Plant Layout

Book material
Heizer and Render, 2006, 8th Edition
Dr Derek Waller 2004
Edits & additions Dr David J. Newlands 2016
IESEG

Review and Discuss

Page 368, questions 2, 3, 5, 11, 12, 14, 17

Plant Layout
Plant layout is concerned with determining the best arrangements
of the appropriate number of facilities and services needed in the
design of a production plant. It includes the design of materials
handling routes and storage areas.

Facilities Planning
Facilities planning is broader than plant layout and is necessary to
determine what facilities are needed, where and in what sizes, to
meet production requirements.
Facilities include air, water, gas, plastic, electricity, ventilation, exits

Facilities Planning
Plant Layout

Analysis of requirements
Design of production systems
Arrangement of flow,
facilities and services

Strategic Importance of Layout

Decisions
The objective of layout strategy
is to develop an economic layout
that will meet the firms
competitive requirements

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

Good Layouts Consider

1. Material handling equipment
2. Capacity and space requirements

3. Environment and aesthetics

4. Flows of information

5. Cost of moving between various

work areas

Elements of Good Plant Layout

Planned activity inter-relationships

Planned material flow pattern
Straight-line flow
Minimum back-tracking
Auxiliary flow lines
Straight aisles
Minimum handling between operations
Planned material handling methods
Processing combined with material handling
Movement progresses from receiving toward shipping
First operations near receiving
Last operations near shipping
Point-of-use storage where appropriate
Layout adaptable to changing conditions
Planned for orderly expansion
Minimum goods in process
Minimum material in process
Maximum use of all plant levels
Adequate storage space

Elements of Good Plant Layout

Adequate space between facilities
Building constructed around planned layout
Material Delivered to employees and removed from work areas
Minimum walking by production operators
Proper location of production and employee service facilities
Mechanical handling installed where practicable
Adequate employee service functions
Planned control of noise, dirt, fumes, dust, humidity, etc.
Maximum processing time to overall production time
Minimum manual handling
Minimum re-handling
Partitions dont impede material flow
Minimum handling by direct labour
Planned scrap removal
Receiving and shipping in logical locations
Source: Apple, James M. Plant Layout and Materials Handling, 3rd ed, pp18-19, John Wiley & Sones, NY, 1977

Types of Layout
1. Office layout
2. Retail layout

3. Warehouse layout
4. Fixed-position layout

5. Process-oriented layout
6. Work cell layout
7. Product-oriented layout

Types of Layout
1. Office layout - positions workers,
their equipment, and spaces/offices
to provide for movement of
information
2. Retail layout - allocates shelf space
and responds to customer behavior
3. Warehouse layout - addresses
trade-offs between space and
material handling

Types of Layout
4. Fixed-position layout - addresses
the layout requirements of large,
bulky projects such as ships and
buildings
5. Process-oriented layout - deals with
low-volume, high-variety production
(also called job shop or intermittent
production)

Types of Layout
6. Work cell layout - a special
arrangement of machinery and
equipment to focus on production of
a single product or group of related
products

7. Product-oriented layout - seeks the

best personnel and machine
utilizations in repetitive or
continuous production

Manufacturing Systems
Every manufacturing activity fits into one of four categories:
Jobbing Production
Mainly one-offs. Finish one product complete before starting the next.

Batch Production
At any one time, several different products are at various stages of manufacture.
A number of parts (a batch) are made together. Traditionally all members of
a batch complete one stage of production before any proceed to the next stage.

Flow Production
A large number of similar products are made at once. As soon as
a part has finished a production stage, it flows to the next.
It is possible, though not very helpful, to think of flow production
as a special case of batch production with a batch size of one.

Continuous Process Production

This refers to processes such as steel, glass, chemicals and petrol production,
where there are no discrete products

Jobbing A hand built product made to the

customers exact requirements, or a prototype

Panhard-Levassor vehicle with front engine, 1891

Layout Types
Fixed Position Layout
The product is stationary. Workers, materials and machines move to the product.
Used for large products.

Functional / Process Layout (departmentalised)

Machines and plant are grouped by process (e.g. press shop, machine shop,
turning section.

Flow / Product Layout

Machines are arranged, often in a line, to suit the requirements of a product or
(narrow) range of products. The machines may be linked by a conveyor

Cellular Layout
The shop floor is divided into cells. Each cell contains the machines and
processes needed to make a range of similar parts (a part family) complete.

