MS-492

Facility Layout

Course Instructor:
Dr. Noor Muhammad
Teaching Assistant: Saadia Khan

Learning Objectives
Define layout planning and explain its
importance

Identify and describe different types of layouts

Compare process layouts & product layouts
Describe the steps involved in designing a
process layout

Learning Objectives cont

Describe the steps involved in designing a
product layout

Explain the advantages of hybrid layouts

What Is Layout Planning?

Layout planning is deciding the best physical arrangement of

all resources within a facility

Facility resource arrangement can significantly affect

productivity

Two broad categories of operations:

Intermittent processing systems low volume of many different
products

Continuous processing systems high volume of a few

standardized products
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Types of Layouts
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 too large to
move; e.g. a building
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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

Product Layouts
Product Layouts: Layouts that arrange resources in sequence to allow for an
efficient buildup of the product

Product layout unique characteristics are:

Resources are specialized (Produce large quantities of a product)
Facilities are capital intensive (Use automation to increase production)
Processing rates are faster (All resources are arranged in sequence for
efficient production)

Material handling costs are lower (Due to close proximity to one another,
materials handling cost are significantly lower )
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Process vs. Product Layouts

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:
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

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
Block Plan: Schematic showing the placement of resources in a facility.

10

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

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Warehouse Layouts
Warehouse Layout Considerations:
Primary decision is where to locate each department relative
to the dock

Departments can be organized to minimize load distance

totals

Departments of unequal size require modification of the

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

12

Office Layouts
Office Layout Considerations:

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
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Designing Product Layouts

Designing product layouts requires consideration
of:

Sequence of tasks to be performed by each

workstation
Logical order
Speed considerations line balancing

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Designing Product
Layouts cont
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

Line balancing is the process of assigning tasks to workstations in a product layout
in order to achieve a desired output and balance the workload among station

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Step 1: Identify Tasks & Immediate Predecessors

Example 10.4 Vicki's Pizzeria and the Precedence Diagram

Immediate
Task Time
Work Element Task Description
Predecessor
(seconds
A
B
C
D
E
F
G
H
I

Roll dough
Place on cardboard backing
Sprinkle cheese
Spread Sauce
Add pepperoni
Add sausage
Add mushrooms
Shrinkwrap pizza
Pack in box

None
A
B
C
D
D
D
E,F,G
H
Total task time

50
5
25
15
12
10
15
18
15
165

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Layout Calculations
Step 2: Determine output rate
The next step is to determine how many units of product we wish to produce over
a period of time, called the output rate.

Output = Available time / Cycle Time

Step 3: Determine cycle time

The maximum amount of time each workstation has to complete its assigned
tasks.
Cycle Time = Available time / Output

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Layout Calculations cont

Step 4: Compute the theoretical minimum number of stations
TM = number of stations needed to achieve 100% efficiency (every
second is used)
TM = task times / Cycle time

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Layout Calculations cont

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

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Last Layout Calculation

Step 6: Compute efficiency and balance delay
Efficiency (%) is the ratio of total productive time divided by
total time

Efficiency (%)

NC

165 sec.
100 91.7%
3 stations x 60 sec.

t = sum of the task times

N = number of workstations
C = Cycle time

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

Balance delay 100% 91.7% 8.3%

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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 the efficiencies of a

product layout to a process layout environment

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Process Flows before the

Use of GT Cells

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Process Flows after the

Use of GT Cells

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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 actions
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Facility Layout within OM:

How it all fits together
Layout decisions are directly related to issues of product

design and process selection

Job design, as process layouts tend to require greater
worker skills than do product layouts

Degree of automation, as product layouts tend to be more

capital intensive and use more automation compared to

process layouts
Layout decisions are also affected by implementation of
just-in-time (JIT) systems, which dictate a line flow and
the use of group technology (GT) cells
As layout decisions specify the flow of goods through the
facility, they impact all other aspects of operations
management.
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Project Grading
Submission Deadline: 15/12/2014
Value: 15%

Total Marks: 100

Project Grading
Title/Section
Format:
Executive Summary:

Marks
5
10

Introduction:

10

Methodology & Limitations:

20

Findings:

20

Recommendations:

15

Presentation:

20