Qatar University © 2012

Facility Planning & Layout

PROF. MOHAMED HAOUARI

Part I
Lecture Outline
• Definition
• Objectives of Facility Layout
• Factors affecting Plant Layout
• Basic Layouts
• Process layouts
• Product layouts
• Fixed-position layouts
• Cellular Layouts
Facility Layout ‐ Definition

• Facility layout: Arrangement of machines, storage

areas, and/or work areas usually within the confines of
a physical structure, such as a retail store, an office, a
warehouse, or a manufacturing facility.
Objectives of Facility Layout
• Minimize material-handling costs
• Utilize space efficiently
• Utilize labor efficiently
• Eliminate bottlenecks
• Facilitate communication and interaction
• Reduce manufacturing cycle time
• Reduce customer service time
• Eliminate wasted or redundant movement
Objectives of Facility Layout
• Facilitate entry, exit, and placement of material, products, and
people
• Incorporate safety and security measures
• Promote product and service quality
• Encourage proper maintenance activities
• Provide a visual control of activities
• Provide flexibility to adapt to changing conditions
• Increase capacity
Factors affecting Plant Layout
• The final solution for a Plant Layout has to take into account a
balance among the characteristics and considerations of all
factors affecting plant layout, in order to get the maximum
advantages.
• The factors affecting plant layout can be grouped into 8
categories:
• Materials
• Machinery
• Labor
• Material Handling
• Waiting Time
• Auxiliary Services
• The building
• Future Changes
 Factors affecting Plant Layout
• The factors affecting plant layout can be grouped into
8 categories:
• Materials
• The layout of the productive equipment will depend on the
characteristics of the product to be managed at the facility, as
well as the different parts and materials to work on.
• Main factors to be considered: size, shape, volume, weight, and
the physical-chemical characteristics, since they influence the
manufacturing methods and storage and material handling
processes.
• The sequence and order of the operations will affect plant layout
as well, taking into account the variety and quantity to produce.
 Factors affecting Plant Layout
• The factors affecting plant layout can be grouped into
8 categories:
• Machinery
• Having information about the processes, machinery, tools and
necessary equipment, as well as their use and requirements is
essential to design a correct layout.
• The methods and time studies to improve the processes are
closely linked to the plant layout.
• Regarding machinery, we have to consider the type, total
available for each type, as well as type and quantity of tools and
equipment.
• It’s essential as well to know about space required, shape,
height, weight, quantity and type of workers required, risks for
the personnel, requirements of auxiliary services, etc.
 Factors affecting Plant Layout
• The factors affecting plant layout can be grouped into
8 categories:
• Labor
• Labor has to be organized in the production process (direct
labor, supervision and auxiliary services).
• Environment considerations: employees’ safety, light conditions,
ventilation, temperature, noise, etc.
• Process considerations: personnel qualifications, flexibility,
number of workers required at a given time as well as the type
of work to be performed by them.
• Material Handling
• Material handling does not add value to the product; it’s just
waste.
• Objective: Minimize material handling as well as combining with
other operations when possible, eliminating unnecessary and
costly movements.
 Factors affecting Plant Layout
• The factors affecting plant layout can be grouped into
8 categories:
• Labor
• Labor has to be organized in the production process (direct
labor, supervision and auxiliary services).
• Environment considerations: employees’ safety, light conditions,
ventilation, temperature, noise, etc.
• Process considerations: personnel qualifications, flexibility,
number of workers required at a given time as well as the type
of work to be performed by them.
• Material Handling
• Material handling does not add value to the product; it’s just
waste.
• Objective: Minimize material handling as well as combining with
other operations when possible, eliminating unnecessary and
costly movements.
 Factors affecting Plant Layout
• The factors affecting plant layout can be grouped into
8 categories:
• Waiting time - Stock
• Objective: Continuous Material Flow through the facility,
avoiding the cost of waiting time and demurrages that happen
when the flow stops.
• On the other hand, the material waiting to flow through the
facility not always represents a cost to avoid. As stock
sometimes provides safety to protect production, improving
customer service, allowing more economic batches, etc.
• It’s necessary then to consider space for the required stock at the
facility when designing the layout.
• Resting time to cool down or heating up…
 Factors affecting Plant Layout
• The factors affecting plant layout can be grouped into
8 categories:
• Auxiliary Services
• Support the main production activities at the plant:
• Related to labor: Accessibility paths, fire protection installations,
supervision, safety, etc.
• Related to material: quality control.
• Related to machinery: maintenance and electrical and water lines.
• The auxiliary services represent around 30% of the space at a
facility.
• The space dedicated to auxiliary services is usually considered
as waste.
• It’s important to have efficient services to insure that their indirect
costs have been minimized.
 Factors affecting Plant Layout
• The factors affecting plant layout can be grouped into
8 categories:
• The building
• If it has been already selected, its characteristics will be a
constraint at the moment of designing the layout, which is
different if the building has to be built.
• Future changes
• One of the main objectives of plant layout is flexibility.
• It’s important to forecast the future changes to avoid having an
inefficient plant layout in a short term.
• Flexibility can be reached keeping the original layout as free as
possible regarding fixed characteristics, allowing the adjustment
to emergencies and variations of the normal process activities.
• Possible future extensions of the facility must be taken into
account, as well as the feasibility of production during re-layout.
 Basic Layouts
• Process layouts
• group similar activities together according to process or
function they perform
• Product layouts
• arrange activities in line according to sequence of
operations for a particular product or service
• Fixed-position layouts
• are used for projects in which product cannot be moved
• Cellular Layouts
• group of machines which are dedicated to the production
of a family of parts.

