INTRODUCTION

Facilities planning has taken on a whole new meaning in the past 10 years. In the
past, facilities planning was primarily considered to be a science. In today’s compet-
itive global marketplace, facilities planning is a strategy. Governments, educational
institutions, and businesses no longer compete against one another individually.
These entities now align themselves into cooperatives, organizations, associations,
and ultimately synthesized supply chains, to remain competitive by bringing the cus-
tomer into the process.
The subject of facilities planning has been a popular topic for many years. In
spite of its long heritage, it is one of the most popular subjects of current publications,
conferences, and research. The treatment of facilities planning as a subject has ranged
from checklist, cookbook-type approaches to highly sophisticated mathematical mod-
eling. In this text, we employ a practical approach to facilities planning, taking advan-
tage of empirical and analytical approaches using both traditional and contemporary
concepts. It should be noted that facilities planning, as addressed in this text, has broad
applications. For example, the contents of this book can be applied equally to the plan-
ning of a new hospital, an assembly department, an existing warehouse, or the bag-
gage department of an airport. Whether the activities in question occur in the context
of a hospital, production plant, distribution center, airport, retail store, school, bank,
office, or any portion of these facilities, or whether in a modern facility in a developed
country or an outdated facility in an emerging country, the material presented in this
text should be useful in planning. It is important to recognize that contemporary facili-
ties planning considers the facility as a dynamic entity and that a key requirement for a
successful facilities plan is its adaptability and its ability to become suitable for new use.

1.1 FACILITIES PLANNING DEFINED

The facilities we plan today must help an organization achieve supply chain excel-
lence. Supply chain excellence is a process with six steps, or levels. These steps are
business as usual, link excellence, visibility, collaboration, synthesis, and velocity.
3
 4
Part One DEFINING REQUIREMENTS

Business as usual is when a company works hard to maximize the individual

functions of the supply chain (buy-make-move-store-sell). The goal of individual
departments, such as finance, marketing, sales, purchasing, information technol-
ogy, research and development, manufacturing, distribution, and human resources,
is to be the best department in the company. Organizational effectiveness is not the
emphasis. Each organizational element attempts to function well within its individ-
ual silo.
Only after one’s link achieves performance excellence can he or she begin to
pursue supply chain excellence. To achieve link excellence, companies must tear
down the internal boundaries until the entire organization functions as one. Compa-
nies usually have numerous departments and facilities, including plants, ware-
houses, and distribution centers (DCs). If an organization hopes to pursue supply
chain excellence, it must look within itself, eliminate and blur any boundaries be-
tween departments and facilities, and begin a neverending journey of continuous
improvement. It must have strategic and tactical initiatives at the department, plant,
and link levels for design and systems.
Supply chain excellence requires everyone along the supply chain to work to-
gether. Everyone in the supply chain cannot work together, however, if they cannot
see one another. Visibility, the third level of supply chain excellence, brings to light
all links in the supply chain. It minimizes supply chain surprises because it provides
the information links needed to understand the ongoing status. It could be consid-
ered the first real step toward supply chain excellence.
Through visibility, organizations come to understand their roles in a supply
chain and are aware of the other links. An example is an electronics company with
a Web site that allows its customers to view circuit boards and then funnels informa-
tion about those customers to suppliers. Visibility thus requires sharing information
so that the links understand the ongoing order status and thus minimize supply
chain surprises.
Once a supply chain achieves visibility, it can move to collaboration, the fourth
level of supply chain excellence. Through collaboration, the supply chain can deter-
mine how best to meet the demands of the marketplace. The supply chain works as
a whole to maximize customer satisfaction while minimizing inventories. Collabora-
tion is achieved through the proper application of technology and true partnerships.
Various collaboration technologies exist, and, as with visibility software, the supply
chain must choose the right technology or combination of technologies if it hopes to
collaborate properly. True partnerships require total commitment from all the links in
the supply chain and are based on trust and a mutual desire to work as one for the
benefit of the supply chain.
After collaboration is in place, the supply chain then must pursue the continu-
ous improvement process of synthesis. Synthesis is the unification of all supply
chain links to form a whole. It creates a complete pipeline from a customer per-
spective. The results of synthesis are as follows:

● Increased ROA. This is achieved by maximizing inventory turns, minimizing

obsolete inventory, maximizing employee participation, and maximizing con-
tinuous improvement.
● Improved customer satisfaction. This is achieved because synthesis creates
companies that are responsive to the customer’s needs through customization.
 5
1 INTRODUCTION

They understand value-added activity. They also understand the issue of flex-
ibility and how to meet ever-changing customer requirements. They com-
pletely comprehend the meaning of high quality and strive to provide high
value.
• Reduced costs. This is achieved by scrutinizing transportation costs, acquisition
costs, distribution costs, inventory carrying costs, reverse logistics costs, pack-
aging costs, and so on and continually searching for ways to drive down the
total delivered-to-customer cost.
• An integrated supply chain. This is achieved by using partnerships and com-
munication to integrate the supply chain and focus on the ultimate customer.

Synthesis is not achieved overnight. It takes time to take the links of a supply chain
and remove the boundaries between them. However, if all links are visible and all
collaborate, then synthesis is within reach.
Velocity is synthesis at the speed of light. Today’s business environment de-
mands speed. The Internet has created immediate orders, and customers expect
their products to arrive almost as quickly. Synthesis with speed creates multilevel
global networks that meet these demands—these are complex entities that can meet
the demands of today’s economy through a combination of partnerships, flexibility,
robust design, and ongoing adaption to marketplace requirements.
Facilities are critical components of the multilevel global networks necessary
for supply chain excellence. Each organization in the supply chain should therefore
plan facilities with its supply chain partners in mind. Proper facilities planning along
the supply chain ensures that the product will follow the supply chain series buy-
make-move-store-sell to the satisfaction of the ultimate customer. Therefore, all fa-
cilities in the supply chain have the following characteristics:
● Flexibility. Flexible facilities are able to handle a variety of requirements with-
out being altered.
● Modularity. Modular facilities are those with systems that cooperate efficiently
over a wide range of operating rates.
● Upgradability. Upgraded facilities gracefully incorporate advances in equip-
ment systems and technology.
● Adaptability. This means taking into consideration the implications of calen-
dars, cycles, and peaks in facilities use.
● Selective operability. This means understanding how each facility segment op-
erates and allows contingency plans to be put in place.
● Environmental and energy friendliness. This involves adopting the process of
leadership in energy and environmental design (LEED). A whole-building ap-
proach to sustainability recognizes performance in five key areas of human
and environmental health: sustainable site development, water savings, energy
efficiency, materials selection, and indoor environmental quality.

