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1 Facility Location Process Design and Facility Layout

Facility Layout Session 2

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Facility Location

Process Designand

Facility Layout

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Introduction

• Process selection

 – Deciding on the way production of 

goods or services will be organized

• Major implications – Capacity planning

 – Layout of facilities

 – Equipment, Capital-equipment or 

labor intensive – Design of work systems

• New product and service,

technological changes, and

competitive pressures

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Process Types

• Job Shops: Small lots, low volume, general equipment,skilled workers, high-variety. Ex: tool and die shop,

veterinarian’s office

• Batch Processing: Moderate volume and variety. Variety

among batches but not inside. Ex : paint production ,

• Repetitive/Assembly: Semi continuous , high volume of 

standardized items, limited variety. Ex: auto plants,

cafeteria

• Continuous Processing: Very high volume , no variety.

Ex: steel mill, chemical plants

• Projects: Non routine jobs. Ex: preparing metro rail

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Dimension Job Shop Batch Repetitive Continuous

Job variety Very High Moderate Low Very low

Processflexibility

Very High Moderate Low Very low

Unit cost Very High Moderate Low Very low

Volume of output

Very low Low High Very high

Product – Process Matrix

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Process Type High variety Low variety

Job Shop Appliancerepair 

Emergencyroom

Batch Commercialbakery

ClassroomLecture

Repetitive Automotiveassembly

Automaticcarwash

Continuous(flow)

Oil refineryWater purification

Product – Process Matrix

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Fixed automation: Low production cost and high volume but withminimal variety and high changes cost – Assembly line

Programmable automation: Economically producing a wide

variety of low volume products in small batches – Computer-aided design and manufacturing systems (CAD/CAM) – Numerically controlled (NC) machines / CNC – Industrial robots (arms)

Flexible automation: Require less changeover time and allowcontinuous operation of equipment and product variety – Manufacturing cell – Flexible manufacturing systems: Use of high automation to achieve

repetitive process efficiency with job shop process• Automated retrieval and storage• Automated guided vehicles

 – Computer-integrated manufacturing (CIM)

 and control devices that enables it to

operate

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Robot

Show wafer_handler_web

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Flexible Manufacturing System

• Group of machines that include supervisory computer control, automatic material handling, robots and other processing equipment – Advantage:

reduce labor costs and more consistent qualitylower capital investment and higher flexibility than

hard automation

relative quick changeover time

 – Disadvantageused for a family of products and require longer planning and development times

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Computer-integrated manufacturing

• Use integrating computer system to link a broad

range of manufacturing activities, including

engineering design, purchasing, order processing

and production planning and control• Advantage:

rapid response to customer order and product

change, reduce direct labor cost, high quality

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• Layout : the configuration of departments, workcenters, and equipment, – Whose design involves particular emphasis on

movement of work (customers or materials) through thesystem

• Importance of layout – Requires substantial investments of money and effort

 – Involves long-term commitments

 – Has significant impact on cost and efficiency of short-term operations

Layout

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Inefficient operations

For Example:

High Cost

Bottlenecks

Changes in the design

of products or services

The introduction of newproducts or services

Accidents

Safety hazards

The Need for Layout Decisions

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Changes inenvironmental

or other legal

requirements

Changes in volume of 

output or mix of 

products

Changes in methodsand equipment

Morale problems

The Need for Layout Design (Cont’d)

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Basic Layout Types

• Product Layout – Layout that uses standardized processing operations

to achieve smooth, rapid, high-volume flow• Auto plants, cafeterias

• Process Layout – Layout that can handle varied processing requirements

• Tool and die shops, university departments

• Fixed Position Layout

 – Layout in which the product or project remainsstationary, and workers, materials, and equipment aremoved as needed

• Building projects, disabled patients at hospitals

• Combination Layouts

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A Flow Line for Production or Service

Flow Shop or Assembly Line Work Flow

Raw materialsor customer FinisheditemStation2 Station3 Station4

Material 

and/or 

labor 

Station1

Material 

and/or 

labor 

Material 

and/or 

labor 

Material 

and/or 

labor 

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A U-Shaped Production Line

Advantage: more compact, increased communication

facilitating team work, minimize the material handling

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Process Layout

Process Layout - work travels

to dedicated process centers

Milling

Assembly

& Test

Grinding

DrillingPlating

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Layout types: Product or Process Make your pick

A

B

A

B

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Process vs Layout types

• Job Shop

• Project

• Repetitive

• Product

• Process

• Fixed-point

Match

?

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Product layout

Advantages – High volume

 – Low unit cost

 – Low labor skill needed

 – Low material handling

 – High efficiency andutilization

 – Simple routing and

scheduling – Simple to track and

control

Disadvantages

 – Lacks flexibility

• Volume, design, mix

 – Boring for labor 

• Low motivation• Low worker enrichment

 – Can not accommodate partial

shut downs/breakdowns

 – Individual incentive plans are

not possible

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Cellular Layouts

• Cellular Manufacturing – Layout in which machines are grouped into a cell that

can process items that have similar processingrequirements. A product layout is visible inside each

cell.• Group Technology

 – The grouping into part families of items with similar design or manufacturing characteristics. Each cell isassigned a family for production. This limits theproduction variability inside cells, hence allowing for aproduct layout.

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A Group of Parts

Similar manufacturing characters

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Process Layout

Gear

cutting

Mill Drill

Lathes

Grind

Heat

treat

Assembly

111

333

222

444

222

111

444

111 33311112222

222

3333

111

444

111

3    3    3    3    3    3    3    3    3    

4     4     4     4     4     

    3    3    3    3    3    3

    2    2    2    2    2

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Cellular Manufacturing Layout

-1111 -1111

222222222 - 2222

     A    s     s     e     m

     b      l    y  

3333333333 - 3333

44444444444444 - 4444

Lathe

Lathe

Mill

Mill

Mill

Mill

Drill

Drill

Drill

Heat

treat

Heat

treat

Heat

treat

Gear 

cut

Gear 

cut

Grind

Grind

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Basic Layout Formats

Part Family W Part Family X

Part Family Y

Part Family Z

Assemble Y,W Assemble X,Z

FinalProduct

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Fixed-Position and combination Layout

• Fixed-Position Layout:

item being worked on remains stationary,

and workers, materials and equipment aremoved as needed.

Example: buildings, dams, power plants

• Combination Layouts:combination of three pure types.

  Example: hospital: process and fixed position.

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Location Decision

Location decision requires when-

1.A new unit to be set up

2.Poor selection earliar 

3.Change of govt. policy

4.Growth of business makes it advisable

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Location decision

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Techniques for location decision

QuantitativeCentre of gravity model

Median Model

Brown and Gibson ModelDimensional Analysis

Qualitative

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