Chapter 9 layout strategies

© 2008 Prentice Hall, Inc. 9 – 1
Operations
Management
Chapter 9 –Chapter 9 –
Layout StrategiesLayout Strategies
PowerPoint presentation to accompanyPowerPoint presentation to accompany
Heizer/RenderHeizer/Render
Principles of Operations Management, 7ePrinciples of Operations Management, 7e
Operations Management, 9eOperations Management, 9e

OutlineOutline
 Global Company Profile:Global Company Profile:
McDonald’sMcDonald’s
 The Strategic Importance ofThe Strategic Importance of
Layout DecisionsLayout Decisions
 Types of LayoutTypes of Layout
 Office LayoutOffice Layout

Outline – ContinuedOutline – Continued
 Retail LayoutRetail Layout
 ServicescapesServicescapes
 Warehousing and Storage LayoutsWarehousing and Storage Layouts
 Cross-DockingCross-Docking
 Random DockingRandom Docking
 CustomizingCustomizing
 Fixed-Position LayoutFixed-Position Layout

 Process-Oriented LayoutProcess-Oriented Layout
 Computer Software for Process-Computer Software for Process-
Oriented LayoutsOriented Layouts
 Work CellsWork Cells
 Requirements of Work CellsRequirements of Work Cells
 Staffing and Balancing Work CellsStaffing and Balancing Work Cells
 The Focused Work Center and theThe Focused Work Center and the
Focused FactoryFocused Factory

 Repetitive and Product-OrientedRepetitive and Product-Oriented
LayoutLayout
 Assembly-Line BalancingAssembly-Line Balancing

Learning ObjectivesLearning Objectives
When you complete this chapter youWhen you complete this chapter you
should be able to:should be able to:
1.1. Discuss important issues in office layoutDiscuss important issues in office layout
2.2. Define the objectives of retail layoutDefine the objectives of retail layout
3.3. Discuss modern warehouse managementDiscuss modern warehouse management
and terms such as ASRS, cross-docking,and terms such as ASRS, cross-docking,
and random stockingand random stocking
4.4. Identify when fixed-position layouts areIdentify when fixed-position layouts are
appropriateappropriate

Learning ObjectivesLearning Objectives
When you complete this chapter, youWhen you complete this chapter, you
should be able to:should be able to:
5.5. Explain how to achieve a good process-Explain how to achieve a good process-
oriented facility layoutoriented facility layout
6.6. Define work cell and the requirements ofDefine work cell and the requirements of
a work cella work cell
7.7. Define product-oriented layoutDefine product-oriented layout
8.8. Explain how to balance production flowExplain how to balance production flow
in a repetitive or product-oriented facilityin a repetitive or product-oriented facility

Innovations at McDonald’sInnovations at McDonald’s
 Indoor seating (1950s)Indoor seating (1950s)
 Drive-through window (1970s)Drive-through window (1970s)
 Adding breakfast to the menuAdding breakfast to the menu
(1980s)(1980s)
 Adding play areas (late 1980s)Adding play areas (late 1980s)
 Redesign of the kitchens (1990s)Redesign of the kitchens (1990s)
 Self-service kiosk (2004)Self-service kiosk (2004)
 Now three separate dining sectionsNow three separate dining sections

Innovations at McDonald’sInnovations at McDonald’s
 Indoor seating (1950s)Indoor seating (1950s)
 Drive-through window (1970s)Drive-through window (1970s)
 Adding breakfast to the menuAdding breakfast to the menu
(1980s)(1980s)
 Adding play areas (late 1980s)Adding play areas (late 1980s)
 Redesign of the kitchens (1990s)Redesign of the kitchens (1990s)
 Self-service kiosk (2004)Self-service kiosk (2004)
 Now three separate dining sectionsNow three separate dining sections
Six out of theSix out of the
seven areseven are
layoutlayout
decisions!decisions!