Creating these facilities requires a holistic approach. The elements of this ap-
proach are as follows:
● Total integration—the integration of material and information flow in a true,
top-down progression that begins with the customer.
 6
Part One DEFINING REQUIREMENTS

● Blurred boundaries—the elimination of the traditional customer/supplier and

manufacturing/warehousing relationships, as well as those among order entry,
service, manufacturing, and distribution.
• Consolidation—the merging of similar and disparate business entities that
results in fewer and stronger competitors, customers, and suppliers. Consolida-
tion also includes the physical merging of sites, companies, and functions.
• Reliability—the implementation of robust systems, redundant systems, and
fault-tolerant systems to create very high levels of uptime.
• Maintenance—a combination of preventive maintenance and predictive main-
tenance. Preventive maintenance is a continuous process that minimizes fu-
ture maintenance problems. Predictive maintenance anticipates potential
problems by sensing the operations of a machine or system.
• Economic progressiveness—the adoption of innovative fiscal practices that
integrate scattered information into a whole that may be used for decision
making.
In this regard, for a facilities planner, the notion of continuous improve-
ment for supply chain excellence must be an integral element of the facilities
planning cycle. The continuous improvement facilities planning cycle shown in
Figure 1.1 details this concept. Whether you are involved in planning a new fa-
cility or planning to update an existing facility, the process of facilities planning
is unchanged.
Facilities planning determines how an activity’s tangible fixed assets best sup-
port achieving the activity’s objective. For a manufacturing firm, facilities planning
involves the determination of how the manufacturing facility best supports production.
In the case of an airport, facilities planning involves determining how the airport fa-
cility is to support the passenger–airplane interface. Similarly, facilities planning for
a hospital determines how the hospital facility supports providing medical care to
patients.
It is important to recognize that we do not use the term facilities planning as
a synonym for such related terms as facilities location, facilities design, facilities
layout, or plant layout. As depicted in Figure 1.2, it is convenient to divide a facility
into its location and its design components.
The location of the facility refers to its placement with respect to customers,
suppliers, and other facilities with which it interfaces. The location in the context of
the global supply chain must take into consideration global transportation econom-
ics, ports of entry, fuel costs, and the total delivered costs of products to the ultimate
consumer. Also, the location includes its placement and orientation on a specific
plot of land.
The design components of a facility consist of the facility systems, the layout,
and the handling system. The facility systems consist of the structural systems, the
atmospheric systems, the enclosure systems, the lighting/electrical/communication
systems, the life safety systems, and the sanitation systems. The layout consists of all
equipment, machinery, and furnishings within the building envelope; the handling
system consists of the mechanisms needed to satisfy the required facility interactions.
The facility systems for a manufacturing facility may include the envelope (structure
and enclosure elements), power, light, gas, heat, ventilation, air conditioning, water,
 7
1 INTRODUCTION

Specify/update
primary and related
activities to
accomplish objectives

Determine space
requirements for
all activities

What's
the feasibility
Maintain and of incorporating the Determine
continuously Not facility
new operation or
improve facility on Feasible location
existing
site?

Develop alternative
plans and evaluate

Select facilities
plan

Implement plan

Figure 1.1 Continuous improvement facilities planning cycle.

and sewage needs. The layout consists of the production areas, production-related or
support areas, and personnel areas within the building. The handling system consists
of the materials, personnel, information, and equipment-handling systems required
to support production.
Determining how the location of a facility supports meeting the facility’s ob-
jectives is referred to as facilities location. The determination of how the design
components of a facility support achieving the facility’s objectives is referred to as
facilities design. Therefore, facilities planning may be subdivided into the subjects of
facilities location and facilities design. Facilities location addresses the macro-issues,
whereas facilities design looks at the microelements.
The general terms facilities planning, facilities location, facilities design, fa-
cility systems design, layout design, and handling system design are utilized to in-
dicate the breadth of the applicability of this text. In Figure 1.3, the facilities
planning hierarchy is applied to a number of different types of facilities. It is be-
cause of its breadth of application that we employ a unified approach to facilities
planning.
 8
Part One DEFINING REQUIREMENTS

Facilities
location

Facility
Facilities systems
planning design

(Healthcare
providers
Facilities Layout
system)
design design

Handling
system
design

Facilities
location

Facility
Facilities systems
planning design

(Pharmaceutical
supplier)
Facilities Layout
design design

SC level Handling
IV and up system
design

Facilities
location

Facility
Facilities systems
planning design

(Hospital)
Facilities Layout
design design

Handling
system
design

Figure 1.2 Facilities planning as part of supply chain excellence. Continuous improvement
of each operation within each supply chain link takes an organization through the first three
levels of supply chain excellence. To move to levels 4, 5, and 6, the links must collaborate, as
illustrated above, to synthesize their operations and continue to improve the chain.
 9
1 INTRODUCTION

(a)
Plant location

Manufacturing
facilities Plant facility system
planning

Plant design Plant layout

Material handling
(b)
Office location

Office
facilities Office facility system
planning

Office design Office layout

(c) Information handling

Hospital location

Hospital
facilities Hospital facility system
planning

Hospital design Hospital layout

Patient handling
Physician handling
Personnel handling
Public handling
Information handling
(d) Material handling
Emergency room
location

Emergency Emergency facility

room system
planning

Emergency room Emergency room

design layout

Patient handling
Physician handling
Personnel handling
Information handling
Material handling

Figure 1.3 Facilities planning for specific types of facilities. (a) Manufacturing plant.
(b) Office. (c) Hospital. (d ) Emergency room.

1.2 SIGNIFICANCE OF FACILITIES PLANNING

According to the U.S. Census, U.S. businesses invested over a trillion dollars in cap-
ital goods per year for the last five years. Of that money, over 30% was spent on
structures, with over 25% being spent on new structures.
Since 1955, approximately 8% of the gross national product (GNP) has been
spent annually on new facilities in the United States. Table 1.1 indicates the typical
expenditures, in percentage of GNP, for major industry groupings. The size of the
 10
Part One DEFINING REQUIREMENTS

Table 1.1 Percentage of the Gross National Product (GNP) by Industry Grouping
Typically Expended on New Facilities between 1955 and Today
Industry GNP Percentage
Manufacturing 3.2
Mining 0.2
Railroad 0.2
Air and other transportation 0.3
Public utilities 1.6
Communication 1.0
Commercial and other 1.5
All industries 8.0

