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Facility Layout Contemporary Selected Issues

Prepared bySameeh Swaitti

Supervised by

Dr.Samir Abuznaid

2014

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OutlineUpon completing this presentation you are supposed

to understand the following concepts breifly:1. What do we mean by facility layout?2. What is the strategic importance of layout

decisions?3. What are the main factors that effect facility

layout?4. What are the main types of facility layout ?

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What do we mean by facility layout?• layout design considers how to achieve higher

utilization of space and people, how to improve flow of information, materials or people, how to improve employee morale and safer working conditions , how to improve customer interaction with flexibility.

• Although facility layout can be modeled mathematically, layout and design of physical facilities are still something of an art.

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The Strategic Importance of Layout Decisionshttp://www.citeman.com/108-the-importance-of-layout.html#ixzz2hRMrOXU4

Layout is one of the key decisions that:Layout has numerous strategic implications because it establishes an organization’s

competitive priorities in regard to capacity, process, flexibility, firm’s image ,cost and quality. An effective layout can help an organization to achieve a strategy that supports a differentiation, low cost, or response. So the objective of layout strategy is to develop an effective and efficient layout that will meet the firm’s competitive requirements.

1. Determines the long-run efficiency of operations. Establishing the firm’s image to be taken by others who dealing with the organization.

2. It makes the production process smooth and efficient and controlled. 3. Repeat orders and new customers will be the result of prompt execution of

orders. Plant layout is a significant factor in the timely execution of orders4. An ideal layout eliminates such causes of delays as shortage of space, long-

distance movements of materials.5. An ideal layout provides for inspection to ensure better quality control.6. A good plant layout is one of the factors in effective utilization of labor and

space.7. Planned layout avoids frequent changes which are difficult and costly.

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Factors affecting Facility Layout

• Flexibility: Facility layout should provide flexibility for expansion or modification.

• Space Utilization: Optimum space utilization reduces the time in material and people movement and promotes safety.

• Capital: Capital investment should be minimal when finalizing different models of facility layout.

www.managementstudyguide.com/facility-layout.htm

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Types of layout

• Office layout • Retail layout• Warehouse layout• Fixed-position layout• Process layout• Cellular layout • Product-oriented layout

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Office Layout

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Office layout • Should office layout be private or open for

public?• Should all employees use the same entrance, rest

room, lockers, and cafeteria?• Should the layout will meet the rapid in the

technological advancements?• Should the layout cope with nature of the work?• Should the layout will promote the firm’s image

and give a competitive advantage?

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Office Layout• Provides employees with the space and tools they need to complete

assigned tasks.• Use of comfortable chairs and adequate lighting may reduce muscle

aches and eyestrain.• Place employee workstations near frequently used office equipment,

such as copiers, postage machines and printers.Private Spaces versus Open Plan• An open office, employees work at communal tables or at low-walled

workstations that allow them to view and interact with coworkers.• If the employees perform the type of work that requires intense

concentration or privacy, traditional offices might be a better option.• Place communal spaces near employee work areas and provide

enough room to meet the needs of the various groups. Informal communal spaces provide areas in which employees can take breaks and recharge.

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Office LayoutDefined as grouping the workers, their equipments, and

spaces to provide comfort, safety and movement of information. Technological advancements change a lot in office layout.

• Some layout considerations are universal, they have to work with working conditions, teamwork, authority, and status.

• The office reception is very significant, because putting the right impression which can help out you to increase your business.

• Delay in the response could put a negative impression.• When you plan to design your office layout, make a list of key tasks

employees perform.• An effective office layout groups people together based on the

functions they perform.

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Retail layout

Based on the idea that sales and profitability vary directly with customer exposure to products.maximizing profit through product exposure

• The main objective of retail layout is to maximize profitability per square foot of floor space.

• The most the customers exposed to the products, the greater the sales and the higher return on investment.

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Retail LayoutUseful arrangements:• Locate the high-draw items around the periphery .of the store المحيط

• Use prominent locations for high-impulse and high-margin items.

• Use end-aisle locations because they have a very high exposure rate.

• Convey the mission of the store by carefully selecting the position of the lead-off department, to be in broad view upon entering the store.

Jay Heizer & Barry Render, “Operation Management”, 10th ed. Pearson Prentice Hall, New Jersy,2010. P 379.

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Retail layout physical surroundings in which the service takes place have

humanistic effect on customers and employees:• Ambient conditions: such as lighting, sound, smell and

temperature.• Spatial layout and functionality: involves customer

circulation path planning, aisle, and product grouping.• Signs, symbols, and artifacts: which are characteristics of

building design that carry social significant (as carpeted area that encourage shoppers to slow down and browse the assortments of the store).

Jay Heizer & Barry Render, “Operation Management”, 10th ed. Pearson Prentice Hall, New Jersy,2010.P 380

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Warehousing and Storage Layout

Utilization of the total space of the warehouse while maintaining low material handling costs. Minimizing the damage and spoilage of material within the warehouse.

Nowadays, most the warehouses introduced the automated computerized system in managing the warehouse, so the layout should be designed to cope with new systems where everything will be computerized from the (automated order through storing on digital shelves till exporting items to clients).

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Warehousing and Storage LayoutThree terms in warehouse layout have to be mentioned:• Cross-docking: means to avoid placing materials or supplies in

storage by processing them as they are received. This policy can reduce the cost of inventory handling. This system require tight scheduling and accurate inbound product identification.

• Random stocking: Automatic Identification Systems(AISs), like bar codes to load units anywhere in the warehouse randomly. Computerized random stocking systems often include accurate records of existing inventory and its locations , sequencing items to minimize travel time. This can utilize the facility and decrease labor cost.

