The document discusses various types of facility layouts used in manufacturing and non-manufacturing settings. It describes McDonald's use of process layouts across its global supply chain, with centralized distribution centers and strict logistical controls to ensure consistent food quality and on-time deliveries. The document also covers other layout types like product layouts, group technology layouts, and fixed position layouts, comparing their characteristics and suitability for different production environments.

1. FACILITY
LAYOUT
(Process.
Product and
services
layout)
CAPACITY PLANNING
AND CONTROL
January 30, 2016

2. ANALYZE THE COMMON TYPES OF
MANUFACTURING LAYOUTS
ILLUSTRATE LAYOUTS USED IN
NONMANUFACTURING SETTINGS
LEARNING OBJECTIVES

3. MCDONALD’S
QSR Philosophy
11,000 restaurants (7,000 in USA, remaining
in 50 countries)
700 seat McDonald’s in Pushkin Square,
Moscow
$60 million food plant combining a bakery,
lettuce plant, meat plant, chicken plant, fish
plant and a distribution center, each owned
and operated independently at same location

4. Food taste must be the same at any
McDonald, yet food must be secured locally
Strong logistical chain, with no weak links
between
Close monitoring for logistical performance
300 in Australia
Central distribution since 1974 with the help
of F.J. Walker Foods in Sydney
Then distribution centers opened in several
cities
MCDONALD’S CONT...

5. MCDONALD’S CONT...
2000 ingredients, from 48 food plants,
shipment of 200 finished products from
suppliers to DC’s, 6 million cases of food and
paper products plus 500 operating items to
restaurants across Australia
Delivery of frozen, dry and chilled foods twice
a week to each of the 300 restaurants 98% of
the time within 15 minutes of promised
delivery time, 99.8% within 2 days of order
placement
No stock-outs, but less inventory

6. ENTITIES IN A SUPPLY CHAIN
Supplier
Supplier
Manufacturing
Plant
Manufacturing
Plant
Raw
Material(s)
Assembly Plant
Central Distribution Center(s)
Regional Distribution Center(s)
Regional Distribution Center(s)
Retail Outlets
Retail Outlets

7. AGENDA
 Concepts
- Introduction
 Facility layout
- Factors affecting the Layout
- Scope of Facility layout
- Types of Facility layout
-Operations
 Review
 Video presentation
 Q&A

8. The systematic layout planning (SLP) is a
tool used to arrange a workplace in a
plant by locating two areas with high
frequency and logical relationships close
to each other. The process permits the
quickest material flow in processing the
product at the lowest cost and least
amount of handling.
WHAT DO YOU MEAN BY LAYOUT
PLANNING?

9.  The physical location of various
department/units of the facility
within the premises of the facility.
The departments may be located
based on the considerations such as:
WHAT IS A FACILITY LAYOUT
Less walking distance
Logical sequence of the processing
requirements of the product
Emergency services, etc.

10.  Facility layout is simply the
way a facility is arranged in
order to maximize processes
that are not only efficient but
effective towards the overall
organizational goal
WHAT IS THE MEANING OF FACILITY
LAYOUT?

12. Material
Product
Machinery
Managerial Policies
Type of Industry
Labor
Location
FACTORS AFFECTING LAYOUT

13. Related to Material
Related to workplace
SCOPE OF FACILITY LAYOUT
o Less material handling & minimum
transportation cost
o Less waiting time for in-process inventory
o Safe work ventilation, lighting etc.
o Minimum movement of workers
o Less chances of accidents, fire, etc.
o Proper space for machines, worker, tools, etc.

