Module IV
Location Planning
Capacity Planning
and
Layout Planning
Facility Location Planning:
Decision Factors
Availability
Of Power
Proximity
To Raw
Materials
Connectivity
With Air/Rail
& Road
SocioEconomic
Environment
Proximity
To Market
Supportive
Govt. Policies
Facility
Location
Planning
Residential
Facility
Availability
Of Skilled
Labour
Proximity To
Subcontractor
Low
Construction
Cost
Land
Availability
At low Cost
Factors in International Location Planning
Offensive in
competitor’s
home country
Trade
barriers
International
customers
Power &
prestige
International
competition
International
Facility
Location
Planning
Synergy
Regulations
Economies
of scale
Additional
resources
Exploitation
of firm
specific
advantages
Low costs
Incentives
Location Decision
Relevant Factors
Market related issues
Cost related issues
Market for products and services
Wage rates
Raw Material availability
Transportation costs
Number and proximity of suppliers
Taxes and other tariff issues
Availability of skilled labour
Quality of Infrastructure
Regulatory & Policy issues
Other issues
Government & Economic stability
Culture
Quality of legal and other institutions Climate
Trading blocks and trading agreements Quality of Life
Location Planning Methods
• One Supply Point – Multiple Demand Centers
– Location factor rating
– Centre of Gravity Method
– Load Distance Method
• Multiple Supply Points – Multiple Demand Centers
– Transportation Model
Location Factor Rating Method
Steps
•
•
•
•
Identify and list down all the relevant factors for the
location decision
Establish the relative importance of each factor in the
final decision
Rate the performance of each demand location using
a rating mechanism
Compute a total score for each location based on its
performance against each factor and rank them in the
decreasing order of the score
Example
• A manufacturer of garments is actively considering five alternative
locations for setting up its factory.
• The locations vary in terms of the advantages that it provides to the firm.
Hence the firm requires a method of identifying the most appropriate
location.
• Based on a survey of its senior executives the firm has arrived at six
factors to be considered for final site selection.
• The ratings of each factor on a scale of 1 to 100 provide this information.
• Further, based some detailed analysis of both the qualitative and
quantitative data available for each of the location, the rating for the
locations against each factor has also been arrived at (on a scale of 0 to
100).
• Using this information obtain a ranking of the alternative locations.
Example
Rating of each locations against the factors
Factor Ratings
Factors
Availability of infrastructure
Size of the market
Industrial relations climate
Tax benefits and concessions
Availability of cheap labour
Nearness to port
Rating
90
60
50
30
30
65
Factors
Location 1 Location 2 Location 3 Location 4 Location 5
Availability of infrastructure
20
40
60
35
55
Size of the market
30
30
40
60
80
Industrial relations climate
80
30
50
60
50
Tax benefits and concessions
80
20
10
20
20
Availability of cheap labour
70
70
45
50
50
Nearness to port
20
40
90
50
60
Solution to Example
Rating
90
60
50
30
30
Relative
weights
0.28
0.18
0.15
0.09
0.09
Nearness to port
65
0.20
Sum of all factor ratings
325
1.00
Factors
Availability of infrastructure
Size of the market
Industrial relations climate
Tax benefits and concessions
Availability of cheap labour
Factors
Availability of infrastructure
Size of the market
Industrial relations climate
Tax benefits and concessions
Availability of cheap labour
Nearness to port
Overall score for the locations
Ranking of the locations
Relative
weights
0.28
0.18
0.15
0.09
0.09
0.20
Overall rating for location 5 = 55*0.28 + 80*0.18 +
50*0.15 + 20*0.09 + 50*0.09 + 60*0.20 = 56.15
Overall rating for location 3 = 60*0.28 + 40*0.18 +
50*0.15 + 10*0.09 + 45*0.09 + 90*0.20 = 54.77
Location 1 Location 2 Location 3 Location 4 Location 5
20
40
60
35
55
30
30
40
60
80
80
30
50
60
50
80
20
10
20
20
70
70
45
50
50
20
40
90
50
60
41.23
4
37.54
5
54.77
2
46.46
3
56.15
1
11-10
Plant Location Methodology: Transportation Method of Linear Programming
• Transportation method of linear
programming seeks to minimize
costs of shipping n units to m
destinations or its seeks to
maximize profit of shipping n units
to m destinations
11-11
Plant Location Methodology: Centroid Method
• The centroid method is used for locating
single facilities that considers existing
facilities, the distances between them,
and the volumes of goods to be shipped
between them
• This methodology involves formulas used
to compute the coordinates of the twodimensional point that meets the
distance and volume criteria stated
above
11-12
Plant Location Methodology: Example of Centroid Method
• Centroid method example
– Several automobile showrooms are located
according to the following grid which represents
coordinate locations for each showroom
S ho wro o m
Y
Q
No o f Z-Mo b ile s
s o ld p e r mo nth
(790,900)
D
A
1250
D
1900
Q
2300
(250,580)
A
(100,200)
(0,0)
X
Question: What is the best location for a new Z-Automobile
Warehouse/Temporary storage facility considering only
distances and quantities sold per month?