McDonald’s New LayoutMcDonald’s New Layout
 Seventh major innovationSeventh major innovation
 Redesigning all 30,000 outlets aroundRedesigning all 30,000 outlets around
the worldthe world
 Three separate dining areasThree separate dining areas
 Linger zone with comfortable chairs andLinger zone with comfortable chairs and
Wi-Fi connectionsWi-Fi connections
 Grab and go zone with tall countersGrab and go zone with tall counters
 Flexible zone for kids and familiesFlexible zone for kids and families
 Facility layout is a source ofFacility layout is a source of
competitive advantagecompetitive advantage

Strategic Importance ofStrategic Importance of
Layout DecisionsLayout Decisions
The objective of layout strategyThe objective of layout strategy
is to develop a cost-effectiveis to develop a cost-effective
layout that will meet a firm’slayout that will meet a firm’s
competitive needscompetitive needs

Layout DesignLayout Design
ConsiderationsConsiderations
 Higher utilization of space, equipment,Higher utilization of space, equipment,
and peopleand people
 Improved flow of information, materials,Improved flow of information, materials,
or peopleor people
 Improved employee morale and saferImproved employee morale and safer
working conditionsworking conditions
 Improved customer/client interactionImproved customer/client interaction
 FlexibilityFlexibility

Types of LayoutTypes of Layout
1.1. Office layoutOffice layout
2.2. Retail layoutRetail layout
3.3. Warehouse layoutWarehouse layout
4.4. Fixed-position layoutFixed-position layout
5.5. Process-oriented layoutProcess-oriented layout
6.6. Work-cell layoutWork-cell layout
7.7. Product-oriented layoutProduct-oriented layout

1.1. Office layout: Positions workers,Office layout: Positions workers,
their equipment, and spaces/officestheir equipment, and spaces/offices
to provide for movement ofto provide for movement of
informationinformation
2.2. Retail layout: Allocates shelf spaceRetail layout: Allocates shelf space
and responds to customer behaviorand responds to customer behavior
3.3. Warehouse layout: Addresses trade-Warehouse layout: Addresses trade-
offs between space and materialoffs between space and material
handlinghandling

4.4. Fixed-position layout: AddressesFixed-position layout: Addresses
the layout requirements of large,the layout requirements of large,
bulky projects such as ships andbulky projects such as ships and
buildingsbuildings
5.5. Process-oriented layout: Deals withProcess-oriented layout: Deals with
low-volume, high-variety productionlow-volume, high-variety production
(also called job shop or intermittent(also called job shop or intermittent
production)production)

6.6. Work cell layout: ArrangesWork cell layout: Arranges
machinery and equipment to focusmachinery and equipment to focus
on production of a single product oron production of a single product or
group of related productsgroup of related products
7.7. Product-oriented layout: Seeks theProduct-oriented layout: Seeks the
best personnel and machinebest personnel and machine
utilizations in repetitive orutilizations in repetitive or
continuous productioncontinuous production

Good Layouts ConsiderGood Layouts Consider
1.1. Material handling equipmentMaterial handling equipment
2.2. Capacity and space requirementsCapacity and space requirements
3.3. Environment and aestheticsEnvironment and aesthetics
4.4. Flows of informationFlows of information
5.5. Cost of moving between variousCost of moving between various
work areaswork areas

Table 9.1Table 9.1
OfficeOffice RetailRetail
WarehouseWarehouse
(storage)(storage)
ExamplesExamples
Allstate InsuranceAllstate Insurance
Microsoft Corp.Microsoft Corp.
Kroger’sKroger’s
SupermarketSupermarket
Walgreen’sWalgreen’s
Bloomingdale’sBloomingdale’s
Federal-Mogul’sFederal-Mogul’s
warehousewarehouse
The Gap’sThe Gap’s
distribution centerdistribution center
Problems/IssuesProblems/Issues
Locate workersLocate workers
requiring frequentrequiring frequent
contact close tocontact close to
one anotherone another
Expose customerExpose customer
to high-marginto high-margin
itemsitems
Balance low-costBalance low-cost
storage with low-storage with low-
cost materialcost material
handlinghandling

Table 9.1Table 9.1
ProjectProject
(fixed position)(fixed position)
Job ShopJob Shop
(process oriented)(process oriented)
ExamplesExamples
Ingall Ship BuildingIngall Ship Building
Corp.Corp.
Trump PlazaTrump Plaza
Pittsburgh AirportPittsburgh Airport
Arnold Palmer HospitalArnold Palmer Hospital
Hard Rock CaféHard Rock Café
Olive GardenOlive Garden
Move material to theMove material to the
limited storage areaslimited storage areas
around the sitearound the site
Manage varied materialManage varied material
flow for each productflow for each product

