Topic 4- Plant Layout

8/10/2019 Topic 4- Plant Layout

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Operat ionsManagement

Top ic 3Plan t Layou t


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Outline

Object ive of Layou t

Facto rs Inf luenc ing Layout Decis ion

Types o f Layou t

Line Balanc ing for Product Layout


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Definitions:

Plant Layout refers to the arrangement ofphysical facilities such as machineries,furniture's departments, workstations,

equipments etc. with in the factory/buildingin the conversion process.

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Plant Layout


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Object ive of Layou t

The object ive of layout strategy

is to develop a cos t-effect ive

layout that will meet a firmscompet it ive needs /requ irements


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Layout Design Considerations

Higher ut i l izat ion of space, equipment,

and peop le

Improved f low of info rmat ion, mater ials ,

or peop le

Impro ved emp loyee morale and safer

wo rk ing condi tions Improved custom er/c l ient interact ion

Flexibi l i ty


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1) Type of product / Nature of product

Concerns whether the product is a good or a service, the aspect of product design and quality

standard and whether it is for stock or made to order products. product layout is suitable for uniform products whereas process layout is more appropriate for

custom-made products.

2) Characteristics of the materials and material handling equipment.

The characteristics of materials such as size, shape, fragility, bulkiness and weight, influences

the types of material handling equipment to be used, such as cranes, conveyors and

automatic carts to deliver and store material.

3) Nature of manufacturing process

The size, number and sequences of machines required in the technology of the production

process needs to be considered.

Type of machinery: General purpose machines are often arranged as per process layout while

special purpose machines are arranged according to product layout. Repairs and maintenance: machines should be so arranged that adequate space is available

between them for movement of equipment and people required for repairing the machines.

4) Volume of production

5) Types of production/operation methods

In assembly line industries, product layout is better. In job order or intermittent manufacturingon the other hand, process layout is desirable.

6

Factors Influencing Layout Decision


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Others factors can be considered such as:

6) Fac to ry b ui ld in g: The nature and size of the building determines the floor space available for

layout. While designing the special requirements, e.g. air conditioning, dust control, humidity

control etc. must be kept in mind.

7) Hum an needs : Adequate arrangement should be made for washroom, lockers, drinking water,

toilets and other employee facilities, proper provision should be made for disposal of effluents, if

any.

8) Pl an t en v ir onmen t: Heat, light, noise, ventilation and other aspects should be duly considered,

e.g. paint shops and plating section should be located in another hall so that dangerous fumes

can be removed through proper ventilation etc. Adequate safety arrangement should also be

made.

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Factors Influencing Layout Decision


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Types of Layout

1. Off ice layout

2. Retai l layou t

3. Warehouse layout

4. Fixed-pos i tion layou t

5. Process-or iented layou t

6. Work-cel l layou t7. Product -or iented layou t


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Good Layouts Consider

1. Mater ial handl ing equ ipment

2. Capaci ty and space requ irements

3. Env i ronment and aesthet ics

4. Flows of in format ion

5. Cost of mov ing between various

work areas


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OFFICE LAYOUT

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Office Layout

1. Off ic e layou t : Posi t ions wo rkers, theirequipment, and spaces/of f ices to prov ide for

movement of in format ion

Grouping of workers, their equipment, and spaces toprovide comfort, safety, and movement of

information Movement of

information is maindistinction

Typically in state offlux due to frequenttechnologicalchanges


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Office Layout

Figure 9.1

RELATIONSHIP CHART


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RETAIL LAYOUT


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2. Retail layou t: A l locates shel f space

and responds to customer behavior

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Supermarket Retail Layout

Object ive is to maxim ize pro f i tabi l i ty

per square foo t of f loo r space

Sales and pro f i tabi l i ty vary d irect ly

w i th custom er exposure

Design maxim izes p roduct exposureto customers depends on;


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Five Helpful Ideas forSupermarket Layout

1. Locate high-draw i tems around the per iphery of

the sto re (most interested by customer)

2. Use prominen t locat ions fo r h igh-impu lse and

high-margini tems (high profit)

3. Dis tr ib ute power i tems to bo th sides of an ais le

and disperse them to increase view ing o f other

i tems (attractive)

4. Use end-aisle locat ions(end of rows)

5. Convey miss ion o f s to re th rough carefu l

posi t ioning of lead-of f department (in-charge)


