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FACILITY PLANNING &
LAYOUT- MDP 423
Introduction
FACILITY LAYOUT
PROBLEM
Once a firm has
decided where a
facility will be
located, the next
important decision is
the Arrangement of
people and
Equipment within
the facility.
FACILITY LAYOUT
PROBLEM
Facility Layout problem involves:
1. The location of departments (or
sections) within the facility AND
2. The arrangement of people and
equipment within each
department.
FACILITY LAYOUT
PROBLEM
FACILITY LAYOUT
PROBLEM
 The layout decision will certainly affect:
 Usually the layout is planned to minimize a
the Flow of materials,
 in-plant Transportation cost,
 equipment utilization, and
 general productivity and effectiveness of the
business.

 Therefore, plant layout should be carefully
arranged, AND It must satisfy specific
objectives.
particular criterion:

For example, minimizing total traveling time,
total cost, total delays, etc.
 There are also situations in which the
layout may be designed to maximize a
criterion:

For example, maximize quality, flexibility, or
space utilization.
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facility layout is an arrangement of
everything needed for production of goods or
delivery of services.
 A facility is an entity that facilitates the
 A
performance of any job. It may be:






Facility Layout Definition

The layout design generally depends on:
1. The products variety and
2. The Production volume
 Four types of organization are:
1.
2.
3.
4.
machine tool,
work centre,
manufacturing cell,
machine shop,
department,
warehouse, etc. (Heragu, 1997)
fixed product layout,
process layout,
product layout and
cellular layout (Dilworth, 1996)
Quantity
Facility Layout Definition
Product
Layouts
Fixed
Position
Layouts
Mixed Layouts Process Layouts
Number of Different Products
Objectives of Plant Layout

The main objective consists of organizing equipment
and working areas in the most efficient way, and at
the same time satisfactory and safe for the
personnel doing the work.
 Sense of Unity

Plant layout: Objectives
The feeling of being a unit pursuing the same objective.
Minimum Movement of people, material and
resources.
 Safety



In the movement of materials and personnel work flow.
Flexibility

In designing the plant layout taking into account the changes
over short and medium terms in the production process and
manufacturing volumes.
Objectives of Plant Layout


These main objectives are reached through the attainment of the
following facts:
 Congestion reduction.
 Elimination of unnecessary occupied areas.
 Reduction of administrative and indirect work.
 Improvement on control and supervision.
 Better adjustment to changing conditions.
 Better utilization of the workforce, equipment and services.
 Reduction of material handling activities and stock in process.
 Reduction on parts and quality risks.
 Reduction on health risks and increase on workers safety.
 Moral and workers satisfaction increase.
 Reduction on delays and manufacturing time, as well as increase
in production capacity.
All these factors will not be reached simultaneosly, so the best
solution will be a balance among them.
Factors affecting Plant
Layout
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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:








The factors affecting plant layout can be grouped
into 8 categories:




The factors affecting plant layout can be
grouped into 8 categories:
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.
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
(Cont.)

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.
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
(Cont.)

The factors affecting plant layout can be grouped
into 8 categories:

Machinery



Materials
Machinery
Labor
Material Handling
Waiting Time
Auxiliary Services
The building
Future Changes
Factors affecting Plant Layout
(Cont.)

Factors affecting Plant Layout
(Cont.)

Factors affecting Plant Layout
(Cont.)

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…
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Factors affecting Plant Layout
(Cont.)

The factors affecting plant layout can be grouped
into 8 categories:

Factors affecting Plant Layout
(Cont.)

Auxiliary Services

Support the main production activities at the plant:





The factors affecting plant layout can be
grouped into 8 categories:
 The building

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.
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.
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
(Cont.)

The factors affecting plant layout can be grouped
into 8 categories:

Future changes




Types of Plant Layout

The production process normally determines the
type of plant layout to be applied to the facility:

Types of Plant Layout
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 relayout.
Types of Plant Layout
(Cont.)

The production process normally determines the
type of plant layout to be applied to the facility:
Product oriented plant layout

Designed to produce a specific product efficiently
 Machinery and Materials are placed following the
product path.



Process oriented plant layout (Functional Layout).
Machinery is placed according to what they do and
materials go to them
 Group similar resources together

Fixed position plant layout

Product stays and resources move to it.
Cell Layout
Hybrid Layout that tries to take advantage of
different layouts types
 Combine aspects of both process and product
layouts.

