LAYOUT

In manufacturing, facility layout consists of configuring the plant site with lines, buildings, major
facilities, work areas, aisles, and other pertinent features such as department boundaries. While
facility layout for services may be similar to that for manufacturing, it also may be somewhat
different—as is the case with offices, retailers, and warehouses. Because of its relative
permanence, facility layout probably is one of the most crucial elements affecting efficiency. An
efficient layout can reduce unnecessary material handling, help to keep costs low, and maintain
product flow through the facility.

Firms in the upper left-hand corner of the product-process matrix have a process structure known
as a jumbled flow or a disconnected or intermittent line flow. Upper-left firms generally have a
process layout. Firms in the lower right-hand corner of the product-process matrix can have a
line or continuous flow. Firms in the lower-right part of the matrix generally have a product
layout. Other types of layouts include fixed-position, combination, cellular, and certain types of
service layouts.

PROCESS LAYOUT
Process layouts are found primarily in job shops, or firms that produce customized, low-volume
products that may require different processing requirements and sequences of operations. Process
layouts are facility configurations in which operations of a similar nature or function are grouped
together. As such, they occasionally are referred to as functional layouts. Their purpose is to
process goods or provide services that involve a variety of processing requirements. A
manufacturing example would be a machine shop. A machine shop generally has separate
departments where general-purpose machines are grouped together by function (e.g., milling,
grinding, drilling, hydraulic presses, and lathes). Therefore, facilities that are configured
according to individual functions or processes have a process layout. This type of layout gives
the firm the flexibility needed to handle a variety of routes and process requirements. Services
that utilize process layouts include hospitals, banks, auto repair, libraries, and universities.

Improving process layouts involves the minimization of transportation cost, distance, or time. To
accomplish this some firms use what is known as a Muther grid, where subjective information is
summarized on a grid displaying various combinations of department, work group, or machine
pairs. Each combination (pair), represented by an intersection on the grid, is assigned a letter
indicating the importance of the closeness of the two (A = absolutely necessary; E = very
important; I = important; O = ordinary importance; U = unimportant; X = undesirable).
Importance generally is based on the shared use of facilities, equipment, workers or records,
work flow, communication requirements, or safety requirements. The departments and other
elements are then assigned to clusters in order of importance.
Advantages of process layouts include:

 Flexibility. The firm has the ability to handle a variety of processing requirements.
 Cost. Sometimes, the general-purpose equipment utilized may be less costly to purchase
and less costly and easier to maintain than specialized equipment.
 Motivation. Employees in this type of layout will probably be able to perform a variety of
tasks on multiple machines, as opposed to the boredom of performing a repetitive task on
an assembly line. A process layout also allows the employer to use some type of
individual incentive system.
 System protection. Since there are multiple machines available, process layouts are not
particularly vulnerable to equipment failures.

Disadvantages of process layouts include:

 Utilization. Equipment utilization rates in process layout are frequently very low, because
machine usage is dependent upon a variety of output requirements.
 Cost. If batch processing is used, in-process inventory costs could be high. Lower volume
means higher per-unit costs. More specialized attention is necessary for both products
and customers. Setups are more frequent, hence higher setup costs. Material handling is
slower and more inefficient. The span of supervision is small due to job complexities
(routing, setups, etc.), so supervisory costs are higher. Additionally, in this type of layout
accounting, inventory control, and purchasing usually are highly involved.
 Confusion. Constantly changing schedules and routings make juggling process
requirements more difficult.

PRODUCT LAYOUT
Product layouts are found in flow shops (repetitive assembly and process or continuous flow
industries). Flow shops produce high-volume, highly standardized products that require highly
standardized, repetitive processes. In a product layout, resources are arranged sequentially, based
on the routing of the products. In theory, this sequential layout allows the entire process to be
laid out in a straight line, which at times may be totally dedicated to the production of only one
product or product version. The flow of the line can then be subdivided so that labor and
equipment are utilized smoothly throughout the operation.

Two types of lines are used in product layouts: paced and unpaced. Paced lines can use some
sort of conveyor that moves output along at a continuous rate so that workers can perform
operations on the product as it goes by. For longer operating times, the worker may have to walk
alongside the work as it moves until he or she is finished and can walk back to the workstation to
begin working on another part (this essentially is how automobile manufacturing works).

On an unpaced line, workers build up queues between workstations to allow a variable work
pace. However, this type of line does not work well with large, bulky products because too much
storage space may be required. Also, it is difficult to balance an extreme variety of output rates
without significant idle time. A technique known as assembly-line balancing can be used to
group the individual tasks performed into workstations so that there will be a reasonable balance
of work among the workstations.

