Facility Planning - Layout Process.ppt

Facility Layout Planning
Introduction.
Objectives of Plant Layout.
Factors affecting Plant Layout.
Types of Plant Layout.
Plant Layout for a Service business.
Plant Layout for a Warehouse.

Facility Layout Planning
 Introduction
 Objectives
 Factors Affecting Layout Selection and
Design
 Types of Plant Layout
 Product Layout
 Process Layout
 Cell Layout
 Layout for Services

Introduction
 Plant layout planning includes decisions regarding the physical
allocation of the economic activity centers in a facility.
 An economic activity center is any entity occupying space.
 The objective of plant layout planning is a more effective
work flow at the facility, allowing workers and equipment
being more productive.
 Facility layout techniques apply to the case where several physical
means have to be located in a certain area, either industrial processes
or services.
 The objective of the chapter is not only Plant layout but re-layout also
(most common situation for a company).
 To carry out an appropriate plant layout, it’s important to take into
account the business strategic and tactical objectives
 Example: space requirements/cost per m2 in Malls;
accessibility/privacy in offices.

Introduction
 To make a decision about layout planning, 4 different
questions must have an answer:
 Which centers do we have to consider?
 How much space and capacity is required for each center?
 If there is not enough space, productivity may be reduced.
 Too much space is expensive and may also reduce productivity.
 How must the space be configured at each center?
 Space quantity, shape and the elements of the work center are
related to each other.
 Where should each center be located at within the facility?
 The allocation of the different centers may affect productivity.

Introduction
 The plant layout process starts at an aggregate level, taking into
account the different departments. As soon as we get into the details,
the different issues arise, and the original configuration may be
changed through a feedback process.
 Most (if not all of them) layouts are designed properly for the initial
conditions of the business, although as long as the company grows
and has to be adapted to internal and external changes, a re-layout is
necessary.
DETALLE
TIEMPO
GRADO DE DETALLE SEGÚN
AVANCE DEL PROYECTO
Fase I
Localización
Fase IV
Instalación
Fase III
Distribución Detallada
Fase II
Distribución General

Introduction
 The reasons for a re-layout are based on 3 types of
changes:
 Changes in production volumes.
 Changes in processes and technology.
 Changes in the product.
 The frequency of the re-layout will depend on the
requirements of the process.

Introduction
 Symptoms that allow us to detect the need for a re-layout:
 Congestion and bad utilization of space.
 Excessive stock in process at the facility.
 Long distances in the work flow process.
 Simultaneous bottle necks and workstations with idle time.
 Qualified workers carrying out too many simple operations.
 Labor anxiety and discomfort. Accidents at the facility.
 Difficulty in controlling operations and personnel.

Lay Out
 Introduction
 Objectives
 Factors Affecting Layout Selection and
Design
 Types of Plant Layout
 Product Layout
 Process Layout
 Layout for Services

Facility Layout Definition
 A facility layout is an arrangement of everything
needed for production of goods or delivery of
services. A facility is an entity that facilitates the
performance of any job. It may be a machine tool, a
work centre, a manufacturing cell, a machine shop,
a department, a warehouse, etc. (Heragu, 1997).
Product
Layouts
Fixed
Position
Layouts
Mixed Layouts Process Layouts
Quantity
Number of Different Products
The layout design generally
depends on the products variety
and the production volumes. Four
types of organization are referred
to, namely fixed product layout,
process layout, product layout and
cellular layout (Dilworth, 1996).

Objectives of Plant Layout
 The main objective consists of organizing equipment
and working areas in the most efficient way, and at
the same time satisfactory and safe for the personnel
doing the work.
 Sense of Unity
 The feeling of being a unit pursuing the same objective.
 Minimum Movement of people, material and
resources.
 Safety
 In the movement of materials and personnel work flow.
 Flexibility
 In designing the plant layout taking into account the changes
over short and medium terms in the production process and
manufacturing volumes.

Objectives of Plant Layout
 These main objectives are reached through the attainment of the
following facts:
 Congestion reduction.
 Elimination of unnecessary occupied areas.
 Reduction of administrative and indirect work.
 Improvement on control and supervision.
 Better adjustment to changing conditions.
 Better utilization of the workforce, equipment and services.
 Reduction of material handling activities and stock in process.
 Reduction on parts and quality risks.
 Reduction on health risks and increase on workers safety.
 Moral and workers satisfaction increase.
 Reduction on delays and manufacturing time, as well as increase
in production capacity.
 All these factors will not be reached simultaneosly, so the best
solution will be a balance among them.