Table 9.1Table 9.1
Work CellsWork Cells
(product families)(product families)
Repetitive/ ContinuousRepetitive/ Continuous
(product oriented)(product oriented)
ExamplesExamples
Hallmark CardsHallmark Cards
Wheeled CoachWheeled Coach
Standard AeroStandard Aero
Sony’s TV assemblySony’s TV assembly
lineline
Toyota ScionToyota Scion
Identify a productIdentify a product
family, build teams,family, build teams,
cross train teamcross train team
membersmembers
Equalize the task timeEqualize the task time
at each workstationat each workstation

Office LayoutOffice Layout
 Grouping of workers, their equipment,Grouping of workers, their equipment,
and spaces to provide comfort,and spaces to provide comfort,
safety, and movement of informationsafety, and movement of information
 Movement ofMovement of
information is maininformation is main
distinctiondistinction
 Typically in state ofTypically in state of
flux due to frequentflux due to frequent
technologicaltechnological
changeschanges

Relationship ChartRelationship Chart
Figure 9.1Figure 9.1

Supermarket Retail LayoutSupermarket Retail Layout
 Objective is to maximizeObjective is to maximize
profitability per square foot ofprofitability per square foot of
floor spacefloor space
 Sales and profitability varySales and profitability vary
directly with customer exposuredirectly with customer exposure

Five Helpful Ideas forFive Helpful Ideas for
Supermarket LayoutSupermarket Layout
1.1. Locate high-draw items around theLocate high-draw items around the
periphery of the storeperiphery of the store
2.2. Use prominent locations for high-impulseUse prominent locations for high-impulse
and high-margin itemsand high-margin items
3.3. Distribute power items to both sides ofDistribute power items to both sides of
an aisle and disperse them to increasean aisle and disperse them to increase
viewing of other itemsviewing of other items
4.4. Use end-aisle locationsUse end-aisle locations
5.5. Convey mission of store through carefulConvey mission of store through careful
positioning of lead-off departmentpositioning of lead-off department

Store LayoutStore Layout

Retail SlottingRetail Slotting
 Manufacturers pay fees to retailersManufacturers pay fees to retailers
to get the retailers to display (slot)to get the retailers to display (slot)
their producttheir product
 Contributing factorsContributing factors
 Limited shelf spaceLimited shelf space
 An increasing number of newAn increasing number of new
productsproducts
 Better information about salesBetter information about sales
through POS data collectionthrough POS data collection
 Closer control of inventoryCloser control of inventory

Retail Store Shelf SpaceRetail Store Shelf Space
PlanogramPlanogram
 ComputerizedComputerized
tool for shelf-tool for shelf-
spacespace
managementmanagement
 Generated fromGenerated from
store’s scannerstore’s scanner
data on salesdata on sales
 Often suppliedOften supplied
by manufacturerby manufacturer
5 facings5 facings
Shampoo
Shampoo
Shampoo
Shampoo
Shampoo
Conditioner
Conditioner
Shampoo
Shampoo
Shampoo
Shampoo
Conditioner
2 ft.2 ft.

ServicescapesServicescapes
 Ambient conditions - backgroundAmbient conditions - background
characteristics such as lighting, sound,characteristics such as lighting, sound,
smell, and temperaturesmell, and temperature
 Spatial layout and functionality - whichSpatial layout and functionality - which
involve customerinvolve customer
circulation path planning,circulation path planning,
aisle characteristics, andaisle characteristics, and
product groupingproduct grouping
 Signs, symbols, andSigns, symbols, and
artifacts - characteristicsartifacts - characteristics
of building design thatof building design that
carry social significancecarry social significance

Warehousing and StorageWarehousing and Storage
LayoutsLayouts
 Objective is to optimize trade-offsObjective is to optimize trade-offs
between handling costs and costsbetween handling costs and costs
associated with warehouse spaceassociated with warehouse space
 Maximize the total “cube” of theMaximize the total “cube” of the
warehouse – utilize its full volumewarehouse – utilize its full volume
while maintaining low materialwhile maintaining low material
handling costshandling costs

LayoutsLayouts
 All costs associated with the transactionAll costs associated with the transaction
 Incoming transportIncoming transport
 StorageStorage
 Finding and moving materialFinding and moving material
 Outgoing transportOutgoing transport
 Equipment, people, material, supervision,Equipment, people, material, supervision,
insurance, depreciationinsurance, depreciation
 Minimize damage and spoilageMinimize damage and spoilage
Material Handling CostsMaterial Handling Costs

