Layout Strategies and Line Balancing

Atanu Chaudhuri

What is Facility Layout?

Location or arrangement of everything within & around buildings Objectives are to maximize
Customer satisfaction Utilization of space, equipment, & people

Efficient flow of material, & people

Employee morale & safety

Types of Layouts
Process - deals with low-volume, high-variety production (job shop, intermittent production) Group Technology / Cellular product families Fixed-position - large bulky projects such as ships and buildings Product - seeks the best personnel and machine use in repetitive or continuous production Office - positions workers, their equipment, and spaces/offices to provide for movement of information Retail - allocates shelf space and responds to customer behavior Warehouse - addresses trade-offs between space and material handling

Types of Layouts
High Product Layout

Medium

Group Technology / Cellular Layout

Fixed Location Layout Low Medium Process Layout High

Low

Variety

Process Layout
Lathe Warehouse Lathe Mill Mill

Lathe

Drill
Drill Grind Grind

Weld Paint Assembly Assembly

Weld

Lathe Mill Mill

Paint

Warehouse

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 moving between centers Departments having similar processes located in close proximity

Design places departments with large flows of material or people together

Process Layout - Advantages

Better utilization of machines Fewer machines required High degree of flexibility relative to equipment or manpower allocation for specific tasks Comparatively low investment in machines is required The diversity of the task offers a more interesting and satisfying occupation for the operator Specialized supervision is possible

Process Layout - Limitations

Since longer flow lines usually result, material handling is more expensive Production planning and control systems are more involved Total production time is usually longer Comparatively large amounts of in-process inventory results Space and capital are tied up by work-in-process Because of the diversity of the jobs in specialized departments, higher grades of skill are required

Steps in Developing a Process-Oriented Layout

Construct a from-to matrix Determine space requirements for each department Develop an initial schematic diagram Determine the cost of this layout By trial-and-error (or more sophisticated means), try to improve the initial layout Prepare a detailed plan that evaluates factors in addition to transportation cost

Process-Oriented Layout
Minimize cost =
where

Xij Cij

i=1 j=1

n = total number of work centers or departments i, j = individual departments Xij = number of loads moved from department i to department j Cij = cost to move a load between department i and department j

Process Layout Example

Arrange six departments in a factory to minimize the material handling costs. Each department is 20 x 20 feet and the building is 60 feet long and 40 feet wide.
1. Construct a from-to matrix

2. Determine the space requirements

3. Develop an initial schematic diagram 4. Determine the cost of this layout

5. Try to improve the layout

6. Prepare a detailed plan

Process Layout Example

Number of loads per week
Department Assembly (1) Painting (2) Machine Shop (3) Receiving (4) Shipping (5) Testing (6)

Assembly (1) Painting (2) Machine Shop (3) Receiving (4) Shipping (5) Testing (6)

50

100 30

0 50 20

0 10 0 50

20 0 100 0 0

Figure 9.4

Process Layout Example

Area 1 Area 2 Area 3 Assembly Department (1) Painting Department (2) Machine Shop Department (3) 40 Receiving Department (4) Shipping Department (5) Testing Department (6)

Figure 9.5

Area 4

Area 5 60

Area 6

Process Layout Example

Interdepartmental Flow Graph
100

50

2 10

30

100

50

5
Figure 9.6

Process Layout Example

Cost =
Cost = + +
n

Xij Cij

i=1 j=1

$50 + $200 + $40 (1 and 2) (1 and 3) (1 and 6) $30 + $50 + $10 (2 and 3) (2 and 4) (2 and 5) $40 + $100 + $50 (3 and 4) (3 and 6) (4 and 5) $1 to move material across adjacent departments and $2 for non-adjacent departments

= $570

Process Layout Example

Revised Interdepartmental Flow Graph
30

50

100

50 50

100

5
Figure 9.7

Process Layout Example

Cost =
Cost = + +
n

Xij Cij

i=1 j=1

$50 + $100 + $20 (1 and 2) (1 and 3) (1 and 6) $60 + $50 + $10 (2 and 3) (2 and 4) (2 and 5) $40 + $100 + $50 (3 and 4) (3 and 6) (4 and 5)

= $480

Process Layout Example

Area 1 Area 2 Area 3 Painting Department (2) Assembly Department (1) Machine Shop Department (3) 40 Receiving Department (4) Shipping Department (5) Testing Department (6)

Figure 9.8

Area 4

Area 5 60

Area 6

Computer Software
Graphical approach only works for small problems Computer programs are available to solve bigger problems
CRAFT

ALDEP
CORELAP Factory Flow

CRAFT Example
1 2 PATTERN 3 4 5 6

1
1 2 D D

2
D D

PATTERN 3 4 D D D D

5
B B

6
B B

1
2 3 4 5 6

A
A D C F E

A
A D C F E

A
A D D F E

A
A D D F E

B
B D D F E

B
B D D D D

3
4 5 6

D
C A A

D
C A A

D
D A A

E
E A F

E
E A F

E
F F F

TOTAL COST 20,100 EST. COST REDUCTION ITERATION 0

.00

TOTAL COST 14,390 EST. COST REDUCTION ITERATION 3

70.
Figure 9.9

(a)

(b)

Group Technology / Cellular Layout

Warehouse Lathe

Drill

Grind

Drill

Press

Assembly

Lathe

Lathe

Drill

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.

