Layout Strategy Layout StrategyInnovation at McDonalds
Innovation at McDonaldsIndoor seating (1950s)Drive-through window
(1970s)Adding breakfast to the menu (1980s)NEW KITCHEN LAYOUT _ New
Just in Time breakfastAdding breakfast to the menu (1980s)Adding
play areas (1990s)(Four out of the Five are layout decisions)What
is Facility Layout What is Facility LayoutLocation or arrangement
of everything within & around buildings Objectives are to
maximize Customer satisfaction Utilization of space, equipment,
& people Efficient flow of information, material, & people
Employee morale & safetySavings of upto 30% of manufacturing
(incl.inventory) costs possibleby using proper layoutProcess Lay
out Process Lay outFunctional Lay Out Machines with Similar
Functions Grouped TogetherA Product Layout A Product LayoutIn InOut
OutCellular Lay Out Cellular Lay OutEach cell processes a family of
products with similar sequence of operationsSix Layout Strategies
Six Layout StrategiesFixed-position layout large bulky projects
such as ships andbuildingsProcess-oriented layout deals with
low-volumehigh-variety production (job deals with low volume, high
variety production ( job shop, intermittent production)
Product-oriented layout seeks the best personnel and machine use in
repetitive or continuous productionSix Layout StrategiesSix Layout
Strategies -- continued continued Retail/service layout allocates
shelf space and responds to customer behavior Warehouse layout
addresses trade offs between space and material handling addresses
trade-offs between space and material handlingOffice layout
positions workers, their equipment, and spaces/offices to provide
for movement of informationFixed Fixed--Position Layout Position
LayoutDesign is for stationary project Workers and equipment come
to siteComplicating factors Complicating factors Limited space at
site Changing material needs- at each stage of project Dynamic
volumes at each stageProcess Process- -Oriented Layout Oriented
Layout Design places departments with large flows of material or
people together Department areas having similar processes located
in close proximity e.g., All x-ray machines in same area Used with
process-focused processesEmergency Room Layout Emergency Room
LayoutE.R.Triage roomPatient B - erratic pacemakerPatient A -broken
legE.R. beds Pharmacy Billing/exitHallwaySteps in Developing a
Steps in Developing aProcess Process- -Oriented Layout Oriented
Layout1 Construct a from-to matrix2 Determine space requirements
for each department3 Develop an initial schematic diagram p g4
Determine the cost of this layout5 By trial-and-error (or more
sophisticated means), try to improve the initial layout6 Prepare a
detailed plan that evaluates factors in addition to transportation
costCost of Process Cost of Process--Oriented Layout Oriented
Layouts department orcenters workof numbertotal n whereC X
costMinimizen1 in1 jij ij=== =j department and i
departmentbetweenload a move cost to Cj department to i
departmentfrom moved loads of numberXs department individual j
i,ijij===Interdepartmental Flow of Parts Interdepartmental Flow of
Parts1 2 3 4 5 61250 100 0 0 2030 50 10 020 0 100345620 0 10050
00Possible Layout 1 Possible Layout
1AssemblyDepartment(1)PrintingDepartment(2)Machine
ShopDepartment(3)Room 1 Room 2 Room
3ReceivingDepartment(4)ShippingDepartment(5)TestingDepartment(6)Room
4 Room 5 Room 66040Interdepartmental Flow GraphInterdepartmental
Flow Graph Showing Number of Weekly Loads Showing Number of Weekly
Loads10050 301 2 310501004 5 6Interdepartmental Flow
GraphInterdepartmental Flow Graph Showing Number of Weekly Loads
Showing Number of Weekly Loads100 50302 1 3501004 5 6Possible
Layout 3 Possible Layout
3PaintingDepartment(2)AssemblyDepartment(1)Machine
ShopDepartment(3)Room 1 Room 2 Room
3ReceivingDepartment(4)ShippingDepartment(5)TestingDepartment(6)Room
4 Room 5 Room 66040Computer Programs to Assist inComputer Programs
to Assist in Layout LayoutCRAFTSPACECRAFTCRAFT 3-DMULTIPLE
MULTIPLECORELAPALDEPCOFADFADES - expert systemOut Out- -Patient
Hospital Example Patient Hospital ExampleCRAFT CRAFTA A A A B BA A
A A B BD D D D D DD D D D B BD D D D B BD D D E E E1 2 3 4 5 6 1 2
3 4 5 6123123Legend:A = xray/MRI roomsB = laboratoriesC =
admissionsC C D D D DF F F F F DE E E E E DC C D E E FA A A A A FA
A A F F F456456Total cost:20,100Est. Cost Reduction
.00Iteration0Total cost: 14,390Est. Cost Reduction 70.Iteration3D =
exam roomsE = operating roomsF = recovery rooms= ==n1 in1 jij ijC X
costMinimizeOffice Layout Office LayoutDesign positions people,
equipment, & offices for maximum information flowArranged by
process or product Example: Payroll dept. is by process p y p y
pRelationship chart usedExamples Insurance company Software
companyOffice Layout Floor Plan Office Layout Floor PlanAccounting
AccountingFinance FinanceManager ManagerBrand X Brand XFin.