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Product layout
Product Layout
Trays
Desserts
Salads
Main
Course
Product layout
Product layout
Product oriented plant layout
 Specialized equipment


This type of plant layout is useful when the production
process is organized in a continuous or repetitive way.



Continuous flow: The correct operations flow is reached
through the layout design and the equipment and machinery
specifications.
Repetitive flow (assembly line): The correct operations flow
will be based in a line balancing exercise, in order to avoid
problems generated by bottle necks.
The plant layout will be based in allocating a machine as
close as possible to the next one in line, in the correct
sequence to manufacture the product.
Raw matl.
storage
Finished
goods
storage
Fabrication
line-part B
Fabrication
Planer
line-part A
Lathe
Drill
Mill
Mill
Drill
Grinder
Mill
Assembly line
Drinks
Cashier
 High capital intensity & wide use of
automation
 Processing rates are faster
 Material handling costs are lower
 Less space required for inventories
 Less volume or design flexibility
Product Layout
Product layout
Receiving
Vegetabl
e
Espuela de Ferrocarril
Small number
of
high volume
products
Camiones
Camiones
Automatic
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Product Layout: Advantages &
Disadvantage
Product Layout: Shapes

Product oriented plant layout

a) Flujo en línea recta
d) Flujo en “L”
Advantages:




b) Flujo en “U”

d) Flujo circular ó en “O”

Disadvantages:




c) Flujo en serpentín
Reduced material handling activities.
Work In Process almost eliminated.
Minimum manufacturing time.
Simplification of the production planning and control systems.
Tasks simplification.
e) Flujo en “S”

No flexibility in the production process.
Low flexibility in the manufacturing times.
High capital investment.
Every workstation is critical to the process.- The lack of
personnel or shut down of a machine stops the whole process.
Monotonous work.
Product Layout: Suitability

Product oriented plant layout
Assembly line such as automobile factory.
Low variety, high volume production system.
 For standardized products, which have quite
stable demand in near future.


Process Layouts

Process oriented plant layout (Functional Layout)
This type of plant layout is useful when the production
process is organized in batches.
 Personnel and equipment to perform the same function are
allocated in the same area.
 The different items have to move from one area to another
one, according to the sequence of operations previously
established.
 The variety of products to produce will lead to a diversity of
flows through the facility.
 The variations in the production volumes from one period to
the next one (short periods of time) may lead to
modifications in the manufactured quantities as well as the
types of products to be produced.
Process layout
Manufacturing Process
Layout
Lathe Department

L
L
L
L
L
L
L
L
L
L
Drilling Department
M
M
D
D
D
D
M
M
D
D
D
D
Milling
Department
G
G
G
G
G
G
Grinding
Department
Receiving and
Shipping
P
P
Painting Department
A
A
A
Assembly
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Process Layouts
General purpose & flexible resources
Lower capital intensity & automation
 Higher labor intensity
 Resources have greater flexibility
 Processing rates are slower
 Material handling costs are higher
 Scheduling resources & work flow is more
complex
 Space requirements are higher

Process Layout: Advantages &
Disadvantage


Process Layout: Advantages &
Disadvantage

Process oriented plant layout

Disadvantages:



There is high degree of material handling. Parts may
have to backtrack in the same department.
Large work in-process inventory is common. This may
lead to more storage area.
Workers are more skilled. This is because of variety in
products and difference in design. Therefore, labour cost
is higher.
Process oriented plant layout
 Advantages:
Initial investment in process layout is low.
Varied degree of machine utilization may be
achieved in process layout as machine is not
dedicated to a single product.
 Greater flexibility and scope of expansion exist in
this layout


Process Layout: Advantages &
Disadvantage

Process oriented plant layout

Disadvantages:




Process Layout: Suitability
For non-standardized product.
For low volume, high variety manufacturing
environment.
 For frequent change in product design.
 For job-shop manufacturing.
 For very expensive machines like CNC milling,
co-ordinate measuring machine, etc.
Total cycle time is high. This is due to waiting in different
departments and longer material flow.
Inspection is more frequent which results in higher
supervision cost.
It is difficult to fix responsibility for a defect or quality
problem. The work moves in different departments in
which the machine preference is not fixed. Therefore,
which machine or which operator was faulty during a
quality lapse may be difficult to trace in some cases.
The production planning and control is relatively difficult
Comparison of Product and
Process Layouts

