Layout Strategy Layout StrategyInnovation at McDonalds Innovation at McDonaldsIndoor seating (1950s)Drive-through window (1970s)Adding breakfast to the menu (1980s)NEW KITCHEN LAYOUT _ New Just in Time breakfastAdding breakfast to the menu (1980s)Adding play areas (1990s)(Four out of the Five are layout decisions)What is Facility Layout What is Facility LayoutLocation or arrangement of everything within & around buildings Objectives are to maximize Customer satisfaction Utilization of space, equipment, & people Efficient flow of information, material, & people Employee morale & safetySavings of upto 30% of manufacturing (incl.inventory) costs possibleby using proper layoutProcess Lay out Process Lay outFunctional Lay Out Machines with Similar Functions Grouped TogetherA Product Layout A Product LayoutIn InOut OutCellular Lay Out Cellular Lay OutEach cell processes a family of products with similar sequence of operationsSix Layout Strategies Six Layout StrategiesFixed-position layout large bulky projects such as ships andbuildingsProcess-oriented layout deals with low-volumehigh-variety production (job deals with low volume, high variety production ( job shop, intermittent production) Product-oriented layout seeks the best personnel and machine use in repetitive or continuous productionSix Layout StrategiesSix Layout Strategies -- continued continued Retail/service layout allocates shelf space and responds to customer behavior Warehouse layout addresses trade offs between space and material handling addresses trade-offs between space and material handlingOffice layout positions workers, their equipment, and spaces/offices to provide for movement of informationFixed Fixed--Position Layout Position LayoutDesign is for stationary project Workers and equipment come to siteComplicating factors Complicating factors Limited space at site Changing material needs- at each stage of project Dynamic volumes at each stageProcess Process- -Oriented Layout Oriented Layout Design places departments with large flows of material or people together Department areas having similar processes located in close proximity e.g., All x-ray machines in same area Used with process-focused processesEmergency Room Layout Emergency Room LayoutE.R.Triage roomPatient B - erratic pacemakerPatient A -broken legE.R. beds Pharmacy Billing/exitHallwaySteps in Developing a Steps in Developing aProcess Process- -Oriented Layout Oriented Layout1 Construct a from-to matrix2 Determine space requirements for each department3 Develop an initial schematic diagram p g4 Determine the cost of this layout5 By trial-and-error (or more sophisticated means), try to improve the initial layout6 Prepare a detailed plan that evaluates factors in addition to transportation costCost of Process Cost of Process--Oriented Layout Oriented Layouts department orcenters workof numbertotal n whereC X costMinimizen1 in1 jij ij=== =j department and i departmentbetweenload a move cost to Cj department to i departmentfrom moved loads of numberXs department individual j i,ijij===Interdepartmental Flow of Parts Interdepartmental Flow of Parts1 2 3 4 5 61250 100 0 0 2030 50 10 020 0 100345620 0 10050 00Possible Layout 1 Possible Layout 1AssemblyDepartment(1)PrintingDepartment(2)Machine ShopDepartment(3)Room 1 Room 2 Room 3ReceivingDepartment(4)ShippingDepartment(5)TestingDepartment(6)Room 4 Room 5 Room 66040Interdepartmental Flow GraphInterdepartmental Flow Graph Showing Number of Weekly Loads Showing Number of Weekly Loads10050 301 2 310501004 5 6Interdepartmental Flow GraphInterdepartmental Flow Graph Showing Number of Weekly Loads Showing Number of Weekly Loads100 50302 1 3501004 5 6Possible Layout 3 Possible Layout 3PaintingDepartment(2)AssemblyDepartment(1)Machine ShopDepartment(3)Room 1 Room 2 Room 3ReceivingDepartment(4)ShippingDepartment(5)TestingDepartment(6)Room 