Facilities layout and material handling

notebook

By Hester Jackson

January 2018

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 Contents
1.1 What is facilities layout? ...................................................................................................................... 4

1.2 A properly planned facilities layout aims at achieving the following objectives: .............................. 5

1.3 Facilities planning process. ................................................................................................................... 6

1.3.1 The following layout procedure cover the process /procedures of these authors. .............................. 6

1.3.2 6 factors which determine a successful layout ..................................................................................... 7

1.4 Creating facilities involves a holistic approach, which have the following elements. .......................... 8

1.5 The strategic planning and contingency planning within facilities. ............................................ 9

1.6 Process selection ................................................................................................................................. 13

1.6.1 Job shop............................................................................................................................................ 13

1.6.2 Batch.................................................................................................................................................. 13

1.6.3 Repetitive ........................................................................................................................................... 13

1.6.4 Continuous .......................................................................................................................................... 14

1.6.5 Project ................................................................................................................................................. 14

1.7 Layouts types ...................................................................................................................................... 15

1.7.1 Product layouts: repetitive processing ................................................................................................ 15

1.7.2 Process Layout.................................................................................................................................... 17

1.7.3 Fixed Layout ................................................................................................................................ 18

1.7.4 Cellular Layouts ..................................................................................................................................... 19

1.8 Summary ............................................................................................................................................. 20

2.1. The product design .......................................................................................................................... 21

2.2 Tools for product identification .......................................................................................................... 22

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2.2.1 Assembly drawing ............................................................................................................................... 22

2.3 Process design ..................................................................................................................................... 25

2.3.1 Identifying the required process ........................................................................................................ 25

2.3.2 Selecting the required process............................................................................................................ 27

2.3.4 Sequencing the required process....................................................................................................... 29

2.4. Schedule design ............................................................................................................................... 31

2.5 Personnel requirement analysis .................................................................................................... 33

3.1. Introduction ....................................................................................................................................... 35

3.2 Goals of flow analysis .......................................................................................................................... 35

3.3 Flow systems ...................................................................................................................................... 35

3.3.1 Materials management system ......................................................................................................... 35

3.3.2 Material flow system ........................................................................................................................ 36

3.4 Flow analysis techniques .................................................................................................................... 37

3.5 Flow planning ..................................................................................................................................... 40

3.5.1 Flow within workstations ................................................................................................................... 40

3.5.2 Flow within departments .................................................................................................................. 40

3.5.3 Flow patterns between departments ................................................................................................ 42

3.6 Flow patterns can be affected by the following:............................................................................... 45

3.7 Good flow system ............................................................................................................................... 45

3.8 Principles of a good layout ................................................................................................................. 47

4.1 From-to-chats ..................................................................................................................................... 49

4.1.1 Stevenson and Sum (2015) Have compiled the following information that is required in order to
construct a From-To-Chart. ................................................................................................................. 50

4.2 Group Technology (GP) ...................................................................................................................... 69

5.1 Importance of material handling ........................................................................................................ 80

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References ................................................................................................................................................. 92

Chapter 1: introduction to facilities

layout.
1.1 What is facilities layout?

It is when people make use of equipment, materials and other resources to make a
tangible product or to render a service.

“A facility layout is an arrangement of everything needed for production of goods or

delivery of services. A facility is an entity that facilitates the performance of any job. It may
be a machine tool, a work centre, a manufacturing cell, a machine shop, a department, a
warehouse, etc” (Heragu, 2008)

It is concerned with the orderly and proper arrangement and use of available resources
such as men, money, machines, materials and methods of production inside the factory.
A well-designed facilities layout is concerned with maximum and effective utilization of
available resources at minimum operating costs. The concept of facilities layout is not
static but dynamic one. It is because of continuous manufacturing and technological
improvements taking place necessitating quick and immediate changes in production
processes and designs. A new layout may be necessary because of technological
changes in the products as well as simple change in processes, machines, methods and
materials”. A new layout also becomes necessary when the existing layout becomes
ineffective and poor or is not conducive to the changed circumstances. There are certain
indications, which raise alarm for immediate changes in the existing layout of plant.

These indications may be in the form of excessive manufacturing time, improper storage,
lack of control over materials and employees, poor customer service, excessive work in
progress and work stoppages etc.

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1.2 A properly planned facilities layout aims at achieving the following
objectives:

1. To achieve economies in handling of raw materials, work in- progress and finished
goods.
2. To have most effective and optimum utilization of available floor space.
3. To minimize bottlenecks and obstacles in various production processes thereby
avoiding the accumulation of work at important points.
4. NO back tracking will be happening.
5. To introduce system of production control, and capacity.
6. To provide better quality products at lesser costs to the consumers.
7. To ensure loyalty of workers and improving their morale.
8. Improve housekeeping and ensure a safe work environment.
9. To provide for adequate storage and packing facilities.
10. Reduce material handling costs
11. Supervision and control will be improved
12. To workout possibilities of future expansion of the plant.
13. To provide such a layout which permits meeting of competitive costs

“Its objective is to combine labour with the physical properties of a plant - machinery,
plant services- and handling equipment) in such a manner that the greatest output of
high quality goods and services, manufactured at the lowest unit cost of production and
distribution, will result.” (Shubin and Madeheim, 1951)

According to Tompkins et al. (2010), facilities design is used to achieve supply chain
excellence. Facilities within a good supply chain should have the following characteristics:

 Flexibility: the facility need to be able to handle a variety of requirements, without

being altered.
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  Modularity: the systems can cooperate efficiently over a wide range of operating
rates.
 Upgradability: an upgraded facility can incorporate advances in equipment
systems and technology.
 Adaptability: take in consideration the implications of calendars, cycles and peaks
in facility use.
 Selective operability : understand how each facility segment works and allows for
contingency plans to be in place/

1.3 Facilities planning process.

In the past years various facilities layout authors has developed layout process.

 We can find the traditional engineering design process, discussed by

Tompkins
 There is the “Winning” Facilities planning process and there is the layout
procedure by James. M Apple.

1.3.1 The following layout procedure cover the process /procedures of

these authors.

Plant Layout Procedure - Phase 1 Information Gathering

• Determine what will be produced

• Determine how many will be produced

• Determine what components will be made or purchased

• Determine required operations

• Determine sequence of operations

• Set time standards for each operation

Plant Layout Procedure - Phase 2 Production and Flow Analysis

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 • Determine the plant rate, R

• Determine the number of machines

• Balance production lines

• Study the flow requirement

• Determine activity relationships

• Layout each workstation

Plant Layout Procedure - Phase 3 Support Services

• Identify needs for personal and plant services

• Identify office needs

• Develop total space requirements

• Select material handling equipment

• Allocated area

• Develop plot plan and building shape

Plant Layout Procedure - Phase 4 Implementation and Evaluation

• Construct master plan

• Seek input and adjust

• Seek approvals

• Install

• Start up

• Follow up

1.3.2 6 factors which determine a successful layout

1. Directed Flow Patterns:

a. Straight

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 b. Keep backtracking to the minimum
2. Predictable Processing time
3. Little WIP in facility
4. Open floors: all communication and easy tracking of work and employees
5. Bottleneck operations under control
6. Work stations close together

1.4 Creating facilities involves a holistic approach, which have the following
elements.

1. Total integration: this is a top –down approach, starting with the

customer. It involves the integration of material and information flow.
2. Blurred boundaries: eliminating the traditional customer/supplier and
manufacturing/warehouse relationships.
3. Consolidation: merging of similar and disparate business entities that
result in fewer and stronger competitors, customers and suppliers.
4. Reliability: the implementation of robust systems, redundant systems
and fault-tolerant systems to create a very high level of up-time.
5. Maintenance: a combination of preventative maintenance and predictive
maintenance problems
6. Economic progressiveness: the adoption of innovative fiscal practices
that integrate scattered information into a whole that my used for
decision-making.

It is therefore important that the continuous improvement, figure1, for supply chain
excellence be integrated into the facilities planning cycle. The facilities planning process
should be understood in the concept of a facility life cycle. The facility is continuously
improved in order to meet the objectives.

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Figure 1: Continuous improvement facilities planning cycle

1.5 The strategic planning and contingency planning within facilities.

The definition of strategic management is: the art and science of employing the resources
of a firm to achieve its business objectives. It is therefore important to create a SWOT
,strengths, weaknesses, opportunities and threats, analysis before designing or
improving a layout.

