project of facility layout

8/9/2019 Project of Facility layout

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Submitted To: Submitted BY:Prof. SubirGuhaKapil Vardani

PGDM (MKT)

R.NO- 10008


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Accman Institute of Management

Acknowledgement Letter

Dear Sir/Madam,

Subject: Project on Inventory Management,

I deeply acknowledge the support of Prof. SubirGuha who initially helped and motivated us toembark on this strenuous .I would like to give thanks to providing me an opportunity to makethis project.

Name & Title of Authorised Representative:

Signature:

College Name and Address:

Telephone number:


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Introduction :

F acility Layout means planning:a. F or the location of all machine, utilities, employees, workstations, customer

service areas, material storage areas, aisles, restrooms, lunchrooms, internet walls,offices and computer rooms.

b. F or the flow of patterns of materials and people around, into, and within building.c. Infrastructure services such as the delivery of line communications, energy and

water and the removal of waste water all make up basic utilities.

Ch aracteristic of facility layout decision:a. L ocation of these various areas impacts the flow through the system.

b. The layout can affect productivity and costs generated by the system.c. L ayout alternatives are limited by

the amount and type of space required for the various areas.

the amount and type of space available.

the operations strategy.

Obj ective of layout Strategy:

Develop an economic layout which will meet the requirements of:

a. Product design and volume (product strategy)

b. Process equipment and capacity (process strategy)c. Quality of work life (human resource strategy)d. Building and site constraints (location strategy)


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B asic layout forms:a. Process L ayout

b. Product L ayoutc. Combination L ayoutd. F ixed position L ayout

y P rocess Layouty U sed when the operations system must handle a wide variety of products in

relatively small volumes (i.e., flexibility is necessary).y The layouts include departments or other functional groupings in which similar

kinds of activities are performed.

y A manufacturing example of a process layout is the machine shop, which has

separate departments for milling, grinding, drilling, and so on.

y P roduct Layouty Product layout is used to achieve a smooth and rapid flow of large volumes of

products or customers through a system.

y F or instance, if a portion of a manufacturing operation required the sequence of cutting, sanding, and painting, the appropriate pieces of equipment would bearranged in that same sequence.


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y C om b ination Layouty It is a type of layout in which a process layout is combined with a product layout.y F or instance, supermarket layouts are fundamentally of a process nature, and

however we find most use fixed-path material-handling devices such as roller-type conveyors both in the stockroom and at checkouts, and belt-type conveyorsat the cash registers.

y F ixed- P osition layouty In fixed-position layouts, the item being worked on remains stationary, and

workers, materials, and equipment are moved as needed.y F ixed-position layouts are widely used for farming, firefighting, road building,

home building, remodeling and repair, and drilling for oil,buildings, ships,aircrafts.

F actors in Determining Layout and Design:

Small business owners need to consider many operational factors when building or renovating afacility for maximum layout effectiveness. These criteria include the following:

1. E ase of future expansion or c h ange F acilities should be designed so that theycan be easily expanded or adjusted to meet changing production needs. "Althoughredesigning a facility is a major, expensive undertaking not to be done lightly, there isalways the possibility that a redesign will be necessary. Therefore, any design should beflexible. F lexible manufacturing systems most often are highly automated facilitieshaving intermediate-volume production of a variety of products. Their goal is tominimize change over or setup times for producing the different products while stillachieving close to assembly line (single-product) production rates."

2. F low of movement The facility design should reflect a recognition of theimportance of smooth process flow. In the case of factory facilities, the plan will showthe raw materials entering your plant at one end and the finished product emerging at theother. The flow need not be a straight line. Parallel flows, U -shaped patterns, or even azig-zag that ends up with the finished product back at the shipping and receiving bays can

be functional. However, backtracking is to be avoided in whatever pattern is chosen.When parts and materials move against or across the overall flow, personnel and paper work become confused, parts become lost, and the attainment of coordination becomescomplicated."

3. Materials h andling Small business owners should make certain that the facilitylayout makes it possible to handle materials (products, equipment, containers, etc.) In anorderly, efficient and preferably simple manner.


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4 . O utput needs The facility should be laid out in a way that is conducive to helpingthe business meet its production needs.

5. Space utilization This aspect of facility design includes everything from makingsure that traffic lanes are wide enough to making certain that inventory storagewarehouses or rooms utilize as much vertical space as possible.

6. Sh ipping and receiving small business owners to leave ample room for this aspectof operations. "While space does tend to fill itself up, receiving and shipping rarely getenough space for the work to be done effectively," it said in How to Run a Small

Business. 7. E ase of communication and support F acilities should be laid out so that

communication within various areas of the business and interactions with vendors andcustomers can be done in an easy and effective manner. Similarly, support areas should

be stationed in areas that help them to serve operating areas.8. Impact on employee morale and job satisfaction Since countless studies

have indicated that employee morale has a major impact on productivity. Some wayslayout design can increase morale are obvious, such as providing for light-colored walls,windows, space. Other ways are less obvious and not directly related to the production

process.

