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.
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?
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
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
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
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
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
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
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
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
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
