Improperly designed or inadequatey planned facilities affect the business operations in many ways. Worker productivity may decline due to stressors and fatigue contributors brought about by unnecessary travel between workstations, lack of or inadequacy of material handling equipment resulting to manual lifting and carrying, repetitive tasks due to poorly designed processes, and conditions affecting a worker physically such as improper illumination and excessive noise level or temperature. This study proposes several improvements in the facility of a small-scale furniture shop by applying the principles of facilities planning and design. The goal is to improve the daily operations of the shop while also protecting workers from building-related hazards and risks.

1. Holy Angel University
School of Engineering and Architecture
Department of Industrial Engineering
A Term Paper Requirement for the Subject Facilities Planning and Design
(FACPLANDES) entitled:
PROPOSED IMPROVEMENTS IN THE FACILITY
LAYOUT AND DESIGN OF A SMALL-SCALE FURNITURE
MANUFACTURING SHOP IN ANGELES CITY
Prepared by:
Yutuc, Angelo
Sevilla, Darwin
Montemayor, Michaella
Maniago, Angelica
Luciano, Marie Illana
Amistades, Kimberly
IE501
Prepared for:
Engr. Kimberly Serrano
Instructor
Submitted on:
October 10, 2017

2. Table Of Contents
ABSTRACT 3
I. INTRODUCTION 4
II. STATEMENT OF THE PROBLEM 5
III. OBJECTIVES 6
IV. SIGNIFICANCE OF THE STUDY 6
V. CONCEPTUAL FRAMEWORK 7
VI. METHODS AND PROCEDURES 8
6.1 RESEARCH DESIGN 9
6.2 INTERVIEW 9
6.3 PARTICIPANTS 9
6.4 INSTRUMENTATION 9
6.5 TIME STUDY 9
6.6 COMPUTER-AIDED DESIGN (CAD) LAYOUT 10
6.7 TRANSPORT DISTANCE AND TIME 10
VII. RESULTS AND DISCUSSION 10
7.1 PROCESS FLOW CHART 10
7.2 ENGINEERING DESIGN PROCESS TO FACILITIES PLANNING 11
7.2.1 OBJECTIVES OF THE FACILITY 11
7.2.2 PRIMARY SUPPORT AND ACTIVITIES 12
7.2.3 SPACE REQUIREMENTS 12
7.2.4 TRANSPORT DISTANCE BETWEEN OPERATIONS 14
7.3 OTHER PROBLEMS OBSERVED 17
VIII. PROPOSED FACILITY LAYOUT 21
8.1 PROPOSAL 1: MACHINE REPOSITIONING 26
8.2 PROPOSAL 2: SPACE FOR STORAGE 28
8.3 PROPOSAL 3: PROPER AND ADEQUATE ILLUMINATION 30
IX. CONCLUSION AND RECOMMENDATIONS 32
REFERENCES AND APPENDICES ERROR! BOOKMARK NOT DEFINED.

3. ABSTRACT
Improperly designed or inadequatey planned facilities affect the business operations in many ways.
Worker productivity may decline due to stressors and fatigue contributors brought about by
unnecessary travel between workstations, lack of or inadequacy of material handling equipment
resulting to manual lifting and carrying, repetitive tasks due to poorly designed processes, and
conditions affecting a worker physically such as improper illumination and excessive noise level
or temperature. This study proposes several improvements in the facility of a small-scale furniture
shop by applying the principles of facilities planning and design. The goal is to improve the daily
operations of the shop while also protecting workers from building-related hazards and risks.