The contingency planning on the other hand is also very important. A contingency plan
is a course of action designed to help an organization respond effectively to a significant
future event or situation that may or may not happen. As a designer you have to anticipate
what can go wrong within the facility and have an action/corrective plan ready and in
place. The management of the organization has a responsibility to recover from such

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incidents in the minimum amount of time, with minimum disruption and at minimum cost.
This requires careful preparation and planning.

Steps in the contingency plan

Below is a model contingency planning process for humanitarian crises. Each step in the
process is presented, along with some of the major issues associated with the step.

Figure 2: contingency plan model

Early warning

Early warning triggers the contingency planning process. When the first signs of an
emerging crisis are detected, contingency planning should begin or existing relevant
contingency plans should be updated. For example, when the first signs of drought are
detected in an area where people are already food insecure, planning for a food security
crisis should begin.

Early warning also triggers the implementation of the contingency plans developed and
preparedness actions identified during the planning process. In other words, when signs
of an emerging crisis are detected, response measures – outlined in a contingency plan
– should be implemented. Following the example above, when monitoring shows crop
and pasture failure as the result of a drought, responses such as food aid, livestock health
interventions, seeds and input support, etc. should start to be implemented, according to
the plan and the needs.

Coordinating and preparing the contingency planning process

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An effective contingency planning process involves multiple actors, be they different
offices or staff members in one organization or staff from different organizations. To
ensure that these actors are efficiently integrated into a productive planning process, it is
necessary to make a plan for how to develop a contingency plan: who will do what, when
and how?

Context analysis, hazard and risk analysis

Planning for potential situations requires a good understanding of the hazards facing a
population and the risks that population faces as a result. Therefore, the first step in a
contingency planning process is to gain a clear understanding of these hazards and
associated risks. This is done by collecting and analyzing reports, maps, baseline data
and other sources of information on the hazards faced in a country or region. It also
involves discussing the issues with relevant experts and organizations, such as
government ministries.

Contingency prioritization

Contingency planning can be an intensive process and often one that is carried out in a
busy environment, where people have limited time and resources to dedicate to the
process. Therefore, planners need to select a small number of contingencies and
scenarios to plan for. Criteria for making this decision often include how serious the crisis
could be; how likely the situation is; and whether planning for one event could help
respond to another, for example planning for a hurricane may help in responding to
flooding in the same area.

Scenario building

Once you know what you are going to plan for, it is necessary to develop a scenario. A
scenario is a set of assumptions about what will happen, as the result of the contingency
such a hazard, threat or situation, you are planning for example, how many people will be
affected? How will they be affected? Where are they located? How long will they be
affected? Based on these assumptions, plans are developed. Scenario building is
perhaps the most difficult step in the contingency planning process, because it involves
defining what is likely to happen in the future, where there are almost infinite possibilities.

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Experience shows that developing flexible scenarios that support the development of
easily adaptable plans is the best approach.

Develop contingency plans

Based on the developed scenarios, planners make decisions about what they will do to
address the situation they have described. For example, if a scenario estimates that
100,000 people will be food insecure and unable to meet their food needs for six months,
a food aid program for that period could be conceived. Contingency plans should go
beyond defining response options and include an analysis of what would be required to
implement a response programmatically, operationally, logistically and administratively.
Contingency plans should also include an estimate of how much a given response will
cost.

Implementation of follow-up and preparedness actions

During the contingency planning process, actions that would increase preparedness or
need following up inevitably emerge. A good contingency planning process will ensure
that these issues are recorded, prioritized and implemented. The implementation of
preparedness actions can be the most important part of contingency planning and will
improve the quality and speed of a response. Without this follow-up, contingency planning
remains an interesting paper exercise.

Update contingency plans

Contingency plans become outdated as events overtake the original assumptions.

Therefore, contingency plans need to be regularly updated to ensure they are relevant.
Moreover, regularly updating contingency plans is one way to facilitate the continuation
of the process and the relationships developed during the process.

Activate contingency plans

When a crisis materializes, contingency plans need to be implemented. Normally, an

emergency assessment should be undertaken and used to validate or repudiate the
assumptions made in the contingency plan. Based on the results of the assessment, the
contingency plan should be adapted, converted into a response plan, and implemented.

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1.6 Process selection

It is important to know that there are five basic process types and it is explained as follows
by (Stevenson and Hojati, 2007).

1.6.1 Job shop

Job shop structure, where each flow will be similar but slightly different, such as
poster printing

A job shop has low volume with high customization. In this structure there are
specific processing steps that are preformed which are different for each
product. Workers in this process structure are highly skilled and are able to use
different machinery. Job shops are highly flexible and have low capital
investment.

When an order arrives in the job shop, the part being worked on travels throughout
the various areas according to a sequence of operations. Not all jobs will use every
machine in the plant. Jobs often travel in a jumbled routing and may return to the
same machine for processing several times. This type of layout is also seen in
services like department stores or hospitals, where areas are dedicated to one
particular product : men's clothing or one type of service maternity ward.

1.6.2 Batch

A batch process, where each flow produces a batch of identical products, such as baking

A batch process produces products in batches. Quantities are small to moderate

and are somewhat flexible causing moderate customization.

1.6.3 Repetitive

An assembly line structure/ Repetitive process, where the flow produces a continuous
supply of fixed goods, such as a car assembly line

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A line process has standardized customization and volume. An assembly line uses
a line flow of information and material. Companies that use this process generally
use a make-to-stock strategy. A line also involves a high amount of capital
investment.

1.6.4 Continuous

Continuous flow structure, where a continuous supply of finished goods is produced, such
as in an oil refinery

Continuous flow has a fixed amount of steps for producing each product. This process
structure produces high volumes with standardized products. It also has low flexibility and
involves high capital investment. With continuous flow manufacturers want to maximize
utilization to avoid unnecessary expenses.

1.6.5 Project

Project structure, where a single project is planned with a fixed end date, such as building
a house

Project process has high customization and provides products in low volumes. Normally
each product that is produced is specialized according the customer’s needs and wants.
In order to complete, a project process a company will normally need to bring in
specialized resources. Projects also require workers with specialized skills in order to
complete the product or service. This process normally has low capital intensity and high
flexibility.

The particular process selected for any operation will depend on the type and amount of
product to be produced. For example, the construction of one vehicle would be best done
by using a project methodology, whilst the construction of a large number would justify

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the construction of an assembly line. In addition, the firm needs to consider how much
capital it has available to invest, and any economies of scale that it may achieve in the
production process. A firm also needs to consider what its marketing and business
strategy is, and how it can use its operations to develop a competitive advantage. For
example, a job shop process flow will allow the firm to develop products that are more
individual. In contrast, the production line and continuous flow approaches will allow
companies to make products as cheaply as possible.

1.7 Layouts types

The three basic types of layouts Product layout, process layout and fixed position
layout. Each of these layout types will be discussed the following sections. Inman
(n.d.), and (Bennett, n.d)summarized the different layout in the following sections.

1.7.1 Product layouts: repetitive processing

Product layouts are found in flow shops (repetitive assembly and process or
continuous flow industries). Flow shops produce high-volume, highly standardized
products that require highly standardized, repetitive processes. In a product layout,
resources are arranged sequentially, based on the routing of the products. In theory,
this sequential layout allows the entire process to be laid out in a straight line, which
at times may be totally dedicated to the production of only one product or product
version. The flow of the line can then be subdivided so that labor and equipment are
utilized smoothly throughout the operation.

Two types of lines are used in product layouts: paced and unpaced. Paced lines can
use some sort of conveyor that moves output along at a continuous rate so that
workers can perform operations on the product as it goes by. For longer operating
times, the worker may have to walk alongside the work as it moves until he or she is
finished and can walk back to the workstation to begin working on another part (this
essentially is how automobile manufacturing works).
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On an unpaced line, workers build up queues between workstations to allow a
variable work pace. However, this type of line does not work well with large, bulky
products because too much storage space may be required. Also, it is difficult to
balance an extreme variety of output rates without significant idle time. A technique
known as assembly line balancing can be used to group the individual tasks
performed into workstations so that there will be a reasonable balance of work among
the workstations.

Product layout efficiency is often enhanced through the use of line balancing. Line
balancing is the assignment of tasks to workstations in such a way that workstations
have approximately equal time requirements. This minimizes the amount of time that
some workstations are idle, due to waiting on parts from an upstream process or to
avoid building up an inventory queue in front of a downstream process.

Advantages of product layouts include:

 Output. Product layouts can generate a large volume of products in a short

time.
 Cost. Unit cost is low as a result of the high volume. Labor specialization
results in reduced training time and cost. A wider span of supervision also
reduces labor costs. Accounting, purchasing, and inventory control are
routine. Because routing is fixed, less attention is required.
 Utilization. There is a high degree of labor and equipment utilization.

