Cellular Manufacturing

and Plant Layout

Superfactory Excellence Program

www.superfactory.com

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 Disclaimer and Approved use

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 Outline

Fundamentals of layout
Process

Product

Fixed

Hybrid

Cellular Manufacturing
Characteristics

Implementing Cells
Part Families
Production Flow Analysis

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 What is the Facility Layout Problem?

Concerned with arrangement of machines, cells, or

departments.
Often computationally difficult.
A decision is both quantitative & qualitative.

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 Why is the Layout Problem Difficult?

It has geometric and combinational aspects.

Jig-saw puzzle.
Difficult picture

No picture

No shapes

Goal: Minimize material handling costs.

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 Effective Facility Layout

Minimize material handling costs

Utilize space efficiently & effectively
Utilize labor efficiently & effectively
Eliminate bottlenecks
Eliminate wasted or redundant movement
Incorporate safety & security measures

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 Basic Layouts

There are three basic types of layouts:

Process
Product
Fixed-position
There are two hybrid types of layouts
Flexible and Mixed-Model manufacturing systems
Cellular

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 Process Layout

Process layouts (functional layouts)

Definition A layout that groups similar activities
together in departments of work centers according to
process or functions that they perform.

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 Characteristics of Process layout

Goal To minimize material handling cost

Product Varied made to order
Demand Fluctuates
Production volume low (custom products)
Inventory High in process
- Low in finished goods
Storage Space relatively large
Aisles tend to be wide
Material handling variable path (forklift)

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 Characteristics

Layout decision machine location based

Workers tend to be skilled at operating the

equipment in their departments

Intermittent, job shop, batch production, mainly

fabrication

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 Process Layout

Lathe Lathe Drill Weld Weld

Warehouse

Warehouse
Lathe Lathe Drill Paint Paint

Mill Mill Grind Assembly

Mill Mill Grind Assembly

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 Process-Oriented Layout

Department areas having similar processes located in close

proximity
Design places departments with large flows of material or
people together

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 Process Layout - Advantages

Better utilization of machines

Fewer machines required
High degree of flexibility relative to equipment or manpower
allocation for specific tasks
Comparatively low investment in machines is required
The diversity of the task offers a more interesting and
satisfying occupation for the operator
Specialized supervision is possible

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 Process Layout Characteristics

Advantages
Deep knowledge of the process

Common tooling and fixtures

Most Flexible -- can produce many different part types

Disadvantages
Spaghetti flow -- everything gets all tangled up

Lots of in-process materials

Hard to control inter-department activities

Can be difficult to automate

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 Process Layout - Limitations

Since longer flow lines usually result, material handling is more

expensive
Production planning and control systems are more involved
Total production time is usually longer
Comparatively large amounts of in-process inventory results
Space and capital are tied up by work-in-process
Because of the diversity of the jobs in specialized departments, higher
grades of skill are required
Inefficient
Because jobs or customers do not flow through in an orderly
fashion; backtracking is common.
Idling
Workers may experience more idle time if they are waiting
around for more work to arrive from a different department.

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 Impact of Interruptions on Flow Paths

Lathe Drill Grind Drill

Press Bend Drill Mill

Mill Drill Drill Mill

Lathe Lathe Mill Drill

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 Designing Process Layouts

The main goal to keep in mind is to minimize material

handling costs
Therefore the departments that incur the most
interdepartmental movement should be located closest
to one another
Two types of design layouts
Block diagramming
Relationship diagramming

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 Block Diagramming
This refers to the movement of materials in existing or
proposed facility
Information is usually provided with a from/to chart or
load summary chart

This gives the average number of units loads moved

between departments

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 Block Diagramming

A unit load can be a single unit, a pallet of material a bin of

material, or a crate of material
Material is constantly moving from location to location

The next step is to design the layout by calculating the

composite movements between departments and rank
them from most movement to least movement
Composite movement refers to the back-and-forth
movement between each pair of departments
Finally, trial layouts are place on a gird that graphically
represents the relative distances between departments.

