facilities planning

Facilities Planning Facilities Planning - Unit 01- Unit 01

Facilities Planning IntroductionFacilities Planning Introduction

Facilities Planning Introduction - 2

Definition of Facility PlanningDefinition of Facility Planning

Facility Planning determines how an activity’s tangible fixed assets best support achieving the activity’s objectives.

Examples: In manufacturing, the objective is to support production. In an airport, the objective is to support the passenger

airplane interface. In a hospital, the objective is to provide medical care to

patients.


Hierarchy of Facility PlanningHierarchy of Facility Planning

Location - is the placement of a facility with respect to customers, suppliers, and other facilities with which it interfaces.

Structure - consists of the building and services (e.g., gas, water, power, heat, light, air, sewage).

Layout - consists of all equipment, machinery, and furnishings within the structure.

Handling System - consists of the mechanism by which all interactions required by the layout are satisfied (e.g., materials, personnel, information, and equipment handling systems).

Facility Planning

Structural Design

Facility Location

Facility Design

Handling System Design

Layout Design

Source for Figure: Tompkins and White, Facilities Planning, 2nd edition, Wiley


Strategic Facilities Planning IssuesStrategic Facilities Planning Issues1. Number, location, and sizes of warehouses and/or distribution centers.

2. Centralized versus decentralized storage supplies, raw materials, work-in-process, and finished goods for single- and multi-building sites, as well as single- and multi-site companies.

3. Acquisition of existing facilities versus design of model factories and distribution centers of the future.

4. Flexibility required because of market and technological uncertainties.

5. Interface between storage and manufacturing.

6. Level of vertical integration, including "subcontract versus manufacture" decisions.

7. Control systems, including materials control and equipment control.

8. Movement of materials between buildings, between sites.

9. Changes in customers' and suppliers' technology as well as firm's own manufacturing technology and materials handling, storage, and control technology.

10. Design-to-cost goals for facilities.


Facility DesignFacility DesignSequential Approach vs. Integrated ApproachSequential Approach vs. Integrated Approach

Product Design

Production Planning

Process Design

Facility Layout

Material Handling System Design

Sequential Approach


Integrated Approach:

Impressive results in cost, quality, productivity, sales, customer satisfaction, delivery time, inventory levels, space + handling requirements, building size, etc.

Product Design

Process Design

Schedule Design

Layout Design

+

Material Handling System Design

Concurrent Engineering

Terms of product, process, scheduling and facility design planners work with marketing, purchasing, etc. Personnel address the design process in an integrated way.

Facility DesignFacility DesignSequential Approach vs. Integrated ApproachSequential Approach vs. Integrated Approach


EnterpriseInput Output

Productivity = Output / Input

Productivity ModelProductivity Model


Hierarchy of Facility PlanningHierarchy of Facility PlanningLayout DesignLayout Design

Facility Planning

Structural Design

Facility Location

Facility Design

Handling System Design

Layout Design


Layout Design - Layout Design - IntroductionIntroduction

Facility layoutFacility layout means planning: for the location of all machines, utilities, employee

workstations, customer service areas, material storage areas, aisles, restrooms, lunchrooms, internal walls, offices, and computer rooms

for the flow patterns of materials and people around, into, and within buildings


Layout Design – Layout Design – IntroductionIntroductionPlanning for required Spaces and AreasPlanning for required Spaces and Areas

Equipment Work stations Material storage Rest/break areas Utilities Eating areas Aisles Offices


Location of these various areas impacts the flow through the system.

The layout can affect productivity and costs generated by the system.

Layout alternatives are limited by the amount and type of space required for the

various areas the amount and type of space available the operations strategy

Layout Design – Layout Design – IntroductionIntroduction Characteristics of the Facility Layout Decision Characteristics of the Facility Layout Decision


Layout decisions tend to be: Infrequent Expensive to implement Studied and evaluated extensively Long-term commitments

Layout Design – Layout Design – IntroductionIntroduction Characteristics of the Facility Layout Decision Characteristics of the Facility Layout Decision


Facility LayoutFacility Layout

A Layout problem may be to:A Layout problem may be to: determine the location for a new machine, develop a new layout for an existing production plant, develop a layout for a new production plant, etc.