7-14
Process Layout in Services
Perfumes
Shoes Housewares

Women’s Cosmetics Children’s

dresses and jewelry department

Women’s Entry and Men’s

sportswear display area department

7-15
Manufacturing Process
Layout

7-16
Process Layout
• Grouping together of machines and/or workers
doing similar tasks.
• Applicable to both manufacturing and non
manufacturing operations.
• Advantages
• Flexibility: equipment and personnel can be used where
they are needed.
• Smaller investment in equipment: duplication is not
necessary unless volume is large.
• Expertise: supervisors for each department become
highly. knowledgeable about their functions
• Diversity of tasks: changing work assignments make
work more satisfying for people who prefer variety.
• Disadvantages
• Lack of process efficiency: backtracking and long
movements may occur in the handling of materials.
• Lack of efficiency in timing: workers must wait between
tasks.
• Complication of production planning and control.
• Cost: workers must have broad skills and must be paid
higher wages than assembly line workers.
• Lowered productivity: because each job is different it
requires different setups and operator training.
Product/ Flow‐Line Layout
In

Out

7-19
Flow‐Line Layout
• Applicable to both manufacturing and non
manufacturing operations.
• Arrange machines and/or workers in accordance
with the sequence of operations for a given
product or service.
• Advantages of flow-line layout
• Reduces materials handling.
• Accommodates small amounts of work in process.
• Reduces transit times.
• Simplifies production planning and control systems.
• Simplifies tasks, enabling unskilled workers to learn task
quickly.
• Disadvantages of flow-line layout
• Lack of process flexibility.
• Lack of flexibility in timing: the product can not flow
through the line faster than the slowest task can be
accomplished unless that task is performed at several
stations.
• Large investments: special-purpose equipment and
duplication is required to offset lack of flexibility in timing.
• Dependence of the whole on each part: a breakdown of
one machine or absence of enough operators to staff all
work stations may stop the entire line.
• Worker fatigue: workers may become bored by the
endless repetition of simple tasks.
Comparison of Product
and Process Layouts
Product Process
• Description  Sequential  Functional
arrangement of grouping of
activities activities
 Continuous, mass  Intermittent, job
• Type of process
production, mainly shop, batch
assembly production, mainly
fabrication
• Product  Standardized,  Varied, made to
made to stock order
• Demand  Stable  Fluctuating
• Volume  High  Low
• Equipment  Special purpose  General purpose