4. I. INTRODUCTION
One of the most labor-intensive and artistic industries in the Philippines is the country’s
furniture industry. Furniture companies tap the hardworking, creative and enterprising qualities of
Filipinos in manufacturing high-quality furniture. According to the Philippine Statistics Authority
(PSA, 2014), 98% of the industry categorized under SMEs, provides 2.1 million indirect workers
nationwide and provides business to 5.4 million in its supply chain. Ninety-five percent (95%) of
furniture companies in the country are classified as SMEs and the three major furniture production
areas in the country are in Metro Manila, Pampanga and Cebu. Metro Manila and nearby peripheral
cities in CALABARZON (Cavite, Laguna, Batangas, Rizal and Quezon) consist of small, medium
and large furniture enterprises which specializes in wood furniture and other mixed materials.
Pampanga is associated with hand-carved wood, wicker and iron products. (Furniture - Securing
the Future of Philippine Industries, n.d.). To maintain a competitive edge over the dense furniture
market in Pampanga, furniture manufacturers must ensure that they meet a certain standard in
terms of quality of their products and timely delivery of output. However, these goals must be met
while maintaining efficient production and safe working environment to their workers. This is why
planning and designing a production facility is a critical factor in optimizing efficiency and
fostering a safe working environment to workers. According to Diaz & Smith (2008), Facilities
Planning and Design puts together people, material, machine, and process to create tangible
product or service at the most optimal cost, highest quality, and using the least amount of resources.
This study intends to formulate a facility design concept for a small-scale manufacturing furniture
located in Pandan, Angeles City whose goal is to eliminate wastefulness of materials and improves
overall productivity.

5. II. STATEMENT OF THE PROBLEM
Due to their labor-intensive work nature, furniture manufacturing units must be organized
in a way that reduces, if not eliminates, unnecessary wastes in: movement, storage, transportation,
and task repetition. The ideal setup should be followed in order to achieve desirable output.
However, the furniture manufacturing facility in Pandan, Angeles City which the researchers
decided to observe and assess, is constantly facing challenges that disrupt the efficient flow of its
operations. The management team and the workers of the furniture manufacturing unit were
interviewed and the data collected were compiled. Figure 1 shows the categories and sub-
categories of issues and challenges facing the operation, resulting in reduced productivity:
Figure 1. Fishbone diagram

6. III. OBJECTIVES
The objective of the study is to improve the productivity of a micro-scale furniture industry. To
achieve the general objective, specific objectives must be met and accomplished, including:
 To improve and design the production floor layout using Direct Clustering Algorithm
 To organize the work process and material flow
 To eliminate unecessary movements of the workers and materials
 To minimize the time of transporting materials and travel time of worker
IV. SIGNIFICANCE OF THE STUDY

7. The researchers hope that the study will offer significant contribution to the operational
improvement of the small-scale furniture manufacturing business located in Pandan, Angeles City.
Moreover, the researchers believe that the study will contribute in increasing the productivity of
similar small-scale furniture manufacturing facilities across the country, as well as serve as
reference for future researchers. Possible benefits that participants could gain through the results
of the action in this study were considered. Thus, furniture firms need to pursue innovation
strategies based on creativity, quality and differentiation of products, as well as improved
customer service. Designing the exisiting layout will contribute to the productivity progression of
the worker . Furniture firms are not successful without its worker that is why a renovation of the
existing facility will improve the unsafe conditions of the workplace.
The study could also serve as reference for the future researchers as this can be a basis for
further improvement regarding the techniques that the management and the workers of the
company could be use to become a more efficient furniture company.
V. CONCEPTUAL FRAMEWORK

8. The Input-Process-Output (IPO) model was used in describing the conceptual framework
of the study as shown in Figure 2. The formulated model was divided in three major fragments.
Input (1) includes all the data and requirements needed in the accomplishment of the study. Process
(2) pertains to the tools and means that was undertaken in gathering and processing the input data.
The findings and outcomes of the study was referred to as the output (3) of the study.
Figure 2. The conceptual framework of the study using Input-Process-Output model.
VI. METHODS AND PROCEDURES
To satisfy the objectives of the study, a step-by-step procedure were conduceted to offer
solutions to the problems of the furniture manufacturing unit.
INPUT
•Material flow
•Production
layout
•Process flow
•Production
process data
PROCESS
•Data
Collection
•Interview
•Observation
•Time Study
OUTPUT
•Improved
Plant Layout
•Improved
Process Flow
•Improved
Productivity

