UNIT

07 Facility Layout

Names of Sub-Units

Facility Layout, Factors Influencing Layout Decisions, Principles of Layout, and Computerised Relative
Allocation of Facilities Technique

Overview

The unit begins with an introduction to facility layout. Further, it discusses the factors influencing
layout decisions, principles of layout. The unit also explains the features of ideal layout.

Learning Objectives

In this unit, you will learn to:

 Explain the meaning and definition of facility layout
 Discuss types of layouts
 Understand the features of ideal layout
 Describe the Computerised Relative Allocation of Facilities Technique

Learning Outcomes

At the end of this unit, you would:

 Analyse the meaning of layouts
 Access types of layouts
 Describe the features of ideal layout and computerised relative allocation of facilities technique
JGI JAIN
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Operations Management

Pre-Unit Preparatory Material

 https://www.sciencedirect.com/science/article/pii/S1474667015359280
 https://www.rroij.com/open-access/facility-layout-planning-a-review.php?aid=54291

7.1 INTRODUCTION
The success of operations in an organisation depends on its facility layout design which is necessary
for smooth working and efficiency of operations that dictate the profitability of the company. Facility
location analysis should be carefully considered and planned during the product design and process
selection decisions for minimising material handling within the facility. A good layout acts as a
powerful tool for communicating and creating a positive image with the customers. Facility layouts
have extensive implications on the quality, productivity, and competitiveness of a business enterprise
since these decisions affect the efficiency of the workers, productivity, and the responsiveness of the
system for creating changes in product or service design, the volume of demand, and the product mix.
The facility layout design is critical for the efficiency of operations with minimising material handling
which reduces the mishandling or damaging of products, resulting in a reduction in costs and increasing
profits. The focus of facility layout is to improve the efficiency of the space and time management for
the workers moving from one location to the other and reducing the costs of operations.
The major objective of planning facility layout is maximising sales and profits where market opportunities
are best for them for gaining a competitive advantage. The facility layout planning should eliminate
bottlenecks in the facility to produce more efficiently run operations because the bottleneck results in
reducing the efficiency and effectiveness of the operations. Good facility layout should take into account
the improvement in interaction and communications between the workers and management that result
in improvement in the quality of the output. The other critical factor of the facility design process is to
facilitate reduction of cycle time and processing time that leads to a reduction in the waiting time for
the customers for their product orders. The facility layout design should ensure a smooth and steady
flow of production material, equipment, and manpower along with the safety of their workforce and not
put them at risk while performing their jobs.

7.2 LAYOUT
The physical arrangement of all resources within a facility refers to the layout of the place. Layout
design planning is a critical aspect involved in facilitating the efficient flow of material and customers
through the service or manufacturing system. It involves configuring and arranging the design of the
department within the facility and also the arrangement of other activity centres in each department.
There are many factors involved in designing the layout in terms of direct and indirect costs and other
operational costs. Therefore, it is essential to design a facility where the operations can be carried out
smoothly and cost-effectively. The movement of materials, utilisation of space, safety of the workers,
and more contribute to operational costs. Hence, the main objectives involved with a good layout are:
 Facilitate smooth movement of materials and information
 Identify and reduce bottlenecks and reduce machine interference

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 Better working conditions for the workforce

 Efficiency in the utilisation of equipment and labour
 Make use of available space effectively and efficiently

Organisations need to incorporate various objectives early in the process of layout designing to find
effective solutions for various factors involved with operational management. There should be more on
material handling capabilities and flexibility with the amount of space in the layout.

7.2.1 Meaning and Definition

An effective and good layout provides convenience, safety, comfort, efficiency, and profits for the
company and the success of the business enterprise depends on the location and a good facility layout.
An effective layout contributes to the placement of different machines, resources and production
facilities located in the organisation. The efficiency of the place and system depends on how well the
various amenities and production facilities are located.

In the words of Moore, “Plant or Facility layout is the act of planning an optimum arrangement of
facilities, including personnel, operating equipment, storage space, material handling equipment and
all other supporting services along with the design of the best structure to contain these facilities.”

