Facilities and Layout Planning

Facilities Layout and Location Planning Facility Layout -Is the design or plan of an operating unit in such a way that it optimizes the production of a good or completion of a service. The aim of a facility layout is to lessen the overhead costs while speeding up the production work. -The infrastructure & materials are located in such a way that maximum production is done from available resources. It is also dependent on process selection. Importance of Layouts 1. They require substantial investments of both money and effort 2.

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They involve long term commitments, which makes mistakes difficult to overcome 3. They have a significant impact on the cost and efficiency of short term operations Common Reasons for Redesign of Layouts 1. Inefficient operations (ex. High cost, bottlenecks) 2. Accidents or safety hazards 3. Changes in the design or introduction of new products and services 4. Changes in the volume of output or mix of outputs 5. Changes in methods or equipment 6. Changes in the environment or other legal requirements 7. Morale problems (ex.

Lack of face to face contact) Factors in determining efficient facilities layout (Objective): 1. Flexibility: The facility layout should be such that it can be readjusted or modified according to future expansion or changes. 2. Flow of Movement: It should be a smooth flow from input to output so that the overall coordination is maintained between various units. 3. Utilization of Space: There should be a proper & optimal usage of space to ensure that all the equipment is properly placed & the handling of materials is done is done best in such a space. 4.

Ease of Communication: There should be an effective communication between various aspects of business which is conducive to its overall growth. 5. Safety: Occupational safety measures must be in place for optimum production & cutting losses caused due to hazards. 6. Management of Materials: There should be a proper maintenance & upkeep of equipments to ensure that the production is hassle free. 7. Ensuring High Employee Morale: Since this directly affects production, factors like attractiveness of a facility, ventilation, lighting, restrooms & cafeterias have to be provided for maximum employee participation. . Promotional value: If the business commonly receives visitors in the form of customers, vendors, investors, etc. , the business owner may want to make sure that the facility layout is an attractive one that further burnishes the company’s reputation. Types of Facility Layout: There are three basic types of facility layouts: 1. Product Layouts – are most conducive to repetitive processing 2. Process Layouts – are used for intermittent processing 3. Fixed-position Layouts – are used when projects require layouts *But a mixture of these pure types of facility layouts produces the fourth type . Hybrid Layouts -includes cellular layout and flexible manufacturing system Product Layouts : Repetitive Processing – Are used to achieve a smooth rapid flow of large volumes of goods or customers through a system. – The work is divided into a series of standardized tasks, permitting specialization of equipment and division of labor. – Each item/product follows the same sequence of operations thus the resulting arrangement forms a line. In manufacturing the lines are called Production lines or Assembly lines depending on the type of activity involved.

In service processes, a line may or may not be used. (Cafeteria line, or simply car wash) Figure1. Manufacturing Environment: Production line of a biscuit Figure2. Service Processes: Car Wash Lay out Advantages of product layouts: • Output. Product layouts can generate a large volume of products in a short time. • Cost. Unit cost is low as a result of the high volume. Labor specialization results in reduced training time and cost. A wider span of supervision also reduces labor costs. Accounting, purchasing, and inventory control are routine.

Because routing is fixed, less attention is required. • Utilization. There is a high degree of labor and equipment utilization. Disadvantages of product layouts: • Motivation. The system’s inherent division of labor can result in dull, repetitive jobs that can prove to be quite stressful. Also, assembly-line layouts make it very hard to administer individual incentive plans. • Flexibility. Product layouts are inflexible and cannot easily respond to required system changes—especially changes in product or process design. • System protection.

The system is at risk from equipment breakdown, absenteeism, and downtime due to preventive maintenance. Designing product Layouts: Line Balancing Line balancing – is the assignment of tasks to workstations in such a way that workstations have approximately equal time requirements. This minimizes the amount of time that some workstations are idle, due to waiting on parts from an upstream process or to avoid building up an inventory queue in front of a downstream process. – Product layout efficiency is often enhanced through the use of line balancing. pic] [pic] Line Balancing – Cycle Time? Cycle time – the maximum time allowed at each workstation to complete its set of tasks on a unit. Cycle time = Operating time per day ; Output rate = Operating time per day Desired output rateCycle time Nmin = Sum of task times Cycle time Where: Nmin = Theoretical minimum number of stations Example: A small western alarm clock manufacturer produces clocks that require a total assembly line of 76 minutes in eight tasks. The output rate is of 25 clocks per day. The firm operates with 8 hr work days). Find the Cycle Time and the Number of Workstations. Cycle Time = (8 hours x 60 minutes/hour) 25 Cycle Time = 19. 2 No. of Workstations = 76/19. 2 = 3. 9 i. e approximately 4 work stations Two widely used measures of effectiveness in Line Balancing: 1. The percentage of idle time % of idle time = idle time per cycle x 100 Nactual x Cycle time For the preceding let say Idle time is 10 minutes the value is: % of idle time = 10 / (4 x 19. 2) x 100 = 13. 02% 2. The efficiency of the line

Efficiency = 100% – Percent idle time Here; Efficiency = 100% – 13. 02 = 86. 98% Process Layout: Non Repetitive Processing – – No algorithms exist that can identify the best lay out arrangement under all circumstances , planners must rely on the heuristic rules of trial and error. Advantages of process layouts: • Flexibility. The firm has the ability to handle a variety of processing requirements. • Cost. Sometimes, the general-purpose equipment utilized may be less costly to purchase and less costly and easier to maintain than specialized equipment. • Motivation.

Employees in this type of layout will probably be able to perform a variety of tasks on multiple machines, as opposed to the boredom of performing a repetitive task on an assembly line. A process layout also allows the employer to use some type of individual incentive system. • System protection. Since there are multiple machines available, process layouts are not particularly vulnerable to equipment failures. Disadvantages of process layouts: • Utilization. Equipment utilization rates in process layout are frequently very low, because machine usage is dependent upon a variety of output requirements. • Cost.

If batch processing is used, in-process inventory costs could be high. Lower volume means higher per-unit costs. More specialized attention is necessary for both products and customers. Setups are more frequent, hence higher setup costs. Material handling is slower and more inefficient. The span of supervision is small due to job complexities (routing, setups, etc. ), so supervisory costs are higher. Additionally, in this type of layout accounting, inventory control, and purchasing usually are highly involved. • Confusion. Constantly changing schedules and routings make juggling process requirements more difficult.

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