9. 6.1 Research Design
A descriptive design will be used in this study. The proponent will use quantitative data to describe
the characteristic of the numerical data that the researcher used to analyze the problem.
6.2 Interview
Both verbal and written interview were conducted to obtain first-hand account of the problems of
the company. The data will be helpful to the researchers to identify the current situation of the
plant.
6.3 Participants
The people that the researchers targets to participate in this study are the plant manager of the
production plant, the workers, and the owner of the company. They are essential in the data
collection because they are the most reliable source of information due to their experience,
exposure, and general knowledge of the operations.
6.4 Instrumentation
The primary data tool used was the interview in identifying the current problem at the company.
Constructed interview was utilized to gain information apart from the scheduled interview. This
tool was used in order to raise important questions and attain substantial information that is helpful
in producing manuals.
6.5 Time Study
The researcher’s goal was to determine if the proposed new layout can improve the productivity
of the workers. Work measurement through time study was administered to set the standard time
of the processes. It was necessary to gain and record all the information available about the job,

10. the operator and environment conditions which is possible to affect the operationof the work. The
researchers obtained ten (10) observations for repetitive tasks such as cutting, sanding, and tracing.
Only one (1) observation was obtained for assembly and drying operations because these
procedures are done once per day.
6.6 Computer-Aided Design (CAD) Layout
One issue that affects workflow is the facility layout, forming the facility layout is not the first
pace but the last step to take in positioning equipment, processes and manpower.
6.7 Transport Distance and Time
A process flow chart has been developed for the manufacture of table and chair in the company as
illustrated in Figure 3. It was used to serve as the main basis in redesisgning the current layout. A
description is shown in Appendix E. The current facility is constructed in a 200 square meter land
which the business owns for almost 4 years.
VII. RESULTS AND DISCUSSION
7.1 Process Flow Chart

11. Eight (8) operation segments were identified that constitute the daily operations of the
manufacturing facility. Figure 3 indicates, in order, these segments.
Figure 3.Process Flow chart for the wood furniture manufacturing
7.2 Engineering Design Process to Facilities Planning
7.2.1 Objectives Of The Facility
 The facility is a wooden furniture manufacturing shop that produces tables, chairs and
other furniture parts.
 It is a third-party contractor of wood-based furniture for a company that exports them
as finished products.
 Orders are given to the shop on a monthly or weekly basis, depending on the needs
and demand for export.
Cutting Planing Shaping Assembling
GluingSandingVarnishingDrying

12.  The shop does not have its own market and does not sell finished goods commercially
due to its function as a service contractor.
 However, it caters special orders and custom work from other customers.
7.2.2 Primary Support And Activities
1. Equipment
1.1. Band Saw
1.2. 6-inch jointer
1.3. 12-inch table saw
1.4. Drill press
1.5. Circular Saw
1.6. Dust Suction (vacuum)
1.7. Horizontal and vertical sanding machine
1.8. Grinder
1.9. Air compressor
1.10. Table Router
1.11. Table planer / planning machine
2. Operations
2.1. Cutting
2.2. Planing
2.3. Shaping
2.4. Assembly
2.5. Gluing and drying
2.6. Sanding
2.7. Varnishing
2.8. Final drying
3. Personnel
3.1. 4 production workers
4. Products
4.1. Wooden chairs and tables
7.2.3 Space Requirements
1. The facility floor area measures 200 square meters, a rectangular layout that is 20 meters
by 10 meters.
2. The production area is not walled, that is, there are no physical partitions between
operations and machines.
3. Equipment are positioned in no particular order or sequence but with sufficient distance
from each other to allow movement of materials and workers.