investment in new facilities each year makes the field of facilities planning important.
As stated previously, contemporary facilities planning must include the notion of
continuous improvement in the design approach. The importance of adaptability, as
a key design criterion, is evidenced by the ever-increasing performance of previously
purchased facilities, which are modified each year and require replanning. For these
reasons, it seems reasonable to suggest that over $300 billion will be spent annually
in the United States alone on facilities that will require planning or replanning.
Although the annual dollar volume of the facilities planned or replanned indi-
cates the scope of facilities planning, it does not appear that adequate planning is
being performed. Based on our collective experience, it appears that there exists a
significant opportunity to improve the facilities planning process as practiced today.
To stimulate your thoughts on the breadth of the facilities planning opportuni-
ties, consider the following questions:
1. What impact does facilities planning have on handling and maintenance costs?
2. What impact does facilities planning have on employee morale, and how does
employee morale impact operating costs?
3. In what do organizations invest the majority of their capital, and how liquid is
their capital once invested?
4. What impact does facilities planning have on the management of a facility?
5. What impact does facilities planning have on a facility’s capability to adapt to
change and satisfy future requirements?
6. What impact does facilities planning have on a facility’s resilience, environ-
mental impact, energy efficiency, and sustainability?
Although these questions are not easily answered, they tend to highlight the
importance of effective facilities planning. As an example, consider the first question.
Between 20 and 50% of the total operating expenses within manufacturing is attrib-
uted to material handling. Furthermore, it is generally agreed that effective facilities
planning can reduce these costs by at least 10 to 30%. Hence, if effective facilities
planning were applied, the annual manufacturing productivity in the United States
would increase approximately three times more than it has in any year in the past
15 years. The impact of facilities planning on distribution centers is even greater
where the proper order picking systems and equipment have been known to reduce
the total cost of the operation by 30%.
It is difficult to make similar projections for the other sectors of our economy.
However, there is reason to believe that facilities planning will continue to be one
 11
1 INTRODUCTION

of the most significant fields of the future. It represents one of the most promising
areas for increasing the rate of productivity improvement.
Economic considerations force a constant reevaluation and recognition of ex-
isting systems, personnel, and equipment. New machines and processes render
older models and methods obsolete. Facilities planning must be a continuing activ-
ity in any organization that plans to keep abreast of developments in its field.
With the rapid changes in manufacturing and distribution systems, techniques,
and equipment that have taken place in the recent past and those that are expected in
the future, very few companies will be able to retain their old facilities or layouts with-
out severely damaging their competitive position in the marketplace. Productivity im-
provements must be realized as quickly as they become available for implementation.
One of the most effective methods for increasing productivity and reducing
costs is to reduce or eliminate all activities that are unnecessary or wasteful. A facil-
ities design should accomplish this goal in terms of material handling, personnel
and equipment utilization, reduced inventories, and increased quality.
If an organization continually updates its operations to be as efficient and ef-
fective as possible, then there must be continuous relayout and rearrangement.
Only in very rare situations can a new process or piece of equipment be introduced
into a system without disrupting ongoing activities. A single change may have a sig-
nificant impact on integrated technological, management, and personnel systems,
resulting in suboptimization problems that can be avoided or resolved only through
the redesign of the facility.
Employee health and safety is an area that has become a major source of mo-
tivation behind many facilities planning studies. In 1970, the Occupational Safety
and Health Act (OSHA) became law and brought with it a far-reaching mandate: “to
assure so far as possible every working man and woman in the nation safe and
healthful working conditions and to preserve our human resources.”
Because the act covers nearly every employer in a business affecting com-
merce that has 10 or more employees, it has had and will continue to have a signif-
icant impact on the structure, layout, and material handling systems of any facility
within its scope. Under the law, an employer is required to provide a place of em-
ployment free from recognized hazards and to comply with occupational safety and
health standards set forth in the act.
Because of these stringent requirements and attendant penalties, it is imperative
during the initial design phase of a new facility or the redesign and revamping of an
existing facility to give adequate consideration to health and safety norms and to elim-
inate or minimize possible hazardous conditions within the work environment.
Equipment and/or processes that may create hazards to workers’ health and
safety must be in areas where the potential for employee contact is minimal. By in-
corporating vital health and safety measures into the initial design phase, the em-
ployer may avoid fines for unsafe conditions and losses in money and human
resources resulting from industrial accidents.
Energy conservation is another major motivation for the redesign of a facility. En-
ergy has become an important and expensive raw material. Equipment, procedures,
and materials for conserving energy are introduced to the industrial marketplace as fast
as they can be developed. As these energy-conserving measures are introduced, com-
panies should incorporate them into their facilities and manufacturing process. Since its
introduction in 2000, LEED has become an important factor in assuring that the envi-
ronmental and energy implications of facilities planning are fully addressed.
 12
Part One DEFINING REQUIREMENTS

These changes often necessitate changes in other aspects of the facility design.
For example, in some of the energy-intensive industries, companies have found it
economically feasible to modify their facilities to use the energy discharged from the
manufacturing processes to heat water and office areas. In some cases, the addition
of ducting and service lines has forced changes in material flows and the relocation
of in-process inventories.
If a company is going to retain a competitive edge today, it must reduce its
consumption of energy. One method of doing this is to modify facilities or redesign
material handling systems and manufacturing processes to accommodate new en-
ergy-saving measures.
Other factors that motivate investment in new facilities or the alteration of ex-
isting facilities are community considerations, fire protection, security, and the
Americans with Disabilities Act (ADA) of 1990. Community rules and regulations re-
garding noise, air pollution, and liquid and solid waste disposal are frequently cited
as reasons for the installation of new equipment that requires modification of facili-
ties and systems operating policies.
One of the most significant challenges to facilities planners today is how to make
the facility “barrier free” in compliance with the ADA. The enactment of this legislation
has resulted in a significant increase in the alteration of existing facilities and has radi-
cally shaped the way facilities planners approach planning and design. The act impacts
all elements of the facility, from parking space allocation and space design, ingress and
egress ramp requirements, and restroom layout to drinking-fountain rim heights. Com-
panies are aggressively spending billions of dollars to comply with the law, and those
involved with facilities planning must be the leaders in pursuing the required changes.
On nearly a daily basis, a search on the Internet will yield a report of a fire that
significantly interrupts a facility’s operation. In many instances, these fires can be at-
tributed to poor housekeeping or poor facilities design. Companies are now care-
fully seeking modifications to existing material handling systems, storage systems,
and manufacturing processes to lower the risk of fire.
Pilferage is yet another major and growing problem in many industries today.
Several billion dollars’ worth of merchandise is stolen annually from companies in
the United States. The amount of control designed into material handling, flow of
materials, and design of the physical facility can help reduce losses to a firm.
Another factor in today’s global supply chain that needs to be taken into con-
sideration is the customization of facilities required when building facilities around
the world. In a recent study of global facility costs, it was concluded that the invest-
ment in a China facility can be as little as 50–60% of a comparable facility in the
United States and can produce a good quality product. The customization has to do
with process modification based upon China’s labor costs, lower construction costs
in China, and savings resulting from lower Chinese equipment purchase prices.

