The document provides an overview of facilities location and layout. It discusses factors that influence location selection such as proximity to markets, transportation, and labor costs. Methods for identifying an ideal location are described, including factor rating, weighted factor rating, load-distance, and break-even analysis. The principles and types of facility layouts are also outlined, such as process, product, and combination layouts. An activity relationship chart is introduced as a tool to represent the importance of locating operations near each other.

1. FACILITIES LOCATION AND LAYOUT
KELOMPOK I :
 LEONARD MERARI 122140085
 FIRDAUS ALBARQONI 122140058
 RAMADHAN DWI PUTRA 122140159
 ERWIN HENRYCO RAJAGUKGUK 122140049

2. • Overview
• Location
• Factor Influencing Location
• Identify Ideal Location
• Layout
• Principles of Layout
• Type of Layout
• Activity Relation Chart
CONTENT

3. Overview
• Facilities Planning is the process planning new facilities and revising or expanding
old capacities. Facility location is the process of determining geographic sites for
a firm’s operations.
• Facility Layout is the process of determining the placement of departments,
workgroups, workstations, machines and stock holding points within facility are
determined, and requires following inputs :
- Specification of system objectives in terms of output and flexibility
- Estimation of product or service demand on the system
- Processing requirements in terms of number of operations and amount of flow between
departments and work centers
- Space requirements for the elements in the layout
- Space availability within the facility itself

4. Overview
Why Facility Planning?
• 20-50% of the total expenses within manufacturing are attributed to materials handling.
Effective facilities planning can reduce the material handling costs by at least 10-30%
• To be competitive, very few companies will be able to retain all of their old facilities or
layouts
- Productivity improvements through elimination or reduction of unnecessary activities
- Improved health and safety
- To conserve & reduce consumption of energy
- Must conform to new rules, regulations, and standards
- lower the risk of fire, lower maintenance costs, etc.

5. Reason for firm should look for additional or alternate location
• To establish new venture
• Expansion of existing business
• Changes in demand and supply
• Company policy on diversification and change of working condition
• Changing in government policy
Location

6. Location
Scenario for Management :
- Make or Buy decision
- Sub-contract instead of expansion
- Expand existing organization
- Dispose of the existing plant and build new one

7. Location
Importance of Location
1. Competition
2. Cost
3. Indirect Benefits

8. Location
Comparison
between Urban
and Rural Locations

9. 1. Proximity to markets
2. Supply of raw material
3. Transport facilities
4. Infrastruture availability
5. Labour and wages
Factor Influencing Location

10. Factor Influencing Location
6. Law and Taxation
7. Suitability of Land and Climate
8. Supporting industries and services
9. Community and Labour attitudes
10. Social Infrastructure

11. Identify Ideal Location
1. Factor rating method
2. Weighted factor rating method
3. Load-distance method
4. Centre of gravity method
5. Break even analysis

12. Identify Ideal Location – Factor Rating Method
Location factor Factor rating Rating
Location 1 Location 2
Facility utilization 8 3 5
Total patient per month 5 4 3
Employee preferences 5 5 3
Location factor Factor rating Location 1 Location 2
Rating Total Rating Total
Facility utilization 8 3 24 5 40
Total patient per month 5 4 20 3 15
Employee preferences 5 5 25 3 15
Total 69 Total 70

13. Identify Ideal Location – Weighted Factor Rating Method
Location factor Weight Location 1 Location 2
Scores Total Scores Total
Facility utilization 25 3 75 5 125
Total patient per month 25 4 100 3 75
Average time per emergency trip 25 3 75 3 75
Land and construction costs 15 1 15 2 30
Employee preferences 10 5 50 3 30
Total 315 Total 335

14. Identify Ideal Location – Load Distance Method
The load-distance method is a
mathematical model used to
evaluate locations based on
proximity factors.
The objective is to select a
location that minimizes the total
weighted loads moving into and
out of the facility.
The distance between two
points is expressed by assigning
the points to grid coordinates
on a map. An alternative
approach is to use time rather
than distance.
A Load-Distance Model Example: Matrix Manufacturing is considering
where to locate its warehouse in order to service its four Ohio stores
located in Cleveland, Cincinnati, Columbus, Dayton. Two sites are being
considered; Mansfield and Springfield, Ohio. Use the load-distance model
to make the decision.
• Calculate the rectilinear distance :
miles4515401030dAB 

15. Identify Ideal Location – Load Distance Method
• Multiply by the number of loads between each site and the four cities
• The load distance score for Mansfield > Springfield. The Warehouse
should be located in springfield
Computing the Load-Distance Score for Springfield
City Load Distance ld
Cleveland 15 20.5 307.5
Columbus 10 4.5 45
Cincinnati 12 7.5 90
Dayton 4 3.5 14
Total Load-Distance Score(456.5)
Computing the Load-Distance Score for Mansfield
City Load Distance ld
Cleveland 15 8 120
Columbus 10 8 80
Cincinnati 12 20 240
Dayton 4 16 64
Total Load-Distance Score(504)
Note :
 Load : no of trip from origin to
destination in certain period
(week, month , year)
 Id : load distance score

16. Identify Ideal Location – Center of Gravity Method
Center of gravity
1. Determine the x and y coordinates of different locations either in the form of the
longitude and latitude of the locations, or by creating an (x, y) grid.
2. The center of gravity’s x-coordinate, denoted x*, is found by multiplying each point’s x-
coordinate (either the longitude of the location or the x coordinate on a grid), by its
load (li), summing these products (Σ lixi), and then dividing by the sum of the loads (Σ li).
The y-coordinate, denoted y*, is found the same way.

