AMITY GLOBAL
BUSINESS SCHOOL
Bangalore
1
MBA, Semester 2
Operations Management
Ms. Aarti Mehta Sharma
AMITY GLOBAL
BUSINESS SCHOOL
Facility Layout
Bangalore
2
AMITY GLOBAL
BUSINESS SCHOOL
Bangalore
Facilities Layout
The configuration of departments, work centers, and
equipment, with particular emphasis on movement of
work (customers or materials) through the system
• This could be for new plants or could be
• Improvements in layouts already in use to introduce
new methods and improvements in manufacturing
procedures.
3
AMITY GLOBAL
BUSINESS SCHOOL
Bangalore
Importance of Layout Decisions
• Requires substantial investments of money and effort
• Involves long-term commitments
• Has significant impact on cost and efficiency of
operations
4
AMITY GLOBAL
BUSINESS SCHOOL
Bangalore
Objectives of a good layout
•
•
•
•
•
•
•
•
•
•
•
•
Provide enough production capacity
Reduce material Handling costs
Reduce Congestion
Reduce accidents / hazards to personnel
Utilize labor efficiently
Provide for volume and product flexibility
Provide ease of supervision
Allow ease of maintenance
Allow high machine / equipment utilisation
The arrangement should be congruent with the flow of materials
Sequence of equipments
In addition to floor space, the vertical space should also be considered.
5
AMITY GLOBAL
BUSINESS SCHOOL
Bangalore
Costs
•
•
•
•
•
•
•
Cost of movement of materials from one work area to another
6
Cost of space
Cost of production delays, if any.
Cost of spoilage of materials
Cost of labor dissatisfaction and health risks
Cost of changes, if any
Cost of customer dissatisfaction due to poor service
AMITY GLOBAL
BUSINESS SCHOOL
Bangalore
Basic Layout Types
• Product layouts
• Process layouts
• Fixed-Position layout
• Cellular Manufacturing
• Combination layouts
7
AMITY GLOBAL
BUSINESS SCHOOL
Bangalore
• Product layout
– Layout that uses standardized processing operations to 8
achieve smooth, rapid, high-volume flow
• Suitable for assembling operations eg. Automobile industry
• No. of equipment large
• Volume of production large
• Variety of products is low ; Two products ---- two product
layouts
• Flow of materials
• Sequence of equipments
AMITY GLOBAL
BUSINESS SCHOOL
Bangalore
Product Layout
Raw
materials
Station
1
drilling
Material
and/or
labor
Material
and/or
labor
Station
2
machining
Material
and/or
labor
Station
3
Station
4
Heating
Painting
Material
and/or
labor
Used for Repetitive or Continuous Processing
9
Finished
item
AMITY GLOBAL
BUSINESS SCHOOL
Bangalore
10
AMITY GLOBAL
BUSINESS SCHOOL
Wine mfg
Bangalore
11
AMITY GLOBAL
BUSINESS SCHOOL
Pizza
Bangalore
12
AMITY GLOBAL
BUSINESS SCHOOL
Bangalore
Advantages of Product Layout
•
•
•
•
•
•
•
High rate of output
Low unit cost
Labor specialization not high
Low material handling cost
High utilization of labor and equipment
Established routing and scheduling
Routing accounting and purchasing
13
AMITY GLOBAL
BUSINESS SCHOOL
Bangalore
Disadvantages of Product Layout
• Creates dull, repetitive jobs
• Poorly skilled workers may not maintain equipment or
quality of output
• Fairly inflexible to changes in volume
• Highly susceptible to shutdowns
• Needs preventive maintenance
• Individual incentive plans are impractical
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AMITY GLOBAL
BUSINESS SCHOOL
Bangalore
Process Layout / Job Shop production
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•
•
•
•
Equipment performing similar functions is grouped together
Volume of manufacturing is low
Variety of products ( each customer is unique)
Example : Customised Cars
AMITY GLOBAL
BUSINESS SCHOOL
Bangalore
Process Layout
Process Layout
(functional)
16
Drilling
Heating
Painting
Casting
Machining
Packaging
Used for Intermittent processing
Job Shop or Batch
AMITY GLOBAL
BUSINESS SCHOOL
Bangalore
Process Layout
Milling
17
Assembly
& Test
Grinding
Drilling
Plating
Process Layout - work travels
to dedicated process centers
AMITY GLOBAL
BUSINESS SCHOOL
Bangalore
18
AMITY GLOBAL
BUSINESS SCHOOL
222
444
Mill
111 333
111
333
Lathes
222
111
444
Bangalore
222
Drill
Grind
3333
1111 2222
Heat
treat
19
Assembly
111
Gear
cutting
111
444
Exhibit
8.2GLOBAL
AMITY
BUSINESS SCHOOL
Process Layout for a Machine Shop
Bangalore
20
AMITY GLOBAL
BUSINESS SCHOOL
Bangalore
Advantages of Process Layouts
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•
•
•
•
Can handle a variety of processing requirements
Not particularly vulnerable to equipment failures
Equipment used is less costly
Possible to use individual incentive plans
AMITY GLOBAL
BUSINESS SCHOOL
Bangalore
Disadvantages of Process Layouts
•
•
•
•
•
•
•
In-process inventory costs can be high
Challenging routing and scheduling
Equipment utilization rates are low
