Facilities and Layout Planning

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Facilities Layout and Location Planning

Facility Layout

-Is the design or plan of an operating unit in such a way that it optimizes the production of a good or completion of a service. The aim of a facility layout is to lessen the overhead costs while speeding up the production work. -The infrastructure & materials are located in such a way that maximum production is done from available resources. It is also dependent on process selection.

Importance of Layouts
1. They require substantial investments of both money and effort 2. They involve long term commitments, which makes mistakes difficult to overcome 3. They have a significant impact on the cost and efficiency of short term operations

Common Reasons for Redesign of Layouts

1. Inefficient operations (ex. High cost, bottlenecks)

2. Accidents or safety hazards

3. Changes in the design or introduction of new products and services

4. Changes in the volume of output or mix of outputs

5. Changes in methods or equipment

6. Changes in the environment or other legal requirements

7. Morale problems (ex. Lack of face to face contact)

Factors in determining efficient facilities layout (Objective):

1. Flexibility: The facility layout should be such that it can be readjusted or modified according to future expansion or changes. 2. Flow of Movement: It should be a smooth flow from input to output so that the overall coordination is maintained between various units. 3. Utilization of Space: There should be a proper & optimal usage of space to ensure that all the equipment is properly placed & the handling of materials is done is done best in such a space. 4. Ease of Communication: There should be an effective communication between various aspects of business which is conducive to its overall growth. 5. Safety: Occupational safety measures must be in place for optimum production & cutting losses caused due to hazards. 6. Management of Materials: There should be a proper maintenance & upkeep of equipments to ensure that the production is hassle free. 7. Ensuring High Employee Morale: Since this directly affects production, factors like attractiveness of a facility, ventilation, lighting, restrooms & cafeterias have to be provided for maximum employee participation. 8. Promotional value: If the business commonly receives visitors in the form of customers, vendors, investors, etc., the business owner may want to make sure that the facility layout is an attractive one that further burnishes the company's reputation. Types of Facility Layout:

There are three basic types of facility layouts:
1. Product Layouts
- are most conducive to repetitive processing
2. Process Layouts
- are used for intermittent processing
3. Fixed-position Layouts
– are used when projects require layouts
*But a mixture of these pure types of facility layouts produces the fourth type

4. Hybrid Layouts
-includes cellular layout and flexible manufacturing system

Product Layouts : Repetitive Processing
- Are used to achieve a smooth rapid flow of large volumes of goods or customers through a system. - The work is divided into a series of standardized tasks, permitting specialization of equipment and division of labor. - Each item/product follows the same sequence of operations thus the resulting arrangement forms a line. In manufacturing the lines are called Production lines or Assembly lines depending on the type of activity involved. In service processes, a line may or may not be used. (Cafeteria line, or simply car wash) Figure1. Manufacturing Environment: Production line of a biscuit Figure2. Service Processes: Car Wash Lay out

Advantages of product layouts:
• 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...
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