4 Room 5 Room 66040Computer Programs to Assist inComputer Programs to Assist in Layout LayoutCRAFTSPACECRAFTCRAFT 3-DMULTIPLE MULTIPLECORELAPALDEPCOFADFADES - expert systemOut Out- -Patient Hospital Example Patient Hospital ExampleCRAFT CRAFTA A A A B BA A A A B BD D D D D DD D D D B BD D D D B BD D D E E E1 2 3 4 5 6 1 2 3 4 5 6123123Legend:A = xray/MRI roomsB = laboratoriesC = admissionsC C D D D DF F F F F DE E E E E DC C D E E FA A A A A FA A A F F F456456Total cost:20,100Est. Cost Reduction .00Iteration0Total cost: 14,390Est. Cost Reduction 70.Iteration3D = exam roomsE = operating roomsF = recovery rooms= ==n1 in1 jij ijC X costMinimizeOffice Layout Office LayoutDesign positions people, equipment, & offices for maximum information flowArranged by process or product Example: Payroll dept. is by process p y p y pRelationship chart usedExamples Insurance company Software companyOffice Layout Floor Plan Office Layout Floor PlanAccounting AccountingFinance FinanceManager ManagerBrand X Brand XFin. Acct.Relationship Chart Relationship Chart1 PresidentO2 Costing UA A112233Ordinary closeness: President (1) & Costing (2)44A A3 Engineering IO4 Presidents SecretaryAbsolutely necessary: President (1) & Secretary (4) I = ImportantU = UnimportantOffice Relationship Shart Office Relationship Shart1President2Chief Technology Officer3Engineers Area4SecretaryUIIIOOAOAAIIII UVal. ClosenessA Absolutely necessaryE Especiallyy5Office entrance7Equipment cabinet8 Photocopy equipment9 Storage room9 Storage roomAUOEOEIAXOUEIEUAEAXUUOOUOp yimportantI ImportantO Ordinary OKU UnimportantX Not desirableRetail/Service Layout Retail/Service LayoutDesign maximizes product exposure to customersDecision variables Store flow pattern Allocation of (shelf) space to products Types Grid design Free-flow designVideoRetail LayoutsRetail Layouts - -Some Rules of Thumb Some Rules of Thumb Locate high-draw items around the periphery of the store Use prominent locations such as the first or last aisle for high-impulse and high margin items Remove crossover aisles that allow customers the opportunity to move between aisles opportunity to move between aisles Distribute what are known in the trade as power items (items that may dominate a shopping trip) to both sides of an aisle, and disperse them to increase the viewing of other items Use end aisle locations because they have a very high exposure rateRetail /Service LayoutRetail /Service Layout --Grid Design Grid DesignGrocery Store Grocery StoreMeat BreadMilkProduceOffice Office Carts CartsCheck Check--out outFrozen FoodsRetail/Service LayoutRetail/Service Layout - -Free Free--Flow Design Flow DesignFeature FeatureTrans. Trans.Apparel Store Apparel StoreFeature FeatureDisplayDisplay Table TableCounter CounterFinishedgoodsCNC MachineFLEXIBLE MANUFACTURING SYSTEMPartsComputercontrolroomTerminalCNC MachinePalletAutomatic tool changer Programmable manipulators Follow specified path Better than humans with respect to FLEXIBLE MANUFACTURING SYSTEM A COMPONENT Hostile environments Long hours Consistency Adoption has been slowed by ineffective integration and adaptation of systemsAnalysis of production linesNearly equally divides work between workstations while meeting required outputLINE BALANCINGg q pObjectives Maximize efficiency Minimize number of work stationsAssembly Line Balancing Assembly Line Balancing1 3245Work WorkWorkWork Station StationWork Station Work StationStation Station25Office OfficeBelt Conveyor Belt ConveyorNote: 5 tasks or operations; 3 work stations Note: 5 tasks or operations; 3 work stationsWork Station Work Station1. Precedence requirements Physical restriction, order of operationsLINE BALANCING - CONSTRAINTS2. Cycle time restrictions Max. operating time allowed for each workstation Depend on demand rate, production timeii = 1tiE =ii = 1tiN =EfficiencyMinimum number of workstationsLINE EFFICIENCYnCaE =CdN =ti= completion time for element ij = number of work elementsn = actual number of workstationsCa= actual cycle timeCd= desired cycle timeCd= Production time available / Desired units of outputCycle Time Example Cycle Time ExampleCd= production time availabledesired units of outputCd= cycle time, N= No. of work stations, Flow time = time taken to complete allstationsdesired units of outputCd= (8 hours x 60 minutes / hour)(120 units)Cd== 4 minutes480120Flow Time vs Cycle Time Flow Time vs Cycle Time Cycle time = max time spent at any station Flow time = time to complete all stations1 2 34 minutes 4 minutes 4 minutes 4 minutes 4 minutes 4 minutesFlow time = 4 + 4 + 4 = 12 minutes Flow time = 4 + 4 + 4 = 12 minutesCycle time = max (4, 4, 4) = 4 minutes Cycle time = max (4, 4, 4) = 4 minutesDetermine cycle time by taking the demand (or production rate) per day and dividing it into the productive time available per dayC l l tthth ti li i b fk LINE BALANCING GENERAL PROCESSCalculate the theoretical minimum number of work stations by dividing total task time by cycle timePerform the line balance and assign specific assembly tasks to each work station1. Determine tasks (operations)2. Determine sequence3. Draw precedence diagram4. Estimate task timesLINE BALANCING PROCESS STEPS5. Calculate cycle time 6. Calculate number of work stations7. Assign tasks 8. Calculate efficiencyA BCFG I10 Min. 10 Min.5511 11 33 77 33LINE BALANCING EXAMPLE PRECEDENCE DIAGRAME HDF12 124411 11Suppose that 40 products are required in one day (8 hour shift)Assembly Line Balancing Equations Assembly Line Balancing EquationsCycle time= Production time availableDemand per dayMinimum number of Task times= number of work stations Cycle timeEfficiency = Task times* (Cycle time)(Actual number of work stations)C101153 7LINE BALANCING SOLUTION TO PRECEDENCE DIAGRAMA BEDF GIH311 124Cd=12 mins, Eff = 91%Line Balancing:Line Balancing: Example 2 Example 2WORK ELEMENT WORK ELEMENT PRECEDENCE PRECEDENCE TIME (MIN) TIME (MIN)AA Press out sheet of fruit Press out sheet of fruit 0.1 0.1BB Cut into strips Cut into strips A A 0.2 0.2CC Outline fun shapes Outline fun shapes A A 0.4 0.4DD Roll up and package Roll up and package B, C B, C 0.3 0.3Demand requirement = 6000 units per week; Time = 40 hours per weekDD Roll up and package Roll up and package B, C B, C 0.3 0.30.1 0.10.2 0.20.4 0.40.3 0.3DBCALine Balancing: Example (cont.) Line Balancing: Example (cont.)WORK ELEMENT WORK ELEMENT PRECEDENCE PRECEDENCE TIME (MIN) TIME (MIN)AA Press out sheet of fruit Press out sheet of fruit 0.1 0.1BB Cut into strips Cut into strips A A 0.2 0.2CC Outline fun shapes Outline fun shapes A A 0.4 0.4DD Roll up and package Roll up and package B, C B, C 0.3 0.3 DD Roll up and package Roll up and package B, C B, C 0.3 0.3Cd= == 0.4 minute40 hours x 60 minutes / hour6,000 units24006000N= == 2.5 3 workstations1.00.40.1 + 0.2 + 0.3 + 0.40.4Line Balancing: Example (cont.) Line Balancing: Example (cont.)REMAINING REMAININGWORKSTATION ELEMENT TIME ELEMENTS1 A 0.3 B, CB 0.1 C, D2 C 0.0 D3 D 0 1CCdd= 0.4 = 0.4NN= 2.5 = 2.53 D 0.1 none0.1 0.10.2 0.20.4 0.40.3 0.3DBCAA, B C DWork station 1Work station 2Work station 3CCdd= 0.4 = 0.4NN= 2.5 = 2.5Line Balancing: Example (cont.) Line Balancing: Example (cont.)0.3 minute0.4 minute0.3 minuteE= == 0.833 = 83.3%0.1 + 0.2 + 0.3 + 0.43(0.4)1.01.2Computerized LineComputerized Line Balancing Balancing Use heuristics to assign tasks to workstations Longest operation timeLongest operation time Shortest operation time Most number of following tasks Least number of following tasks Ranked positional weightCellular LayoutCellular Layout - - Work Cells Work CellsSpecial case of product-oriented layout - in what is ordinarily a process-oriented facilityConsists