FACILITY

LAYOUT
Lesson 8
TOPIC OUTLINE:

Objective of Basic Types of Product versus

Facility Layout Layout Process Layout

Assignment
Cellular Layouts Proximity
Problem
OBJECTIVES:
 A facility layout problem may have many
objectives.
 In the context of manufacturing plants,
minimizing material handling costs is the
most common one.
 Other objectives include efficient utilization
of
 space
 labor
 Eliminate
 bottlenecks
 waste or redundant movement
OBJECTIVES OF FACILITY
LAYOUT
• organization structure
• communication and interaction
Facilitate between workers
• manufacturing process
• visual control

• manufacturing cycle time or

Minimize customer flow time
• investment

• convenience, safety and comfort of

the employees
Provide • flexibility to adapt to changing
conditions
 Process Layout
• Used in a job shop for
a low volume,
BASIC customized products
TYPES OF
LAYOUTS
Product Layout
• Used in a flow shop for
a high volume,
standard products
 Fixed Position Layout
• Used in projects for large
products e.g., airplanes,
ships and rockets
BASIC
TYPES OF Cellular layouts
LAYOUTS • A cell contains a group of
machines dedicated for a
group of similar parts
• Suitable for producing a
wide variety parts in
moderate volume
PRODUCT VS. PROCESS
LAYOUTS
PRODUCT LAYOUT PROCESS LAYOUT

 It is arrangement of machines.  It is a functional grouping of machines.

 Every job visits the machines in the same order.  Different job jumps from one area to another
 This type of layout is suitable for a make-to-stock or differently. Hence, the flow of jobs is difficult to
an assemble-to-stock production environment, as in a perceive.
flow shop where products are standard, demand  This type of layout is suitable for a make-to-order or
stable, and volume of production high. an assemble-to-order production environment, as in a
 Since variety is low, special purpose equipment and job shop where customization is high, demand
workers with a limited skill are needed. fluctuates, and volume of production low.
 Advantage: A product layout provides efficiency.  Since a wide variety of products are produced,
general purpose equipment and workers with varied
skills are needed.
 Advantage: A process layout provides flexibility
PRODUCT VS. PROCESS
LAYOUTS
PRODUCT LAYOUT PROCESS LAYOUT

Inventory: A product layout has a  Inventory: On the other hand, a

low work-in-process inventory and process layout has a high work-in-
high finished goods inventory process inventory and low finished
because production is initiated by goods inventory.
demand forecast.
Material handling: A product
 Material handling: But variable
layout can use automatic guided
vehicles which travels in a fixed path forklifts are suitable for a
path. process layout.
PRODUCT VS. PROCESS
LAYOUTS
PRODUCT LAYOUT PROCESS LAYOUT

Scheduling/line balancing: In Scheduling/line balancing: In

case of a product layout, case of a process layout, jobs arrive
sequencing and timing of product throughout the planning period. A
flow are standard and set when the process layout requires dynamic
line is designed. With a change in scheduling where a new scheduling
demand, a product layout may need decisions is made whenever a new
a new line balancing decision. job arrives.
PRODU
CT
LAYOUT
EXAMP
LE
PROCES
S
LAYOUT
EXAMP
LE
FIXED
POSITION
LAYOUT
 A fixed-position layout is
where the product stays
stationary while workers come
to the product site to build it.
 Fixed-position layouts are
ideal for products that are large,
heavy, or too fragile to move.
CELLULAR
LAYOUTS
 Every cell contains a group of
machines which are dedicated to the
production of a family of parts.
 One of the problems is to identify a
family parts that require the same
group of machines.
 These layouts are also called as group
technology layouts.
SAMPLE OF
LAYOUT
PROBLEM
CELLULAR
LAYOUTS
EXAMPLE
The slide shows a facility in
which three parts A, B, C
flow through the machines.
 A=RM-1-2-4-8-10-Assy
 B=RM-5-7-11-12-Assy
 C=RM-3-6-9-Assy
How to have a more
efficient layout?
 CELLULAR
MACHINES
LAYOUTS EXAMPLE
PARTS
1 2 3 4 5 6 7 8 9 10 11 12
The slide provides the information in a
A X X X X X

B X X X X
matrix form which includes some other parts
D, E, F, G, H.
C X X X
The rows correspond to the parts and
D X X X X X

E X X X
columns to the machines.
F X X X
Just by interchanging rows and columns,

G X X X X
eventually a matrix is obtained where the
H X X X
“X” marks are all concentrated near the
diagonal. This matrix provides the cells. For
example, parts A, D, and F require Machines
1, 2, 4, 8 and 10 which forms a cell.
 CELLULAR
MACHINES LAYOUTS
EXAMPLE
PARTS
1 2 4 3 5 6 7 8 9 10 11 12

A X X X X X  Interchange column 3 and

B X X X X column 4
C X X X

D X X X X X

E X X X

F X X X

G X X X X

H X X X
 CELLULAR
MACHINES LAYOUTS
PARTS
1 2 4 3 5 6 7 8 9 10 11 12 EXAMPLE
A X X X X X  Put row D after row A
D X X X X X

B X X X X

C X X X

E X X X

F X X X

G X X X X

H X X X
 CELLULAR
MACHINES LAYOUTS
PARTS
1 2 4 8 3 5 6 7 9 10 11 12 EXAMPLE
A X X X X X
 Put column 8 after
D X X X X X column 4
B X X X X

C X X X

E X X X

F X X X

G X X X X

H X X X
 CELLULAR
MACHINES LAYOUTS
PARTS
1 2 4 8 3 5 6 7 9 10 11 12 EXAMPLE
A X X X X X  Put row F after row D
D X X X X X

