Layout
Parts must be identified and grouped based on similarities mfg
function or design. Part families for parts and cells for part families
Wide variety of parts-moderate to high volumes. 10000 parts in 50
fam.
22
Process Layout Example
Arrange six departments in a factory to
minimize the materials handling costs.
Each department is 20 x 20 meters
The building is 60 x 40 meters.
If the departments are adjacent, the unit
materials handling cost is 1, otherwise 2.
From-to-chart of the loads between the
departments is given.

23
Department Assembly Painting Machine Receiving Shipping Testing
(1) (2) Shop (3) (4) (5) (6)
Assembly (1)
Painting (2)
Machine Shop (3)
Receiving (4)
Shipping (5)
Testing (6)


50 100 0 0 20
30 50 10 0
20 0 100
50 0
0

From-To chart:
Number of loads per week (m
ij
)

24
Solution
1. Construct a from-to matrix for distance
2. Develop an initial schematic diagram
3. Determine the cost of this layout
4. Try to improve the layout
25








60
40
Possible locations
(4) (5) (6)

(1) (2) (3)
26
Distance matrix among locations (c
kl
)
If adjacent 1, otherwise 2.


(1) (2) (3) (4) (5) (6)
(1)
(2)
(3)
(4)
(5)
(6)


1 2 1 1 2
1 1 1 1
2 1 1
1 2
1

27
Area 1 Area 2 Area 3






Area 4 Area 5 Area 6
60
40
Initial layout

Receiving Shipping Testing
Department Department Department
(4) (5) (6)
Assembly Painting Machine Shop
Department Department Department
(1) (2) (3)
28
Initial layout with material flow data
100
50
50
10
100
30
Machine
Shop (3)
Testing
(6)
Shipping
(5)
Receiving
(4)
Assembly
(1)
Painting
(2)
29
Total cost of the initial layout
Cost = $50 + $200 + $40
(1 and 2) (1 and 3) (1 and 6)

+ $30 + $50 + $10
(2 and 3) (2 and 4) (2 and 5)

+ $40 + $100 + $50
(3 and 4) (3 and 6) (4 and 5)

= $570
30
Area 1 Area 2 Area 3






Area 4 Area 5 Area 6
60
40
Process Layout

Receiving Shipping Testing
Department Department Department
(4) (5) (6)
Figure 9.8
Painting Assembly Machine Shop
Department Department Department
(2) (1) (3)
31
Revised Interdepartmental Flow Graph
Figure 9.7
30
50
50
50
100
100
Machine
Shop (3)
Testing
(6)
Shipping
(5)
Receiving
(4)
Painting
(2)
Assembly
(1)
32
Total cost of the revised plan
Cost = $50 + $100 + $20
(1 and 2) (1 and 3) (1 and 6)

+ $60 + $50 + $10
(2 and 3) (2 and 4) (2 and 5)

+ $40 + $100 + $50
(3 and 4) (3 and 6) (4 and 5)

= $480
33
Mathematical formulation
Parameters
m
ij
: number of materials handling trips from
department i to j
c
kl
: distance between locations k and l

34
Mathematical formulation
Decision variables
X
ikjl
: 1, if department i is assigned to location k
and department j is assigned to location l

0, otherwise.
i<j and kl
Y
ik
: 1, if department i is assigned to location k
0, otherwise
Most real problems are too complex to solve
analytically


35
Assignment problem
In some cases, layout problems can be
formulated as an assignment problem.
This is possible when the assignment cost does
not depend on the location of the other
departments/machines.

36
Hungarian Method
1. For each row, locate the smallest number in the row and
subtract from all entries in the row.
2. For each column, locate the smallest number in the column
and subtract from all entries in the column.
3. Check if it is possible to make a zero cost assignment. Cover
the zeros with minimum number of lines. If the number of
lines is equal to the size of the cost matrix, then there is an
optimal solution. Otherwise, go to Step 4.
4. Choose the smallest uncovered number and
a. Subtract it from all uncovered elements
b. Add it to the numbers where the lines cross
c. Go to Step 3.

37
Place four machines into four locations
A B C D
1 94 13 62 71
2 62 19 84 96
3 75 88 18 80
4 11 M 81 21
Assignment cost does not depend on the
location of the other machines.
Machine 4 is too large for location B.
The cost matrix is given below.




Apply Hungarian method.

38
Computer Software
Computer programs are available to solve larger
problems
CRAFT, COFAD:
Initial solution must be given.
It improves the solution.
Tries to minimize total cost of movements.
ALDEP, CORELAP, PLANET
Constructs the solution by itself.
39
CRAFT Algorithm
1. Start with an initial layout with all departments
made up of individual square grids
Each grid represents the same amount of space

2. Estimate the best two-way department exchange
assuming department centroids exchange exactly
Departments i and j exchange
New centroid i = centroid j
New centroid j = centroid i
Only consider exchanging adjacent departments
40
CRAFT example
Figure 9.9
TOTAL COST 20,100
EST. COST REDUCTION .00
ITERATION 0
(a)
A A A A B B
A A A A B B
D D D D D D
C C D D D D
F F F F F D
E E E E E D
TOTAL COST 14,390
EST. COST REDUCTION 70
ITERATION 3
(b)
D D D D B B
D D D D B B
D D D E E E
C C D E E F
A A A A A F
A A A F F F
41
Facilities Location Problem
Goal is to find the optimal location of one or more
new facilities.