LayoutsLayouts
 Warehouse density tends to varyWarehouse density tends to vary
inversely with the number of differentinversely with the number of different
items storeditems stored
 Automated Storage andAutomated Storage and
Retrieval Systems (ASRSs)Retrieval Systems (ASRSs)
can significantly improvecan significantly improve
warehouse productivity bywarehouse productivity by
an estimated 500%an estimated 500%
 Dock location is a keyDock location is a key
design elementdesign element

Cross-DockingCross-Docking
 Materials are moved directly fromMaterials are moved directly from
receiving to shipping and are notreceiving to shipping and are not
placed in storageplaced in storage
in the warehousein the warehouse
 Requires tightRequires tight
scheduling andscheduling and
accurate shipments,accurate shipments,
bar code or RFIDbar code or RFID
identification used foridentification used for
advanced shipmentadvanced shipment
notification as materialsnotification as materials
are unloadedare unloaded

Random StockingRandom Stocking
 Typically requires automatic identificationTypically requires automatic identification
systems (AISs) and effective informationsystems (AISs) and effective information
systemssystems
 Random assignment of stocking locationsRandom assignment of stocking locations
allows more efficient use of spaceallows more efficient use of space
 Key tasksKey tasks
1.1. Maintain list of open locationsMaintain list of open locations
2.2. Maintain accurate recordsMaintain accurate records
3.3. Sequence items to minimize travel, pick timeSequence items to minimize travel, pick time
4.4. Combine picking ordersCombine picking orders
5.5. Assign classes of items to particular areasAssign classes of items to particular areas

CustomizingCustomizing
 Value-added activities performed atValue-added activities performed at
the warehousethe warehouse
 Enable low cost and rapid responseEnable low cost and rapid response
strategiesstrategies
 Assembly of componentsAssembly of components
 Loading softwareLoading software
 RepairsRepairs
 Customized labeling and packagingCustomized labeling and packaging

Shipping and receiving docks
Office
Customization
Conveyor
Storage racks
Staging
Warehouse LayoutWarehouse Layout
Traditional LayoutTraditional Layout

Warehouse LayoutWarehouse Layout
Cross-Docking LayoutCross-Docking Layout
Office

Fixed-Position LayoutFixed-Position Layout
 Product remains in one placeProduct remains in one place
 Workers and equipment come to siteWorkers and equipment come to site
 Complicating factorsComplicating factors
Limited space at siteLimited space at site
Different materialsDifferent materials
required at differentrequired at different
stages of the projectstages of the project
Volume of materialsVolume of materials
needed is dynamicneeded is dynamic

Alternative StrategyAlternative Strategy
 As much of the project as possibleAs much of the project as possible
is completed off-site in a product-is completed off-site in a product-
oriented facilityoriented facility
 This canThis can
significantlysignificantly
improve efficiencyimprove efficiency
but is onlybut is only
possible whenpossible when
multiple similarmultiple similar
units need to be createdunits need to be created

Process-Oriented LayoutProcess-Oriented Layout
 Like machines and equipment areLike machines and equipment are
grouped togethergrouped together
 Flexible and capable of handling aFlexible and capable of handling a
wide variety of products orwide variety of products or
servicesservices
 Scheduling can be difficult andScheduling can be difficult and
setup, material handling, andsetup, material handling, and
labor costs can be highlabor costs can be high

Surgery
Radiology
ER
triage
room
ER Beds Pharmacy
Emergency room admissions
Billing/exit
Laboratories
Patient A - broken leg
Patient B - erratic heart
pacemaker

Layout at Arnold Palmer HospitalLayout at Arnold Palmer Hospital
Central breakCentral break
and medicaland medical
supply roomssupply rooms
Local linenLocal linen
supplysupply
LocalLocal
nursing podnursing pod
Pie-shapedPie-shaped
roomsrooms
Central nursesCentral nurses
stationstation

 Arrange work centers so as toArrange work centers so as to
minimize the costs of materialminimize the costs of material
handlinghandling
 Basic cost elements areBasic cost elements are
 Number of loads (or people) movingNumber of loads (or people) moving
between centersbetween centers
 Distance loads (or people) moveDistance loads (or people) move
between centersbetween centers