7-22
Comparison of Product
and Process Layouts
Product Process
• Workers  Limited skills  Varied skills
• Inventory  Low in-process, high  High in-process, low
finished goods finished goods
• Storage space  Small  Large
• Material handling  Fixed path (conveyor)  Variable path (forklift)
• Aisles  Narrow  Wide
• Scheduling  Part of balancing  Dynamic
• Layout decision  Line balancing  Machine location
• Goal  Equalize work at each  Minimize material
station handling cost
• Advantage  Efficiency  Flexibility

7-23
Fixed‐Position Layouts
• Typical of projects
• Fragile, bulky, heavy items
• Equipment, workers & materials brought to site
• Low equipment utilization
• Highly skilled labor
• Typically low fixed cost
• Often high variable costs

7-24
Fixed Position Layout
• Manufacturing and non-manufacturing operations
of bulky or fragile products, e.g., ships and planes.
• Move machines and/or workers to the site;
products normally remains in one location for its
entire manufacturing period.
• Advantages of fixed position layout
• Reduces movement of work items; minimizes damage or
cost of moving.
• More continuity of the assigned work force (since the item
does not go from one department to another). This
reduces the problems of re-planning and instructing
people each time a new type of activity is to begin.
• Disadvantages of fixed position layout
• Since the same workers are involved in more operations,
skilled and versatile workers are required. The necessary
combination of skills may be difficult to find and high pay
levels may be necessary.
• Movement of people and equipment to and from the work
site may be expensive.
• Equipment utilization may be low because the equipment
may be left at a location where it will be needed again in
a few days rather than moved to another location where it
would be productive.
Cellular Layouts

• Every cell contains a group of machines which are

dedicated to the production of a family of parts.
• One of the problems is to identify a family parts that
require the same group of machines.
• These layouts are also called as group technology
layouts.
Cellular Layouts Example
Assembly

4 6 7 9

5 8

2 10 12

1 3 11

A B C Raw materials

7-28
Cellular Layouts Example

• The previous slide shows a facility in which three parts

A, B, C flow through the machines.
• The next slide provides the information in a matrix form
which includes some other parts D, E, F, G, H.
• The rows correspond to the parts and columns to the
machines.
• Just by interchanging rows and columns, eventually a
matrix is obtained where the “X” marks are all
concentrated near the diagonal. This matrix provides the
cells. For example, parts A, D and F require Machines 1,
2, 4, 8 and 10 which forms a cell.
 Cellular Layouts Example
Machines
Parts 1 2 3 4 5 6 7 8 9 10 11 12
A x x x x x
B x x x x
C x x x
D x x x x x
E x x x
F x x x
G x x x x
H x x x
 Cellular Layouts Example
Machines
Parts 1 2 4 3 5 6 7 8 9 10 11 12
A x x x x x
B x x x x
C x x x
D x x x x x
E x x x
F x x x
G x x x x
H x x x
 Cellular Layouts Example
Machines
Parts 1 2 4 3 5 6 7 8 9 10 11 12
A x x x x x
D x x x x x
B x x x x
C x x x
E x x x
F x x x
G x x x x
H x x x
 Cellular Layouts Example
Machines
Parts 1 2 4 8 3 5 6 7 9 10 11 12
A x x x x x
D x x x x x
B x x x x
C x x x
E x x x
F x x x
G x x x x
H x x x
 Cellular Layouts Example
Machines
Parts 1 2 4 8 3 5 6 7 9 10 11 12
A x x x x x
D x x x x x
F x x x
B x x x x
C x x x
E x x x
G x x x x
H x x x
 Cellular Layouts Example
Machines
Parts 1 2 4 8 10 3 5 6 7 9 11 12
A x x x x x
D x x x x x
F x x x
B x x x x
C x x x
E x x x
G x x x x
H x x x
 Cellular Layouts Example
Machines
Parts 1 2 4 8 10 3 6 9 5 7 11 12
A x x x x x
D x x x x x
F x x x
C x x x
G x x x x
B x x x x
E x x x
H x x x
Revised Cellular Layout
Assembly