14. Simpler plant maintenance
Increased productivity, better quality,
and reduced cost
Least set-up and minimal change-
over
Objective related to flexibility
Scope for future expansion
PERFORMANCE OBJECTIVES

15. PROCESS LAYOUT
PRODUCT LAYOUT
GROUPING TECHNOLOGY LAYOUT
FIXED POSITION LAYOUT
TYPES OF LAYOUTS

16. PROCESS LAYOUT
• Suitable when product having standard
features is to be produced in large volumes
• The specialized machines and equipment are
arranged one after another in the order of
sequence required in the production process

17. PROCESS LAYOUT
L
L
L
L
L
L
L
L
L
L
M
M
M
M
D
D
D
D
D
D
D
D
G
G
G
G
G
G
A A AReceiving and
Shipping Assembly
Painting Department
Lathe Department
Milling
Department Drilling Department
Grinding
Department
P
P

18.  More floor space
 More work in progress
 More distance travelled by
the product
 Greater Flexibility
 Better & more efficient
supervision possible
through specialization
 Better utilization of Man
& Machines
ADVANTAGE DISADVANTAGE
PROCESS LAYOUT

19. PROCESS LAYOUTS
Equipment that perform similar
processes are grouped together
Used when the operations system
must handle a wide variety of
products in relatively small volumes
(i.e. flexibility is necessary)

20. CHARACTERISTICS OF PROCESS LAYOUTS
General-purpose equipment is used
Changeover is rapid
Material flow is intermittent
Material handling equipment is flexible
Operators are highly skilled

21. CHARACTERISTICS OF PROCESS LAYOUTS
Technical supervision is required
Planning, scheduling and controlling functions
are challenging
Production time is relatively long
In-process inventory is relatively high

22. PROCESS LAYOUT
PRODUCT LAYOUT
GROUPING TECHNOLOGY LAYOUT
FIXED POSITION LAYOUT
TYPES OF LAYOUTS

23.  It is appropriate for producing one standardized product
usually in large volume. It is also called as flow -shop or
straight line layouts.
 The machines are arranged according to progressive steps by
which the product is made.
o Example: Chemical, paper, rubber, refineries, cement industry.
PRODUCT LAYOUT

24. A PRODUCT LAYOUT
In
Out

25. PRODUCT LAYOUT
 Expansion of product line is
difficult
 There is difficulty in
supervising
 Breakdown of equipment
disrupts the production
 Mechanization of
materials is possible
and material handling
cost can be reduced
 It requires less floor
area
 It facilitates better
production control
 Production bottlenecks
are avoided.
ADVANTAGE DISADVANTAGE

26. PRODUCT (ASSEMBLY LINE) LAYOUTS
Operations are arranged in the sequence
required to make the product
Used when the operations system must handle
a narrow variety of products in relatively high
volumes
Operations and personnel are dedicated to
producing one or a small number of products

27. CHARACTERISTICS OF PRODUCT LAYOUTS
Special-purpose equipment are used
Changeover is expensive and lengthy
Material flow approaches continuous
Material handling equipment is fixed
Operators need not be as skilled

28. CHARACTERISTICS OF PRODUCT LAYOUTS
Little direct supervision is required
Planning, scheduling and controlling
functions are relatively straight-
forward
Production time for a unit is relatively
short
In-process inventory is relatively low

29.  Description
 Type of process
 Product
 Demand
 Volume
 Equipment
 Sequential
arrangement of
activities
 Continuous, mass
production, mainly
assembly
 Standardized, made to
stock
 Stable
 High
 Special purpose
Process
Comparison of Product
and Process Layouts
 Functional grouping
of activities
 Intermittent, job
shop, batch
production, mainly
fabrication
 Varied, made to
order
 Fluctuating
 Low
 General purpose
Product

30.  Workers
 Inventory
 Storage space
 Material handling
 Aisles
 Scheduling
 Layout decision
 Goal
 Advantage
 Limited skills
 Low in-process, high
finished goods
 Small
 Fixed path (conveyor)
 Narrow
 Line balancing
 In-l,ine, U-type
 Equalize work at each
station
 Efficiency
Process
Comparison of Product
and Process Layouts
 Varied skills
 High in-process, low
finished goods
 Large
 Variable path (forklift)
 Wide
 Dynamic
 Functional
 Minimize material
handling cost
 Flexibility
Product