11-13
Plant Location Methodology: Centroid Method Formulas
Cx =
d V
V
ix
i
Cy =
i
Where:
Cx = X coordinate of centroid
Cy = X coordinate of centroid
dix = X coordinate of the ith location
diy = Y coordinate of the ith location
Vi = volume of goods moved to or from ith
location
d V
V
iy
i
i
11-14
Plant Location Methodology: Example of Centroid Method (Continued):
Determining Existing Facility Coordinates
To begin, you must identify the
existing facilities on a twodimensional plane or grid and
determine their coordinates.
Y
Q
(790,900)
D
(250,580)
A
(100,200)
(0,0)
You must also have the
volume information on the
business activity at the
existing facilities.
S ho wro o m
X
No o f Z-Mo b ile s
s o ld p e r mo nth
A
1250
D
1900
Q
2300
11-15
Plant Location Methodology: Example of Centroid Method (Continued): Determining the
Coordinates of the New Facility
You then compute the new coordinates using the formulas:
Cx =
100(1250) + 250(1900) + 790(2300)
2,417,000
=
= 443.49
1250 + 1900 + 2300
5,450
200(1250) + 580(1900) + 900(2300)
3,422,000
Cy =
=
= 627.89
1250 + 1900 + 2300
5,450
You then take the coordinates and place them on the map:
Y
New
location
of facility
Z about
(443,627)
Q
(790,900)
D
Z
(250,580)
A
(100,200)
(0,0)
X
S ho wro o m
No o f Z-Mo b ile s
s o ld p e r mo nth
A
1250
D
1900
Q
2300
Load Distance Method
• Enables a location planner to evaluate two or more
potential candidates for locating a proposed facility
vis-à-vis the demand (or supply) points
• Provides an objective measure of total loaddistance for each candidate
Example
• Coordinates of existing Demand Centers ( A-B-C-D) and corresponding
volume of Demands are given on table on Left
• Based on an initial survey of possible sites , the manufacturer identified
four locations for Supply Centers (1-2-3-4) . Coordinates are given on
table in right.
• What is the best location for the proposed new facility?
