Facilities Layout

1. Factors Determining Facilities Layout

After the site location decision has been made, the next focus in production planning is the facility’s layout. The goal is to determine the safest, most comfortable, and most efficient design for the production process. A manufacturer might opt for a U-shaped production line, for example, rather than a long, straight one, to allow products and workers to move more quickly from one area to another.

Service organizations must also consider layout, but they are more concerned with how it affects customer behavior. It may be more convenient for a hospital to place its freight elevators in the center of the building, for example, but doing so may block the flow of patients, visitors, and medical personnel between floors and departments.

In any industry, the objectives of facilities layout include:

• Create an efficient workflow.
• Create a safe and comfortable work environment.
• Minimize the need for movement of workers and materials while maximizing ease of movement.
• Promote order in the production process.
• Facilitate maintenance of and upgrades to equipment.
• Facilitate process flexibility for changing the product line.
• Minimize cost of installation and operations.

• Proper training of workers and supervisors
• Awareness of health and safety hazards and adherence to rules, laws, and regulations
• Empowering workers to share concerns and suggestions to improve process

think about it

What are the benefits of asking employees what type of layout can assist in efficient facilities workflow?

Facilities layout is highly connected to ergonomics, the study of optimizing workstations for comfort and safety of workers. This applied science is not just concerned with major accidents but the long-term injuries that result from repetitive movements. Because ergonomics is highly personalized to each individual’s strength, stature, and other attributes, workstations must be adaptable to different individuals.

term to know

Ergonomics

The study of optimizing workstations for comfort and safety of workers.

2. Layout Options

2a. Process Layout

There are four main types of facility layouts. A manufacturer may use a combination of these rather than use one exclusively.

The process layout arranges workflow around the production process. All workers performing similar tasks are grouped together. Products pass from one workstation to another (but not necessarily to every workstation). For example, all grinding would be done in one area, all assembling in another, and all inspection in yet another. The process layout is best for firms that produce small numbers of a wide variety of products, typically using general-purpose machines that can be changed rapidly to new operations for different product designs. For example, a manufacturer of custom machinery would use a process layout.

term to know

Process Layout

The arrangement of production layout around the production process.

2b. Product Layout

Products that require a continuous or repetitive production process use the product layout (or assembly-line layout). When large quantities of a product must be processed on an ongoing basis, the workstations or departments are arranged in a line with products moving along the line. Automobile and appliance manufacturers, as well as food-processing plants, usually use a product layout. Service companies may also use a product layout for routine processing operations.

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Product Layout (or Assembly-Line Layout)

When workstations or departments are arranged in a line with products moving along the line.

2c. Fixed-Position Layout

Some products cannot be put on an assembly line or moved about in a plant. A fixed-position layout lets the product stay in one place while workers and machinery move to it as needed. Products that are impossible to move—ships, airplanes, and construction projects—are typically produced using a fixed-position layout. Limited space at the project site often means that parts of the product must be assembled at other sites, transported to the fixed site, and then assembled. The fixed-position layout is also common for on-site services such as housecleaning services, pest control, and landscaping.

term to know

Fixed-Position Layout

A layout where the product stays in one place while workers and machinery move to it as needed.

2d. Cellular Layout

Cellular layouts combine some aspects of both product and fixed-position layouts. Work cells are small, self-contained production units that include several machines and workers arranged in a compact, sequential order. Each work cell performs all or most of the tasks necessary to complete a manufacturing order. There are usually five to 10 workers in a cell, and they are trained to be able to do any of the steps in the production process. The goal is to create a team environment wherein team members are involved in production from beginning to end. For example, a circuit board manufacturer might have five cells, such as cutting and drilling, assembly, soldering, testing, and packaging.

3. Layout Design Strategies

Because setting up a facility layout is complex and expensive, there are processes for designing and testing layout options before they are fully implemented. The first step in determining layout is to define the objectives of the layout. For example, some of the goals might include minimizing production time, maximizing space, or improving safety.

Once goals are set, information is gathered on processes, equipment needs, the flow of materials, space requirements, and employee needs, including health and safety.

The organization will then design the layout. These are often done with models, scaled down versions of the plans based on approved drawings; these are usually three-dimensional models.

Companies might also use data analysis and simulations which are digital processes for determining the optimal use of space for workflow. Data analysis can use existing data from the company or use published data from similar companies. Simulations can test a layout for productivity with and without disruption to find the layout that optimizes production and is most able to compensate for disruptions.

Line balancing is a timing data analysis done specifically for assembly lines where the time and space for each task can be determined through statistical analysis. The purpose is to synchronize workflow so that each phase completes a task at the same time and can move the product down the line.

EXAMPLE

Many companies use line balancing because uniform workload distribution helps to prevent bottlenecks and minimize employee idle time. Examples of companies that use line balancing include Toyota, Intel, Nike, and General Electric.

Once the designs are tested, the company will assess the efficiency of each of the goals they’ve set forth in the first step. For example, they’d look at space utilization, the cost of handling the materials, safety factors, and many others depending on the goals they’ve set.

Once the layout plan has been chosen, it is important for companies to involve stakeholders in the decision making. For example, involvement of the unions, management, and employees can help ensure acceptance of the layout and also help determine any challenges associated with the design from a variety of perspectives.

Once the layout is implemented, it is important to monitor and ensure the facilities layout goals are met. In order to ensure continuous improvement, making adjustments and changes to the layout is necessary to optimize the facilities.

While we have mostly been addressing facilities layout for manufacturing, even office work environments attempt to optimize their layouts. Types of office layouts include:

• Open plan: This type of layout minimizes barriers, such as partitions, and often there are large communal tables or desks where employees work together. The challenge with this layout is lack of privacy, more noise, and distractions; however, this type of layout can enhance teamwork and spontaneous interactions. Google is an example of a company that uses this type of layout.
• Private offices: This layout is focused on enclosed spaces, where there are doors that can be closed. The advantage of this layout is confidentiality and a quiet and private place to work; however, this can create barriers with “closed doors.”
• Cubicles: These are defined spaces, divided by partitions which create a semi-private space. This provides a semi-private environment; however, it can feel confining and may not look as aesthetically appealing as the other options.
• Activity-based working: This approach combines open plans and provides collaborative areas, quiet zones, breakout spaces, and even recreation areas. The advantage is the ability of the employees to choose where they want to sit based on the day’s activities, and it optimizes space. The downside is that there is no specific “space” for an employee to call their own. This is a trend in modern workplaces to maximize productivity and flexibility. Microsoft is an example of a company that uses this layout.
• Hybrid layouts: As the name suggests, this layout might combine cubicles with private offices or have both, and some elements of an activity-based working environment too.

term to know

Line Balancing

A timing data analysis done specifically for assembly lines where the time and space for each task can be determined through statistical analysis.

REFERENCES

MSG (n.d.). Facility Layout - Objectives, Design and Factors Affecting the Layout. Management Study Guide. managementstudyguide.com/facility-layout.htm

Gaither, N. & Frazier, G. (2002) Operations Management. South-Western Thomas Learning.