8 10 9 12

11
4 Cell 1 Cell 2 6 Cell 3
7

2 1 3 5

A B C
Raw materials

7-37
 Advantages of Cellular Layouts

• Reduced material handling and transit time

• Reduced setup time
• Reduced work-in-process inventory
• Better use of human resources
• Better scheduling, easier to control and automate
Disadvantages of Cellular Layouts

• Sometimes cells may not be formed because of

inadequate part families.

• Some cells may have a high volume of

production and others very low. This results in
poorly balanced cells.
Disadvantages of Cellular Layouts

• When volume of production changes, number of

workers are adjusted and workers are
reassigned to various cells. To cope with this
type of reassignments, workers must be multi-
skilled and cross-trained.

• Sometimes, machines are duplicated in different

cells. This increases capital investment.
Automated Manufacturing Cell

7-41
Flexible Manufacturing Systems (FMS)
• Consists of
• programmable machine tools
• automated tool changing
• automated material handling system
• controlled by computer network
• Combines flexibility with efficiency
• Layouts differ based on
• variety of parts the system can process
• size of parts processed
• average processing time required for part completion

7-42
 Production volume and
product variety determines
type of layout

Quantity Product
Layouts

Fixed
Position
Layouts Mixed Layouts Process Layouts

Number of Different Products

The Quadratic Assignment
Problem (QAP)

• Common mathematical formulation for facility layout problems

• Cost of an assignment is determined by the distances and the

material flows between all given entities
• Each assignment decision has direct impact on the decision
referring to all other objects
The Quadratic Assignment
Problem (QAP)
• Mathematical formulation:
• n organizational entities (OE), all of them are of same size and
can therefore be interchanged with each other
• n locations, each of which can be provided withe each of the OE
(exactly 1)
• thi ... transp. intensity, i.e. material flow between OE h and OE i
• djk ... distance between j and location k (not implicitly symmetric)
• Transportation costs are proportional to transported amount and
distance.
The Quadratic Assignment
Problem (QAP)
• If OE h is assigned to location j and OE i to location k
• the transportation cost per unit transported from OE h to OE i is
determined by djk
• we determine the total transportation cost by multiplying djk with
the material flow between OE h and OE i which is thi

thi. OE
... h ... i ...
 Cost = thi djk
djk
... j k locations
.
... ...
The Quadratic Assignment
Problem (QAP)
Binary decision variables
1 if OE h is assigned to location j
xhj  
If OE h  location j (xhj = 1) 0 otherwise
and OE i  location k (xik = 1)

thi.
... h i ...
OE
...

xhj = 1 xik = 1  Cost = thi djk

djk.
... j k ...
locations
...

 Transportation cost per unit transported from OE h to OE i : n n

  d jk xhj xik
 Total transportation cost: n n n n
j 1 k 1
   t d x x
h 1 i 1 j 1 k 1
hi jk hj ik
The Quadratic Assignment
Problem (QAP)
Objective: Minimize the total transportation costs between all OE
n n n n
    thi d jk xhj xik  min Quadratic function  QAP
h 1 i 1 j 1k 1

Constraints
n
 xhj  1 h = 1, ... , n ... each OE h assigned to exactly 1 location j
j 1
n
 xhj  1 j = 1, ... , n ... each location j is provided with exactly 1 OE h
h 1

xhj = 0 or 1 ... binary decision variable

The Quadratic Assignment
Problem (QAP)
• Example: Calculate cost for 3 OE (1 ,2 ,3) and 3 locations (A, B, C)
Distances between
locations djk Material flow thi
A B C 1 2 3
A A 0 1 2 1 0 1 1
D  B 1 0 1  T  2 2 0 2
B C  
C 3 1 0 3  3 1 0

