Facility Location and

Space Allocation

Asst. Prof. Worapong Sawangsri

EMME, Department of Mechanical Engineering

Faculty of Engineering Kasetsart University

 Lecture Outline

TECHNIQUES FOR SPACE UTILIZATION VISUALIZING FACILITY

SPACE ALLOCATION AND STORAGE LAYOUTS WITH VISUAL
AND OPTIMIZATION STRATEGIES COMPONENTS
• Techniques for Space
Allocation and Optimization
Introduction
• Space allocation and optimization are critical
aspects of modern facilities design, aiming to
enhance operational efficiency, safety, and
adaptability.
• Advanced techniques leverage data-driven
planning, innovative layouts, and cutting-edge
technologies to maximize productivity while
minimizing costs.
• A comprehensive discussion of techniques used
in modern facilities:
1. Process Flow Analysis
• Purpose: To understand the movement of
materials, personnel, and information within the
facility.
• Key Techniques:
• Process Flowcharts: Mapping out activities to identify
redundancies.
• Value Stream Mapping (VSM): Analyzing value-added
and non-value-added processes to streamline
workflows.
• Application: Helps in grouping related processes
and allocating space accordingly.
2. Activity-Based Space
Allocation
• Principle: Allocate space based on the
specific needs of each activity or
department.
• Example:
• Larger areas for high-volume production
zones.
• Compact spaces for administrative tasks.
• Tools: Activity Relationship Charts (ARC) to
prioritize proximity based on
interdependencies.
 Activity relationship diagram (ARD)

Activity relationship chart (ARC) Setiyawan, T., Mulyadi, Y. A., & Prastyo, Y. (2024). Proposed Improvement of Facility Layout to Optimize Material
Handling Costs with ARC, AAD, ARD Approach at PT. Plating Services.
3. Zoning and Hierarchical
Layouts
• Purpose: Group similar functions or activities to
enhance efficiency.
• Applications:
• Manufacturing: Group machines performing
sequential processes.
• Offices: Separate client-facing areas from internal
operations.
• Benefits: Reduces time spent moving between
unrelated areas.
4. Cellular Layouts
A cellular layout
• Definition: Organizing
workstations into "cells"
where related processes
are grouped.
• Benefits:
• Reduces material
handling time.
• Enhances flexibility for
mixed-product
workflows. https://images.app.goo.gl/KyHVomeebjHWJrYP8

• Common Uses:
Manufacturing of diverse
products in small
batches.
5. Space Simulation and Modeling
• Technology Used:
• CAD (Computer-Aided Design) tools.
• Workflow simulation software like Visual
Components.
• Application:
• Simulate layouts to evaluate efficiency.
• Optimize material flow, storage, and
workspace ergonomics.
6. Lean Layout Principles
• Key Concepts:
• Minimizing Waste: Eliminate unnecessary
movements, storage, and delays.
• 5S System: Sort, Set in Order, Shine,
Standardize, Sustain.
• Kanban Systems: Organize inventory to
optimize space.
• Example: Arranging tools and materials for
immediate access.
https://images.app.goo.gl/iq7qnsDwzv4HkeFa9

A lean production area with clearly marked zones and organized tools
7. Modular Space Design
• Definition: Designing flexible spaces that
can be reconfigured based on changing
requirements.
• Applications:
• Expand production lines.
• Shift between different product categories
efficiently.
• Example: Modular walls and movable
equipment in manufacturing zones.
https://images.app.goo.gl/V2JotNK6gskC2ZMP8

Modular Plant for Flexible and Efficient Production

8. Strategic Storage Solutions
• Techniques:
• Vertical Storage: Utilizing the vertical space
with racks and automated storage systems.
• ABC Analysis: Prioritizing storage based on
item frequency of use.
• Kanban Systems: Ensuring just-in-time
inventory availability.
• Benefits: Reduces space wastage while
improving accessibility.
9. Ergonomic and Safety
Considerations
• Design Features:
• Workstations designed
for ease of use and
minimal physical strain.
• Adequate space for safe
movement and
emergency access.
• Example: Adjustable
workbenches and
clearly marked safety
zones. https://images.app.goo.gl/ndEsKhwxeQQLXPG17

• Benefits: Reduces Ergonomic workstation with adjustable workbenches

fatigue and improves
efficiency.
10. Space Optimization through
Technology
• Smart Sensors: Monitor real-time space
utilization.
• IoT Integration: Track equipment, personnel,
and material movement.
• AI-Driven Analytics: Predict and optimize space
usage dynamically.
• Smart Building Systems: Automate lighting,
temperature, and occupancy adjustments.
• Outcome: Enhances dynamic space utilization
and operational efficiency.
11. Sustainability in Space
Utilization
• Eco-Friendly Practices:
• Incorporate natural lighting and ventilation.
• Use sustainable materials and energy-efficient
systems.
• Use renewable energy sources (e.g., solar panels)
• Optimize multi-functional spaces to reduce
environmental impact
• Example: Designing multi-purpose areas to
minimize resource consumption.
• Applications: Eco-friendly offices and
manufacturing facilities.
https://images.app.goo.gl/HgkuoeJ8mqwL3JxZ8

