Chapter 5 FacilitiesOperations Management - 5th EditionOperations Management - 5th Edition

Chapter 7

Facilities
Operations
Operations Management
Management -- 55thth Edition
Edition
Roberta Russell & Bernard W. Taylor, III

Copyright 2006 John Wiley & Sons, Inc.

Beni Asllani
University of Tennessee at Chattanooga


Lecture Outline
 Basic Layouts
 Designing Process Layouts
 Designing Service Layouts
 Designing Product Layouts
 Hybrid Layouts

Copyright 2006 John Wiley & Sons, Inc.

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Facility Layout
Arrangement of areas within a facility to:
 Minimize material-handling
costs

 Utilize space efficiently
 Utilize labor efficiently
 Eliminate bottlenecks
 Facilitate communication and
interaction
 Reduce manufacturing cycle
time
 Reduce customer service time
 Eliminate wasted or
redundant movement
 Increase capacity

 Facilitate entry, exit, and
placement of material, products,
and people
 Incorporate safety and security
measures
 Promote product and service
quality
 Encourage proper maintenance
activities
 Provide a visual control of
activities
 Provide flexibility to adapt to
changing conditions

Copyright 2006 John Wiley & Sons, Inc.

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BASIC LAYOUTS
 Process layouts


group similar activities together
according to process or function they
perform

 Product layouts


arrange activities in line according to
sequence of operations for a particular
product or service

 Fixed-position layouts


are used for projects in which product
cannot be moved

Copyright 2006 John Wiley & Sons, Inc.

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Process Layout in Services
Women’s
lingerie

Shoes

Housewares

Women’s
dresses

Cosmetics
and jewelry

Children’s
department

Women’s
sportswear

Entry and
display area

Men’s
department

Copyright 2006 John Wiley & Sons, Inc.

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Manufacturing Process Layout
Lathe Department

L

L

L

L

L

L

L

L

L

L

Milling
Department

Drilling Department

M

M

D

D

D

D

M

M

D

D

D

D

G

G

G

P

G

G

G

P

Grinding
Department
Receiving and
Shipping

Copyright 2006 John Wiley & Sons, Inc.

Painting Department

A

A
Assembly

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A


A Product Layout
In

Out

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Comparison of Product
and Process Layouts
Product
 Description
Description

 Type
Type of
of process
process

 Sequential
arrangement of
activities
 Continuous, mass
production, mainly
assembly

 Product
Product












Demand
Demand
Volume
Volume
Equipment
Equipment

Process

 Functional
grouping of
activities
 Intermittent, job
shop, batch
production,
mainly fabrication
Standardized, made  Varied, made to
to stock
order
 Fluctuating
Stable
 Low
High
 General purpose

Special purpose

Copyright 2006 John Wiley & Sons, Inc.

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Comparison of Product
and Process Layouts
Product
 Workers
Workers
 Inventory
Inventory

 Limited skills
 Low in-process, high
finished goods
 Storage
 Small
Storage space
 Material
Material handling
handling  Fixed path (conveyor)
 Aisles
 Narrow
Aisles
 Scheduling
 Part of balancing
Scheduling

 Layout
Layout decision
decision  Line balancing
 Goal
 Equalize work at each
Goal
station
 Advantage
 Efficiency
Advantage

Copyright 2006 John Wiley & Sons, Inc.

Process
 Varied skills
 High in-process, low
finished goods
 Large
 Variable path (forklift)
 Wide
 Dynamic
 Machine location
 Minimize material
handling cost
 Flexibility

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Fixed-Position Layouts

 Typical of projects
 Equipment, workers,
materials, other
resources brought to the
site
 Highly skilled labor
 Often low fixed
 Typically high variable
costs
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Designing Process Layouts
 Goal: minimize material handling costs
 Block Diagramming



minimize nonadjacent loads
use when quantitative data is available

 Relationship Diagramming



based on location preference between areas
use when quantitative data is not available

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Block Diagramming
 STEPS
 create load summary chart
 quantity in which
 calculate composite (two
material is normally
moved
way) movements
 develop trial layouts
 Nonadjacent load
minimizing number of
 distance farther
nonadjacent loads
than the next block

 Unit load

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Block Diagramming: Example
Load Summary Chart
1

4

2

3

FROM/TO

Department

5

1
2
3
4
5
—

Copyright 2006 John Wiley & Sons, Inc.