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Store Layout

Figure 9.2


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Retail Slotting

Manufactu rers pay fees to retai lersto get the retai lers to d isp lay (slot)

thei r product

Contr ibut ing factors Lim ited shelf space

An increas ing number of new

productsBetter inform at ion about sales

through POS (point o f sales) data col lect ion

Closer con tro l of inventory


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Retail Store Shelf Space

PlanogramComputerized tool

for shelf-space

managementGenerated from

stores scanner

data on sales

Often supplied bymanufacturer

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Servicescapes

Ambient condi tions - background

character is t ics such as l ight ing , sound,

sm ell , and temperature

Spat ial layout and funct ional i ty - whichinvolve cus tomer

circu lat ion path p lann ing,

ais le characterist ics , and

produc t group ing Signs, sym bo ls, and

art i facts - characterist ics

of bu i ld ing design that

carry social sign i f icance


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WAREHOUSELAYOUT


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3. Warehouse layou t: Addresses trade-

offs between space and mater ial

handl ing

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Warehouse Layout

Object ive is to op tim ize trade-offs between

handl ing costs and costs assoc iated wi th

warehouse space

Maximize the total cube of the warehouse ut i l ize its fu l l volume whi le maintain ing low

material handl ing costs


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Warehousing and Storage

Layouts

A l l costs associated with the transact ion

Incom ing transpor t

Storage

Find ing and moving material

Outgoing transpo r t

Equipment, peop le, mater ial, supervis ion ,

insurance, depreciat ion

Minim ize damage and spoi lage

Material Hand l ing Cos ts


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Warehousing and Storage

Layouts Warehouse dens i ty tends to vary

inversely w ith the number of di f ferent

i tems stored

Au tomated Storage and

Retrieval Systems (ASRSs)

can sign i ficant ly improve

warehouse product iv ity byan est imated 500%

Dock locat ion is a key

design element


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a. Cross-Docking

Mater ials are moved d irect ly from

receiv ing to sh ipping and are not

placed in storage

in the warehouse

Requ ires t ightschedu l ing and

accurate shipments,

bar code or RFID

ident i f icat ion used foradvanced shipm ent

no t i f icat ion as mater ials

are un loaded


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Warehouse LayoutCross-Dock ing Layou t

Shipping and receiv ing docks

Office

Shipping and receiv ing docks


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b. Random Stocking

Typ ically requires automat ic ident i f icat ionsystems (A ISs) and effect ive info rmation

sys tems

Random assignment of stock ing locations

al lows more ef f ic ient use of space

Key tasks

1. Main tain li st o f open locat ions

2. Main tain accurate records

3. Sequence items to m in imize t ravel , p ick t ime

4. Comb ine p ick ing o rder s

5. Ass ign c lasses of i tems to par ticu lar areas


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c. Customizing

Value-added act iv i t ies perfo rmed at

the warehouse

Enable low cost and rapid responsestrategies

Assemb ly of components

Loading sof tware

Repairs

Custom ized label ing and packaging


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10/15/2014 NY - KJP 585 2009 28Shipping and receiv ing docks

Off ice

Cus

tom

iza

tion

Conveyor

Storage racks

Staging

Warehouse LayoutTradit ional Layou t


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FIXED - POSITION

LAYOUT


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Fixed-Position Layout

4. Fixed-pos i tion layout: Addresses thelayout requ irements of large, bu lky

pro jects such as ships and bui ld ings

Product remains in one place

Workers and equipment come to site

Complicating factors

Limited space at site

Different materials

required at differentstages of the project

Volume of materialsneeded is dynamic


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PROCESS ORIENTEDLAYOUT


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5. Process -or ien ted layou t: Deals w ith

low -vo lume, high -variety product ion

(also cal led job shop o r interm it tent

product ion)

