Facilities Layout Planning - Lean Manufacturing

Chapter 1 Facilities a in Environment Changing
"The dogmasof our quiet past are inadequate the to stormypresent. our situationis new,we must think As
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Abraham Lincoln
Working facilities are the land, buildings, and equipment that provide the physical capability to add value. This book is about operational facilities used for a wide range of business,government, institutional, and charitable activities. It applies to offices, factories, and fast-food restaurants. appliesto anyfacilitythat houses It value-addingoperations. "business For convenience, terms such as facility" or"factory" are used, although the changing nature of work has blured many of these distinctions. The principles herein apply to a wide range of situations the industrial engineercommonly encounters. Facilities areboth durable and expensive, lasting for decades and sometimes even spanning centuries.A firm's facilities are among the most expensive its possessions. of They represent largestasset the item on most balancesheets. The durability of facilities, their cost, and their primary role in adding value make them an important strategic element. Just as gunpowder made the fortresses of medieval Europe indefensible, changesin technology, culture, and politics can quickly render today's industrial facilities obsolete. Conversely, facilities that adapt to the nature of their competitive environment can be a continuing sourceof advantagefor their owners.
Facilities Planning
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Facilities A Changing In Environment Figure 1.1 depicts the interaction of facilities, organization, products,and processes. understanding, The design,and development of thesevariedelements into a functioning business system referred are to in variousterms.Among theseare:manufacfuring strategy, co{porate reengineering, and business architecture. The importanceof facilitiesdoesnot lie solelyin their cost and durability. They are also the most tangible element of the business system,the element to which everyone everyareaof the business in can relate.They can be a central,common reference the restrucfuring/ for reengineering/strategic debate. Working facilities in modern history Industrial facilities shops that servedthe needsof individual artisans were the industrial facilitiesof the Middle Ages.Thesewere small and centeredaround a singleskill suchasarmoryor saddlemaking. They had simpleand clear arrangements. Duringthe Industrial Revolution,powersources the movement and of raw materials determined faciliry design. Textile mills required streams water power, and cumbersome for shaftsand belts dominated their arrangement. Eady iron andsteelmills werelocatedon waterways, railroads,or mining siteslcoal,iron ore, and limestonetransportation dominatedtheir design. Early large-scale production shopssuch as the pickering piano Factory @g, 1.2) developedin the nineteenth century. These large
Figure 1.2 - The Pickering Piono Factory, Boston, Moss, Circo | 870
Facilities Planning products.At one buildings turned out high numbersof manufacrured time, the Pickering factoryturned out 400 pianoseachday. ofmass-production century, progression the In the earlytwentieth technology required facilities that optimized material flow. The micro-division of labor made skill less important than efficient movementof product. In the secondhalf of this century,information and knowledge beganto dominate industrial production.The educationand skills of As ofthe world increased. a result, the worKorce in industrializedparts industrial facilities must now optimize the coordination of people, and processes, products. Government facilities In the Middle Ages, the most important governmentfacilitieswere Their primary mission was defenseagainst roving town fortresses. The fortified town of Rocroi,on the bandsand neighboringciry-states. Still largelyintact,it is a lasting northernplain of France,is an example. of testimonyto the durability, cost,and obsolescence thesefortresses. New With the adventofgunpowder,battletechnolory advanced. tactics evolvedand armiesbecamemore disciplined.These massive works drained the treasuries many dukes and kings and became of fortresses indefensibleand obsolete.By the time of the Renaissance, Their primary missionwas comfort for the had evolvedinto palaces. inhabitants, as well as the projection of power and prestige. The buildersofmany governmentalbuildings wanted to intimidate potential both foreign and domestic. enemies, Governments no longer can surviveonly through warfare or the threat of warfare.Their constituentsdemand addedvalue in a wide range of human activity. Accordingly, many governmental facilities rather than projection for now arebeing designed efficient operations of power. The United StatesPostalService providesan excellentexample. Post offices built in the early part of this century were architectural landmarks.Their mission was to display the power, stability, and Postalfacilitiesbuilt todayarenear prestigeof the federalgovernment. transportationcentersand optimize mail flow. Their primary mission is the efficient distribution of mail. Knowl e d g e - based fa ciI ities Facilities in which knowledgeis the primary meansof work have always beenmorevariedthan other types.The medievalmonastery, for example)was a primary depository of knowledge in its time.