Continuous Process Layout

Examples are a steel strip mill or a petrol refinery. The sizes and positions
of the items of plant are dictated by the manufacturing process.

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

Alternative Strategy
As much of the project as possible
is completed off-site in a productoriented facility
This can significantly improve
efficiency but is only possible when
multiple similar units need to be
created

Source: Waller

http://www.lim.ethz.ch/opess/demo/Kap5_2.html

Fixed Position Layout

Fixed Position Layout

Dry Dock

Floating Dry Dock

Strategic Competitive Advantages?

Component Manufacture and Assembly

in Close proximity to Transport (Rail,
Road, Sea) Space for Parking
Repair of Finished Goods

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

Process Layout
Materials
Store

Finished

Cut

Mill

Mill

Cut

Mill

Mill

Drill

Turn

Turn

Drill

Turn

Turn

Components

Store

Process layout Easy access via van

Process Layout
Product X

Process Layout
Nature

All similar facilities grouped together

Application

Low quantity production

Large range of products

Characteristics

Permits specialist supervision

High WIP
High material handling cost
Easy provision of services
Individual bonus possible
Flexibility, variety and product changes possible
Possibility of loss or neglect of some jobs/items
Maintenance easy
Production control complex
Production planning easy
Long production time.

Process-Oriented Layout
Patient A - broken leg
ER
triage
room

Emergency room admissions

Patient B - erratic heart
pacemaker

Surgery

Laboratories

Radiology

ER Beds

Pharmacy

Billing/exit

Figure 9.3

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

Layout at Arnold Palmer Hospital

Turn

Drill

Cut

Mill

Drill

Materials
Store

Cut

Finished
Components
Store

Product Layout

Product/Line Layout
PRODUCT
X

Product/Line Layout

Source: Waller

Henry Ford and his

1913 moving assembly line
Today
The Global Assembly Line
the Philippines,

Flow Isolated Workers

Nokia's Subcontracted Chinese Workers assembling mobile phones

http://www.spinwatch.org/modules.php?name=Reviews&rop=showcontent&id=8

Chassis and Wheels on first, then

role forward pulled by the chain

Fordist Moving Assembly Chain

Moving Assembly Line

Body In White Assembly with welding robots

Repetitive and Product-Oriented

Layout
Organized around products or families of
similar high-volume, low-variety products
Volume is adequate for high equipment
utilization

Product demand is stable enough to justify high

investment in specialized equipment
Product is standardized or approaching a phase
of life cycle that justifies investment
Supplies of raw materials and components are
adequate and of uniform quality

Product-Oriented Layouts
Fabrication line
Builds components on a series of machines
Machine-paced
Require mechanical or engineering changes
to balance
Assembly line
Puts fabricated parts together at a series of
workstations
Paced by work tasks
Balanced by moving tasks
Both types of lines must be balanced so that the
time to perform the work at each station is the same

Product-Oriented Layouts
Advantages
1.
2.
3.
4.
5.

Low variable cost per unit

Low material handling costs
Reduced work-in-process inventories
Easier training and supervision
Rapid throughput is at a constant pace

Disadvantages
1. High volume is required over some years to
amortise investments
2. Work stoppage at any point ties up the
whole operation no bad thing if used to
learn
3. Lack of flexibility in product or production
rates

Layout by Product
Nature
Application

Derived facilities sequence from production needs

Large quantity of production
Only a few product families with trim differences

Characteristics Little specialised production required

Minimum WIP
Minimum material handling cost
Difficult to provide services
Single breakdown stops all machines
Difficult to incorporate inspection
Group bonus
Little variety possible
Maintenance out of production hours
Production control simple
Production planning complex
Accurate work measurement essential
Low production time.

Work Cells
Reorganizes people and machines
into groups to focus on single
products or product groups
Group technology identifies
products that have similar
characteristics for particular cells
Volume must justify cells
Cells can be reconfigured as
designs or volume changes

Advantages of Work Cells

1. Reduced work-in-process inventory
2. Less floor space required
3. Reduced raw material and finished goods
inventory
4. Reduced direct labor
5. Heightened sense of employee
participation
6. Increased use of equipment and machinery
7. Reduced investment in machinery and
equipment

Improving Layouts Using Work

Cells

Current layout - workers

in small closed areas.
Cannot increase output
without a third worker and
third set of equipment.