Product

w Description
Description
Process
w Sequential
arrangement of
activities
process w Continuous, mass
w Type of
of process
production, mainly
assembly
w Product
Product
w
w Demand
w Volume
Volume
w Equipment
Equipment
w
w
w
w Functional
grouping of
activities
w Intermittent, job
shop, batch
production, mainly
fabrication
Standardized, made w Varied, made to
to stock
order
Stable
w Fluctuating
High
w Low
Special purpose
w General purpose
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Fixed-Position Layouts
 In fixed position layout,
the main product being
produced is fixed at a
particular location.
Fixed Position Layout
Fixed-Position Layouts
 This type of layout is useful when the product
being processed is very big, heavy or difficult
to move.

Some examples of fixed position layout are
shipbuilding, aircraft assembly, wagon building,
etc.
Alternative Strategy


As much of the project as possible is completed
off-site in a product-oriented facility
This can
significantly
improve efficiency
but is only
possible when
multiple similar
units need to be created

Resources, such as
equipment, labor and
material are brought to
that fixed location.
Fixed-Position Layouts
 Typical of projects
 Highly skilled
labor
 Often low fixed
costs
 Typically high
variable costs
Fixed-Position Layout:
Advantages
 Advantages of Fixed Position
Layout
Easy for products which are difficult to move.
Flexibility for change in design, operation
sequence, labor availability, etc., exists in this
layout.
 This layout is very cost effective when many
orders of similar type are existing in different
stages of progress.
 Large project type of jobs such as construction
are suited in this layout.


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Fixed-Position Layout:
Limitations
 Limitations of Fixed Position Layout
High capital investment due to long duration
to complete a product.
 Space requirement for storage of material and
equipment is large.
 It requires careful project planning and
focused attention on critical activities
otherwise confusion, delay and conflict may
arise.

Cellular Layout - Work Cells
Cellular Layout
Improving Layouts by Moving to
the Work Cell Concept
Special case of product-oriented layout - in
what is ordinarily a process-oriented facility
 Consists of different machines brought
together to make a product
 Temporary arrangement only
 Example: Assembly line set up to produce
3000 identical parts in a job shop

Work Cells - Some Advantages
Reduced work-in-process inventory
 Less floor space required
 Reduced raw material and finished goods
inventories required
 Reduced direct labor costs
 Heightened sense of employee participation
 Increased utilization of equipment machinery
 Reduced investment in machinery and
equipment
Work Cell Advantages

Inventory
Floor space
Direct labor costs
Equipment
utilization
Employee
participation
Quality
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Requirements for Cellular
Production
Work Cell Floor Plan
Saws
Drills
Office
 Identification of families of products - group
technology codes
 High level of training and flexibility on the part
of the employees
 Either staff support or flexible, imaginative
employees to establish the work cells initially
Tool Room
Work Cell
Work Cells, Focused Work
Centers and the Focused Factory
Work Cell
A temporary assembly-line-oriented arrangement of
machines and personnel in what is ordinarily a
process-oriented facility
Example: job shop with rearranged machinery and
personnel to produce 30 unique control panels
Focused Work
Center
A permanent assembly-line-oriented arrangement of
machines and personnel in what is ordinarily a
process-oriented facility
Example: manufacturing of pipe brackets at a
shipyard
Focused Factory
A permanent facility to produce a product or
component in a product-oriented facility
Example: a plant to produce window mechanisms
for automobiles
CELLULAR OR GROUP
LAYOUT

Cellular layout is based on the group technology
(GT) principle. Therefore, it is also called as
group layout.
 Group Technology


Grouping outputs with the same characteristics to
families, and assigning groups of machines and workers
for the production of each family.
This layout is suitable for a manufacturing
environment in which large variety of products
are needed in small volumes (or batches).
Group Technology
CELLULAR OR GROUP LAYOUT
The group technology principle suggests that
parts, which are similar in design or
manufacturing operations, are grouped into one
family, called part-family.
 For each part-family a dedicated Cluster of
machines (called machine cell) are identified
 Generally, all the processing requirements of a
particular part-family are completed in its
corresponding machine cell. In other words, the
intercell transfer UT part should ideally be zero."