Facilities A Changing In Environment The church used this knowledge to vie with governments for power and influence. During the Renaissance Industrial Revolution, knowledge and becamean important sourcefor commercialcompetitive advantage. Individual professionals such as doctors,lawyers,and financierswere primary keepers knowledge.Other knowledgeresidedin libraries. of Factories imbeddedit in their facilitiesand processes. PeterF. Drucker was among the first to rccognizethe increasingvalueofwhat he termed "knowledge work." He put forth theseideasin his landmarkwork, The Practiceof Management,in 1955. Knowledge work dependsprimarily on brainpower rather than manual skills or strength. In today's manufacturing environment, most work requiring pure strength of musclehas long been automatedaway.Much of the work that once required manual dexterity has been taken over by computerized equipmentsuchasnumericallycontrolledmachinetools or coordinate measuring machines. Therefore, knowledge the informationbehind and it now havebecomeprimary sources ofvalue in their own right. Many organizationsexist for the solepurposeof processinginformation and distributing it. Their facilitiesshould reflect and enhancethis role.
Facilities a changing in environment

Facilitydesigners havealways workedwith materials, products,processes, information, andpeople. Theirtaskis to arrange workprocesses land on and in buildingsfor optimum performance. This hasnot changedand will not change,but rapid shifts in technology, politics, and culture require a more fundamental understandingand analysisfrom the facility designer.It no longer is sufficient (if it everwas) to copy an assembly just because was successful line it somewhere else. In addition to the long-term trend toward increased knowledgebased work, other trendsofa stretigicnatureareaffectingbusiness. The facility planner should catalyze lead an organization'sadaptation to or ever-changing surroundings. The environmental imperative Harmony with the environmentis an increasingly important business concern that will not go away.Population growth is a principal factor dictating this concern;the spreadof the suburbsthrough increased mobility is another. Organizafionsthat surviveand prosper in coming yearswill anticipateand lead with their environmentalpolicies. Location requirement changes Information is the raw material of the knowledge worker. With the
Planning Facilities
confluence of information processingand communication, the has opened.The ability to distribute vast information superhighway amountsof information makesit lessimportant for facilitiesto locate near the sourceof information. This is similar to the distribution of materialsin an earlier day. As material transportationbecamemore could locatefarther from their sources. efficient. manufacturers Knowledge-based facilitiesnow locatewhere their workerswish to live-often far from traditional industry. Industries that require manufacturers of in specialized knowledgeoften converge small areas: in overhead cranes congregate Milwaukee,Wisconsin;Wichita, Kansas, has a high concentrationofvinyl printers for decorativedecals;and "Silicon plants. Valley" in California is the home for many electronics These changesaffect global facilitiesplanning decisionssuch as site selectionand planning. The changing nature of work their knowledge component As products become more sophisticated, becomesmore important. It is no longer enough to manufacture a variety,frequentchange,and commodity product.Competition demands and product,service, knowledge. distribution systems deliverphysical that Today, individualsseldomwork The natureofworkhas changed. in alone. Knowledge teams are necessary product design, process finance,andevenlaw.Teams,by their nature,requireproximiry. design, Facilities can inhibit or promote teamwork. They can smooth the or operation of complex and etherealknowledgeprocesses they can isolate and preventcommunication. people The socio-technical system have alwaysexisted,although few managers systems Socio-technical Managementthought was recognized phenomenonuntil recently. the werelike machines, that organizations caughtin the Newtonianconcept giant clockrvork mechanisms that ticked away in a predictable, the mechanical manner.Eric Trist ofthe TavistockInstitute developed socio-technicalidea in the early 1950s. Teamwork, total quality (TQ{), and other techniques employee involvement for management system(fiS. 1.3). havetheir roots in the conceptofthe socio-technical The social systemincludespeople and their habitual attitudes, values,behavioral styles,and relationships.It is the formal power strucfure depicted on otganization charts and the informal structure derivedfrom knowledgeand personalinfluence.The technicalsystem procedures, and their physical includes machinery, processes, (layout). arrangement
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Planning Facilities To be effective, the social and technical systemsmust integrate and assistone another.Facilitiesplanning plays a major role in this large wherepeoplehaveisolatedworkstations, integration.Businesses inventory buffers, and few sequential processeshave difficulty implementing teamwork. A manufacturing work cell that requires teamworkwill not producein an environmentof suspicion, extensive individual rewards,and command-control. N on -h i e ra rchi caI org aniz ations Hierarchical organizationswith functional divisions of work evolved from the Roman Legions,the Catholic Church, and medievalguilds. Such organizations are ill-suited for today's work, where the work and where product requiresinput from many functional specialties is coordinationbetweenspecialties a primary requirement' While TqM emphasizescross-functional teamwork, more fundamental reengineering emphasizeselimination of functional structures in the organization This puts special demands on the must constantlychange facilitiesplanner.Non-hierarchicalorganizations volume and product life cycles. in changes business to accommodate In these organizationsthere is less division between traditional managementand labor functions. Many