Factors affecting Plant Layout
 The final solution for a Plant Layout has to take into account a
balance among the characteristics and considerations of all
factors affecting plant layout, in order to get the maximum
advantages.
 The factors affecting plant layout can be grouped into 8
categories:
 Materials
 Machinery
 Labor
 Material Handling
 Waiting Time
 Auxiliary Services
 The building
 Future Changes

 The factors affecting plant layout can be grouped into
8 categories:
 Materials
 The layout of the productive equipment will depend on the
characteristics of the product to be managed at the facility, as
well as the different parts and materials to work on.
 Main factors to be considered: size, shape, volume, weight, and
the physical-chemical characteristics, since they influence the
manufacturing methods and storage and material handling
processes.
 The sequence and order of the operations will affect plant layout
as well, taking into account the variety and quantity to produce.

8 categories:
 Machinery
 Having information about the processes, machinery, tools and
necessary equipment, as well as their use and requirements is
essential to design a correct layout.
 The methods and time studies to improve the processes are
closely linked to the plant layout.
 Regarding machinery, we have to consider the type, total
available for each type, as well as type and quantity of tools and
equipment.
 It’s essential as well to know about space required, shape,
height, weight, quantity and type of workers required, risks for
the personnel, requirements of auxiliary services, etc.

8 categories:
 Labor
 Labor has to be organized in the production process (direct
labor, supervision and auxiliary services).
 Environment considerations: employees’ safety, light conditions,
ventilation, temperature, noise, etc.
 Process considerations: personnel qualifications, flexibility,
number of workers required at a given time as well as the type
of work to be performed by them.
 Material Handling
 Material handling does not add value to the product; it’s just
waste.
 Objective: Minimize material handling as well as combining with
other operations when possible, eliminating unnecessary and
costly movements.

8 categories:
 Waiting time - Stock
 Objective: Continuous Material Flow through the facility,
avoiding the cost of waiting time and demurrages that happen
when the flow stops.
 On the other hand, the material waiting to flow through the
facility not always represents a cost to avoid. As stock
sometimes provides safety to protect production, improving
customer service, allowing more economic batches, etc.
 It’s necessary then to consider space for the required stock at the
facility when designing the layout.
 Resting time to cool down or heating up…

8 categories:
 Auxiliary Services
 Support the main production activities at the plant:
 Related to labor: Accessibility paths, fire protection installations,
supervision, safety, etc.
 Related to material: quality control.
 Related to machinery: maintenance and electrical and water lines.
 The auxiliary services represent around 30% of the space at a
facility.
 The space dedicated to auxiliary services is usually considered
as waste.
 It’s important to have efficient services to insure that their indirect
costs have been minimized.

8 categories:
 The building
 If it has been already selected, its characteristics will be a
constraint at the moment of designing the layout, which is
different if the building has to be built.
 Future changes
 One of the main objectives of plant layout is flexibility.
 It’s important to forecast the future changes to avoid having an
inefficient plant layout in a short term.
 Flexibility can be reached keeping the original layout as free as
possible regarding fixed characteristics, allowing the adjustment
to emergencies and variations of the normal process activities.
 Possible future extensions of the facility must be taken into
account, as well as the feasibility of production during re-layout.

Types of Plant Layout
 The production process normally determines the type
of plant layout to be applied to the facility:
 Fixed position plant layout
 Product stays and resources move to it.
 Product oriented plant layout
 Machinery and Materials are placed following the
product path.
 Process oriented plant layout (Functional Layout).
 Machinery is placed according to what they do and
materials go to them.
 Cell Layout
 Hybrid Layout that tries to take advantage of different
layouts types.

Product Oriented LayOut
Camiones
Camiones
Espuela de Ferrocarril

 Product oriented plant layout
 This type of plant layout is useful when the production
process is organized in a continuous or repetitive way.
 Continuous flow: The correct operations flow is reached through
the layout design and the equipment and machinery
specifications.
 Repetitive flow (assembly line): The correct operations flow will
be based in a line balancing exercise, in order to avoid
problems generated by bottle necks.
 The plant layout will be based in allocating a machine as
close as possible to the next one in line, in the correct
sequence to manufacture the product.