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Process Orien ted Layou t

Like machines and equipment are grouped

together

Flexible and capable of hand l ing a wide

var iety of products or services

Disadvantages-Schedul ing can be di f ficul t

and setup , mater ial hand l ing , and labor co sts

can be high


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Surgery

Radio logy

ERtr iageroom

ER Beds Pharmacy

Emergency room admiss ions

Bil l ing/exit

Laborator ies

Process Oriented Layout

Patient A - brok en leg

Patient B - errat ic h eartpacemaker

Figure 9.3


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Process-Oriented Layout

Arrange work centers so as tom inim ize the cos ts o f mater ial

handl ing

Basic cost elements are

Number of loads (or peop le) moving

between centers

Distance loads (or peop le) movebetween centers


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Process-Oriented Layout

Minim ize cos t = Xi jCi jn

i = 1

n

j = 1

where n = total number of wo rk centers or

departments

i , j = ind ividual departments

Xi j= number of loads moved fromdepartment i to department j

Ci j= cos t to move a load between

department i and department j


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Process Layout Example

1. Construct a from-to matrix

2. Determine the space requ i rements

3. Develop an in it ial schematic d iagram4. Determ ine the cos t o f th is layou t

5. Try to improve the layou t

6. Prepare a detai led p lan

Arrange six departments in a factor y to

m inim ize the mater ial hand l ing costs.

Each department is 20 x 20 feet and the

bu i lding is 60 feet long and 40 feet w ide.


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Department Ass embly Paint ing Machine Receiv ing Shipping Test ing

(1) (2) Sho p (3) (4) (5) (6)

Ass embly (1)

Paint ing (2)

Machin e Shop (3)

Receiving (4)

Shipping (5)

Testi ng (6)

Number of loads per week

50 100 0 0 20

30 50 10 0

20 0 100

50 0

0


Figure 9.4


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Area 1 A rea 2 A rea 3

Area4 A rea 5 A rea 6

60

40


Receiving Shipp ing Test ing

Department Department Department(4) (5) (6)

Figure 9.5

Ass embly Paint ing Machine ShopDepartment Department Department

(1) (2) (3)


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100

50

50

10

100

30


Interdepartmental Flow Graph

1 2 3

4 5 6

Figure 9.6


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Cost = $50 + $200 + $40(1 and 2) (1 and 3) (1 and 6)

+ $30 + $50 + $10(2 and 3) (2 and 4) (2 and 5)

+ $40 + $100 + $50(3 and 4) (3 and 6) (4 and 5)

= $570

Cost = Xi jCi jn

i = 1

n

j = 1


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30

50

50

50 100

100

Revised Interdepartmental Flow Graph

2 1 3

4 5 6

Figure 9.7


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Cost = $50 + $100 + $20(1 and 2) (1 and 3) (1 and 6)

+ $60 + $50 + $10(2 and 3) (2 and 4) (2 and 5)

+ $40 + $100 + $50(3 and 4) (3 and 6) (4 and 5)

= $480

Cost = Xi jCi jn

i = 1

n

j = 1


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Area 1 A rea 2 A rea 3

Area4 A rea 5 A rea 6

60

40


Receiving Shipp ing Test ing

Department Department Department(4) (5) (6)

Figure 9.8

Paint ing Ass embly Machine ShopDepartment Department Department

(2) (1) (3)


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Computer Software

Graph ical app roach only works for

smal l prob lems

Compu ter programs are available to

so lve bigger prob lems

CRAFT

ALDEP

CORELAP

Facto ry Flow


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CRAFT Example

1 2 3 4 5 6

1 A A A A B B

2 A A A A B B

3 D D D D D D

4 C C D D D D

5 F F F F F D

6 E E E E E D

PATTERN

TOTAL COST 20,100EST. COST REDUCTION .00ITERATION 0

(a)

1 2 3 4 5 6

1 D D D D B B

2 D D D D B B

3 D D D E E E

4 C C D E E F

5 A A A A A F

6 A A A F F F

PATTERN

TOTAL COST 14,390EST. COST REDUCTION 70.ITERATION 3

(b)Figure 9.9


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Computer Software

Three dimensional visualization software

allows managers to view possible

layouts and assess process, material

handling,

efficiency,

and safety

issues


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WORK CELL LAYOUT


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Work Cel l Layou t

6. Work cel l layout: Arranges mach ineryand equ ipment to focus on

product ion of a s ing le product or

group of related p roduc ts


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Work Cells

Reorganizes peop le and mach ines

in to groups to focu s on s ing le

products or product groups

Group techno logy ident i f ies

products that have sim i lar

character ist ics for part icular cel ls

Volume must jus t i fy cel ls

Cel ls can be reconf igured as

des igns or volume changes


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Advantages of Work Cells

1. Reduced work-in-process inventory2. Less floor space required

3. Reduced raw material and finishedgoods inventory

4. Reduced direct labor5. Heightened sense of employee

participation

6. Increased use of equipment and

machinery7. Reduced investment in machinery and

equipment


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Improving Layouts Using

Work Cells

Current layou t - workersin sm all closed areas.Cannot increase output

wi thou t a third work er andthird set of equipm ent. Imp roved layou t - cross -t ra inedwork ers can assist each other.May be able to add a third wo rkeras addi t ional outpu t is needed.