Acct.Relationship Chart Relationship Chart1 PresidentO2 Costing UA
A112233Ordinary closeness: President (1) & Costing (2)44A A3
Engineering IO4 Presidents SecretaryAbsolutely necessary: President
(1) & Secretary (4) I = ImportantU = UnimportantOffice
Relationship Shart Office Relationship Shart1President2Chief
Technology Officer3Engineers Area4SecretaryUIIIOOAOAAIIII UVal.
ClosenessA Absolutely necessaryE Especiallyy5Office
entrance7Equipment cabinet8 Photocopy equipment9 Storage room9
Storage roomAUOEOEIAXOUEIEUAEAXUUOOUOp yimportantI ImportantO
Ordinary OKU UnimportantX Not desirableRetail/Service Layout
Retail/Service LayoutDesign maximizes product exposure to
customersDecision variables Store flow pattern Allocation of
(shelf) space to products Types Grid design Free-flow
designVideoRetail LayoutsRetail Layouts - -Some Rules of Thumb 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 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 rateRetail /Service LayoutRetail /Service Layout --Grid
Design Grid DesignGrocery Store Grocery StoreMeat
BreadMilkProduceOffice Office Carts CartsCheck Check--out outFrozen
FoodsRetail/Service LayoutRetail/Service Layout - -Free Free--Flow
Design Flow DesignFeature FeatureTrans. Trans.Apparel Store Apparel
StoreFeature FeatureDisplayDisplay Table TableCounter
CounterFinishedgoodsCNC MachineFLEXIBLE MANUFACTURING
SYSTEMPartsComputercontrolroomTerminalCNC MachinePalletAutomatic
tool changer Programmable manipulators Follow specified path Better
than humans with respect to FLEXIBLE MANUFACTURING SYSTEM A
COMPONENT Hostile environments Long hours Consistency Adoption has
been slowed by ineffective integration and adaptation of
systemsAnalysis of production linesNearly equally divides work
between workstations while meeting required outputLINE BALANCINGg q
pObjectives Maximize efficiency Minimize number of work
stationsAssembly Line Balancing Assembly Line Balancing1 3245Work
WorkWorkWork Station StationWork Station Work StationStation
Station25Office OfficeBelt Conveyor Belt ConveyorNote: 5 tasks or
operations; 3 work stations Note: 5 tasks or operations; 3 work
stationsWork Station Work Station1. Precedence requirements
Physical restriction, order of operationsLINE BALANCING -
CONSTRAINTS2. Cycle time restrictions Max. operating time allowed
for each workstation Depend on demand rate, production timeii =
1tiE =ii = 1tiN =EfficiencyMinimum number of workstationsLINE
EFFICIENCYnCaE =CdN =ti= completion time for element ij = number of
work elementsn = actual number of workstationsCa= actual cycle
timeCd= desired cycle timeCd= Production time available / Desired
units of outputCycle Time Example Cycle Time ExampleCd= production
time availabledesired units of outputCd= cycle time, N= No. of work
stations, Flow time = time taken to complete allstationsdesired
units of outputCd= (8 hours x 60 minutes / hour)(120 units)Cd== 4
minutes480120Flow Time vs Cycle Time Flow Time vs Cycle Time Cycle
time = max time spent at any station Flow time = time to complete
all stations1 2 34 minutes 4 minutes 4 minutes 4 minutes 4 minutes
4 minutesFlow time = 4 + 4 + 4 = 12 minutes Flow time = 4 + 4 + 4 =
12 minutesCycle time = max (4, 4, 4) = 4 minutes Cycle time = max
(4, 4, 4) = 4 minutesDetermine cycle time by taking the demand (or
production rate) per day and dividing it into the productive time
available per dayC l l tthth ti li i b fk LINE BALANCING GENERAL
PROCESSCalculate the theoretical minimum number of work stations by
dividing total task time by cycle timePerform the line balance and
assign specific assembly tasks to each work station1. Determine
tasks (operations)2. Determine sequence3. Draw precedence diagram4.
