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Cbmec1 M13 Wed

The document discusses optimization of facility layouts to minimize costs and maximize efficiency. It describes characteristics of sub-optimal layouts such as excess inventory and movement. An optimal layout considers flow of movement, materials handling, output needs, and space utilization. It also allows for easy expansion. The document outlines various techniques for designing layouts including templates, sequence analysis, and line balancing.
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0% found this document useful (0 votes)
16 views5 pages

Cbmec1 M13 Wed

The document discusses optimization of facility layouts to minimize costs and maximize efficiency. It describes characteristics of sub-optimal layouts such as excess inventory and movement. An optimal layout considers flow of movement, materials handling, output needs, and space utilization. It also allows for easy expansion. The document outlines various techniques for designing layouts including templates, sequence analysis, and line balancing.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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CBMEC 1

OPERATIONS MANAGEMENT WITH TQM

MODULE 13
Wednesday

FACILITY LAYOUT

Optimization in process layout


 Optimal layout process involves allocating space and arranging equipment and
other physical assets in such a way that the operating costs are minimized and
process efficiencies are maximized.
o At the micro level (within a department) layout changes can and should be
made as and when a need arises.
o At a macro level (company-wide), management should analyze the layout
at least once a year to ensure the changes at the micro level are positively
impacting the overall flow, and make necessary adjustments as needed.
Characteristics of a sub-optimal facility layout:
1) Inventory lying all over the place
2) Pallets have to be displaced to get to other pallets
3) Potential safety violations
4) Excessive movement of inventory and people within the facility
5) Personnel have to walk an additional distance to accomplish their daily tasks
6) Low production and low overall equipment efficiency (OEE)
7) Delays, bottlenecks, inadequate storage locations
8) Material handling constraints
9) Process is tied to one or two important machines or areas within the facility,
resulting in sub-optimal flow
10)Desire to add space as a fast solution
How to develop a lean flow
 To develop a lean flow and to optimize productivity from different areas or
processes that take place in a warehouse, operations layout takes an important
role in the game.
o A good process implemented in an inappropriate layout can cause
problems in both the area and in the overall operation of the warehouse:
 Bottlenecks
 Slow down the productivity
 More mistakes
Sources:
https://courses.lumenlearning.com
https://www.managementstudyguide.com/facility-layout.htm
https://www.inc.com/encyclopedia/facility-layout-and-design.html
 Product losses
 Disorganization

 Analysis of the current process in the area


o To define a good layout, it is necessary, on one hand, to know the global
process of the warehouse, to ensure the operation of the area to be
defined is coherent and adapted to the global process, and on the other
hand, to know the specific and detailed activities of the area where the
layout is going to be defined.
 Before starting to study the plant distribution, it is important to
analyze the defined process and evaluate if it is the appropriate
one:
 Review that all the steps of the process are necessary for its
objective.
 Check if there are tasks without added value.
 Verify if there are tasks where quality and performance can
be improved.
o In all cases, the process must be redefined by removing and modifying all
those aspects that are required to ensure the final process.

 Minimum movements
o It is very common that the process of an area in a warehouse consists of
several steps, it could be seen as a chain of tasks to be performed to
achieve the overall objective of the activity.
 For this reason, the product and the operators must be moved
several times to reach the next step.
o These movements do not provide real value, but are necessary to bring
goods from one station to another.
 Therefore, the objective is to reduce them as much as possible.
o The less movements, both in number and in distance, the less time will be
invested in this necessary task, but with no added value.

 Optimal number of people for the work station


o When defining the plan of a warehouse area, we must know what
equipment will be used to work on it, in terms of volume.
 For this reason, the workload of the zone must be known to define
the team.
o The space for 4 people for one task is not the same that the required one
for 10 people for the same task.

Sources:
https://courses.lumenlearning.com
https://www.managementstudyguide.com/facility-layout.htm
https://www.inc.com/encyclopedia/facility-layout-and-design.html
 It is possible to leave additional place for possible workload peaks,
but the use of more staff than required in a task may be
unproductive for the defined process.
o Furthermore, it is known that performing in a man/hour ratio, work
performed by more people in fewer hours is less productive than its
equivalent with the original number of people working additional hours,
because the flow will be continuous.
 Additionally, using more space for one workspace means less
available space for other areas or tasks that are part of the overall
process.

