Operations

Management
Chapter 9
Layout Strategies

Principles of Operations Management, 12e

 Process-Oriented Layout

 Like machines and equipment are

grouped together
 Flexible and capable of handling a
wide variety of products or
services (useful
( where low volume of
production is needed.)
 Scheduling can be difficult and
setup, material handling, and labor
costs can be high
Process-Oriented Layout

Patient A - broken leg

ER
triage Emergency room admissions
room
Patient B - erratic heart
Surgery pacemaker

Laboratories

Radiology ER Beds Pharmacy Billing/exit

Figure 9.3
 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
Process-Oriented Layout
n n

Minimize cost = ∑ ∑ Xij Cij

i=1 j=1

where n = total number of work

centers or departments
i, j = individual
departments
Xij = number of loads
moved from department i to
department j
Cij = cost to move a load
between department i and
 Process Layout Example
Arrange six departments in a factory to
minimize the material handling costs.
Each department is 20 x 20 feet and the
building is 60 feet long and 40 feet wide.
1. Construct a “from-to matrix”
2. Determine the space requirements
3. Develop an initial schematic diagram
4. Determine the cost of this layout
5. Try to improve the layout
6. Prepare a detailed plan
 Process Layout Example
Number of loads per week
Department Assembly Painting Machine Receiving Shipping Testing
(1) (2) Shop (3) (4) (5) (6)

Assembly (1) 50 100 0 0 20

Painting (2) 30 50 10 0

Machine Shop (3) 20 0 100

Receiving (4) 50 0

Shipping (5) 0

Testing (6)

Figure 9.4
 Process Layout Example
Room 1 Room 2 Room 3

Assembly Painting Machine Shop

Department Department Department
(1) (2) (3)

40’

Receiving Shipping Testing

Department Department Department
(4) (5) (6)

Figure 9.5 Room 4 Room 5 Room 6

60’
Process Layout Example
n n

Cost = ∑ ∑ Xij Cij

i=1 j=1

Cost = $50 + $200 + $40

(1 and 2) (1 and 3) (1 and 6)
+ $30 + $50 + $10
(2 and 3) (2 and 4) (2 and 5)
+ $40 + $100 + $50
(3 and 4) (3 and 6) (4 and 5)

= $570
 Process Layout Example
Interdepartmental Flow Graph
100

50 30
1 2 3
20 20
10
50 100

4 5 6
50
Figure 9.6
Process Layout Example
n n

Cost = ∑ ∑ Xij Cij

i=1 j=1

Cost = $50 + $100 + $20

(1 and 2) (1 and 3) (1 and 6)
+ $60 + $50 + $10
(2 and 3) (2 and 4) (2 and 5)
+ $40 + $100 + $50
(3 and 4) (3 and 6) (4 and 5)

= $480
 Process Layout Example
Interdepartmental Flow Graph
30

50 100
2 1 3

10
50 20 50 100

50
4 5 6

Figure 9.7
 Process Layout Example
Room 1 Room 2 Room 3

Painting Assembly Machine Shop

Department Department Department
(2) (1) (3)

40’

Receiving Shipping Testing

Department Department Department
(4) (5) (6)

Figure 9.8 Room 4 Room 5 Room 6

60’
 Process layout

Advantages Disadvantages
• Break down of a • Production planning
machine will not stop and control has to be
the production and can done properly.
be easily handled by
transferring work to
another machine/work • High material handling
station. cost.
• Slowest machine may
not effect the overall
productivity of the • Generally, more floor
organization. area is required.
 Computer Software
 Graphical approach only works for
small problems
 Computer programs are available to
solve bigger problems
 CRAFT
 ALDEP
 CORELAP
 Factory Flow
 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
 Improving Layouts Using
Work Cells

Current layout - workers in

small closed areas.
Cannot increase output
without a third worker and
third set of equipment. Improved layout - cross-trained
workers can assist each other.
May be able to add a third worker
as additional output is needed.

Figure 9.10 (a)

 Improving Layouts Using
Work Cells

Current layout - straight

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

U-shaped line may reduce employee movement

and space requirements while enhancing
communication, reducing the number of
Figure 9.10 (b) workers, and facilitating inspection
 Advantages over Assembly Line

1. because tasks are grouped,

inspection is often immediate
2. fewer workers are needed
3. workers can reach more of the work
area
4. communication is enhanced
 Staffing and Balancing
Work Cells
Determine the takt time

total work time available

Takt time =
units required

Determine the number

of operators required

total operation time required

Workers required =
takt time
 Advantages over Assembly Line

Stephen Hall’s company in Dayton

makes auto mirrors. The major
customer is the Honda plant nearby.
Honda expects 600 mirrors delivered
daily, and the work cell producing the
mirrors is scheduled for 8 hours. Hall
wants to determine the takt time and
the number of workers required.
Staffing Work Cells Example
600 Mirrors per day required
Mirror production scheduled for 8 hours per day
From a work balance chart
total operation time = 140 seconds
60