A Layout problem may arises due to: A Layout problem may arises due to: changes in the design of a product, addition or deletion of a product, change in the demand of a product, changes in the design of the process, addition or deletion of a process, replacement of equipment, etc.


Facility Layout – Facility Layout – Strategic ImportanceStrategic Importance

Proper layout enables:Proper layout enables: 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

Poor Layout costs you time and money.Poor Layout costs you time and money.


ExampleExample of how a facility layout can save you money of how a facility layout can save you moneyMcDonald’s - New Kitchen LayoutMcDonald’s - New Kitchen Layout

No food prepared ahead except patty Elimination of some steps, shortening

of others New bun toasting machine (11 seconds

vs. 30 seconds) Repositioning condiment containers

(one motion, not two) Sandwiches assembled in order Production levels controlled by

computer Discard only meat when sandwiches

do not sell fast enough Savings of $100,000,000 per year in

food costs

McDonald’sover 95 billion served



Facility Innovations at McDonald’s over the yearsFacility Innovations at McDonald’s over the years

Indoor seating (1950’s) Drive-through window (1970s) Adding breakfast to the menu (1980s) Adding play areas (1990s)

Example Example of how a facility layout can save you moneyof how a facility layout can save you moneyMcDonald’s - New Kitchen LayoutMcDonald’s - New Kitchen Layout

Three out of the four are layout decisions, Three out of the four are layout decisions, which one isn’t?which one isn’t?




Layout Strategies - Layout Strategies - Manufacturing vs. ServiceManufacturing vs. Service

Characteristic Manufacturing Service

Output Tangible Intangible

Customer contact

Uniformity of input

Labor content

Uniformity of output

Measure of Productivity Easy Difficult

Correcting Quality High Low


Layout StrategiesLayout Strategies

Fixed-position layout When building large bulky projects such as ships

and buildings Process-oriented layout

When you have low-volume, high-variety production (“job shop”, intermittent production)

Product-oriented layout When you need the best personnel and machine

use in repetitive or continuous production


Layout StrategiesLayout Strategies

Office layout When you have office workers, their equipment,

and spaces/offices to provide for movement of information

Retail/service layout When you need lots of shelf space and to be able

to respond to customer behavior Warehouse layout

When you need to trade-off between space and material handling


Layout Strategies – Layout Strategies – Examples and CriteriaExamples and Criteria

Layout strategy Example Criteria

Service/retail Drug store

Grocery store

Department store

Expose customer to high margin items

Storage Distributor

Warehouse

Minimize storage and handling costs

Product oriented TV assembly line Minimize line imbalance, delay, and idle time


Areas of Concern in Layout StrategyAreas of Concern in Layout Strategy

LayoutStrategy

MaterialFlow

Communication

WorkCell

Safety

MaterialAttributes

Warehousing

ServiceAreas


Requirements of a Good LayoutRequirements of a Good Layout

an understanding of capacity and space requirements

selection of appropriate material handling equipment

decisions regarding environment and aesthetics identification and understanding of the

requirements for information flow identification of the cost of moving between the

various work areas


Straight-line Flow Pattern when possible Backtracking kept to a Minimum Predictable Production Time Little In-process materials storage Open Floor plans so everyone can see what is going on Bottlenecks under control Workstations close together Minimum of material handling Easy adjustment to changing conditions

Principles of a Good LayoutPrinciples of a Good LayoutManufacturingManufacturing


Layout in Services - Layout in Services - OfficeOffice

Situation:Situation: The office layout process deals with situations where the primary consideration is the movement of information and communications carried out by:

face-to-face conversations phone or computers movement of hard copy e-mail meetings intercom speakers

Examples:Examples: Hotel Executive Offices Accounting Firm Offices

An increasing number of the U.S. workforce work in an office environments


Situation:Situation: Service buildings differ from manufacturing facilities in that instead of product flow, the flow involves people and information.