 Access to the product to be used in the area and its replenishment


o All material used, whether part of the product or auxiliary material, must
have its place in the work area.
 The fact that some material don´t have a defined place in the map
will mean that this material can be found in different places, making
it difficult for the operator to find it easily and, therefore, its search
delays that part of the process (https://www.howdazz.com/how-to-
define-a-layout-to-optimize-operations/).
Design of Facility Layout
 Principles which drive design of the facility layout need to take into the
consideration objective of facility layout, factors influencing facility layout and
constraints of facility layout.
o These principles are as follows:
 Flexibility - facility layout should provide flexibility for expansion or
modification.
 Space utilization - optimum space utilization reduces the time in
material and people movement and promotes safety.
 Capital - capital investment should be minimal when finalizing
different models of facility layout.
Design Layout Techniques
 There are three techniques of design layout and they are as follows:
o Two or three dimensional templates - this technique utilizes development
of a scaled-down model based on approved drawings.
o Sequence analysis - this technique utilizes computer technology in
designing the facility layout by sequencing out all activities and then
arranging them in circular or in a straight line.
o Line balancing - this kind of technique is used for assembly line.

Sources:
https://courses.lumenlearning.com
https://www.managementstudyguide.com/facility-layout.htm
https://www.inc.com/encyclopedia/facility-layout-and-design.html
Factors in determining layout and design
 Ease of future expansion or change
o Facilities should be designed so that they can be easily expanded or
adjusted to meet changing production needs.
 Although redesigning a facility is a major, expensive undertaking not
to be done lightly, there is always the possibility that a redesign will
be necessary,
 Therefore, any design should be flexible.
o Flexible manufacturing systems most often are highly automated facilities
having intermediate-volume production of a variety of products.
 Their goal is to minimize changeover or setup times for producing the
different products while still achieving close to assembly line
(single-product) production rates.

 Flow of movement
o The facility design should reflect a recognition of the importance of smooth
process flow.
 The flow need not be a straight line.
o Parallel flows, U-shaped patterns, or even a zig-zag that ends up with the
finished product back at the shipping and receiving bays can be functional.
 However, backtracking is to be avoided in whatever pattern is
chosen.
o When parts and materials move against or across the overall flow,
personnel and paperwork become confused, parts become lost, and the
attainment of coordination becomes complicated.

 Materials handling
o Company should make certain that the facility layout makes it possible to
handle materials (products, equipment, containers, etc.) in an orderly,
efficient—and preferably simple—manner.

 Output needs
o The facility should be laid out in a way that is conducive to helping the
business meet its production needs.

 Space utilization
o This aspect of facility design includes everything from making sure that
traffic lanes are wide enough to making certain that inventory storage
warehouses or rooms utilize as much vertical space as possible.

Sources:
https://courses.lumenlearning.com
https://www.managementstudyguide.com/facility-layout.htm
https://www.inc.com/encyclopedia/facility-layout-and-design.html
 Shipping and receiving
o Leave ample room for this aspect of operations.
 While space does tend to fill itself up, receiving and shipping rarely
get enough space for the work to be done effectively.

 Ease of communication and support


o Facilities should be laid out so that communication within various areas of
the business and interactions with vendors and customers can be done in
an easy and effective manner.
o Similarly, support areas should be stationed in areas that help them to
serve operating areas.

 Impact on employee morale and job satisfaction


o Some ways layout design can increase morale are obvious, such as
providing for light-colored walls, windows, space.
 Other ways are less obvious and not directly related to the
production process.

 Promotional value
o If the business commonly receives visitors in the form of customers,
vendors, investors, make sure that the facility layout is an attractive one
that further burnishes the company's reputation.
 Design factors that can influence the degree of attractiveness of a
facility include not only the design of the production area itself, but
the impact that it has on, for instance, ease of fulfilling
maintenance/cleaning tasks.

 Safety
o The facility layout should enable the business to effectively operate in
accordance with Occupational Safety and Health Administration guidelines
and other legal restrictions.

Sources:
https://courses.lumenlearning.com
https://www.managementstudyguide.com/facility-layout.htm
https://www.inc.com/encyclopedia/facility-layout-and-design.html

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