Minimize cost =Minimize cost = ∑ ∑∑ ∑ XXijij CCijij
nn
ii = 1= 1
nn
jj = 1= 1
wherewhere nn == total number of worktotal number of work
centers or departmentscenters or departments
i, ji, j == individualindividual
departmentsdepartments
XXijij == number of loadsnumber of loads
moved from department i tomoved from department i to
department jdepartment j
CCijij == cost to move a loadcost to move a load
between department i andbetween department i and

Process Layout ExampleProcess Layout Example
1.1. Construct a “from-to matrix”Construct a “from-to matrix”
2.2. Determine the space requirementsDetermine the space requirements
3.3. Develop an initial schematic diagramDevelop an initial schematic diagram
4.4. Determine the cost of this layoutDetermine the cost of this layout
5.5. Try to improve the layoutTry to improve the layout
6.6. Prepare a detailed planPrepare a detailed plan
Arrange six departments in a factory toArrange six departments in a factory to
minimize the material handling costs.minimize the material handling costs.
Each department is 20 x 20 feet and theEach department is 20 x 20 feet and the
building is 60 feet long and 40 feet wide.building is 60 feet long and 40 feet wide.

DepartmentDepartment AssemblyAssembly PaintingPainting MachineMachine ReceivingReceiving ShippingShipping TestingTesting
(1)(1) (2)(2) Shop (3)Shop (3) (4)(4) (5)(5) (6)(6)
Assembly (1)Assembly (1)
Painting (2)Painting (2)
Machine Shop (3)Machine Shop (3)
Receiving (4)Receiving (4)
Shipping (5)Shipping (5)
Testing (6)Testing (6)
Number of loads per weekNumber of loads per week
50 100 0 0 20
30 50 10 0
20 0 100
50 0
0

Area 1Area 1 Area 2Area 2 Area 3Area 3
60’60’
40’40’
Receiving Shipping Testing
Department Department Department
(4) (5) (6)
Assembly Painting Machine Shop
(1) (2) (3)

100100
5050
2020
5050
5050
2020
1010
100100
3030
Interdepartmental Flow GraphInterdepartmental Flow Graph
1 2 3
4 5 6

CostCost == $50$50 ++ $200$200 ++ $40$40
(1 and 2)(1 and 2) (1 and 3)(1 and 3) (1 and 6)(1 and 6)
++ $30$30 ++ $50$50 ++ $10$10
++ $40$40 ++ $100$100 ++ $50$50
= $570= $570
Cost =Cost = ∑ ∑∑ ∑ XXijij CCijij
nn
ii = 1= 1
nn
jj = 1= 1

3030
5050
1010
5050
5050
2020
5050 100100
100100
Revised Interdepartmental Flow GraphRevised Interdepartmental Flow Graph
2 1 3
4 5 6

CostCost == $50$50 ++ $100$100 ++ $20$20
++ $60$60 ++ $50$50 ++ $10$10
++ $40$40 ++ $100$100 ++ $50$50
= $480= $480
Cost =Cost = ∑ ∑∑ ∑ XXijij CCijij
nn
ii = 1= 1
nn
jj = 1= 1

60’60’
40’40’
Receiving Shipping Testing
(4) (5) (6)
Painting Assembly Machine Shop
(2) (1) (3)

Computer SoftwareComputer Software
 Graphical approach only works forGraphical approach only works for
small problemssmall problems
 Computer programs are available toComputer programs are available to
solve bigger problemssolve bigger problems
 CRAFTCRAFT
 ALDEPALDEP
 CORELAPCORELAP
 Factory FlowFactory Flow

CRAFT ExampleCRAFT Example
11 22 33 44 55 66
11 A A A A B B
22 A A A A B B
33 D D D D D D
44 C C D D D D
55 F F F F F D
66 E E E E E D
PATTERNPATTERN
TOTAL COST 20,100TOTAL COST 20,100
EST. COST REDUCTION .00EST. COST REDUCTION .00
ITERATION 0ITERATION 0
(a)(a)
11 22 33 44 55 66
11 D D D D B B
22 D D D D B B
33 D D D E E E
44 C C D E E F
55 A A A A A F
66 A A A F F F
PATTERNPATTERN
TOTAL COST 14,390TOTAL COST 14,390
EST. COST REDUCTION 70.EST. COST REDUCTION 70.
ITERATION 3ITERATION 3
(b)(b) Figure 9.9Figure 9.9

