Layout - Definition

Layout: the physical arrangement of

machines,
equipment,
workstations,
people, and
material handling equipment.

The final layout plan is the end result of

Facilities Design.
2

What is Facility Layout?

Location or arrangement of everything within &
around buildings
Objectives are to maximize
Customer satisfaction
Utilization of space, equipment, & people
Efficient flow of information, material, & people
Employee morale & safety

Objectives of Facility Layout

Minimize investment in equipment.
Minimize production time.
Minimize material handling cost.
Maximize utilization of space, equipment, & people
Maintain flexibility of arrangement and operation.
Provide safety and comfort to employees.
Customer satisfaction
Efficient flow of information, material, & people

Five Types of Facility Design Projects

1.

New Facility fewer restrictions and constraints on the layout since it is

new

2.

New Product integration of a new product into the existing process

and layout

3.

Design Changes incorporate the impact of design changes into the

manufacturing process

4.

Cost Reduction redesign the existing layout to facilitate cost reduction

programs and ideas

5.

Retrofit similar to a new facility layout except with the constraints

present ( )

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.

Layout
Developing the layout is an important step it
serves to establish the physical relationships
between activities.
So, which comes first, the material handling
system or the facility layout? Our answer is,
"Both!" The layout and the handling system
should be designed simultaneously,

Layout
The complexity of the design problem
generally requires that a sequential process be
used. For this reason, we recommend that a
number of alternative handling systems be
developed and the appropriate layout be
designed for each.

Impact of Poor Plant Layout

High material handling costs

Cycle and lead time delays
High WIP inventories
Lower quality
Product damage
Safety and morale problems
Poor equipment utilization
Congested aisles
Wasted floor space

Basic Layout Types

1.
2.
3.
4.
5.

Fixed material location departments - Fixed product

layouts
Production line departments - Product layouts
Product family departments - Product family layouts
Process departments - Process layout
Hybrid - Mass Customization Layout

Layout Procedures
Two different categories:
1. Construction - involves developing a new
layout "from scratch
2. Improvement - generate layout alternatives
based on an existing layout

Layout Procedures
Appless Plant Layout Procedure
(20 steps procedure)
Reeds Plant Layout Procedure
(10 steps procedure)
Layout Planning Chart

Apples Plant Layout Procedure

Apple recommended that the following detailed sequence of steps be used in

designing a plant layout.
1. Procure the basic data.

11. Determine storage requirements

2. Analyze the basic data.

12. Plan service and auxiliary activities.

3. Design the productive process.

13. Determine space requirements.

4. Plan the material flow pattern.

14. Allocate activities to total space.

5. Consider the general material handling plan. 15. Consider building type
6. Calculate equipment requirements.

16. Consider master layouts.

7. Plan individual work stations.

17. Evaluate, adjust and check the layout.

8. Select specific material handling equipment. 18. Obtain approval.

9. Coordinate groups of related operations.

19. Install the layout.

10. Design activity relationships.

20. Follow up on implementation of the layout.

Reeds Plant Layout Procedure

In planning for and preparing the layout, Reed recommended that the
following steps be taken in his systematic plan of attach:
1. Analyze the product to be produced.
2. Determine the process required to manufacture the product.
3. Prepare layout planning charts.
4. Determine work stations.
5. Analyze storage area requirements.
6. Establish minimum aisle widths.
7. Establish office requirements.
8. Consider personnel facilities and services.
9. Survey plant services.
10. Provide for future expansion.

Algorithmic Approaches
1.

Relationship Diagramming - for new layouts

2.

Pair-wise Exchange Method- for layout

improvements

3.

Graph-Based Construction Method - for new layouts

Muthers Systematic Layout Planning

Procedure (SLP)
1. It uses as its foundation the activity
relationship chart,
2. A material flow analysis (From-to-chart) and
an activity relationship analysis (REL chart)
are performed
3. Relationship diagram is developed
4. Determine the amount of space to be
assigned each activity (use departmental
service and area requirement sheets)
5. Space templates are developed for each
planning department this leads to the space
relationship diagram
6. Layout alternatives are developed

Product Layout

1, Flow of Materials

2, Activity Relationships

Analysis

Input Data and Activities

3, Relationship Diagram

4, Space Requirements

5, Space Available

7, Modifying Considerations

8, Practical Limitations

Search

6, Space Relationship Diagram

10, Evaluation

Selection

9, Develop Layout Alternatives

Input Data/Activities
The first step of SLP is to gather information
about the building including how it will be used and
what flows will be occurring.
Product: What is being used/moved/created?
Quantity: What volume of materials/people/
machines?
Routing: Where are things being moved?
Support: What equipment and systems are needed
to support main operations?
Timing: When will activities occur?

