Layout planning determines the optimal physical arrangement of resources to maximize productivity. The document discusses different types of layouts including process, product, group technology, and fixed-position layouts. Product layouts are designed to efficiently produce a specific product in high volumes, while process layouts group similar resources together and fixed-position layouts are used when the product is too large to move.

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3. What Is Layout Planning?
Layout planning is deciding the best physical arrangement of all
resources within a facility
• Facility resource arrangement can significantly affect
productivity
• Two broad categories of operations:
– Intermittent processing systems – low volume of many different
products
– Continuous processing systems – high volume of a few standardized
products

4. Layout
planning
Product
layout
Product
layout
Group
technolog
y
Fixed
position

5. Types of Layouts
• Four basic layout types consisting of:
– Process layouts - Group similar resources together
– Product layouts - Designed to produce a specific
product efficiently
– Group technology – designed for mid-volume mid
variety product
– Fixed-Position layouts - Product is two large to move;
e.g. a building

6. Product Layouts
• Product layout unique characteristics are:
– Resources are specialized
– Facilities are capital intensive
– Processing rates are faster
– Material handling costs are lower
– Space requirements for inventory storage are
lower
– Flexibility is low relative to the market

7. Advantages of product layouts include:
• Output - Product layouts can generate a large
volume of products in a short time.
• Cost - Unit cost is low as a result of the high
volume. Labor specialization results in reduced
training time and cost. A wider span of
supervision also reduces labor costs. Accounting,
purchasing, and inventory control are routine.
Because routing is fixed, less attention is
required.
• Utilization - There is a high degree of labor and
equipment utilization.

8. Disadvantages of product layouts
include
• Motivation - The system's inherent division of labor can
result in dull, repetitive jobs that can prove to be quite
stressful. Also, assembly-line layouts make it very hard
to administer individual incentive plans.
• Flexibility - Product layouts are inflexible and cannot
easily respond to required system changes—especially
changes in product or process design.
• System protection - The system is at risk from
equipment breakdown, absenteeism, and downtime
due to preventive maintenance.

9. © Wiley 2010 9
Designing Product Layouts
Step 1: Identify tasks & immediate predecessors
Step 2: Determine output rate
Step 3: Determine cycle time
Step 4: Compute the Theoretical Minimum number of
Stations
Step 5: Assign tasks to workstations (balance the
line)
Step 6: Compute efficiency, idle time & balance delay

10. © Wiley 2010 10
Step 1: Identify Tasks & Immediate
Predecessors
Example 10.4 Vicki's Pizzeria and the Precedence Diagram
Immediate Task Time
Work Element Task Description Predecessor (seconds
A Roll dough None 50
B Place on cardboard backing A 5
C Sprinkle cheese B 25
D Spread Sauce C 15
E Add pepperoni D 12
F Add sausage D 10
G Add mushrooms D 15
H Shrinkwrap pizza E,F,G 18
I Pack in box H 15
Total task time 165

11. Layout Calculations
• Step 2: Determine output rate
– Vicki needs to produce 60 pizzas per hour
• Step 3: Determine cycle time
– The amount of time each workstation is allowed
to complete its tasks
 
 
sec./unit60
units/hr60
sec/min60xmin/hr60
units/hroutputdesired
sec./daytimeavailable
)(sec./unittimeCycle 

12. Limited by the bottleneck task (the longest
task in a process):
hourperpizzasorunits/hr,72
sec./unit50
sec./hr.3600
timetaskbottleneck
timeavailable
outputMaximum 

13. • Step 4: Compute the theoretical minimum number
of stations
– TM = number of stations needed to achieve 100%
efficiency (every second is used)
– Always round up (no partial workstations)
– Serves as a lower bound for our analysis
 
stations3or2.75,
nsec/statio60
seconds165
timecycle
timestask
TM 


14. © Wiley 2010 14
• Step 5: Assign tasks to workstations
– Start at the first station & choose the longest eligible task
following precedence relationships
– Continue adding the longest eligible task that fits without
going over the desired cycle time
– When no additional tasks can be added within the desired
cycle time, begin assigning tasks to the next workstation until
finished
Workstation Eligible task Task Selected Task time Idle time
A A 50 10
B B 5 5
C C 25 35
D D 15 20
E, F, G G 15 5
E, F E 12 48
F F 10 38
H H 18 20
I I 15 5
1
2
3

15. • Step 6: Compute efficiency and balance delay
– Efficiency (%) is the ratio of total productive time divided
by total time
– Balance delay (%) is the amount by which the line falls
short of 100%
  91.7%100
sec.60xstations3
sec.165
NC
t
(%)Efficiency 

8.3%91.7%100%delayBalance 

16. Fixed-Position Layout
• Used when product is large
• Product is difficult or impossible to move, i.e.
very large or fixed
• All resources must be brought to the site
• Scheduling of crews and resources is a
challenge

17. Disadvantages include:
• Space - For many fixed-position layouts, the
work area may be crowded so that little
storage space is available. This also can cause
material handling problems.
• Administration - Oftentimes, the
administrative burden is higher for fixed-
position layouts. The span of control can be
narrow, and coordination difficult.

18. Process vs. Product Layouts