1.3 OBJECTIVES OF FACILITIES PLANNING

As previously mentioned, facilities planning must be done within the context of the
supply chain to maintain a strategic competitive advantage. Just as supply chain
synthesis is driven by customer satisfaction, so too should customer satisfaction be
 13
1 INTRODUCTION

the primary objective of facilities planning. This will ensure that the other objectives
are in alignment with what drives the enterprise, namely revenues and profits from
customers. Many entities lose sight of the importance their customers have to their
existence. Looking at customers as an internal element of the supply chain allows
the focus to sustain itself indefinitely. Too many companies, governmental agencies,
educational institutions, and services become so focused on the other internal ele-
ments and issues that the primary end-customer focus is lost. Many cannot properly
define who their primary end customers are, and they fail as a result. The term busi-
ness-to-business (B2B) should be viewed as B2B2B2B2B2C, with the “C” represent-
ing the customer. By incorporating the primary end customer into the supply chain
and building the communication links and other infrastructure, the primary end cus-
tomer is now a part of the entire supply chain, as it should be. As a result, the facil-
ities planning process will take place with this primary end customer as the focus.
The facilities planning objectives are to
• Improve customer satisfaction by being easy to do business with, conforming
to customer promises, and responding to customer needs.
• Increase return on assets (ROA) by maximizing inventory turns, minimizing
obsolete inventory, maximizing employee participation, and maximizing con-
tinuous improvement.
• Maximize speed for quick customer response.
• Reduce costs and grow the supply chain profitability.
• Integrate the supply chain through partnerships and communication.
• Support the organization’s vision through improved material handling, mate-
rial control, and good housekeeping.
• Effectively utilize people, equipment, space, and energy.
• Maximize return on investment (ROI) on all capital expenditures.
• Be adaptable and promote ease of maintenance.
• Provide for employee safety, job satisfaction, energy efficiency, and environ-
mental responsibility.
• Assure sustainability and resilience.
It is not reasonable to expect that one facility design will be superior to all oth-
ers for every objective listed. Some of the objectives conflict. Hence, it is important
to evaluate carefully the performance of each alternative, using each of the appro-
priate criteria.

1.4 FACILITIES PLANNING PROCESS

The facilities planning process is best understood by placing it in the context of a fa-
cility life cycle. Although a facility is planned only once, it is frequently replanned to
synchronize the facility and its constantly changing objectives. The facilities planning
and replanning processes are linked by the continuous improvement facilities plan-
ning cycle shown in Figure 1.1. This process continues until a facility is torn down.
The facility is continuously improved to satisfy its constantly changing objectives.
 14
Part One DEFINING REQUIREMENTS

Even though facilities planning is not an exact science, it can be approached

in an organized, systematic way. The traditional engineering design process can be
applied to facilities planning as follows:
1. Define the problem.
● Define (or redefine) the objective of the facility. Whether planning a new
facility or the improvement of an existing facility, it is essential that the
product(s) to be produced and/or service(s) to be provided be specified
quantitatively. Volumes or levels of activity are to be identified when-
ever possible. The role of the facility within the supply chain must also
be defined.
● Specify the primary and support activities to be performed in accom-
plishing the objective. The primary and support activities to be per-
formed and requirements to be met should be specified in terms of the
operations, equipment, personnel, and material flows involved. Sup-
port activities allow primary activities to function with minimal inter-
ruption and delay. As an example, maintenance is a support activity for
manufacturing.
2. Analyze the problem.
● Determine the interrelationships among all activities. Establish whether
and how activities interact with or support one another within the
boundaries of the facility and how this is to be undertaken. Both quanti-
tative and qualitative relationships should be defined.
3. Determine the space requirements for all activities. All equipment, material,
and personnel requirements must be considered when calculating space re-
quirements for each activity. Generate alternative designs.
● Generate alternative facilities plans. The alternative facilities plans will
include both alternative facilities locations and alternative designs for the
facility. The facilities design alternatives will include alternative layout
designs, structural designs, and material handling system designs. De-
pending on the particular situation, the facility location decision and the
facility design decision can be decoupled.
4. Evaluate the alternatives.
● Evaluate alternative facilities plans. On the basis of accepted criteria,
rank the plans specified. For each, determine the subjective factors in-
volved and evaluate whether and how these factors will affect the facil-
ity or its operation.
5. Select the preferred design.
● Select a facilities plan. The problem is to determine which plan, if any,
will be the most acceptable in satisfying the goals and objectives of the
organization. Most often, cost is not the only major consideration when
evaluating a facilities plan. The information generated in the previous
step should be utilized to arrive at the final selection of a plan.
6. Implement the design.
● Implement the facilities plan. Once the plan has been selected, a consider-
able amount of planning must precede the actual construction of a facility
 15
1 INTRODUCTION

Understand
external
issues
1B

Understand the Establish facilities Obtain

Implement plans Audit results organization planning design organization's
11 12 model of success criteria commitment
1A 2 3

Obtain support
for improvement Understand
Establish teams
plans internal issues
4
10 1C

Define Evaluate Identify Assess

Identify
improvement alternative alternative present
specific goals
plans approaches approaches status
6
9 8 7 5

Figure 1.4 Winning facilities planning process.

or the layout of an area. Supervising installation of a layout, getting ready

to start up, actually starting up, running, and debugging are all part of the
implementation phase of facilities planning.
● Maintain and adapt the facilities plan. As new requirements are placed
on the facility, the overall facilities plan must be modified accordingly. It
should reflect any energy-saving measures or improved material han-
dling equipment that becomes available. Changes in product design or
mix may require changes in handling equipment or flow patterns that, in
turn, require an updated facilities plan.
● Redefine the objective of the facility. As indicated in the first step, it is
necessary to identify the products to be produced or services to be pro-
vided in specific, quantifiable terms. In the case of potential modifica-
tions, expansions, and so on for existing facilities, all recognized
changes must be considered and integrated into the layout plan.
A novel approach to contemporary facilities planning is the winning facilities
planning process, as shown in Figure 1.4. A more detailed explanation of the win-
ning facilities planning process is shown in Table 1.2.
The model of success referred to in Figure 1.4 presents a clear direction for
where a business is headed. Experience has shown that in order for the facilities plan
to be successful, a clear understanding is needed of not only the vision but also the
mission, the requirements of success, the guiding principles, and the evidence of
success. It is the total of these five elements (vision, mission, requirements of
success, guiding principles, and evidence of success) that forms an organization’s
model of success.
The definitions of these five elements are
1. Vision: A description of where you are headed
2. Mission: How to accomplish the vision
 16
Part One DEFINING REQUIREMENTS