Figure 9.10 (a)


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Improving Layouts Using

Work Cells

Current layout - stra ightl ines make it hard to b alancetasks b ecause work may no tbe div ided evenly

Imp roved layout - in Ushape, wo rkers have betteraccess. Four c ross-t ra ined

work ers were reduced.

Figure 9.10 (b)

U-shaped l ine may redu ce employ ee movement

and space requirements whi le enhancing

communicat ion, reduc ing the num ber of

wo rkers, and faci l i tat ing inspect ion


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Requirements of Work Cells

1. Ident if icat ion of fam i lies of products

2. A h igh level of t rain ing, f lex ib i l ity

and empowerment of employees

3. Being sel f-con tained, w i th i ts own

equ ipment and resources

4. Test (poka-yoke) at each stat ion inthe cell


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Staffing and Balancing Work

CellsDeterm ine the takt t ime

Takt tim e =

Total work t ime avai lable

Uni ts required

Determ ine the numberof operators requ ired

Workers requ ired =Total operat ion time requ ired

Takt tim e


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Staffing Work Cells Example

600 Mirrors per day requiredMir ror prod uct ion s cheduled for 8hours per dayFrom a work balance chart

total operat ion tim e

= 140second s

Stand

ard

timerequ

ire

d

Operat ions

Ass emble Paint Test Label Pack forsh ipment

60

50

40

30

20

10

0


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Staffing Work Cells Example

600 Mirrors per day requiredMir ror prod uct ion s cheduled for 8hours per dayFrom a work balance chart

total operat ion tim e

= 140second s

Takt time = (8hrs x 60mins) / 600uni ts= .8mins = 48second s

Workers required =Total operat ion tim e requ ired

Takt tim e

= 140 / 48 = 2.91

W k B l Ch


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Work Balance Charts

Used for evaluating operation times inwork cells

Can help identify bottleneck

operations Flexible, cross-trained employees can

help address labor bottlenecks

Machine bottlenecks may requireother approaches


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Focused Work Center andFocused Factory

Focused Work Center

Ident i fy a large fam i ly of sim i lar pro duc ts

that have a large and s table demand

Moves product ion from a general-pu rpose,

pro cess -or iented faci l i ty to a large work cel l

Focused Factory

A focused wo rk cell in a separate faci l i ty

May be focused by produc t l ine, layou t,

qual ity, new produc t intro du ct ion, f lexibi l i ty,

or o ther requirements

C


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Focused Work Center andFocused Factory

Table 9.2

Work Cell Focused Work Center Focused Factory

A work cell is a temporary

product-oriented

arrangement of

machines andpersonnel in what is

ordinarily a process-

oriented facility

A focused work center is a

permanent product-

oriented arrangement of

machines and personnelin what is ordinarily a

process-oriented facility.

A focused factory is a

permanent facility to

produce a product or

component in a product-oriented facility. Many

focused factories

currently being built

were originally part of a

process-oriented facility.

Example: A job shop withmachinery and

personnel rearranged to

produce 300 unique

control panels.

Example: Pipe bracketmanufacturing at a

shipyard.

Example: A plant toproduce window

mechanism for

automobiles.


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PRODUCT ORIENTED

LAYOUT


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Produc t Orien ted Layout

7. Product-o r ien ted layout: Seeks thebest personnel and machine

u t i l izat ion s in repet i t ive or

cont inuous p roduct ion


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Repetitive and Product-Oriented Layout