13. Figure 4: Current Machine Positioning Layout

14. 7.2.4 Transport Distance Between Operations
Figure 5: Distance and route between all operations
Figure 6: Distance and route for planning operation

15. Figure 7: Distance and route for shaping operation
Figure 8: Distance and route for sanding operation

16. Figure 9: Distance and route for gluing and drying operation
Figure 10: Distance and route for cutting operation

17. Table 7.1
Summary Of Distance Of Every Operations
OPERATION DISTANCE BETWEEN MACHINES
Planing 2 meters
Shaping 12 meters
Sanding 3.5 meters
Cutting 12 meters
Gluing and Drying 15.5 meters
Total 45 meters
7.3 Other Problems Observed

18. 7.3.1 Storage
No dedicated area or room for storage of both work-in-progress and raw materials. The
finished parts are fixed in walls, while the lumber are everywhere near machines. This is
a safety risks and reduces the workable space.
Figure 10: Work-in-progress and raw materials storage area
7.3.2 Tidiness and Orderliness

19. Just as with raw materials and work-in-progress, there are no dedicated area or storage for
saw dust and chips. The researchers noticed that the concrete floor has a soil-like feel due
to the thick concentrate of saw residues. There is obvious danger in this condition:
 respiratory problems because the atmosphere is saturated with fine wood particles
 wood chips may hurt the eyes when it comes in contact
 esidues may result to slippery floor especially when moist or wet
 sharp objects may be hidden in the pile of saw dust and chips and may be stepped
on by workers or visitors
 machines can get clogged because of the dust and chips scattered across the room,.
Figure 11: Saw dust and chips scattered around the production area
7.3.3 Illumination

20. Surprisingly, the roof serves more purpose than just to protect the facility from weather. At the
start of the day, workers start raising the roof (literally) to allow sunlight in and illuminate the
facility. While this seem a practical step and can reduce electric consumption, the means of
having it done posses risks such as:
 In case of rain, the raised roof will let showers into the facility and could damage the
equipment as well as the raw materials and finished products.
 In case of strong wind, the entire roof structure could collapse or be taken down
 When there is not enough sunlight such as in cloudy weather, abundant natural light is
difficult to obtain.
Figure 11: Natural Light as main illumination
7.3.3 Disorganized machine placement and walkways are not cleared

21. Overall, the facility is not planned in accordance to a productive workspace. Figure 12 shows
that machines are situated just about anywhere. Both finished products, work in progress, and
raw materials clutter the work areas of workers. Electrical cables and wires are scattered in
walkways, as well as saw dust and chips. The façade of the facility is almost entirely open, which
allows good ventilation but to the extend that wind can easily blow off the saw dusts inside the
facility.
Figure 12: Panoramic view of the furniture manufacturing facility
VIII. PROPOSED FACILITY LAYOUT

22. For the machine placement and positioning, a method known as Direct Clustering Algorithm was
used to come up with groupings that is logical and clearly illustrates the important features of cell
clustering. Tompkins, et al (2010) defines cellular clustering as grouping machines logically so
that the material handling such as move time, wait time for moves and using smaller batch size,
and setup (part family tooling and sequencing) can be minimized. For production flow analysis,
results to efficient work flow and reduces tooling or machines. Table 8.1 shows the assigned
machines for each operation and the distance travelled between each.
Table 8.1
Machine-Process Distance Chart
PROCESS
CUTTING PLANING SHAPING SANDING
Total Distance
(meters)
MACHINE
Band Saw 5.5 5.5
6-inch jointer 4.5 4.5
12-inch table saw 5.5 5.5
Drill press 1 1
Circular Saw 1 2.5 2.5
Circular Saw 2 2 2
Circular Saw 3 2 2
Sanding machine 3.5 3.5
Grinder 4.5 3.5 8
Air compressor 0
Table Router 1.5 1.5
Planer 1 2 2
Planer 2 2 2
Total 17.5 4 11.5 7 45
Since several processes share the same set of machines, Direct Clustering Algorithm was used to
group these machines and processes together that reduces transportation.
Table 8.2
Machine-Process Matrix
Machine Operation CUTTING PLANING SHAPING SANDING Total

