Traditional Approaches to Facility Layout Chapter 4 Source for some slides: John S. Usher class notes
Applications • Manufacturing • Healthcare • Service • Restaurants • Banks • Airports • Entertainment • Logistics and Distribution • Ports/Terminals • Distribution Centers
Types of Projects • New Facility • General Re-layout (retrofit) • Expansion due to new product(s) • Expansion due to sales growth in existing products • Re-organization of work areas (evolutionary design) • Outsourcing of logistics capability • Addition of automation technology • Problem elimination • Cost reduction • Product discontinuation
Significance of Facilities Planning • 20-50% of all manufacturing costs are related to material handling • FP can reduce MH costs by 10-30% • Therefore… • 2-15% reductions in overall manufacturing costs could be achieved by effective facilities planning. • Annual productivity would increase 3x more than it has in the past 15 years. • Hard to make similar projections to other areas of our economy • FP continues to be one of the most promising fields
Objectives • Minimize material handling costs • Utilize space efficiently • Utilize labor efficiently • Eliminate bottlenecks • Facilitate communication and interaction between workers, between workers and their supervisors, or between workers and customers • Reduce manufacturing cycle time or customer service time
Objectives (continued) • Eliminate waste or redundant movement • Facilitate the entry, exit, and placement of material, products, or people • Incorporate safety and security measures • Promote product and service quality • Encourage proper maintenance activities • Provide a visual control of operations or activities • Provide flexibility to adapt to changing conditions • Increase capacity
The Nature of FP Objectives • As you can see, there are MANY! • They are conflicting. How? • There are constraints. Can you list some?
The Facility Planning Problem • It is a constrained multi-objective optimization problem with many non-quantifiable costs and benefits. • There is NO OPTIMAL SOLUTION! • The best we can hope for is a “GOOD” solution. • Effective designs must consider all stakeholders • Owners • Customers • Suppliers • Employees • Neighbors
Layout Problems • Design or Optimization?
Facility Design Process • Combination of art and engineering • Many techniques available • Muther’s SLP Approach (1973) • Optimization based approaches • We will focus on the latter
Systematic Layout Planning • Phase I - Determination of the location of the area where departments are to be laid out • Phase II - Establishing the general overall layout • Phase III - Establishing detailed layout plans • Phase IV - Installing the selected layout
Systematic Layout Planning Input Data and Activities 2. Activity Relationships 1. Flow of materials ANALYZE 3. Relationship Chart 4. Space Requirements 5. Space Available 6. Space Relationship Diagram SEARCH 7. Modifying Considerations 8. Practical Limitations 9. Develop Layout Alternatives SELECT 10. Evaluation Source: John S. Usher class notes
Systematic Layout Planning • P Product: Types of products to be produced • Q Quantity: Volume of each part type • R Routing: Operation sequence for each part type • S Services: Support services, locker rooms, inspection stations, and so on • T Timing: When are the part types to be produced ? What machines will be used during this time period?
Special Considerations in Office Layout • Minimizing distance traveled by employees • Permitting flexibility so that the current layout can be changed, expanded or downsized easily • Providing a safe and pleasant atmosphere for people to work in • Minimizing capital and operational costs of the facility
Operations Review • Is the company outgrowing available space? • Is the available space too expensive? • Is the current building not in the proper location? • How will a new office layout affect the organization? • Are office operations too centralized or decentralized? • Does the office structure support the strategic plan? • Is the office layout in tune with the company's image?
Operations Review for MortAmerica, Inc. • Is there a significant increase in mortgage lending operations of MortAmerica, Inc.? • Are the costs of leasing and refurbishing interior space too high? • Is there a problem with the current location? For example: • There is not enough space for expansion • Major attorneys’ offices, other related financial institutions and restaurants, are not located within a reasonable distance of MortAmerica, Inc. • Adequate parking space is not available • Traffic is too congested • Will a change in office location improve business?
SLP for MortAmerica, Inc. • Evaluation • Planning • Site selection • Design and layout
SLP for MortAmerica, Inc. • Review current space utilization • Determine space projections • Determine level of interaction between departments • Identifying special consideration