Poor layout design leads to major losses in regards to wastage and re-working, more efforts for material
handling, badly planned space utilisation, low morale of employees, and more reasons. It is essential
to study and analyse an effective layout design for a plant during the initial planning for growth,
diversification, and development of the plant facility and smooth working of the system.

In the words of James Lundy, “Layout identically involves the allocation of space and the arrangement
of equipment in such a manner that overall operating costs are minimised.”

7.2.2 Objectives of a Good Layout

An effective facility layout should be able to provide ideal coordination between raw material, equipment,
manpower, and final product at minimal cost under a safe and comfortable environment. The focus is
to provide optimum space for the organisation of equipment and facilitate the movement of goods and
create a safe and comfortable work environment.

According to Weiss and Gershon, “Facility layout must be considered very carefully because we do not
want to constantly redesign the facility.” They believed that, “Some of the goals in designing the facility
are to ensure a minimum amount of materials handling, to avoid bottlenecks, to minimise machine
interference, to ensure high employee morale and safety, and to ensure flexibility. Essentially, there are
two distinct types of layout. Product layout is synonymous with the assembly line and is oriented towards
the products that are being made. Process layout is oriented around the processes that are used to
make the products. Generally, product layout is applicable for high-volume repetitive operations, while
process layout is applicable for low-volume custom-made goods.” The objectives of a good layout are:
 Minimum material handling.
 To promote order in production towards a single objective.
 Elimination of bottlenecks.

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 Shorter production cycles and reduction in production delays.

 Improved and better-quality control.
 To increase the production capacity of the organisation.
 Facilitate extension or changes in the layout for accommodating new product line or upgradation
of technology.
 Efficient utilisation of labour.
 High employee morale.
 To promote the safety of the plant as well as its workers.

7.3 FACTORS INFLUENCING LAYOUT DECISIONS

Facility layout designing and implementation are influenced by several factors that vary from industry
to industry influencing the designing of the facility layout. The facility layout design needs to take into
account the overall objectives set by the organisation and management policies that affect the future
direction of the organisation. The designing of the layout accounts for optimum space needed for
the allocation of process and technology with proper safety measures to avoid mishaps. Factors that
influence plant layout decisions are:
1. Management policies: Plant layout decisions are implemented according to various managerial
policies and plans relating to ease of future expansion, size of the plant or facility, future volume of
production, employee facilities, integration of production processes, and other policies related to
sales and marketing, purchasing policies and more.
2. Plant location: The location of the plant or manufacturing unit has a major influence on the layout
of the plant. The layout design is affected by the topography, climatic conditions, size, and shape of
the location for the flow of material and work in and out of the space.
3. Nature of the product: The layout is influenced by the natural product or commodity to be produced.
The product layout is suitable for process industries where the method of production is carried out
in a sequence. Heavy and bulky items require a different kind of layout in comparison to small and
lighter products.
4. Volume of production: The layouts are defined based on the volume of production and system of
production classified as:
 Job production: Where unique, specific, and non-standardised products are produced according
to the orders received from the customers.
 Mass production: Where there is continuous production of standardised products on a large
scale.
 Batch production: Here, similar products are produced in batches based on the demand of
customers or of expected demand for products.
5. Availability of floor space: An important decisive factor in adopting a particular mode of layout is
the floor space. Process layout requires larger space in comparison to product layout. The limitation
of space leads to adopting product layout. On the other hand, more space may lead to the adoption
of process layouts.

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6. Nature of manufacturing process: The type of manufacturing process undertaken by a business

enterprise will greatly affect the type of layout to be undertaken. In the case of the intermittent
type of production, functional layout is suitable and the synthetic type of production line layout is
preferred.
7. Service facilities for employees: The layout should provide adequate services for the comforts
and welfare of the employees. It should have proper provision for restrooms, drinking water, and
a lavatory. There should be sufficient space for the free movement of workers. The layout should
enable the safety of workers, following Occupational Safety and Health Association guidelines and
other legal restrictions.