Table 1.2 Explanation of Winning Facilities Planning Process

Step Function Comment
1A Understand the This requires an education program for all levels of an
organization model organization. Understanding an organization’s model of
of success. success is a prerequisite for successful facilities planning.
1B Understand external This requires external outreach via professional society
issues. involvement; participation in trade shows, seminars, and
conferences; and reading magazines and books. A coor-
dinated effort is required if external issues are to be well
understood.
1C Understand internal A winning organization must understand not only the
issues. model of success, but also the organization’s business
plan, resources, and constraints, and the objectives of
the overall supply chain. A prerequisite to winning is
understanding a company’s future.
2 Establish facilities To implement improvements, an organization must have
planning design focus. This step requires that management determine the
criteria. facilities planning design criteria.
3 Obtain organizational Management must make a clear commitment to implement
commitment. the justified improvements consistent with the facilities
planning design criteria. This commitment must be
uncompromised.
4 Establish teams. Teams having a broad-based representation and the ability
to make decisions should be established for each design
requirement. These teams must be uncompromised.
5 Assess present status. This assessment will result in the baseline against which
improvements will be measured. Both quantitative and
qualitative factors should be assessed.
6 Identify specific goals. Identify clear, measurable, time-related goals for each
design criterion––for example, “Reduce raw material
inventory to $300,000 by June 1.”
7 Identify alternative The creative process of identifying alternative systems,
approaches. procedures, equipment, or methods to achieve the spec-
ified goals. The investigation of all feasible alternatives.
8 Evaluate alternative The economic and qualitative evaluation of the identified
approaches. alternatives. The economic evaluation should adhere to
corporate guidelines while estimating the full economic
benefit of pursuing each alternative.
9 Define improvement Based upon the evaluation done in step 8, select the best
plans. approach. Define a detailed implementation and cash
flow schedule.
10 Obtain support for Sell the improvement plans to management. Document the
improvement plans. alternatives, the evaluation, and the justification. Help
management visualize the improved operation.
11 Implement plans. Oversee development, installation, soft load, startup, and
debugging. Train operators and assure proper systems
utilization. Stay with effort until results are achieved.
12 Audit results. Document actual systems operation. Compare results with
the specified goal and anticipated performance. Identify
and document discrepancies. Provide appropriate
feedback.
 17
1 INTRODUCTION

Guiding principles

Requirements
of success

Mission

Vision

Figure 1.5 The model of success “winning circle.”

3. Requirement of Success: The science of your business

4. Guiding Principles: The values to be used while pursuing the vision
5. Evidence of Success: Measurable results that will demonstrate when an organi-
zation is moving toward its vision
To help people understand where their organization is headed, it is often use-
ful to illustrate the first four elements of the model of success in graphical form, as
shown in Figure 1.5. This graphical representation is often called the winning circle
and is viewed as the organization’s bull’s eye.
In Table 1.3, the traditional engineering design process and the winning facil-
ities planning process are compared. The first phases of the facilities planning
process involve either the initial definition of the objectives of a new facility or the
updating of an existing facility. These first phases are undertaken by the people
charged with overall responsibility for facilities planning and management of the
facility.
The second phase of the facilities planning process is assessing the present
status, identifying specific goals, identifying alternative approaches, evaluating alter-
native approaches, defining improvement plans, and obtaining support for im-
provement. The final phase consists of implementing the plans and auditing the
results. In applying the facilities planning concepts, an iterative process is often re-
quired to develop satisfactory facilities plans. The iterative process might involve
considerable overlap, backtracking, and cycling through the analysis, generation,
evaluation, and selection steps of the engineering design process.
At this point, a word of caution seems in order. You should not infer from our
emphasis on a unified approach to facilities planning that the process of replanning
a pantry in a cafeteria is identical to planning a new manufacturing facility. The
scope of a project does affect the intensity, magnitude, and thoroughness of the
study. However, the facility planning process described above and depicted in
Figure 1.6 should be followed.
 18
Part One DEFINING REQUIREMENTS

Table 1.3 Comparison of the Engineering Design Process, Facilities Planning Process,
and Winning Facilities Planning Process
The Engineering The Facilities The Winning Facilities
Phase Design Process Planning Process Planning Process
Phase I Define problem. 1. Define or redefine 1A. Understand the organiza-
objective of the tion model of success.
facility. 1B. Understand external issues.
2. Specify primary and 1C. Understand internal issues.
support activities. 2. Establish facilities planning
design criteria.
3. Obtain organizational
commitment.
Phase II Analyze the 3. Determine the 4. Establish teams.
problem. interrelationships. 5. Assess present status.
Generate 4. Determine space 6. Identify specific goals.
alternatives. requirements. 7. Identify alternative
Evaluate the 5. Generate alternative approaches.
alternatives. facilities plan. 8. Evaluate alternative
Select the 6. Evaluate alternative approach.
preferred facilities plan. 9. Define improvement plans.
design. 7. Select a facilities 10. Obtain support for
plan. improvement plans.
Phase III Implement the 8. Implement the plan. 11. Implement plans.
design. 9. Maintain and adopt 12. Audit results.
the facilities plan.
10. Redefine the
objective of the
facility.

1.5 STRATEGIC FACILITIES PLANNING

While it is true that the concerns of facilities planning are the location and the de-
sign of the facility, there exists another primary responsibility—planning! The im-
portance of planning in facilities planning cannot be overemphasized, for it is this
emphasis that distinguishes the activities of the facilities planner from the facilities
designer and the facilities “locator.”
Dwight D. Eisenhower said, “The plan is nothing, but planning is everything.”
As an indication of its importance in facilities planning, consider the process of
planning and designing a manufacturing facility, building it, and installing and using
the equipment. As shown in Figure 1.7, the costs of design changes increase expo-
nentially as a project moves beyond the planning and designing phases.
The term strategic planning appears to have originated in the military. Web-
ster defines strategy as “the science and art of employing the armed strength of a
belligerent to secure the objects of a war.” Today, the term is frequently used in pol-
itics, sports, investments, and business. Our concern is with the latter usage.
 19
1 INTRODUCTION

1. Define (or 9. Maintain and

redefine) the adapt the
2. objective of facilities plan
Specify the facility
the primary
and support
activities that must
8. Implement the
be performed to
PHASE facilities plan
accomplish the
objective I PHASE
III

3. Determine the
interrelationships 7. Select a facilities
PHASE plan
among all activities
II

4. Determine 6. Evaluate
the space alternative
requirements facilities
5. Generate plans
for all
alternative
activities
facilities
plans

(a)

1. Define 9. Maintain and

(or redefine) adapt the
health needs hospital plan

2. Specify the
medical services 8. Implement the
required to satisfy PHASE hospital plan
health needs I PHASE
III

3. Determine the
interrelationships 7. Select a hospital
PHASE plan
among all services
II

4. Determine 6. Evaluate
the space alternative
requirements hospital
5. Generate plans
for all
alternative
services
hospital
plans

(b)
Figure 1.6 The facilities planning process. (a) General and manufacturing facilities. (b) Hospital
facilities.
 20
Part One DEFINING REQUIREMENTS

Amount ($)

Cost of making
design changes

Planning Designing Building Installing Commissioning

Figure 1.7 Cost of design changes during a project.