A
B
C
D
Existing Supply Points
xi
yi
125
550
350
400
450
125
700
300
Wi
200
450
175
150
Candidates for proposed facility
Xj
Yj
1
300
500
2
200
500
3
500
350
4
400
200
Multiple Supply & Demand Points
Grid Map
Candidate for proposed facility
Distance in Kilometres
Existing Demand (or supply) point
600
A (125,550), 200
500
1 (300,500)
400
B (350,400), 450
2 (200,500)
3 (500,350)
300
D (700,300), 150
200
4 (400,200)
C (450,125), 175
100
100
200
300
400
500
600
Distance in Kilometres
700
Solution to Example
n
LD j 
Dij  ( xi  X j ) 2  ( y i  Y j ) 2
D
ij
*Wi
i 1
DA1  ( x A  X 1 ) 2  ( y A  Y1 ) 2  (125  300) 2  (550  500) 2  (1752  (50) 2  182.00
Dij values
A
B
C
D
1
182.00
111.80
403.89
447.21
2
90.14
180.28
450.69
538.52
3
425.00
158.11
230.49
206.16
4
445.11
206.16
90.14
316.23
LDj values
1
2
3
4
224474.41 258801.57 227410.05 245000.8
Load
Wi
200
450
175
150
Multi-facility location problem
Transportation Model
• Locating distribution centers for nation-wide distribution of products is
one typical example belonging to this category
• Decisions variables in a multiple location – multiple candidate problem
– Identifying k out of n candidates for locating facilities
– Which of the demand points will be served by each of these locations
and to what extent
• the problem is one of managing network flows of satisfying a set
demand points using a combination of supply points
• The transportation model is ideally suited for solving this
combinatorial optimisation problem
Multiple facilities location problem
Transportation table (Example 7.4.)
Warehouse A
Warehouse B
Warehouse C
Warehouse D
Demand
Market 1
100
Market 2
70
Market 3
50
Market 4
30
Market 5
40
30
95
40
125
50
75
20
65
40
30
20
40
95
85
80
2000
1500
1200
Warehouse A
Solution using
Vogal’s Approximation
Method (VAM)
2800
Market 1
70
3700
1100
10000
Market 2
40
Market 3
10
65
0
Market 4 Market 5
0
0
2800
100
95
10
Supply
2900
2300
300
55
0
400
0
Warehouse D
Demand
Problem
2300
2000
Warehouse C
2900
2500
0
Warehouse B
Supply
2000
35
20
900
20
1100
1500
0
2400
65
1200
65
2800
50
2500
3700
1100
10000
5-22
Capacity Planning
• Capacity can be defined as the ability to hold,
receive, store, or accommodate
• Strategic capacity planning is an approach for
determining the overall capacity level of
capital intensive resources, including facilities,
equipment, and overall labor force size
5-23
Capacity Utilization
Capacity used
Capacity utilization rate 
Best operating level
• Where
• Capacity used
–
rate of output actually achieved
• Best operating level
–
capacity for which the process was designed
5-24
Best Operating Level
Example: Engineers design engines and assembly lines to
operate at an ideal or “best operating level” to maximize
output and minimize ware
Average
unit cost
of output
Underutilization
Overutilization
Best Operating
Level
Volume
5-25
Example of Capacity Utilization
• During one week of production, a plant
produced 83 units of a product. Its historic
highest or best utilization recorded was 120
units per week. What is this plant’s capacity
utilization rate?

Answer:
Capacity utilization rate =
Capacity used
Best operating level
= 83/120
=0.69 or 69%
5-26
Economies & Diseconomies of Scale
Economies of Scale and the Learning Curve working
Average
unit cost
of output
100-unit
plant
200-unit
plant
300-unit
plant
400-unit
plant
Diseconomies of Scale start working
Volume
5-27
Capacity Flexibility
• Flexible plants
• Flexible processes
• Flexible workers
5-28
Strategies For Capacity Augmentation
• Add New Capacity
• Debottleneck existing Capacity
• Locate External Sources of Capacity
5-29
Example of a Decision Tree Problem
A glass factory specializing in crystal is experiencing a substantial
backlog, and the firm's management is considering three courses of
action:
A) Arrange for subcontracting
B) Construct new facilities
C) Do nothing (no change)
The correct choice depends largely upon demand, which may be
low, medium, or high. By consensus, management estimates the
respective demand probabilities as 0.1, 0.5, and 0.4.