7.4 PRINCIPLES OF LAYOUT

Good layouts have to be deliberately and carefully planned and worked out so that they provide
maximum benefits and satisfaction to the people involved in a form of senior management, shareholders,
employees, customers, and more. The focus of a good layout is to eliminate the bottlenecks and points of
congestion for faster movement of inventory, raw materials, and semi-finished parts from one point to
another. There needs to be proper utilisation of space and it should provide convenience to the workers.
It is necessary to keep the following principles in mind while designing a good facility layout. Figure 1
shows the principles of layout.

Principle of minimum movement

Principle of the utilisation of space

Principle of flexibility

Principle of interdependence and overall integration

Principle of safety

Principle of Smooth flow

Principle of supervision and employee satisfaction

Figure 1: Principles of Layout

Let us understand these principles in detail.

 Principle of minimum movement: There should be minimum distance movement for material and
labour for saving cost and time of transportation and material handling.

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 Principle of the utilisation of space: The space should be well utilised where there is the minimum
spacing between the machines and movement of people for carrying out all forms of tasks.
 Principle of flexibility: The layout should provide enough flexibility and be adaptable to changes
required for expansion or other forms of technological advancement.
 Principle of interdependence and overall integration: The various departments and units need to
be located near each other for interdependent operations and processes for minimising movement
of product. The various facilities need to be combined and integrated into a single operating unit for
reducing the cost of production.
 Principle of safety: The comfort and safety of the workers should be provided through an inbuilt
provision in the design of the layout.
 Principle of Smooth flow: The design of the facility needs to have a proper plan for reducing work
bottlenecks and for facilitating an uninterrupted flow of work throughout the facility.
 Principle of supervision and employee satisfaction: A good layout should facilitate effective
supervision of the workers through free movement and be able to boost the morale of the workforce
by providing them maximum satisfaction.

7.5 TYPES OF LAYOUT

The formats of a facility layout are established by the general pattern of workflow and the workstations
are arranged accordingly within the facility. The layouts are designed in a way for achieving the right
quantity and quality of output cost-effectively.

The different layout formats can be classified as:

 Process layout
 Product layout
 Fixed-position layout
 Hybrid layout
 Cellular layout

Let us discuss the types of layout in detail.

7.5.1 Process Layout

In process layout, the operations of similar nature are grouped to ensure maximum utilisation of
resources and facilities; the workstations are grouped according to their specialisation. Process
layout is also referred to as job-shop layout, where similar equipment or functions are grouped. The
organisations arrange their facilities with all drill machines located in one area, the lathe machines in
another area, and all milling machines in another area. This form of operation is very apt for the job
and a batch form of manufacturing system where a large range of products is manufactured in smaller
quantities. The advantages of process layout are:

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Figure 2 shows the work travels to dedicated process centre.

Milling

Assembly and Test Grinding

Drilling Plating

Figure 2: Work Travels through Process Centre

 Flexibility in the use of equipment
 Flexibility in the pace of operations does not get affected by changes in the market demand pattern,
product mix, or internal change in marketing strategy
 Requires smaller investment
 Is not affected by machine breakdown or equipment failure
 Higher utilisation of resources
 Lesser interdependence of operations and requires effective specialised supervision
 Eliminates duplication of machines
 Setting up of equipment and maintenance costs are low
 Ensures high morale of workers because of the diversity of tasks

7.5.2 Product Layout

In product or line layout, the resources and activities are arranged according to the processing needs
of a single product, rather than being shared among different types of products. In product layout, the
design is made according to the sequence involved with the manufacturing process, and the materials
get transformed into products through a sequence of integrated operations. The flow of the product has
always been in a straight line or “L, S, or U” line-shaped, and the product does not backtrack towards
the beginning of the line. Product layout is often referred to an assembly line, production line, or flow-
line layout. The product layout design is effective when the design of the product is standardised with a
high demand for the product. The process of the product operations is standardised and repetitive and
the jobs are divided into a series of standard tasks that allow specialisation of labour and equipment.
The use of automatic conveyor belts is done in a straight-line arrangement of layout for handling the

