You are on page 1of 80

Chapter 8 Facility Layout: Manufacturing and Services

Slide 0 of 96

Overview

Introduction Manufacturing Facility Layouts Analyzing Manufacturing Facility Layouts Service Facility Layouts Wrap-Up: What World-Class Producers Do

Slide 1 of 96

Introduction

Facility layout means planning: for the location of all machines, utilities, employee workstations, customer service areas, material storage areas, aisles, restrooms, lunchrooms, internal walls, offices, and computer rooms for the flow patterns of materials and people around, into, and within buildings

Slide 2 of 96

Locate All Areas In and Around Buildings


Equipment Work stations Material storage Rest/break areas Utilities Eating areas Aisles Offices

Slide 3 of 96

Characteristics of the Facility Layout Decision

Location of these various areas impacts the flow through the system. The layout can affect productivity and costs generated by the system. Layout alternatives are limited by the amount and type of space required for the various areas the amount and type of space available the operations strategy . . . more

Slide 4 of 96

Characteristics of the Facility Layout Decision

Layout decisions tend to be: Infrequent Expensive to implement Studied and evaluated extensively Long-term commitments

Slide 5 of 96

Objectives of the Lay out Strategy


Develop an economical layout which will meet the requirements of: product design and volume (product strategy) Process equipment and capacity (process strategy) quality of work life (human resource strategy) building and site constraints (location strategy)

Slide 6 of 96

Requirements of a Good Layout


A good layout requires: an understanding of capacity & space requirements selection of appropriate material handling equipment decisions regarding environment and aesthetics identification and understanding of the requirements for information flow identification of the cost of moving between the various work areas

Slide 7 of 96

Inputs to the Layout Decision


1. Specification of objectives of the system in terms of output and flexibility.

2. Estimation of product or service demand on the system.


3. Processing requirements in terms of number of operations and amount of flow between departments and work centers. 4. Space requirements for the elements in the layout. 5. Space availability within the facility itself.
Slide 8 of 96

Steps in Developing a Process Oriented Layout


Construct a from-to matrix Determine space requirements for each department Develop an initial schematic diagram Determine the cost of this layout By trial-and error (or more sophisticated means), try to improve the initial layout Prepare a detailed plan that evaluates factors in addition to transportation cost

Slide 9 of 96

Warehouse & Storage Layout General Cost Curve


120 100 80 60 40 20 0 10 20 30 40 50 60 70 80 Warehouse Density Line 1 Line 2 Line 3
The best warehouse layout is where total costs are at a minimum
Material handling cost (mostly variable) Costs include: Equipment Damage Position & Find Investment Material storage cost (mostly fixed) Costs include: Land & building Building & insurance

90

100

Slide 10 of 96

Manufacturing Facility Layouts

Slide 11 of 96

Basic Layout Forms


Process Product Cellular Fixed position Hybrid

Slide 12 of 96

Process (Job Shop) Layouts

Equipment that perform similar processes are grouped together Used when the operations system must handle a wide variety of products in relatively small volumes (i.e., flexibility is necessary)

Slide 13 of 96

Characteristics of Process Layouts


General-purpose equipment is used Changeover is rapid Material flow is intermittent Material handling equipment is flexible Operators are highly skilled . . . more

Slide 14 of 96

Characteristics of Process Layouts


Technical supervision is required Planning, scheduling and controlling functions are challenging Production time is relatively long In-process inventory is relatively high

Slide 15 of 96

Product (Assembly Line) Layouts

Operations are arranged in the sequence required to make the product Used when the operations system must handle a narrow variety of products in relatively high volumes Operations and personnel are dedicated to producing one or a small number of products

Slide 16 of 96

Characteristics of Product Layouts


Special-purpose equipment are used Changeover is expensive and lengthy Material flow approaches continuous Material handling equipment is fixed Operators need not be as skilled . . . more

Slide 17 of 96

Characteristics of Product Layouts


Little direct supervision is required Planning, scheduling and controlling functions are relatively straight-forward Production time for a unit is relatively short In-process inventory is relatively low