Sources for Data:

Most of the information concerning the types of
parts and assemblies that will produced will come
from documents that you learned about in PP&S
design. These documents include:
Parts Lists
Bill of Material
Process Flow Chart
Process Map
Routing Sheets
Assembly Chart
Operations Process Chart
Assembly Precedence Diagram
Production Schedule

Traditional Layout Configuration

An Activity Relationship Diagram is developed from information

in the activity relation chart, Essentially the relationship diagram is a
block diagram of the various areas to be placed into the layout,
The departments are shown linked together by a number of lines, The
total number of lines joining departments reflects the strength of the
relationship between the departments, e,g,, four joining lines indicate
a need to have two departments located close together, whereas one
line indicates a low priority on placing the departments adjacent to
each other,
The next step is to combine the relationship diagram with
departmental space requirements to form a Space Relationship
Diagram, Here, the blocks are scaled to reflect space needs while
still maintaining the same relative placement in the layout,

Legend
A Rating
E Rating
I Rating
O Rating
U Rating
X Rating

A Block Plan represents the final layout based on activity

relationship information, If the layout is for an existing facility, the
block plan may have to be modified to fit the building, In the case of
a new facility, the shape of the building will confirm to layout
requirements,

10

Example 1
REL chart:

1, Offices (1000)

2, Foreman (125)

4
I

E
5

3, Conference Room (125)

5
U

O
4
U

4, Parcel Post (350)

5, Parts Shipment (500)

6,

Repair and Service Parts(75)

7, Service Areas (575)

8, Receiving (200)

O
4

E
3
U

10, General Storage (1750)

U
U
I
I

2
U

O
2
U

U
I
4

U
U
E
3

9, Testing (900)

O
3
I
2

A
1

Code

Reason

Flow of material

Ease of supervision

Common personnel

Contact Necessary

Conveniences

U
I
2
U

U
I
2

I
1

Rating
A

Definition
Absolutely Necessary

Especially Important

Important

Ordinary Closeness OK

Unimportant

Undesirable

Example 1 (Cont,)

10

Activity Relationship
Diagram

11

Example (Cont,)
5
(500)

8
(200)

7
(575)

9
(500)

6
(75)

10
(1750)

4
(350)

3
(125)

2
(125)

1
(1000)

Space Relationship
Diagram

Example (Cont,)
5
(500)

8
(200)

7
(575)

5
(500)

8
(200)

7
(575)

6
(75)

6
(75)

9
(500)
10
(1750)

4
(350)

2 (125)

9
(500)
3 (125)

1
(1000)

Alternative 2

10
(1750)

4
(350)

2
(125)

3
(125)

1
(1000)

Alternative 1

12

Systematic Layout Planning

Example 2: Reasons for Closeness
Code

Reason

Type of customer

Ease of supervision

Common personnel

Contact necessary

Share same price

Psychology

10

11

Systematic Layout Planning-Example (Importance of Closeness)

Line
code

Numerical
weights

Value

Closeness

Absolutely necessary

16

Especially important

Important

Ordinary closeness OK

Unimportant

Undesirable

-16

13

Systematic Layout Planning--Example

Relating Reasons and Importance
From

2
I
6

1, Credit department

3
U
--

To

U
--

2, Toy department
3, Adult books department

4
A
4

5
U
--

I
1
U
--

A
1,6
X
1

Area
(sq, ft,)

X
1

4, Camera department
5, Candy department

100
400
300
100
100

Letter

Closeness rating

Number

Reason for rating

12

13

Systematic Layout Planning-Example

Initial Relationship Diagram
E

1
I

3
4

U
5

14

Systematic Layout Planning-Example

Initial and Final Layouts
5

2
3

3
5

20 ft

4
50 ft

Initial Layout

Final Layout

Ignoring space and

building constraints

Adjusted by square
footage and building
size

14

Relationship Diagramming
REL chart:

- Group Relationships
1st level: A-E-I-O-U-X
2nd level: AA, AE, A*,
EE, EI, E*, II, I*,
rd
3 Level, AAA, AAE,
AA*, AEE, AE*,
th
4 level
,
,
,
- The question to be
answer is which
department to be
entered next,

1, Offices (1000)

2, Foreman (125)

4
I

E
5

3, Conference Room (125)