engineersand others who traditionally worked in office areas now have their desks in the manufacturing plant. Many of today's high-tech manufacturing and order than the traditional operationsdemand more cleanliness office. Therefore, facilities must be more open with few walls and changing to barriers.Theyrequire constantrearrangement accommodate work cells and changing team structures. Global business restructurtng reengineering, and facilities and Thanks in part to the changingnatureofwork, global economics, restructuringis occurringin many large-scale technologicaladvances, As organizatrons. a result,many facilitiesthat areno longer contributing to company missionswill close.Other facilitieswill be built. Many reengineered. more will haveproductsrealignedand processes project.It reengineering Facilitiesplanning is often a large-scale elements. aswell as suPPorting is an opportunity to rethink processes can the During a facilitiesplanningproject, designers helpmanagement clarifr missionsand rationalizeproduct lines. Layout is an integral part of reengineering and restructuring. in changes the layout. corresponding requires Meaningful restructuring for restructuring. Conversely,a layout redesigncanbe the catalyst architectureappearaslayout Many symptomsofinappropriate business
Facilities A Changing In Environment or materialhandlingissues. Factorylayoutcandemonstrate needfor the reengineering an organizationreluctantto tearitselfapart and rebuild. to Approaches to facility planning Those who plan and build facilitiestake many approaches. Some are highly organized; othersaread hoc. Examplesofapproaches (fig.7.4) are experiential,masterbuilding, cloning,bottom-up,systematic, strategic. and Experiential In this approach, peopleplan their facilitiesbasedon past experience, common sense,and instinct. In any organization, the experience of senior membersis valuablefor information on what has worked and what has not worked in the past. Otganizations, aswell asindividuals, need this experience function. to A faciliry designedfrom experience taps into the rich knowledge of those who have gone beforel however,experience-based facilities planninghaslimitations.Experience, bydefinition, is based the past, on and new technologyand organizationstructures can make it obsolete. In addition,planningby experience usuallyunorganized. frequently is It is the resultof the memories ofonlyone or a fewindividuals,and others mayhavehad additionalor contradictory experiences. Suchhindrances, aswell as forgotten details, haunt theseefforts. In planning a major facility, experience cannot be ignored but must be gatheredfrom the widest field of experience possibleand appliedwith judgment and discretion. Master building Master building focuseson consrruction and buildings. The final product is often impressive sometimes work of art, but it may not and a fit the operational needs ofthe enterprise. Master builderscanbe found at many levels in both large and small organizations: a company president building a new headquartersor a department manager focusing on technologicalimpressiveness rather than actual needs. Using a building to displayfinancial strength,technological prowess, or artistic accomplishment a legitimateform of advertising. is However, this purposeshould be balanced with other business needs. Cloning Cloning simply duplicates an existing facllity or portion of it. This approach fast.Ifthe existingfaciliryis is provenandifconditions arethe same, this type works well. McDonald's uses cloning to build its "factories" hamburger throughout theworld. For mostfacilities,however,
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cloninghaslimited usebecause sites, processes, peoplearedifferent. and Cloning should be appliedonly when appropriate. Bottom up The bottom-up approachstartswith the details.How many desks? How many and which machines? How many people?From them,
Facilities A Changing In Environment
11
departmentalunits and, eventually,the overall facility plan are built. It is a satisfactory approach the derailsand how theywill be assembled if into a largersystem known, ifthere is time, and ifthe details are will not change.such conditions are often met for smallerfacilitiesin stable environments. Bottom-up planning does not lend itself to new operations strategies. Because detailshaveto be worked out beforefinal design all and construction,constructionlead times areoften too long. On large projects,the detailsbecomeso overwhelmingit is often difficult to maintain schedules. Systematic Systematic layout planning (SLP) usesprocedures, conventions,and phases.It helps layout plannersknow what to do at each step of a project. This provides layout planning with system and strucrure, savingtime and effort. However, many layoutscreatedwith systematic methodology are simply better versionsof what went before. The primaryconcernis how to arrange blocksof space. morefundamental A issueis what blocksof space should be arranged. Strategic The strategic approach top-down. It sets is policy first and arangesthe technology, organization, and facilities to support it. Starting with business and corporate strateg'y suchasglobalsitelocation,it movesto operations strate andfinishes gy with detailslike locarions equipment of and furniture. A strategic approach direct and haspurpose. allowseveryone is It involved in the project to follow a common direction. Used alone, however, strategic direction is insufficient. It does not tell faciliry designers and thosewho usethe facilitieswhat to do. FacPIan The FacPlanmethod combinesthe best of variousapproaches. has It systemand structureand adds strategicdimension. It taps into the experience and knowledgeof thosewho usethe facilities.It can work from detail to generaland vice versawhen appropriate. FacPlanusesa hierarchyof detail levels.It focuses strategic on issuesat the appropriatetime and minutiae at the appropriatetime, usinga modelprojectplanto guideandsrrucrure each project.Procedural flow chartsguiderheplannerthrough eachtaskand assistwithdecision making. Charts,forms, and designaidscontributeto the organization of information.
