Facility Layout
Chapter 10
pages 345-349, 359-360, 367-368
MGMT 326
Foundations
of Operations
Products &
Processes
Quality
Assurance
Introduction
Managing
Projects
Managing
Quality
Capacity
and
Location
Product
Design
Statistical
Process
Control
Facility
Layout
Strategy
Process
Design
Just-in-Time & Lean Systems
Facilities
Planning
& Control
Presentation Outline
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Importance of layout planning
Process and product layouts
Office layouts
Designing cellular layouts
What Is Layout Planning?
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Layout planning is determining the best
physical arrangement of resources
within a facility
Why is layout planning important?
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Eliminates unnecessary costs for space and
materials handling
Reduces work-in-process inventory
Produces goods and services faster
Reduces distances that workers must travel
in the workplace
Improves communication and morale
Increases retail sales
Improves brand image
Types of Layouts
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Process layouts: Group similar resources together
Product layouts: Designed to produce a specific product,
or a small number of products efficiently
Hybrid layouts: Combine aspects of both process and
product layouts
 Example: cellular layout
Fixed-Position layouts: Product is too large to move
 Examples: building construction, shipyard
 Resources must be brought to where they are needed
Process and Product Layouts
Process Layouts
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Used in project and batch manufacturing
(intermittent processes)
Also used in department stores, offices,
hospitals, and universities
Able to make or sell a variety of products
Use general purpose resources
Less automation than in product layouts
Process Layouts (2)
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Material handling costs per unit are higher
than in product layouts
Scheduling production is more complex than
in product layouts
Product Layouts
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Used in assembly lines and continuous
manufacturing (repetitive processes)
A cafeteria line is a product layout
In manufacturing, product layouts are used to
produce one product, or a small group of
products, efficiently
Uses special purpose resources
More automation than in process layouts
Product Layouts (2)
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Material handling costs per unit are lower
than in process layouts
Scheduling production is simpler than in
process layouts
Designing Process Layouts
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Step 1: Gather information:
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Space needed, space available, importance of proximity
between various units
Step 2: Develop alternative block plans:
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Using trial-and-error or decision support tools
2 approaches
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Relationship (REL) chart
From-to matrix
Can use both
Decision support systems are heuristic methods
 Usually give a "good" solution
 Solution may not be optimal (best solution)
Designing Process Layouts (2)
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Step 3: Develop a detailed layout
 Consider exact sizes and shapes of
departments and work centers including
aisles and stairways
 Tools like drawings, 3-D models, and
computer-assisted design (CAD) software
are often used
Process Layout Example
Block layout for a sports medicine clinic
A
Radiology
B
Laboratory
C
Lobby &
Waiting
D
Examining
Rooms
E
Surgery &
Recovery
F
Physical
Therapy
Process Layout Example (2)
Process Layout Example (3)
Process Layout Example (4)
Proposed Layout
A
Radiology
B
Examining
Rooms
C
Lobby &
Waiting
D
Surgery &
Recovery
E
Laboratory
F
Physical
Therapy
Process Layout Example (5)
Designing Product Layouts
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Objectives
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Produce the required number of units to
meet demand
Use workers and equipment efficiently
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High utilization of workers and equipment
Balance workload among employees
Designing Product Layouts (2)
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Based on a precedence diagram
Assign tasks to work stations
Assign work stations to locations
Office Layouts
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Almost half the U. S. work force works in an
office
Human interaction and communication are
the primary considerations in office layouts
People who need to interact frequently should
be close to each other
One key layout tradeoff is between closeness
and privacy
Office Layouts (2)
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Open concept offices promote understanding
and trust.
A few closed rooms are needed for private
discussions, such as personnel matters.
Moveable walls provide flexibility to change
the layout when needed.
Office Layout Example
3D Systems
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Hi-tech company – provides equipment and
materials for rapid product design and
manufacturing
Rock Hill headquarters handles product design,
sales, training, and administration
Open office plan
Conference room
Areas for informal meetings
Product showroom for customers
Cyber café and fitness center for employees