5
U

O
4

4, Parcel Post (350)

5, Parts Shipment (500)
6,

Repair and Service Parts(75)

7, Service Areas (575)

8, Receiving (200)
9, Testing (900)
10, General Storage (1750)

U
U
U

O
3
I
2
U

O
4

3
U
U

U
I
I

2
U

U
I
4

U
O
2

U
U
E
3

U
E

A
1

U
I
2
U

U
I
2

I
1

A
E

15

Relationship Diagramming
-

The 1st department to enter is 10

The 2nd one is the one that has the
highest rate with 10 (5 and 8) are
candidates, 5 enters since there is an I
relationship with 2
The 3rd one
1

10

U U

10

10

10

is 8 with the highest rate of AU

- The 4th one is 9
1

U I

10

10

U I

U O U U U U U

U U E

U I

U U U U U

Relationship Diagramming
-

The 5th one to enter is 7

The 6th on to enter is 6

The 7th one to enter is 2

10

10

10

The 8th one to enter is 3

4

9th

The

one to enter is 1

The 10th one to enter is 4

10

5
3

16

Relationship Diagramming
- If the space impact is included the
following could be an alternative
layout
4
(350)

4
5
(500)

10

8
(200)

10
(1750)

1
(1000)

3 (125)
7
(575)

9
(500)
2 (125)

6
(75)

Relationship Diagramming
Final alternative
4
(350)

5
(500)

1
(1000)

8
(200)

10
(1750)

7
(
5
7
5
)

3 (125)
9
(500)

6
(75)
2 (125)

17

Graph-based Approach
Keys:
A node (O) represents a department
An arc ( ___ ) represent a relationship
A weight is assigned to each relationship (Closeness Rating Rel-Chart):
Rules:
No arc intersection is allowed
Dimensional specifications are not considered
The scores are very sensitive to the numerical weights assigned
The scores do not represents distances

Graph-Based Construction Method

Given the relationship chart
1 Directors Conference Room
2 President
3 Sales
4 Personnel
5 Plant manager

1
2
3

9
8

4
10

12
13

5
0

20
0
2

18

Graph-Based Construction Method

Strategy: iteration is based on inserting a new node
Step -1: Largest weight-pair departments
3

20

Step -2: Largest weight-pair departments with respect to 3-4

3

Total

10

18

12

13

25
(Best)

2
12

13

20

Graph-Based Construction Method

Step-3

Total

10

27

12

13

(Best)

16

10

8
3

20

19

Graph-Based Step 4
5

Faces

Total

1-2-3

1-2-4

9
(best)

1-3-4

2-3-4

9
(best)

9
12

13

5
0

1
10

3
20

Adjacency Graphs Version A

1
0
9
5

7
2

13
12
4
3

20

Arc

Weight

1-2

1-5

2-3

12

2-4

13

2-5

3-4

20

4-5

Total

63

20

Adjacency Graphs Version B

5
0
7
1

9
2

10

13
12
4
20

Arc

Weight

1-5

2-5

1-2

1-4

10

2-4

13

2-3

12

3-4

20

Total

71

Block Layout From The Final Adjacency

Graphs
12

2
9

7
0

13

8
2

10
3
20

Arc

Weight

1-2

1-3

1-4

10

1-5

2-3

12

2-4

13

2-5

3-4

20

4-5

Total

81

21

Pair-wise exchange method

Improvement: redesign of an existing

facility ( new machine, expansion of
storage,
Objective: Minimize the total cost of
MH
Min MH cost
n

min z X ij Cij
i 1 j 1

X=Number of moves
C: cost of a move

Xij

Procedure:

Example: ( 4 departments with equal

size)
Existing layout and

- 10 15 20

- 10

Pair-wise exchange method

Cij

Develop the cost matrix

Calculate the total cost

1
4

TotalCost X ij Cij
i 1 j 1

TC= (10) ($1)+ (15)(2) +(20)(3)+ (10)(1)+(5)(2)+(5)(1)

= $125
Feasible alternatives
(1-2), (1-3), (1-4), (2-3), 2-4), (3-4) because all the
departments are equal in areas
Check each alternatives
Alternative 1 exchange 1 by 2
The layout will be

2
3
4

Cij
1
2
3
4

1
-

The Cost matrix will be -------------

22

Pair-wise exchange method

TC1234 = 125 (existing layout cost)
TC2134 = (10)(1)+(15)(1)+(20)(2)+(10)(2)+(5)(3)+(5)(1) =105
TC3214 = 95
Feasible exchange pair is 1-3
TC4231 = 120
TC1432 = 105
TC1324 = 120
TC1243 = 125
Iteration 1 leads to the following layout
Iteration 2
3
2
1
TC3214 = 95 (1st iteration layout cost)