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resources and materials. In product layout, operations take place in predetermined order and it is very
easy to decide where to locate different resource centres. The advantages of product layout are:
 High rate of output because the resources are dedicated to only a specific product.
 Lower inventories with the items moving from one operation to the next without interruption.
 High utilisation of both labour and machines due to simplified flow of work; less time is lost for
unproductive activities.
 There is a division of labour and the jobs can be divided into various standard tasks that can be
carried out by unskilled labour that can be trained.
 Reduced material handling costs with simplified production planning and control.
 Simplified flow of product through the system due to the placement of machines.
 Optimum floor space with less congestion.
 Low cost per manufacturing unit and labour procurement.

7.5.3 Fixed Position Layout

In fixed-position layout, the product stays stationary and the machines, workers, and materials keep on
changing position as required. Many products are very heavy or large and as such are difficult to move,
or can be moved at a high cost, such as aircraft, ships, locomotives, or tanks. The labour, equipment,
and machines are moved to a place where the various manufacturing activities take place. The fixed-
position layout is also referred to as project type layout and it minimises the product movement and the
demand for the product is relatively low. In a fixed-position layout, the focus is normally on the sequence
and schedule of activities, and availability of space. In this type of layout, tasks are arranged according
to their process and sequence requirement, and materials and machines are arranged and scheduled
accordingly. The advantages of fixed-position layout are:
 Cost is minimised and the chance of damage is reduced since there is continuity of the assigned
tasks and the product stays stationary and does not have to be moved from one production centre
to another.
 Requires low investment.

7.5.4 Cellular Layout

A cellular layout is a type of layout where machines are grouped into cells according to the process
requirements for a set of similar items that require similar processing. These groups are called cells and
in cellular layout, the equipment layout is configured to support cellular manufacturing. The processes
are grouped using group technology that identifies parts having similar design characteristics (size,
shape, and function) and similar process characteristics. The workers in cellular layouts are trained
for operating the equipment in the cell and are responsible for the output. The advantages of cellular
layout are:
 Improvement in the flow of material with a reduction in the distance for the inventory.
 Reduction of costs because the processing time is faster, less material handling and work-in-process
inventory, and reduced setup time.

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 Offers increased flexibility because it involves the production of small batches.

 The cellular layout is suitable for batch manufacturing.
 The workers are responsible for their cell’s output and there is more autonomy and job ownership.

7.5.5 Hybrid Layout

The hybrid layout is a combination of process layout, product layout, and fixed-position layout and
its main focus is to take advantage of the good attributes of the process, product, and fixed layout,
while at the same time avoiding their shortcomings. In hybrid layout, a part of the operations is based
on process layout and part on product layout. Several manufacturing organisations are moving away
from pure process layout for taking advantage of low per-unit production costs derived from product
layout. The advantages of hybrid layout are:
 High utilisation contributes to low per-unit production cost.
 Workers have high morale due to various repetitive and simple tasks that are linked with skilled
activities that give them a feeling of accomplishment.
 The groups in the hybrid layout work together to reduce the total number of workstations and the
need to move products from workstation to workstation.
 There is low material handling costs and in-process inventory.

7.5.6 Service Facility Layout

Theservicefacilitylayoutisdesignedinamannerthatbringstogetherthecustomerandtheorganisation’s
services for the convenience of the customers. These facilities are designed with features like the easy
entrance to the facilities from freeways and other kinds of busy thoroughfares with well-organised
parking lots, well-marked entries and exits, powered doors, escalators and lobbies for customers, and
more. A good example of a service facility layout is the banks where the layouts are designed around
customers since these service facility layouts give importance to customer convenience. The service
layouts follow the conventional layouts as required.

7.5.7 Comparison of Product and Process Layouts

The product layout and process layout are two important ways to design the layout of the facility
depending on various factors involved with the manufacturing of different kinds of products. The
important differences between product layout and process layout are:
 The machines are set up systematically in the product layout, where the output of one machine is the
input of another machine. On the other hand, in process layout, the machines are set up in different
locations and a variety of products can be produced by changing the order of the processes.
 The product layout design is suitable for continuous and large-scale production of similar goods.
Whereas process layout is suitable when small scale and altered goods are to be produced, following
the customer’s choice and order.