Figure 9.10 (a)

Improved layout - cross-trained

workers can assist each other.
May be able to add a third worker
as additional output is needed.

Improving Layouts Using Work

Cells

Current layout - straight

lines make it hard to balance
tasks because work may not
be divided evenly

Figure 9.10 (b)

Improved layout - in U
shape, workers have better
access. 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

Cell Layout
Materials
Store

Finished

Cut

Mill

Mill

Drill

Turn

Turn

Cut

Mill

Mill

Drill

Drill

Mill

Components

Store

Source: Waller

http://ocw.mit.edu/OcwWeb/Sloan-School-of-Management/15769Operations-StrategySpring2003/CourseHome/index.htm

This Kansas City plant uses a flexible manufacturing system to

produce and inspect a wide variety of materials. (Courtesy
of Department of Energy Digital Archive.)

Layout Type from Manufacturing System Needs

Manufacturing Systems

Layout Type

Jobbing Production

Fixed Position Layout

Batch Production

Functional / Process Layout

Flow Production

Flow / Product Layout

Cellular Layout

Continuous Process Production

Continuous Process Layout

Plant Layout Considerations

space utilisation
flow of materials
tool room, tool stores
inspection or quality control
washroom and locker facilities

refreshment / rest area

security and safety
ventilation, lighting, heating
services (electricity, gas, air, etc)
waste removal

Plant Layout
Techniques of Flow Analysis
Work study flow diagrams

Cross relationship - To / From Analysis

Production flow analysis (PFA)
Cluster analysis
Computerised layout packages
Computer simulations, i.e. ARENA

Application of Layout Types

Layout type Job

Volume
Volume
Products
Variety
Orders
Scheduling

Low
Variable
Special
High
Make to order
Each operation

Cell

Line

High
Stable
Standard
Low
Make to stock
Once only

Organisation structure must match layout.

Layout must match product characteristics
Financial models in the company must match both

Source: Waller

Source: Waller

Source: Waller

Supermarket Retail Layout

Objective is to maximize
profitability per square foot of
floor space
Sales and profitability vary
directly with customer exposure

Five Helpful Ideas for

Supermarket Layout
1. Locate high-draw items around the
periphery of the store
2. Use prominent locations for high-impulse
and high-margin items
3. Distribute power items to both sides of
an aisle and disperse them to increase
viewing of other items
4. Use end-aisle locations
5. Convey mission of store through careful
positioning of lead-off department

Store Layout

Figure 9.2

Source: Waller

Source: Waller

Retail Slotting
Manufacturers pay fees to retailers
to get the retailers to display (slot)
their product
Contributing factors
Limited shelf space
An increasing number of new
products
Better information about sales
through POS data collection

Closer control of inventory

Retail Store Shelf Space

Planogram

Shampoo

Conditioner

Shampoo

Shampoo

Shampoo

Conditioner

Conditioner

2 ft.

Shampoo

Shampoo

Shampoo

Shampoo

Shampoo

Computerized tool
for shelf-space
management
Generated from
stores scanner data
on sales
Often supplied by
manufacturer

5 facings

Source: Waller

Source: Waller

Work & Workplace Design

Method Study - Analysis of methods of work to determine
more efficient, safer and cheaper methods.
Ergonomics - Analysis of effects of work on people
design of effective and safe work places
environmental aspects, Health and safety
Job Design - Physiological, sociological and
psychological aspects of jobs as a whole

Work Measurement - Derivation of Standard Times for tasks

Calculation of resource requirements
Measurement of capacity
Measurement of productivity

Innovations at McDonalds
Indoor seating (1950s)
Drive-through window (1970s)
Adding breakfast to the menu
(1980s)
Adding play areas (1990s)
Three out of the four are layout
decisions!

McDonalds New Kitchen

Layout
Fifth major innovation
Sandwiches assembled in order
Elimination of some steps, shortening of others
No food prepared ahead except patty
New bun toasting machine and new bun
formulation
Repositioning condiment containers
Savings of $100,000,000 per year in food costs

McDonalds
New Kitchen
Layout

Source: Waller

FLOW PROCESS CHART

Activity Type
No
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21

Activity Description
Enquire customer needs
Receive customer order
Key order into EPOS
Put tray into counter
Go to burger rack
Pick up burgers
Bring burgers to counter
Put burgers onto tray
Go to drinks machine
Fill cups with drink
Bring drinks to counter
Put drinks onto tray
Go to fries machine
Fill carton with fries
Bring fries to counter
Put fries onto tray
Check order complete
Advise customer of cost
Collect cash
Give change
Thank customer
TOTAL

Oper.