Estimate task timesLINE BALANCING PROCESS STEPS5. Calculate cycle
time 6. Calculate number of work stations7. Assign tasks 8.
Calculate efficiencyA BCFG I10 Min. 10 Min.5511 11 33 77 33LINE
BALANCING EXAMPLE PRECEDENCE DIAGRAME HDF12 124411 11Suppose that
40 products are required in one day (8 hour shift)Assembly Line
Balancing Equations Assembly Line Balancing EquationsCycle time=
Production time availableDemand per dayMinimum number of Task
times= number of work stations Cycle timeEfficiency = Task times*
(Cycle time)(Actual number of work stations)C101153 7LINE BALANCING
SOLUTION TO PRECEDENCE DIAGRAMA BEDF GIH311 124Cd=12 mins, Eff =
91%Line Balancing:Line Balancing: Example 2 Example 2WORK ELEMENT
WORK ELEMENT PRECEDENCE PRECEDENCE TIME (MIN) TIME (MIN)AA Press
out sheet of fruit Press out sheet of fruit 0.1 0.1BB Cut into
strips Cut into strips A A 0.2 0.2CC Outline fun shapes Outline fun
shapes A A 0.4 0.4DD Roll up and package Roll up and package B, C
B, C 0.3 0.3Demand requirement = 6000 units per week; Time = 40
hours per weekDD Roll up and package Roll up and package B, C B, C
0.3 0.30.1 0.10.2 0.20.4 0.40.3 0.3DBCALine Balancing: Example
(cont.) Line Balancing: Example (cont.)WORK ELEMENT WORK ELEMENT
PRECEDENCE PRECEDENCE TIME (MIN) TIME (MIN)AA Press out sheet of
fruit Press out sheet of fruit 0.1 0.1BB Cut into strips Cut into
strips A A 0.2 0.2CC Outline fun shapes Outline fun shapes A A 0.4
0.4DD Roll up and package Roll up and package B, C B, C 0.3 0.3 DD
Roll up and package Roll up and package B, C B, C 0.3 0.3Cd= == 0.4
minute40 hours x 60 minutes / hour6,000 units24006000N= == 2.5 3
workstations1.00.40.1 + 0.2 + 0.3 + 0.40.4Line Balancing: Example
(cont.) Line Balancing: Example (cont.)REMAINING
REMAININGWORKSTATION ELEMENT TIME ELEMENTS1 A 0.3 B, CB 0.1 C, D2 C
0.0 D3 D 0 1CCdd= 0.4 = 0.4NN= 2.5 = 2.53 D 0.1 none0.1 0.10.2
0.20.4 0.40.3 0.3DBCAA, B C DWork station 1Work station 2Work
station 3CCdd= 0.4 = 0.4NN= 2.5 = 2.5Line Balancing: Example
(cont.) Line Balancing: Example (cont.)0.3 minute0.4 minute0.3
minuteE= == 0.833 = 83.3%0.1 + 0.2 + 0.3 +
0.43(0.4)1.01.2Computerized LineComputerized Line Balancing
Balancing Use heuristics to assign tasks to workstations Longest
operation timeLongest operation time Shortest operation time Most
number of following tasks Least number of following tasks Ranked
positional weightCellular LayoutCellular Layout - - Work Cells Work
CellsSpecial case of product-oriented layout - in what is
ordinarily a process-oriented facilityConsists of different
machines brought together to k d t make a productTemporary
arrangement onlyExample: Assembly line set up to produce 3000
identical parts in a job shopProcessProcess vs vs Cellular Layout
Cellular LayoutImproving Layouts by Moving toImproving Layouts by
Moving to the Work Cell Concept the Work Cell ConceptLean
Manufacturing PrinciplesLean means manufacturing without waste"
Waste ("muda" in Japanese) has many forms Material, time, idle
equipment, and inventory Most companies waste 70%-90% of their
available resources Even the best Lean Manufacturers probably waste
30% Lean Manufacturing and Cellular Manufacturing improve material
handling, inventory, quality, scheduling, personnel and i f i
customer satisfaction.A set of techniques that identify and
eliminate waste has evolved: "Lean Manufacturing."Cellular
ManufacturingPull Scheduling (Kanban)Six Sigma / Total Quality
ManagementRapid Setup (SMED)Team DevelopmentRoadmap to
Manufacturing ExcellenceCellular Manufacturing- The Heart of
LeanCellular Manufacturing and work cells are at the heart of Lean
Manufacturing. Their benefits are many and varied. They increase
productivity and quality. Cells simplify material flow, management
and even accounting systems.Cellular Manufacturing seems simpleBut
beneath thisCellular Manufacturing seems simple. But beneath this
deceptive simplicity are sophisticated Socio-Technical Systems.