Based on Webster’s definition of strategy, business strategies can be defined

as the art and science of employing the resources of a firm to achieve its business
objectives. Among the resources available are marketing resources, manufacturing
resources, distribution resources, and supply chain resources. Hence, marketing
strategies, manufacturing strategies, distribution strategies, and supply chain strate-
gies can be developed to support the achievement of the business objectives.
Recall that facilities planning was defined as determining how a firm’s re-
sources (tangible fixed assets) best support achieving the business objectives. In a
real sense, facilities planning is itself a strategic process and must be an integral part
of overall corporate strategy.
Historically, the development of corporate strategies has been restricted to the
C-level (CEO, CFO, CIO, etc.) in many companies. Furthermore, business strategies
tended to be limited to a consideration of such issues as acquisition, finance, and
marketing. Consequently, decisions were often made without a clear understanding
of the impact on the supply chain or on such support functions as facilities, material
handling, information systems, and purchasing.
As an illustration, suppose an aggressive market plan is approved without the
realization that supply chain capacity is inadequate to meet the plan. Furthermore,
suppose the lead times required to achieve the required capacity are excessive. As a
result, the market plan will fail because the impact of the plan on people, equipment,
and space was not adequately comprehended. A winning facilities plan must consider
integrating all elements that will impact the plan. An example of the accumulating
benefits that can result from integrating operations is shown in Figure 1.8.
Business Week, Industry Week, Time, Fortune, and other business publications
have focused on the competitiveness of America. This attention reflects the growing
awareness in the business community of the importance of improved supply chains
and technology. Wal-Mart, Procter and Gamble, Johnson and Johnson, Dell, and Apple,
 21
1 INTRODUCTION

Because of this, Increase

we can improve the number
customer service of units sold

Because of this,
Because of this, Because of this,
we can invest in
we can produce we can produce
improved, flexible
in smaller a broader line
manufacturing
lot sizes of options
facilities

Because of this, Because of this,

we can reduce we can increase
inventories quality

Because of this,
manufacturing
unit costs
decrease

Figure 1.8 Synergistic benefit of winning manufacturing on an integrated manufacturing-

marketing team.

among others, have expanded the strategic planning process to include the develop-
ment of supply chain strategies. It is from these supply chain strategies that facilities
strategies must be developed, and from these strategies, facilities plans developed.

1.6 DEVELOPING FACILITIES

PLANNING STRATEGIES
The process of effectively translating objectives into actions can take place only if
the power of the individuals inside an organization is unleashed. Team-based im-
plementation of company objectives will ensure that all members of the organiza-
tion are involved in their achievement.
As noted in the previous section, strategies are needed for such functions as
supply chain marketing, manufacturing, distribution, purchasing, facilities, material
handling, and data processing/information systems, among others. It is important to
recognize that each functional strategy is multidimensional. Namely, each must sup-
port or contribute to the strategic plan for the entire organization. Furthermore, each
must have its own set of objectives, strategies, and tactics.
 22
Part One DEFINING REQUIREMENTS

Physical aspects

Control

Time

Figure 1.9 Three dimensions for improvement.

As previously stated, one method used to ensure that the objectives are effec-
tively translated into action is the model of success. The model of success is effec-
tive because it is lateral rather than hierarchical in its approach. With the traditional
top-down approach, only a handful of people are actively involved in ensuring that
the objectives are met by driving these goals and plans into action. The lateral struc-
ture of the model of success communicates to everyone in an organization where
the organization is headed.
The facilities planning process can be improved in a number of ways. Three po-
tential dimensions for improvement are illustrated in Figure 1.9. Suppose the objective
is to increase the size of the box shown. One approach is to make it taller by focusing
on the physical aspects of facilities planning, for example, buildings, equipment, and
people. Another approach is to make the box wider by focusing on control aspects of
facilities planning, for example, space standards, materials control, stock locator sys-
tems, and productivity measures. While it is possible to make the box taller and wider,
we must not overlook the benefits provided by the third dimension: time. To make the
box deeper requires time for planning. The old adage, “There’s never time to do it
right, but there’s always time to do it over,” has been repeatedly demonstrated with re-
spect to facilities planning. Sufficient lead time is needed to do it right!
Another way to improve this process is to do it in the context of supply chain
synthesis, a process that is well defined, integrated, and based on continuous im-
provement for maximized supply chain performance. It also harnesses the energy of
change and has no information delays.
The facilities planning process should also be well defined as to how each
function fits, interacts, and integrates. Otherwise, critical information will be lost or
an important link will be missing, and all will be lost.
The facilities planning process should be integrated and not allow selfishness.
This includes eliminating silos and focusing all functions on customer satisfaction.
To eliminate silos, we synthesize the whole supply chain from its origination point
to the ultimate customer. The result is a focus on continuous improvement.
In the facilities planning process, everyone involved should understand the en-
ergy of change and have a desire to harness this energy for the competitive
advantage of the total pipeline. This involves courage and innovation. By harnessing
change, we can turn it into an asset. Instead of thinking, “I want to improve my func-
tion,” you may have to think, “Tradeoffs might be what are needed to improve the
facilities planning process and create the ideal facility.” The facilities planning process
 23
1 INTRODUCTION

should not accept information delays. It requires true partnerships and an integration
of information. To meet today’s demands for speed, everyone involved in the process
must do the right thing and let everyone else know what they are doing quickly.
Communication is critical, robust, and simultaneous.
Facilities planning should be a continuous improvement process focused on
achieving total performance excellence with the objectives presented earlier. Be-
cause all parties involved in the plan focus on these objectives, facilities planning
excellence will be achieved.
A number of internal functional areas tend to have a significant impact on fa-
cilities planning, including supply chain marketing, product development, manufac-
turing, production and inventory control, human resources, and finance. For
example, facility location will be impacted by the sourcing decision of materials,
and material handling will be affected by decisions related to unit volume, product
mix, packaging, service levels for spares, and delivery times.
Product development and design decisions affect processing and materials re-
quirements, which in turn affect layout and material handling. Changes in materials,
component shapes, product complexity, number of new part numbers and package
sizes introduced (due to a lack of standardization in design), stability of product de-
sign, and the number of products introduced will affect the handling, storage, and
control of materials. Decisions concerning the global supply chain, the degree of
vertical integration, the types and levels of automation, the types and levels of con-
trol over tooling and work-in-process, plant sizes, and general-purpose versus spe-
cial-purpose equipment can affect the location and design of facilities.
Planning and inventory control decisions affect the layout and handling sys-
tem. Lot size decisions, scheduling, in-process inventory requirements, inventory
turnover goals, inventory storage location in the supply chain, and approaches used
to deal with seasonal demand affect the facilities plan.
Human resources and finance decisions related to capital availability, labor
skills and stability, staffing levels, inventory investment levels, organizational design,
and employee services and benefits will impact the size and design of facilities, as
well as their number and location. Space and flow requirements will be affected by
financial and human resources decisions. In turn, they have an impact on the stor-
age, movement, protection, and control of material.
For the facilities plan to support the overall strategic plan, it is necessary for fa-
cilities planners to participate in the development of the plan. Typically, facilities
planners tend to react to the needs defined by others, rather than participate in the
decision making that creates the needs. A proactive rather than a reactive role for fa-
cilities planning is recommended. The model of success approach will ensure that
facilities planners are on board, focusing on the overall direction of the company.
Close coordination is required in developing facilities plans to support the
global supply chain. Manufacturing–facilities planning and distribution–facilities plan-
ning interfaces are especially important. As the manufacturing plan addresses auto-
matic load/unload of machines, robotics, group technology, transfer lines, flexible
manufacturing systems, numerically controlled machines, just-in-time and computer-
integrated manufacturing, alternative storage systems for tooling and work-in-process,
real-time inventory control, shop floor control, and waste handling/removal systems,
the facilities plan must support changes in manufacturing technology. Likewise, the
facilities plan must support a distribution plan that addresses automatic palletizers,
 24
Part One DEFINING REQUIREMENTS

