Chapter 10 – Facility LayoutLearning ObjectivesLearning Objectives – con’tWhat Is Layout Planning?Types of LayoutsProcess LayoutsProcess Layouts – con’tProduct LayoutsProcess vs. Product LayoutsHybrid LayoutsFixed-Position LayoutDesigning Process LayoutsSpecial Cases of Process LayoutsWarehouse LayoutsOffice LayoutsDesigning Product LayoutsDesigning Product Layouts – con’tStep 1: Identify Tasks & Immediate PredecessorsLayout CalculationsLayout Calculations con’tSlide 21Last Layout CalculationOther Product Layout ConsiderationsGroup Technology (CELL) LayoutsProcess Flows before the Use of GT CellsProcess Flows after the Use of GT CellsFacility Layout Across the OrganizationFacility Layout within OM: How it all fits togetherChapter 10 HighlightsChapter 10 Highlights – con’tSlide 31Slide 32Slide 33Slide 34Slide 35Slide 36Slide 37Chapter 10 Homework HintsSample Problem—10.7Sample Problem –10.15© Wiley 2010 1Chapter 10 – Facility LayoutOperations ManagementbyR. Dan Reid & Nada R. Sanders4th Edition © Wiley 2010© Wiley 2010 2Learning ObjectivesDefine layout planning and explain its importanceIdentify and describe different types of layoutsCompare process layouts & product layoutsDescribe the steps involved in designing a process layout© Wiley 2010 3Learning Objectives – con’tDescribe the steps involved in designing a product layoutExplain the advantages of hybrid layoutsDefine the meaning of group technology (cell) layouts© Wiley 2010 4What Is Layout Planning?Layout planning is deciding the best physical arrangement of all resources within a facilityFacility resource arrangement can significantly affect productivityTwo broad categories of operations:Intermittent processing systems – low volume of many different productsContinuous processing systems – high volume of a few standardized products© Wiley 2010 5Types of LayoutsFour basic layout types consisting of:Process layouts - Group similar resources togetherProduct layouts - Designed to produce a specific product efficiently Hybrid layouts - Combine aspects of both process and product layoutsFixed-Position layouts - Product is two large to move; e.g. a building© Wiley 2010 6Process LayoutsProcess layout unique characteristics include:Resources used are general purpose Facilities are less capital intensiveFacilities are more labor intensiveResources have greater flexibilityProcessing rates are slowerMaterial handling costs are higher© Wiley 2010 7Process Layouts – con’tScheduling resources & work flow is more complexSpace requirements are higher© Wiley 2010 8Product LayoutsProduct layout unique characteristics are:Resources are specializedFacilities are capital intensiveProcessing rates are faster Material handling costs are lower Space requirements for inventory storage are lowerFlexibility is low relative to the market© Wiley 2010 9Process vs. Product Layouts Here are the characteristic differences between a process and product layout.© Wiley 2010 10Hybrid LayoutsCombine elements of both product & process layoutsMaintain some of the efficiencies of product layoutsMaintain some of the flexibility of process layoutsExamples: Group technology & manufacturing cellsGrocery stores© Wiley 2010 11Fixed-Position LayoutUsed when product is largeProduct is difficult or impossible to move, i.e. very large or fixedAll resources must be brought to the siteScheduling of crews and resources is a challenge© Wiley 2010 12Designing Process LayoutsStep 1: Gather information:Space needed, space available, identify closeness measuresStep 2: Develop alternative block plans:Using trial-and-error or decision support toolsStep 3: Develop a detailed layout:Consider exact sizes/shapes of departments and work centers including aisles and stairwaysTools like drawings, 3-D models, and CAD software are available to facilitate this process© Wiley 2010 13Special Cases of Process LayoutsA number of unique process layouts require special attention. We will look at two of these:Warehouse layoutsOffice Layouts© Wiley 2010 14Warehouse LayoutsWarehouse Layout Considerations:Primary decision is where to locate each department relative to the dockDepartments can be organized to minimize “ld” totalsDepartments of unequal size require modification of the typical ld calculations to include a calculation of the “ratio of trips to area needed”The usage of “Crossdocking” modifies the traditional warehouse layouts; more docks, less storage space, and less order picking© Wiley 2010 15Office LayoutsOffice Layout Considerations:Almost half of US workforce works in an office environmentHuman interaction and communication are the primary factors in designing office layoutsLayouts need to account for physical environment and psychological needs of the organizationOne key layout trade-off is between proximity and privacyOpen concept offices promote understanding & trustFlexible layouts incorporating “office landscaping” help to solve the privacy issue in open office environments© Wiley 2010 16Designing Product LayoutsDesigning product layouts requires consideration of: Sequence of tasks to be performed by each workstationLogical orderSpeed considerations – line balancing© Wiley 2010 17Designing Product Layouts – con’tStep 1: Identify tasks & immediate predecessorsStep 2: Determine output rateStep 3: Determine cycle timeStep 4: Compute the Theoretical Minimum number of StationsStep 5: Assign tasks to workstations (balance the line)Step 6: Compute efficiency, idle time & balance delay© Wiley 2010 18Step 1: Identify Tasks & Immediate Predecessors© Wiley 2010 19Layout CalculationsStep 2: Determine output rateVicki needs to produce 60 pizzas per hour Step 3: Determine cycle timeThe amount of time each workstation is allowed to complete its tasksLimited by the bottleneck task (the longest task in a process): sec./unit 60units/hr 60sec/min 60x min/hr 60units/hroutput desired sec./day time available)(sec./unit time Cycle hourper pizzasor units/hr, 72sec./unit 50sec./hr. 3600time task bottlenecktime availableoutput Maximum © Wiley 2010 20Layout Calculations con’tStep 4: Compute the theoretical minimum number of stationsTM = number of stations needed to achieve 100% efficiency (every
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