of different machines brought together to k d t make a productTemporary arrangement onlyExample: Assembly line set up to produce 3000 identical parts in a job shopProcessProcess vs vs Cellular Layout Cellular LayoutImproving Layouts by Moving toImproving Layouts by Moving to the Work Cell Concept the Work Cell ConceptLean Manufacturing PrinciplesLean means manufacturing without waste" Waste ("muda" in Japanese) has many forms Material, time, idle equipment, and inventory Most companies waste 70%-90% of their available resources Even the best Lean Manufacturers probably waste 30% Lean Manufacturing and Cellular Manufacturing improve material handling, inventory, quality, scheduling, personnel and i f i customer satisfaction.A set of techniques that identify and eliminate waste has evolved: "Lean Manufacturing."Cellular ManufacturingPull Scheduling (Kanban)Six Sigma / Total Quality ManagementRapid Setup (SMED)Team DevelopmentRoadmap to Manufacturing ExcellenceCellular Manufacturing- The Heart of LeanCellular Manufacturing and work cells are at the heart of Lean Manufacturing. Their benefits are many and varied. They increase productivity and quality. Cells simplify material flow, management and even accounting systems.Cellular Manufacturing seems simpleBut beneath thisCellular Manufacturing seems simple. But beneath this deceptive simplicity are sophisticated Socio-Technical Systems. Proper functioning depends on subtle interactions of people and equipment. Each element must fit with the others in a smoothly functioning, self-regulating and self-improving operation.ProcessProcess vs vs Cellular Layout Cellular LayoutTypes of Cells -Part Family (or Group Technology) Cells Part Family (or Group Technology) Cells A family of similar items are made in a self contained cell Each product may use only some of the cells facilities Operators are flexible, work in teams & have greater autonomy Complex routes through the cell are permitted, group Complex routes through the cell are permitted, group layout common but line possible Cells offer substantial performance improvements especially lead time & WIP reductions, delivery reliability, flexibility Group Technology types are the most important and numerous, but FMS/FMCs also fall in this category Family size decreases GT => FMC => FMSThirteen PartsThirteen Parts Same Family Same FamilyTypes of Cells Nagare CellsOperators walk the part round the processunit productionSemi-automatic plant usedmanual load, auto run & l d unloadDistance walked criticalcareful handling designnarrow plantAdjust output by altering the number& routes of the operators!Used in automotive and electronics industriesCellular Manufacturing Cellular Manufacturing Application of GT principles to shop floor Cellular manufacturing consists of cells where each cell is dedicated to produce one part family.G ll ll l f t i l th Generally, cellular manufacturing plants have a miscellaneous facility, in addition to cells dedicated to part families, that has the capability of processing many diverse operations.These are helpful in processing parts that needed to be farmed out of their cell for one or two operations.Functional Lay out Functional Lay outFunctional Lay Out Machines with Similar Functions Grouped TogetherCellular Lay Out Cellular Lay OutEach cell processes a family of products with similar sequence of operationsCell Formation Criteria Cell Formation Criteria Parts grouped based on similarity of shape Parts grouped based on similarity of operations Machinery grouped based on part family superset of operations on individual products Minimal machinery shared between cells Minimal machinery shared between cells Machinery/equipment shared between most of the products grouped into remainder cells (Heat Treatment, Protective Treatments, etc.) Machine layout within a cell in