Gary Rushin describes the phases to design, evaluate, implement and maintain an effective manufacturing plant layout and materials handling system. To improve deficiencies in existing manufacturing facilities, traditional and contemporary methodologies are used to create effective manufacturing and plant layouts. Gary Rushin is a consultant engaged in business turnarounds.

1. Manufacturing and
Plant Master Planning
Gary S. Rushin
Certified Public Accountant
Chartered Global Management Accountant
http://garyrushin.com

2. FACILITIES PLANNING DEFINED
According to Stephens and
Meyers (2013):
Manufacturing facilities design is
the organization of the company’s
physical assets to promote the
efficient use of resources such as
people, material, equipment, and
energy.
Facilities Design includes: Plant
location, building design, plant
layout, and materials handling.

3. PROFIT AND LOSS CONSIDERATIONS
Manufacturing facilities design and material handling
affect the productivity and profitability of the company
more than almost other major corporate decision.
The facilities design directly affects the quality and cost of the
product.
Material handling has positively affected on workers more
than any other area of work, design, and ergonomics.
The money to pay for material handling comes from reduced
cost of labor, material, or overhead cost. These expenses
must recovered in 2 years or less (50% Return of Investment
or higher)

4. Facilities Planning and the Supply Chain
Facilities planning assist organizations
achieve supply chain excellence, a
process with six-levels or steps:
Business as usual, link excellence,
visibility, collaboration, synthesis, and
velocity (Tompkins, White, Bozer, &
Tanchoco, 2010).

5. Facilities Planning and the Supply Chain
1. Business as Usual
2. Link Excellence
3. Visibility Framework
The process to maximize the individual function of
the supply chain (buy-make-move-store-sell).
Tear down the internal
boundaries until the
enterprise functions as
one.
Bring to light all the supply chain
links to minimize surprises.

6. Facilities Planning and the Supply Chain
4. Collaboration
5. Manufacturing Synthesis
6. Velocity Framework
To determine how best to meet the
demands of the marketplace.
Unify all supply chain
links to form a whole
creating the following
results: increased
return of assets,
improved customer
satisfaction, reduced
cost, and an
integrated supply
change.
Leverage technology to
meet customers’
expectation

7. FACILITIES COMPONENTS
Today facilities components in the supply chain must have the
following characteristics:

8. Facilities Planning and the Supply
Chain
THE SUPPLY CHAIN GOAL IS TO
MAINTAIN A STRATEGIC COMPETITIVE
ADVANTAGE

9. Hierarchy of Facility Planning
Location: Is the placement of a facility with respect to customers, suppliers, and other
facilities with which it interfaces.
Structure: Consists of the building and services (e.g., gas, water, power, heat, light,
air, sewage).
Layout: Consists of all equipment, machinery, and furnishings within the structure.
Handling System: Consists of the mechanism by which all interactions required by the layout
are satisfied (e.g., materials, personnel, information, and equipment
handling systems).
Facility
Planning
Structural
DesignFacility
Location
Facility
Design
Layout
Design
Handling
System Design

10. Facility layout means planning:
For the location of all machines, utilities, employee
workstations, customer service areas, material
storage areas, aisles, restrooms, lunchrooms,
internal walls, offices, and computer rooms
For the flow patterns of materials and people
around, into, and within buildings

11. Layout Strategy
Communications
Material
Attributes
Work Cell
Material FlowSafety
Warehousing
Service Areas

12. Space and Area Layout Design
• Equipment
• Work stations
• Material storage
• Rest/break areas
• Utilities
• Eating areas
• Aisles
• Offices

13. FACILITIES PLANNING PROCESS
[Traditional Engineering Approach]
Define (or redefine) the objective of
the facility to produce the products
quantitatively (i.e., volume when ever
possible) keeping in mind the supply
chain.
Define the Problem
Phase I

14. FACILITIES PLANNING PROCESS
[Traditional Engineering Approach]
Phase II: Specified the primary and support activities to be performed in
accomplish the objective (i.e., equipment, operations, personnel, and
materials flow involved).
Analyze the Problem Determine the interrelationships among all
activities. Both quantitative and qualitative
relationships should be defined within the
boundaries of the facility.
Determine space
requirement for all
activities
All equipment, materials, and personnel
requirements must be considered when
calculating space requirements for each
activity.
Generate alternative designs to include
alternative layout design, structural design, and
material handling design.

