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9 - 1© 2014 Pearson Education, Inc.
Layout Strategies
PowerPoint presentation to accompany Heizer and Render Operations Management, Eleventh EditionPrinciples of Operations Management, Ninth Edition
PowerPoint slides by Jeff Heyl
99
© 2014 Pearson Education, Inc.
9 - 2© 2014 Pearson Education, Inc.
Outline► Strategic Importance of Layout Decisions► Types of Layout
► Fixed-Position Layout► Process-Oriented Layout► Product-Oriented Layout
► Use Line Balance Analysis for Product Layout
9 - 3© 2014 Pearson Education, Inc.
TURNINGMACHINE
MILLINGMACHINE
DRILLINGMACHINE
INDUCTIONHARDENINGMACHINE
GRINDINGMACHINE
Strategic Importance of Layout Decisions
9 - 4© 2014 Pearson Education, Inc.
Strategic Importance of Layout Decisions
Objective of layout strategy is to develop an effective and efficient
layout that will meet the firm’s competitive requirements.
Layout refers to the specific configuration of physical facilities in an organization.
9 - 5© 2014 Pearson Education, Inc.
Layout Design Considerations
► Higher utilization of space, equipment, and people
► Improved flow of information, materials, or people
► Improved employee morale and safer working conditions
► Improved customer/client interaction► Flexibility
9 - 6© 2014 Pearson Education, Inc.
Types of Layout
1. Fixed-position layout
2. Process-oriented layout
3. Product-oriented layout
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Fixed-Position Layout
▶Deal with large, bulky projects, e.g., ship & building
▶Product remains in one place
▶Workers and equipment come to site
▶Complicating factors▶ Limited space at site
▶Different materials required at different stages of the project
▶Volume of materials needed is dynamic
9 - 8© 2014 Pearson Education, Inc.
▶As much of the project as possible is completed off-site in a product-oriented facility
▶This can significantly improve efficiency but is only possible when multiple similar units need to be created
Fixed-Position Layout
9 - 9© 2014 Pearson Education, Inc.
Process-Oriented Layout
▶Similar machines and equipment are grouped together
▶To deal with low-volume, high-variety production
▶Each product / service undergoes a different sequence of operations
▶Example: Job shop
9 - 10© 2014 Pearson Education, Inc.
L
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M
M
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D
D
D
D
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D
D
D
G
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A A AReceiving andShipping Assembly
Painting Department
Lathe DepartmentMilling
Department Drilling Department
Grinding Department
P
P
Process-Oriented Layout
9 - 11© 2014 Pearson Education, Inc.
Surgery
Radiology
ER triage room
ER Beds Pharmacy
Emergency room admissions
Billing/exit
Laboratories
Process-Oriented Layout
Patient A - broken leg
Patient B - erratic heart pacemaker
Figure 9.3
9 - 12© 2014 Pearson Education, Inc.
Product-Oriented Layout
1. Volume is adequate for high equipment utilization
2. Product demand is stable enough to justify high investment in specialized equipment
3. Product is standardized or approaching a phase of life cycle that justifies investment
4. Supplies of raw materials and components are adequate and of uniform quality
5. Repetitive or continuous process
Organized around products or families of similar high-volume, low-variety products
9 - 13© 2014 Pearson Education, Inc.
Product-Oriented Layout
Raw materialsor customer
Finished item
Station2
Station3
Station4
Materialand/or labor
Station1
Materialand/or labor
Materialand/or labor
Materialand/or labor
9 - 16© 2014 Pearson Education, Inc.
0
2
4
6
8
10
12
1 2 3 4 5
Workstation
Tim
e (
min
)
0
2
4
6
8
10
12
1 2 3 4 5
Workstation
Tim
e (
min
)
Line Balancing in Product Layouts
▶ Central problem in product layout is to balance the output at each work station along the production line
▶ Line Balancing is the process of assigning tasks to workstations in such a way that the workstations have approximately equal time requirements
9 - 17© 2014 Pearson Education, Inc.
General Procedure for Line Balancing
1. Determine precedence relationships
2. Calculate Takt time =
3. Determine minimum number of work stations =
4. Determine the candidate list which includes the following tasks
a) The task whose immediate predecessors have been assigned to a workstation
b) The task for which adequate time is available at the work station
5. Decision rule: task with the longest processing time
6. Determine efficiency =
takt time
task timeall of Total
%100Takt timestations Work Actual of #
s task timeall of Sum
Total work time availableUnits required
9 - 18© 2014 Pearson Education, Inc.