Task : Selling Hamburgers

Insp.

Move

Delay

Store

14

Time

Dist

mins
0.03
0.15
0.10
0.05
0.06
0.18
0.06
0.03
0.04
0.08
0.04
0.03
0.06
0.18
0.06
0.03
0.07
0.05
0.10
0.08
0.02
1.50

metres

4.5
4.5
3
3
4.5
4.5

24

Flow Diagram
Task: Selling Hamburgers. Location: McGraham's Burger Bar
Kitchen Area

Drinks Machine

Burger Rack

Till 1

Fries Machine

10
9

11

14

12

16

17

21

20

19

18

Till 2

Till 3

Customer Queuing and Eating Area

Till 4

A Narrow Kitchen
The point on top of the head traced onto the
floor is a straight line.
Everything is within arms reach. Difficulty
to get passed.

Layout Evaluation
Product Volume and Route data
Product
Volume
Route
1
10
A-B-C-D-E
2
15
A-B-D-E
3
6
A-C-B-D
Volume Matrix
To\From A B
A
25
B
C
6
D
E

C
6
10
-

D
21
10
-

25
-

Volume Distance Analysis

Distance Matrix
To\From A
B
A
10
B 10 C 15 10
D 20 15
E 12 18

C
15
10
10
12

D
20
15
10
10

E
12
18
12
10
-

Volume - Distance Matrix

To\From A
B
C D E
A
250 90
B
100 315
C
60 100
D
250
E
-

Total

1165

Line Balancing
Tasks for assembly of a product ( times in std.min.)
Task 1
2
3
4
5
6
7
8
9
Time
1.2 0.9 0.7 0.9 1.5 1.8 0.4 0.4 1.5
2

Output = 240/day

6
4

7
8

day = 480 min

Cycle time = 2 min

Workstations for assembly of a product

Tasks
1+3
2+4
6
5+7
Time
1.9
1.8
1.8
1.9

8+9
1.9

Line Balancing
Grouping of tasks into workstations
2

min. workstations
= 9.3 / 2 = 4.65
rounded up to 5

This shows the grouping of tasks from the previous OHV

1 & 3 can be combined since 3 can start when 1 is done

2 & 4 can combine and start when 1 is done
6 is large enough to stand on its own
5 & 7 can combine after (2 + 4) and 6 have been done
8 & 9 can combine when everything else has been done

The result is 5 work stations (or operators) each with a

task of about 1.9 mins. This is the 'cycle time' for the line.
The Capacity of the line = 250 per 8 hour day

Assembly-Line Balancing
Objective is to minimize the imbalance
between machines or personnel while
meeting required output
Starts with the precedence
relationships
1. Determine cycle time
2. Calculate theoretical minimum number
of workstations
3. Balance the line by assigning specific
tasks to workstations

Copier Example
Performance
Time
Task
(minutes)
A
10
B
11
C
5
D
4
E
12
F
3
G
7
H
11
I
3
Total time 66

Task Must Follow

Task Listed
Below

A
B
B
A
C, D
F
E
G, H

This means that

tasks B and E
cannot be done
until task A has
been completed

Copier Example
Performance
Time
Task
(minutes)
A
10
B
11
C
5
D
4
E
12
F
3
G
7
H
11
I
3
Total time 66

Task Must Follow

Task Listed
Below

A
B
B
A
C, D
F
E
G, H

5
10

11

4
12

3
11

H
Figure 9.13

Copier Example
Performance
Time
Task
(minutes)
A
10
B
11
C
5
D
4
E
12
F
3
G
7
H
11
I
3
Total time 66

Task Must Follow

Task Listed
Below

480 available
mins per day
40 units required

A
Production time
B
available per day
B
Cycle time = Units required per day
A
= 480 / 40
C, D
= 12 minutes
per unit
C
F
E
B n
G
F
A
G, H

Time for task i

Minimum
i = 1D
number of =
Cycle time
workstations E
H
= 66 / 12
= 5.5 or 6 stations