5-30
Example of a Decision Tree Problem (Continued): Step 1. We start by drawing the
three decisions
A
B
C
5-31
Example of a Decision Tree Problem (Continued): The Payoff Table
The management also estimates the profits when choosing from the three
alternatives (A, B, and C) under the differing probable levels of demand. These
profits, in thousands of dollars are presented in the table below:
A
B
C
0.1
Low
10
-120
20
0.5
Medium
50
25
40
0.4
High
90
200
60
5-32
Example of Decision Tree Problem (Continued): Step 2. Add our possible states of
nature, probabilities, and payoffs
High demand (0.4)
Medium demand (0.5)
Low demand (0.1)
A
High demand (0.4)
B
Medium demand (0.5)
Low demand (0.1)
$90k
$50k
$10k
$200k
$25k
-$120k
C
High demand (0.4)
Medium demand (0.5)
Low demand (0.1)
$60k
$40k
$20k
5-33
Example of Decision Tree Problem (Continued): Step 3. Determine the
expected value of each decision
High demand (0.4)
Medium demand (0.5)
$62k
Low demand (0.1)
$90k
$50k
$10k
A
EVA=0.4(90)+0.5(50)+0.1(10)=$62k
5-34
Example of Decision Tree Problem (Continued): Step 4. Make decision
High demand (0.4)
Medium demand (0.5)
$62k
A
Low demand (0.1)
$80.5k
B
High demand (0.4)
Medium demand (0.5)
Low demand (0.1)
$90k
$50k
$10k
$200k
$25k
-$120k
C
High demand (0.4)
$46k
Medium demand (0.5)
Low demand (0.1)
$60k
$40k
$20k
Alternative B generates the greatest expected profit, so our choice
is B or to construct a new facility
Facility Layout
Facility Layout means planning for:
• Location of machines
• Workstations
• Utilities
• Restrooms
• Offices
• Warehouses
Facility Layout Planning
• Criteria for Manufacturing operations layout:
 Flexibility for Products’ volume
 Products variety & future expansion
 Eliminating unproductive materials-handling
 Ease for Plant Operations & Maintenance
 Safety, Health & Environment considerations
 Fulfillment of Other Statutory requirements
Layout Planning for Service operations
• Criteria for layout design:
 Customer comfort & convenience
 Aesthetics & Appeal value
 Attractive display of merchandise
 Classification & Clustering
 Stock Rotation for shelf life
 Adequate passage for movement
 Unobstructed visual communication
Layout Planning for Warehouse operations
• Criteria for layout design:
 Place for Loading & Unloading operations
 Storage according to Classification Codes
 Consideration for physical size, shape
and weight of materials under storage
 Consideration for shelf life & preservation
 Adequate passage for materials movement
 Centralized workstation for warehouse keeper
Layout Planning for Office operations
• Criteria layout design:
 Inline with existing organization structure
 Aesthetics & Appeal value
 Elimination of unproductive movement of
personnel including visitors
 Privacy of workstations, records & documents
 Reception, Meeting Place & Pantry
Facility Layout Planning
• Criteria for Office operations layout:
 Inline with existing organization structure
 Aesthetics & Appeal value
 Elimination of unproductive movement of
personnel including visitors
 Privacy of workstations, records & documents
 Reception, Meeting Place & Pantry
Load-Distance Analysis in Process Layouts
• Load means number of operations carried out at the work
station.
