Professional Documents
Culture Documents
Chapter 8
L
A
Layout Planning
Layout planning is planning that involves decisions
about the physical arrangement of economic activity
centers needed by a facilitys various processes.
Layout plans translate the broader decisions about the
competitive priorities, process strategy, quality, and capacity
of its processes into actual physical arrangements.
Layout Planning
Questions
Before a manager can make decisions
regarding physical arrangement, four
questions must be addressed.
1. What centers should the layout include?
2. How much space and capacity does
each center need?
3. How should each centers space be
configured?
4. Where should each center be located?
2007 Pearson Education
Strategic Issues
Impact and Implications
Layout choices can help communicate an
organizations product plans and competitive
priorities.
Altering a layout can affect an organization and how
well it meets its competitive priorities in the following
ways:
1.
2.
3.
4.
5.
6.
Types of Layouts
Flexible-flow (process) layout: A layout that
organizes resources (employees) and equipment by
function rather than by service or product.
Line-flow (product) layout: A layout in which
workstations or departments are arranged in a
linear path.
Hybrid layout: An arrangement in which some
portions of the facility have a flexible-flow and
others have a line-flow layout.
Fixed-position layout: An arrangement in which
service or manufacturing site is fixed in place;
employees along with their equipment, come to the
site to do their work.
2007 Pearson Education
Grinding
Forging
Lathes
Painting
Welding
Drills
Office
Milling
machines
Foundry
Station 1
Station 2
Station 3
Station 4
Comparison Of
Product And Process
Layouts
PRODUCT LAYOUT
Sequential arrangement
of machines
PROCESS LAYOUT
Functional grouping
of machines
2. Type of Process
Continuous, mass
production, mainly
assembly
3. Product
Standardized
made to stock
Varied,
made to order
4.
5.
6.
7.
Stable
High
Special purpose
Limited skills
Fluctuating
Low
General purpose
Varied skills
1. Description
Demand
Volume
Equipment
Workers
2000 by Prentice-Hall
Inc
2007 Pearson
Education
Russell/Taylor Oper Mgt 3/e
Ch 7 - 9
Comparison Of
Product And Process
Layouts
8. Inventory
9. Storage space
10. Material
handling
11. Aisles
12. Scheduling
13. Layout decision
14. Goal
15. Advantage
2000 by Prentice-Hall
Inc
2007 Pearson
Education
Russell/Taylor Oper Mgt 3/e
PRODUCT LAYOUT
Low in-process,
high finished goods
Small
Fixed path
(conveyor)
Narrow
Part of balancing
Line balancing
Equalize work at
each station
Efficiency
PROCESS LAYOUT
High in-process,
low finished goods
Large
Variable path
(forklift)
Wide
Dynamic
Machine location
Minimize material
handling cost
Flexibility
Ch 7 - 10
Performance Criteria
Customer satisfaction
Level of capital investment
Requirements for materials handling
Ease of stockpicking
Work environment and atmosphere
Ease of equipment maintenance
Employee and internal customer attitudes
Amount of flexibility needed
Customer convenience and levels of sales
One Worker,
Multiple Machines
Machine
2
Machine
1
Machine
3
Materials in
Finished
goods out
Machine
5
Machine
4
Milling
Drilling
M
Grinding
Receiving and
shipping
2007 Pearson Education
Assembly
A
Assembly
area
A
Cell 2
Cell 1
Receiving
Cell 3
L
Shipping
Original Process
Layout
Assembly
2
1
A
2000 by Prentice-Hall
Inc
2007 Pearson
Education
Russell/Taylor Oper Mgt 3/e
10
3
12
11
Raw materials
Ch 7 - 34
Cellular Layout
Solution
Assembly
10
12
11
Cell1
Cell 2
Cell 3
7
2
Raw materials
2000 by Prentice-Hall
Inc
2007 Pearson
Education
Russell/Taylor Oper Mgt 3/e
3
A
5
B
Ch 7 - 37
Warehouse Layouts
Out-and-back Pattern
The most basic warehouse layout is the out-and-back pattern.