Example of beverage facilities focus on sustainability, energy efficiency

Conclusion
• Modern space allocation and optimization
techniques in facility design focus on
efficiency, adaptability, and sustainability.
By leveraging advanced tools and
principles like lean layouts, modular
designs, and IoT-driven solutions,
organizations can create facilities that are
not only functional but also future-ready.
• Space utilization and storage
strategies.
Introduction
• Efficient space utilization and storage strategies
are vital in modern facility design, ensuring
maximum productivity, cost savings, and
adaptability to changing demands.
• These strategies emphasize optimal use of
available space, effective organization, and
integration of advanced technologies.
1. Space Utilization Principles
• 1.1 Maximize Vertical Space
• Techniques:
• Use tall racks, shelves, and mezzanine floors.
• Employ stackable storage systems for
warehouses and factories.
• Applications: Warehouses, distribution
centers, and manufacturing units.
• Benefits: Increases storage capacity
without expanding the facility footprint.
 Warehouse Mezzanine Floor factory
https://images.app.goo.gl/2Wq4tUWrUvuZrp659
• 1.2 Multi-Purpose Areas
• Design areas that can
serve multiple functions,
such as meeting rooms
that double as
workspaces.
• Example: Modular
conference areas or
adjustable training
rooms. https://images.app.goo.gl/Y73fQS5ELpyPE6gE9

Modular Workstations
• 1.3 Workflow-Centric Design
• Arrange spaces to streamline
movement and minimize waste.
• Use tools like Value Stream Mapping
(VSM) to optimize layouts for material
and personnel flow.
https://images.app.goo.gl/n1qWML2nEXCukjvL7

A facility layout showing efficient paths for material flow and

personnel movement
2. Storage Strategies in Modern Facilities

• 2.1 Automated Storage

and Retrieval Systems
(ASRS)
• Definition: Automated
systems that use robotics
to store and retrieve items.
• Benefits:
• Reduces labor costs.
• Maximizes space
efficiency with high-
density storage.
• Improves accuracy
and speed in
inventory
management. https://images.app.goo.gl/Tqpd2XMJPGMLJFU89

Example of an ASRS with robotic arms retrieving items from vertical racks
• 2.2 Just-in-Time (JIT) Inventory
Management
• Principle: Store only what is
needed for short-term
operations to reduce space
occupied by inventory.
• Applications: Manufacturing
facilities and retail
warehouses.
• A lean inventory system with
labeled bins (digital bins)

https://images.app.goo.gl/V1F2ztKZBPiTcxnV6
Inventory
management
system using digital
bins showing LED
messages of status
and inventory https://www.digitalbins.com/

levels

https://www.digitalbins.com/
• 2.3 Dynamic Storage Solutions
• Examples:
• Mobile Shelving: Shelving units that can
move to create aisles only when needed.
• Rotating Shelves: Vertical or horizontal
carousels to retrieve items efficiently.
• Benefits: Optimizes space and ensures
accessibility.
 • Shelving units and
horizontal carousels

https://images.app.goo.gl/eLKf2idQ1GVEsig89 https://images.app.goo.gl/SyHgwLm5xBvkpqfB9
 • 2.4 Cube Utilization
• Concept: Measure the percentage of the
cubic volume utilized in storage areas.
• Strategies:
• Store smaller, lighter items on upper
shelves.
• Use bins and containers to minimize
wasted space.
A warehouse section with bins and racks optimized for full cubic volume utilization.

https://images.app.goo.gl/W8mDLndW9VkhinyZ9
3. Technology Integration for
Space and Storage Optimization
• 3.1 IoT and Smart Sensors
• Track real-time storage conditions
and space utilization.
• Example: Sensors that monitor
inventory levels and optimize space
dynamically.
• 3.2 AI-Driven Space Planning
• Use AI to analyze workflows and
suggest optimal layouts and storage
configurations.
• Example: AI tools predicting space
requirements based on demand
forecasts.
 • 4.1 Green Storage Solutions
• Use eco-friendly materials for
4. Sustainability in shelving and containers.
Space and Storage • Incorporate renewable energy
solutions, such as solar-
powered storage systems.
The Warehouse and Storage Solution for Solar Panels

https://images.app.goo.gl/XkfU2iTW7RJM2ytm8
 • 4.2 Energy-Efficient
Layouts
• Design layouts that
reduce lighting and
HVAC energy
requirements.
• Example: Skylights and
efficient HVAC zoning in
storage areas.
• A warehouse with
skylights and energy-
efficient zoning

