Operations Management

Facility Layout

Presented by:
➢ Nitesh Gupta
➢ Jagdish Shrestha
➢ Vishal Bajaj
➢ Rajendra Khanal
➢ Prasanna Thapa
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 List of Presentation
• Introduction to layout and importance
• Types of layout
• Designing Product Layout
• Line Balancing
• Designing Process Layout

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Layout

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 What is facility?
• Manufacturing org Factory and Plant
• Service org Facility

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 What is Facility Layout ?
• Location or arrangement of everything
within & around buildings

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 Major Objectives of Layout
• Provide enough production capacity
• Reduce material handling costs
• Easy supervisions
• Improvement in productivity
• Efficient utilization labor
• Increase in morale of the employees
• Avoid or minimize accidents and hazards to personnel
• Reduce congestion
• Utilize the space efficiently and effectively
• Improve customer satisfaction

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 Strategic Importance of
Layout
Proper layout enables:
• Higher utilization of space, equipment , and
people
• Improved flow of information, materials, or
people
• Improved employee morale and safer working
conditions
• Improved customer/client interaction
• Flexibility

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 Types of Layout
• Process Layout (Functional Layout)
• Product Layout (Assembly line)
• Combination Layout (process + Product) /
Cellular
• Fixed position Layout

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 Process Layout
• Appropriate for intermittent operation
• Work centers or departments are grouped
together according to their functional type.
– Keeping similar machines or similar operation at
one location
• A work centre is a facility, set of machines, or
workstations that provides a service or
transformation needed by a job (order).

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 Emergency Room Layout
Triage room Patient A -
broken leg
E.R. Admissions
ry

Patient B – heart
rg e

problems
Su

Labs

Ra
d iolo
gy
E.R. beds Pharmacy Billing/exit

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Fixed position Layout

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 Product Layout
• Appropriate for standardized product, usually
in large volume.
• The arrangement of facility so that work
centers or equipment are in a line to afford a
specialized sequence of tasks.

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 Product layout of car wash

Waiting Cars

Hand
Top Side wipe
Hot Final Hot
Clean Wash wash and
Out
Water rinse blowe
and and cleanup
Spray spray r
brush brush

Exit

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TIA LAYOUT
 Characteristics of Layout
Aspects of Layout Type
Conversion
Process Product-oriented Process-oriented

Product Standardized product, large Diversified products using

volume, stable rate of output common operations, varying
volumes, varying rate of output

Work flow Straight line of product; same Variable flow; each order
sequence of operations for (product) may require unique
each unit sequence of operations

Human Skills Able to perform routine, Primarily skilled craftsmen; able

repetitive tasks at fixed pace; to perform without close
highly specialized supervision and be moderately
adaptable

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Aspects of
Conversion Product-oriented Process-oriented
Process

Support staff Large; schedule materials and Perform tasks of scheduling,

people, monitor and materials handling, and
maintain work production and inventory control

Material Predictable, flow, Flow variable; handling often

handling systematized and often duplicated
automated

Inventory High turnover of raw material Low turnover of raw material

and work-in-progress and work-in-progress
inventories inventories; high raw materials
inventories

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 Product-oriented Process-oriented
Space Efficient utilization, large Small output per unit space;
utilization output per unit space large work-in-progress
requirements

Capital Large investment in General purpose, flexible

requirements specialized equipment and equipment and processes
processes

Product costs Relatively high fixed costs; Relatively low fixed costs; high
low unit costs for direct unit costs for direct labour,
labour and materials materials, and materials handling

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 Assembly Line Balancing
• Analysis of production lines
• Nearly equally divides work between
workstations while meeting required output
• Objectives
– Maximize efficiency
– Minimize number of
work stations

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 Assembly Line Balancing
The General Procedure
• Determine cycle time by taking the demand (or
production rate) per day and dividing it into the
productive time available per day
• Calculate the theoretical minimum number of work
stations by dividing total task time by cycle time
• Perform the line balance and assign specific
assembly tasks to each work station

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 Assembly Line Balancing Steps
1. Determine tasks (operations)
2. Determine sequence
3. Draw precedence diagram
4. Estimate task times
5. Calculate cycle time
6. Calculate number of work stations
7. Assign tasks
8. Calculate efficiency

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 Assembly Lines Balancing Concepts

Question: Suppose you load work into the three work stations
below such that each will take the corresponding number of
minutes as shown. What is the cycle time of this line?

Station 1 Station 2 Station 3

Minutes
per Unit
6 7 3
Answer: The cycle time of the line is always determined by the work station taking
the longest time. In this problem, the cycle time of the line is 7 minutes. There is
also going to be idle time at the other two work stations.

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 Example of Line Balancing

• You’ve just been assigned the job a setting up an

electric fan assembly line with the following tasks:

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 Example of Line Balancing:
Structuring the Precedence Diagram
Task Predecessors Task Predecessors
A None E D

B A F E
C None G B
D A, C H F, G

A B G

C D E F

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Example of Line Balancing: Precedence Diagram
Question: Which process step defines the maximum rate of
production?
2 1 1
1.4
A B G
H

C D E F
3.25 1.2 .5 1

Answer: Task C is the cycle time of the line and therefore, the maximum
rate of production.

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Example of Line Balancing: The Bottleneck

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Thank You!

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