Material handling slow and inefficient
Complexities often reduce span of supervision
Special attention for each product or customer
Accounting and purchasing are more involved
22
AMITY GLOBAL
Fixed
BUSINESS SCHOOL
Position Layout
• The position of product is
fixed
• Tools, Men and materials
come to the product
• Manufacture of Large
products such as
locomotives, boilers, ships,
hospital etc
Bangalore
23
AMITY GLOBAL
BUSINESS SCHOOL
Bangalore
Advantages
• Men and machines can be used for a wide variety of
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operations producing different products
• Investment on layout is very small
• Worker identifies himself with the product and feels pride in it.
• Cost and difficulty of transporting a bulky product is avoided
AMITY GLOBAL
BUSINESS SCHOOL
Bangalore
Cellular Layouts
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–
–
–
Layout in which machines are grouped into a cell
that can process items that have similar processing
requirements
The grouping into part families of items with similar
design or manufacturing characteristics
A complete product or part of a product is
manufactured
AMITY GLOBAL
BUSINESS SCHOOL
Bangalore
26
AMITY GLOBAL
BUSINESS SCHOOL
Bangalore
•
27
AMITY GLOBAL
Process
Flows
BUSINESS
SCHOOL
before the Use of GT Cells
Bangalore
28
AMITY GLOBAL
Process
Flows
BUSINESS
SCHOOL
after the Use of GT Cells
Bangalore
29
AMITY GLOBAL
BUSINESS SCHOOL
One worker cell
Machine
2
Machine
1
Bangalore
30
Machine
3
Materials in
Finished
goods out
Machine
5
Machine
4
AMITY GLOBAL
BUSINESS SCHOOL
Bangalore
31
AMITY GLOBAL
BUSINESS SCHOOL
Bangalore
Advantages
•
•
•
•
Key enabler of increased production velocity and flexibility
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The reduction of capital requirements.
Reduction of over production
Products move through the manufacturing process one-piece at
a time, at a rate determined by customers' needs
• Shifts worker responsibilities from watching a single machine,
to managing multiple machines in a production cell.
AMITY GLOBAL
BUSINESS SCHOOL
Bangalore
Service facility Layout
• Service facilities exist to bring together customers and
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facilities ( banks, hospitals ).
• Banks are designed around customer receiving and servicing
• Hospitals are designed around technology( X ray / radiology /
pathology machines), processing of patients (receiving
patients, settling accounts ) and operation efficiency ( surgery,
gynecological, patient recovery).
• Easy entrance and parking space are an essential requirement
• Process Layout
AMITY GLOBAL
BUSINESS SCHOOL
Bangalore
Arrangement of other facilities
• Receiving Department
- raw materials (vendor oriented services)
• Shipping Department
- finished goods are delivered to customers
End of the plant
• Store room
- raw materials, finished goods, partly finished goods and
supplies are stored
- close to the production centre
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AMITY GLOBAL
BUSINESS SCHOOL
• Inspection
- of purchased material (raw materials, parts,supplies)
- of work in process
- of finished groups
At every stage, every department
• Maintenance
- of machinery / building
- heating / air conditioning
- machine and equipment installation
- safety devices / fire protection
- collection and disposal of waste / garbage / refuse
Bangalore
35
AMITY GLOBAL
BUSINESS SCHOOL
• Employee Facilities
- time clocks
- toilets
- drinking water
- cafeteria
- safety measures
• Other Facilities
- power generators
- water filters
- chilling plant ( close to the boiler room )
Bangalore
36
AMITY GLOBAL
BUSINESS SCHOOL
•
•
•
•
•
•
Planning
Bangalore
By in house engg or planning department
37
Depends upon the product
Depends upon volume
Determine process
Determine flow of materials
Decide upon equipment( also for material handling) and work
centres
• Determine storage requirement
AMITY GLOBAL
BUSINESS SCHOOL
•
•
•
•
•
•
Decide upon labor – direct / indirect
Draw building specifications, floor plan
Preparation of detailed layout planning
Approval from Management
Preparation of work schedule
Construction starts
Bangalore
38
AMITY GLOBAL
BUSINESS SCHOOL
Bangalore
Tools and Techniques
•
•
•
•
•
•
Templates
Line Balancing
Analysing with Computers
Travel chart method
Load Distance method
Systematic Layout Planning
39
AMITY GLOBAL
BUSINESS SCHOOL
Load distance
analysis method
Bangalore
• For comparison of alternative layouts
40
• Multiply actual distance moved and load (units)
• Try to minimize the same
Illustration
• Two layouts A and B are given
• Data consists of the facility's products, distance between
depts. and travel between depts.