Disadvantages of product layouts include:

 Motivation. The system's inherent division of labor can result in dull,

repetitive jobs that can prove to be quite stressful. Also, assembly-line
layouts make it very hard to administer individual incentive plans.
 Flexibility. Product layouts are inflexible and cannot easily respond to
required system changes—especially changes in product or process
design.

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  System protection. The system is at risk from equipment breakdown,
absenteeism, and downtime due to preventive maintenance

1.7.2 Process Layout

Process layouts are found primarily in job shops, or firms that produce customized, low-
volume products that may require different processing requirements and sequences of
operations. Process layouts are facility configurations in which operations of a similar
nature or function are grouped together. As such, they occasionally are referred to as
functional layouts. Their purpose is to process goods or provide services that involve a
variety of processing requirements. A manufacturing example would be a machine shop.
A machine shop generally has separate departments where general-purpose machines
are grouped together by function (e.g., milling, grinding, drilling, hydraulic presses, and
lathes). Therefore, facilities that are configured according to individual functions or
processes have a process layout. This type of layout gives the firm the flexibility needed
to handle a variety of routes and process requirements. Services that utilize process
layouts include hospitals, banks, auto repair, libraries, and universities.

Improving process layouts involves the minimization of transportation cost, distance, or

time. To accomplish this some firms use what is known as a Muther grid, where subjective
information is summarized on a grid displaying various combinations of department, work
group, or machine pairs. Each combination (pair), represented by an intersection on the
grid, is assigned a letter indicating the importance of the closeness of the two (A =
absolutely necessary; E = very important; I = important; O = ordinary importance; U =
unimportant; X = undesirable). Importance generally is based on the shared use of
facilities, equipment, workers or records, work flow, communication requirements, or
safety requirements. The departments and other elements are then assigned to clusters
in order of importance.

Advantages of process layouts include:

 Flexibility. The firm has the ability to handle a variety of processing requirements.

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  Cost. Sometimes, the general-purpose equipment utilized may be less costly to
purchase and less costly and easier to maintain than specialized equipment.

 Motivation. Employees in this type of layout will probably be able to perform a

variety of tasks on multiple machines, as opposed to the boredom of performing a
repetitive task on an assembly line. A process layout also allows the employer to
use some type of individual incentive system.

 System protection. Since there are multiple machines available, process layouts
are not particularly vulnerable to equipment failures.

Disadvantages of process layouts include:

 Utilization. Equipment utilization rates in process layout are frequently very low,
because machine usage is dependent upon a variety of output requirements.

 Cost. If batch processing is used, in-process inventory costs could be high. Lower
volume means higher per-unit costs. More specialized attention is necessary for
both products and customers. Setups are more frequent, hence higher setup costs.
Material handling is slower and more inefficient. The span of supervision is small
due to job complexities (routing, setups, etc.), so supervisory costs are higher.
Additionally, in this type of layout accounting, inventory control, and purchasing
usually are highly involved.

 Confusion. Constantly changing schedules and routings make juggling process

requirements more difficult

1.7.3 Fixed Layout

The term “fixed position” implies that the product remains (more or less) stationary and
all materials, equipment, labor, instructions, etc. are brought to the place of work. The
service equivalent might be where the “customer” remains stationary and the various
elements of the service are delivered to the point where the customer is located. The
labor resource can comprise an individual worker or might involve group working.

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Fixed position layouts are usually a feature of batch production, or jobbing operations.
They offer a number of advantages, the most important of which is product flexibility. This
is achieved because the machines and equipment used in fixed position layouts are
mostly of a general-purpose nature, the workers are usually multiskilled, and several
different products (or services) can be produced simultaneously and in parallel.

In some cases, use of a fixed position layout is unavoidable because of the sheer size
and nature of the product being made e.g., construction of an oilrig; or because the
product will remain.

Another layout type that can be a combination of the above three types, is the cellular
layout, also known as group technology.

1.7.4 Cellular Layouts

The Business directory (n.d) explained the Cellular Layout as follows.

Cellular Layout is a lean method of producing similar products using cells, or groups of
team members, workstations, or equipment, to facilitate operations by eliminating setup
and unneeded costs between operations. Cells might be designed for a specific process,
part, or a complete product. They are favorable for single-piece and one-touch production
methods and in the office or the factory. Because of increased speed and the minimal
handling of materials, cells can result in great cost and time savings and reduced
inventory.

Cellular design often uses group technology, which studies a large number of
components and separates them into groups with like characteristics, sometimes with a
computer's help, and which requires the coding of classifications of parts and operations.

Cellular design also uses families-of-parts processing, which groups components by

shape and size to be manufactured by the same people, tools, and machines with little
change to process or setup.

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Regardless of the cell design (straight line, u-shape, or other), the equipment in the cell
are placed very near one another to save space and time. The handling of materials can
be by hand, conveyor, or robot. A cell supervisory computer must use to control
movement between equipment pieces and the conveyor when robots or conveyors are
used.

1.8 Summary

It is important to understand that each business, weather it is manufacturing or service

industry is unique. A automotive industry does not have the same type of layout than a
bank, and therefore different procedures and different layout types will be in place.

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Chapter 2: product, process and schedule design.

In order to develop a good layout, you need to have some information on the product
analysis and the process analysis. It is important to know the steps and procedures
involved to manufacture different products. This information will greatly assist in the
design of the Layout.

2.1. The product design

Kassir (2014/2015) Define product design as follows: it is the process of defining

all the features and characteristics of the product to manufacture.

Product design also includes the design of services. Consumers respond to a

product’s appearance, colour, texture, and performance. All of its features, summed
up, are the product’s design. Someone came up with the idea of what this product
will look like, taste like, or feel like so that it will appeal to the customers. This is the
purpose of product design. Product design defines a product’s characteristics, such
as its appearance, the materials it is made of, its dimensions and tolerances, and its
performance standards.

Questions to answer before alternative facility plans can be generated are the
following:

1. What is to be produced?

2. How are the products to be produced?

3. When are the products to be produced?

4. How much of each product will be produced?

5. For how long will the products be produced?

6. Where are the products to be produced?

During the process of designing the product, there are certain tools that can assist
you in the design of the product.
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2.2 Tools for product identification

 Model (prototype)
• Physical (wood, actual material, …)
• Graphic (on computer)
 Pictorial representation
• Exploded assembly drawing
• Exploded parts photograph
• Drawings Parts list
• Product tree

2.2.1 Assembly drawing

 A complete assembly drawing is presentation of the product or structure

put together, showing all parts in their operational positions. The separate
parts come to the assembly department after their manufacturing
processes are finished and in this department, they are put together
according the assembly drawings. Small machining operations may be
necessary during assembly process such as drilling, reaming, or hand
finishing. For such cases, assembly drawings include a note explaining
the required operation and give the dimensions for the alignment or
location of the pieces.
 Several different methods can be used to produce assembly drawings;
the simplest one tracing from the design layouts. This method is inferior
to the method that the assembly drawing is produced from the dimensions
of detail drawings if the accuracy of checking considered. Of course, the
second method is very time consuming. Whereas, the Computer Aided
Drafting can be a huge timesaver when an assembly drawing is being
produced. Nowadays, there are so sophisticated CAD programs and

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 equipment; almost all the manufacturers use these programs to recover
high initial costs. Although many assembly drawings do not need
dimensions, the overall dimensions and distances between the centres
or from part to part of the different pieces to clarify the relationship of the
parts with each other’s. An assembly drawing should not be overloaded
with detail.
 Assembly drawings should include reference letters and numbers
representing the different parts. These part numbers usually enclosed by
circles with a leader pointing to the piece.
 A unit assembly (subassembly) is a drawing of a related group of parts
and used to show the assembly of complicated machinery for which it
would be practically impossible to show all the features on one drawing.
To illlustrate; headstock, tailstock, and gearbox unit assemblies should
be included in the drawing of a lathe.

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 A unit assembly drawing.
 An outline assembly is used to describe the exterior shape of a machine
or structure, so it contains only the primary dimensions. If it is made for
catalogs or illustrative purposes, dimensions are often omitted. They are
also called as installation drawings.
 An assembly working drawing includes all the necessary information for
producing a machine or structure on one drawing. This requires providing
adequate orthographic views together with dimensions.
 A diagram drawing is an assembly showing ,symbolically, installation of
equipment and often made in pictorial form.

