Chapter 7

Facilities
Operations Management - 5th Edition

Roberta Russell & Bernard W. Taylor, III

Beni Asllani
Copyright 2006 John Wiley & Sons, Inc. University of Tennessee at Chattanooga
 Lecture Outline

 Basic Layouts
 Designing Process Layouts
 Designing Service Layouts
 Designing Product Layouts
 Hybrid Layouts

Copyright 2006 John Wiley & Sons, Inc. 7-2

 Facility Layout
Arrangement of areas within a facility to:
 Minimize material­handling   Facilitate  entry, exit, and 
costs placement of material, products, 
 Utilize space efficiently and people
 Utilize labor efficiently  Incorporate safety and security 
 Eliminate bottlenecks measures
 Promote product and service 
 Facilitate communication and 
quality
interaction
 Encourage proper maintenance 
 Reduce manufacturing cycle 
activities
time
 Provide a visual control of 
 Reduce customer service time
activities
 Eliminate wasted or redundant   Provide flexibility to adapt to 
movement changing conditions
 Increase capacity
Copyright 2006 John Wiley & Sons, Inc. 7-3
 BASIC LAYOUTS

 Process layouts
 group similar activities together 
according to process or function they 
perform
 Product layouts
 arrange activities in line according to  
sequence of operations for a particular 
product or service
 Fixed­position layouts
 are used for projects in which  product 
cannot be moved

Copyright 2006 John Wiley & Sons, Inc. 7-4

 Process Layout in Services

Women’s
Shoes Housewares
lingerie

Women’s Cosmetics Children’s

dresses and jewelry department

Women’s Entry and Men’s

sportswear display area department

Copyright 2006 John Wiley & Sons, Inc. 7-5

 Manufacturing Process Layout
Milling
Lathe Department Department Drilling Department
M M D D D D
L L

M M D D D D
L L

G G G P
L L

G G G P
L L
Grinding Painting Department
Department
L L
Receiving and A A A
Shipping Assembly

Copyright 2006 John Wiley & Sons, Inc. 7-6

 A Product Layout
In

Out

Copyright 2006 John Wiley & Sons, Inc. 7-7

 Comparison of Product
and Process Layouts
Product Process
 Description  Sequential   Functional 
arrangement of  grouping of 
activities activities
 Continuous, mass   Intermittent, job 
 Type of process
production, mainly  shop, batch 
assembly production, mainly 
fabrication
 Product  Standardized, made   Varied, made to 
to stock  order 
 Demand  Stable  Fluctuating
 Volume  High  Low
 Equipment  Special purpose  General purpose

Copyright 2006 John Wiley & Sons, Inc. 7-8

 Comparison of Product
and Process Layouts
Product Process
 Workers  Limited skills  Varied skills
 Inventory  Low in­process, high   High in­process, low 
finished goods finished goods
 Storage space  Small  Large
 Material handling  Fixed path (conveyor)  Variable path (forklift)
 Aisles  Narrow  Wide
 Scheduling  Part of balancing  Dynamic
 Layout decision  Line balancing  Machine location
 Goal  Equalize work at each   Minimize material 
station handling cost
 Advantage  Efficiency  Flexibility

Copyright 2006 John Wiley & Sons, Inc. 7-9

 Fixed-Position Layouts

 Typical of projects
 Equipment, workers, 
materials, other 
resources brought to the 
site
 Highly skilled labor
 Often low fixed 
 Typically high variable 
costs

Copyright 2006 John Wiley & Sons, Inc. 7-10

 Designing Process Layouts

 Goal: minimize material handling costs
 Block Diagramming
 minimize nonadjacent loads 
 use when quantitative data is available
 Relationship Diagramming
 based on location preference between areas
 use when quantitative data is not available

Copyright 2006 John Wiley & Sons, Inc. 7-11

 Block Diagramming

 Unit load  STEPS
  quantity in which   create load summary chart

material is normally   calculate composite (two 

moved way) movements
 Nonadjacent load  develop trial layouts 

 distance farther  minimizing number of 
than the next block nonadjacent loads

Copyright 2006 John Wiley & Sons, Inc. 7-12

 Block Diagramming: Example
Load Summary Chart
FROM/TO DEPARTMENT
1 2 3
Department 1 2 3 4 5

1 — 100 50
2 — 200 50
4 5 3 60 — 40 50
4 100 — 60
5 50 —

Copyright 2006 John Wiley & Sons, Inc. 7-13

 Block Diagramming:
Example (cont.)
2     3    200 loads Nonadjacent Loads:
2     4    150 loads 110+40=150
0
1     3    110 loads 110
1     2    100 loads
4     5      60 loads 100 150
200
1 2 3
4
3     5      50 loads
2     5      50 loads 150 200
110
50 5050 40 60
3     4      40 loads 60 50
4 3
5 5
1     4        0 loads
1     5        0 loads Grid 2
1
40

Copyright 2006 John Wiley & Sons, Inc. 7-14

 Block Diagramming:
Example (cont.)