• Determine the best layout
AMITY GLOBAL
BUSINESS SCHOOL
Bangalore
Layout A
8
4
10
2
5
3
1
9
6
7
Layout B
7
1
9
6
3
4
10
2
5
8
41
AMITY GLOBAL
BUSINESS SCHOOL
Dept.
movement
Bangalore
Dist bet dept(ft) Dept
3–9
Dist bet dept
(ft)
A
B
30
20
10
4–5
30
30
10
10
4–7
10
10
1 - 10
10
10
4 – 10
10
10
2–5
10
10
5–6
10
10
2–6
20
20
6–9
10
10
2 – 10
10
10
7–8
20
50
3-6
40
10
8 - 10
20
30
combination
movement
1–5
A
30
B
30
1–7
10
1–9
combination
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AMITY GLOBAL
BUSINESS SCHOOL
Products
Bangalore
Department
Processing
Sequence
No. of products processed
per month
A
1-5-4-10
1000
B
2-6-3-9
2000
C
2-10-1- 9
3000
D
1-7-8-9
1000
E
2-5-6-9
2000
F
1-7-4-10
4000
43
AMITY GLOBAL
BUSINESS SCHOOL
Product
Load / pm
Bangalore
Distance per product Load * Distance
Layout A
Layout B
Layout A
Layout B
A
1000
70
70
70,000
70,000
B
2000
90
50
1,80,000
1,00,000
C
3000
30
30
90,000
90,000
D
E
1000
2000
50
30
90
30
50,000
60,000
90,000
60,000
F
4000
30
30
1,20,000
1,20,000
5,70,000
5,30,000
Total
44
AMITY GLOBAL
BUSINESS SCHOOL
Bangalore
Systematic Layout Planning
• Service facilities
• Material flow not critical
• Develop a “relationship chart” / Richard Muther’s
half – matrix / fish diagram
• Chart rates the relative importance of locating one
dep't close to another
• Ratings are indicated by code letters a,e,i,o,u,x
• Developed by trail and error
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AMITY GLOBAL
BUSINESS SCHOOL
Reasons (optional)
Code
1
2
Reason
3
Common personnel
4
Contact necessary
5
Share same space
6
psychology
Bangalore
46
Type of customer
Ease of supervision
AMITY GLOBAL
BUSINESS SCHOOL
Value
Closeness
Bangalore
Line code
47
A
Absolutely Necessary
E
Especially Important
I
Important
O
Ordinary
U
Unimportant
X
Undesirable
AMITY GLOBAL
BUSINESS SCHOOL
Bangalore
48
AMITY GLOBAL
BUSINESS SCHOOL
Bangalore
Nearness Diagram
49
Credit
Toy
Wine
Camera
Candy
AMITY GLOBAL
BUSINESS SCHOOL
5
Bangalore
2
4
50
1
3
AMITY GLOBAL
Assembly
BUSINESS SCHOOL
line balancing
Bangalore
• Typically, sequence of tasks required to assemble a product is
51
dictated by its design.
• For many assemblies that consist of a large number of tasks,
there are a large number of ways to group tasks together into
individual workstations while still ensuring the proper
sequence of work.
• Assembly line balancing is a technique to group tasks among
workstations so that each work-station has, ideally, the same
amount of work.
AMITY GLOBAL
Assembly
BUSINESS SCHOOL
line balancing
Bangalore
• Example: if it took 90 seconds to assemble a pen, and the work
was divided evenly among three workstations, then each 52
workstation would be assigned 30 seconds of work content per
unit.
Basic assumptions:
• No idle time per workstations; and the output of the first
workstation immediately becomes input to the next
workstation.