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  The bill of material is a tabulated list placed either on the assembly
drawing or on a separate sheet. The list gives the part numbers, names,
quantities, material and sometimes-stock sizes of raw material, detail
drawing number, etc. The term "bill of material" is usually used in
structural and architectural drawing whereas the term "part list" is used in
machine-drawing practice.

2.3 Process design

Here the process planer will determine how the product is to be manufactured. First, we
need to identify the required process. Before this can be done, the planner needs to
decide if the product is to be made by them, or if the product will be bought from
another organization.

2.3.1 Identifying the required process

 Make or buy decisions

The make-or-buy decision is the act of making a strategic choice between producing
an item internally (in-house) or buying it externally (from an outside supplier). The buy
side of the decision also is referred to as outsourcing. Make-or-buy decisions usually
arise when a firm that has developed a product or part—or significantly modified a
product or part—is having trouble with current suppliers, or has diminishing capacity
or changing demand.

Make-or-buy decisions also occur at the operational level. Analysis in separate texts
by Burt, Dobler, and Starling, as well as Joel Wisner, G. Keong Leong, and Keah-
Choon Tan, suggest these considerations that favor making a part in-house:

 Cost considerations (less expensive to make the part)

 Desire to integrate plant operations

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  Productive use of excess plant capacity to help absorb fixed overhead
(using existing idle capacity)
 Need to exert direct control over production and/or quality
 Better quality control
 Design secrecy is required to protect proprietary technology
 Unreliable suppliers
 No competent suppliers
 Desire to maintain a stable workforce (in periods of declining sales)
 Quantity too small to interest a supplier
 Control of lead time, transportation, and warehousing costs
 Greater assurance of continual supply
 Provision of a second source
 Political, social or environmental reasons (union pressure)
 Emotion (e.g., pride)

Factors that may influence firms to buy a part externally include:

 Lack of expertise
 Suppliers' research and specialized know-how exceeds that of the buyer
 cost considerations (less expensive to buy the item)
 Small-volume requirements
 Limited production facilities or insufficient capacity
 Desire to maintain a multiple-source policy
 Indirect managerial control considerations
 Procurement and inventory considerations
 Brand preference
 Item not essential to the firm's strategy

An example of a make or buy decision process.

26
2.3.2 Selecting the required process

 The bill of materials

A bill of materials or product structure (sometimes bill of material, BOM or

associated list) is a list of the raw materials, sub-assemblies, intermediate
assemblies, sub-components, parts and the quantities of each needed to
manufacture an end product. Below is an example of a BOM.

27
You can make use of a product tree structure:

Air flow regulator Level 0

Main Pipe Level 1

assembly plug

Lock Body Level 2

nut assembly

Plunger Level 3
Body assembly

Seat Plunger Plunger Level 4

ring O-ring Plunger Spring housing O-ring retainer

28
 The benefits of a Bill of materials
 Optimize engineering, planning and purchasing efforts by providing centralized
and up-to-date information in Make-To-Stock, Repetitive, JIT or Job Shop
environments.
 Improve material management by responding to changes in production.
 Reduce inventory levels and obsolete parts.
 Reduce manufacturing costs.
 Minimize clerical and engineering efforts by optimizing the tasks of maintaining and
changing multi-level bills.
 What-If capabilities for estimating or quoting.
 Supports variable length part numbers and unlimited descriptive text.
 Easy methods for accessing part information

2.3.4 Sequencing the required process

During the sequencing processes, the method of how the product is to be assembled
is documented.

 Route sheets

Routing is a series of actions to be performed to achieve a particular goal. In a

manufacturing or production unit, it defines the exact process by which a product is
to be manufactured or a service is to be delivered. Thus the purpose of routing is to
spell the most efficient and economical way to perform a function. Routing directions
are prepared keeping in mind the number of employees, types of equipment
available; their capacity and run time.

It is the map or the blueprint of the manufacturing process in a production unit. It

provides the exact location of the various processes of the unit. A route sheet
determines the sequence or order of arrangement of various departments in a facility.
Thus, a route sheet is a document which has information and data inputs and a step

29
 wise listing of all the processes or transactions performed. It also contains details
such as date and time, remarks, log in/out, point of contact etc.

A typical route sheet contains the following information :

 Identification and sequence of work arrangement.

 Symbol or sign of a component of the product
 Appraisal or assessment of the process or method that is being followed.
 Computing the number of units to be produced.
 Machines and tools used in the operation, their run time, efficiency and capacity.
 Evaluation of the entire production process

An example of a Routs sheet can be seen in figure 3

Figure 3: Routes sheet

30
  Assembly charts

It is an analog model of the assembly process. Circles with a single link denote basic
components, circles with several links denote assembly operations/subassemblies,
and squares represent inspection operations. The easiest method to constructing an
assembly chart is to begin with the original product and to trace the product
disassembly back to its basic components. Below is an example of an assembly chart.

2.4. Schedule design

The key to success in an automated manufacturing system is to do a proper selection of

equipment and services, and production.

It is important to know before making layout decisions the amount of equipment required
as well as the type of equipment required.

It is important to realize that there is always products that need to be scraped within a
manufacturing facility. If you therefore decide on the amount of equipment required, you
need to take scrap in to consideration.

The formula used to for these problems are:

𝑂𝑘 = 𝐼𝑘 – 𝑃𝑘 𝑥 𝐼𝑘
31
Ok = desired output of no defective products for operation K

Ik = production input to operation K

Example 2.4.1

A product has a market estimate of 97 000 units, and the process require three steps.
(turning, milling and drilling) the following scrap estimates are found at turning = 4%,
milling = 1% and drilling = 3%.
97000
Therefore I drilling = (1−0.03) = 100 000 units.

Assuming no damage between operation 2 and 3 the output of goods from

operation 2(milling) may be equated to the input of operation 3 (drilling)
100 000
I milling = (1−0.01) = 101 010 units.

Likewise for operation 1(turning):

101010
I turning (1−0.04)= 105 219 units

After determining the actual amounts to manufacture, we can determine the number of
machine fractions required at each process.

The formula to determine machine fractions is:

𝑆𝑄
F = 𝐻𝐸𝑅

F= number of machine required per shift

S = standard time (minutes used per unit produced0

Q= number of unite to be produced per shift.

E=Actual performance, expressed as a percentage of the std time

H = amount of time available per machine

32
R= reliability of machine, expressed as % uptime.

Example 2.4.2.

A machined part has a standard machinery time of 2.8 min per part. During an eight our
shift, 200 units will be manufactured. Of the 480 min., the machine will be operating
for 80% of the time. The parts are produced at rate equal to 95% of the standard time.
Determine the number of machine required.
200 𝑥 2.8 2𝑚
F=(480 𝑥 0.95 𝑥 0.80) = 1.53 = 𝑝𝑒𝑟 𝑠ℎ𝑖𝑓𝑡
𝑐

2.5 Personnel requirement analysis

It is not only production and material handling equipment selections that need to address,
the employee requirements also influence the layout problems.

The following formula can be used to determine the employee requirements.

𝑇𝑖𝑂𝑖
N= ∑𝑛𝑖=1 ηH

N = number of employees

‘n = number of operations

Oi = aggregate number of operations of type ‘i required on all products manufactured per

day.

Ti = standard time required for an average operation Oi

H = total production time available per day.

𝜼 = assumed production efficiency of the plant.

This formula only determine the number of factory workers and not the non-factory
workers.

33
2.6. Problems

Problems will be distributed to students in class or via email. If a student is not in class
when problems are handed out, it is the student responsibility to ensure he/she get the
problems from a class friend.

34
Chapter 3: Flow systems, activity relationship and space requirements.

3.1. Introduction

Flow analysis considers the operations, transportations, inspections, delays, and

storages required as a part moves from receiving to shipping in a plant.

3.2 Goals of flow analysis

 to minimize distance traveled

 to minimize backtracking
 to minimize cross-traffic
 to eliminate unnecessary steps in the process
 to combine steps in the process
 to minimize production costs

3.3 Flow systems

Flow systems are very important to the facilities planner. Flow is viewed as the movement
of goods, people, material, energy and /or information. Flow systems for discrete parts
processes can be categorized according to the stages of supply, manufacture, and
distribution cycles. The three categories are:

3.3.1 Materials management system

This is the process of the flow of material into a manufacturing facility. The subjects of
material management systems are materials, parts and supplies purchased by the
company and required for manufacturing of a product. The following diagram is an
example of a materials management system.

35
3.3.2 Material flow system

If the flow of materials, parts and supplies within a manufacturing facility is the subject of
the flow process. The process is called a material flow system.