• Sequence of Processing means pre-designed process flow for
carrying out operations
• Distance refers to physical distance of movement from one
work station to another in the process chain
• Load – Distance means the quantum of work associated with
each sequential operation carried out on the load
In short Load X Distance = Load Distance
Sequential Distance Calculation
Layout Option A
1
2
5
3
4
6
7
8
9
Product
Sequence Sequential
Distance
X
4-6-37-8-9
10+10+10
+10+10+1
0
= 60
Y
5-2-17-9
10+10+10
+10+10+1
0
= 60
Z
3-4-78-9
10+10+10
+10+10
= 50
Sequential Distance Calculation
Layout Option B
5
3
4
9
6
1
2
7
8
Product
Sequence Sequential
Distance
X
4-6-37-8-9
10+10+10
+10+10+1
0+10+10+
10
= 90
Y
5-2-17-9
10+10+10
+10+10+1
0+10+10+
10
=90
Z
3-4-78-9
10+10+10
+10+10+1
0+10+10
= 80
Load-Distance Calculation
Layout Option A
X
Y
Z
4-6-37-8-9
10+10+10
+10+10+1
0
= 60
5-2-17-9
10+10+10
+10+10+1
0
=60
3-4-78-9
10+10+10
+10+10
= 50
Product
Load
Load
Distance
X
1000
1000 X 60
=60,000
Y
3000
3000 X 60
=180,000
Z
1000
1000 X 50
50,000
Total Load Distance =290,000
Load-Distance Calculation
Layout Option B
X
Y
Z
4-6-37-8-9
10+10+10
+10+10+1
0+10+10+
10
= 90
5-2-17-9
10+10+10
+10+10+1
0+10+10+
10
=90
3-4-78-9
10+10+10
+10+10+1
0+10+10
= 80
Product
Load
Load Distance
X
1000
1000 x 90
= 90,000
Y
3000
3000 X 90
=270,000
Z
1000
1000 X 80
80,000
Total Load Distance =440,000
Sequential Distance Calculation
Layout Option A
1
3
7
2
4
8
Layout Option B
5
3
4
9
6
1
2
7
8
5
6
9
Load Distance: 290,000
Load Distance: 440,000
Closeness Rating
• Closeness Rating Technique is an
effective tool in Service Layout
Planning
• Layout of work stations is
designed on the basis of
desirable Closeness ( Nearness )
of a set of functions associated
with the operation.
• Closeness is prioritized or rated
according to the necessity &
importance as follows:
Closenes
s Rating
Importance
1
Absolutely
Necessary
2.
Highly Important
3.
Important
4.
Slightly Important
5.
Unimportant
6.
Undesirable
D1
2
4
D2
1
6
D3
D4
4
1
5
4
3
2
2
D8
1
D9
4
3
1
6
4
3
6 1
3
6
5
5
5
5
4
5
4
5
5
6
D6
5
4
4
D5
D7
4
5
Closeness Logic
Rating 1: Most Important
• D1 = D9
• D9 = D8
• D8 = D4
• D4 = D3
• D4 = D1
Rating 2: Important
• D1 – D2
• D5 – D7
• D7- D9
Rating 6: Least Important
• D2 # D3
• D2 # D8
• D5 # D6
• D4 # D9
Rating5: Unimportant
• D6 / D7
• D2 / D4
• D6 / D8
• D4 / D7
• D3 / D7
• D2 / D7
• D1 / D8
Proposed Layout
D3
D4
D8
D7
D1
D9
D5
D2
D6
Closeness Rating
Closenes
• Closeness Rating Technique is an
s Rating
effective tool in Service Layout
Planning
1
• Layout of work stations is
designed on the basis of
2.
desirable Closeness ( Nearness )
for Office operations
of a set of functions associated
with the operation.
3.
• Closeness is prioritized or rated
according to the necessity &
importance as follows:
4.
Importance
Absolutely
Necessary
Highly Important
Important
Slightly Important
5.
Unimportant
6.