Buildings must:Buildings must:be attractivehave handicap accessbe securebe wired for communications (computer networks, etc)provide for efficient customer flowhave adequate parking

Layout in Services – Layout in Services – OfficeOffice


Layout in Services – Layout in Services – OfficeOffice


Easily understood service flow pattern Adequate waiting facilities Easy communication with customers Customers in view of servers throughout the process Clear entry and exit points with adequate checkout facilities Customers see only what you want them to see Balance between waiting and service areas Minimum walking and material movement Lack of clutter

Principles of a Good LayoutPrinciples of a Good LayoutFace to Face ServicesFace to Face Services


Workstation

Tool & Fixture Locations

Workstation Design

VSub Micro

Layout

Cells or

Departments

Workstations or Work cell Features

Work cell of Department

IVMicro Layout

BuildingWork cells or Departments

Building Department or Block Layout

IIIMacro Layout

SiteBuildings or Site Features

Site PlanningII

Supra

World or Country

SitesSite Location &

SelectionI

Global

OutputEnvironmentSpace Planning

UnitActivityLevel

Layout LevelsLayout Levels

From: http://www.strategosinc.com/facility_plan_levels.htm


Layout Levels - Layout Levels - ContinuedContinued

At the Global level, we select a site location. This involves factors such as freight cost, labor cost, skill availability and site focus.

At the Supra-Layout level we plan the site. This includes number, size, and location of buildings. It includes infrastructure such as roads, water, gas and rail. This plan should look ahead to plant expansions and eventual site saturation

The Macro-Layout plans each building, structure or other sub-unit of the site. Operating departments are defined and located at this level. Frequently, this is the most important level of planning. A Macro-Layout institutionalizes the fundamental organizational structure in steel and concrete.



Layout Levels - Layout Levels - ContinuedContinued

The Micro-Level IV determines the location of specific equipment and furniture. The emphasis shifts from gross material flow to personal space and communication. Socio-Technical considerations dominate.

The sub micro level focuses on individual workers. Here we design workstations for efficiency, effectiveness and safety. Ergonomics is key.

Ideally, the design progresses from Global to Sub-Micro in distinct, sequential phases. At the end of each phase, the design is "frozen" by consensus.



New Trends in Manufacturing LayoutsNew Trends in Manufacturing Layouts

Designed for quality and flexibility Ability to quickly shift to different product models or

to different production rates Cellular layout within larger process layouts Automated material handling U-shaped production lines More open work areas with fewer walls, partitions, or

other obstacles Smaller and more compact factory layouts Less space provided for storage of inventories

throughout the layout


Wrap-Up: World-Class PracticesWrap-Up: World-Class Practices

Strive for flexibility in layouts Multi-job training of workers Sophisticated preventive-maintenance programs Flexible machines Empowered workers trained in problem solving Layouts small and compact

Services follow the above practices plus incorporate customer needs in design


Few More Words onFew More Words onLayout Strategy ObjectivesLayout Strategy Objectives Develop an economical layout which will meet the

requirements of: product design and volume (product strategy) process equipment and capacity (process strategy) quality of work life (human resource strategy) building and site constraints (location strategy)


Facilities Planning – Facilities Planning – What’s Coming up?What’s Coming up?

Unit 01Unit 01 - Facilities Planning IntroductionUnit 02Unit 02 - Transformation Systems and Process SelectionUnit 03Unit 03 - Layout Flow AnalysisUnit 04Unit 04 - Layout Types: ManufacturingUnit 05Unit 05 - Layout Types: Service and Retail Unit 06Unit 06 - Balancing Production LinesUnit 07Unit 07 - Layout Design: Systematic Layout PlanningUnit 08Unit 08 - General Layout Planning and EvaluationUnit 09Unit 09 - Material Handling PrinciplesUnit 10Unit 10 - Material Handling EquipmentUnit 11Unit 11 - Warehousing and StorageUnit 12 Unit 12 - Facilities Location Planning and Analysis

facilities planning - unit 01 facilities planning introduction

Documents

facility design planners

introduction slide

strategic facilities

design of model factories

materials handling

integrated approach

materials control