 Product oriented plant layout
 Advantages:
 Reduced material handling activities.
 Work In Process almost eliminated.
 Minimum manufacturing time.
 Simplification of the production planning and control systems.
 Tasks simplification.
 Disadvantages:
 No flexibility in the production process.
 Low flexibility in the manufacturing times.
 High capital investment.
 Every workstation is critical to the process.- The lack of
personnel or shut down of a machine stops the whole process.
 Monotonous work.

a) Flujo en línea recta
b) Flujo en “U”
c) Flujo en serpentín
d) Flujo en “L”
d) Flujo circular ó en “O”
e) Flujo en “S”

Process layout
Espuela de Ferrocarril
Camiones
Camiones
Recepción
Fresadoras
Almacén
Materia Prima
Planeación
Maquinaria
Automática
Tornos
Esmeriladoras
Inspección
Ensamble
Almacén
Producto
Acabado
Embarque

 Process oriented plant layout (Functional Layout)
 This type of plant layout is useful when the production
process is organized in batches.
 Personnel and equipment to perform the same function are
allocated in the same area.
 The different items have to move from one area to another
one, according to the sequence of operations previously
established.
 The variety of products to produce will lead to a diversity of
flows through the facility.
 The variations in the production volumes from one period to
the next one (short periods of time) may lead to
modifications in the manufactured quantities as well as the
types of products to be produced.

Product
Flow
P-Q Analysis
Diagram activity relationships
Chart relationship (flow, functional)
Establish space requirements Space Availability
Diagram space relationships
Practical Limitations
Maintenance
QC
Mat. Handling
Space Availability
Project Project Project
A B C
Evaluate alternative arrangements
Detail selected layout, install
INSTALACION
Definition
Analysis
Synthesis
Evaluation
Selection
Implementation
Adjustment
SLP Method
Muther (1973)

Cellular Layout
Process (Functional) Layout Group (Cellular) Layout
Similar resources placed
together
Resources to produce similar
products placed together
T T T
M
M M T
M
SG CG CG
SG
D D D
D
T T T CG CG
T T T SG SG
M M D D D
M M D D D
A cluster
or cell

 Work cells
 Definition:
 Group of equipment and workers that perform a sequence of
operations over multiple units of an item or family of items.
 Looks for the advantages of product and process
layouts:
 Product oriented layout: Efficiency
 Process oriented layout: Flexibility
 Group Technology
 Grouping outputs with the same characteristics to families, and
assigning groups of machines and workers for the production of
each family.

Plant Layout for a Service Business
 Most of the concepts and techniques explained here
can be applied to any plant layout, including services.
 Examples: Line Balancing for Restaurant self-services;
Process oriented layout for Hospitals.
 Service Businesses have a more direct customer
focus:
 Sometimes, the customer is required at the facility for the
company to be able to perform the service.
 Frequently, the layout is focused on the customer satisfaction
than on the operation itself.
 Some of the objectives include comfortability during the
performance of the service, as well as making attractive
those areas in direct contact with the customer.

 Service Businesses have a more direct customer
focus:
 The customer, with his/her presence, creates the work flow.
 The workload forecast and the activities planning is not as
accurate as it is in a manufacturing environment.
 Queues:
 Seasonal and heterogeneous demand: execution time can be
variable.
 Services are intangible: adjustment between demand and production
can not be done through inventory management.
 Queues are formed by people: higher implications for the layout.

 Plant layout for an office:
 The material that flows among departments and workstations
is basically information. This can be done through:
 Individual conversations face to face.
 Individual conversations through telephone or computer.
 Mail and other physical documents.
 Electronic mail.
 Meetings and discussion groups.
 Interphones.
 The layout solution is dictated by workers and physical
documentation movements.

 Plant layout for a commerce:
 Objective: Maximize the net benefit per m2 of shelves.
 If sales are directly related to the exposition of products to the
customer, the objective will consist of exposing as many
products as possible to the customers in the available space.
 This has to take into account to leave enough space for the
movement among shelves, not making the layout uncomfortable
for the customer.
 Aspects:
 Allocation of daily consumption products at the periphery.-
Allocation of impulsive purchase and high profit margin products
in prominent places.
 Eliminate aisles that allow the customers to go from one row to
other without going through them completely.

 Plant layout for a commerce:
 Aspects:
 Global organization of the available space:
 Allocation of attraction products on both sides of a row, and
dispersion of them to increase the exposition of adjacent products.
 Use the end of a row as a place for exposition.
 Creation of the business image through a careful selection of the first
section where the customers are getting into the facility.
 Allocation of products in the exposition areas:
 This aspect remains within the commercial function. It is called
merchandising.