An example of a material flow system is shown below.

36
3.4 Flow analysis techniques

 Flow diagrams

It depicts the probable movement of materials in the floor plant. A line in the plant drawing
represents the movement.

Figure 4: flow diagram

37
  Operations charts

By superimposing the route sheets and the assembly chart, a chart results that gives an
overview of the flow within the facility.

Figure 5: operations schart

38
  Process Charts

This chart uses circles for operations, arrows for transports, squares for inspections,
triangles for storage, and the letter D for delays. Vertical lines connect these symbols
in the sequence they are performed.

Figure 6: process chart

39
 3.5 Flow planning

The effective flow within a facility depends on effective flow between departments. Such
flow depends on effective flow within departments, which depends on effective flow within
workstations. Within the overall flow environment, a critical consideration is the pattern of
flow.

3.5.1 Flow within workstations

Motion studies and ergonomics considerations are important in establishing the flow within
workstations. Flow within workstations should be:

• Simultaneous: coordinated use of hands, arms and feet.

• Symmetrical: coordination of movements about the centre of the body.

• Natural: movements are continuous, curved, and make use of

momentum.

• Rhythmical and Habitual: flow allows a methodological and automatic

sequence of activities. It should reduce mental, eye and muscle fatigue, and
strain.

3.5.2 Flow within departments

 The flow pattern within departments depends on the type of department.

In a product and/or product family department, the flow follows the product flow.

40
In a process department, little flow should occur between workstations within departments.
Flow occurs between workstations and isles.

Flow within departments with material handling considerations Line flow patterns

41
3.5.3 Flow patterns between departments

Flow between departments is a criterion often used to evaluate flow within a facility. Flow
typically is a combination of the basic horizontal flow patterns shown below. An important
consideration in combining the flow patterns is the location of the entrance-receiving
(receiving department) and exit (shipping department).

42
 3.5.4 Flow within facilities considering locations and exit(Tompkins et al., 2010)

Vertical Flow Pattern

Flow between buildings exists Ground level ingress (entry) Ground level ingress (entry)
and the connection between and egress (exit) are required and egress (exit) occur on the
buildings is elevated same side of the building

Travel between floors occurs on Some bucket and belt Backtracking occurs due to the
the same side of the building conveyors and escalators result return to the top floor
in inclined flow

Figure 7: vertical flow

43
 Flow within a facility considering the
locations of entrance and exit (cont.)

On the same side but

at opposite ends

On opposite sides

Figure 8.1: flow: entrance and exit

Flow within a facility considering the

locations of entrance and exit (cont.)

On the same side but

at opposite ends

On opposite sides

Figure 8.2:flow: entrance and exit

44
3.6 Flow patterns can be affected by the following:

• Number of parts in each product

• Number of operations on each part

• Sequence of operations in each part

• Number of subassemblies

• Number of units to be produced

• Product versus process type layout

• Desired flexibility

• Locations of service areas

• The building

3.7 Good flow system

A flow starts at receiving and terminates at shipping.

• Straight and short lines of flow

• Minimum backtracking

• Material is moved directly to point of use

• Minimum WIP

• Flow pattern is easily expandable, new processes can easily be merged

in

Principles of effective flow

• Maximize directed uninterrupted flow paths

45
• Minimize backtracking: Backtracking increases the length of the flow path

 Minimize flow

◦Deliver materials, information, or people directly to the point of ultimate use

◦Plan for flow between two consecutive points of use to take place in a few
moments as possible

◦Combine flows and operations

46
 • Maximize directed flow path

• Minimize the cost of the flow

 ◦Minimize manual handling (automate or mechanize the flow)
 ◦Minimize trips of empty carriers
 Minimize trips of empty carriers

3.8 Principles of a good layout

Manufacturing
 Straight-line Flow Pattern when possible
 Backtracking kept to a Minimum
 Predictable Production Time
 Little In-process materials storage
 Open Floor plans so everyone can see what
is going on
 Bottlenecks under control
 Workstations close together
 Minimum of material handling
 Easy adjustment to changing conditions
Service
 Easily understood service flow pattern
 Adequate waiting facilities
 Easy communication with customers
 Customers in view of servers throughout the
process
 Clear entry and exit points with adequate
checkout facilities
 Customers see only what you want them to
see
 Balance between waiting and service areas
 Minimum walking and material movement
 Lack of clutter
Office Layout Considerations:
 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

47
 Flexible layouts incorporating “office
landscaping” help to solve the privacy
issue in open office environments

48
Chapter 4: Flow analysis tools
4.1 From-to-chats

From-To Chart measures the flows between departments if one know the flow of products
or services between departments; it is easy to determine problematic areas, such as
bottleneck areas, unnecessary backtracking and reducing distance travelled.

From-to charts can be used to determine the efficiency of a layout, and this from-to-chart
can be used to improve the layout.

Figure 9 depict an example of a from-to-chart

Figure 9: example of a from-to-chart

49
4.1.1 Stevenson and Sum (2015) Have compiled the following
information that is required in order to construct a From-To-Chart.

4 A list of departments or work centers to be arranged, their approximate dimensions,

and the dimensions of the building or buildings that will house the departments.
5 A projection of future work flows between the various work centers.
6 The distance between locations and the cost per unit of distance to move loads
between locations.
7 The amount of money to be invested in the layout.
8 A list of any special considerations (e.g., operations that must be close to each other
or operations that must be separated.
9 The location of key utilities, access and exit points, loading docks, and so on, in
existing buildings

“The ideal situation is to first develop a layout and then design the physical structure
around it, thus permitting maximum flexibility in design. This procedure is commonly
followed when new facilities are constructed. Nonetheless, many layouts must be
developed in existing structures where floor space, the dimensions of the building,
location of entrances and elevators, and other similar factors must be carefully weighed
in designing the layout. Note that multilevel structures pose special problems for layout
planners.” (Stevenson, 2015 #13)

Example 4.1: Minimize transportation costs or distances.

Distance matrix in meters between locations

From/to A B C

A 20 40

B 30

50
 Workloads per day between departments.

From/to 1 2 3

1 30 170

2 100

Solution

Ranking departments according to highest work flow and locations according to highest
inter- location distances helps in making assignments.

A–B 20 1–3 170

B–C 30 2–3 100

A–C 40 1–2 30

From these listings, you can see that departments 1 and 3 have the highest
interdepartmental- workflow, and that locations A and B are the closest. Thus, it seems
reasonable to con- sider assigning 1 and 3 to locations A and B, although it is not yet
obvious which department should be assigned to which location. Further inspection of the
workflow list reveals that 2 and 3 have higher work flow than 1 and 2, so 2 and 3 should
probably be located more closely than 1 and 2. Hence, it would seem reasonable to place
3 between 1 and 2, or at least centralize that department with respect to the other two.

If the cost per meter to move any load is $1, you can compute the total daily transporta-
tion cost for this assignment by multiplying each department’s number of loads by the trip

distance and summing those quantities:

51
If the cost per meter to move any load is R1, you can compute the total daily transporta-
tion cost for this assignment by multiplying each department’s number of loads by the trip
distance, and summing those quantities:

Workloads per day x distance

From/to 1 (A) 2 ( C) 3(B)

1 (A) 30 x 40 = 1200 170 x 20 = 3400

2 (C) 100 x30 = 3000

3 (B)

Total cost = (1200 + 3400 + 3000) x R1 =R7600

Example 4.1.2

Five departments are to be assigned to locations B–F in the grid. (For technical reasons,
department 6 must be assigned to location A.) Transportation cost is R2 per meter.
The objective is to minimize total transportation cost. Information on
interdepartmental work flows and distances between locations is shown in the
following tables. Assign departments with the greatest interdepartmental work flow
first
DISTANCE BETWEEN LOCATIONS (meters)

From To A B C D EF

A — 50100 50 80130
B —50 90 4070
C —140 6050
D — 50120
E —50

52
 To 1 2 3 4 5 6

1 — 125 62 64 2550

2 — 10 17 2654

3 — 2 0 20

4 — 13 2

5 — 5

6 —

F —

NUMBER OF TRIPS PER DAY BETWEEN CENTERS

A B C
Dept. 6

D E F

Solutions

Rank or arrange the work flows from high to low. Here they have been arranged from

High to low.