• In the current example, there are no bottleneck workstations,
and the flow of pens through the line is continuous.
AMITY GLOBAL
Assembly
BUSINESS SCHOOL
line balancing
Bangalore
• Objective of assembly line balancing is to minimize the
imbalance among workstations while trying to achieve a 53
desired output rate.
• So either, one can minimize the number of workstations for a
given production rate or maximize the production rate for a
given number of workstations.
• Though typically carried out at the design stage of the
assembly line, line balancing is also required whenever there is
a change in product design and/or new product introduction.
AMITY GLOBAL
Assembly
BUSINESS SCHOOL
•
1.
2.
3.
•
•
line balancing
Input for assembly line balancing:
A set of tasks to be performed and the time required to
perform each task
The precedence relations among the tasks- that is, the
sequence in which tasks must be performed, and
The desired output rate or forecast of demand for the
assembly line.
Bangalore
54
The first two requirements can be obtained from the product
design documents
The third one is specified by the management.
AMITY GLOBAL
Assembly
BUSINESS
SCHOOLline
•



balancing: Example
Bangalore
An activity consisting of three tasks: A, B and C.
Task A is first, and takes 0.5 minutes
Task B is next, and takes 0.3 minutes
Task C is the last, and takes 0.2 minutes.
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• Since, all the tasks must be performed to complete one part,
total time required to complete one part is
0.5+0.3+0.2 = 1 minute.
AMITY GLOBAL
Assembly
BUSINESS
SCHOOLline
balancing: Example
Bangalore
• Suppose that one worker performs all three tasks
(sequentially).
• Then in an 8-hour shift, the worker could produce –
480 parts/day.
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AMITY GLOBAL
BUSINESS SCHOOL
•
•
•
•
Line Balancing
Bangalore
Assembly line study
Equally divides the work among workers
No. of employees is minimised
Most common is a moving conveyor that passes a
series of work stations in a uniform time interval
called workstation time cycle
• Assembly line balancing is the assigning of tasks to a
series of workstations in such a manner that each
workstation has no more than can be done in the work
station time
• Idle time across all workstations is minimized
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AMITY GLOBAL
BUSINESS SCHOOL
Bangalore
• Precedence relationship : the order in which tasks must be
58
performed in the assembly process.
• Precedence Diagram : circles represent tasks; arrows indicate
the order of task performance
• Workstation cycle time :
= production time per day
reqd output per day (in units)
• Nt (no. of workstations) = sum of task times
cycle time
AMITY GLOBAL
BUSINESS SCHOOL
Bangalore
• Assign tasks to workstation 1, 2, 3 ….
• Na = actual no. of workstations
• Efficiency (idle time is minimised)
= sum of task times(T)
no. of workstations(Na) × workstation cycle time
59
AMITY GLOBAL
BUSINESS SCHOOL
Illustration
Bangalore
• The Model J Wagon is to be assembled on a conveyor
belt. 500 wagons are required per day. Production
time per day is 420 minutes, and the assembly steps
and times for the wagon are given in the table. Find
the balance that minimizes the number of
workstations, subject to cycle time and precedence
constraints.
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AMITY GLOBAL
BUSINESS SCHOOL
Bangalore
61
ASSEMBLY STEPS AND TIMES
FOR MODEL J WAGON
AMITY GLOBAL
BUSINESS
SCHOOL
Task Task Description
Time
A
B
C
D
E
F
G
H
I
45
11
9
50
15
12
12
12
12
Position rear axle
J
8
K
9
195
Position wagon handle shaft on front axle
assemby
Tighten bolt and nut
Hand fasten four screws to nuts
Tighten rear axle
Bangalore
Tasks that
must precede
A
B
62
Position front axle
Tighten front axle
Position rear wheel # 1;fasten hubcap
Position rear wheel # 2;fasten hubcap