23. Grinder 1 1 2
Band Saw 1 1
12-inch table saw 1 1
6-inch jointer 1 1
Sanding machine 1 1
Circular Saw 1 1 1
Circular Saw 2 1 1
Circular Saw 3 1 1
Planer 1 1 1
Planer 2 1 1
Table Router 1 1
Drill press 1 1
Total 5 2 4 2 13
Several iterations were conducted to group the machines using Direct Clustering Algorithms
Table 8.3
Iteration 1
Machine Operation CUTTING SHAPING SANDING PLANING Total
Grinder 1 1 2
Band Saw 1 1
12-inch table saw 1 1
6-inch jointer 1 1
Sanding machine 1 1
Circular Saw 1 1 1
Circular Saw 2 1 1
Circular Saw 3 1 1
Planer 1 1 1
Planer 2 1 1
Table Router 1 1
Drill press 1 1
Total 5 4 2 2 13
Table 8.4
Iteration 2

24. Machine Operation CUTTING SHAPING SANDING PLANING Total
Grinder 1 1 2
6-inch jointer 1 1
Sanding machine 1 1
Band Saw 1 1
12-inch table saw 1 1
Circular Saw 1 1 1
Circular Saw 2 1 1
Circular Saw 3 1 1
Planer 1 1 1
Planer 2 1 1
Table Router 1 1
Drill press 1 1
Total 5 4 2 2 13
Table 8.5
Iteration 3
Machine Operation CUTTING SHAPING SANDING PLANING Total
Band Saw 1 1
12-inch table saw 1 1
Circular Saw 1 1 1
Circular Saw 2 1 1
Circular Saw 3 1 1
Grinder 1 1 2
6-inch jointer 1 1
Sanding machine 1 1
Planer 1 1 1
Planer 2 1 1
Table Router 1 1
Drill press 1 1
Total 5 4 2 2 13
Table 8.6
Iteration 4
Machine Operation CUTTING SHAPING SANDING PLANING Total

25. Band Saw 1 1
12-inch table saw 1 1
Circular Saw 1 1 1
Circular Saw 2 1 1
Circular Saw 3 1 1
Grinder 1 1 2
6-inch jointer 1 1
Table Router 1 1
Drill press 1 1
Sanding machine 1 1
Planer 1 1 1
Planer 2 1 1
Total 5 4 2 2 13
Table 8.7
Iteration 5
Machine Operation CUTTING SANDING SHAPING PLANING Total
Band Saw 1 1
12-inch table saw 1 1
Circular Saw 1 1 1
Circular Saw 2 1 1
Circular Saw 3 1 1
Grinder 1 1 2
6-inch jointer 1 1
Table Router 1 1
Drill press 1 1
Sanding machine 1 1
Planer 1 1 1
Planer 2 1 1
Total 5 2 4 2 13
Table 8.8 Iteration 6
Machine Operation CUTTING PLANING SANDING SHAPING Total
Band Saw 1 1

26. 12-inch table saw 1 1
Circular Saw 1 1 1
Circular Saw 2 1 1
Circular Saw 3 1 1
Planer 1 1 1
Planer 2 1 1
Sanding machine 1 1
Grinder 1 1 2
6-inch jointer 1 1
Table Router 1 1
Drill press 1 1
Total 5 2 2 4 13
The final iteration shows that two groups can divide the processes and machines to reduce
transportation and thus, unnecessary travel and movements.
8.1 PROPOSAL 1: MACHINE REPOSITIONING
Proposal 1 is based rearranging the machines based from the Direct Clustering Algorithm result.
The new arrangement clusters similar tasks and machines which ultimately reduces the travel
between machines. The total distance between machines is reduced fom 45 meters to just 21
meters

