Facilities Planning

1
Facilities Planning - Unit 01Facilities
Planning Introduction
2
Definition of Facility Planning
Facility Planning determines how an activitys
tangible fixed assets best support achieving the
activitys 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.

3
Hierarchy of Facility Planning
Source for Figure Tompkins and White, Facilities
Planning, 2nd edition, Wiley

• 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).

4
Strategic Facilities Planning Issues

• 1. 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.

5
Facility DesignSequential Approach vs.
Integrated Approach
Material Handling System Design
Sequential Approach
6
Facility DesignSequential Approach vs.
Integrated Approach
Integrated Approach Impressive results in cost,
quality, productivity, sales, customer
satisfaction, delivery time, inventory levels,
space handling requirements, building size, etc.
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.
7
Productivity Model
Enterprise
Input
Output
Productivity Output / Input
8
Productivity Model
Enterprise
Input
Output
Productivity Output / Input
9
Hierarchy of Facility PlanningLayout Design
Facility Location
Structural Design
Facility Planning
Facility Design
Layout Design
Handling System Design
10
Layout Design - Introduction

• Facility 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

11
Layout Design IntroductionPlanning for
required Spaces and Areas

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

12
Layout Design Introduction Characteristics of
the Facility Layout Decision

• 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

13
Layout Design Introduction Characteristics of
the Facility Layout Decision

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

14
Facility Layout

• 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
• 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.

15
Facility Layout Strategic Importance

• 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.

16
Example of how a facility layout can save you
moneyMcDonalds - 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

17
Facility Innovations at McDonalds over the years
Example of how a facility layout can save you
moneyMcDonalds - New Kitchen Layout

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

Three out of the four are layout decisions, which
one isnt?
18
Layout Strategies - Manufacturing 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
19
Layout 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

20
Layout 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

21
Layout Strategies Examples 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
22
Areas of Concern in Layout Strategy
Communication
Service Areas
Material Attributes
Layout Strategy
Warehousing
Work Cell
Material Flow
Safety
23
Requirements 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

24
Principles of a Good LayoutManufacturing

• 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

25
Layout in Services - Office

• 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
• Hotel Executive Offices
• Accounting Firm Offices

An increasing number of the U.S. workforce work
in an office environments
26
Layout in Services Office

• Situation Service buildings differ from
  manufacturing facilities in that instead of
  product flow, the flow involves people and
  information.
• Buildings must
• be attractive
• have handicap access
• be secure
• be wired for communications (computer networks,
  etc)
• provide for efficient customer flow
• have adequate parking

27
Layout in Services Office
28
Principles of a Good LayoutFace to Face Services

• 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

29
Layout Levels
From http//www.strategosinc.com/facility_plan_le
vels.htm
30
Layout Levels - Continued
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.
From http//www.strategosinc.com/facility_plan_le
vels.htm
31
Layout Levels - Continued
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.
From http//www.strategosinc.com/facility_plan_le
vels.htm
32
New 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

33
Wrap-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

34
Few More Words onLayout 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)

35
Facilities Planning Whats Coming up?
Unit 01 - Facilities Planning Introduction Unit
02 - Transformation Systems and Process
Selection Unit 03 - Layout Flow Analysis Unit 04
- Layout Types Manufacturing Unit 05 - Layout
Types Service and Retail Unit 06 - Balancing
Production Lines Unit 07 - Layout Design
Systematic Layout Planning Unit 08 - General
Layout Planning and Evaluation Unit 09 - Material
Handling Principles Unit 10 - Material Handling
Equipment Unit 11 - Warehousing and Storage Unit
12 - Facilities Location Planning and Analysis