In many systems, the objective is to minimize
some measure of distance.

Two common distance measures:
Straight line distance (Euclidean distance). The distance
between (a,b) and (x,y)

Rectilinear Distance (as might be measured following
roads on city streets).


( )
( ) x a y b +
2
2
x a y b +
42
The Single Facility Location Problem
Examples:
locating a warehouse that distributes
merchandise to a number of retail outlets
locating a supplier that provides parts to a
number of different facilities
locating a new piece of equipment that processes
parts that are subsequently sent downstream to a
number of different workstations
43
Facilities location problem
Continuous or Discrete space problems
Rectilinear distance
Single-facility rectilinear distance location problem
Minimax distance problem
Euclidean distance
The gravity problem
Locating multiple facilities


44
The Single Facility Rectilinear
Distance Location Problem
Locate a facility to minimize the weighted sum of
rectilinear distances from the new facility to existing
facilities.
SOLUTION
Locate the new facility at the median location of the
existing facilities.
Take the median location component by component
of the existing locations.

45
Setting up the problem
Existing facilities are located at points (a
1
, b
1
),
(a
2
, b
2
), , (a
n
, b
n
)
Find values of x and y (the location of the new
facility) to minimize

Weights (w
i
) are included to allow for different
traffic rates between the new facility and the
existing facilities
) ( ) , (
1
i i
n
i
i
b y a x w y x f +

=
=
46
Setting up the problem
mathematically (cont.)
The values of x and y can be determined separately





There is always an optimal solution with x equal to
some value of a
i
and y equal to some value of b
i

(there can be other optimal solutions as well)

=
+ =
=
=
n
i
i i
n
i
i i
b y w y g
a x w x g
y g x g y x f
1
2
1
1
2 1
) (
) (
) ( ) ( ) , (
47
Some examples
Two existing locations (5, 10) and (20, 30) and a
weights are the same for each facility
x can assume any value between 5 and 20 => g
1
(x) = 15
y can assume any value between 10 and 30 => g
2
(y) = 20

Four existing locations (3, 3), (6, 9), (12, 8), and (12,
10) and weights are the same

3, 6, 12, 12 any value of x between 6 and 12 => g1(x) = 15
3, 8, 9, 10 any value of y between 8 and 9 => g2(y) = 8
( ) ( )
1 2
1 1 = =
= =

n n
i i i i
i i
g x w x a g y w y b
48
The effect of different weights
Four existing machines in a job shop
(3, 3), (6, 9), (12, 8), and (12, 10)
Locate a new machine to minimize the total
distance traveled to transport material between
this fifth machine and the existing ones
Assume there are on average 2, 4, 3, and 1
materials handling trips per hour, respectively,
from the existing machines to the new machine
49
The effect of different weights
Machines in a job shop, (3, 3), (6, 9), (12, 8), and (12, 10)
2, 4, 3, and 1 materials handling trips per hour to the new
machine
THEN
x locations in increasing order: 3, 3, 6, 6, 6, 6, 12, 12, 12,
12 the median location is x = 6
g
1
(x) = 30
y locations in increasing order: 3, 3, 8, 8, 8, 9, 9, 9, 9, 10 -
median location is any value of y on the interval [8, 9]
g
2
(y) = 16
50
Another way to find the median
Rank based on the coordinates
Compute the cumulative weights
Find the coordinate in the list at which the cumulative weight
equals or exceeds half the total weight for the first time

Machines in a job shop, (3, 3), (6, 9), (12, 8), and (12, 10)
2, 4, 3, and 1 materials handling trips per hour to the new
machine

51
Another way to find the median
Machine y Coordinate Weight Cumulative Weight
1 3 2 2
3 8 3 5
2 9 4 9
4 10 1 10
Machine x Coordinate Weight Cumulative Weight
1 3 2 2
2 6 4 6
3 12 3 9
4 12 1 10
Example problem
School Campus Location Number of
Faculty Using
Equipment
Business (5, 13) 31
Education (8, 18) 28
Engineering (0, 0) 19
Humanities (6, 3) 53
Law (14, 20) 32
Science (10, 12) 41
53
Solution x coordinate
School x coordinate Weight Cumulative
weight
Engineering 0 19 19
Business 5 31 50
Humanities 6 53 103
Education 8 28 131
Science 10 41 172
Law 14 32 204
54
Solution y-coordinate
School y coordinate Weight Cumulative
weight
Engineering 0 19 19
Humanities 3 53 72
Science 12 41 113
Business 13 31 144
Education 18 28 172
Law 20 32 204
55
56
Existing facility
New facility
Minimax Location Problem with
Rectilinear Distances
|x-a|
|y-b|
x=?
y=?
(a, b)
57
Place new machine so that the longest rectangular
distance will be as low as possible.
x
y
min max
i i
i
x a y b +
58
min max
i i
i
x a y b +
min
for all
i i
z
z x a y b i > +
Mathematical Model
Equivalently
59
Mathematical Model
There are four cases
z
for all
for all
for all
for all
i i
i i
i i
i i
min
z x a y b i
z x a y b i
z x a y b i
z x a y b i
> +
> +
> + +
> + +
min
for all
i i
z
z x a y b i > +
60
c
1
= min (a
i
+ b
i
)
c
2
= max (a
i
+ b
i
)
c
3
= min (- a
i
+ b
i
)
c
4
= max(- a
i
+ b
i
)
c
5
= max (c
2
-c
1
, c
4
-c
3
)