Slide 18 of 96

Cellular Manufacturing (CM) Layouts

Operations required to produce a particular family (group) of parts are arranged in the sequence required to make that family Used when the operations system must handle a moderate variety of products in moderate volumes

Slide 19 of 96

Characteristics of CM Relative to Process Layouts


Equipment can be less general-purpose Material handling costs are reduced Training periods for operators are shortened In-process inventory is lower Parts can be made faster and shipped more quickly

Slide 20 of 96

Characteristics of CM Relative to a Product Layout


Equipment can be less special-purpose Changeovers are simplified Production is easier to automate

Slide 21 of 96

Fixed-Position Layouts

Product remains in a fixed position, and the personnel, material and equipment come to it Used when the product is very bulky, large, heavy or fragile

Slide 22 of 96

Hybrid Layouts

Actually, most manufacturing facilities use a combination of layout types. An example of a hybrid layout is where departments are arranged according to the types of processes but the products flow through on a product layout.

Slide 23 of 96

New Trends in Manufacturing Layouts


Designed for quality and flexibility Ability to quickly shift to different product models or to different production rates Cellular layout within larger process layouts Automated material handling U-shaped production lines . . . more

Slide 24 of 96

New Trends in Manufacturing Layouts

More open work areas with fewer walls, partitions, or other obstacles Smaller and more compact factory layouts Less space provided for storage of inventories throughout the layout

Slide 25 of 96

Analyzing Manufacturing Facility Layouts


Process Layouts Product Layouts Cellular Layouts

Slide 26 of 96

Process Layout

What factors might we consider when determining the locations of process areas, or departments?

Slide 27 of 96

Designing and Analyzing a Process Layout

Group like processes together into departments or work centers Determine where in the building these departments will be located relative to one another The objective is to arrange the departments so that some criterion such as material-handling cost is minimized

Slide 28 of 96

Approaches to Process Layout Design


Operations sequence analysis Block diagram analysis Load-distance analysis Computer analysis

Slide 29 of 96

Operations Sequence Analysis

Inputs required an existing or proposed arrangement of departments a projection of the traffic or flow that will take place between one department and each of the other departments during some time period - this is usually displayed as an interdepartmental flow matrix . . . more

Slide 30 of 96

Operations Sequence Analysis


Departments are represented by nodes (circles) Using the interdepartmental flow information, flows between adjacent departments are represented by solid lines. Dashed lines represent traffic between nonadjacent departments. The projected volumes are written above the appropriate lines. . . . more

Slide 31 of 96

Operations Sequence Analysis

Departments (circles) are moved with the objective of reducing the amount of nonadjacent flow. This proceeds until no further improvement can be found

Slide 32 of 96

Block Diagram Analysis

This approach follows the operations sequence analysis and is an effort to make the solution more realistic Each department is represented by a square the relative size of the department Shapes of the squares are altered to fit into the boundaries of the building while retaining the same areas and relative position found in the operations sequence analysis

Slide 33 of 96

Load-Distance Analysis

A way of quantitatively comparing alternative process layouts Inputs Alternative block layouts which will provide the distance between a department and each of the other departments For each product, the path it will follow (routing) and its volume over some time period . . . more

Slide 34 of 96

Load-Distance Analysis

For each alternative process layout, compute the total distance a product must travel using its routing Compute the total distance traveled per time unit for each product by multiplying its total travel distance by its volume per time unit Add the total distance traveled per time unit for each product Select the layout with the smallest sum

Slide 35 of 96

Process Layout: Interdepartmental Flow

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 interdepartmental transportation, or flow, costs
Slide 36 of 96

Process Layout: Cut-And-Try Approach

Involves searching for departmental changes to reduce overall flow cost Difficult to determine correct moves Non-optimal and based on limited criteria (cost, flow and distance)

Slide 37 of 96

Process Layout: Systematic Layout Planning

Numerical flow of items between departments Can be impractical to obtain Does not account for the qualitative factors that may be crucial to the placement decision Systematic Layout Planning Accounts for the importance of having each department located next to every other department Is also guided by trial and error Switching departments then checking the results of the closeness score
Slide 38 of 96