TC1234 = 125
TC3241 = 110
TC2314 = 90 Feasible exchange pair is 2-3
TC
Iteration 2 leads to the following layout
2

SLP Example
XYZ inc, has a facility with 6 depts, (A,B, C, D, E, and F), A summary of
the processing sequence for 10 products and the weekly production
forecasts for the products, and areas are given in the tables below:
Dimension
(ft*ft)

products

A 40 x 40
B
C

45 x 45
30 x 30

D 50 x 50

1.
2.
3.

60 x 60

50 x 50

F To Chart
Block laying diagramming using SLP
Developing a block laying using
Relationship diagramming

Processing
Seq,

Weekly
Production

ABCDEF

960

ABCBEDCF

1,200

ABCDEF

720

ABCEBCF

2,400

ACEF

1,800

ABCDEF

480

ABDECBF

2,400

ABDECBF

3,000

ABCDF

960

10

ABDEF

1,200

23

a)Construct the F T Chart

A-B = 960 + 1,200 + 720 + 2,400

+ 480 + 2,400 + 3,000 + 960 +
1,200
= 13,320
B-A = 0
B-C = 960 + 1,200 + 720 + 2,400
+ 480 + 960 = 11,400
C-B = 1,200 + 2,400 + 3,000 =
6,600

13,320

1,800

11,400

6,600

4,920

5,400

6,600

2,400

4,200

3,600

3,000

1,200

5,040

960

5,400

7,800

1,200

5,160

A
A

Since we dont have the Rel chart

we base our closeness rating on
material flow information,

B
C

13,320

1,800

18,000

9,600

10,320

5,400

3,600

12,000

3,600

6,240

960

5,160

AB = A-B + B-A
BC= B-C+C-B
.

E
F

.
.
.

Rank and Code

A

18,000, 13,320

12,000, 10,320, 9,600

3,600

6,240, 5,400, 5,160

1,800, 960, 0, 0, 0
U

A
B

U
A

Rel. Chart: A E I O U
C

A
A
B

- A

- A

- O

E
F

U
E

O
D

U
E

E
I

U
I

O
U

- I
-

24

1st to enter is B (two As)

2nd to enter is C (E & O)

C
B

U
A

3rd to enter is A (A effect)

4th

to enter is E
A

5th to enter is D

A U

U
E

E
I

C O

U
I

O
U

B E

F
A

C
E

6th to enter is F

C
E

A U

Relationship Diagram

Block Diagram

F
AA

C
E
E

B
D

F
C
E

25

Pairwise Exchange Example

Given:
4-equal size departments are
Served by an AGV on a
Linear bidirectional track
As shown. Each machine
block
Is 30X30 ft. The product
routine
Information and required
production
Are given. Determine
arrangement
based on the pairwise
exchange
method. Assume P/D point
as shown in the figure.

BDCAC

300

BDAC

700

DBDCAC

900

ABCA

200

Pair-wise Exchange Example

Arrangement/Costs
ABCD = 200 30 + 3,300 45 +
700 75 + 200
15 + 2,800 45 + 1,200 30 = 372,000
BACD = 342,000

A
B

200

3300

700

200

2800

1200

C
D

A
B

30

45

75

15

45

30

C
D

CBAD = 507,000
DBCA = 435,000
ABCD = 372,000

CABD = 351,000
DACB = 468,000
Find Arrangement

BACD

26

Graph-based Approach Example

The ABC cooling and heating company manufactures several different types of air
conditioners. 5 departments are involved in the processing required for the products. A
summary of the processing sequence required for the 5 major products and weekly
production volumes for the products are shown in the table below along with the department
area. Based on the graph-based approach construction method, develop a block layout
Product

Process Weekly
sequence Production

Department

Area

ABC

150

1500

ABED

200

1500

ACE

50

1000

ACBE

200

2000

ADE

250

2000

Graph-based Approach Example

Solution:
a)
Construct flow between departments
A-B = 150 + 200 =350
B-A= 0
AB= A-B +B-A =350
A-C= 50 +200 =250
C-A = 0
=================================
b) Weights = flow
1) the largest weight is for the 2 depts. D and E.
2) the 3rd department to enter is B
3) the 4th department to enter is A
4) the 5th department to enter is C but where?