https://images.app.goo.gl/rAXVuCkfzGC7LZxK6
5. Key Metrics for Space and
Storage Efficiency
• 5.1 Space Utilization Rate
• Formula: (Used Space / Total Available Space) × 100
• Aim for higher utilization without overcrowding to
maintain efficiency and safety.
• 5.2 Inventory Turnover
• Formula: Cost of Goods Sold / Average Inventory
• Higher turnover indicates efficient use of storage
space.
• 5.3 Accessibility Index
• Measure how easily and quickly items can be
retrieved.
Conclusion
• Effective space utilization and storage strategies
in modern facilities design prioritize maximizing
available space, incorporating advanced
technologies, and maintaining sustainability.
• By adopting practices like automated systems,
lean inventory management, and workflow-
centric designs, organizations can enhance
efficiency, reduce costs, and adapt to future
demands.
• Visualizing facility layouts with
Visual Components.
Introduction
• In modern facilities design, visualization tools like
Visual Components play a vital role in creating,
simulating, and optimizing facility layouts.
• Visual Components is a 3D manufacturing
simulation software that enables designers to
conceptualize layouts, test workflows, and ensure
optimal utilization of space and resources.
• Here, a detailed overview of how Visual Components
enhances facility layout visualization and design.
1. Importance of Facility Layout
Visualization
• Clarity: Provides a clear 3D representation of the
facility layout.
• Efficiency: Allows for testing workflows and
identifying inefficiencies.
• Decision-Making: Facilitates better
communication with stakeholders by providing
realistic models.
• Adaptability: Easily modify layouts to
accommodate changes in production or
processes.
2. Key Features of Visual
Components
• 2.1 3D Layout Modeling
• Create detailed facility layouts with precision.
• Add components such as machines, conveyors,
storage racks, and workstations.
• Customize dimensions, colors, and orientations
to match real-world specifications.
• 2.2 Workflow Simulation
• Simulate material flow, production processes,
and worker movements.
• Analyze bottlenecks, idle times, and
inefficiencies in the layout.
• 2.3 Digital Twin Integration
• Create a virtual representation of a
real-world facility.
• Test scenarios and monitor
performance using real-time data
from IoT-connected devices.
A digital twin of a
manufacturing
facility with real-
time performance https://images.app.goo.gl/2DRHTsTCTfZ8j8W86

metrics displayed

https://images.app.goo.gl/c9kKpp5PfWpFfzEf7
• 2.4 Modular Design
• Use a library of pre-built components
to quickly create layouts.
• Modify and replace modules easily to
adapt to changes in production
requirements.
3. Applications of Visual
Components in Facility Design
• 3.1 Manufacturing Facilities
• Simulate production lines to optimize
equipment placement and material
flow.
• Test different configurations for
efficiency and flexibility.
• 3.2 Warehouses and Distribution
Centers
• Plan storage areas, picking zones,
and shipping docks.
• Simulate inventory handling systems
like Automated Storage and Retrieval
Systems (ASRS).
• 3.3 Office Layouts
• Visualize open-plan offices, meeting
rooms, and workstations.
• Test ergonomics and space utilization
for employee productivity.
• 3.4 Retail Spaces
• Design floor plans to optimize
customer flow and product
placement.
• Simulate customer behavior to
improve shopping experiences.
4. Benefits of Using Visual
Components
• 4.1 Enhanced Collaboration
• Share 3D models with stakeholders for better
understanding and feedback.
• 4.2 Cost and Time Savings
• Test layouts virtually before physical implementation,
reducing trial-and-error costs.
• 4.3 Flexibility in Design
• Quickly adapt to changes in production volumes,
technology upgrades, or process shifts.
• 4.4 Improved Decision-Making
• Use data-driven insights from simulations to make
informed design decisions.
5. Case Study: Using Visual
Components for Optimization
• Scenario: A manufacturing company aims to reduce
lead times and improve material flow.
Solution:
1.Import facility dimensions into Visual Components.
2.Model production lines and simulate workflows.
3.Identify bottlenecks and test alternative layouts.
4.Implement the optimized design in the real facility.
Outcome: 20% improvement in efficiency and a
15% reduction in lead times.
6. Steps to Visualize Facility
Layouts with Visual Components
1.Define Objectives: Identify goals like space
optimization, workflow improvement, or cost
reduction.
2.Model the Layout: Use pre-built components or
customize as needed.
3.Simulate Workflows: Test material flow, worker
movement, and equipment usage.
4.Analyze Results: Review data to identify
inefficiencies or potential improvements.
5.Refine the Layout: Make adjustments and re-
simulate until optimal results are achieved.
7. Future Trends in Facility
Visualization
• AR/VR Integration: Use augmented and virtual
reality to immerse stakeholders in the layout
design.
• AI-Driven Optimization: Automatically generate
and refine layouts based on AI algorithms.
• Sustainability Modeling: Simulate energy usage
and environmental impact to design greener
facilities.
 BMW Group Plant Regensburg:
Realistic simulations of future operations already possible in digital factory layout:
Employees trained on “digital twin” using VR goggles

https://images.app.goo.gl/ekBbnzvVaLPSAxzJA
Conclusion
• Visual Components revolutionizes facility layout
design by combining 3D modeling, simulation,
and optimization tools. By enabling detailed
visualization and data-driven decision-making, it
ensures efficient and adaptable layouts for
modern facilities. Whether for manufacturing,
warehousing, or office spaces, this software
enhances planning, reduces risks, and supports
long-term operational success.