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 Relationship Diagramming

For situations in which quantitative date is hard to

obtain it is more relevant to use a relationship
diagramming technique

Richard Muther developed a format for displaying

manger preferences for departmental locations, know
as Muthers grid

Muthers diagram uses codes and letter to represent

how close departments are to one another

The information from Muthers diagram can be used to

make a relationship diagram to evaluate a current
layout or proposed layouts
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 Computerized Layout Solutions

Several computer programs exist that assist in

designing process layouts
The best known are CRAFT (Computerized Relative
Allocation of Facilities Technique) and CORELAP
(Computerized Relationship Layout Planning)
Basically the computer program is given layout date
and then makes a recommendation

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 Service Layouts

Most Service organizations use process layouts because

of the variability in customer requests for service

Service organizations look to maximize profits per unit of

display space, rather than minimize customer flow

The layout must be aesthetically pleasing we well as

functional

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 Process in Manufacturing firms

Process layouts require flexible material handling

equipment (such as forklifts) which can follow multiple
paths and carry large loads of in-process goods
All areas of the facility must have timely access to the
material handling equipment

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 The Product Layout

Definition
A facility layout that arranges activities in a line
according to the sequence of operations that need to be
performed to assemble a product, while minimizing
material handling costs.

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 History of the Product Layout

1895 - Frederick Winslow Taylor.

Work should be broken into individual tasks.

Those tasks can be shortened or eliminated.

Frank Gilbreth - Time study techniques.

Work combined led to maximum efficiency in industrial
work.

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 History

1909 - Henry Ford

Boosted recognition for Taylor and Gilbreths ideas.

Increased productivity on his Model T by pulling the car

through the plant at a constant speed while workers
added accumulated parts.
Production time decreased from 12 hours and 8 minutes
to 1 hour and 33 minutes.

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 History

In the 1920s manufacturers moved away from assembly

lines to gain flexibility in their products.
The Product Layout came back into style as a form called
Flow Manufacturing emerged in the 1970s.
The Product Layout is still popular today.

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 Product Layouts

Most appropriate for continuous operations.

Used for products with high volume and steady demand.
Machines perform a singular, specialized task.
Machines are organized consecutively.

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 Product Layout

Lathe Drill Grind Drill

Warehouse

Press Bend Drill

Assembly
Mill Drill

Lathe Lathe Drill

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 Product Layout

Part #1 L L M D G

A A
Receiving L M G G
Part #2
L M D Shipping
Part #3

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 Product Requirements

Standardized product
High production volume
Stable production quantities
Uniform quality of raw materials & components

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 Product-Oriented Layout - Assumptions

Volume is adequate for high equipment utilization

Product demand is stable enough to justify high investment
in specialized equipment
Product is standardized or approaching a phase of its life
cycle that justifies investment in specialized equipment
Supplies of raw materials and components are adequate
and of uniform quality ensure they will work with
specialized equipment

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 Product-Oriented Layout Types
Assembly Line
Assembles fabricated parts
Uses workstation
Repetitive process
Paced by tasks
Balanced by moving tasks

Fabrication Line
Builds components
Uses series of machines
Repetitive process
Machine paced
Balanced by physical redesign

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 Line Configuration

The flow of products is continuous along a line.

Linear pattern.

L pattern.

U shape.

Snake shape.

Shape determines workers flexibility.

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 Product Layout - Advantages

Layout corresponds to the sequence of operations, smooth

and logical flow lines result
Work from one process is fed directly into the next, small in-
process inventories result
Total production time per unit is short
Machines are located as to minimize distances between
consecutive operations, material handling is reduced
Little skill is usually required by operators at the production
line; hence, training is simple, short and inexpensive
Simple production planning and control systems are possible
Less space is occupied by work in transit and for temporary
storage
Lower variable cost per unit

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 Product Layout - Advantages

Stable rate of output.

Work-in-process inventory is low.
Total production time/unit is reduced.
Space is effectively utilized.
Narrow aisles.

Labor pool is large.

Single skilled.

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 Product Layout - Limitations

A breakdown of one machine may lead to complete stoppage of

the line that follows that machine
Since the layout is determined by the product, a change in
product design may require major alterations in the layout
The pace of production is determined by the slowest machine
Supervision is general
Comparatively high investment is required, as identical
machines (a few not fully utilized) are sometimes distributed
along the line
Lack of flexibility

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 Product Layout - Disadvantages

If one machine fails the whole process stops.

Changes in product design can render the layout obsolete.
Bottlenecks govern the speed.
Large support staff required.
High fixed costs.

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 Product Layouts - Now & Then
Traditional
Top priority: Line
balancing.
Inventory buffers.
Planned by admin. staff.
L shaped lines.
Conveyor movement.
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New Focus
Top priority: flexibility.
Preventive maintenance
Shop supervisor designs
and adjusts.
U shaped lines.
Stations are close
together.
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 Designing Product Layouts

Main Objective: Arrange workers and machines in a line

according to the operations that need to be performed.
It isnt always that simple.
Line balancing.