Undesirable
Layout of a Hospital
Admin
Emergency
Lab
D3
OPD
D4
D7
Billing
D1
D5
OT
D2
Pharmacy
D8
Indoor
D9
X-Ray
D6
Closeness Logic
Rating 1: Most Important
• D1 = D9
• D9 = D8
• D8 = D4
• D4 = D3
• D4 = D1
Rating 2: Important
• D1 – D2
• D5 – D7
• D7- D9
Rating 6: Least Important
• D2 # D3
• D2 # D8
• D5 # D6
• D4 # D9
Rating5: Unimportant
• D6 / D7
• D2 / D4
• D6 / D8
• D4 / D7
• D3 / D7
• D2 / D7
• D1 / D8
D1
2
4
D2
1
6
D3
D4
4
1
5
4
3
2
2
D8
1
D9
4
3
1
6
4
3
6 1
3
6
5
5
5
5
4
5
4
5
5
6
D6
5
4
4
D5
D7
4
5
Proposed Layout
D3
D4
D8
D7
D1
D9
D5
D2
D6
7A-56
Facility Layout
Defined
Facility layout can be defined as the process by which the placement
of departments, workgroups within departments, workstations,
machines, and stock-holding points within a facility are
determined
This process requires the following inputs:
– Specification of objectives of the system in terms of output and
flexibility
– Estimation of product or service demand on the system
– Processing requirements in terms of number of operations and
amount of flow between departments and work centers
– Space requirements for the elements in the layout
– Space availability within the facility itself
7A-57
Basic Production Layout Formats
• Workcenter (also called job-shop or
functional layout)
• Assembly Line (also called flow-shop
layout)
• Manufacturing cell Layout
• Project Layout
7A-58
Process Layout: Interdepartmental Flow
• Given
–
–
–
The flow (number of moves) to and from all
departments
The cost of moving from one department to
another
The existing or planned physical layout of the
plant
• Determine
–
The “best” locations for each department, where
best means maximizing flow, which minimizing
costs
7A-59
Process Layout: Systematic Layout Planning
• Numerical flow of items between workcenters
–
–
Can be impractical to obtain
Does not account for the qualitative factors that
may be crucial to the placement decision
• Systematic Layout Planning
–
–
Accounts for the importance of having each
department located next to every other
department
Is also guided by trial and error
•
Switching workcenters then checking the results of the
“closeness” score
7A-60
Example of Systematic Layout Planning: Reasons for Closeness
Code
Reason
1
Type of customer
2
Ease of supervision
3
Common personnel
4
Contact necessary
5
Share same price
6
Psychology
7A-61
Example of Systematic Layout Planning:
Importance of Closeness
Line
code
Numerical
weights
Value
Closeness
A
Absolutely necessary
16
E
Especially important
8
I
Important
4
O
Ordinary closeness OK
2
U
Unimportant
0
X
Undesirable
80
7A-62
Example of Systematic Layout Planning: Relating Reasons and Importance
From
To
1. Credit department
I
6
2. Toy department
3. Wine department
4. Camera department
5. Candy department
Closeness rating
Letter
Reason for rating Number
2
3
4
5
U
--
A
4
U
--
U
--
I
1
U
--
A
1,6
X
1
Note
X
Note here
that the (1)
Credit Dept.
and (2) Toy
Dept. are
given a high
rating of 6.
Area
(sq. ft.)
100
400
300
here that
100
the
1 (2) Toy Dept.
and the (5)
100
Candy Dept. are
given a high
rating of 6.
7A-63
Example of Systematic Layout Planning:
Initial Relationship Diagram
E
1
I
2
3
4
U
U
5
A
Note here again, Depts. (1) and
(2) are linked together, and
Depts. (2) and (5) are linked
together by multiple lines or
required transactions.
The number of lines
here represent paths
required to be taken in
transactions between
the departments. The
more lines, the more
the interaction between
departments.
7A-64
Example of Systematic Layout Planning:
Initial and Final Layouts
5
2
4
2
3
3
1
5
1
20 ft
4
50 ft
Initial Layout
Final Layout
Ignoring space and
building constraints
Adjusted by square
footage and building
size
Note in the
Final Layout
that Depts.
(1) and (5)
are not both
placed
directly next
to Dept. (2).
7A-65
Assembly Lines Balancing Concepts
Question: Suppose you load work into the three work stations
below such that each will take the corresponding number of
minutes as shown. What is the cycle time of this line?
Station 1
Minutes
per Unit
6
Station 2
7
Station 3
3
Answer: The cycle time of the line is always determined by the
work station taking the longest time. In this problem, the
cycle time of the line is 7 minutes. There is also going to be
idle time at the other two work stations.
