Layout Strategies

9
PowerPoint presentation to accompany
Heizer and Render
Operations Management, Eleventh Edition
Principles of Operations Management, Ninth Edition

PowerPoint slides by Jeff Heyl

© 2014
© 2014
Pearson
Pearson
Education,
Education,
Inc.Inc. 9-1
 Strategic Importance of Layout
Decisions

The objective of layout strategy

is to develop an effective and
efficient layout that will meet the
firm’s competitive requirements

© 2014 Pearson Education, Inc. 9-2

 Layout Design Considerations
► Higher utilization of space, equipment, and
people
► Improved flow of information, materials, or
people
► Improved employee morale and safer
working conditions
► Improved customer/client interaction
► Flexibility

© 2014 Pearson Education, Inc. 9-3

 Fixed-Position Layout
▶ Product remains in one place
▶ Workers and equipment come to site
▶ Complicating factors
▶ Limited space at site
▶ Different materials
required at different
stages of the project
▶ Volume of materials
needed is dynamic
© 2014 Pearson Education, Inc. 9-4
 Alternative Strategy
▶ As much of the project as possible is
completed off-site in a product-oriented
facility
▶ This can
significantly
improve
efficiency but
is only possible
when multiple
similar units need to be created
© 2014 Pearson Education, Inc. 9-5
 Process-Oriented Layout
▶ Like machines and equipment are
grouped together
▶ Flexible and capable of handling a
wide variety of products or services
▶ Scheduling can be difficult and setup,
material handling, and labor costs can
be high

© 2014 Pearson Education, Inc. 9-6

 Process-Oriented Layout
Surgery ER triage room Emergency room admissions
Patient A - broken leg

Patient B - erratic heart

pacemaker

Laboratories

Radiology ER Beds Pharmacy Billing/exit

Figure 9.3

© 2014 Pearson Education, Inc. 9-7

 Process-Oriented Layout
▶ Arrange work centers so as to minimize
the costs of material handling
▶ Basic cost elements are
▶ Number of loads (or people) moving
between centers
▶ Distance loads (or people) move between
centers

© 2014 Pearson Education, Inc. 9-8

 Work Cells
▶ Reorganizes people and machines
into groups to focus on single
products or product groups
▶ Group technology identifies products
that have similar characteristics for
particular cells
▶ Volume must justify cells
▶ Cells can be reconfigured as designs
or volume changes
© 2014 Pearson Education, Inc. 9-9
 Advantages of Work Cells
1. Reduced work-in-process inventory
2. Less floor space required
3. Reduced raw material and finished goods
inventories
4. Reduced direct labor cost
5. Heightened sense of employee
participation
6. Increased equipment and machinery
utilization
7. Reduced investment in machinery and
equipment
© 2014 Pearson Education, Inc. 9 - 10
 Requirements of Work Cells
▶ Identification of families of products
▶ A high level of training, flexibility and
empowerment of employees
▶ Being self-contained, with its own
equipment and resources
▶ Test (poka-yoke) at each station in
the cell

© 2014 Pearson Education, Inc. 9 - 11

 Improving Layouts Using
Work Cells
Figure 9.9 (a)

Material

Current layout - workers in

small closed areas.

Improved layout - cross-trained

workers can assist each other. May
be able to add a third worker as
additional output is needed.

© 2014 Pearson Education, Inc. 9 - 12

 Improving Layouts Using
Figure 9.9 (b)
Work Cells

Current layout - straight lines

make it hard to balance tasks Improved layout - in U shape,
because work may not be workers have better access.
divided evenly Four cross-trained workers
were reduced.

U-shaped line may reduce employee movement

and space requirements while enhancing
communication, reducing the number of workers,
and facilitating inspection

© 2014 Pearson Education, Inc. 9 - 13

 Focused Work Center and
Focused Factory
▶ Focused Work Center
▶ Identify a large family of similar products
that have a large and stable demand
▶ Moves production from a general-purpose,
process-oriented facility to a large work cell
▶ Focused Factory
▶ A focused work cell in a separate facility
▶ May be focused by product line, layout,
quality, new product introduction, flexibility,
or other requirements

© 2014 Pearson Education, Inc. 9 - 14

 Repetitive and Product-
Oriented Layout
Organized around products or families of
similar high-volume, low-variety products
1. Volume is adequate for high equipment utilization
2. Product demand is stable enough to justify high
investment in specialized equipment
3. Product is standardized or approaching a phase of
life cycle that justifies investment
4. Supplies of raw materials and components are
adequate and of uniform quality