Line balancing software:

COMSOAL - IBM

ASYBL - GE

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 Line Balancing

Equalizes amount of work at each station.

Constraints in Line Balancing.
Precedence Requirements
The order in which operations need to take place.
Cycle Time
Maximum time a product can be at a station.
A guess and check process.

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 Fixed-Position Layouts

The product remains stationary for the entire manufacturing

cycle.
Equipment, workers, materials, and other resources are
brought to the production site.

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 Fixed-Position Layouts

When is it used?

Fixed-Position layouts are used in projects in which the product

cannot be moved.

It is typical of projects in which the product produced is:

too fragile

bulky

heavy to move

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 Fixed-Position Layouts

Characteristics of the process:

Equipment Cost breakdown for fixed-position layouts:

Low equipment utilization: Fixed Cost:
idle equipment at location relatively low (equipment may

it will be needed again in a

not be owned by the company)
few days
Variable Cost
High (due to high labor rates and
Equipment is leased or
the cost of leasing and moving
subcontracted equipment.
it is used for limited periods

of time

Workers
Highly skilled at performing
special tasks
High wage rates

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 Fixed-Position Layout - Advantages

Material movement is reduced

Promotes job enlargement by allowing individuals or teams the
perform whole job
Continuity of operations and responsibility results from team
High flexibility; can accommodate changes in product design,
product mix, and production volume
Independent of production centers allows scheduling to achieve
minimum total production time

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 Fixed-Position Layout - Limitations

Increased movement of personnel and equipment

Equipment duplication may occur
Higher skill requirements for personnel
General supervision required
Cumbersome and costly positioning of material and machinery
Low equipment utilization

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 Factors Complicating a Fixed Position Layout

Limited space
Coordinating service providers in sequence, on time, on
schedule, and with other activities occurring concurrently
Volume of materials changes often

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 Fixed Position Layout

Lathe Press Grind

Warehouse
Warehouse

Drill Paint Assembly

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 Hybrid Layouts

Flexible & Mixed-Model Manufacturing

High level of complexity

Mathematically intensive

Cellular Manufacturing

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 Cellular Manufacturing

Cellular Manufacturing organizes the entire process for

similar products into a group of team members,
includes all the necessary equipment and is known as a
"Cell".

Merryman, Wes. Cellular Manufacturing

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 Cellular Manufacturing

The cells are arranged to easily facilitate all operations.

Parts are handed off from operation to operation
eliminating setups and unnecessary costs between
operations.

Merryman, Wes. Cellular Manufacturing

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 Introduction to Cellular Manufacturing
The cellular approach is to organize the entire manufacturing
process for particular or similar products into one group of
team members and machines known as a "Cell".
These "cells" are arranged in a U-shaped layout to easily
facilitate a variety of operations.
Parts or assemblies move one at a time (or in small batch
sizes).
The parts are handed off from operation to operation without
opportunity to build up between operations.

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 Introduction to Cellular Manufacturing

Fast setup and quick changeovers are essential to Cellular

Manufacturing systems since production runs are shorter.

Setup reduction principles are used to achieve one piece flow

and mixed model synchronization.

All cells concentrate on eliminating waste.

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 Warehouse Group Technology / Cellular Layout

Lathe Drill Grind Drill

Press
Assembly

Lathe Lathe Drill

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 Work Cells - Advantages

Increased machine utilization

Team attitude and job enlargement tend to occur
Compromise between product layout and process layout, with
associated advantages
Supports the use of general purpose equipment
Shorter travel distances and smoother flow lines than for
process layout

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 Work Cells - Advantages

Reduced work-in-process inventory

Less floor space required
Reduced raw material and finished goods inventories required
Reduced direct labor costs
Heightened sense of employee participation
Increased utilization of equipment machinery
Reduced investment in machinery and equipment

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 Work Cells - Limitations

General supervision is required

Higher skill levels required of employees than for product
layout
Compromise between product and process layout, with
associated limitations
Depends on balanced material flow through the cell; otherwise,
buffers and work-in-process storage are required
Lower machine utilization than for process layout

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 Empowered Employees in Cells

Goals and tracking charts are maintained and posted.

Problems are solved through daily cell meetings and problem
solving teams.
The inventory management system is a KANBAN Demand Pull
instead of a work order/kit picking system.

Cells are responsible for planning, scheduling and expediting

directly with vendors.

They establish and maintain a KANBAN system with the

vendors.