F X X X

B X X X X

C X X X

E X X X

G X X X X

H X X X
 CELLULAR
MACHINES LAYOUTS
PARTS
1 2 4 8 10 3 5 6 7 9 11 12 EXAMPLE
A X X X X X
 Put column 10 after
D X X X X X column 8
F X X X

B X X X X

C X X X

E X X X

G X X X X

H X X X
 CELLULAR
MACHINES LAYOUTS
PARTS
1 2 4 8 10 3 6 9 5 7 11 12 EXAMPLE
A X X X X X
 Arrange other rows: C,
D X X X X X G, B, E, and H
F X X X

C X X X

G X X X X

B X X X X

E X X X

H X X X
CELLUL
AR
LAYOUT
S
EXAMPL
E
ADVANTAGES OF CELLULAR
LAYOUTS
1. Reduced material handling and transit time
2. Reduced setup time
3. Reduced work-in-process inventory
4. Better use of human resources
5. Better scheduling, easier to control and automate
DISADVANTAGES OF
CELLULAR LAYOUTS
1. Sometimes cells may not be formed because of inadequate part
families.
2. Some cells may have a high volume of production and others very
low. This results in poorly balanced cells.
3. When volume of production changes, number of workers are adjusted,
and workers are reassigned to various cells. To cope with this type of
reassignments, workers must be multi-skilled and cross-trained.
4. Sometimes, machines are duplicated in different cells. This increases
capital investment.
 An activity relationship chart is a
graphical tool used to represent
importance of locating pairs of
operations near each other.

ACTIVITY Importance is described using letter

RELATIONSHIP codes defined below:
CHART
• A – absolutely necessary
• E – especially important
• I – important
• O – ordinarily important
• U – unimportant
• X – undesirable
ACTIVITY
RELATIONS
HIP CHART
FROM-TO CHART
 A from-to chart is used to
analyze flow of materials
between departments. The
Punch example below shows distances
Saws Milling Press Drills
in feet. So, the distance between
Saws 18 40 30
Milling 18 38 75
Saws and Drills is 30 feet. The
Punch Press 40 38 22 chart may also show material
Drills 30 75 22 handling trips or cost per
period.
ASSIGNMENT METHOD
 Many methods can be used to solve the facility layout problem. Here we discuss assignment
method to minimize material handling costs.
 Suppose that some machines 1, 2, 3, 4 are required to be in A, B, C, D. The cost of locating
machines to locations are known and shown below. For example, if Machine 2 is located to
location C, the cost is 7 (say, hundred dollars per month).

Location
Machine A B C D
1 10 7 6 11
2 6 4 7 9
3 8 6 5 6
4 9 5 3 12
ASSIGNMENT METHOD
 The problem is to locate the machines to minimize total material handling costs.
 One solution can be (not necessarily and optimal solution) to assign 1, 2, 3, 4 to respectively
C, B, A, D. In such a case total cost is 6+4+8+12=30 hundred dollars per month.

Location
Machine A B C D
1 10 7 6 11
2 6 4 7 9
3 8 6 5 6
4 9 5 3 12
 1. Perform row reductions
• Subtract minimum value in each row from all
other row values
2. Perform column reductions
• Subtract minimum value in each column from all
other column values

ASSIGNMENT 3. Line Test

METHOD • Cross out all zeros in matrix using minimum
number of horizontal & vertical lines. If number
of lines equals number of rows in matrix,
optimum solution has been found, stop.

4. Matrix Modification
• Subtract minimum uncrossed value from all
uncrossed values & add it to all cells where two
lines intersect. Go to Step 3.
 ASSIGNMENT EXAMPLE
Location Row Reduction Column Reduction Line Test
Machines A B C D A B C D A B C D A B C D
1 10 7 6 11 4 1 0 5 2 1 0 4 2 1 0 4
2 6 4 7 9 2 0 3 5 0 0 3 4 0 0 3 4
3 8 6 5 6 3 1 0 1 1 1 0 0 1 1 0 0
4 9 5 3 12 6 2 0 9 4 2 0 8 4 2 0 8

Number lines = 3 <> 4 = number of rows. So, modify matrix

 ASSIGNMENT EXAMPLE
Line Test Modify Matrix Line Test
A B C D A B C D A B C D
2 1 0 4 1 0 0 4 1 0 0 4 # lines = # rows
0 0 3 4 0 0 4 5 0 0 4 5 so, at optimal solution
1 1 0 0 0 0 0 0 0 0 0 0
4 2 0 8 3 1 0 8 3 1 0 8
ASSIGNMENT EXAMPLE
Line Test Location Location
A B C D Machines A B C D Machines A B C D
1 0 0 4 1 1 0 0 4 1 10 7 6 11
0 0 4 5 2 0 0 4 5 2 6 4 7 9
0 0 0 0 3 0 0 0 0 3 8 6 5 6
3 1 0 8 4 3 1 0 8 4 9 5 3 12

Total material handling costs = 22

ACTIVITY 1:
CELLULAR
LAYOUT
 Modify layout efficiently
using the cellular layout
method.
 ACTIVITY 2:
ASSIGNMENT
JOBS METHOD
PERSONS
1 2 3 4  A job has four men
available for work on
A 20 25 22 28 separate jobs. Only one
man work on any one job.
The cost of assigning
B 15 18 23 17 each man to each job is
given in the following
C 19 17 21 24 table. The objective is to
assign men to jobs such as
D 25 23 24 24 the total cost of
assignment is minimum.
END OF LESSON 8
Thank you.