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Cellular Layout
Process (Functional) Layout
Group technology
Group (Cellular) Layout
 Group technology or cellular layout
The cellular layout is thus a combination of
process and product layout. Therefore, it
possesses the features of both. Cellular
manufacturing system (CMS) involves
decomposition of manufacturing system into
subsystems of similar parts/machines.
 CMS allows batch production to give economical
advantages similar to those of mass production
with additional advantages of flexibility, normally
associated with job shop production systems

T
T
T
CG
CG
T
T
T
SG
SG
M
M
D
D
D
T
T
T
M
M
T
D
D
M
D
SG
CG
CG
D
M
M
M
D
D
D
SG
Similar resources placed together
Group technology
Group Technology (CELL)
Layouts


Process Flows before the
Use of GT Cells
One of the most popular hybrid layouts uses Group
Technology (GT) and a cellular layout
GT has the advantage of bringing the efficiencies of a
product layout to a process layout environment
Process Flows after the Use
of GT Cells
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Cellular Layouts: How to?
Original Process Layout
Manufacturing cell: « Layout in which machines are
arranged in a cell that can process items that have similar
processing requirements ».
Operations Management, 3rd Canadian Edition, page 206
Assembly
4
 Identify families of parts with similar flow
paths
 Group machines into cells based on part
families
 Arrange cells so material movement is
minimized
 Locate large shared machines at point of use
Revised Cellular Layout
7
6
9
8
5
2
3
1
A
12
10
B
C
11
Raw materials
Direction of part movement within cell
A Manufacturing Cell
with Worker Paths
HM
Source: J.T. Black, “Cellular Manufacturing
Systems Reduce Setup Time, Make Small Lot
Production Economical.” Industrial
Engineering (November 1983).
VM
Assembly
8
10
Worker 3
9
12
6
Cell 3
11
4
Cell 1
Cell 2
7
2
1
3
5
A B C
Raw materials
Advantages and Disadvantages
of Cellular Layouts

Advantages
Reduced material
handling and transit
time
 Reduced setup time
 Reduced work-inprocess inventory
 Better use of human
resources
 Easier to control
 Easier to automate


Paths of three
workers
moving within
cell
Material
movement
Key:
S
= Saw
L
= Lathe
HM = Horizontal
milling machine
VM = Vertical milling
machine
G
= Grinder
VM
L
Worker 2
G
L
Final
inspection
S
Worker 1
In
Finished
part
Out
Suitability of CMS
Disadvantages
 The implementation of CMS can significantly
Expanded training
and scheduling of
workers
 Increased capital
investment
increase productivity, which is essential for
the survival in increasingly competitive
industries.
 Many large and medium, size manufacturing
firms have experienced quality improvements
after adopting CMS

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CMS and JIT
CMS and Batch Manufacturing
 CMS has wide applicability, since it can be
 Cell manufacturing is an important element in
implemented in both job-shop and assembly
lines.
 However, CMS is most suited for
organizations that have a degree or part
standardization and moderate batch size.
 The importance of CMS can be well realized,
as according to a study more than 75% of all
manufacturing units are engaged in the
production of a large variety of parts in
batches.
the successful implementation of Just in Time
(JIT).
 It reduces production related wastes:
1.
2.
3.
4.
CMS and FMS
inventory (WIP, finished goods or raw materials),
production set-up times,
insufficient job scheduling and
parts having long queues for a long time at
various work centers.
CMS and FMS

 CMS is the building block of Flexible
The applicability of CMS concept in FMS may be
justified on account of four reasons (Kusiak, 1986):
1. It is easy to process large volume of information with the
decomposed manufacturing system, such as CMS,
2. AGV (Automated Guided Vehicle) and robot are the most
common type of material-handling carriers in FMS.
Oftenly, the services of these material-handling carriers
are limited to few machines,
3. It is easy to manage the operational facilities in CMS as
compared to functional manufacturing. This is due to
limitation on cell size, and
4. There may be technological compulsions for grouping
some operations like forging machines and heat
treatment unit.
Manufacturing System (FMS).
 It is the first evolutionary step in
automation. In general, it is the FMS
with some manual operations.
Layouts Comparisons
 HIGH
low

Mass
Repetitive
Variety
Layout



Batch

HIGH 
Job Shop
low 
Comparison of layouts
Continuous
Volume
Product  Process
Project

Fixed

Process
Cellular
Product
13