Computer SoftwareComputer Software
 Three dimensional visualizationThree dimensional visualization
software allows managers to viewsoftware allows managers to view
possible layouts and assess process,possible layouts and assess process,
materialmaterial
handling,handling,
efficiency,efficiency,
and safetyand safety
issuesissues

 Reorganizes people and machinesReorganizes people and machines
into groups to focus on singleinto groups to focus on single
products or product groupsproducts or product groups
 Group technology identifiesGroup technology identifies
products that have similarproducts that have similar
characteristics for particular cellscharacteristics for particular cells
 Volume must justify cellsVolume must justify cells
 Cells can be reconfigured asCells can be reconfigured as
designs or volume changesdesigns or volume changes

Advantages of Work CellsAdvantages of Work Cells
1.1. Reduced work-in-process inventoryReduced work-in-process inventory
2.2. Less floor space requiredLess floor space required
3.3. Reduced raw material and finishedReduced raw material and finished
goods inventorygoods inventory
4.4. Reduced direct laborReduced direct labor
5.5. Heightened sense of employeeHeightened sense of employee
participationparticipation
6.6. Increased use of equipment andIncreased use of equipment and
machinerymachinery
7.7. Reduced investment in machineryReduced investment in machinery
and equipmentand equipment

Improving Layouts UsingImproving Layouts Using
Current layout - workers inCurrent layout - workers in
small closed areas.small closed areas.
Cannot increase outputCannot increase output
without a third worker andwithout a third worker and
third set of equipment.third set of equipment. Improved layout - cross-trainedImproved layout - cross-trained
workers can assist each other.workers can assist each other.
May be able to add a third workerMay be able to add a third worker
as additional output is needed.as additional output is needed.
Figure 9.10 (a)Figure 9.10 (a)

Improving Layouts UsingImproving Layouts Using
Current layout - straightCurrent layout - straight
lines make it hard to balancelines make it hard to balance
tasks because work may nottasks because work may not
be divided evenlybe divided evenly
Improved layout - in UImproved layout - in U
shape, workers have bettershape, workers have better
access. Four cross-trainedaccess. Four cross-trained
workers were reduced.workers were reduced.
Figure 9.10 (b)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 CellsRequirements of Work Cells
1.1. Identification of families ofIdentification of families of
productsproducts
2.2. A high level of training, flexibilityA high level of training, flexibility
and empowerment of employeesand empowerment of employees
3.3. Being self-contained, with its ownBeing self-contained, with its own
equipment and resourcesequipment and resources
4.4. Test (poka-yoke) at each station inTest (poka-yoke) at each station in
the cellthe cell

Staffing and BalancingStaffing and Balancing
Determine the takt timeDetermine the takt time
Takt time =Takt time =
Total work time availableTotal work time available
Units requiredUnits required
Determine the numberDetermine the number
of operators requiredof operators required
Workers required =Workers required =
Total operation time requiredTotal operation time required
Takt timeTakt time

Staffing Work Cells ExampleStaffing Work Cells Example
600600 Mirrors per day requiredMirrors per day required
Mirror production scheduled forMirror production scheduled for 88 hours per dayhours per day
From a work balance chartFrom a work balance chart
total operation timetotal operation time
= 140= 140 secondsseconds
StandardtimerequiredStandardtimerequired
OperationsOperations
AssembleAssemble PaintPaint TestTest LabelLabel Pack forPack for
shipmentshipment
6060
5050
4040
3030
2020
1010
00

Staffing Work Cells ExampleStaffing Work Cells Example
600600 Mirrors per day requiredMirrors per day required
Mirror production scheduled forMirror production scheduled for 88 hours per dayhours per day
From a work balance chartFrom a work balance chart
total operation timetotal operation time
= 140= 140 secondsseconds
Takt timeTakt time == (8(8 hrshrs x 60x 60 minsmins) / 600) / 600 unitsunits
= .8= .8 minsmins = 48= 48 secondsseconds
Workers requiredWorkers required ==
Total operation time requiredTotal operation time required
Takt timeTakt time
= 140 / 48 = 2.91= 140 / 48 = 2.91