Some examples are including a cafeteria or even a gymnasium in the facility design.Again, though, there are costs to be traded off. That is, does the increase in morale due toa cafeteria increase productivity to the extent that the increased productivity covers thecost of building and staffing the cafeteria."

9. P romotional value If the business commonly receives visitors in the form of customers, vendors, investors, etc., the small business owner may want to make sure thatthe facility layout is an attractive one that further burnishes the company's reputation.Design factors that can influence the degree of attractiveness of a facility include not onlythe design of the production area itself, but the impact that it has on, for instance, ease of fulfilling maintenance/cleaning tasks.

10. Safety The facility layout should enable the business to effectively operate inaccordance with Occupational Safety and Health Associationguidelines and other legalrestrictions.


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Difference b etween office and factory Layout


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F actory layout

Offices and manufacturing facilities are typically designed in much different ways a reflectionof the disparate products that the two entities make. "A factory produces things. These things aremoved with conveyors and lift trucks; factory utilities include gas, water, compressed air, wastedisposal, and large amounts of power as well as telephones and computer networks. A layoutcriterion is minimization of transportation cost.

However, that the mandate of business offices is to produce information, whether disseminatedin physical (reports, memos, and other documents), electronic (computer files), or oral(telephone, face-to-face encounters) form. "Office layout criteria, although hard to quantify, areminimization of communication cost and maximization of employee productivity.


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Layout requirements can also differ dramatically by industry

Service oriented : The needs of service-oriented businesses, for instance, are often predicated on whether customers receive their services at the physical location of the business (such as at a bank or pet grooming shop, for instance) or whether the business goes to the customer's homeor place of business to provide the service (as with exterminators, home repair

businesses, plumbing services, etc.) In the latter instances, these businesses will likelyhave facility layouts that emphasize storage space for equipment, chemicals, and

paperwork rather than spacious customer waiting areas.

Manufacturer industry:. Manufacturers may also have significantly different facility layouts, depending on theunique needs that they have. After all, the production challenges associated with

producing jars of varnish or mountaineering equipment are apt to be considerablydifferent than those of making truck chassis or foam beach toys.

R etail Industry :Retail outlets comprise yet another business sector that have unique facility layout needs.Such establishments typically emphasize sales floor space, inventory logistics, foot trafficissues, and overall store attractiveness when studying facility layout issues.

E xample

One example of facility layout that I have been involved in was to do with check-in desk allocation in Terminal 3 (usually referred to as T3) at Heathrow airport for British AirportsAuthority (BAA), the operators of Heathrow. T3 is used solely for international (mostly long-haul) flights.

At the time of this study T3 had 13 4 check-in desks arranged in 5 cul-de-sacs (denoted by A to Erespectively). A diagrammatic representation of the check-in area is given below.

--------------------------------------------------------xddxddxddxddxd dxxddxddxddxddxd dxxddxddxddxddxd dxxddxddxddxddxd dxxddxddxddxddxd dxxd A dxd B dxd C dxd D dxd E dx

d is a check-in desk area, x a baggage conveyor area


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Cul-de-sac's A and E had 28 check-in desks, cul-de-sacs B, C and D had 26 check-in desks. F or various reasons too complex to explain here the desks were effectively allocated to a singleairline (or handling agent). F or example cul-de-sac A was allocated to American Airlines (AA)and Saudi Airlines (SV). This meant that, even when these airlines had no flights scheduled, thecheck-in desks were not available to be used by other airlines.

Now from the airport operators point of view check-in is not where they make money from passengers, that occurs after they check-in, in the duty-free area, the restaurants and shops. Alsomany of the problems of operating an airport come down to managing fixed capacity well. Thereare only so many check-in desks, only so many terminals, only so many runways, etc.

The point of this study was to see what could be gained if BAA effectively took control of thedesks and allocated them to airlines on a time basis (the allocation changing every half-hour).Effectively the flight schedule repeats on a weekly basis so BAA needed an algorithm that wouldallocate each of the 13 4 check-in desks, seven days a week, by half-hour periods.

The key question that needs to be answered before attempting to allocate desks is: How manydesks does each airline actually need? Obviously an airline would like as many desks as possible- this gives them maximum flexibility and also means their competitors cannot have the desks!

To answer this question logically we need to consider factors like:

y flight scheduley size (capacity) of the plane used for each flighty load factor for a flight (percentage full)y arrival pattern for check-in (i.e. the statistical distribution of how passengers turn up for a

flight)y

queueing time at check-in.Airports are data-rich environments and data was not a problem in this study.