Dept

350

250

250

350

400

50

450

C
D

250 0

Total

50

300

A
C

Total

250 0

350 600

400 400

50

350 400

50

B
C

250 0

250 0

250

Total

50

Total

250 50

Total

350 650

350 600

27

Graph-based Approach Example

D

Adjacency Graph

A
E

Block Layout

D
C

Need For Change

Changes in the products
Changes in design of product
Eliminating products from the product line
Introduction of new products

Changes in the processes

Change in sequence for existing products
Replacement of equipment

Changes in production
quantities and
schedule

Changes in organizational structure (selected Mfg system)

28

Impact of Changes
Expansion
Mirror image expansion: simple, free
of bottlenecks and limited to one time
expansion
Straight line flow expansion:
Unlimited, simple, low add on cost
building but hard to selectively expand
some departments
T-shape expansion
U-Shape expansion

Computer Aided Layout

Enhance productivity & Quality of Solution
Can not Replace human Judgment
Types of Algorithms
Type of Input Data
Qualitative Data- REL Chart
Quantitative Data F-T chart

Objectives:
Minimizing the sum of flow times distance (Distance-Based Approach)
Maximizing an adjacency score (Adjacency-Based Approach)

29

Computer Aided Layout

a)

Distance-Based Approach
f: flow number between i and j

d: distance from i and j

c: cost of moving one unit from i to j
i and j: departments

MinZ

fdc
ij

i 1

ij ij

j 1

n: number of departments

b)

Adjacency-Based Approach
1) Z= adjacent score
n

f: flow number between i and j

MaxZ f ij xij

x: adjacency score
= 1 if i and j are adjacent
= 0 otherwise

i 1 j 1

Computer Aided Layout

b) Distance-Based Approach
2) Z* = Relative efficiency or Efficiency
rating
0 < Z* < 1
as Z* 1 all the departments are adjacent
Cij = 1 for the same MH equipment

Max* f ij xij / f ij
i 1 j 1

i 1 j 1

3) Z^ = Relative efficiency or Efficiency rating

for ve values of relationships
Cij = 1 for the same MH equipment
+F: positive Rel. group of Depts.
- F: negative Rel. group of Depts.

Max^ ( fij xij F fij (1 xij F )) /( fij F f ij F )

i 1 j 1

i 1 j 1

i 1 j 1

i 1 j 1

30

Computer Aided Layout

Example: Given the flow no. between
departments and the first iteration
layout, find the relative adjacency
score.
Solution
a) identify the adjacency matrix
1

1
2

4
5

1 2 3 4
1
2
3
4

1 -

5 0 4

-3

6 -1

-6

Computer Aided Layout

1
2

b) Calculate Z*
f = 5 +0+4-3+6-1+2-6+0+3 = 10
n

ij

j 1

4
5

f
i 1 j 1

ij

xij

= f12*X12 + f13*X13 + f14*X14 +

f15*X15 + f23*X23 + f24*X24 + f25*X25
+ f34*X34 + f35*X35 + f45*X45
= 1*5 +1*0 +4*0+ -3*0 +6*1+
-1*0 + 2*0 + -6*1 + 0*1
+3*1 = 8
Z* = 8/10 = 0.8 close to 1 good
adjacency relationships

1
2
3
4
5

-3

-1

-6

1
-

31

Computer Aided Layout

c) Calculate Z^
f (+ve) = 5 +0+4+6+2+0+3 = 20
f (-ve) = -3-1-6 = -10
n

ij

F (-ve): (1,5), (2,4), (3,4)

j 1
n

ij

F (+ve): the rest

j 1

x (+ve) = f12*X12 + f13*X13 +

f14*X14 + f23*X23 + f25*X25 +
f35*X35 + f45*X45
= 1*5 +1*0 +4*0+ 6*1+ 2*0
+ 0*1 + 3*1= 14
f x (-ve) = f15*X15 + f24*X24 + f34*X34
= -3*1 +-1*1 + -6*0= -4

ij

1
2

ij

i 1 j 1

4
5

ij

ij

i 1 j 1

1
2

Z^ = (14- (-4))/(20 (-10)) = 0.6

Not close to 1 good adjacency
relationships

3
4
5

-3

-1

-6

1
-

Computer Aided Layout

Layout Representation Format
Discrete:
-

Area of each department is rounded to the

nearest integer
Grid size affects the resolution and the
computation time

Continuous
-

No grid
More difficult
Restricted to rectangular shape

32