7A-66
Example of Line Balancing
• You’ve just been assigned the job a setting
up an electric fan assembly line with the
following tasks:
Task
A
B
C
D
E
F
G
H
Time (Mins)
2
1
3.25
1.2
0.5
1
1
1.4
Description
Assemble frame
Mount switch
Assemble motor housing
Mount motor housing in frame
Attach blade
Assemble and attach safety grill
Attach cord
Test
Predecessors
None
A
None
A, C
D
E
B
F, G
7A-67
Example of Line Balancing:
Structuring the Precedence Diagram
Task Predecessors
A
None
B
A
C
None
D
A, C
A
Task Predecessors
E
D
F
E
G
B
H
E, G
B
G
H
C
D
E
F
7A-68
Example of Line Balancing: Precedence Diagram
Question: Which process step defines the
maximum rate of production?
2
A
1
B
1
G
C
D
E
F
3.25
1.2
.5
1
1.4
H
Answer: Task C is the cycle time of the line and
therefore, the maximum rate of production.
7A-70
Example of Line Balancing: Determine Cycle Time
Question: Suppose we want to assemble
100 fans per day. What would our cycle
time have to be?
Answer:
Required Cycle Time, C =
Production time per period
Required output per period
420 mins / day
C=
= 4.2 mins / unit
100 units / day
7A-71
Example of Line Balancing: Determine Theoretical Minimum Number of
Workstations
Question: What is the theoretical minimum number
of workstations for this problem?
Answer:
Theoretical Min. Number of Workstations, N t
Sum of task times (T)
Nt =
Cycle time (C)
11.35 mins / unit
Nt =
= 2.702, or 3
4.2 mins / unit
7A-72
Example of Line Balancing: Rules To Follow for Loading Workstations
• Assign tasks to station 1, then 2, etc. in sequence. Keep
assigning to a workstation ensuring that precedence is
maintained and total work is less than or equal to the cycle
time. Use the following rules to select tasks for assignment.
• Primary: Assign tasks in order of the largest number of
following tasks
• Secondary (tie-breaking): Assign tasks in order of the
longest operating time
7A-73
2
A
1
B
1
G
C
D
E
F
3.25
1.2
.5
1
Station 1
1.4
H
Station 2
Task
A
C
D
B
E
F
G
H
Followers
6
4
3
2
2
1
1
0
Time (Mins)
2
3.25
1.2
1
0.5
1
1
1.4
Station 3
7A-74
2
A
1
B
1
G
C
D
E
F
3.25
1.2
.5
1
Station 1
A (4.2-2=2.2)
1.4
H
Station 2
Task
A
C
D
B
E
F
G
H
Followers
6
4
3
2
2
1
1
0
Time (Mins)
2
3.25
1.2
1
0.5
1
1
1.4
Station 3
7A-75
2
A
1
B
1
G
C
D
E
F
3.25
1.2
.5
1
Station 1
A (4.2-2=2.2)
B (2.2-1=1.2)
1.4
H
Station 2
Task
A
C
D
B
E
F
G
H
Followers
6
4
3
2
2
1
1
0
Time (Mins)
2
3.25
1.2
1
0.5
1
1
1.4
Station 3
7A-76
2
A
1
B
1
G
C
D
E
F
3.25
1.2
.5
1
Station 1
A (4.2-2=2.2)
B (2.2-1=1.2)
G (1.2-1= .2)
Idle= .2
1.4
H
Station 2
Task
A
C
D
B
E
F
G
H
Followers
6
4
3
2
2
1
1
0
Time (Mins)
2
3.25
1.2
1
0.5
1
1
1.4
Station 3
7A-77
2
A
1
B
1
G
C
D
E
F
3.25
1.2
.5
1
Station 1