12
Facilities Planning
The industrial enginee/srole in facilityplanning

in their designers a unique role offacilitiesplaces The central,strategic position. Industrial engineerscan assumenarrow roles as technical and or equipment arrangers they can take broaderroles as educators gic catalystsf or or gan\zationalstrate debate. The latter requires more than skillsin layoutdesignand technical well-developedinterpersonalskills, procedure.Strategicperspective, are patience,and understanding alsonecessary. toolsindustrial This work provides insight into the basictechnical engineers need for facilitiesplanning. The broaderskills will reguire nce, insight, maturity, and education. experie
Chapter2 The Framework for Facilities Design

The completedesignof a facility requires work from many disciplines within an organization: sales and marketing, purchasing, human resource accounting, s, and more.More visibleis the work of architects, structuralengineers, process engineers, and management. Architects and structural engineerscheck soil conditions, building codes,and infrastructure, detailingthe structure,appearance, internalsof the and building andsite.Process engineers mayplantheproductionprocedures. To guide and coordinateall theseefforts, managementsetsstrategic policies. Industrial engineers alsoplay key roles.They often managerhe overallproject and report to top management, and they may perform someor all of the abovetasks.Most importantly, they plan the useof space. Thesespace plans,atvarious detaillevels, become centerpiece the for coordinatingthe entire project. The levels of spatial design Layout, or space planning, is the centralfocusof facilitiesdesignand dominatesthe thoughtsof most managers. factoryor office layout But is only one detail level. Ideally, a facility design proceeds from the generalto the particular-from global site location to workstation. Larger strategicissues decidedfirst. are It is useful to think of space planning in five levelsas shown in figure 2.1. Figures2.2 through 2.6 show qpical ourputsat eachlevel. These range from the global maps of site location to engineering drawingsof tools and workstations.
14
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The Framework Facilities For Design
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Level I -Global site location During global location,the site location level,the firm decides where to locate facilities and determinestheir missions.A facility mission statement is a concise summary of products, processes, and key manufacfuring tasks.A facility rarely canperform more than two or threekey manufacturing tasks well. The missionstatement therefore is an important guide for facilitiesplannersand others as they consider variousdesigntrade-offs. Other outputsat this levelusually includea reportto management. For multiple sites,mapsshowing site locationsand customeiactivity are common. Figure 2.2 illustrates. The cost of spaceplanning at Level 1 is small. Global location usuallyinvolvesa few top executives one or fwo industrial engineers and or consultants.Each level below requires more and more people, analysis, and detailedengineering. Yet, the corporatebudget pro..r, frequentlydemands that all significantplanning be delayed urriil uft., a decision madeto proceed is with siteacquisition. Thoselevels with the
Proposed South American Plant Site Specification Contents 1 .O Mission 2.0 General Requirements 3.0 Land Features 4.O Building 5.O Transponation 6.0 l.ltilities 7,0 Labor 8.O Communlty 9.0 SupplleG 1O.O Environmental
Mission Statement Midwest Plant & Warehouse
Mission Statement Brussels Warehouse

Mission Statement Shenandoah Plant
The Shenandoah Facilitywill manufacture the Elite product line for high volume customers in the Eastern United States. lt will strive to be the primary supplier for our industry for high quality OEM material.