Product layout efficiency is often enhanced through the use of line balancing. Line balancing is
the assignment of tasks to workstations in such a way that workstations have approximately
equal time requirements. This minimizes the amount of time that some workstations are idle, due
to waiting on parts from an upstream process or to avoid building up an inventory queue in front
of a downstream process.

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.

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.

FIXED-POSITION LAYOUT
A fixed-position layout is appropriate for a product that is too large or too heavy to move. For
example, battleships are not produced on an assembly line. For services, other reasons may
dictate the fixed position (e.g., a hospital operating room where doctors, nurses, and medical
equipment are brought to the patient). Other fixed-position layout examples include construction
(e.g., buildings, dams, and electric or nuclear power plants), shipbuilding, aircraft, aerospace,
farming, drilling for oil, home repair, and automated car washes. In order to make this work,
required resources must be portable so that they can be taken to the job for "on the spot"
performance.

Due to the nature of the product, the user has little choice in the use of a fixed-position layout.
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.

COMBINATION LAYOUTS
Many situations call for a mixture of the three main layout types. These mixtures are commonly
called combination or hybrid layouts. For example, one firm may utilize a process layout for the
majority of its process along with an assembly in one area. Alternatively, a firm may utilize a
fixed-position layout for the assembly of its final product, but use assembly lines to produce the
components and subassemblies that make up the final product (e.g., aircraft).

CELLULAR LAYOUT
Cellular manufacturing is a type of layout where machines are grouped according to the process
requirements for a set of similar items (part families) that require similar processing. These
groups are called cells. Therefore, a cellular layout is an equipment layout configured to support
cellular manufacturing.

Processes are grouped into cells using a technique known as group technology (GT). Group
technology involves identifying parts with similar design characteristics (size, shape, and
function) and similar process characteristics (type of processing required, available machinery
that performs this type of process, and processing sequence).

Workers in cellular layouts are cross-trained so that they can operate all the equipment within the
cell and take responsibility for its output. Sometimes the cells feed into an assembly line that
produces the final product. In some cases a cell is formed by dedicating certain equipment to the
production of a family of parts without actually moving the equipment into a physical cell
(these are called virtual or nominal cells). In this way, the firm avoids the burden of rearranging
its current layout. However, physical cells are more common.

An automated version of cellular manufacturing is the flexible manufacturing system (FMS).

Some of the advantages of cellular manufacturing include:

 Cost. Cellular manufacturing provides for faster processing time, less material handling,
less work-in-process inventory, and reduced setup time, all of which reduce costs.
 Flexibility. Cellular manufacturing allows for the production of small batches, which
provides some degree of increased flexibility. This aspect is greatly enhanced with FMSs.
 Motivation. Since workers are cross-trained to run every machine in the cell, boredom is
less of a factor. Also, since workers are responsible for their cells' output, more autonomy
and job ownership is present.
OTHER LAYOUTS
In addition to the aforementioned layouts, there are others that are more appropriate for use in
service organizations. These include warehouse/storage layouts, retail layouts, and office layouts.

With warehouse/storage layouts, order frequency is a key factor. Items that are ordered
frequently should be placed close together near the entrance of the facility, while those ordered
less frequently remain in the rear of the facility. Pareto analysis is an excellent method for
determining which items to place near the entrance. Since 20 percent of the items typically
represent 80 percent of the items ordered, it is not difficult to determine which 20 percent to
place in the most convenient location. In this way, order picking is made more efficient.

While layout design is much simpler for small retail establishments (shoe repair, dry cleaner,
etc.), retail stores, unlike manufacturers, must take into consideration the presence of customers
and the accompanying opportunities to influence sales and customer attitudes. For example,
supermarkets place dairy products near the rear of the store so that customers who run into the
store for a quick gallon of milk must travel through other sections of the store. This increases the
chance of the customer seeing an item of interest and making an impulse buy. Additionally,
expensive items such as meat are often placed so that the customer will see them frequently (e.g.,
pass them at the end of each aisle). Retail chains are able to take advantage of standardized
layouts, which give the customer more familiarity with the store when shopping in a new
location.

Office layouts must be configured so that the physical transfer of information (paperwork) is
optimized. Communication also can be enhanced through the use of low-rise partitions and glass
walls.

A number of changes taking in place in manufacturing have had a direct effect on facility layout.
One apparent manufacturing trend is to build smaller and more compact facilities with more
automation and robotics. In these situations, machines need to be placed closer to each other in
order to reduce material handling. Another trend is an increase in automated material handling
systems, including automated storage and retrieval systems (AS/AR) and automated guided
vehicles (AGVs). There also is movement toward the use of U-shaped lines, which allow
workers, material handlers, and supervisors to see the entire line easily and travel efficiently
between workstations. So that the view is not obstructed, fewer walls and partitions are
incorporated into the layout. Finally, thanks to lean manufacturing and just-in-time production,
less space is needed for inventory storage throughout the layout.