(x
1
,y
1
) = ((c1 - c3)/2, (c1+c3+c5)/2)

(x
2
,y
2
) = ((c2 - c4)/2, (c2 + c4 - c5)/2)

Minimum Longest Distance, z* = c
5
/ 2

Optimal solution lies along the line connecting (x
1
,y
1
) and
(x
2
,y
2
).
Solution
61
Locate an emergency service unit to serve the
following sub-divisions of a city.
Subdivision a
i
b
i

A 4 3
B 5 11
C 13 13
D 10 6
E 4 6
F 10 10
G 14 2
Example
62
c
5
= max {26-7, 6+12} = 19
Optimal objective value z* = 19/2 = 9.5
Subdivision
a
i
b
i
a
i
+ b
i
-a
i
+ b
i

A 4 3 7 -1
B 5 11 16 6
C 13 13 26 0
D 10 6 16 -4
E 4 6 10 2
F 10 10 20 0
G 14 2 16 -12
c
1
= min (a
i
+b
i
)
c
2
= max (a
i
+b
i
)
c
3
= min (- a
i
+b
i
)
c
4
= max (- a
i
+b
i
)
c
5
= max (c
2
-c
1
, c
4
-c
3
)
(x
1
,y
1
) = (c
1
-c
3
, c
1
+c
3
+c
5
)= (9.5, 7)
(x
2
,y
2
) = ( c
2
-c
4
, c
2
+c
4
- c
5
)= (10, 6.5)
Optimal solution lies on the line connecting (9.5, 7) and (10, 6.5).
Solution
(x
1
,y
1
) = ((c1 - c3)/2, (c1+c3+c5)/2)
(x
2
,y
2
) = ((c2 - c4)/2, (c2 + c4 - c5)/2)
Single-Facility Straight-line Distance
Location Problem
Minimize the total length of the electrical cable while
locating power-generation facilities or reaching the
greatest number of customers with cell phone
towers
Objective is to minimize the weighted straight-line
(Euclidean) distance


Determining the optimal solution mathematically is
more difficult than for either rectilinear or squared
straight-line distance
( )
2
2
1
) ( ) , (
i i
n
i
i
b y a x w y x f + =

=
63
The Gravity Problem
The objective is to minimize the total weighted
square of the straight-line distance



Differentiating and setting the partial derivatives
equal to zero




Balance point" on the map
( ) | |
2
2
1
) ( ) , (
i i
n
i
i
b y a x w y x f + =

=
=
=
n
i
i
n
i
i i
w
a w
x
1
1
*

=
=
=
n
i
i
n
i
i i
w
b w
y
1
1
*
64
Locating Multiple Facilities
Multiple facilities among n existing facilities
They can be located individually, if independent
If new facilities have interactions then decided
at the same time


65
Locating Multiple Facilities - Notation
(a
1
, b
1
) (a
n
, b
n
) > existing locations
(x
1
, y
1
) (x
m
, y
m
) -> new locations
v
jk
: measure of interaction between new
facilities j and k
w
ij
: measure of interaction between new facility
j and existing facility i


66
67
( )
( )
min

1
1 1
< < s
s s s s
+ +
+

jk j k j k
j k m
ij j i j i
j m i n
v x x y y
w x a y b
Mathematical Model
Minimize the total distance interaction
between all locations
Between new facilities
Between new and existing facilities
Assume rectilinear distances



68
Mathematical Model
Decomposes into two problems
x axis
y axis



min
min
1 1 1
1 1 1
< < s s s s s
< < s s s s s
+ +
+


jk j k ij j i
j k m j m i n
jk j k ij j i
j k m j m i n
v x x w x a
v y y w y b
69
Mathematical Model for x-axis
Assume , , ,
,
,
jk jk ij ij
j k jk jk jk jk
j k jk jk
j i ij ij ij ij
j i ij ij
c d e f
x x c d where c d
x x c d
x a e f where e f
x a e f
>
= =
= +
= =
= +
0
0
0
70
Linear Programming formulation
for x-axis
min ( ) ( )
for all
for all ,
, , ,
unrestricted in sign
jk jk jk ij ij ij
j k m j m i n
j k jk jk
j i ij ij
jk jk ij ij
j
v c d w e f
st
x x c d j k m
x a e f i n j m
c d e f
x
< < s s s s s
+ + +
= s < s
= s s s s
>

1 1 1
1
1 1
0
for all j m s s 1