Dept. Work Flow Dept. Work Flow

1–2 125 2–4 17

1–4 64 4–5 13
1–3 62 2–3 10
2–6 54 5–6 5
1–6 50 3–4 2
2–5 26 4–6 2
1–5 25 3–5 0

53
From this, we can see that departments 1 and 2 have the greatest interdepartmental
workflow, so they should be close, perhaps at B and E. Next, work flows for 1–3 and 1–4
are high. Note, though, that the workflow for 3–4 is low, suggesting that they need not be
close. Instead, we would place them on either side of department 1. Note also that 3–4 is
only 2, 3–5 is 0, while 3–6 is 20 and 4–5 is 13. Hence, place department 3 at location D,
department 4 at location F, and department 5 at location C.

1–2 (B–E) 40 125 $10,000

1–3 (D–E) 50 62 6,200

1–4 (F–E) 50 64 6,400
1–5 (E–C) 60 25 3,000
1–6 (A–E) 80 50 8,000
2–3 (B–D) 90 10 1,800
2–4 (B–F) 70 17 2,380
2–5 (B–C) 50 26 2,600
2–6 (A–B) 50 54 5,400
3–4 (F–D) 120 2 480
3–5 (D–C) 140 0 0
3–6 (A–D) 50 20 2,000
4–5 (C–F) 50 13 1,300
4–6 (A–F) 130 2 520
5–6 (A–C) 100 5 1,000
$51,080

B C

Dept. 6 Dept. 2 .5

D E F

Dept. 3 Dept. 1 Dept. 4

54
From- to- charts continue

The process layout also known as functional layouts, group similar activities
together in departments or work centers according to the process or function
they perform. For example, in a machine shop, all drills would be located in one
work center, lathes in another work center, and milling machines in still another
work center. In a department store, women's clothes, men's clothes, children's
clothes, cosmetics, and shoes are located in separate departments. A process
layout is characteristic of intermittent operations, service shops, job shops, or
batch production, which serve different customers with different needs. The
volume of each customer's order is low, and the sequence of operations
required to complete a customer's order can vary considerably.

The equipment in a process layout is general purpose, and the workers are
skilled at operating the equipment in their particular department. The advantage
of this layout is flexibility. The disadvantage is inefficiency. Jobs or customers
do not flow through the system in an orderly manner, backtracking is common,
movement from department to department can take a considerable amount of
time, and queues tend to develop. In addition, each new arrival may require that
an operation be set up differently for its particular processing requirements.
Although workers can operate a number of machines or perform a number of
different tasks in a single department, their workload often fluctuates--from
queues of jobs or customers waiting to be processed to idle time between jobs
or customers.

Process layouts in manufacturing firms require flexible material handling

equipment (such as forklifts) that can follow multiple paths, move in any
direction, and carry large loads of in-process goods. A forklift moving pallets of
material from work center to work center needs wide aisles to accommodate
55
heavy loads and two-way movement. Scheduling of forklifts is typically
controlled by radio dispatch and varies from day to day and hour to hour. Routes
have to be determined and priorities given to different loads competing for
pickup.

Process layouts in service firms require large aisles for customers to move back
and forth and ample display space to accommodate different customer
preferences.

The major layout concern for a process layout is where to locate the
departments or machine centers in relation to each other. Although each job or
customer potentially has a different route through the facility, some paths will
be more common than others. Past information on customer orders and
projections of customer orders can be used to develop patterns of flow through
the shop.

Process oriented plant layout

1. Analysis
2. Qualitative criteria: Closeness priorities.
3. Technique: Systematic Layout Planning (SLP)

56
57
 4. Closeness priorities have a letter code:

Example 4.1.3: Designing a new layout: (Tompkins et al., 2010)

Product Processing Weekly

sequence production

1 ABCDEF 960

2 ABCBEDCF 1200

3 ABCDEF 720

4 ABCEBCF 2400

5 ACEF 1800

6 ABCDEF 480

7 ABDECBF 2400

8 ABDECBF 3000

9 ABCDF 960

10 ABDEF 1200

58
 Department Dimension

A 40*40

B 45*45

C 30*30

D 50*50

E 60*60

F 50*50

Q1: Develop a from-to chart based on the expected weekly production.

Q2: Develop a block layout design using SLP (systematic layout procedure).

Solution:

From-to chart (refer to chapter 3 of this guide on how to construct a from-to chart)

Dept A B C D E F

A (From) -------- 13320 1800 0 0 0

B 0 ---------- 9120 6600 1200 5400

C 0 8400 ----------- 3120 4200 3600

D 0 1200 ----------- 8760 960

E 0 2400 5400 1200 ----------- 5160

F 0 0 0 0 0 ------------

The first part of the solution is quite easy, as it has been covered in detail already in
chapter 4. We didn’t need to determine the efficiency of the chosen layout (ABCDEF)

59
 because we will use this chart to construct the Flow-between chart. (Obviously, if
different layouts need to be evaluated, then you have to determine the efficiency.)

SLP approach

The first problem facing us is that no activity relationship chart was provided. The only
data available to us is the flow of products and therefore our only option is to create
our own activity relationship diagram based on flow.

The first step will be to construct a Flow-between chart from the From-to chart.

Flow-Between chart

Department A B C D E F

A --------- 13320 1800 0 0 0

B ----------- 17520 6600 3600 5400

C ------------ 4320 9600 3600

D ----------- 9960 960

E ------------ 5160

F -----------

How did we construct this chart – very easy. This chart shows the flow in between
departments.

Look at the value BC = 17520. This is the total of the movements from B to C (9120) and
C to B (8400) in the From-To chart.

Our next step is to rank the flow from the highest to the lowest and that will show us the
importance of flow between the departments.

Rank flow values:

60
1. B-C 17520 A 13. A-D 0 U

2. A-B 13320 A 14. A-E 0 U

3. D-E 9960 E 15. A-F 0 U

4. C-E 9600 E

5. B-D 6600 E

6. B-F 5400 I

7. E-F 5160 I

8. C-D 4320 I

9. B-E 3600 O

10. C-F 3600 O

11. A-C 1800 U

12. D-F 960 U

The relationships has been assigned on “feeling” therefore if you assigned C-E an A it will
still be correct etc.

From this we can construct an activity relationship chart.

Activity relationship chart

Dept A B C D E F

A ------------ A U U U U

B ------------ A E E I

C ------------ O E O

D ------------ I U

E ------------ I

F ------------

61
Now we can construct a relationship diagram and again this vary between individuals but
the end result would be very similar.

And from this we can construct a block diagram.

A B
C
E
D

Example 4.1.4: Determine efficiency (Stephens and Meyers, 2013)

1. The From-To chart can be applied in a different way as well. Let say for example
that a company has 5 different products of different weight and produced in
different quantities.

Product Flow Weight in kg Quantity per

numb shift
er

1 RACDFES 2.5 450

2 RCDBFS 4 360

3 RADFS 3.2 400

4 RBCDS 3.5 200

62
 5 RABDFS 7 350

Note: R = receiving department

S = shipping department

The first step will be to determine a relative importance value. This is done, by multiplying
the weight column with the quantity column.

Product Flow Weight in kg Quantity per Total weight

numb shift moved
er

1 RACDFES 2.5 450 1125

2 RCDBFS 4 360 1440

3 RADFS 3.2 400 1280

4 RBCDS 3.5 200 700

5 RABDFS 7 350 2450

63
To determine a relative value we select the lowest value (in this case 700) and divide it
into the rest. For example product number 1 will be 1125/700 = 1.6

Product Flow Weight Quantity Total weight Relative

num in per moved worth
ber kg shift

1 RACDFES 2.5 450 1125 1.6

2 RCDBFS 4 360 1440 2.05

3 RADFS 3.2 400 1280 1.8

4 RBCDS 3.5 200 700 1

5 RABDFS 7 350 2450 3.5

Now we can choose any layout we want and construct a From-To chart as long as all the
symbols used in the flow column appear. Let’s say we want to determine the efficiency of
the following layout:

RABCDEFS

Complete the chart by filling in the relative worth of each product as it “flows” through the
chart. For example product number 1 will be completed as follows:

64
To

R A B C D E F S Total PP

R xxxxx 1.6
x

A xxxxx 1.6
x

B xxxxx
x

Fr
C xxxx 1.6
o
x
m
x

D xxxxxx 1.6

E xxxx 1.6
x
x

F 1.6 xxxx
x
x

S xxxx
x
x

65
Once finished the table will look as follows

To

R A B C D E F S Total PP

R xxxx 1.6+1. 1 2.05

x 8

+3.5=6
.
9

A Xxxx 3.5 1.6 1.8

From B xxx 1 3.5 2.05

C xxx 1.6+2.
0
5

+1=4.6
5

D 2.05 xxxx 1.6+1.8 1

+3.5=6.9

E xxx 1.6

F 1.6 xxxxx 2.05+1.