The numbers indicate storage areas for same or similar items.
Storage area
Dock
Aisle
Storage area
2007 Pearson Education
Warehouse Layouts
Zone System
Zones
Zones
Control
station
Shipping
doors
Tractor
trailer
Tractor
trailer
Feeder
lines
2007 Pearson Education
Feeder
lines
Overflow
Office Layouts
Most formal procedures for designing office layouts
try to maximize the proximity of workers whose jobs
require frequent interaction.
Privacy is another key factor in office design.
Four common office layouts:
1. Traditional layouts
2. Office landscaping (cubicles/movable partitions)
3. Activity settings
4. Electronic cottages (Telecommuting)
2007 Pearson Education
Designing
Line-Flow Layouts
Line balancing is the assignment of work to
stations in a line so as to achieve the desired output
rate with the smallest number of workstations.
Work elements are the smallest units of work that
can be performed independently.
Immediate predecessors are work elements that
must be done before the next element can begin.
Precedence diagram allows one to visualize
immediate predecessors better; work elements are
denoted by circles, with the time required to perform
the work shown below each circle.
2007 Pearson Education
Line Balancing
Example 8.3
Green Grass, Inc., a manufacturer of lawn & garden equipment,
is designing an assembly line to produce a new fertilizer spreader,
the Big Broadcaster. Using the following information, construct a
precedence diagram for the Big Broadcaster.
Work
Element
A
B
C
D
E
F
G
H
I
Time Immediate
Description
(sec) Predecessor(s)
Bolt leg frame to hopper 40
None
Insert impeller shaft
30
A
Attach axle
50
A
Attach agitator
40
B
Attach drive wheel
6
B
Attach free wheel
25
C
Mount lower post
15
C
Attach controls
20
D, E
Mount nameplate
18
F, G
Total
Line Balancing
Green Grass, Inc.
D
B
244
40
30
F
25
50
I
G
20
6
A
40
15
18
Theoretical Minimum
Theoretical minimum (TM ) is a benchmark or goal for the
smallest number of stations possible, where total time required
to assemble each unit (the sum of all work-element standard
times) is divided by the cycle time. It must be rounded up
1
r
Calculations for
Example 8.4 continued
Theoretical minimum (TM ) - sum of all work-element
standard times divided by the cycle time.
TM = 244 seconds/60 seconds = 4.067
It must be rounded up to 5 stations
Cycle time: c = 1/60 = 1 minute/unit = 60 seconds/unit
Efficiency (%) - ratio of productive time to total time.
Efficiency = [244/5(60)]100 = 81.3%
Balance Delay - amount by which efficiency falls short of 100%.
(100 81.3) = 18.7%
2007 Pearson Education
D
B
30
S3
S1
A
S2
40
40
20
E
S4
F
25
50
c = 60 seconds/unit
TM = 5 stations
Efficiency = 81.3%
6
S5
I
G
15
18
Other Considerations
In addition to balancing a line, managers must also
consider four other options:
1. Pacing: The movement of product from one station
to the next as soon as the cycle time has elapsed.
2. Behavioral factors of workers.
3. Number of models produced: A mixed-model line
produces several items belonging to the same
family.
4. Cycle times depend on the desired output rate, and
efficiency varies considerably with the cycle time
selected. Thus exploring a range of cycle times
makes sense.
2007 Pearson Education
Activity Description
A
B
C
D
E
F
G
H
Predecessors
Contract signing
Questionnaire design
Target market ID
Survey sample
Develop presentation
Analyze results
Demographic analysis
Presentation to client
None
A
A
B, C
B
D
C
E, F, G
Estimated Duration
5
5
6
13
6
4
9
2
Preceding activities
A
B, C
B
C, D
E
F
G, H