Mba ii pmom_unit-2.3 facility layout a

Course: MBASubject: Production & Operation

ManagementUnit: 2.3

Facility Layout

Facility Layout

• Facilities is defined as the workspace and equipment needed to carry out the operationsof the organization. This includes offices, factories, computers, and trucks.

• The location, design, and layout of an organizations' facilities are central to maximizing the efficiency of the overall operations system.

Facility design & layout• After choosing the facility's location, the next stage in operations planning

is to design the best physical layout for the facility.

• The available space needs to be assessed with workstations, equipment, storage, and other amenities need to be arranged.

• The aim is to allow for the most efficient workflow without disruption.

• A workplace that has carefully arranged its layout will allow for a more effective and efficient workflow and produce its good or services to a high standard.

• There are three types of workflow layouts that managers can choose from:

• Process layout: arranged in departments (e.g., hospitals).

• Product layout: production line (e.g., a car assembly plant).

• Fixed-position layout: building a large item (e.g., jumbo jet).

Facility layout consideration

• Facility managers should consider several factors when designing the layout of a facility to achieve maximum effectiveness.

• does the design and layout allow for growth or change?

• Is there a chance that your company will experience significant growth?

• Could some other change come about that could influence the layout of your facility?

• Is the process flow smooth?

• Are materials being handled efficiently?

• Does the layout contribute to employee satisfaction and moral?

• Does the layout lend itself to promotional activities?

Are the facilities for an office or a factory?

An office will have different layout requirements than a factory.

Facility layout objectives

• To provide optimum space to organize equipment and facilitate movement of goods and to create safe and comfortable work environment.

• To promote order in production towards a single objective

• To reduce movement of workers, raw material and equipment

• To promote safety of plant as well as its workers • To facilitate extension or change in the layout to

accommodate new product line or technology up gradation

• To increase production capacity of the organization

Types of Layout

• Four basic layout types consisting of:– Process layouts - Group similar resources together

– Product layouts - Designed to produce a specific product efficiently

– Hybrid layouts - Combine aspects of both process and product layouts

– Fixed-Position layouts - Product is two large to move;

e.g. a building

Process Layouts

• Process layout unique characteristics include:

– Resources used are general purpose – Facilities are less capital intensive– Facilities are more labor intensive– Resources have greater flexibility– Processing rates are slower– Material handling costs are higher– Scheduling resources & work flow is more

complex– Space requirements are higher

Product Layouts

• Product layout unique characteristics are:

– Resources are specialized

– Facilities are capital intensive

– Processing rates are faster

– Material handling costs are lower

– Space requirements for inventory storage are lower

– Flexibility is low relative to the market

Process vs. Product Layout

Here are the characteristic differences between a process and product layout.

Hybrid Layouts

• Combine elements of both product & process layouts

– Maintain some of the efficiencies of product layouts

– Maintain some of the flexibility of process layouts

• Examples:

– Group technology & manufacturing cells

– Grocery stores

Fixed-Position Layout

• Used when product is large

• Product is difficult or impossible to move, i.e. very large or fixed

• All resources must be brought to the site

• Scheduling of crews and resources is a challenge

Designing Process Layouts

Step 1: Gather information:Space needed, space available, identify closeness measures

Step 2: Develop alternative block plans:Using trial-and-error or decision support tools

Step 3: Develop a detailed layout:Consider exact sizes/shapes of departments and work

centers including aisles and stairways

Tools like drawings, 3-D models, and CAD software are available to facilitate this process

Special Cases of Process Layouts

A number of unique process layouts require special attention. We will look at two of these:

• Warehouse layouts

• Office Layouts

Warehouse Layouts

Warehouse Layout Considerations:– Primary decision is where to locate each department

relative to the dock– Departments can be organized to minimize “ld” totals– Departments of unequal size require modification of the

typical ld calculations to include a calculation of the “ratio of trips to area needed”

– The usage of “Crossdocking” modifies the traditional warehouse layouts; more docks, less storage space, and less order picking