DEPARTMENT

1

2
—

3

100
—

60

4
50
200
—

100
50

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5
50
40
—

50
60


Block Diagramming:
Example (cont.)
2
2
1
1

4
3
2
3
1
1

3
4
3
2
5
5
5
4
4
5

200 loads
150 loads
110 loads
100 loads
60 loads
50 loads
50 loads
40 loads
0 loads
0 loads

Nonadjacent Loads:

110+40=150
0
110

1

4

100

2

150
200

150 200
50 5050 40 60
110
50
60

3
5

5

40

Grid 2
1

Copyright 2006 John Wiley & Sons, Inc.

3
4

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Block Diagramming:
Example (cont.)
(a) Initial block diagram

1

(b) Final block diagram

2

4

3

5

Copyright 2006 John Wiley & Sons, Inc.

1

2

3

4

5

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Relationship Diagramming

 Schematic diagram that
uses weighted lines to
denote location preference
 Muther’s grid


format for displaying
manager preferences for
department locations

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Relationship AEA Absolutely
Absolutelynecessary
necessary

E Especially
Especiallyimportant
important
II Important
Diagramming: Example
Important
O Okay
Production
Offices
Stockroom
Shipping and
receiving
Locker room

O
UU
XX

O
U
A
U
O

A
O
U
O

I

X
O

Okay
Unimportant
Unimportant
Undesirable
Undesirable

E
U

A

Toolroom

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Relationship Diagrams: Example (cont.)
(a) Relationship diagram of original layout

Offices

Stockroom

Locker
room

Toolroom

Copyright 2006 John Wiley & Sons, Inc.

Shipping
and
receiving
Key: A
E
I
Production
O
U
X

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Relationship Diagrams: Example (cont.)
(b) Relationship diagram of revised layout

Stockroom
Shipping
and
receiving

Offices

Toolroom

Production

Copyright 2006 John Wiley & Sons, Inc.

Locker
room

Key: A
E
I
O
U
X

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Computerized layout
Solutions
 CRAFT


Computerized Relative Allocation of Facilities
Technique

 CORELAP


Computerized Relationship Layout Planning

 PROMODEL and EXTEND



visual feedback
allow user to quickly test a variety of scenarios

 Three-D modeling and CAD



integrated layout analysis
available in VisFactory and similar software

Copyright 2006 John Wiley & Sons, Inc.

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Designing Service
Layouts
 Must be both attractive and functional
 Types
 Free flow layouts




Grid layouts





encourage browsing, increase impulse purchasing, are flexible
and visually appealing
encourage customer familiarity, are low cost, easy to clean and
secure, and good for repeat customers

Loop and Spine layouts


both increase customer sightlines and exposure to products,
while encouraging customer to circulate through the entire
store

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Types of Store Layouts

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Designing Product
Layouts

 Objective


Balance the assembly line

 Line balancing


tries to equalize the amount of work at each
workstation

 Precedence requirements


physical restrictions on the order in which operations
are performed

 Cycle time


maximum amount of time a product is allowed to
spend at each workstation

Copyright 2006 John Wiley & Sons, Inc.

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Cycle Time Example

Cd =
Cd =

production time available
desired units of output

(8 hours x 60 minutes / hour)
(120 units)

Cd =

480
120

= 4 minutes

Copyright 2006 John Wiley & Sons, Inc.

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Flow Time vs Cycle Time
 Cycle time = max time spent at any station
 Flow time = time to complete all stations
1

2

3

4 minutes

4 minutes

4 minutes

Flow time = 4 + 4 + 4 = 12 minutes
Cycle time = max (4, 4, 4) = 4 minutes
Copyright 2006 John Wiley & Sons, Inc.

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