Layout Strategies

9
PowerPoint presentation to accompany
Heizer and Render
Operations Management, Eleventh Edition
Principles of Operations Management, Ninth Edition

PowerPoint slides by Jeff Heyl

© 2014
© 2014
Pearson
Pearson
Education,
Education,
Inc.Inc. 9-1
 Innovations at McDonald’s

► Indoor seating (1950s)

► Drive-through window (1970s)
► Adding breakfast to the menu (1980s)
► Adding play areas (late 1980s)
► Redesign of the kitchens (1990s)
► Self-service kiosk (2004)
► Now three separate dining sections
© 2014
© 2014
Pearson
Pearson
Education,
Education,
Inc.Inc. 9-2
 Innovations at McDonald’s

► Indoor seating (1950s)

► Drive-through windowSix(1970s)
out of the
► Adding breakfast to the seven are
menu (1980s)
► layout
Adding play areas (late 1980s)
decisions!
► Redesign of the kitchens (1990s)
► Self-service kiosk (2004)
► Now three separate dining sections
© 2014
© 2014
Pearson
Pearson
Education,
Education,
Inc.Inc. 9-3
 McDonald’s New Layout
▶ Seventh major innovation
▶ Redesigning all 30,000 outlets around the
world
▶ Three separate dining areas
▶ Linger zone with comfortable chairs and Wi-Fi
connections
▶ Grab and go zone with tall counters
▶ Flexible zone for kids and families
▶ Facility layout is a source of competitive
advantage
© 2014
© 2014
Pearson
Pearson
Education,
Education,
Inc.Inc. 9-4
 Strategic Importance of
Layout Decisions

The objective of layout strategy

is to develop an effective and
efficient layout that will meet the
firm’s competitive requirements

© 2014 Pearson Education, Inc. 9-5

 Layout Design
Considerations
► Higher utilization of space, equipment, and
people
► Improved flow of information, materials, or
people
► Improved employee morale and safer
working conditions
► Improved customer/client interaction
► Flexibility

© 2014 Pearson Education, Inc. 9-6

 Types of Layouts

▶ Four basic layout types consisting of:

▶ Process layouts - Group similar resources
together
▶ Product layouts - Designed to produce a specific
product efficiently
▶ Hybrid layouts - Combine aspects of both process
and product layouts
▶ Fixed-Position layouts - Product is too large to
move; e.g. a building
7
© 2014 Pearson Education, Inc. © Wiley 2010 9-7
 Relationship Chart

Figure 9.1
© 2014 Pearson Education, Inc. 9-8
 Fixed-Position Layout
▶ Product remains in one place
▶ Workers and equipment come to site
▶ Complicating factors
▶ Limited space at site
▶ Different materials
required at different
stages of the project
▶ Volume of materials
needed is dynamic
© 2014 Pearson Education, Inc. 9-9
 Process-Oriented Layout
▶ Like machines and equipment are
grouped together
▶ Flexible and capable of handling a
wide variety of products or services
▶ Scheduling can be difficult and setup,
material handling, and labor costs can
be high

© 2014 Pearson Education, Inc. 9 - 10

 Process-Oriented Layout
Surgery ER triage room Emergency room admissions
Patient A - broken leg

Patient B - erratic heart

pacemaker

Laboratories

Radiology ER Beds Pharmacy Billing/exit

Figure 9.3

© 2014 Pearson Education, Inc. 9 - 11

 Process-Oriented Layout
▶ Arrange work centers so as to minimize
the costs of material handling
▶ Basic cost elements are
▶ Number of loads (or people) moving
between centers
▶ Distance loads (or people) move between
centers

© 2014 Pearson Education, Inc. 9 - 12

 Process-Oriented Layout

where n = total number of work centers or

departments
i, j = individual departments
Xij = number of loads moved from
department i to department j
Cij = cost to move a load between
department i and department j

© 2014 Pearson Education, Inc. 9 - 13

 Process Layout Example
Arrange six departments in a factory to
minimize the material handling costs. Each
department is 20 x 20 feet and the building
is 60 feet long and 40 feet wide.
1. Construct a “from-to matrix”
2. Determine the space requirements
3. Develop an initial schematic diagram
4. Determine the cost of this layout
5. Try to improve the layout
6. Prepare a detailed plan

© 2014 Pearson Education, Inc. 9 - 14

 Process Layout Example
Figure 9.4

Number of loads per week

Department Assembly Painting Machine Receiving Shipping Testing
(1) (2) Shop (3) (4) (5) (6)

Assembly (1) 50 100 0 0 20

Painting (2) 30 50 10 0
Machine Shop (3) 20 0 100
Receiving (4) 50 0
Shipping (5) 0
Testing (6)

© 2014 Pearson Education, Inc. 9 - 15

 Process Layout Example
Figure 9.5 Area A Area B Area C

Assembly Painting Machine Shop

Department Department Department
(1) (2) (3)

40’

Receiving Shipping Testing

Department Department Department
(4) (5) (6)

Area D Area E Area F

60’
© 2014 Pearson Education, Inc. 9 - 16
 Process Layout Example
Revised Interdepartmental Flow Graph
Figure 9.7
30

Painting 50 Assembly 100 Machine

(2) (1) Shop (3)

10
20 20 100
50

Receiving Shipping Testing

(4) (5) (6)
50

© 2014 Pearson Education, Inc. 9 - 17

 Process Layout Example
Figure 9.8 Area A Area B Area C

Painting Assembly Machine Shop

Department Department Department
(2) (1) (3)

40’

Receiving Shipping Testing

Department Department Department
(4) (5) (6)

Area D Area E Area F

60’
© 2014 Pearson Education, Inc. 9 - 18
 Improving Layouts Using
Figure 9.9 (b)
Work Cells

Current layout - straight lines

make it hard to balance tasks Improved layout - in U shape,
because work may not be workers have better access.
divided evenly Four cross-trained workers
were reduced.