• Customizing: to add value to a product through modification, repair, labeling and packaging in order to generate competitive advantage in markets.

Jay Heizer & Barry Render, “Operation Management”, 10th ed. Pearson Prentice Hall, New Jersy,2010.

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Fixed-Position LayoutThe item being worked on remain stationary ثابتةand

workers, materials, and equipment are moved as needed.

• Fixed-position are used in large construction projects like(buildings, power plants, dams, shipbuilding, space mission rockets, large aircraft, drilling for oil, operating room in hospital etc….).

• Because problems with fixed-Position Layout are so difficult to solve well onsite, an alternative strategy is to complete as much of the project as possible offsite.

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Fixed-position layoutSome disadvantages with this kind:• Space. For many fixed-position layouts, the work

area may be crowded so that little storage space is available. This also can cause material handling problems.

• Administration. The administrative burden is higher for fixed-position layouts like the span of control can be narrow, and coordination difficult.

http://www.referenceforbusiness.com/management/IntLoc/Layout.html#ixzz2hWsY69U

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Process-Oriented Layout

To minimize transportation cost, distance, and time. This usually achieved by locating departments with relatively high interdepartmental work flow as close together as possible.

Process-oriented layout deals with low-volume, high-variety production in which machines and equipment are grouped together. It is most efficient when making products differentiation or when handling customers, patients, or clients with different needs.

Mathematical approaches can deal best with process layout issues

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Process-Oriented LayoutThe design of process layout requires the following information:• A list of work centers to be arranged, their approximate

dimensions and the dimensions of the building that will house the centers.

• A projection of future work flows between the various work centers.

• The distance between locations.• A list of any special considerations like (operations that must

be separated or be closed together)• The location of key utilities, access and exit points.

William J. Stevenson, “Operation Management”, 8Th ed. McGraw-Hill/Irwin. New York,2005.P 247

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Cellular LayoutRecognizing people and machines into a group so that they

can focus on making a single product or a group of related products.

The idea of work cells was first presented by R. E. Flanders in 1925.

• Cellular manufacturing, where machines are grouped according to the process requirements for a set of similar items (part families) that require similar processing.

• Processes are grouped into cells using a technique known as Group Technology (GT). Group technology involves identifying parts with similar design characteristics (size, shape, and function) and similar process characteristics (type of processing required)

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Cellular Layout• Workers in cellular layouts are well cross-trained so

that they can operate all the equipment within the cell and take responsibility for its output.

• An automated version of cellular manufacturing is the flexible manufacturing system (FMS). With FMS, a computer controls the transfer of parts to the various processes.

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Cellular LayoutAdvantages of cellular manufacturing :• Cost. Cellular manufacturing provides for faster processing time,

less material handling, less work-in-process inventory, and reduced setup time, all of which reduce costs.

• Flexibility. Cellular manufacturing allows for the production of small batches, which provides some degree of increased flexibility. This aspect is greatly enhanced with FMSs.

• Motivation. Since workers are well cross-trained to run every machine in the cell, boredom الملل is less of a factor. Also, since workers are responsible for their cells' output, more autonomy and job ownership is present.

• Utilization. Because the better scheduling and faster material flow.

http://www.referenceforbusiness.com/management/IntLoc/Layout.html#ixzz2hX4u7Py

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Cellular LayoutThe requirements of cellular production include:1. Identification of families of products 2. A high level of training , flexibility, and

empowerment of employees.3. Being self-contained, with its own equipment and

resources.4. Test “poka-yoke” at each station in the cell.

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Poka-Yoke (from Wikipedia)

• A poka-yoke is a Japanese concept (mistake-proofing)is a mechanism that helps an equipment operator avoid and void mistakes . Its purpose is to eliminate product defects by preventing, correcting, or drawing attention to human errors as they occur. The concept was formalized, and the term adopted, by Shigeo Shingo as part of the Toyota Production System. Example :

Ethernet cable plug is designed to be plugged in only by one direction.

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Cellular Layout• About 50% of the U.S plants with fewer than 100

employees use some sort of cellular system, whereas 75% of larger plants have adopted cellular production methods.

• Commercial software, such as ProPlanner and Factory Flow, is available to managers in their move to work cells. These programs require info that includes AutoCAD layout drawings; part routing data, cost, speeds of material handling systems.

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Product-Oriented LayoutIt is assembly lines that range from fairly short with

just a few operations, to long lines that have a large number of operations. Automobiles are example of long lines where the part travels about miles from start to finish.

• Many of the benefits of a product layout relate to the ability to divide required work into a series of elemental tasks that can be performed quickly and routinely by low skilled workers or specialized equipment.

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Product-Oriented Layout• Assigning tasks into workstations are called Line

Balancing by task groupings that need equal time approximately.

• lines that are perfectly balanced will have a smooth flow of work as activities along with the line are synchronized to achieve maximum utilization of labor and equipment.

Product layout requirements:• Volume is adequate for high equipment utilization.• Product demand is stable enough to justify high

investment in specialized equipment.• Product is standardized .

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Product-Oriented LayoutAdvantages of product-oriented layouts include: • Output. Product layouts can generate a large volume of products.• Cost. Unit cost is low as a result of the high volume.• Labor specialization results in reduced training time and cost. • 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-oriented layouts include: • Motivation. Repetitive moves will lead to boredom and dull.• Inflexibility. cannot easily respond to required system changes especially

changes in product or process design. • System protection. The system is at risk from equipment breakdown,

absenteeism, and downtime due to preventive maintenance.

William J. Stevenson, “Operation Management”, 8Th ed. McGraw-Hill/Irwin. New York,2005. P 237

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Layout Decisions Than you for listening