Cafetería
Cafetería
 Three Retail Layout Patterns
 Grid
 Rectangular with parallel
aisles; formal; controls
traffic flow; uses selling
space efficiently.
 Free-Form
 Free-flowing; informal;
creates "friendly"
environment; flexible.
 Boutique
 Divides store into a series
of individual shopping
areas, each with its own
theme; unique shopping
environment.

Plant Layout for a Warehouse
 Objective: Optimal relationship between space and material handling costs.
 Aspects to be considered: cubic space utilization, storing equipment and methods,
material protection, allocation of different parts, etc.
 A warehouse layout is more complicated when:
 The different customer orders take into account a high number of references.
 There are frequent orders of low number of units for the same product.
 In this cases, the material handling costs for each roundtrip move would be excessively high.
 Solutions for this problem: Aggregation of units for several orders, or establishment of
optimal routes for each order.
Click to add title
Zones Zones Control
station Shipping
doors
Tractor
trailer
Tractor
trailer
Overflow
Feeder
lines
Feeder
lines

 Process oriented plant layout
 It’s essential to design a flexible plant layout, taking into
account as well the need of flexibility for the material
handling equipment to be used.
 Main disadvantage of this layout:
 Low operations and material handling efficiency when
comparing to a plant layout oriented to the product.
 On the other hand, technology development is facilitating
getting over this disadvantage (i.e.- CNC Equipment).
 Analysis
 Decision to be made: Relative location of the different working
areas (same type of equipment).
 Criteria: reduction of distance and material handling costs:
Increase of operations efficiency.

 Analysis
 If it exists a clear material flow that carries out more volume
than anyone else, the layout could be similar to a Product
oriented plant layout.
 The main factor for the analysis is the material handling and
transportation costs among the different working areas.
 Sometimes, quantitative information relative to material handling
flows is not available, or it’s not the main factor to be
considered, being the qualitative factors the most important
ones in this case.

 Analysis
 Process:
 Information gathering.
 Plan development.
 Quantitative criteria: transportation costs.
 Qualitative criteria: closeness priorities.
 Information gathering
 We have to know the space requirements by working area.
 Demand forecast – production plan – working hours – number of
workers and equipment.
 Consider demand and production fluctuations.

 Analysis
 Working area space.
 Static area (Se): Physical space for equipment and
workstations.
 Gravitation area (Sg): Allocation of tools and materials.
Area where operators develop their work.
 Evolution area (Sv): Space to allow operators and
material movements.
St=Se+Sg+Sv
Sg=Se*n Sv=(Se+Sg)*k
n=number of accessible sides k=industry coefficient (0,05-3)

 Analysis
 Available space.
 Total available area at the plant.
 Divide the area at a first approach to estimate each
section.
 When performing the detailed layout, it’s required to have
more accurate shapes adjusted to the reality.
 When the objective is the reduction of material handling
costs, we can solve the problem in quantitative terms:
 It’s required to know the material flow among departments
or areas, distances among them and means of
transportation.

 Analysis
 When the objective is the reduction of material handling
costs, we can solve the problem in quantitative terms:
 Traffic intensity matrix: Number of material handling
moves among departments (information provided by
historical data, route sheets and production plans).
 Distance matrix: Distances among areas at the plant and
places where the different working areas could be
allocated.
 Cost matrix: Cost of material transportation.- It depends
on the type of equipment to be used.

 Analysis
 Sometimes, quantitative information is not available, or the
importance of distance among areas depends on qualitative
factors (i.e.- a hospital X-ray room may be close to the
trauma medicine room).
 Plan development
 Once the size of the different areas have been determined,
the next step is to organize the different areas within the
existent facility, or to determine the desired shape for the
facility construction.
 There are multiple possible solutions, so the selected one will
be the a good one that complies with the max. number of
constraints.

P-Q Analysis
Product
Layouts
Fixed
Position
Layouts Mixed Layouts Process Layouts
Quantity
Number of Different Products

WAREHOUSE
DIRTY
EMPTY
BOTTLES
UNCASER
WASHER
QC
EBI
MANUAL
SIGHTING
FILLER/
CROWNER
PASTEURIZER
COMPLEMENTARY ACTIVITIES
BI-DIRCTIONAL TABLE
FGI
MANUAL
SIGHTING
COMPLEMENARY ACTIVITIES
LABELLER
LABELLER
PACKER
PACKER
PALLETIZER
MANUAL PACKING
WAREHOUSE DISTRIBUTOR
CUSTOMERS