27. Figure 13: Proposal 1 – Machine Repositioning
Table 8.9
Summary Of Distance Of Every Operations of Layout Proposal 1
OPERATION DISTANCE BETWEEN MACHINES
Planing 2 meters
Shaping 8 meters
Sanding 3.5 meters
Cutting 4.5 meters
Gluing and Drying 3 meters
Total 21 meters
8.1.2 Comparison of Current VS Proposed Machine Positioning
Proposal 1 is visibly more organized than the current machine positioning and reduces
unnecessary travel between operations.

28. 8.2 PROPOSAL 2: SPACE FOR STORAGE
For proposal 2, spaces for some processes were reduced and machines were reoriented to
give way to storage spaces. The result is a 20m2
inventory space, and 30 m2
raw materials space.

29. This proposal is likely to address the safety and convenience problems when both the finished
goods, work-in-progress goods, and raw materials are put just about anywhere in the facility.
Figure 14: Proposal 2: Space for Storage

30. 8.3 PROPOSAL 3: PROPER AND ADEQUATE ILLUMINATION
Currenty, natural light is the dominant light source of the manufacturing facility. Although there
are fluorescent lamps, they are concentrated mostly on the half side of the facility where natural
light wasn’t abundant. The number of lamps was computed using the following lighting systems
formula:
Number of Lamps =
𝑳𝑶𝑰 𝒙 𝑨𝒓𝒆𝒂
(𝑪𝑼)(𝑳𝑳𝑭)𝑳𝟕𝟎)
Where: LOI = Minimum illumination level
CU = Coefficient of utilization
LLF = Light Luminary dirt depeciation factor
L70 = Lamp output at 70% of rated life
Figure 15: Facility Illustration

31. 8.3.1 Computation and values:
LOI = 100 fc
RCR = 2.3775 (5)( 3.17 feet) (20 m + 10 m) / (20 m x 10 m)
WR = 35% (Brick, cement, and concrete)
BCR = 65% (Aluminum, stainless steel, and polished aluminum)
ECR = 65% (Mounted, ECR=BCR)
CU = 70% (Flourescent lamps in uncovered fixtures)
L70 = 5400 (Fluorescent, 85 Watts)
LLF = 0.75 (Very Dirty, 24 months between cleaning
Number of Lamps =
(100 𝑓𝑜𝑜𝑡𝑐𝑎𝑛𝑑𝑙𝑒𝑠) ( 200 𝑠𝑞.𝑚.)
(70%)(75%)5400)
= 7.005 lamps or approximately 7 Lamps
Currently, there are ony 5 lamps in the facility. Additional lamps (quantity: 2) have to be
added to improve the illumination levels.

32. IX. CONCLUSION AND RECOMMENDATIONS
There is a strong correlation between productivity, safety, and efficiency and facilities
planning and design. A well-planned facility is instrumental in keeping costs low and efficiency
high by reducing unnecessary tasks, reducing repetitions, allocating proper space and resources
for a given process, improving the communication within the unit, and reducing or eliminating
hazards and risks that may lead to injuries. The researches were able to apply the principles and
techniques in real-life situation by examining and assessing a local wood furniture production area.
Before gaining knowledge about facility planning and design, one will not essentially notice what
the furniture shop lacks or needs improvements on but with mathematical models and
observational analyses, the researches came up with three (3) proposals for the manufacturing
shop. First, positioning the machines logically and systematically. Second, allocating space for
inventory and storage of raw materials. Third, improving the illumination.
The researchers conclude that the study will help in improving not only the business
process of the furniture shop, but will also improve worker’s morale in knowing that they are
provided with a well-planned workspace and workplace. This also directly affects their
productivity and efficiency.
The researchers recommend that future studies similar to this research focus more on the
qualitative state of workers as well as whether the results and recommendations of this study makes
a positive impact to the proponent facility.