TaskTask Immediate Predecessor Immediate Predecessor Time (Min) Time (Min)
AA Press out sheet of fruitPress out sheet of fruit —— 0.1 0.1
BB Cut into stripsCut into strips AA 0.2 0.2
CC Outline fun shapesOutline fun shapes AA 0.4 0.4
DD Roll up and packageRoll up and package B, CB, C 0.3 0.3
0.10.1
0.20.2
0.40.4
0.30.3D
B
C
A
There are 240 productive minutes available per day. The production schedule requires to complete 600 units each day. Arrange the work activities into workstations so as to balance the assembly line.
Line Balancing (Example 1)
TaskTask Immediate Predecessor Immediate Predecessor Time (Min) Time (Min)
AA Press out sheet of fruitPress out sheet of fruit —— 0.1 0.1
BB Cut into stripsCut into strips AA 0.2 0.2
CC Outline fun shapesOutline fun shapes AA 0.4 0.4
DD Roll up and packageRoll up and package B, CB, C 0.3 0.3
Takt time = = = 0.4 min/unitProduction time available per day
Output needed per day
240
600
35.24.0
3.04.02.01.0
Takt time
task timetotal Nmin
Round up
Line Balancing (Example 1)There are 240 productive minutes available per day. The production schedule requires to complete 600 units each day. Arrange the work activities into workstations so as to balance the assembly line.
9 - 20© 2014 Pearson Education, Inc.
Station Candidate Task Task Total Idle Number list assigned time time time
1 A A 0.1 0.1 0.3
B B 0.2 0.3 0.1
2 C C 0.4 0.4 0
3 D D 0.3 0.3 0.1
Takt time = 0.4 min/unit
0.10.1
0.20.2
0.40.4
0.30.3
D
B
C
A
Line Balancing (Example 1)
9 - 21© 2014 Pearson Education, Inc.
A, B C D
Work station 1
Work station 2
Work station 3
0.3 minute
0.4 minute
0.3 minute
Efficiency =Total task times
(# of actual workstations) x Takt time
= 83.33%
= 0.1 + 0.2 + 0.4 + 0.3 (3 stations) x (0.4 minutes)
Line Balancing (Example 1)
9 - 22© 2014 Pearson Education, Inc.
PerformancePerformanceTimeTime ImmediateImmediate
TaskTask (minutes)(minutes) predecessorpredecessor
AA 55 ——BB 33 AACC 44 BBDD 33 BBEE 44 CCFF 11 CCGG 44 D, E, FD, E, FHH 77 GG
Total time Total time 3131
(1) Draw a precedence diagram for the assembly line
A5
B3
E4
C4
D3 F
1
G4
H7
Line Balancing (Example 2)
9 - 23© 2014 Pearson Education, Inc.
(2) Assuming 500 productive minutes available per day, compute the takt time needed to obtain an output of 65 units per day.
Takt time =Production time available per day
output required per day= 500 / 65= 7.7 minutes per unit
503.47.7
31
takt time
task timetotal Nmin
Line Balancing (Example 2)
9 - 24© 2014 Pearson Education, Inc.
Station Candidate Task Task Total IdleNumber list assigned time time time
1 A A 5 5 2.7
2 B B 3 3 4.7
C, D C 4 7 0.7
3 D, E, F E 4 4 3.7
D, F D 3 7 0.7 4 F F 1 1 6.7
G G 4 5 2.7 5 H H 7 7 0.7
A5
B3
E4
C4
D3 F
1
G4
H7
Takt time = 7.7 min/unit
9 - 25© 2014 Pearson Education, Inc.
A B,C D, E
Work station 1
Work station 2
Work station 3
5 minute 7 minute
Efficiency =Total task times
(# of actual workstations) x Takt time
= 80.52%
= 31 minutes (5 stations) x (7.7 minutes)
Work station 4
5 minute
G, F
Work station 5
7 minute
H
7 minute
Line Balancing (Example 2)
9 - 26© 2014 Pearson Education, Inc.
EX 1 in ClassBalance the assembly line for the Tourist T-Shirt Company. The operations run continuously for 8 hours per day. Each day, 80 T-shirts must be produced to meet customer demand.
9 - 27© 2014 Pearson Education, Inc.
EX 2 in Class
TaskProcessing
timeImmediate predecessor
A 12 -B 6 AC 6 BD 2 BE 3 BF 12 BG 7 C, DH 5 GI 4 EJ 4 F, IK 6 H, JL 7 K
Total 74
The assembly of Noname personal computers, a generic mail-order PC clone, requires a total of 12 tasks, and the job times (in minutes) along with the precedence relationships are summarized in the table. Suppose that the company is willing to hire enough workers to produce one assembled machine every 18 minutes. Perform a line balancing analysis.
9 - 28© 2014 Pearson Education, Inc.
Summary
1. Fixed-position layout: Addresses the layout requirements of large, bulky projects such as ships and buildings
2. Process-oriented layout: Deals with low-volume, high-variety production (also called job shop or intermittent production)
3. Product-oriented layout: Seeks the best personnel and machine utilizations in repetitive or continuous production