31. PROCESS LAYOUT
PRODUCT LAYOUT
GROUPING TECHNOLOGY LAYOUT
FIXED POSITION LAYOUT
TYPES OF LAYOUTS

32. Grouping technology layout of cellular
manufacturing layout is made for a single part
family i.e. parts with common characteristics.
In this layout dissimilar machines are grouped
into cells and each cell functions like product
layout.
GROUP TECHNOLOGY LAYOUT

33. CELLULAR MANUFACTURING (CM)
LAYOUTS
 Grouping of machines in cells
 Each cell results in the production of particular part
family.
 Similar parts are identified and grouped together.
 Similarity can be either in shape, size or in
manufacturing process
 Operations required to produce a particular family
(group) of parts are arranged in the sequence
required to make that family
 Used when the operations system must handle a
moderate variety of products in moderate volumes

34. PART FAMILIES
Part families with similarity
in shape
Part families with
similarity in
manufacturing process

35. GROUP TECHNOLOGY LAYOUT
 Reduces the flexibility It reduces handling cost
 It simplifies machine
change-overs
 It reduces in-process
inventory and automate
the production
ADVANTAGE DISADVANTAGE

36. ORIGINAL PROCESS LAYOUT
CA B Raw materials
Assembly
1
2
3
4
5
6 7
8
9
10
11
12

37. PART ROUTING MATRIX
Machines
Parts 1 2 3 4 5 6 7 8 9 10 11 12
A x x x x x
B x x x x
C x x x
D x x x x x
E x x x
F x x x
G x x x x
H x x x
Figure 5.8

38. REORDERED ROUTING MATRIX
Machines
Parts 1 2 4 8 10 3 6 9 5 7 11 12
A x x x x x
D x x x x x
F x x x
C x x x
G x x x x
B x x x x
H x x x
E x x x

39. PROCESS LAYOUT
PRODUCT LAYOUT
GROUPING TECHNOLOGY LAYOUT
FIXED POSITION LAYOUT
TYPES OF LAYOUTS

40. REVISED CELLULAR LAYOUT
3
6
9
Assembly
12
4
8 10
5
7
11
12
A B C
Raw materials
Cell 1 Cell 2 Cell 3

41. Due to size, shape and other characteristics
constraints, the products cannot be moved,
the machine and operators move around the
product.
FIXED POSITION LAYOUT
o Example: Construction of a building and an assembly of
aircraft or ship.

42. AUTOMATED MANUFACTURING CELL
Source: J. T. Black, “Cellular
Manufacturing Systems Reduce
Setup Time, Make Small Lot
Production Economical.” Industrial
Engineering (November 1983)

43.  Less investment
 Less transport cost as
bulky machines are not
moved
ADVANTAGE DISADVANTAGE
FIXED POSITION LAYOUT

44. CHARACTERISTICS OF CM
RELATIVE TO PROCESS LAYOUTS
 Equipment can be less general-purpose
 Material handling costs are reduced
 Training periods for operators are shortened
 In-process inventory is lower
 Parts can be made faster and shipped more quickly
 Equipment can be less special-purpose
 Changeovers are simplified

45. FLEXIBLE MANUFACTURING SYSTEMS (FMS)
 FMS consists of numerous programmable machine tools
connected by an automated material handling system and
controlled by a common computer network
 FMS combines flexibility with efficiency
 FMS layouts differ based on
 variety of parts that the system can process
 size of parts processed
 average processing time required for part completion

46. FULL-BLOWN FLEXIBLE MANUFACTURING
SYSTEM

47. PHOTOS
FACILITY LAYOUT
(PROCESS. PRODUCT AND SERVICES
LAYOUT)
FOR YOUR EYES ONLY

49. VIDEO PRESENTATION