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Ch 9 - Layout Strategy

  1. Introduction (p348)
    1. Layout strategy specifies the location of departments, processes, machines, desks and support services for effective and efficient production.
    2. Objectives
      1. Minimize cost of materials handling
      2. Minimize cost of information flows (face-to-face communications)
      3. Minimize safety risks
      4. Provide flexibility for new products
  2. Process-Oriented Layout   (p356)
    1. Used for low-volume, high-variety production (intermittent process). Each product can have a different sequence of operations.
    2. Examples: general practice law office, machine shop, hospital. See Fig 9.3, p356.  At Arnold Palmer Hospital, no patient room is more than 14 feet from a nursing station (Fig 9.23, p383).
    3. Primary concern: manage varied flow of material and/or people for each product.  See Table 9.1, p349, for primary concern for each layout.
    4. *Process-oriented Layout Technique
      1. Input data
             Number of loads moved between Departments (Fig 9.4, p357)
              Cost to move a load between         Areas (Fig 9.5, p358)
      2. Objective - assign departments to areas so as to minimize material handling cost = å (load) * (cost)
      3. Evaluation of a typical layout (Figure 9.8, p359)
    Area A
    Dept 2      		Area B
    Dept 1      		Area C
    Dept 3 
    Area D
    Dept 4    		 Area E
    Dept 5    		 Area F
    Dept 6

     

    Load     50    100     20     30     50     10     20    100     50 Source:
    Load Matrix, Fig 9.4
    From dept to dept 1-2 1-3 1-6 2-3 2-4 2-5 3-4 3-6 4-5
    From area to area B-A B-C B-F A-C A-D A-E C-D C-F D-E Source:
    Layout, Fig 9.    8
    Cost     1     1     1     2     1     1     2     1     1
    Load * Cost     50    100     20     60     50     10     40    100     50  

    å (load) * (cost) = $480
    Do Assigned HW

  3. Office Layout (p350)
    1. Used to facilitate group work.
    2. Examples: medical office, accounting firm.
    3. Primary concern: minimizing cost of (face-to-face) information flows.
    4. Special case of Process-Oriented Layout.
    5. *Layouts analyzed with the above Process-oriented Layout Technique (II.D)
  4. Retail Layout (p351)
    1. Used to display products to customer.
    2. Examples: department store, supermarket.
    3. Primary concern: exposing customer to products.
    4. Special case of Process-Oriented Layout.
    5. Typical layout rules (p351).
      1. Locate high-draw items around the periphery of the store.
      2. Use end aisle locations because they have high exposure.
      3. *Allocate square feet of floor and/or shelf space to each product so as to maximize profit consistent with full line stocking requirements.
  5. Storage Layout  (p353)
    1. Used to store products for future use.
    2. Examples: distributor, warehouse
    3. Primary concern: minimizing material handling and warehouse space costs.
    4. Special case of Process-Oriented Layout.
    5. *Layouts analyzed with the above Process-oriented Layout Technique (II.D)
  6. Product-Oriented Layout   (p364)
    1. Used for high-volume, low-variety production (continuous or repetitive process). Each product has same sequence of operations.
    2. Examples: TV assembly line, meat packer, insurance claims.
    3. Primary concern: minimizing the number of workstations (this usually results in minimizing the imbalance in idle time, but not necessarily). Please note that this differs slightly from Heizer, p365.
    4. *Product-oriented Layout Technique - Assembly Line Balancing
      1. Input data
               Tasks
                       Task times - times to perform each task
                Precedence relationships - tasks which must be completed before another task can start
              Cycle time - length of time the product is at each work station
      2. Objective - assign tasks to work stations so as to minimize the number of work stations.
      3. Example - electrostatic wing component - p367
        Task Time - t i
        (minutes)        		 Precedence
        Relationship
        A
        B
        C

        D
        E
        F

        G
        H
        I        		 10
        11
          5

          4
        12
          3

          7
        11
          3        		 -
        A
        B

        B
        A
        C,D

        F
        E
        G,H
        Total time 66  

      5. Draw Precedence Diagram - page 367
      6. Heuristic Procedure
        1. Determine Available List - tasks whose precedence relationships are satisfied
        2. Select from the Available List the task with the largest possible time such that for each work station:
                      sum of task times £ cycle time
        3. Update the Available List
        4. Go to step b.
          Available List  Selected Task  Time  Station 
          A A 10 1
          B, E E 12 2
          B, H B 11 3
          C, D, H H 11 4
          C, D
          D
          F          		 C
          D
          F          		 5
          4
          3          		 5
          5
          5
          G
          I          		 G
          I          		 7
          3          		 6
          6
      7. Optimality test
            m - minimum number of work stations
            m = S ti / cycle time      rounded up   (even if less than 0.5)
            m = 66/12 = 5.5 rounded up to 6

        The above heuristic solution with 6 work stations is optimal because it is not possible to have a solution with fewer than m work stations.

        Note: if   S ti / cycle time = 5.2, then   m = 6.
                    Do Assigned HW

  7. Fixed-Position Layout (p348)
    1. Used for large, bulky products.
    2. Examples: ships, buildings and roads.
    3. Primary concern: moving material to the limited storage areas around the site (Table 9.1, p349).
    4. Fixed-position layout uses project management techniques (Ch 3).
  8. Discussion Item (be prepared to discuss during class):
    1. Identify a service that you will produce or manage within the next 5 years.
    2. Explain which of the above layouts you would use to produce that service.
                  (This page was last edited on January 15, 2010 .)