Copier Example

Line-Balancing Heuristics
480
1.Performance
Longest task time
taskavailable
with the
Task MustChoose
Followthe available
mins per day
longest task time
Time
Task Listed
Task
(minutes)
Below
40 units required
2. Most following tasks
Choose the available task with the
A
10
largest number ofCycle
timetasks
= 12 mins
following
B
11
A
Minimum
C
5
B
workstations = 5.5 or 6
D 3. Ranked
4 positional weightB Choose the available task for
which the sum of following task
E
12
A times is the longest
F
3
C, D
G 4. Shortest
7 task time
F Choose the availableC task with the
H
11
E shortest task time
B
G
F
A
I
3
G, H
5. Least number of
Choose the available task with the
Total following
time 66 tasks
D
least number of following
tasks
I
E

Copier Example
Performance
Time
Task
(minutes)

480 available
mins per day
40 units required

Task Must Follow

Task Listed
Below

A
10
B
11
Station
C
52
D
4
11
E 10
12
F A
B
3
G
7
H
11
I
3
12
Stationtime 66
Total
E
1
Station
3

A
5 B
C B
A
C, D
4
F
D E
G, H

Cycle time = 12 mins

Minimum
workstations = 5.5 or 6
3

Station 4

I
11

Station 6

H
Station
5

Figure 9.14

Copier Example
Performance
Time
Task
(minutes)

Task Must Follow

Task Listed
Below

480 available
mins per day
40 units required

A
10

Cycle time = 12 mins

B
11
A
Minimum
C
5
B
workstations = 5.5 or 6
D
4
B
E
12
A
F
3
C, D
Task times
G
7
F
Efficiency =
(actual number ofE workstations) x (largest cycle time)
H
11
I
3
G, H
= 66 minutes / (6 stations) x (12 minutes)
Total time 66
= 91.7%

Office Layout
Grouping of workers, their
equipment, and spaces to provide
comfort, safety, and movement of
information
Movement of information is main
distinction
Typically in state of flux due to
frequent technological changes

Relationship Chart
Value
1

President
Chief Technology Officer
Engineers area

Absolutely
necessary

Especially
important

Important

Ordinary OK

Unimportant

Not desirable

2
3

U
A
I
O

Secretary

I
I

A
A

Central files
Equipment cabinet

Photocopy equipment

U
O

I
X

O
U

9
O

U
E

8
O

Office entrance

Closeness

A
E

Storage room

Figure 9.1

http://irc.nrc-cnrc.gc.ca/ie/cope/index.html

http://www.cop-inc.com/Products/Open_Plan_Solutions.shtml

Open Plan Offices

Open Plan Offices

Covert work in the
office
Privacy
Hierarchy
Status
Meet in the office
Own room & furniture
Efficiency due to
seclusion/less noise

Total exposure to co-workers

Productivity
Teamwork
Mobility

Meet in a meeting room

Office on a trolley
Hot seating (book when
needed)
Less space
More human contact
More distractions

Warehousing and Storage

Layouts
Objective is to optimize trade-offs
between handling costs and costs
associated with warehouse space
Maximize the total cube of the
warehouse utilize its full volume
while maintaining low material
handling costs

Warehousing and Storage

Layouts
Material Handling Costs
All costs associated with the transaction
Incoming transport

Storage
Finding and moving material
Outgoing transport

Equipment, people, material, supervision,

insurance, depreciation

Minimize damage and spoilage

Warehousing and Storage

Layouts
Warehouse density tends to vary
inversely with the number of
different items stored
Automated Storage and Retrieval
Systems (ASRS) can significantly
improve warehouse productivity
Dock location is a key design
element

Cross-Docking
Materials are moved directly from
receiving to shipping and are not
placed in storage in the
warehouse

Requires tight scheduling and

accurate shipments, typically
with bar code identification

Random Stocking
Typically requires automatic identification
systems (AISs) and effective information
systems
Random assignment of stocking locations
allows more efficient use of space
1. Maintain list of open locations
2. Maintain accurate records

3. Sequence items to minimize travel time

4. Combine picking orders
5. Assign classes of items to particular areas

Customization
Value-added activities performed at
the warehouse
Enable low cost and rapid response
strategies
Assembly of components
Loading software
Repairs
Customized labeling and packaging

Warehouse Layout
Traditional Layout

Customization

Storage racks

Conveyor
Staging
Shipping and receiving docks

Office

Warehouse Layout
Cross-Docking Layout

Office

Shipping and receiving docks

Shipping and receiving docks