Work Balance ChartsWork Balance Charts
 Used for evaluating operationUsed for evaluating operation
times in work cellstimes in work cells
 Can help identify bottleneckCan help identify bottleneck
operationsoperations
 Flexible, cross-trained employeesFlexible, cross-trained employees
can help address labor bottleneckscan help address labor bottlenecks
 Machine bottlenecks may requireMachine bottlenecks may require
other approachesother approaches

Focused Work Center andFocused Work Center and
 Focused Work CenterFocused Work Center
 Identify a large family of similar productsIdentify a large family of similar products
that have a large and stable demandthat have a large and stable demand
 Moves production from a general-purpose,Moves production from a general-purpose,
process-oriented facility to a large work cellprocess-oriented facility to a large work cell
 Focused FactoryFocused Factory
 A focused work cell in a separate facilityA focused work cell in a separate facility
 May be focused by product line, layout,May be focused by product line, layout,
quality, new product introduction, flexibility,quality, new product introduction, flexibility,
or other requirementsor other requirements

Focused Work Center andFocused Work Center and
Table 9.2Table 9.2
Work CellWork Cell Focused Work CenterFocused Work Center Focused FactoryFocused Factory
A work cell is aA work cell is a
temporary product-temporary product-
oriented arrangementoriented arrangement
of machines andof machines and
personnel in what ispersonnel in what is
ordinarily a process-ordinarily a process-
oriented facility.oriented facility.
A focused work center isA focused work center is
a permanent product-a permanent product-
oriented arrangementoriented arrangement
of machines andof machines and
personnel in what ispersonnel in what is
ordinarily a process-ordinarily a process-
oriented facility.oriented facility.
A focused factory is aA focused factory is a
permanent facility topermanent facility to
produce a product orproduce a product or
component in acomponent in a
product-orientedproduct-oriented
facility. Many focusedfacility. Many focused
factories currentlyfactories currently
being built werebeing built were
originally part of aoriginally part of a
process-orientedprocess-oriented
facility.facility.
Example: A job shopExample: A job shop
with machinery andwith machinery and
personnel rearrangedpersonnel rearranged
to produce 300 uniqueto produce 300 unique
control panels.control panels.
Example: Pipe bracketExample: Pipe bracket
manufacturing at amanufacturing at a
shipyard.shipyard.
Example: A plant toExample: A plant to
produce windowproduce window
mechanism formechanism for
automobiles.automobiles.

Repetitive and Product-Repetitive and Product-
Oriented LayoutOriented Layout
1.1. Volume is adequate for high equipmentVolume is adequate for high equipment
utilizationutilization
2.2. Product demand is stable enough to justify highProduct demand is stable enough to justify high
investment in specialized equipmentinvestment in specialized equipment
3.3. Product is standardized or approaching a phaseProduct is standardized or approaching a phase
of life cycle that justifies investmentof life cycle that justifies investment
4.4. Supplies of raw materials and components areSupplies of raw materials and components are
adequate and of uniform qualityadequate and of uniform quality
Organized around products or families ofOrganized around products or families of
similar high-volume, low-variety productssimilar high-volume, low-variety products

Product-Oriented LayoutsProduct-Oriented Layouts
 Fabrication lineFabrication line
 Builds components on a series of machinesBuilds components on a series of machines
 Machine-pacedMachine-paced
 Require mechanical or engineering changesRequire mechanical or engineering changes
to balanceto balance
 Assembly lineAssembly line
 Puts fabricated parts together at a series ofPuts fabricated parts together at a series of
workstationsworkstations
 Paced by work tasksPaced by work tasks
 Balanced by moving tasksBalanced by moving tasks
Both types of lines must be balanced so that theBoth types of lines must be balanced so that the
time to perform the work at each station is the sametime to perform the work at each station is the same

Product-Oriented LayoutsProduct-Oriented Layouts
1.1. Low variable cost per unitLow variable cost per unit
2.2. Low material handling costsLow material handling costs
3.3. Reduced work-in-process inventoriesReduced work-in-process inventories
4.4. Easier training and supervisionEasier training and supervision
5.5. Rapid throughputRapid throughput
AdvantagesAdvantages
1.1. High volume is requiredHigh volume is required
2.2. Work stoppage at any point ties up theWork stoppage at any point ties up the
whole operationwhole operation
3.3. Lack of flexibility in product or productionLack of flexibility in product or production
ratesrates
DisadvantagesDisadvantages