Improved layout - cross-trained workers can assist each other. May be able to add a third worker as additional output is needed.

Figure 9.10 (a)

http://www.reliableplant.com/View/16084/exampl e-of-a-lean-manufacturing-cell

Improving Layouts Using Work Cells

Current layout - straight lines make it hard to balance tasks because work may not be divided evenly

Improved layout - in U shape, workers have better access. Four cross-trained workers were reduced.

Figure 9.10 (b)

U-shaped line may reduce employee movement and space requirements while enhancing communication, reducing the number of workers, and facilitating inspection

Requirements of Work Cells

1. Identification of families of products 2. A high level of training, flexibility and empowerment of employees 3. Being self-contained, with its own equipment and resources 4. Test (poka-yoke) at each station in the cell

Group Technology / Cellular - Limitations General supervision is required Higher skill levels required of employees than for product layout Compromise between product and process layout, with associated limitations

Depends on balanced material flow through the cell; otherwise, buffers and work-in-process storage are required
Lower machine utilization than for process layout

Product Layout
Lathe Warehouse Press Mill Lathe

Drill
Bend Drill

Grind Drill

Drill

Lathe

Drill

Assembly

Product Layout
Facility organized around product Design minimizes Line imbalance Delay between work stations Types: Fabrication line; assembly line

Product Layout - Advantages

Since the layout corresponds to the sequence of operations, smooth and logical flow lines result Since the work from one process is fed directly into the next, small in-process inventories result Total production time per unit is short Since the machines are located as to minimize distances between consecutive operations, material handling is reduced

Little skill is usually required by operators at the production line; hence, training is simple, short and inexpensive Simple production planning and control systems are possible Less space is occupied by work in transit and for temporary storage Lower variable cost per unit

Product Layout - Limitations

A breakdown of one machine may lead to complete stoppage of the line that follows that machine Since the layout is determined by the product, a change in product design may require major alterations in the layout The pace of production is determined by the slowest machine Comparatively high investment is required, as identical machines (a few not fully utilized) are sometimes distributed along the line Lack of flexibility

Product Requirements for Product Layout

Standardized product High production volume Stable production quantities Uniform quality of raw materials & components

Product-Oriented Layout - Assumptions

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 its life cycle that justifies investment in specialized equipment Supplies of raw materials and components are adequate and of uniform quality ensure they will work with specialized equipment

Product-Oriented Layout Types

Assembly Line Assembles fabricated parts Uses workstation Repetitive process Paced by tasks Balanced by moving tasks Fabrication Line Builds components Uses series of machines Repetitive process Machine paced Balanced by physical redesign

Fixed Position Layout

Lathe Warehouse Press

Grind
Warehouse

Drill

Paint

Assembly

Fixed-Position Layout
Design is for stationary project Workers and equipment come to site

Limited space at site

Changing material needs

Fixed-Position Layout - Advantages

Material movement is reduced Promotes job enlargement by allowing individuals or teams the perform whole job

Continuity of operations and responsibility results from team

High flexibility; can accommodate changes in product design, product mix, and production volume Independent of production centers allows scheduling to achieve minimum total production time

Fixed-Position Layout - Limitations

Increased movement of personnel and equipment Equipment duplication may occur Higher skill requirements for personnel

General supervision required

Cumbersome and costly positioning of material and machinery Low equipment utilization

Factors Complicating a Fixed Position Layout

Limited space Coordinating service providers in sequence, on time, on schedule, and with other activities occurring concurrently Volume of materials changes often

Office Layout
Design positions people, equipment, & offices for maximum information flow Arranged by process or product Example: Payroll dept. is by process Relationship chart used Insurance company Software company

Supermarket Retail Layout

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

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

Store Layout

Figure 9.2

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

Computerized tool for shelf-space management
5 facings
Shampoo Shampoo Shampoo Shampoo Shampoo

Generated from stores scanner data on sales

Conditioner Conditioner

Conditioner

Shampoo

Shampoo

Shampoo

Shampoo

Often supplied by manufacturer

2 ft.

Servicescapes
Ambient conditions - background characteristics such as lighting, sound, smell, and temperature

Spatial layout and functionality - which involve customer circulation path planning, aisle characteristics, and product grouping
Signs, symbols, and artifacts - characteristics of building design that carry social significance

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

Automated Storage and Retrieval Systems (ASRSs) can significantly improve warehouse productivity by an estimated 500% Dock location is a key design element

Warehouse Layout
Design balances space (cube) utilization & handling cost Similar to process layout Items moved between dock & various storage areas Optimum layout depends on Variety of items stored Number of items picked

Cross Docking
Transferring goods from incoming trucks at receiving docks to outgoing trucks at shipping docks Avoids placing goods into storage Requires suppliers provide effective addressing (bar codes) and packaging that provides for rapid transhipment

Arnold Palmers Hospital Case Discussion

Assembly Line Balancing

Analysis of production lines Nearly equally divides work between workstations while meeting required output Objectives
Maximize efficiency Minimize number of work stations

McDonalds Assembly Line

Assembly Line Balancing The General Procedure

Determine cycle time by taking the productive time available per day and dividing it demand per day Calculate the theoretical minimum number of work stations by dividing total task time by cycle time Perform the line balance and assign specific assembly tasks to each work station

Assembly Line Balancing Steps

1. 2. 3. 4. 5. 6. 7. 8. Determine tasks (operations) Determine sequence Draw precedence diagram Estimate task times Calculate cycle time Calculate number of work stations Assign tasks Calculate efficiency

Assembly line balancing: Example

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.