© 2014 Pearson Education, Inc. 9 - 15

 Product-Oriented Layouts
► Fabrication line
► Builds components on a series of machines
► Machine-paced
► Require mechanical or engineering changes to
balance
► Assembly line Both types of lines
►
must
Puts fabricated parts together at be balanced
a series of
workstations so that the time to
perform the work at
► Paced by work tasks each station is the
► Balanced by moving tasks same

© 2014 Pearson Education, Inc. 9 - 16

 Product-Oriented Layouts
Advantages
1. Low variable cost per unit
2. Low material handling costs
3. Reduced work-in-process inventories
4. Easier training and supervision
5. Rapid throughput
Disadvantages
1. High volume is required
2. Work stoppage at any point ties up the whole
operation
3. Lack of flexibility in product or production rates

© 2014 Pearson Education, Inc. 9 - 17

 McDonald’s Assembly Line

Figure 9.11

© 2014 Pearson Education, Inc. 9 - 18

 Assembly-Line Balancing
▶ Objective is to minimize the imbalance
between machines or personnel while
meeting required output
▶ Starts with the precedence relationships
▶ Determine cycle time
▶ Calculate theoretical
minimum number of
workstations
▶ Balance the line by
assigning specific
tasks to workstations
© 2014 Pearson Education, Inc. 9 - 19
 Wing Component Example
TABLE 9.2 Precedence Data for Wing Component
ASSEMBLY TIME TASK MUST FOLLOW
TASK (MINUTES) TASK LISTED BELOW
A 10 – This means that
B 11 A tasks B and E
cannot be done
C 5 B until task A has
D 4 B
been completed

E 11 A
F 3 C, D
G 7 F
H 11 E
I 3 G, H
Total time 65

© 2014 Pearson Education, Inc. 9 - 20

 Wing Component Example
Precedence Data for Wing
TABLE 9.2 Component 480 available mins
TASK MUST
per day
ASSEMBLY TIME FOLLOW TASK 40 units required
TASK (MINUTES) LISTED BELOW
A 10 –
Production time available
B 11 A per day
C 5 Cycle
B time = Units required per day
D 4 B Figure 9.12
= 480 / 40
E 11 A 5
F 3 C, D = 12 minutes per unit
C
10 n
11 3 7
åB Time for task
G 7 F
H 11 E A F i G
Minimum number i=1 4
I 3 G, H
of workstations = 3
11
Cycle
D time
11 I
Total time 65
= 65E/ 12 H
=5.42, or 6 stations
© 2014 Pearson Education, Inc. 9 - 21
 Wing Component Example
Layout Heuristics That May Be Used to Assign Tasks
TABLE 9.3
to Workstations in Assembly-Line Balancing
1. Longest task time From the available tasks, choose the
task with the largest (longest) task time
2. Most following tasks From the available tasks, choose the
task with the largest number of following
tasks
3. Ranked positional From the available tasks, choose the
weight task for which the sum of following task
times is the longest
4. Shortest task time From the available tasks, choose the
task with the shortest task time
5. Least number of From the available tasks, choose the
following tasks task with the least number of subsequent
tasks

© 2014 Pearson Education, Inc. 9 - 22

 Wing Component Example
480 available mins
Figure 9.13 per day
40 units required
Cycle time = 12 mins
Minimum
Station 5 workstations = 5.42 or 6
2
C
10 11 3 7
A B F G
4 3
D Station 3
Station 4 I
11 11
Station 6
Station Station 6
1 E H
Station Station
3 5
© 2014 Pearson Education, Inc. 9 - 23
 Wing Component Example
Precedence Data for Wing 480 available mins
TABLE 9.2 Component per day
TASK MUST
ASSEMBLY TIME FOLLOW TASK
40 units required
TASK (MINUTES) LISTED BELOW Cycle time = 12 mins
A 10 –
Minimum
B 11 A
workstations = 5.42 or 6
C 5 B
D 4 B Figure 9.12
E 11 A 5
F 3 C, D
∑ Task times C
Efficiency
G = 7 F 10 11 3 7

H
(Actual
11
number of
E
workstations)
A B x (Largest cycle
F
time)
G
4
I = 65 minutes
3 / ((6 stations)
G, H x (12 minutes)) 3
D I
Total time 65 11 11
= 90.3%
E H

© 2014 Pearson Education, Inc. 9 - 24

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otherwise, without the prior written permission of the publisher.
Printed in the United States of America.

© 2014 Pearson Education, Inc. 9 - 25