15. FACILITIES PLANNING PROCESS
[Traditional Engineering Approach]
.
Evaluate the
alternatives
Determine the subjective factors involved and
evaluate whether and how these factors will
affect the facilities or its operation.
Implement the
design
Consider the amount of planning must precede
the actual construction of a facilities or the
layout of an area.
Select the design
Select a facilities plan that satisfies the goal
and objectives.

16. FACILITIES PLANNING PROCESS
[Traditional Engineering Approach]
Determine space
requirement for all
activities
All equipment, materials, and personnel
requirements must be considered when
calculating space requirements for each
activity.
Generate alternative designs to include
alternative layout design, structural design, and
material handling design.

17. FACILITIES PLANNING PROCESS
[Traditional Engineering Approach]
Redefine the
objective of the
facilities
Maintain and adapt
the facilities plan
As new requirements are placed on the
facilities, the overall facilities plan must be
modified accordingly.
Phase III

18. FACILITIES PLANNING PROCESS
[A Contemporary Approach]

19. FACILITIES PLANNING PROCESS
[A Contemporary Approach]

20. Sequence vs. Integrated Approach
Sequence Approach
Product
Design
Process
Design
Facilities
Layout
Material
Handling
System
Design
Production
Planning

21. Sequence vs. Integrated Approach
Product
Design
Process
Design
Schedule
Design
Layout Design
+
Material Handling
System Design
Integrated Approach :
Impressive results in cost, quality,
productivity, sales, customer
satisfaction, delivery time,
inventory levels, space + handling
requirements, building size, etc.

22. Process Flow Charting
Process Flow Chart

23. Schematic Layout Planning
Use Schematic Layout Planning Tools
(SLP)
• SLP uses tools to solve problems, yet the there
are more problem solving and management
tools that could be added to make the model
more effective.
• The SLP procedure is very user-friendly. The
approach is quite straightforward and offers the
user detailed explanation of which steps to
perform and how to perform them. The
procedure does not require special training even
though experience and knowledge is to great
advantage.
• The steps in the SLP procedure is merely
focusing on the development and evaluation of
layout design alternatives, even though the book
discusses how to make the implementation.

24. Material Flow Mapping
Material Flow
Present Layout: The purple
arrows show how the arriving
material enters the facility and
is distributed to the different
storage areas. The green
arrows are on the other hand
illustrating how the finished
product is transported from one
of the workstations. Forklift
trucks transport most of the raw
material, but hand trucks are
also used.Future Layout: Use the
model to develop a thesis
to create a layout for the
future

25. Workstation

26. About Gary S. Rushin, CPA/CGMA
Gary Rushin is the former CEO of a distressed manufacturing
company. His approach is creating enterprise value. Experienced
in corporate acquisitions, bankruptcies, and turnarounds, Gary
Rushin restructured distressed manufacturers, technology
companies, and transportation companies. He utilizes his
background as a former CEO, CFO, investment and commercial
banker, educator, and consultant. Gary Rushin is a member of the
American Institute of Certified Accountants (AICPA) and as a
member of it Information Technology Research Subcommittee and
the Top Technologies Committee. He is a Certified Public
Accountant and Chartered Global Management Accountant. Gary
has a Bachelors of Business Administration with a concentration in
Accounting (Temple University) and a Masters of Science in
Computer Science (Southeastern University).

27. Gary S. Rushin, CPA/CGMA
http://garyrushin.com
garyrushin@gmail.com
(703) 864-8510