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 The product layout has lower material handling costs since the output of one machine is the input
of another machine and it does not require any transportation. In process layout, the output of one
machine is the input of another machine, and transportation is required.
 In product layout, inventory is not required for continuing production, whereas in the process
layout, large inventories are required because of discontinuous production.
 In product layout, a small space is needed that is fully utilised because machines are kept one after
another in order. In process layout, large spaces or different locations are required to set up different
departments
 In product layout, the workers do not require any special skills and they can work on any machine.
In process layout, the workers require special skills to operate specific machines.
 The product layout requires minimum supervision and inspection during the sequence of operations.
In process layout, supervision and inspection are carried out several times during the sequence of
operations.
 The processes in product layout are rigid and cannot be expanded or shortened and the process gets
disrupted with the breakdown of the machines due to interconnected systems. In process layout,
there is easy and flexible changing of processes and the breakdown of machines does not affect the
final output
 The product layout is suitable for mass production with less job variety, whereas the process layout
is suitable for moderate production with more job variety.
 The production cost in product layout involves high fixed cost and low variable cost. In the process
layout, there are low fixed costs and high variable costs.

7.5.8 Features of other Layouts

Apart from the above-mentioned layouts, other layouts are very useful for use in various service
organisations like warehouses, retail layouts, storage layouts, and office layouts. Every layout has
certain advantages and limitations and layouts are much simpler for small retail establishments that
take into consideration the presence of customers and the opportunities to influence sales and attitudes
of the customers. Retail chains prefer the advantage of standardised layouts that makes the customers
more familiar with the store during shopping.

In warehouses and the store layout, the items that are ordered more frequently are placed close together
near the entrance of the facility, while those ordered less frequently remain in the rear of the facility.
The layouts for offices are designed in a manner that optimises the physical transfer of information and
there can be better communication using low-rise partitions and glass walls.

Organisations today look towards building smaller and more compact facilities with more automation
and robotics, which has a direct impact on the facility layout. In these situations, the machines are
placed closer to each other for reducing material handling. With the advancement of technology, there
is an increase in automated material handling systems that include automated storage and retrieval
systems (AS/AR) and automated guided vehicles (AGVs). The firms have a preference toward the use
of U-shaped lines that allow workers, supervisors, and material handlers to have a total view of the

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entire line and travel efficiently between the workstations. It has fewer walls and partitions in the
layout to avoid any form of obstructions. With the introduction of lean manufacturing and just-in-time
production, lesser space is required for storage of inventory throughout the layout.

7.6 FEATURES OF IDEAL LAYOUT

The ideal layout provides the framework and master plan required for arranging the departments,
machines, people, and more for a smooth and efficient workflow. The facility layout is needed for
carrying out the operations of the organisation. The characteristics of an ideal layout include:
1. Economising handling with minimum movement: The ideal layout should be cost-effective in
regards to handling the resources, work-in-progress, and finished stock with lesser handling of the
material by making use of conveyors, truck lifts, chutes, and hoists. The layout should be designed
for the minimum movement of people and equipment.
2. Efficient space utilisation: The space is used in an optimum manner for arranging the equipment,
machines, service points, and more where there is no wastage of space.
3. Provide accessibility and flexibility: The ideal layout facility needs to have adequate space between
equipment for manufacturing, maintenance, and servicing that should be available with no
obstructions. This requires easy accessibility of raw materials, machines, and the workforce and
their movement from one place to another without a problem. The layout should be designed in a
manner such that there is flexibility to adapt to changes in methods and processes of production.
4. Effective visibility and preservation of materials and equipment: The ideal layout should have
effective visibility so that there are no problems in terms of oversight and control. The layout must
take care of the safety of the workers and safeguard against fire, theft, and general deterioration
of equipment and materials. There should be proper and secure storage facilities with a system to
store flammable goods separately and safely.
5. Reduction in discomfort: The ideal layout should cater to the comfort of the people and the workers
by providing adequate lighting and ventilation and limiting the impact of heat, noise, vibrations,
and dust.
6. Ensures co-ordination: The ideal facility layout has provisions for effective coordination of tasks
between various departments, equipment, machines, and the workforce.
7. Adherence to statutory regulations: An ideal layout should adhere to the regulations and guidelines
required by the Factories Act for the wellbeing, safety, and welfare of employees to avoid any kind of
accidents or mishaps that result in absenteeism because of illness leading to decreased productivity.