8

+3.5=7.
35

S xxxxx

66
As can be seen on the previous table, all the back-tracking movements fall below the
skew line (xxxx cells) and all the forward movements are above this line.

The next step is to evaluate the layout. This is done, by adding all the horizontal total
values. Then, for each cell a penalty point is calculated. This is done in the following way:

The total of that particular cell is multiply with the number of steps between the two
symbols concerned. For example the movement from D to F need 2 steps namely D-E
and E-F. The total = 6.9 therefore the penalty point value for this cell will be 2*6.9=13.8

Because of the influence of backtracking on flow and the need to minimize it, all the totals
below the line will be doubled and then multiplied with the number of steps to penalize it
further. For example from D to B the total is 2.05, the number of steps = 2 (D-C; C-B) and
because it is below the line the following will happen:

2.05 * 2 * 2 = 8.2

67
 To

R A B C D E F S Tot PP
a
l

R xxxx 1.6+1.8 1 2.05 9.9 15.

5 0
+3.5=6.9 (1*2=) 6.15
5
6.9 2

A xxxxx 3.5 1.6 1.8 6.9 12.

1
3.5 3.2 5.4

From
B xxxx 1 3.5 2.05 6.5 16.
5 2
1 7 8.2

C xxxx 1.6+2.05 4.6 4.6

5 5
+1=4.65

4.65

D 2.05 xxxxx 1.6+1.8 1 9.9 25

5
+3.5=6.9

8.2 13.8 3

E xxxx 1.6 1.6 3.2

3.2

F 1.6 xxxxx 2.05+1.8 8.9 10.

5 5
+3.5=7.3
5
5
3.2
7.35

S xxxxx

Totals 48. 86.

5 7
5 5

48.55
The efficiency of this layout is  56%
86.75

68
4.2 Group Technology (GP)

(Reid and Sanders, 2016) said that GP brings the efficiencies of a product layout to a
process layout.

Hybrid layouts combine characteristics of both process and product layouts. They are
created whenever possible in order to combine the strengths of each type of layout. One
of the most popular types of hybrid layouts is group technology (GT) or cell layouts. Group
technology has the advantage of bringing the efficiencies of a product layout to a process
layout environment.

Characteristics of Group technology according to Reid and Sanders (2016)

a. Components classified into families

b. Workloads are balanced between production groups

c. Production groups are clearly identifiable on the shop floor

Cells Facilitate Rapid Flow and Efficient Processing Of material And Information

69
Each group works with a significant degree of autonomy

To successful implement manufacturing cells, we need to address selection, design,

operation, and control issues.

The following diagram shows a facility in which three parts A, B, C flow through the machines.

• The next diagram provides the information in a matrix form, which includes some other
parts D, E, F, G, H.

70
 Machines
Parts 1 2 3 4 5 6 7 8 9 10 11 12
A x x x x x
B x x x x
C x x x
D x x x x x
E x x x
F x x x
G x x x x
H x x x

• The rows correspond to the parts and columns to the machines.

71
 Machines
Parts 1 2 4 3 5 6 7 8 9 10 11 12
A x x x x x
D x x x x x
B x x x x
C x x x
E x x x
F x x x
G x x x x
H x x x
•

Machines
Parts 1 2 4 8 3 5 6 7 9 10 11 12
A x x x x x
D x x x x x
B x x x x
C x x x
E x x x
F x x x
G x x x x
H x x x

72
 Machines
Parts 1 2 4 8 3 5 6 7 9 10 11 12
A x x x x x
D x x x x x
F x x x
B x x x x
C x x x
E x x x
G x x x x
H x x x

Machines
Parts 1 2 4 8 10 3 5 6 7 9 11 12
A x x x x x
D x x x x x
F x x x
B x x x x
C x x x
E x x x
G x x x x
H x x x

• Just by interchanging rows and columns, eventually a matrix is obtained where the “X”
marks are all concentrated near the diagonal. This matrix provides the cells. For example,
parts A, D and F require Machines 1, 2, 4, 8 and 10 which forms a cell.

73
 Machines
Parts 1 2 4 8 10 3 6 9 5 7 11 12
A x x x x x
D x x x x x
F x x x
C x x x
G x x x x
B x x x x
E x x x
H x x x

There are various ways to implement cell manufacturing, but we will only focus on two:

1. direct clustering algorithm (DCA)

2. rank order algorithm

74
 Example 4.2.1 : DCA:(Tompkins et al., 2010)

MACHINE NUMBERS

1 2 3 4 5 TOTAL

1 1 1 2

2 1 1
PARTS
3 1 1 1 3

4 1 1 2

5 1 1

6 1 1 2

TOTAL 3 2 2 2 2

STEP 1:

RANK ALL ROWS IN DECENDING ORDER OF NUMBER OF ONES, TIES MUST BE BROKEN DOWN
IN DECENDING NUMERICAL SEQUENCE.

RANK ALL COLUMNS IN ASCENDING ORDER OF NUMBER OF ONES, TIES MUST BE BROKEN
DOWN IN DECENDING NUMERICAL SEQUENCE.

5 4 3 2 1 TOTAL

3 1 1 1 3

6 1 1 2

4 1 1 2

1 1 1 2

5 1 1

2 1 1

TOTAL 2 2 2 2 3

75
STEP 2:

SORTING COLUMNS TO MOVE TO LEFT ALL COLUMNS THAT HAVE A ONE IN THE FIRST ROW,
WIICH REPRESENTS PART 3 IN THIS CASE. COLUMNE FOR MACHINE 5 AND 4 IS ALREADY
ALLOCATED. SO ONLY MACHINE 2 NEED TO MOVE TO THE LEFT.

5 4 2 3 1 TOTAL

3 1 1 1 3

6 1 1 2

4 1 1 2

1 1 1 2

5 1 1

2 1 1

TOTAL 2 2 2 2 3

STEP 3:

SORTING ROWS, BY MOVING ROWS UPWARDS, THAT HAVE A 1 IN THE FIRST COLUMN THAT ARE
NOT ALREADY ALOCATED AS FAR AS POSSIBLE TOWARD THE TOP OF THE MATRIX.

5 4 2 3 1 TOTAL

3 1 1 1 3

6 1 1 2

5 1 1

4 1 1 2

1 1 1 2

2 1 1

TOTAL 2 2 2 2 3

76
 Example 4.2.2: ROC(Heragu, 2008)

MACHINE NUMBERS

1 2 3 4 5 TOTAL

1 1 1 2

2 1 1

PARTS3 1 1 1 3

4 1 1 2

5 1 1

6 1 1 2

TOTAL 3 2 2 2 2

STEP 1:

ASSIGN BINARY WEIGHT TO EACH COLUMN AND THE DECIMAL EQUILAVENT OF BINARY VALUE
OF EACH ROW.

1 2 3 4 5 Decimal
equivalent

1 1 1 20

2 1 16
PARTS
3 1 1 1 11

4 1 1 20

5 1 8

6 1 1 3

TOTAL 3 2 2 2 2

Binary 24 23 22 21 20
weight

77
 STEP 2

RANK ROWS IN DECREASING ORDER OF DE VALUES.

1 2 3 4 5 TOTAL

4 1 1 2

2 1 1
PARTS
3 1 1 1 3

1 1 1 2

5 1 1

6 1 1 2

TOTAL 3 2 2 2 2

STEP 3:

ASSIGN BINARY WEIGHT TO EACH ROWAND THE DECIMAL EQUILAVENT OF BINARY VALUE OF
EACH COLUMN

1 2 3 4 5 TOTAL Binary
weight

4 1 1 2 25

1 1 1 2 24

3 1 1 1 3 23

5 1 1 22

2 1 1 21

6 1 1 2 20

TOTAL 3 2 2 2 2

Decimal 50 12 48 9 9
value

78
STEP 4:

ASSIGN BINARY WEIGHT TO EACH COLUMN AND THE DECIMAL EQUILAVENT OF BINARY VALUE
OF EACH ROW.

5 4 2 3 1 total Decimal
value

4 1 1 2 3

1 1 1 2 3

3 1 1 1 3 28

5 1 1 4

2 1 1 1

6 1 1 2 24

total 2 2 2 2 3

Binary 24 23 22 21 20
weight

STEP 5

RANK ROWS IN DECENDING ORDER. IF NO FURTHER CHANGES CAN BE MADE, STOP, OTHER
WISE COMPLETE STEP 1 – STEP3

5 4 2 3 1 total

3 1 1 1 3

6 1 1 2

5 1 1

4 1 1 2

1 1 1 2

2 1 1

total 2 2 2 2 3

79
Chapter 5: Material handling
Material Handling refers to activities, equipment, and procedures related to the moving,
storing, protecting and controlling of materials in a system.