McDonald’s Assembly LineMcDonald’s Assembly Line

Disassembly LinesDisassembly Lines
• Disassembly is being considered inDisassembly is being considered in
new product designsnew product designs
• ““Green” issues and recyclingGreen” issues and recycling
standards are important considerationstandards are important consideration
• AutomotiveAutomotive
disassembly isdisassembly is
the 16the 16thth
largestlargest
industry inindustry in
the USthe US

Assembly-Line BalancingAssembly-Line Balancing
 Objective is to minimize the imbalanceObjective is to minimize the imbalance
between machines or personnel whilebetween machines or personnel while
meeting required outputmeeting required output
 Starts with the precedenceStarts with the precedence
relationshipsrelationships
1.1. Determine cycle timeDetermine cycle time
2.2. Calculate theoreticalCalculate theoretical
minimum number ofminimum number of
workstationsworkstations
3.3. Balance the line byBalance the line by
assigning specificassigning specific
tasks to workstationstasks to workstations

Wing Component ExampleWing Component Example
This means thatThis means that
tasks B and Etasks B and E
cannot be donecannot be done
until task A hasuntil task A has
been completedbeen completed
PerformancePerformance Task Must FollowTask Must Follow
TimeTime Task ListedTask Listed
TaskTask (minutes)(minutes) BelowBelow
AA 1010 ——
BB 1111 AA
CC 55 BB
DD 44 BB
EE 1212 AA
FF 33 C, DC, D
GG 77 FF
HH 1111 EE
II 33 G, HG, H
Total timeTotal time 6666

AA 1010 ——
BB 1111 AA
CC 55 BB
DD 44 BB
EE 1212 AA
FF 33 C, DC, D
GG 77 FF
HH 1111 EE
II 33 G, HG, H
Total timeTotal time 6666 I
GF
C
D
H
B
E
A
10
1112
5
4
3
711 3
Figure 9.13

I
GF
C
D
H
B
E
A
10
1112
5
4
3
711 3
Figure 9.13
AA 1010 ——
BB 1111 AA
CC 55 BB
DD 44 BB
EE 1212 AA
FF 33 C, DC, D
GG 77 FF
HH 1111 EE
II 33 G, HG, H
480 available
mins per day
40 units required
Cycle time =
Production time
available per day
Units required per day
= 480 / 40
= 12 minutes per unit
Minimum
number of
workstations
=
∑ Time for task i
Cycle time
n
i = 1
= 66 / 12
= 5.5 or 6 stations

I
GF
C
D
H
B
E
A
10
1112
5
4
3
711 3
Figure 9.13
AA 1010 ——
BB 1111 AA
CC 55 BB
DD 44 BB
EE 1212 AA
FF 33 C, DC, D
GG 77 FF
HH 1111 EE
II 33 G, HG, H
480 available
mins per day
40 units required
Cycle time = 12 mins
Minimum
workstations = 5.5 or 6
Line-Balancing Heuristics
1. Longest task time Choose the available task
with the longest task time
2. Most following tasks Choose the available task
with the largest number of
following tasks
3. Ranked positional
weight
Choose the available task for
which the sum of following
task times is the longest
4. Shortest task time Choose the available task
with the shortest task time
5. Least number of
following tasks
Choose the available task
with the least number of
following tasks
Table 9.4

480 available
mins per day
40 units required
Minimum
AA 1010 ——
BB 1111 AA
CC 55 BB
DD 44 BB
EE 1212 AA
FF 33 C, DC, D
GG 77 FF
HH 1111 EE
II 33 G, HG, H
I
GF
H
C
D
B
E
A
10 11
12
5
4
3 7
11
3
Station
1
Station
2
Station
4
Station
5
Station 3
Station 6
Figure 9.14

AA 1010 ——
BB 1111 AA
CC 55 BB
DD 44 BB
EE 1212 AA
FF 33 C, DC, D
GG 77 FF
HH 1111 EE
II 33 G, HG, H
480 available
mins per day
40 units required
Minimum
Efficiency =
∑ Task times
(Actual number of workstations) x (Largest cycle time)
= 66 minutes / (6 stations) x (12 minutes)
= 91.7%

Chapter 9 layout strategies

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