shrinkwrap/stretchwrap, automatic identification, automatic loading and unloading of

vehicles and trailers, automated storage and retrieval of unit loads and small parts,
and automated guided-vehicle systems.
It is also important for the level of manufacturing/distribution technology in
use to be assessed objectively and compared with the state of the art. Five- and 10-
year technology targets should be identified and an implementation plan developed
to facilitate the required evolution.
Developing contingency plans by asking numerous “what-if” questions is
another important element of the process. By asking such questions, an uncer-
tainty envelope can be developed for facility requirements. Also, in translating
market projections to requirements for facilities, it is important to consider learn-
ing-curve effects, productivity improvements, technological forecasts, and site-
capacity limits.
The following 10 issues may have a long-range impact on the strategic facili-
ties plan:
1. Number, location, and sizes of warehouses and/or distribution centers
2. Centralized versus decentralized storage of supplies, raw materials, work-
in-process, and finished goods for single- and multibuilding sites, as well as
single- and multisite companies
3. Acquisition of existing facilities versus design of modern factories and distribu-
tion centers of the future
4. Flexibility required because of market and technological uncertainties
5. Interface between storage and manufacturing
6. Level of vertical integration, including “subcontract versus manufacture” deci-
sions
7. Control systems, including material control and equipment control, as well as
level of distributed processing
8. Movement of material between buildings and between sites, both inbound
and outbound
9. Changes in customers’ and suppliers’ technology as well as a firm’s own man-
ufacturing technology and material movement, protection, storage, and con-
trol technology
10. Design-to-cost goals for facilities

1.7 EXAMPLES OF INADEQUATE PLANNING

Numerous examples exist of situations where inadequate planning was being per-
formed. The following actual situations are presented to illustrate the need for
improved planning.
● A large consumer products company decided to allow each of its acquisitions
to remain independent, thus requiring the management of many duplicate
supply chains. The supply chains consisted of duplicate planning functions,
execution systems, and facility locations. After poor performance, the manage-
ment team soon began to question the rationale of the separate organizations.
 25
1 INTRODUCTION

● A major manufacturer in the Midwest made a significant investment in storage

equipment for a parts distribution center. The selection decision was based on
the need for a “quick fix” to a pressing requirement for increased space utiliza-
tion. The company soon learned that the “solution” would not provide the re-
quired throughput and was not compatible with long-term needs.
● An electronics manufacturer was faced with rapid growth. Management re-
ceived proposals that required approximately equivalent funding for large
warehouses at two sites having essentially the same storage and throughput
requirements. Management questioned the rationale for one “solution” being a
high-rise automated storage/retrieval system (AS/RS) and the other being a
low-rise warehouse with computer-controlled industrial trucks.
● Another firm installed miniload systems at two sites. One system was designed
for random storage, the other for dedicated storage. The storage and through-
put requirements were approximately the same for the two systems; however,
different suppliers had provided the equipment and software. Management
raised the questions: Why are they different? And which is best?
● A textile firm installed a large high-rise AS/RS for one of its divisions. The
amount and size of the product to be stored subsequently changed. Other
changes in technology were projected. The system became obsolete before it
was operational.
● An engine manufacturer was planning to develop a new site. Decisions had
not been made concerning which products would be off-loaded to the new
site, nor what effect the off-load would have on requirements for moving, pro-
tecting, storing, and controlling material.
● An apparel retailer built a new distribution center on the west coast of the
United States for all incoming goods from Asia. A subsequent analysis showed
the use of an all-water route from Vietnam through the Panama Canal into the
east coast of the United States to provide significant cost savings, thus making
the west coast facility obsolete.
● An electronics manufacturer was planning to develop a new site. The facilities
planners and architects were designing the first building for the site. No pro-
jections of space and throughput had been developed since decisions had not
been made concerning the occupant of the building.
● The mission for a major military supply center was changed in order that ad-
ditional bases could be serviced. The throughput, storage, and control require-
ments for the new customers were significantly different from those for which
the system was originally designed. However, no modifications to the system
were funded.
● A manufacturer of automotive equipment acquired the land for a new manu-
facturing plant. The manufacturing team designed the layout, and the architect
began designing the facility before the movement, protection, storage, and
control system was designed.
● An aerospace-related manufacturer implemented cellular manufacturing in its
process planning and converted to manufacturing cells in a machining depart-
ment. No analyses had been performed to determine queue or flow require-
ments. Subsequent analyses showed the manufacturing cells were substantially
less efficient as a result of their impact on movement, protection, storage, and
control of work-in-process.
 26
Part One DEFINING REQUIREMENTS

● An underwear manufacturer moved its product sourcing from China to Thai-

land when Thailand became the low-cost country of production and thus
shifted distribution flows within the United States from west-to-east to east-to-
west due to the utilization of the Suez Canal. The supporting distribution cen-
ters required major renovation that was not considered when the shift to
Thailand was made.
● An established brick-and-mortar retailer began accepting orders through its
Web site. The volume of orders received during the holiday season peak could
not be processed by its distribution center. Gift certificates had to be mailed to
all of the customers whose orders weren’t delivered by Christmas. A study
conducted after the new year showed that poor configuration of storage racks,
ineffective replenishment processes, lack of proper product slotting, and
material handling equipment that could not efficiently process the variety of
the products’ attributes created a situation that forced the entire fulfillment
operation to grind to a halt.
In practically every case, the projects were interrupted and significant delays
were incurred because proper facilities planning had not been performed. These
examples emphasize once more the importance of providing adequate lead times
for planning.
The previous list of examples of inadequate facilities planning could possibly
create a false impression that no one is doing an adequate planning job. Such is not
the case; several firms have recognized the need for strategic facilities planning and
are doing it.
A major U.S. airline developed 10-year and 20-year facilities plans to facilitate
decision making regarding fleet size and mix. Maintenance and support facilities re-
quirements were analyzed for wide-body and mid-sized aircraft. The impact of
route planning, mergers and acquisitions, and changes in market regions to include
international flights were considered in developing the plan.
The airline industry operates in a dynamic environment. Governmental regu-
lations and attitudes toward business are changeable, energy costs and inflationary
effects are significant, and long lead times are required for aircraft procurement. For
new-generation aircraft, an airline company might negotiate procurement condi-
tions, including options, eight years before taking delivery of the airplane.