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 Advanced Cellular Manufacturing
The cell operates like an independent business with total
responsibility for quality, manufacturing and delivery of the
product to the customer.
All cells have the resources within their organization to
accomplish their mission.
The requirements are known and goals are established.
Cell members are flexible and work in teams to accomplish
their goals including continuous improvement.

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 Creating Cells
First, define the cells by the following criteria:
Processes required
Part numbers and attributes
Market segments / customers
Degree of automation
Good intuition
Careful study
Group Technology (GT)
Production Flow Analysis (PFA)

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 Creating Cells
Team selection is crucial
Identify important skills needed such as teamwork and
leadership skills
Create a process map
Develop a checklist for selecting members

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 Part Family Formation

Various levels macro and micro

Macro entire factories (focused factories) can specialize in a
particular type of part
Micro families can be based on similarities in part geometry
(group shafts, flat parts, gears, etc), process requirements
(castings, forgings, sheet metal parts, heat-treated parts,
printed circuit boards)
How are these groupings determined?
Coding

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 Finding Part Families
Visual Inspection of physical parts or photographs to identify similarities.
Coding and Classification of parts by examining design and/or
manufacturing attributes.
OPITZ System
MICLASS System
Here a code is assigned to specific features of the part.
Is the part cylindrical or prismatic ?
Does it have threads?
Does it have through slots?
Does it require heat treatment?
This requires a large initial time investment in coding and classifying all
parts.
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 Finding Part Families

Production Flow Analysis : Since the parts in a part family have

similar manufacturing processes, it is possible to identify
similar parts by studying the route sheets.
Parts with similar routes can be grouped into families.

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 Production Flow Analysis

PFA is a technique that uses Operation Routing Summaries

as input. It clusters the parts that require the same
processes. These parts can then be assembled into a part
family. The processes can be grouped into a cell to
minimize material handling requirements.

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 PFA - Organizational View

Production Flow Analysis consists of 5 different analyses:

1. Company Flow Analysis

2. Factory Flow Analysis
3. Group Analysis
4. Line Analysis
5. Tooling Analysis

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 Company Flow Analysis

A Planning technique used for the division of large

companies into factory components. It aims to simplify
the flow of materials between factories.

Uses FROM-TO charts and frequency charts and a flow

analysis (similar to the one discussed in slides 29 41).

Is not a decision making model, but presents data in a

way that decisions can be made based on a companys
goal.

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 Factory Flow Analysis

An attempt is made at this stage to find major groups of

departments, and major families of components which can
be completely processed in these departments.
The Goal is to change factories from process organization
to product organization and to minimize interdepartmental
material flow

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 Factory Flow Analysis - Methodology

Study and map the existing flow system

Identify the dominant material flows between shops (or
buildings)
Determine the Process Route Number (PRN) for each part
Analyze the part by PRN.
Combine closely associated processes at departments that
complete most of the parts they make
If parts are observed to backtrack then such flows are
eliminated by minor redeployment of equipment

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 Group Analysis

The flows in each of the individual shops (identified by

FFA) are analyzed.
Operation sequences of the parts that are being
produced in a particular shop are analyzed to identify
manufacturing cells.
Loads are calculated for each part family to obtain the
equipment requirements for each cell

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 Group Analysis

Essentially, while forming and rearranging the PFA

matrix we were performing Group Analysis.
Those same algorithms are also employed in PFA
activities other than Group Analysis (namely CFA, FFA
etc..)
Choice of algorithm or technique that is best suited is,
for the most part, a problem specific issue

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 Line Analysis

A linear or U-layout is designed for the machines

assigned to each cell.
The routings for each part assigned to the cell and the
frequency of use of each routing are used to develop a
cell for:
Efficient transport

Minimum material handling and travel by operators.

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 Tooling Analysis

A Tooling Analysis helps to schedule the cell by identifying

families of parts with similar operation sequences, tooling
and setups.

It seeks to sequence parts on each machine to sequence all

the machines in the cell to reduce setup times and batch
sizes.

This increases available machine capacity on bottleneck

work canters in the cell.

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 PFA: Assumptions

Each component is equally important in terms of cost

Lot size & its associated cost are not directly related to
grouping procedure
Routing is assumed to be optimal

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 PFA: Advantages

Reduces flow distances

Better suited to JIT and pull manufacturing as the overall
flow is much straighter
Simple and Easy to implement
Experience: Lots of Research and Background and support
software

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 PFA: Weakness

PFA is suitable mostly for small-sized applications, but it

has difficulties coping with some large cell formation
problems when the Machine-Part Matrix becomes more
complex because of problem size

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