 Analysis
 Quantitative criteria: Transportation costs.
 With the information gathered in the previous 3 matrixes, the
objective is to minimize the transportation costs.
 Total Transportation Cost:
 Objective: Finding the combination of dij that minimizes TTC.
 This formula is complicated for common cases, due to the
number of different possibilities (i.e.- for 10 sections, the
alternatives would be 3,628,000).
TTC= ΣΣtij dij cij

 Analysis
 Use of heuristics: Algorithm of basic transposition
 Initial arbitrary layout: base permutation.
 Transportation cost calculation for this layout.
 Generation of all possible permutations among activities,
interchanging the ones in the initial arbitrary layout 2 to 2:
 Transportation cost calculation for each of the generated
permutations: If we get one with a lower cost than the
base, this last one becomes the base permutation and the
process starts again until there is no one with a lower cost.
Number of permutations =(n*(n-1))/2

 Analysis
 In practice, we have to take into account certain constraints
and circumstances that have to be considered, apart from the
quantitative criteria of the transportation costs.
 Once this information is taken into account, the next step will
be to perform the spatial design of the different departments.

 Analysis
 Qualitative criteria: Closeness priorities.
 Technique: Systematic Layout Planning (SLP)
 Closeness priorities have a letter code:

 Detailed layout
 Equipment and machinery layout within each area or
department, getting a detailed layout of installations and all
elements.
 There could appear some issues like scales, elevators, columns,
floor resistance, roof height, etc. not considered in previous
stages, that could make necessary the review of the solution.

 Work cells
 Definition:
 Group of equipment and workers that perform a sequence of
operations over multiple units of an item or family of items.
 Looks for the advantages of product and process
layouts:
 Product oriented layout: Efficiency
 Process oriented layout: Flexibility
 Applies the principles of Groups’ Technology to
Manufacturing:
 Grouping outputs with the same characteristics to families, and
assigning groups of machines and workers for the production of
each family.

 Work cells
Manufacturing:
 Sometimes, these outputs will be final products or services;
some other times, they will need to integrate to a final product.
 In this case, the work cells would need to be located close to the
main production line, to facilitate the assembly of the component at
the moment and place required.
 Real Work Cells: the grouping of workers and equipment is a
fact:
 At the same time as identifying family of products and grouping of
equipment, it’s essential to perform an internal layout of the cell (by
product, by process or a combination of both…generally by product).

 Work cells
Manufacturing:
 Virtual Work Cells: identifying and dedicating certain equipment
to the production of certain families of outputs, but without
grouping them physically within the cell:
 The only issue is the identification of equipment and families of
products, without performing an internal layout of the cell.
 Residual Work Cells: only used when there is a specific item that
has not been associated to any family, or a specialized
equipment can not be included within a work cell due to its
general use.
 Advantages: lower production cost and better supply and
customer service time.

 Work cells
Manufacturing:
 Steps to follow:
 Select product families.
 Determine work cells.
 Detail the work cells’ internal organization or layout.
 Regarding product grouping to be produced at the same work
cell, we need to determine which is the condition that allows
such grouping.
 Once product families are determined, creating a work cell for
each family might be the best solution, although is not always
like that (sometimes it’s even impossible).

 Work cells
Manufacturing:
 Approaches used to identify families and work cells:
 Classification and codification of all items to be manufactured, and
comparison among them to define families. After that, it’s required to
identify the cells and equipment to manufactured those families.
 Creation of work cells by grouping of equipment. In this case, we still
need to define the families.
 Definition of families by similar manufacturing routes. Still pending
the cells’ identification.
 Simultaneous identification of families and cells, based on the
similarity of products and their needs of equipment and vice versa.

 Work cells
Manufacturing:
 A component that does not use all machines within its work cell
can be accepted, as well as a machine that does not process all
components in its group.
 However, it’s essential to avoid that a component or machine
interacts with other machine or component outside of its cell.
 If it’s not possible avoid this situation, the solution will be duplicating
the piece of equipment, or process the item in more than one cell.-
Sometimes a residual cell might be needed to absorb a component
like this or to include a general type of equipment that we can not
duplicate.

 Work cells
Manufacturing:
 In general, the steps to follow to reorganize the layout will be:
 Incompatible equipment must be located in separate cells.
 Each component should be produced only in 1 cell.
 Each type of equipment should be located only in 1 cell.
 Investment in duplicating equipment should be minimized.
 The work cell should be limited to a reasonable size.

Facility Planning - Layout Process.ppt

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Facility Planning - Layout Process.ppt