1. Vo lume is adequate fo r h igh equ ipmentut i l izat ion

2. Produc t demand is s tab le enough to jus t if y h igh

investment in special ized equipment

3. Product is standard ized or approach ing a phaseof l i fe cycle that just i f ies investment

4. Suppl ies o f raw mater ials and components are

adequate and of uni form qual i ty

Organized around products or fami l ies o f

s im i lar high -vo lume, low -var iety products


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Product-Oriented Layouts

Fabric at ion l ine

Bu i lds components on a ser ies of machines

Machine-paced

Requ ire mechanical or engineering changes to

balance Assembly l ine

Puts fabricated parts to gether at a series o f

works ta t ions

Paced by work tasks

Balanced by moving tasks

Bo th types o f l ines must be balanced so that the

t ime to perform the wo rk at each stat ion is the same


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McDonalds Assembly Line

Figure 9.12


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Disassembly Lines

Disassembly is being considered in new

product designs

Green issues and recycling standards are

important consideration

Automotive

disassembly is

the 16thlargestindustry in

the US


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Assembly-Line Balancing

Object ive is to min im ize the imbalancebetween mach ines or personnel whi le

meet ing required ou tput

Starts with the precedence relat ionsh ips

1. Determ ine cyc le time

2. Calcu late theoret ical

min imum number of

workstat ions

3. Balance the line byassigning speci f ic

tasks to wo rkstat ions


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Example: Developing a precedence

diagram.

We want to develop a precedence

diagram for an electrostatic copier thatrequires a total assembly time of 66

minutes. The table below gives the tasks,

assembly times, and sequencerequirements for the copier.

Line Balancing - Example


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This means thattasks B and Ecannot be don eunt i l task A hasbeen com pleted

Performance Task Must Fol lowTime Task Listed

Task (m inutes) Below

A 10 B 11 A

C 5 BD 4 BE 12 AF 3 C, DG 7 FH 11 EI 3 G, H

Total tim e 66


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A 10 B 11 A


Total tim e 66I

GF

C

D

H

B

E

A

10

1112

5

43

711 3

Figure 9.13


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I

GF

C

D

H

B

E

A

10

1112

5

43

711 3

Figure 9.13



A 10 B 11 A


Total tim e 66


480availablem ins per day

40 un its required

Cycle t ime =

Product ion t ime

available per dayUnits required per day

= 480 / 40= 12m inutes per uni t

Min imumnumber of

workstat ions=

Time for task i

Cycle t ime

n

i = 1

= 66 / 12= 5.5or 6stat ions


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Wing Component Example

I

GF

C

D

H

B

E

A

10

1112

5

43

711 3

Figure 9.13



A 10 B 11 A


Total tim e 66


40 un its required

Cycle t ime = 12mins

Min imum

workstat ions= 5.5or 6

Line-Balancing Heuris t ics

1. Longest task time Choose the available task withthe longest task time

2. Most following tasks Choose the available task withthe largest number of followingtasks

3. Ranked positionalweight

Choose the available task forwhich the sum of following tasktimes is the longest

4. Shortest task time Choose the available task withthe shortest task time

5. Least number offollowing tasks

Choose the available task withthe least number of followingtasks

Table 9.4


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40 un its required


Min imum




A 10 B 11 A


Total tim e 66


I

GF

H

C

D

B

E

A

10 11

12

5

4

3 7

11

3

Station1

Station

2

Stat ion4

Stat ion5

Stat ion 3

Stat ion 6

Figure 9.14


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A 10 B 11 A


Total tim e 66



40 un its required


Min imum


Eff ic iency = Task times

(Actual number of wo rkstat ions ) x (Largest cyc le t ime)

= 66minutes/ (6stat ions) x (12m inutes)

= 91.7%


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Layout Strategies


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Layout Strategies

Table 9.1

Office Retail Warehouse (storage)

Examples

Allstate Insurance

Microsoft Corp.

Krogers

Supermarket

Walgreens

Bloomingdales

Federal-Moguls

warehouse

The Gapsdistribution center

Problems/Issues

Locate workersrequiring frequent

contact close to one

another

Expose customer tohigh-margin items

Balance low-coststorage with low-cost

material handling

Layout Strategies


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Layout Strategies

Table 9.1

Project

(fixed position)

Job Shop

(process oriented)

Examples

Ingall Ship Building

Corp.

Trump Plaza

Pittsburgh Airport

Arnold Palmer Hospital

Hard Rock Caf

Olive Garden

Problems/Issues

Move material to the limited

storage areas around the

site

Manage varied material

flow for each product

Layout Strategies


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Layout Strategies

Work Cells

(product families)

Repetitive/ Continuous

(product oriented)

Examples

Hallmark Cards

Wheeled Coach

Standard Aero

Sonys TV assembly

line

Toyota Scion

Problems/Issues

Identify a product family, buildteams, cross train team

members

Equalize the task time at eachworkstation

Documents

Topic 4- Plant Layout