(a) Initial block diagram (b) Final block diagram

1 4
1 2 4 2

3 5 3 5

Copyright 2006 John Wiley & Sons, Inc. 7-15

 Relationship Diagramming

 Schematic diagram that 
uses weighted lines to 
denote location preference
 Muther’s grid
 format for displaying 
manager preferences for 
department locations

Copyright 2006 John Wiley & Sons, Inc. 7-16

 Relationship A    Absolutely necessary
E    Especially important
Diagramming: Example
I     Important
O   Okay
U   Unimportant
Production X   Undesirable
O
Offices A
U I
Stockroom O E
A X A
Shipping and
receiving U U
U O
Locker room O
O
Toolroom

Copyright 2006 John Wiley & Sons, Inc. 7-17

 Relationship Diagrams: Example (cont.)
(a) Relationship diagram of original layout

Offices Locker Shipping

room and
receiving

Key: A
E
I
Stockroom Toolroom Production
O
U
X

Copyright 2006 John Wiley & Sons, Inc. 7-18

 Relationship Diagrams: Example (cont.)
(b) Relationship diagram of revised layout

Stockroom

Offices Shipping
and
receiving

Toolroom Production Locker Key: A

room E
I
O
U
X

Copyright 2006 John Wiley & Sons, Inc. 7-19

 Computerized layout
Solutions
 CRAFT
 Computerized Relative Allocation of Facilities 
Technique
 CORELAP
 Computerized Relationship Layout Planning
 PROMODEL and EXTEND
 visual feedback
 allow user to quickly test a variety of scenarios
 Three­D modeling and CAD 
 integrated layout analysis
 available in VisFactory and similar software

Copyright 2006 John Wiley & Sons, Inc. 7-20

 Designing Service
Layouts
 Must be both attractive and functional
 Types
 Free flow layouts
 encourage browsing, increase impulse purchasing, are flexible 
and visually appealing
 Grid layouts
 encourage customer familiarity, are low cost, easy to clean and 
secure, and good for repeat customers
 Loop  and Spine layouts
 both increase customer sightlines and exposure to products, 
while encouraging  customer to circulate through the entire 
store

Copyright 2006 John Wiley & Sons, Inc. 7-21

 Types of Store Layouts

Copyright 2006 John Wiley & Sons, Inc. 7-22

 Designing Product
Layouts
 Objective
 Balance the assembly line
 Line balancing
 tries to equalize the amount of work at each 
workstation
 Precedence requirements
 physical restrictions on the order in which operations 
are performed
 Cycle time
  maximum amount of time a product is allowed to 
spend at each workstation

Copyright 2006 John Wiley & Sons, Inc. 7-23

 Cycle Time Example

production time available

Cd = desired units of output

(8 hours x 60 minutes / hour)

Cd = (120 units)
480
Cd = = 4 minutes
120

Copyright 2006 John Wiley & Sons, Inc. 7-24

 Flow Time vs Cycle Time

 Cycle time = max time spent at any station 
 Flow time = time to complete all stations

1 2 3
4 minutes 4 minutes 4 minutes

Flow time = 4 + 4 + 4 = 12 minutes

Cycle time = max (4, 4, 4) = 4 minutes

Copyright 2006 John Wiley & Sons, Inc. 7-25

 Efficiency of Line
Minimum number
Efficiency
of workstations
i i

∑t
i=1
i ∑t
i=1
i

E = nC N= Cd
a

where
ti = completion time for element i
j = number of work elements
n = actual number of workstations
Ca = actual cycle time
Cd = desired cycle time
Copyright 2006 John Wiley & Sons, Inc. 7-26
 Line Balancing Procedure

1. Draw and label a precedence diagram
2. Calculate  desired cycle time required for the line
3. Calculate  theoretical minimum number of 
workstations
4. Group elements into workstations, recognizing cycle 
time and precedence constraints
5. Calculate  efficiency of the line
6. Determine if the theoretical minimum number of 
workstations or an acceptable efficiency level has 
been reached. If not, go back to step 4.

Copyright 2006 John Wiley & Sons, Inc. 7-27

 Line Balancing: Example
WORK ELEMENT PRECEDENCE TIME (MIN)
A Press out sheet of fruit — 0.1
B Cut into strips A 0.2
C Outline fun shapes A 0.4
D Roll up and package B, C 0.3

0.2
B

0.1 A D 0.3

C
0.4
Copyright 2006 John Wiley & Sons, Inc. 7-28
 Line Balancing: Example (cont.)
WORK ELEMENT PRECEDENCE TIME (MIN)
A Press out sheet of fruit — 0.1
B Cut into strips A 0.2
C Outline fun shapes A 0.4
D Roll up and package B, C 0.3

40 hours x 60 minutes / hour 2400

Cd = = = 0.4 minute
6,000 units 6000

0.1 + 0.2 + 0.3 + 0.4 1.0

N= = = 2.5  3 workstations
0.4 0.4

Copyright 2006 John Wiley & Sons, Inc. 7-29

 Line Balancing: Example (cont.)
REMAINING REMAINING
WORKSTATION ELEMENT TIME ELEMENTS
1 A 0.3 B, C
B 0.1 C, D
2 C 0.0 D
3 D 0.1 none

0.2 Cd = 0.4
B N = 2.5

0.1 A D 0.3

C
0.4
Copyright 2006 John Wiley & Sons, Inc. 7-30
 Line Balancing: Example (cont.)