17. Identify Ideal Location – Center of Gravity Method
Census Tract Population Latitude Longitude Population  Latitude Population  Longitude
15 2,711 42.134 -80.041 114,225.27 -216,991.15
16 4,161 42.129 -80.023 175,298.77 -332,975.70
17 2,988 42.122 -80.055 125,860.54 -239,204.34
25 2,512 42.112 -80.066 105,785.34 -201,125.79
26 4,342 42.117 -80.052 182,872.01 -347,585.78
27 6,687 42.116 -80.023 281,629.69 -535,113.80
28 6,789 42.107 -80.051 285,864.42 -543,466.24
Total 30,190 1,271,536.05 -2,416,462.81
x

1,271,536.05
30,190
 42.1178
y

2,416,462.81
30,190
 80.0418
x

lixi
i

li
i

and y

li
i
 yi
li
i

x* is the longitude and y* is the latitude for the center of gravity.

19. Identify Ideal Location – Break Even Analysis
Break Even Analysis
1. For each location, determine the fixed and variable costs
2. Plot the total costs for each location on one graph
3. Identify ranges of output for which each location has the lowest total cost
4. Solve algebraically for the break-even points over the identified range

20. Identify Ideal Location – Break Even Analysis
Example 9.6 Using Break-Even Analysis
Location Fixed Cost Variable Cost Total Cost
A $350,000 $ 5(10,000) $400,000
B $170,000 $25(10,000) $420,000
C $100,000 $40(10,000) $500,000
D $250,000 $20(10,000) $450,000
From the graph you can see that
the two lowest cost intersections
occur between C & B (4667 units)
and B & A (9000 units)
The best alternative up to 4,667
units is C, between 4,667 and
9,000 units the best is B, and
above 9,000 units the best site is A

21. Layout – Definition of Plant Layout
Plant layout is a plan of an
optimum arrangement of
facilities including Personnel ,
operating equipment, storage
space, material handling ,
equipment and all other
supporting services along with
the design of best structure to
contain all these facilities”
(Moore)

22. Layout – Objective of Facility Layout
1. Streamline the flow of materials through the plant.
2. Facilitate the manufacturing process
3. Maintain high turnover of in-process inventory.
4. Minimize materials handling and cost.
5. Effective utilization of men, equipment and space.

23. 6. Flexibility of manufacturing operations and arrangements.
7. Provide for employee convenience, safety and comfort.
8. Minimize investment in equipment.
9. Minimize overall production time.
10. Facilitate the organizational structure.
Layout – Objective of Facility Layout

24. Principles of Layout
1. Principle of integration
2. Principle of minimum distance
3. Principle of cubic space utilization
4. Principle of flow
5. Principle of maximum flexibility
6. Principle of safety, security and satisfaction
7. Principle of minimum handling

25. Type of Layout
1. Process Layout
2. Product Layout
3. Combination Layout
4. Fixed Position Layout

26. Type of Layout– Process Layout
Advantage :
• Flexibility
• better utilization of production facility
• Lower investment
• Increase knowledge of supervisors

27. Type of Layout– Product Layout
Advantage :
• In-process inventory is less
• Decrease handling cost
• Mechanized handling systems
• Unskilled workers can learn and manage the production.
• Manufacturing cycle is short due to uninterrupted flow of materials.

28. Limitation of Product Layout
• Stop entire production
• Difficult to change product design
• Required high investment
• Lack of flexibility
Type of Layout– Product Layout

29. Type of Layout– Combination Layout

30. Type of Layout– Fixed Position Layout
Advantage :
• Interest and pride in doing the job
• Enlargement and upgrades the skills
• Flexibility
• Layout capital investment is lower.

31. An activity relationship chart is a graphical tool used to represent importance of
locating pairs of operations near each other.
Importance is described using letter codes defined below:
A - absolutely necessary
E - especially important
I - important
O - ordinarily important
U - unimportant
X - undesirable
Activity Relation Chart (ARC)

32. Interpretation of the diagram :
To find how important it is to locate
office rooms near loading/unloading
area, find the diamond shaped block
at the intersection of office rooms
and loading/unloading area.
The block contains “O” meaning
ordinarily important. Therefore, it’s
ordinarily important to locate office
rooms near loading/unloading area.
Activity Relation Chart (ARC)

33. Tugas Individu / 1

34. Tujuan Studi

35. Metode

36. Metode

37. Metode

38. Case Study

39. Kesimpulan

40. Tugas Individu 2

41. Tujuan

42. Metode

43. Hasil