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.

59

Assembly line balancing: Example

Suppose that one worker performs all three tasks (sequentially). Then in an 8-hour shift, the worker could produce 480 parts/day.

Assembly line balancing: Example

Now suppose, three workers are assigned for the line, each performing one of the tasks. The first operator can produce 120 parts per hour, since the task time is 0.5 min. Thus, a total of 960 parts/day. The second worker takes only 0.3 min to finish the tasks and hence can produce 1,600 parts/day. Lastly, the third worker can produce 2,400 parts/day. However, the second worker cannot produce 1,600 parts because the first worker has a lower production rate. So the second worker is idle some of the time waiting on components to arrive from the first operator.

Assembly line balancing: Example

Same thing happens for the third worker. So the maximum output of this three-operator assembly line is 960 parts/day. That is, the workstation 1 performing task A is a bottleneck in the process.

Assembly line balancing: Example

Now suppose that two workers are assigned to the assembly line. The first operator performs task A; and the second operator performs tasks B and C. Now, since each operator needs exactly 0.5 min to complete the assigned duties, the line is said to be balanced and the production is 960 parts per day. Thus, we have achieved the same output (of 960 parts) using just two operators.

Assembly line balancing

Cycle time The interval between successive outputs coming off the assembly line. In the previous example, if we use only one operator, the cycle time is 1 minute. One completed assembly per minute. If two workstations are used, the cycle time is 0.5 minutes. Finally, if three workstations are used, the cycle time is still 0.5 minutes. Task A is the bottleneck. Thus, the line can produce only one assembly every 0.5 minutes.

Assembly line balancing: Equations

Sum of task times Min. # of workstati required ons Cycle time CT Total time available (# workstati ons)(CT ) N CT Total idle time N CT t Assembly line efficiency

N CT

Balance delay 1 - Assembly line efficiency.

65

Wing Component Example

Task Performance Time (minutes) 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

A 10 B 11 C 5 D 4 E 12 F 3 G 7 H 11 I 3 Total time 66

Wing Component Example

Task Performance Time (minutes) Task Must Follow Task Listed Below A B B A C, D F E G, H

A 10 B 11 C 5 D 4 E 12 F 3 G 7 H 11 I 3 Total time 66

10

11

B
4

G
3

12

11

Wing Component Example

Task Performance Time (minutes) Task Must Follow Task Listed Below 480 available mins per day 40 units required

A 10 B 11 C 5 D 4 E 12 F 3 G 7 H 11 I 3 Total time 66

workstations

A Production time available B per day Cycle time = B Units required per day A = 480 / 40 5 C, D = 12 minutes per unit C F 10 11 3 n E Time for task iF Minimum A i =B G, H 1 4 number of =
12

G
3

Cycle D time

11

= 66 / 12 E = 5.5 or 6 stations

H
Figure 9.13

Wing Component Example Line-Balancing Heuristics

1. Longest task time Choose the available task 480 available mins Performance Task Must Follow longest task time with the per day Time Task Listed Task2. Most following tasks Below (minutes) 40 units Choose the available task required with the largestCycle timeof 12 mins number = A 10 following tasks B 11 A Minimum = 5.5 C 3. Ranked positional 5 B workstations for or 6 Choose the available task D B weight4 which the sum of following E 12 A task times is the longest 5 F 3 C, D Choose the available task C G 4. Shortest task time 7 F 10 shortest task time 11 3 7 with the H 11 E A B G F I 5. Least number of 3 G,Choose the available task H 4 3 following with the least number of Total time 66 tasks D I 12 11 following tasks
E

Wing Component Example

Ensure that sum of processing times at a workstation do not exceed the cycle time Performance Time (minutes) Task Must Follow Task Listed Below A 5 B C B A C, D 4 F D E G, H 480 available mins per day 40 units required Cycle time = 12 mins Minimum workstations = 5.5 or 6
3 7

Task

A 10 B 11 Station C 5 2 D 4 11 E 10 12 B F A 3 G 7 H 11 I 3 Station Total time 66

1

F
Station 3

I
11
Station 6

12

E
Station 4

H
Station 5

Wing Component Example

Task Performance Time (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 G 7 F Task times Efficiency = (Actual number of workstations) x (cycle time) H 11 E I 3 G, H = 66 minutes / (6 stations) x (12 minutes) Total time 66 = 91.7%