Example 1: Systematic Layout Planning


Reasons for Closeness

Code 1 2 3 4

Reason Type of customer Ease of supervision Common personnel Contact necessary

5
6

Share same price


Psychology

Slide 39 of 96

Example 1: Systematic Layout Planning


Importance of Closeness
Value
A E I O U X

Closeness
Absolutely necessary Especially important Important Ordinary closeness OK Unimportant Undesirable

Line code

Numerical weights 16 8 4 2 0 80

Slide 40 of 96

Example 1: Systematic Layout Planning


Relating Reasons and Importance
From 1. Credit department 2. Toy department 3. Wine department 4. Camera department 5. Candy department Letter Number To Area (sq. ft.) 100 400 300 100 100 Closeness rating Reason for rating

2 I 6

3 U -U --

4 A 4 I 1

5 U -A 1,6

U --

X 1 X 1

Slide 41 of 96

Example 1: Systematic Layout Planning


The Starting Solution

1 I 2

E 4 A U

U
5

Slide 42 of 96

Example 1: Systematic Layout Planning


Initial and Final Layouts

2 3

4 1 5

2 3 1
50 ft 20 ft

Initial Layout
Ignoring space and building constraints

Final Layout
Adjusted by square footage and building size

Slide 43 of 96

Designing and Analyzing a Product Layout

Line Balancing

Slide 44 of 96

Designing and Analyzing a Product Layout


Characteristics Inputs Design Procedure How Good Is The Layout?

Slide 45 of 96

Product Layout-Advantages/Disadvantages
Advantages: Low cost variable cost per unit Lower material handling costs reduction in work in-process inventories easier training and supervision Disadvantages: High volume required because of large initial investment Work stoppage at any point ties up the whole process Lack of flexibility in handling variety of products or production rates

Slide 46 of 96

Line Balancing Problem

Work stations are arranged so that the output of one is an input to the next, i.e., a series connection

Layout design involves assigning one or more of the tasks required to make a product to work stations . . . more

Slide 47 of 96

Line Balancing Problem

The objective is to assign tasks to minimize the workers idle time, therefore idle time costs, and meet the required production rate for the line In a perfectly balanced line, all workers would complete their assigned tasks at the same time (assuming they start their work simultaneously) This would result in no idle time . . . more

Slide 48 of 96

Line Balancing Problem

Unfortunately there are a number of conditions that prevent the achievement of a perfectly balanced line The estimated times for tasks The precedence relationships for the tasks The combinatorial nature of the problem

Slide 49 of 96

Inputs

The production rate required from the product layout or the cycle time. The cycle time is the reciprocal of the production rate and visa versa All of the tasks required to make the product It is assumed that these tasks can not be divided further . . . more

Slide 50 of 96

Inputs

The estimated time to do each task The precedence relationships between the tasks These relationships are determined by the technical constraints imposed by the product These relationships are displayed as a network known as a precedence diagram

Slide 51 of 96

Design Procedure
1. If not provided, find the cycle time for the line. Remember the cycle time is the reciprocal of the production rate. Make sure the cycle time is expressed in the same time units as the estimated task times. 2. Select the line-balancing heuristic that may be used to help with the assignments. (Two heuristics are described at the end of this procedure.) . . . more

Slide 52 of 96

Design Procedure
3. Open a new work station with the full cycle time remaining. 4. Determine which tasks are feasible, i.e., can be assigned to this work station at this time. For a task to be feasible, two conditions must be met: All tasks that precede that task must have already been assigned The estimated task time must be less than or equal to the remaining cycle time for that work station.

Slide 53 of 96

Design Procedure
5. If there are no feasible tasks, assignments to that work station are complete. Go back to step 3 (or stop, if all tasks have been assigned). If there is only one feasible task, assign it to the work station. If there is more than one feasible task, use the heuristic (step 2) to determine which task to assign. Reduce the work stations remaining cycle time by the selected tasks time and return to step 4.

Slide 54 of 96

Line-Balancing Heuristics

Heuristic methods, based on simple rules, have been used to develop very good, not optimal, solutions to line balancing problems. Incremental Utilization Heuristic - adds tasks to a workstation one at a time in the order of task precedence until utilization is 100% or is observed to fall. Longest-Task-Time Heuristic - adds tasks to a workstation one at a time in the order of task precedence, choosing - when a choice must be made the task with the longest time.
Slide 55 of 96

How Good Is the Design?