A (4.2-2=2.2)
B (2.2-1=1.2)
G (1.2-1= .2)
Idle= .2
1.4
H
Task
A
C
D
B
E
F
G
H
Station 2
C (4.2-3.25)=.95
Followers
6
4
3
2
2
1
1
0
Time (Mins)
2
3.25
1.2
1
0.5
1
1
1.4
Station 3
7A-78
2
A
1
B
1
G
C
D
E
F
3.25
1.2
.5
1
Station 1
1.4
H
Task
A
C
D
B
E
F
G
H
Station 2
A (4.2-2=2.2)
B (2.2-1=1.2)
G (1.2-1= .2)
C (4.2-3.25)=.95
Idle= .2
Idle = .95
Followers
6
4
3
2
2
1
1
0
Time (Mins)
2
3.25
1.2
1
0.5
1
1
1.4
Station 3
7A-79
2
A
1
B
1
G
C
D
E
F
3.25
1.2
.5
1
Station 1
1.4
H
Task
A
C
D
B
E
F
G
H
Station 2
A (4.2-2=2.2)
B (2.2-1=1.2)
G (1.2-1= .2)
C (4.2-3.25)=.95
Idle= .2
Idle = .95
Followers
6
4
3
2
2
1
1
0
Time (Mins)
2
3.25
1.2
1
0.5
1
1
1.4
Station 3
D (4.2-1.2)=3
7A-80
2
A
1
B
1
G
C
D
E
F
3.25
1.2
.5
1
Station 1
1.4
H
Task
A
C
D
B
E
F
G
H
Station 2
A (4.2-2=2.2)
B (2.2-1=1.2)
G (1.2-1= .2)
C (4.2-3.25)=.95
Idle= .2
Idle = .95
Followers
6
4
3
2
2
1
1
0
Time (Mins)
2
3.25
1.2
1
0.5
1
1
1.4
Station 3
D (4.2-1.2)=3
E (3-.5)=2.5
7A-81
2
A
1
B
1
G
C
D
E
F
3.25
1.2
.5
1
Station 1
1.4
H
Task
A
C
D
B
E
F
G
H
Station 2
A (4.2-2=2.2)
B (2.2-1=1.2)
G (1.2-1= .2)
C (4.2-3.25)=.95
Idle= .2
Idle = .95
Followers
6
4
3
2
2
1
1
0
Time (Mins)
2
3.25
1.2
1
0.5
1
1
1.4
Station 3
D (4.2-1.2)=3
E (3-.5)=2.5
F (2.5-1)=1.5
7A-82
2
A
1
B
1
G
C
D
E
F
3.25
1.2
.5
1
Station 1
1.4
H
Task
A
C
D
B
E
F
G
H
Station 2
A (4.2-2=2.2)
B (2.2-1=1.2)
G (1.2-1= .2)
C (4.2-3.25)=.95
Idle= .2
Idle = .95
Followers
6
4
3
2
2
1
1
0
Time (Mins)
2
3.25
1.2
1
0.5
1
1
1.4
Station 3
D (4.2-1.2)=3
E (3-.5)=2.5
F (2.5-1)=1.5
H (1.5-1.4)=.1
Idle = .1
Which station is the bottleneck? What is the effective cycle time?
7A-83
Example of Line Balancing: Determine the Efficiency of the Assembly Line
Sum of task times (T)
Efficiency =
Actual number of workstations (Na) x Cycle time (C)
11.35 mins / unit
Efficiency =
=.901
(3)(4.2mins / unit)
7A-84
Manufacturing Cell:
Benefits
1. Better human relations
2. Improved operator expertise
3. Less in-process inventory and material
handling
4. Faster production setup
7A-85
Manufacturing Cell:
Transition from Process Layout
1. Grouping parts into families that follow a
common sequence of steps
2. Identifying dominant flow patterns of
parts families as a basis for location or
relocation of processes
3. Physically grouping machines and
processes into cells
7A-86
Project Layout
Question: What are our primary
considerations for a project layout?
Answer: Arranging materials and equipment
concentrically around the production point in their
order of use.
7A-87
Retail Service Layout
• Goal--maximize net profit per square foot
of floor space
• Servicescapes
– Ambient Conditions
– Spatial Layout and Functionality
– Signs, Symbols, and Artifacts