Facility Layout
Module 8
July 21, 2014
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Layout Strategies in Operations Management: A Guide to Process and Product Layout, Summaries of Design
Fixed-position layout. ✓. Arranges workers and equipment around large bulky projects. Equipment and workers move to the project.
Typology: Summaries
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Facility Layout
Module 8
July 21, 2014
Overview
What is facility layout?
Layout strategies
Process layout
Product layout
Definition
Facility Layout
Arrangement of everything within a facility
departments, workgroups, machines, etc.
The goal is to ensure a smooth and
efficient work flow…
Take for example a residential house.
Once you have decided its location, the design of the house is a
formidable challenge.
What is it that you would like to achieve with the design of a:
A) House?
B) Kitchen in the house?
C) Grocery store?
D) Department store?
E) Warehouse?
F) Manufacturing plant?
G) Hospital? Doctor’s/dentist’s office? etc.
7 Layout Strategies
1. Fixed-position layout
Arranges workers and equipment around large projects (e.g., ships & buildings)
2. Office layout
Positions workers and their equipment for flow of information (CIS building…) Arranged by process or product
Accounting
Manager Brand X
Finance
Fin. Acct.
7 Layout Strategies
- Fixed-position layout Arranges workers and equipment around large projects (e.g., ships & buildings)
- Office layout Positions workers and their equipment for flow of information (CIS building…)
- Retail layout Positions products to maximize product exposure & net profit per unit of space (grocery store, department store, hardware store…) Office Carts^ Check- out Bread Meat Milk Produce Frozen Foods High-draw items around the periphery of the store No cross-over isles End isle locations used for high exposure
7 Layout Strategies
1. Fixed-position layout
Arranges workers and equipment around large projects (e.g., ships & buildings)
2. Office layout
positions workers and their equipment for flow of information
3. Retail layout
positions products to maximize product exposure & net profit per unit of space
4. Warehouse layout
Positions products according to trade-offs between material handling & space
5. Group technology (cellular) layout
Sets up small cells of machines & workers. Each cell produces family of products
6. Process layout ( also called job shop layout )
Positions departments or work centers in lo-volume, hi-variety production environments to minimize handling costs (hospital, auto repair shop…)
7. Product layout ( also called assembly line layout )
Deals with setting up assembly lines in high-volume, low-variety production environments to balance work among workstations
We will cover these layout strategies in more detail…
Materials in Finished goods out
Process/Product
Layout Types
(a) Layout of a job shop
Foundry
Milling
machines
Grinding Lathes
Painting Drills
Office
Welding
Forging
(b) Layout of a production line
Station 1 Station 2 Station 3 Station 4
PROCESS LAYOUT PRODUCT LAYOUT
Process Layout
Process Layout: Load-Distance Analysis
Example 1
Suppose we have 3 rooms in our building
How should we position the Marketing, Finance, and
Operations departments across these rooms?
1 unit (^) 1 unit average distance between rooms 5 30 20 M F O M F O
M F O
expected # of times people move between departments “Load Matrix”
Process Layout: Load-Distance Analysis
Example 1
Suppose we have 3 rooms in our building
How should we position the Marketing, Finance, and
Operations departments across these rooms?
1 unit (^) 1 unit average distance between rooms 5 30 20 M F O M F O
F O M
expected # of times people move between departments “Load Matrix”
Total # of ways to arrange 3 departments across 3
rooms? 3! = (3)(2)(1) = 6
Process Layout: Load-Distance Analysis
Example 1
Suppose we have 3 rooms in our building
1 unit (^) 1 unit average distance between rooms 5 30 20 M F O M F O
F O M
expected # of times people move between departments “Load Matrix”
How much does this configuration cost if each move costs $5/unit distance?
M-F M-O F-O 5 30 20 2 1 1 Pair (^) Load Distance (Load)(Dist.) (5)(2) = 10 30 20 Cost (10)(5) = 50 150 100 $ Total Cost
Is this the lowest
cost option?
Process Layout: Load-Distance
Analysis - Example 2
What if we have 5 hospital departments:
And our floor area looks like this:
5 30 20 A B C A B C
A B
Which departments should you try to keep close together?
D E C 5 30
20
- 4 1 2 2 0 0 - 5 0
- 4 1 2 2 0 0 - 5 0
D E D E 3 5 Assume that workers can’t move diagonally (through walls) A: receptionist B: waiting room C: x-ray D: exam room E: nurse station
Process Layout: Load-Distance
Analysis - Example 2
What if we have 5 hospital departments:
And our floor area looks like this:
5 30 20 A B C A B C
A B
D E C 5 30
20
- 4 1 2 2 0 0 - 5 0
- 4 1 2 2 0 0 - 5 0
D E D E 3 5 A-B A-C A-D A-E B-C B-D B-E C-D C-E D-E A: receptionist B: waiting room C: x-ray D: exam room E: nurse station
Hourly Cost?
5 2 4 1 3 0 2 0 0 5 1 3 1 2 2 2 1 2 1 1 Pair (^) Load Distance (Load)(Dist.) (5)(1) = 5 6 4 2 6 0 2 0 0 5 Cost Assuming it costs $0.10/ unit moved each unit distance (5)(.1) =. . . . . 0 . 0 0 . Total Cost $3.