Utilization is one way of objectively determining how near perfectly balanced an assignment scheme is. Utilization is the percentage of time that a production line is working. Utilization is calculated as:
Minimum number of workstati ons x100 Actual number of workstati ons

or
Sum of all task time s x 100 (Cycle Time) x (Actual number of work stations)
Slide 56 of 96

Product Layouts-Major Assumptions


Volume is adequate for high equipment utilization. Product demand is stable enough to justify high investment in specialized equipment. Product is standardized or approaching a phase of its life cycle that justifies investment in specialized equipment. Supplies of raw material and components are adequate and of uniform quality to ensure they will work with the specialized equipment.
Slide 57 of 96

Why is Balancing the Line Important?

Station 1 Min/ Unit


6

Station 2
7

Station 3
3

Whats Going to Happen?


Slide 58 of 96

Example 1: The ALB Problem

Youve just been assigned the job a setting up an electric fan assembly line with the following tasks:
Task A B C D E F G H Time (Mins) 2 1 3.25 1.2 0.5 1 1 1.4 Description Assemble frame Mount switch Assemble motor housing Mount motor housing in frame Attach blade Assemble and attach safety grill Attach cord Test Predecessors None A None A, C D E B F, G

Slide 59 of 96

Example 1: The ALB Problem


The Precedence Diagram

Which process step defines the maximum rate of production?


2 A 1 B 1 G

1.4 H F 1

C 3.25

D 1.2

E .5

Slide 60 of 96

Example 1: The ALB Problem


We want to assemble 100 fans per day

Production time per period Required Cycle Time, C = Required output per period

420 mins / day C= = 4.2 mins / unit 100 units / day

What do these numbers this represent?

Slide 62 of 96

Example 1: The ALB Problem


We want to assemble 100 fans per day
Theoretical Min. Number of Workstations, N t Sum of task times (T) Nt = Cycle time (C)

11.35 mins / unit Nt = = 2.702, or 3 4.2 mins / unit

Why should we always round up?


Slide 63 of 96

Example 1: The ALB Problem


Selected Task Selection Rules

Primary: Assign tasks in order the the largest number of following tasks.

Secondary (tie-breaking): Assign tasks in order of the longest operating time

Slide 64 of 96

Example 1: The ALB Problem


Selected Task Selection Rules

Precedence Diagram
2 A 1 B 1 G 1.4 H F 1

C 3.25

D 1.2

E .5

Slide 65 of 96

2 A

1 B

1 G

1.4 H F 1

C 3.25

D 1.2

E .5

Task A C D B E F G H

Followers 6 4 3 2 2 1 1 0

Time (Min) 2 3.25 1.2 1 0.5 1 1 1.4

Station 1

Station 2

Station 3

Slide 66 of 96

2 A

1 B

1 G

1.4 H F 1

C 3.25

D 1.2

E .5

Task A C D B E F G H

Followers 6 4 3 2 2 1 1 0

Time (Min) 2 3.25 1.2 1 0.5 1 1 1.4

Station 1
A (4.2-2=2.2)

Station 2

Station 3

Slide 67 of 96

2 A

1 B

1 G

1.4 H F 1

C 3.25

D 1.2

E .5

Task A C D B E F G H

Followers 6 4 3 2 2 1 1 0

Time (Min) 2 3.25 1.2 1 0.5 1 1 1.4

Station 1
A (4.2-2=2.2) B (2.2-1=1.2)