The last factor q ueuing time at check-in is a key one. F or example suppose airline X is twice asquick at processing passengers checking in as airline Y. Does this mean that BAA shouldallocate X only half as many desks as Y? To do so would be to penalise efficiency and thesolution adopted was to set a standard for queueing time (the same for all airlines) and to allocatedesks based on this standard. As BAA was only concerned with desk allocation (airlines couldchoose to man the desks or not!) airlines which were more efficient than the standard could useless personnel and/or have shorter queueing times, airlines which were less efficient than thestandard would have longer queueing times.

The algorithmic solution I adopted was a heuristic algorithm which built up a check-in desk allocation pattern over the course of time. It used a number of rules and restrictions not detailedhere.

The diagram below shows example output from that algorithm for cul-de-sac A (desks A1 toA28) on day 1 (Monday) over 2 4 hours at half-hour intervals. Recall that cul-de-sac A was


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shared between AA and SV. You will see in the diagram below how the desks are allocated over time to AA and SV. building up as their flights build up and falling off as their flights fall off.F or example at 5am AA is allocated three desks A1 to A3, at 5.30am there are allocated onemore desk (A 4 ), at 6am three more desks (A5 to A7), etc. Note too how some desks (e.g. desk A23) are allocated to one than one airline.

HO U R 4 5 6 7 8 9 10 11 12 13 1 4 15 16 17 18 19 20 2122 23 2 4

A1 -- -- AAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAA -- -- -- -- -- ---- -- -- -- -- -- -- -- --

A2 -- -- AA AAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAA ---- -- -- -- -- -- -- -- -- -- -- -- -- -- --

A3 -- -- AA AAAAAAAAAAAAAAAAAAAAAAAAAAAA -- -- -- AAAAAAAAAA -- ---- -- -- -- -- -- -- -- -- -- -- -- -- --

A4 -- -- -- AA AAAAAAAAAAAAAAAAAAAAAAAA -- -- -- -- -- AAAAAA -- -- -- -- -- -

- -- -- -- -- -- -- -- -- -- -- --A5 -- -- -- -- AA AAAAAAAAAAAAAAAAAAAAAA -- -- -- -- -- -- AAAA -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --

A6 -- -- -- -- AA AAAAAAAAAAAAAAAA -- AAAA -- -- -- -- -- -- AAAA -- -- -- -- -- -- ---- -- -- -- -- -- -- -- -- --

A7 -- -- -- -- AA AAAAAAAAAAAAAA -- -- AAAA -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- ---- -- -- -- -- -- -- --

A8 -- -- -- -- -- AA AAAAAAAAAAAA -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- ---- -- -- -- -- --





A13 -- -- -- -- -- AA AAAAAAAAAA -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- ---- -- -- -- -- --

A14 -- -- -- -- -- -- AA AAAAAAAA -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- ---- -- -- -- --

A15 -- -- -- -- -- -- AA AAAAAAAA -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- ---- -- -- -- --

A16 -- -- -- -- -- -- AA AAAAAAAA -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- ---- -- -- -- --

A17 -- -- -- -- -- -- AA AAAAAAAA -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- ---- -- -- -- --

A18 -- -- -- -- -- -- AA AAAAAAAA -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- ---- -- -- -- --


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A19 -- -- -- -- -- -- AA AAAAAAAA -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- ---- -- -- -- --

A20 -- -- -- -- -- -- -- AA AAAA -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- SV -- -- -- -- -- -- -- -- -- -- -- --

A21 -- -- -- -- -- -- -- AA AAAA -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- SV SVSV -- -- -- --

-- -- -- -- -- --A22 -- -- -- -- -- -- -- AA AAAA -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- SV SVSVSVSV -- -- -- -- -- -- -- -- -- --

A23 -- -- -- -- -- -- -- AA AAAA -- -- -- -- -- -- -- -- -- -- -- -- -- -- SV SVSVSVSVSVSV -- -- ---- -- -- -- -- -- --

A24 -- -- -- -- -- -- -- -- AA -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- SV SVSVSVSVSVSV -- -- -- ---- -- -- -- -- --

A25 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- SV SVSVSVSVSVSVSV -- -- -- -- -- -- -- -- --

A26 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- SV SVSVSVSVSVSVSV -- -- -- -- -- -- -- -- --

A27 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- ---- --A28 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --

-- --

Note the number of times above above when desks are not allocated to an airline. There is a lotof spare check-in desk capacity in this cul-de-sac on this day. This could potentially be used for other airlines. More airlines using T3 means more money for BAA and better use of their fixedcapacity.

C onclusion

F acility layout and design is an important component of a business's overall operations, both in terms of maximizing the effectiveness of production processes and meetingemployee needs and/or desires. The criteria for a good layout necessarily relate to people(personnel and customers), materials (raw, finished, and in process), machines, and their interactions."

project of facility layout

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