Work Work Work

station 1 station 2 station 3
Cd = 0.4
N = 2.5
A, B C D
0.3 0.4 0.3
minute minute minute

0.1 + 0.2 + 0.3 + 0.4 1.0

E= = = 0.833 = 83.3%
3(0.4) 1.2

Copyright 2006 John Wiley & Sons, Inc. 7-31

 Computerized Line
Balancing
 Use heuristics to assign tasks to 
workstations
 Longest operation time
 Shortest operation time
 Most number of following tasks
 Least number of following tasks
 Ranked positional weight

Copyright 2006 John Wiley & Sons, Inc. 7-32

 Hybrids Layouts

 Cellular layouts
 group dissimilar machines into work centers 
(called cells) that process families of parts with 
similar shapes or processing requirements
 Flexible manufacturing system
 automated machining and material handling 
systems which can produce an enormous variety 
systems
of items
 Mixed­model assembly line
 processes more than one product model in one 
line

Copyright 2006 John Wiley & Sons, Inc. 7-33

 Cellular Layouts

1. Identify families of parts with similar 
flow paths
2. Group machines into cells based on 
part families
3. Arrange cells so material movement 
is minimized
4. Locate large shared machines at 
point of use

Copyright 2006 John Wiley & Sons, Inc. 7-34

 Parts Families

A family of A family of related

similar parts grocery items

Copyright 2006 John Wiley & Sons, Inc. 7-35

 Original Process Layout
Assembly

4 6 7 9

5 8

2 10 12

1 3 11

A B C Raw materials

Copyright 2006 John Wiley & Sons, Inc. 7-36

 Part Routing Matrix
Machines
Parts 1 2 3 4 5 6 7 8 9 10 11 12
A x x x x x
B x x x x
C x x x
D x x x x x
E x x x
F x x x
G x x x x
H x x x

Figure 5.8
Copyright 2006 John Wiley & Sons, Inc. 7-37
 Revised Cellular Layout
Assembly

8 10 9 12

11
4 Cell 1 Cell 2 6 Cell 3
7

2 1 3 5

A B C
Raw materials

Copyright 2006 John Wiley & Sons, Inc. 7-38

Reordered Routing Matrix
Machines
Parts 1 2 4 8 10 3 6 9 5 7 11 12
A x x x x x
D x x x x x
F x x x
C x x x
G x x x x
B x x x x
H x x x
E x x x

Copyright 2006 John Wiley & Sons, Inc. 7-39

 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 VM
Engineering (November 1983).

Worker 3
VM

Paths of three
workers moving
within cell
Worker 2
G
Material
movement
L

Key: Final
inspection
S = Saw
L = Lathe
HM = Horizontal milling Finished

machine S Worker 1 part

VM = Vertical milling machine

In Out
G = Grinder
Copyright 2006 John Wiley & Sons, Inc. 7-40
 Automated Manufacturing Cell

Source: J. T. Black, “Cellular

Manufacturing Systems Reduce Setup
Time, Make Small Lot
Production Economical.” Industrial
Engineering (November 1983)

Copyright 2006 John Wiley & Sons, Inc. 7-41

 Advantages and Disadvantages
of Cellular Layouts
 Advantages  Disadvantages
 Reduced material   Inadequate part families
handling and transit time  Poorly balanced cells
 Reduced setup time  Expanded training and 
 Reduced work­in­  scheduling 
process inventory of workers
 Better use of human    Increased capital 
resources investment
 Easier to control
 Easier to automate

Copyright 2006 John Wiley & Sons, Inc. 7-42

 Flexible Manufacturing
Systems (FMS)
 FMS consists of numerous programmable 
machine tools connected by an automated 
material handling system and controlled by 
a common computer network
 FMS combines flexibility with efficiency
 FMS layouts differ based on
 variety of parts that the system can process
 size of  parts processed
 average processing time required for part 
completion

Copyright 2006 John Wiley & Sons, Inc. 7-43

 Full-Blown FMS

Copyright 2006 John Wiley & Sons, Inc. 7-44

 Mixed Model
Assembly Lines
 Produce multiple models in any order 
on one assembly line
 Issues in mixed model lines
 Line balancing
 U­shaped line
 Flexible workforce
 Model sequencing

Copyright 2006 John Wiley & Sons, Inc. 7-45

 Balancing U-Shaped Lines
Precedence diagram:

A B C

Cycle time = 12 min

D E

(a) Balanced for a straight line (b) Balanced for a U-shaped line

A,B C,D E
A,B
9 min 12 min 3 min
24 24
Efficiency = = = .6666 = 66.7 % C,D
3(12) 36

24 24
Efficiency = = = 100 % 12 min 12 min
2(12) 24
Copyright 2006 John Wiley & Sons, Inc. 7-46
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