Station 2

Station 3

Slide 68 of 96

2 A

1 B

1 G

1.4 H F 1

C 3.25

D 1.2

E .5

Task A C D B E F G H

Followers 6 4 3 2 2 1 1 0

Time (Min) 2 3.25 1.2 1 0.5 1 1 1.4

Station 1
A (4.2-2=2.2) B (2.2-1=1.2) G (1.2-1= .2) Idle= .2

Station 2

Station 3

Slide 69 of 96

2 A

1 B

1 G

1.4 H F 1

C 3.25

D 1.2

E .5

Task A C D B E F G H

Followers 6 4 3 2 2 1 1 0

Time (Min) 2 3.25 1.2 1 0.5 1 1 1.4

Station 1
A (4.2-2=2.2) B (2.2-1=1.2) G (1.2-1= .2) Idle= .2

Station 2
C (4.2-3.25)=.95

Station 3

Idle = .95
Slide 70 of 96

2 A

1 B

1 G

1.4 H F 1

C 3.25

D 1.2

E .5

Task A C D B E F G H

Followers 6 4 3 2 2 1 1 0

Time (Min) 2 3.25 1.2 1 0.5 1 1 1.4

Station 1
A (4.2-2=2.2) B (2.2-1=1.2) G (1.2-1= .2) Idle= .2

Station 2
C (4.2-3.25)=.95

Station 3
D (4.2-1.2)=3

Idle = .95
Slide 71 of 96

2 A

1 B

1 G

1.4 H F 1

C 3.25

D 1.2

E .5

Task A C D B E F G H

Followers 6 4 3 2 2 1 1 0

Time (Min) 2 3.25 1.2 1 0.5 1 1 1.4

Station 1
A (4.2-2=2.2) B (2.2-1=1.2) G (1.2-1= .2) Idle= .2

Station 2
C (4.2-3.25)=.95

Station 3
D (4.2-1.2)=3 E (3-.5)=2.5

Idle = .95
Slide 72 of 96

2 A

1 B

1 G

1.4 H F 1

C 3.25

D 1.2

E .5

Task A C D B E F G H

Followers 6 4 3 2 2 1 1 0

Time (Min) 2 3.25 1.2 1 0.5 1 1 1.4

Station 1
A (4.2-2=2.2) B (2.2-1=1.2) G (1.2-1= .2) Idle= .2

Station 2
C (4.2-3.25)=.95

Station 3
D (4.2-1.2)=3 E (3-.5)=2.5 F (2.5-1)=1.5

Idle = .95
Slide 73 of 96

2 A

1 B

1 G

1.4 H F 1

C 3.25

D 1.2

E .5

Task A C D B E F G H

Followers 6 4 3 2 2 1 1 0

Time (Min) 2 3.25 1.2 1 0.5 1 1 1.4

Station 1
A (4.2-2=2.2) B (2.2-1=1.2) G (1.2-1= .2) Idle=.2

Station 2
C (4.2-3.25)=.95

Station 3
D (4.2-1.2)=3 E (3-.5)=2.5 F (2.5-1)=1.5 H (1.5-1.4)=.1 Idle=.1
Slide 74 of 96

Idle=.95

Example 1: The ALB Problem

Which station is the bottleneck? What is the effective cycle time?


Sum of task times (T) Efficiency = Actual number of workstations (Na) x Cycle time (C)

11.35 mins / unit Efficiency = =.901 (3)(4.2mins / unit)

Slide 75 of 96

Designing and Analyzing a Cellular Layout

Fundamental questions: Which parts are going to be produced in a cell? Which processes are going to be assigned to a cell?

Slide 76 of 96

Group Technology Benefits


1. Better human relations

2. Improved operator expertise


3. Less in-process inventory and material handling 4. Faster production setup

Slide 77 of 96

Fundamental Requirements for Parts to be Made in Cells

Demand for the parts must be high enough and stable enough that moderate batch sizes of the parts can be produced periodically. Parts must be capable of being grouped into parts families.

Slide 78 of 96

Design Procedure
1. Form the Parts-Machines Matrix. 2. Rearrange the Rows. Place the machines that produce the same parts in adjacent rows. 3. Rearrange the Columns. Place the parts requiring the same machines in adjacent columns. 4. Using the rearranged parts-machines matrix to identify cells, the machines for that cell and the parts that will be produced in that cell.

Slide 79 of 96

Wrap-Up: World-Class Practice

Strive for flexibility in layouts Multi-job training of workers Sophisticated preventive-maintenance programs Flexible machines Empowered workers trained in problem solving Layouts small and compact

Slide 80 of 96