Proper functioning depends on subtle interactions of people and
equipment. Each element must fit with the others in a smoothly
functioning, self-regulating and self-improving
operation.ProcessProcess vs vs Cellular Layout Cellular LayoutTypes
of Cells -Part Family (or Group Technology) Cells Part Family (or
Group Technology) Cells A family of similar items are made in a
self contained cell Each product may use only some of the cells
facilities Operators are flexible, work in teams & have greater
autonomy Complex routes through the cell are permitted, group
Complex routes through the cell are permitted, group layout common
but line possible Cells offer substantial performance improvements
especially lead time & WIP reductions, delivery reliability,
flexibility Group Technology types are the most important and
numerous, but FMS/FMCs also fall in this category Family size
decreases GT => FMC => FMSThirteen PartsThirteen Parts Same
Family Same FamilyTypes of Cells Nagare CellsOperators walk the
part round the processunit productionSemi-automatic plant
usedmanual load, auto run & l d unloadDistance walked
criticalcareful handling designnarrow plantAdjust output by
altering the number& routes of the operators!Used in automotive
and electronics industriesCellular Manufacturing Cellular
Manufacturing Application of GT principles to shop floor Cellular
manufacturing consists of cells where each cell is dedicated to
produce one part family.G ll ll l f t i l th Generally, cellular
manufacturing plants have a miscellaneous facility, in addition to
cells dedicated to part families, that has the capability of
processing many diverse operations.These are helpful in processing
parts that needed to be farmed out of their cell for one or two
operations.Functional Lay out Functional Lay outFunctional Lay Out
Machines with Similar Functions Grouped TogetherCellular Lay Out
Cellular Lay OutEach cell processes a family of products with
similar sequence of operationsCell Formation Criteria Cell
Formation Criteria Parts grouped based on similarity of shape Parts
grouped based on similarity of operations Machinery grouped based
on part family superset of operations on individual products
Minimal machinery shared between cells Minimal machinery shared
between cells Machinery/equipment shared between most of the
products grouped into remainder cells (Heat Treatment, Protective
Treatments, etc.) Machine layout within a cell in linear flow
Miscellaneous facility to provide varied capabilities not available
in each cell.MachinesParts 1 2 3 4 5 6 7 8 9 10 11 12A x x x x xB x
x x xC x x xD x x x x xE x x xF x x xGMachinesParts 1 2 3 4 5 6 7 8
9 10 11 12A x x x x xB x x x xC x x xD x x x x xE x x xF x x
xGAssembly123456 789101112Assembly Assembly123456
789101112Conversion from process to Cellular layout example (use of
Kings algorithm)G x x x xH x x xG x x x xH x x x369Assembly1 248
10571112ABCRaw materialsCell 1 Cell 2 Cell 3369Assembly1 248
10571112ABCRaw materials369336699Assembly1 248 1011 224488 10
10571112557711 1112 12ABCRaw materialsCell 1 Cell 2 Cell 3C A B Raw
materials C A B Raw materials C A B Raw materialsMachinesParts 1 2