1 possible solution:
1  A, 2  B, 3  C, i.e. x1A = 1, x2B = 1, x3C = 1, all other xij = 0
All constraints are fulfilled.
Total transportation cost:
0*0 + 1*1 + 2*1 + 1*2 + 0*0 + 1*2 + 3*3 + 1*1 + 0*0 = 17
The Quadratic Assignment
Problem (QAP)
This solution is not optimal since OE 1 and 3 (which have a high degree of
material flow) are assigned to locations A and C (which have the highest
distance between them).
A better solution would be.:
1  C, 2  A and 3  B, i.e. x1C = 1, x2A = 1, x3B = 1.
with total transportation cost:
0*0 + 3*1 + 1*1 + 2*2 + 0*0 + 2*1 + 1*3 + 1*1 + 0*0 = 14
Distances Material flow
C A B 1 2 3
2A C 0 3 1 1 0 1 1
D  A 2 0 1 T  2 2 0 2
   
3B 1C B 1 1 0 3  3 1 0
The Quadratic Assignment
Problem (QAP)A B C
A 0 1 2 
We resorted the matrix
D  B 1 0 1 
C 3 1 0
such that row and columns appear the following sequence
1  C, 2  A and 3  B, i.e C, A, B
(it is advisable to perform the resorting in 2 steps: first rows than columns
or the other way round)

A B C C A B C A B
A 0 1 2 A 2 0 1 C 0 3 1
D  B 1 0 1  D  B 1 1 0 D  A 2 0 1
 
C 3 1 0 C 0 3 1 B 1 1 0
Example
• Arrange all OE according to decreasing sum of material flow
• Arrange all locations according to increasing distance to all
other locations
A B C
D E F
G H I

• Manhatten-distance between locations.

(matrix is symmetric -> consideration of the matrix triangle is
sufficient)
Example – Material flow Sum of material flow between 15 and 51
OE 1 2 3 4 5 6 7 8 9 
1 - - - - 3 - - - - 3
2 - 3 1 2 - 4 - - 10

3 - 3 5 2 - 3 4 20
4 - - - 1 - - 5
5 - 2 2 1 - 15
6 - - - - 4
7 - - - 7
8 - - 4
9 - 4
Sequence of OE (according to decreasing
material flow): 3, 5, 2, 7, 4, 6, 8, 9, 1
Example ‐ Distances

L A B C D E F G H I 
A - 1 2 1 2 3 2 3 4
18
B - 1 2 1 2 3 2 3 15
C - 3 2 1 4 3 2 18
D - 1 2 1 2 3 15
E - 1 2 1 2 12
F - 3 2 1 15
G - 1 2 18
H - 1 15
I - 18
Sequence of locations (according to increasing
distances): E, B, D, F, H, A, C, G, I
Example ‐ Assignment
• Sequence of OE: 3, 5, 2, 7, 4, 6, 8, 9, 1

• Sequence of locations: E, B, D, F, H, A, C, G, I

• Assignment:
OE 1 2 3 4 5 6 7 8 9
Loc. I D E H B A F C G
Example – Total costs

OE 1 2 3 4 5 6 7 8 9
1 - - - - 3*3 - - - - OE 1 and 5 are
assigned to locations
2 - 3*1 1*2 2*2 - 4*2 - -
I and B
3 - 3*1 5*1 2*2 - 3*2 4*2
 3 (Distance 1-5) *
4 - - - 1*2 - -
3 (Flow I-B)
5 - 2*1 2*2 1*1 -
6 - - - - Total cost = 61
7 - - -
8 - -
9 -
The Quadratic Assignment
Problem (QAP)
• Improvement heuristics:
• Try to improve solutions by exchanging OE-pairs (see the
introducing example)
• Check if the exchange of locations of 2 OE reduces costs.
 ©
Thank you for your attention… 2012