7.7 COMPUTERISED RELATIVE ALLOCATION OF FACILITIES TECHNIQUE

Computerised Relative Allocation of Facilities Technique (CRAFT) is an improvement algorithm which
was developed by Armour and Buffa and is a significant tool and technique used for solving problems
related to layout designing in the manufacturing system. It provides the algorithm for a sequence
needed for the selection of machines and for minimising the total material handling and transportation
costs. The aim of the Computerised Relative Allocation of Facilities Technique (CRAFT) is to design a new

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layout based on certain defined design criteria and area limitations with one or multiple objectives. It
starts with the initial layout and thereafter it improves the layout by interchanging the department
pairwise for reducing the transportation costs. Normally, the result produced by craft may not
be optimum in terms of minimum cost of transportation but the result will be good and close to the
optimum requirement.

The requirements for Computerised Relative Allocation of Facilities Technique (CRAFT) are:
 Initial layout
 Flow data
 Cost per unit distance
 Total number of departments
 Fixed departments
 Area of departments

For designing the area of a new layout, there are many inputs needed in the form of distance matrices,
cost matrices, and flow matrices.

Conclusion 7.8 CONCLUSION

 The success of operations for an organisation depends on its facility layout design which is necessary
for smooth working and efficiency of operations that dictate the profitability of the company.
 The major objective of planning facility layout is maximising sales and profits where market
opportunities are best for gaining a competitive advantage.
 The other critical factor of the facility design process is to facilitate reduction of cycle time and
processing time that leads to a reduction in the waiting time for the customers for their product
orders.
 The physical arrangement of all resources within a facility refers to the layout of the place. Layout
design planning is a critical aspect involved in facilitating the efficient flow of material and
customers through the service or manufacturing system.
 Organisations need to incorporate various objectives early in the process of layout designing to find
effective solutions for various factors involved in operational management.
 An effective and good layout provides convenience, safety, comfort, efficiency, and profits for the
company; and the success of the business enterprise depends on the location and a good facility
layout.
 Pool layout design leads to major losses in regards to wastage and re-working, more efforts for
material handling, badly planned space utilisation, low morale of employees, and so on.
 An effective facility layout should be able to provide ideal coordination between raw material,
equipment, manpower, and final product at minimal cost under a safe and comfortable environment.
 Facility layout designing and implementation are influenced by several factors that vary from
industry to industry, influencing the designing of the facility layout.

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 Good layouts have to be deliberately and carefully planned and worked out so that they provide
maximum benefits and satisfaction to the people involved in form of senior management,
shareholders, employees, customers, and others.
 The formats of a facility layout are established by the general pattern of workflow and the
workstations are arranged accordingly within the facility.
 Organisations today look towards building smaller and more compact facilities with more
automation and robotics which has a direct impact on the facility layout. In these situations, the
machines are placed closer to each other for reducing material handling.
 The ideal layout provides the framework and master plan required for arranging the departments,
machines, people, and more for a smooth and efficient workflow.

7.9 GLOSSARY

 Layout: This is the physical arrangement of all resources of the organisation within a facility.
 Process layout: In process layout, the operations of similar nature are grouped to ensure maximum
utilisation of resources and facilities, the workstations are grouped according to their specialisation.
 Product layout: In the product, the resources and activities are arranged according to the processing
needs of a single product, rather than shared among different types of products.
 Fixed-position layout: In a fixed-position layout, the product stays stationary and the machines,
workers, and materials keep on changing position as required.
 Cellular layout: A cellular layout is a type of layout where machines are grouped into cells according
to the process requirements for a set of similar items that require similar processing.
 Hybrid layout: It is a combination of process layout, product layout, and fixed-position layout and
its main focus is to take advantage of the good attributes of the process, product, and fixed layout
and at the same time avoid their shortcomings.
 Computerised Relative Allocation of Facilities Technique (CRAFT): This is an improvement
algorithm developed as a significant tool and technique for solving problems related to layout
designing in the manufacturing system.