5.1 Importance of material handling

It is highly pointed out that the cost material handling involves 40% to 50% of total
production cost. Therefore, considerable attention must be taken in the material
handling. Improved material handling system not only save time and cost reduction
but also ensure the following:

 Reduction in accidents.
 Greater job satisfaction.
 Reduction in inventory or & work in progress.
 Increasing production.
 Saving time.

80
 5.2. Material handling principles (Tompkins et al., 2010) and (Heragu, 2008)
Principle
PLANNING PRINCIPLE
All material handling should be the
result of a deliberate plan where the
needs, performance objectives and
functional
specification of the proposed methods
are completely defined at the outset
(how and who).
Definition Keypoints
A plan is a prescribed course a. The plan should be developed in
b. consultation between the planner(s) and all
of action that is defined in
who will use and benefit from the equipment
advance of
to be employed.
implementation. In its
c. Success in planning large scale material
simplest form a material
handling projects generally requires a team
handing plan defines the
approach involving suppliers, consultants
material (what) and the
when appropriate, and end user specialists
moves (when and
from management, engineering, computer
where); together they
and information systems, finance and
define the method
operations.
d. The material handling plan should
reflect the strategic objectives of the organization
as well as the more immediate needs.
e. The plan should document existing
methods and problems, physical and economic
constraints, and future requirements
and goals.
f. The plan should promote concurrent
81
 engineering of product, process design,
process layout, and material handling methods,
as opposed to independent and sequential
design practices.

STANDARDIZATION Standardization means less a. The planner should select methods and

variety and customization in equipment that can perform a variety of tasks

PRINCIPLE
the methods and under a variety of operating conditions.
Material handling methods, equipment,
equipment employed b. Standardization applies to sizes of containers
controls and software should and other load forming components as well as

be standardized within the limits of operating procedures and equipment.

achieving c. Standardization, flexibility and modularity must

not be incompatible.
overall performance objectives and
without sacrificing needed flexibility ,
modularity

and through put, anticipation of changing

future requirements.

WORK PRINCIPLE The measure of work is KEY POINTS:

82
Material handling work should be material handling flow a. Simplifying processes by reducing, combining,
minimized without sacrificing (volume, weight or count shortening or eliminating unnecessary moves
productivity or the level of service per unit of time) multiplied will reduce work.
required of the operation. The by the b. Consider each pickup and set-down, or
shortest distance between two distance moved. placing material in and out of storage, as
points is a straight line. distinct moves and components of the
distance moved.
c. Process methods, operation sequences and
process/equipment layouts should be
prepared that support the work minimization
objective.
d. Where possible, gravity should be used to
move materials or to assist in their movement
while respecting consideration of safety and
the potential for product damage.

ERGONOMIC Ergonomics is the science a. Equipment should be selected that eliminates

that seeks to adapt work or repetitive and strenuous manual labor and
PRINCIPLE
working conditions to suit which effectively interacts with human
Human capabilities and limitations
the abilities of the worker. operators and users.

83

must be recognized and respected in the
design of material handling tasks
and equipment to ensure safe and
effective operations.
UNIT LOAD PRINCIPLE
Unit loads shall be appropriately sized be stored or moved as a single
and configured in a way which
achieves the material flow and
inventory objectives at each stage in
the supply chain.
A unit load is one that can
entity at one time, such as
a pallet, container or tote,
regardless of the number
of individual Items that
make up the load.
b. The ergonomic principle embraces both
physical and mental tasks.
c. The material handling workplace and the
equipment employed to assist in that work
must be designed so they are safe for people
a. Less effort and work is required to collect and
move many individual items as a single load
than to move many items one at a time.
b. Load size and composition may change as
material and product moves through stages of
manufacturing and the resulting distribution
channels.
c. Large unit loads are common both pre and
post manufacturing in the form of raw
materials and finished goods.
d. During manufacturing, smaller unit loads,
including as few as one item, yield less in-
process inventory and shorter item throughput
times.
84
 e. Smaller unit loads are consistent with
manufacturing strategies that embrace
operating objectives such as flexibility,
f. continuous flow and just-in-time delivery.
g. Unit loads composed of a mix of different items
are consistent with just-in-time and/or
customized supply strategies so long as item
selectivity is not compromised.

SPACE UTILIZATION Space in material handling is a. In work areas, cluttered and unorganized
three dimensional and spaces and blocked aisles should be
PRINCIPLE
therefore is counted as eliminated.
Effective and efficient use must be made
cubic space. b. In storage areas, the objective of maximizing
of all available space.
storage density must be balanced against
accessibility and selectivity.
c. When transporting loads within a facility the
use of overhead space should be considered
as an option.

SYSTEM PRINCIPLE A system is a collection of a. Systems integration should encompass the

interacting and/or entire supply chain including reverse logistics.
Material movement and storage

85
 interdependent entities It should include suppliers, manufacturers,
activities should be fully integrated to
that form a unified whole. distributors and customers.
form a coordinated, operational
b. Inventory levels should be minimized at all
system
stages of production and distribution while
which spans receiving, inspection,
respecting considerations of process
storage, production, assembly,
variability and customer service.
packaging, unitizing, order selection,
c. Information flow and physical material flow
shipping, transportation and the
should be integrated and treated as
handling of returns.
concurrent activities
d. Methods should be provided for easily
identifying materials and products, for
determining their location and status within
facilities and within the supply chain and for
controlling their movement.
e. Customer requirements and regarding
quantity, quality, and on-time delivery should
be met without exception.
f. Consistency and predictability, regarding
quantity, quality, and on-time delivery should
be met without exception.

AUTOMATION KEY POINTS:

86
PRINCIPLE a. Pre-existing processes and methods should
be simplified and/or re-engineered before any
Material handling operations
efforts at installing mechanized or automated
should be mechanized and/or automated
systems.
where feasible to improve operational b. Computerized material handling systems
efficiency, increase responsiveness, should be considered where appropriate for
improve consistency and effective integration of material flow and
predictability, information management.
c. Treat all interface issues as critical to
successful automation, including equipment to
equipment, equipment to load, equipment to
operator, and control communications.
d. All items expected to be handled automatically
must have features that accommodate
mechanized and automated handling.

ENVIRONMENTAL Environmental a. Containers, pallets and other products used to

consciousness stems form and protect unit loads should be designed
PRINCIPLE
from a desire not to waste for reusability when possible and/or
Environmental impact and energy
natural biodegradability as appropriate.
consumption should be considered as
resources and to predict and
eliminate the possible

87
 negative effects of our b. Systems design should accommodate the
criteria when designing or selecting
daily handling of spent dun age, empty containers
alternative equipment and material
actions on the environment and other by-products of material handling.
handling systems.
c. Materials specified as hazardous have special
.
needs with regard to spill protection,
combustibility and other risks.

LIFE CYCLE COST Life cycle costs include all a. Life cycle costs include capital investment,

cash flows that will occur installation, setup and equipment

PRINCIPLE
between the
A thorough economic analysis
time the first dollar is spent to
should account for the entire life cycle of
plan or procure a new
all material handling equipment and
piece of equipment, or to
resulting systems.
put in place a new
. method, until that
method and/or equipment is
totally replaced.
programming, raining, system testing and
acceptance, operating (labor, utilities, etc.),
maintenance and repair, reuse value, and
ultimate disposal.
b. A plan for preventive and predictive
maintenance should be prepared for the
equipment, and the estimated cost of
maintenance and spare parts should be
included in the economic analysis.
c. A long-range plan for replacement of the
equipment when it becomes obsolete should
be prepared.

88
 d. Although measurable cost is a primary
factor, it is certainly not the only factor in
selecting among alternatives. Other factors
of a strategic nature to the organization and
which form the basis for competition in the
market place should be considered and
quantified whenever possible

Note. Please see the following chapters regarding:

1. Material handling and equipment

2. Warehouse and storage

89
Material handling and equipment

90
Warehouse and storage

91
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KASSIR, D. M. G. 2014/2015. Product and Process design. Principles of Industrial Eng. Chapter
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SHUBIN, J. A. & MADEHEIM, H. 1951. Plant layout: developing and improving manufacturing
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STEPHENS, M. P. & MEYERS, F. E. 2013. Manufacturing facilities design and material

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92