Office Layouts

Office Layout Considerations:– Almost half of workforce works in an office environment

– Human interaction and communication are the primary factors in designing office layouts

– Layouts need to account for physical environment and psychological needs of the organization

– One key layout trade-off is between proximity and privacy

– Open concept offices promote understanding & trust

– Flexible layouts incorporating “office landscaping” help to solve the privacy issue in open office environments

Designing Product Layouts

• Designing product layouts requires consideration of:

– Sequence of tasks to be performed by each workstation

– Logical order

– Speed considerations – line balancing

Designing Product Layouts – con’t

Step 1: Identify tasks & immediate predecessors

Step 2: Determine output rate

Step 3: Determine cycle time

Step 4: Compute the Theoretical Minimum number of Stations

Step 5: Assign tasks to workstations (balance the

line)

Step 6: Compute efficiency, idle time & balance delay

Step 1: Identify Tasks & Immediate Predecessors

Example 10.4 Vicki's Pizzeria and the Precedence Diagram

Immediate Task Time

Work Element Task Description Predecessor (secondsA Roll dough None 50

B Place on cardboard backing A 5

C Sprinkle cheese B 25

D Spread Sauce C 15

E Add pepperoni D 12

F Add sausage D 10

G Add mushrooms D 15

H Shrinkwrap pizza E,F,G 18

I Pack in box H 15

Total task time 165

Layout Calculations

• Step 2: Determine output rate– Vicki needs to produce 60 pizzas per hour

• Step 3: Determine cycle time

– The amount of time each workstation is allowed to complete its tasks

– Limited by the bottleneck task (the longest task in a process):

sec./unit 60units/hr 60

sec/min 60x min/hr 60

units/hroutput desired

sec./day time available)(sec./unit time Cycle

hourper pizzasor units/hr, 72sec./unit 50

sec./hr. 3600

time task bottleneck

time availableoutput Maximum

Layout Calculations con’t

• Step 4: Compute the theoretical minimum number of stations– TM = number of stations needed to achieve 100%

efficiency (every second is used)

– Always round up (no partial workstations)

– Serves as a lower bound for our analysis

stations 3or 2.75,

nsec/statio 60

seconds 165

time cycle

times taskTM

Layout Calculations con’t

• Step 5: Assign tasks to workstations

– Start at the first station & choose the longest eligible task following precedence relationships

– Continue adding the longest eligible task that fits without going over the desired cycle time

– When no additional tasks can be added within the desired cycle time, begin assigning tasks to the next workstation until finished

Workstation Eligible task Task Selected Task time Idle time

A A 50 10

B B 5 5

C C 25 35

D D 15 20

E, F, G G 15 5

E, F E 12 48

F F 10 38

H H 18 20

I I 15 5

1

2

3

Last Layout Calculation

• Step 6: Compute efficiency and balance delay

– Efficiency (%) is the ratio of total productive time divided by total time

– Balance delay (%) is the amount by which the line falls short of 100%

91.7%100sec. 60x stations 3

sec. 165

NC

t (%) Efficiency

8.3%91.7%100%delay Balance

Other Product Layout Considerations

• Shape of the line (S, U, O, L):– Share resources, enhance communication & visibility,

impact location of loading & unloading

• Paced versus Un-paced lines– Paced lines use an automatically enforced cycle time

• Number of Product Models produced– Single– Mixed-model lines

Group Technology (CELL) Layouts

• One of the most popular hybrid layouts uses Group Technology (GT) and a cellular layout

• GT has the advantage of bringing theefficiencies of a product layout to a process layout environment

Process Flows before the Use of GT Cells

Process Flows after the Use of GT Cells

Facility Layout Across the Organization

Layout planning is organizationally important for an efficient operations

– Marketing is affected by layout especially when clients come to the site

– Human resources is affected as layout impacts people

– Finance is involved as layout changes can be costly endeavors

Reference

• http://www.managementstudyguide.com

• https://www.boundless.com