1.8 SUMMARY
Facilities planning is a process that is dynamic over time. The methodology contin-
ues to change as technology evolves and new approaches are developed. The focus
at the current time is on the customer and the view that all components of a supply
chain must band together to plan the facilities that will successfully support all of
the activities of the supply chain. Facilities planning
● Determines how an activity’s tangible fixed assets should contribute to meeting
the activity’s objectives
● Consists of facilities location and facilities design
 27
1 INTRODUCTION

● Is part art and part science

● Can be approached using the engineering design process
● Is a continuous process and should be viewed from a life-cycle perspective
● Represents one of the most significant opportunities for cost reduction and
productivity improvement
Strategic facilities planning is needed to support competition from a supply
chain-versus to supply chain point of view. No longer is the focus of strategic facil-
ities planning only internal. The focus now is on how our facilities planning process
supports the entire supply chain from basic raw materials to the final customer. If
the facilities planning process does not support the entire supply chain, it is at a dis-
advantage. Other supply chains may be able to leverage themselves into an advan-
tage by focusing on the customer and on the big picture, rather than simply one
location or one company. Moving forward, this focus on the entire supply chain will
grow even stronger, and those companies and those supply chains that do not real-
ize this fact will no longer exist.

REFERENCES
1. CCH Editorial Staff, OSHA Standards for General Industry, Wolters Klower, Washington,
D.C., August 2008.
2. Cullinane, T. P., and Tompkins, J. A., “Facility Layout in the 80’s: The Changing Condi-
tions,” Industrial Engineering, vol. 12, no. 9, pp. 34–42, September 1980.
3. Ganster, S., “Closing the Gap against Low Cost Competition in China,” Technomic Asia,
Shanghai, China, April 2004.
4. Goren, W. D., Understanding the Americans with Disabilities Act, GP Solo, Washing-
ton, D.C., 2007.
5. Haselbach, L., The Engineers Guide to LEED––New Construction, McGraw-Hill, New
York, 2008.
6. Radford, K. J., Strategic Planning: An Analytical Approach, Reston Publishing, Reston,
VA, 1980.
7. Rothschild, W. E., “How to Ensure the Countinued Growth of Strategic Planning,” The
Journal of Business Strategy, vol. 1, no. 1, pp. 11–18, Summer 1980.
8. Tompkins, J. A., Future Capable Company: What Manufacturing Leaders Need to Do
Today to Succeed Tomorrow, Tompkins Press, Raleigh, NC, 2001.
9. Tompkins, J. A., No Boundaries: Break through to Supply Chain Excellence, Tompkins
Press, Raleigh, NC, 2003.
10. Tompkins, J. A., Revolution: Take Charge Strategies for Business Success, Tompkins
Press, Raleigh, NC, 1998.
11. Tompkins, J. A., Winning Manufacturing: The How to Book of Successful Manufacturing,
IIE, Norcross, GA, 1989.
12. Tompkins, J. A., and Harmelink, D., The Supply Chain Handbook, Tompkins Press,
Raleigh, NC, 2004.
13. Tyndall, G., Gapel, C., Partsch, W., and Kamauft, J., Supercharging Supply Chains, John
Wiley & Sons, New York, 1998.
14. White, J. A., “SFP—Strategic Facilities Planning,” Modern Materials Handling, pp.
23–25, November 1978.
15. White, J. A., “Strategic Facility Planning,” Industrial Engineering, vol. 2, no. 9, pp.
94–100, September 1980.
 28
Part One DEFINING REQUIREMENTS

PROBLEMS
SECTION 1.1
1.1 Describe both the planning and operating activities required to conduct a professional
football game from the point of view of the
a. visiting team’s football coach
b. home team quarterback
c. manager of refreshment vending
d. ground crew manager
e. stadium maintenance manager
1.2 List 10 components of a football stadium facility.
1.3 Describe the activities that would be involved in the (a) facilities location, (b) facilities
design, and (c) facilities planning of an athletic stadium. Consider baseball, football,
soccer, and track and field.
1.4 Assume you are on a job interview and you have listed on your resume a career inter-
est in facilities planning. The firm where you are interviewing is a consulting firm that
specializes in problem solving for transportation, communication, and the service in-
dustries. React to the following statement directed to you by the firm’s personnel direc-
tor: “Facilities planning is possibly of interest to a firm involved in manufacturing, but
it is not clear that our customers have needs in this area sufficient for you to pursue
your field of interest.”

SECTION 1.3
1.5 What criterion should be utilized to determine the optimal facilities plan?
1.6 Evaluate the facilities plan for your campus and list potential changes you would con-
sider if you were asked to replan the campus. Why would you consider these?

SECTION 1.4
1.7 Chart the facilities planning process for
a. a bank
b. a university campus
c. a distribution center
d. a consulting and engineering office
1.8 Describe the procedure you would follow to determine the facilities plan for a new li-
brary on your campus.

SECTION 1.6
1.9 Is facilities planning ever completed for an enterprise? Why or why not?
1.10 With the aid of at least three references, write a paper on the industrial engineer and
architect’s roles in the planning of a facility.
1.11 Consider the definition of industrial engineering approved by the Institute of Industrial
Engineers. Discuss the extent to which the definition applies to facilities planning.
1.12 Read three articles on strategic planning, summarize the material, and relate it to strategic
facilities planning.
1.13 Develop a list of strategic issues that must be addressed in performing facilities plan-
ning for
a. an airport
b. a community college
c. a bank
d. a grocery store chain
 29
1 INTRODUCTION

e. a soft drink bottler and distributor

f. a library
g. an automobile dealership
h. a shopping center developer
i. a logistics service provider
j. a professional sports franchise
1.14 Develop a set of responses to the following “reasons” for not doing strategic facilities
planning:
a. There are more critical short-term problems to be solved.
b. The right people internally are too busy to be involved in the project.
c. The future is too hard to predict, and it will probably change anyway.
d. Nobody really knows what alternatives are available and which ones might apply.
e. Technology is developing very rapidly; any decisions we make will be obsolete before
they can be implemented.
f. The return on investment in strategic planning is hard to measure.
1.15 What is the impact of facilities planning on the competitiveness of manufacturing
facilities?
1.16 What are the implications of strategic planning on your personal career planning?
1.17 What are the impacts of automation on facilities planning?
1.18 What are the issues to be addressed in strategic planning for warehousing/distribution?
What are the cost and customer services implications?
1.19 Explain the impacts of the supply chain on facilities planning.
1.20 What are the differences between strategic planning and contingency planning?
1.21 How does the issue of time impact the process of facilities planning?