Position rear wheel # 3;fasten hubcap
Position rear wheel # 4;fasten hubcap
D
C
C
E
E
F,G,H,I
J
AMITY GLOBAL
BUSINESS SCHOOL
Precedence GraphBangalore
F
• A
63
B
C
G
D
E
H
I
J
K
AMITY GLOBAL
BUSINESS SCHOOL
Bangalore
64
C = production time per day = 60 s * 420 min = 50.4
output per day
500
Convert to seconds as task time is in seconds
Minimum no. of workstations required
= 195 / 50.4 = 3.87 = 4
AMITY GLOBAL
BUSINESS SCHOOL
Station 1
Task
A
Task time
45
Remaining
time
5.4 idle
Station 2
D
50
0.4 idle
Station 3
B
11
39.4
C
9
30.4
F
12
18.4
G
12
6.4
E
15
35.4
H
12
23.4
I
12
11.4
J
8
3.4idle
K
9
41.4 idle
Station 4
Station 5
Bangalore
65
AMITY GLOBAL
BUSINESS SCHOOL
• Efficiency = T
= 195
= 0.77
NaC 5 * 50.4
77 %
Bangalore
66
AMITY GLOBAL
BUSINESS SCHOOL
Bangalore
Quality of a good layout
•
•
•
•
•
•
•
•
•
•
Minimise materials handling cost
Effective use of available area
Minimisation of production delays
Improved Quality Control / Avoidance of unnecessary and
costly changes
Minimum Equipment Investment
Avoidance of bottlenecks
Better production control
Better Supervision
Improved utilisation of labor
Improved Employee Morale
67
AMITY GLOBAL
BUSINESS SCHOOL
Bangalore
2. A company wants to add a new wing to its present
manufacturing shop to manufacture certain products. The68
two alternative layouts being considered are as below :
LAYOUT A
1 2
4
5
6
3
7
LAYOUT B
2
5
6
3
1
4
7
AMITY GLOBAL
BUSINESS SCHOOL
Bangalore
Trips between
departments
Distances between Departments
Layout A
Layout B
1–2
24
50
1–3
24
30
1–4
38
46
2–3
44
20
2–4
30
72
3–4
44
52
4–5
50
40
5–6
50
44
5–7
50
60
6-7
40
40
69
AMITY GLOBAL
BUSINESS SCHOOL
Bangalore
Sequence of processing is given below. Use load distance
analysis to determine best layout
Products
Sequence
Batch size
P1
1-2-3-4-5-6-7
1400
P2
1-2-4-5-6-7
200
P3
1-3-4-5-6-7
1200
P4
1-3-4-5-7
300
P5
1-4-5-6-7
200
70
AMITY GLOBAL
BUSINESS SCHOOL
Bangalore
3. Arrange six departments 1,2,3,4,5 and 6 in the facility
outline shown below so that the nearness priorities
shown in the TABLE are satisfied.
71
AMITY GLOBAL
BUSINESS SCHOOL
Deptt
Bangalore
2
3
4
5
6
72
1. Reception
2.X Ray
3. Surgery
4.Examining rooms
5.Lab
6. Nurses station
500 5
10
200
0
10
300
0
8
100
0
400
0
15
3
AMITY GLOBAL
BUSINESS SCHOOL
Bangalore
73
Department 1
Department 2
Department 3
Department 4
Department 5
Department 6
AMITY GLOBAL
BUSINESS SCHOOL
4.
Bangalore
X Agri products is planning to set up a regional warehouse
in north eastern Maharashtra. M/s Shivajirao & Co..M/s 74
Patil Farms,M/s Aras & Brothers, and M/s Jambhekar &Co.
are its main clients in that area. The business volume with
the above four is roughly in the ratio 5:4:3:2 . The distances
of the clients from Lakshmipur, a town in that area :
Shivajirao 50 km North
Patil
100 km North east
Aras
75 km South West
Jambhekar 45 km east
Where, wrt Lakshmipur, should X Agri Poducts locate their
warehouse ?
AMITY GLOBAL
BUSINESS SCHOOL
Bangalore
5. Manufacturing Engineers at Suny
Manufacturing were working on a new
remote controlled Monster Truck. They
hired a production consultant to help them
determine the best type of production
process to meet the forecasted demand fo
this new product. The consultant
recommended that they use an assembly
line that will produce 600 Monster Trucks
per day to meet the demand forecast.
75
AMITY GLOBAL
BUSINESS SCHOOL
Bangalore
The workers of the plant work 8 hours per
day. The task information for the new
Monster Truck is given in the table :
76
AMITY GLOBAL
BUSINESS SCHOOL
Task
Task Time(in secs) Preceding Tasks
A
B
28
13
C
D
E
35
11
20
B
A
C
F
G
H
I
6
23
25
37
D,E
F
F
G
J
K
Total
11
27
236
G,H
I,J
Bangalore
77
AMITY GLOBAL
BUSINESS SCHOOL
• Draw the precedence diagram
• What is the reqd cycle time ?
• Calculate Nt and Na
Bangalore
78
AMITY GLOBAL
BUSINESS SCHOOL
• C= 60 * 480 / 600 = 48 s
• Nt= 236 /48 = 4.92 = 5
• Na = 6
Bangalore
79