Basic Layout Types

1
Basic Layout Types

• Low number of part types
• High production volume
• Equipment arranged by processing sequence

Product layout
Fixed-position

• Low number of part types
• Low production volume
• Equipment, personnel moved to site

Cellular layout (Group Technology)

• Medium number of part types
• Medium production volume
• Equipment arranged by part family

• High number of part types
• Low production volume
• Equipment arranged by operation sequence

Process layout (Job Shop)
2
Volume-Variety Layout Classification
Volume
Product Layout
High
Hard Automation
Cellular Layout
Soft Automation
Medium
Fixed Location Layout
Manual
Process Layout
Low
Variety
Low
Medium
High
3
Break-Even Point Analysis
Product Layout
Process Layout
vs.
Higher
Lower
Fixed Cost

• Setup
• One-time

Variable per unit cost
Higher
Lower
F fixed cost v variable cost/unit r selling
price/unit Q production level
Revenue function rQ
Cost Function F vQ
4
Break-Even Point Analysis - continued
Revenue function rQ
Cost Function F vQ
Cost
Cost
Product layout
Production volume
Production volume
Process layout
5
Break-Even Point Analysis - continued
Point 3
Point 2
Point 1
6
Small Example

• Four parts (A, B, C, and D) are to be produced
  and assembled into a single product.
• Processing Sequence
• A saw turn mill drill
• B saw mill drill paint
• C grind mill drill paint
• D weld grind turn drill
• All parts go to a central assembly department.
• Daily production rate 100
• Product composition 1 of part C, 2 of parts B
  and D, 3 of part A.

7
Small Example - Data
What is the equipment requirement and utilization
for product layout, cellular layout and process
layout?
Source Example 2.1 Francis and White page
56-57.
8
Strategic Facilities Planning
Increases exponentially beyond planning and
design phases see Figure 2.1, page 22
Cost of design change?
Focus is on
Strategic Planning
Strategic Plan for an organization

• Function strategy
• marketing
• manufacturing
• distribution
• purchasing
• facilities
• material handling
• information systems

9
Strategic Facilities Planning - Improvement
Lateral vs. Hierarchical approach
Communicate with everyone in the organization
Scope for improvement

• Physical aspects
• Control aspects
• Timing aspect