U-shaped line may reduce employee movement

and space requirements while enhancing
communication, reducing the number of workers,
and facilitating inspection

© 2014 Pearson Education, Inc. 9 - 19

 Designing Product Layouts –
con’t
Step 1: Identify tasks & immediate predecessors
Step 2: Determine output rate
Step 3: Determine cycle time
Step 4: Compute the Theoretical Minimum number of
Stations
Step 5: Assign tasks to workstations (balance the
line)
Step 6: Compute efficiency, idle time & balance delay
20
© 2014 Pearson Education, Inc. © Wiley 2010 9 - 20
 Staffing and Balancing Work
Cells
Determine the takt time

Total work time available

Takt time =
Units required

Determine the number

of operators required

Total operation time required

Workers required =
Takt time

© 2014 Pearson Education, Inc. 9 - 21

 Repetitive and Product-
Oriented Layout
Organized around products or families of
similar high-volume, low-variety products
1. Volume is adequate for high equipment utilization
2. Product demand is stable enough to justify high
investment in specialized equipment
3. Product is standardized or approaching a phase of
life cycle that justifies investment
4. Supplies of raw materials and components are
adequate and of uniform quality

© 2014 Pearson Education, Inc. 9 - 22

 Assembly-Line Balancing
▶ Objective is to minimize the imbalance
between machines or personnel while
meeting required output
▶ Starts with the precedence relationships
▶ Determine cycle time
▶ Calculate theoretical
minimum number of
workstations
▶ Balance the line by
assigning specific
tasks to workstations
© 2014 Pearson Education, Inc. 9 - 23
 Wing Component Example
TABLE 9.2 Precedence Data for Wing Component
ASSEMBLY TIME TASK MUST FOLLOW
TASK (MINUTES) TASK LISTED BELOW
A 10 – This means that
B 11 A tasks B and E
cannot be done
C 5 B until task A has
D 4 B been completed

E 11 A
F 3 C, D
G 7 F
H 11 E
I 3 G, H
Total time 65

© 2014 Pearson Education, Inc. 9 - 24

 Wing Component Example
Precedence Data for Wing
TABLE 9.2 Component 480 available mins
per day
TASK MUST
ASSEMBLY TIME FOLLOW TASK 40 units required
TASK (MINUTES) LISTED BELOW
A 10 –
Production time available
B 11 A per day
C 5 Cycle
B time =
Units required per day
D 4 B Figure 9.12
= 480 / 40
E 11 A 5
F 3 C, D = 12 minutes per unit
C
G 7 F 10 11 3 7

H 11 E A B F G
Minimum number 4
I 3 G, H 3
of workstations D
Total time 65 11 11 I
= 65E / 12 H
=5.42, or 6 stations
© 2014 Pearson Education, Inc. 9 - 25
 Wing Component Example
Layout Heuristics That May Be Used to Assign Tasks
TABLE 9.3 to Workstations in Assembly-Line Balancing
1. Longest task time From the available tasks, choose the
task with the largest (longest) task time
2. Most following tasks From the available tasks, choose the
task with the largest number of following
tasks
3. Ranked positional From the available tasks, choose the
weight task for which the sum of following task
times is the longest
4. Shortest task time From the available tasks, choose the
task with the shortest task time
5. Least number of From the available tasks, choose the
following tasks task with the least number of subsequent
tasks

© 2014 Pearson Education, Inc. 9 - 26

 Wing Component Example
480 available mins
Figure 9.13 per day
40 units required
Cycle time = 12 mins
Minimum
Station 5 workstations = 5.42 or 6
2
C
10 11 3 7
A B F G
4 3
D Station 3
Station 3 I
11 11
Station 6
Station Station 6
1 E H
Station Station
4 5
© 2014 Pearson Education, Inc. 9 - 27
 Wing Component Example
Precedence Data for Wing 480 available mins
TABLE 9.2 Component per day
TASK MUST 40 units required
ASSEMBLY TIME FOLLOW TASK
TASK (MINUTES) LISTED BELOW Cycle time = 12 mins
A 10 –
Minimum
B 11 A
workstations = 5.42 or 6
C 5 B
D 4 B Figure 9.12
E 11 A 5
F 3 C, D
∑ Task times C
Efficiency
G = 7 F 10 11 3 7

H
(Actual
11
number of
E
workstations)
A B
x (Largest cycle
F
time)
G
4
I 3 G, H 3
= 65 minutes / ((6 stations) x (12 minutes))
Total time 65
D I
11 11
= 90.3%
E H

© 2014 Pearson Education, Inc. 9 - 28

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