Standard time required

50

40

30

20

10

0 Assemble Paint Test Label Pack for

shipment
Operations
Staffing Work Cells Example
600 Mirrors per day required
Mirror production scheduled for 8 hours per day
From a work balance chart
total operation time = 140 seconds

Takt time = (8 hrs x 60 mins) / 600 units

= .8 mins = 48 seconds

total operation time required

Workers required =
takt time
= 140 / 48 = 2.91
 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
 Repetitive and Product-
Oriented Layout
“Arrangement of the machines in ONE LINE
depending on the sequence of operations”.
 Materials are fed in the first machine & finished
products comes out of from the last machine.
 In this type of layout, only one product is
produced in an operating area.
 This product must be produced in large
quantities in order to justify the product layout.
 Product-Oriented Layouts
 Fabrication line
 Builds components on a series of machines
 Machine-paced
 Require mechanical or engineering changes
to balance
 Assembly line
 Puts fabricated parts together at a series of
workstations
 Paced by work tasks
 Balanced by moving tasks
Both types of lines must be balanced so that the
time to perform the work at each station is the same
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
Assembly-Line Balancing
 Objective is to minimize the imbalance
between machines or personnel while
meeting required output
 Starts with the precedence
relationships
1. Determine cycle time
2. Calculate theoretical minimum number
of workstations
3. Balance the line by assigning specific
tasks to workstations
 Copier Example
Performance Task Must Follow
Time Task Listed
Task (minutes) Below
A 10 —
B 11 A This means that
C 5 B tasks B and E
cannot be done
D 4 B until task A has
E 12 A been completed
F 3 C, D
G 7 F
H 11 E
I 3 G, H
Total time 66
 Copier Example
Performance Task Must Follow
Time Task Listed
Task (minutes) Below
A 10 —
B 11 A
C 5 B
D 4 B
E 12 A
F 3 C, D 5

G 7 F 10 11
C
3 7
H 11 E
A B F G
I 3 G, H 4
3
Total time 66 12
D
11 I
E H

Figure 9.13
 Copier Example
Performance Task Must Follow 480 available
Time Task Listed mins per day
Task (minutes) Below 40 units required
A 10 —
B 11 A Production time
C 5 B available per day
D 4 CycleB time = Units required per day
E 12 A = 480 / 40
F 3 C, D 5
= 12 minutes per unit
G 7 F 10 11
C
3 7
H 11 E n
Minimum A ∑ TimeB for taskFi G
I 3 G, H 4
number of = i = 1 3
Total time 66 workstations Cycle Dtime
12 11 I
= 66 / 12
E H
= 5.5 or 6 stations
Figure 9.13
 Copier Example
Line-Balancing Heuristics

1. Longest task time Choose the available480 task

available
Performance Task Must Follow
with the longest task time
Time Task Listed mins per day
Task2. Most
(minutes)
following tasksBelow
Choose the available40 task
units required
A 10 —with the largestCycle
numbertimeof= 12 mins
B 11 Afollowing tasksMinimum
C 3. Ranked5 positional BChoose the available
workstations = 5.5 or 6
task for
D weight4 Bwhich the sum of following
E 12 Atask times is the longest
F 3 C, D 5

G 4. Shortest 7 task time FChoose the available

C task
with the
10 shortest
11 task time
3 7
H 11 E
A B F G
I 5. Least number
3 of G, H
Choose the available 4 task 3
Totalfollowing
time 66 tasks with the least number
12
D of
11 I
following tasks
E H
Table 9.4
Figure 9.13
 Copier Example
Performance Task Must Follow 480 available
Time Task Listed mins per day
Task (minutes) Below 40 units required
A 10 — Cycle time = 12 mins
B 11 A Minimum
Station
workstations = 5.5 or 6
C 52 5 B
D 4 C B
E 10 11
12 A 3 7
F A B3 C, D F G
4 3
G 7 F
H 11 D E Station 4 I
I 3 12 G, H 11
Station 6
Total
Stationtime 66
1 E H
Station Station
3 5 Figure 9.14
 Copier Example
Performance Task Must Follow 480 available
Time Task Listed mins per day
Task (minutes) Below 40 units required
A 10 — Cycle time = 12 mins
B 11 A Minimum
C 5 B workstations = 5.5 or 6
D 4 B
E 12 A
F 3 C, D
G 7 F ∑ Task times
Efficiency =
H (actual number ofE workstations) x (largest cycle time)
11
I 3 G, H
= 66 minutes / (6 stations) x (12 minutes)
Total time 66
= 91.7%