4 8 10 3 6 9 5 7 11 12A x x x x xD x x x x xF x x xC x x xG x x x
xB x x x xH x x xE x x xMachinesParts 1 2 4 8 10 3 6 9 5 7 11 12A x
x x x xD x x x x xF x x xC x x xG x x x xB x x x xH x x xE x x
xMachinesParts 1 2 4 8 10 3 6 9 5 7 11 12A x x x x xD x x x x xF x
x xC x x xG x x x xB x x x xH x x xE x x xConverting a Job Shop
into CellularConverting a Job Shop into Cellular Manufacturing
System Manufacturing SystemKINGs Algorithm is the Key.- You need
Process Part matrix.A 1 in a cell indicatesthat the part is
processed on that machine.Par t s >>> P1 P2 P3 P4 P5Mac hi
nesM1 0 1 0 1 1M2 1 0 1 0 0M3 0 1 0 1 0M4 1 0 1 0 1Step 1:Weights
on Columns Step 1:Weights on ColumnsWei ght s: 2^ 4 2^ 3 2^ 2 2^ 1
2^ 0Par t s >>> P1 P2 P3 P4 P5 Wei ght ed SumMac hi nesM1
0 1 0 1 1 11M2 1 0 1 0 0 20M3 0 1 0 1 0 10M4 1 0 1 0 1 21Step
1:Weights on Columns Step 1:Weights on ColumnsWei ght s: 2^ 4 2^ 3
2^ 2 2^ 1 2^ 0Par t s >>> P1 P2 P3 P4 P5 Wei ght ed SumMac
hi nesM1 0 1 0 1 1 11M2 1 0 1 0 0 20M3 0 1 0 1 0 10M4 1 0 1 0 1
21Apply right to left in increasing power of 2.Calculate weighted
sum for each rowStep 2:Rank Columns Step 2:Rank ColumnsWei ght s:
2^ 4 2^ 3 2^ 2 2^ 1 2^ 0Par t s >>> P1 P2 P3 P4 P5 Wei ght
ed SumMac hi nesM3 0 1 0 1 0 10M1 0 1 0 1 1 11M2 1 0 1 0 0 20M4 1 0
1 0 1 21Sort rows in increasing row weights from top downStep
3:Weights on Rows Step 3:Weights on RowsPar t s >>> P1 P2
P3 P4 P5Mac hi nesWei ght sM3 0 1 0 1 0 2^ 0M1 0 1 0 1 1 2^ 1M2 1 0
1 0 0 2^ 2M4 1 0 1 0 1 2^ 3Wei ght edSum12 3 12 3 10Apply top down
in increasing power of 2.Calculate weighted sum for each
column.Step 4: Rank the rows Step 4: Rank the rowsPar t s
>>> P1 P3 P5 P2 P4 Wei ght sMac hi nesM3 0 0 0 1 1 2^ 0M1
0 0 1 1 1 2^ 1M2 1 1 0 0 0 2^ 2M4 1 1 1 0 0 2^ 3Wei ght edSum12 3
12 3 10Sort columns in increasing column weights from right to
leftStep 5:Stopping Criterion and Step 5:Stopping Criterion andCell
Formation Cell Formation Stop when no more rows or columns are able
switch. For this case, cells are:For this case, cells are:Cell 1:M2
and M4 to process P1 and P3Cell 2:M1 and M3 to process P2 and
P4Miscellaneous facility to produce P5.Or, you can make it in Cell
1 and farm out to Cell 2.Alternately, design or process review can
be undertaken to eliminate one of the operations of P5.Benefits of
Cellular lay Out Benefits of Cellular lay OutHow Does a Work Cell
Differ from an Assembly Line? Assembly lines and work cells have
some characteristics in commonboth organize multiple functions
together to serve the needs of a particular product or service type
Although there is a gray area between the two types of work
arrangements, cells may be distinguished as follows: Cells offer
more flexibility in that they typically can produce a range of i d
t ithif il service or products within a family Assembly lines
commonly are dedicated to just one product Cell workers normally
perform a broader range of tasks than the more narrow roles typical
of assembly line work Cells often are described as a hybrid that
combines the focus and flow of an assembly line with the
flexibility of a job shop functional arrangementThank you!