linear flow Miscellaneous facility to provide varied capabilities not available in each cell.MachinesParts 1 2 3 4 5 6 7 8 9 10 11 12A x x x x xB x x x xC x x xD x x x x xE x x xF x x xGMachinesParts 1 2 3 4 5 6 7 8 9 10 11 12A x x x x xB x x x xC x x xD x x x x xE x x xF x x xGAssembly123456 789101112Assembly Assembly123456 789101112Conversion from process to Cellular layout example (use of Kings algorithm)G x x x xH x x xG x x x xH x x x369Assembly1 248 10571112ABCRaw materialsCell 1 Cell 2 Cell 3369Assembly1 248 10571112ABCRaw materials369336699Assembly1 248 1011 224488 10 10571112557711 1112 12ABCRaw materialsCell 1 Cell 2 Cell 3C A B Raw materials C A B Raw materials C A B Raw materialsMachinesParts 1 2 4 8 10 3 6 9 5 7 11 12A x x x x xD x x x x xF x x xC x x xG x x x xB x x x xH x x xE x x xMachinesParts 1 2 4 8 10 3 6 9 5 7 11 12A x x x x xD x x x x xF x x xC x x xG x x x xB x x x xH x x xE x x xMachinesParts 1 2 4 8 10 3 6 9 5 7 11 12A x x x x xD x x x x xF x x xC x x xG x x x xB x x x xH x x xE x x xConverting a Job Shop into CellularConverting a Job Shop into Cellular Manufacturing System Manufacturing SystemKINGs Algorithm is the Key.- You need Process Part matrix.A 1 in a cell indicatesthat the part is processed on that machine.Par t s >>> P1 P2 P3 P4 P5Mac hi nesM1 0 1 0 1 1M2 1 0 1 0 0M3 0 1 0 1 0M4 1 0 1 0 1Step 1:Weights on Columns Step 1:Weights on ColumnsWei ght s: 2^ 4 2^ 3 2^ 2 2^ 1 2^ 0Par t s >>> P1 P2 P3 P4 P5 Wei ght ed SumMac hi nesM1 0 1 0 1 1 11M2 1 0 1 0 0 20M3 0 1 0 1 0 10M4 1 0 1 0 1 21Step 1:Weights on Columns Step 1:Weights on ColumnsWei ght s: 2^ 4 2^ 3 2^ 2 2^ 1 2^ 0Par t s >>> P1 P2 P3 P4 P5 Wei ght ed SumMac hi nesM1 0 1 0 1 1 11M2 1 0 1 0 0 20M3 0 1 0 1 0 10M4 1 0 1 0 1 21Apply right to left in increasing power of 2.Calculate weighted sum for each rowStep 2:Rank Columns Step 2:Rank ColumnsWei ght s: 2^ 4 2^ 3 2^ 2 2^ 1 2^ 0Par t s >>> P1 P2 P3 P4 P5 Wei ght ed SumMac hi nesM3 0 1 0 1 0 10M1 0 1 0 1 1 11M2 1 0 1 0 0 20M4 1 0 1 0 1 21Sort rows in increasing row weights from top downStep 3:Weights on Rows Step 3:Weights on RowsPar t s >>> P1 P2 P3 P4 P5Mac hi nesWei ght sM3 0 1 0 1 0 2^ 0M1 0 1 0 1 1 2^ 1M2 1 0 1 0 0 2^ 2M4 1 0 1 0 1 2^ 3Wei ght edSum12 3 12 3 10Apply top down in increasing power of 2.Calculate weighted sum for each column.Step 4: Rank the rows Step 4: Rank the rowsPar t s >>> P1 P3 P5 P2 P4 Wei ght sMac hi nesM3 0 0 0 1 1 2^ 0M1 0 0 1 1 1 2^ 1M2 1 1 0 0 0 2^ 2M4 1 1 1 0 0 2^ 3Wei ght edSum12 3 12 3 10Sort columns in increasing column weights from right to leftStep 5:Stopping Criterion and Step 5:Stopping Criterion andCell Formation Cell Formation Stop when no more rows or columns are able switch. For this case, cells are:For this case, cells are:Cell 1:M2 and M4 to process P1 and P3Cell 2:M1 and M3 to process P2 and P4Miscellaneous facility to produce P5.Or, you can make it in Cell 1 and farm out to Cell 2.Alternately, design or process review can be undertaken to eliminate one of the operations of P5.Benefits of Cellular lay Out Benefits of Cellular lay OutHow Does a Work Cell Differ from an Assembly Line? Assembly lines and work cells have some characteristics in commonboth organize multiple functions together to serve the needs of a particular product or service type Although there is a gray area between the two types of work arrangements, cells may be distinguished as follows: Cells offer more flexibility in that they typically can produce a range of i d t ithif il service or products within a family Assembly lines commonly are dedicated to just one product Cell workers normally perform a broader range of tasks than the more narrow roles typical of assembly line work Cells often are described as a hybrid that combines the focus and flow of an assembly line with the flexibility of a job shop functional arrangementThank you!