7.10 CASE STUDY: RED MANUFACTURING COMPANY

Case Objective
The primary purpose of this case study is improving efficiency in layout of the warehouse.

The Red Manufacturing Company is into the manufacturing of spring-loaded replacement spikes for
power rakes. They package the products in small individual containers due to the small size of the item
that is then packed into a larger carton of 25 counts for shipping. They have the packing operation for
this unit on the third floor of a multi-story building. Once the packaging is completed, the shipping
cartons are placed on semi-live skids and taken to the second floor using an elevator. The same elevator
is also used to move other materials to various floors in the plant for processing. On the second floor,

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packages are sorted according to the distribution factors. After sorting, all packages are placed on a
semi-live skid and moved to the first floor via the same elevator. On the first floor, the packages are
stored awaiting shipment (picked up by the assigned truck line).

The company aims to redesign its current facility by integrating all of its production and warehousing
activities in a new way, to reduce its logistics costs and time required. They want efficient methods of
elimination of duplicated operations within the warehouse, allowing an increase in the efficiency and
reducing the workforce. They are looking for efficiency in their packaging, picking of items, reduction
of buffer transfers, and improving their operations. The main goal of the company is to achieve a 25%
logistic cost reduction, while the payback of the investment should not be greater than two and a half
years.

Questions
1. What is the business of Red Manufacturing Company manufacturing?
(Hint: Spring-loaded replacement spikes for power rakes.)
2. How can they bring down the costs of their packaging operations?
(Hint: Improve on the process of packaging, movement of goods.)
3. Explain how the movement of packages is improved in the system?
(Hint: The boxes should be packed once and there should be elimination of redundant processes.)
4. What are the alternative solutions that can be effective in the systems of operations in the warehouse?
(Hint: The number of elevators should be increased for the process, improvements, and efficiency in
the logistic operations and packaging.)

7.11 SELF-ASSESSMENT QUESTIONS

A. Essay Type Questions

1. Why is layout designing considered a critical factor in the success of the organisation?
2. What are the objectives of a good layout facility?
3. What are the factors that influence layout decisions?
4. What is the cellular layout?
5. What is the comparison between product and process layouts?

7.12 ANSWERS AND HINTS FOR SELF-ASSESSMENT QUESTIONS

A. Hints for Essay Type Questions

1. The physical arrangement of all resources within a facility refers to the layout of the place. Refer to
Section Layout
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UNIT 07: Facility Layout JGI JAIN
DEEMED-TO-BE UNIVERSIT Y

2. An effective facility layout should be able to provide ideal coordination between raw material,
equipment, manpower, and final product at minimal cost under a safe and comfortable environment.
Refer to Section Layout
3. Facility layout designing and implementation are influenced by several factors that vary from
industry to industry influencing facility layout. Refer to Section Factors influencing Layout Decisions

4. A cellular layout is a type of layout where machines are grouped into cells according to the process
requirements for a set of similar items that require similar processing. Refer to Section Types of
Layout
5. The product layout and process are two important ways to design the layout of the facility depending
on various factors involved with the manufacturing of different kinds of products. Refer to Section
Types of Layout

@ 7.13 POST-UNIT READING MATERIAL

 https://www.bdc.ca/en/articles-tools/blog/facility-layout-what-is-it-why-should-care
 https://hmhub-27-8.b-cdn.net/wp-content/uploads/2020/02/Unit-5-FACILITIES-LAYOUT-AND-
MATERIALS-HANDLING.pdf

7.14 TOPICS FOR DISCUSSION FORUMS

 Discuss with the group: what are the factors that need to be considered for designing a facility
layout for manufacturing an automobile product and why?

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