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Figure 2.2 - Level | - Site Location
16
Planning Facilities
most strategicimpact and the lowest planning cost receivethe least with the most strategicimpact the attention. Consequently, decisions are sometimesmade with the least reliable knowledge. Overall businessstrategy is most important at the global level. Determining the number and location of sitesrequiresfar more than simply searchingfor the lowest labor rates and largest tax breaks. Available labor skiils and attitudes toward work, supporting services andpolitics,andsometimes suchastool productionandmaterialsupply, if For be major considerations. example, a plant must also geopolitics, is located in the wrong countr/r it may becomea geopoliticalpawn. Technologicalprowesscould then shift to other regions.If there is political instability locally, it can destroy a firm's ability to produce. Suchproblems or might be depleted replaced. Important raw materials are not easyto correct. Appropriate planning resultsin facilitiesoptimized for the markets and located near the most important resources-resources that, increasingly,involve knowledge, skills, and infrastructure rather than raw materials. Level 2-Supra-space plan At the supra-space plan level, site planning takesplace.This includes suchas number,size,and locationofbuildings, aswell asinfrastructure roads, water, gas, and rail. This plan should look ahead to plant and eventualsite saturation. expansions The documents from a site planning project almost always include a site drawing (fig. 2.3). Frequently, they involve a seriesof drawings showing past, present,and future configurations (there may be severaloptions for these).A major site study also might include and narrativeson site history and descriptionsof the considerations rationalefor the site plans. At this level, planning still has long-term and far-reaching Awell-designed infrastructuresupportsfuture expansion consequences. or conversionto new products.Proper location and building design in provide for logical expansion suitableincrements. Level 3-Macro-space plan At the macro-spaceplan level, a macro-layout (fig. 2.4) plans each building, structure, other sub-unitof the site.Usuallythis is the most or important level of planning, for it setsthe focus,or basicorganization, define and locateoperatingdepartments of the factory.The designers and determine overall material flow. may resultin new-productflexibility, Macro-space plan decisions
The FrameworkFor Facilities Design
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Figure 2.? - Level2, Site Plonning Master Site Plon, Shenondooh Plont, Stonewatl Corp.
lower costs, high quality,or a flexiblelabor.Fundamentalmacro-space plan decisions usually easier correctthan site-level are to decisions. Still, a poorly plannedfacility canbring high handling costs,confusion,and inflexibility. These problems, in rurn, can causedifficulty in launching new products, erratic deliveries,and too much inventory. Correcting such problems may require a complete rearrangement with major investments process in equipmentand infrastructure. Level 4-Micro-space plan The location of specificequipmentand furniture is determinedin the micro-spaceplan. The emphasisshifts from gross material flow to personal spaceand communication. Socio-technicalconsiderations dominate.Ifproduction teamsareanimportant elementofthe operations stratery, the work at this level may inhibit or discourageteamwork. Figure 2.5 showsa space plan for an operatingdepartment.
18
Facilities Planning
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Figure 2.4 - Level 3, Mocro Loyout Project Report Mocro-Loyout ond Moteriol Hondling
Level 5-Sub-micro-space plan Individual workstations and workers are the concern of the fifth level. Here, workstations aredesignedfor efficiency,effectiveness, safety. and Ideally, the industrial engineerplans for the correct tools in the most appropriate places,using fixtures that properly hold the work piece. Materials are introduced at optimal locations and large items are providedwith appropriatematerial handling aids.Sometypical outputs are shown in figure 2.6.
TheFramework Facilities For Design
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Facilities Planning
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The Framework Facilities For Design
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Levels 4 and 5 are the more detailed levelsof spaceplanning; therefore,equipmentand issues more localized.When.h"rrg., "r" are necessary, thereis usuallyless danger ofmajor productioninterruptions. The phasing of space design Ideally, design progresses from the global level to the sub-micro level in distinct, sequential phases. the end of eachphase,the designis At "frozen" by consensus. This seftlesthe more global issuesfirsiand allows smoothprogress without continuallyrevisiting unresolvedissues. It also preventsdetails from overwhelming the prolect. Figure 2.7(A) illustrates this logicalprogression showsthe strategic and impact ofthe work in eachphase.Strategicimpact affectsthe long-term ab1fityof the firm to competeand profit. Industrial engineers rarelyhavethe opportunityto design afacility . in accordance with the normal phasingshown in figure 2.7(A).There are several reasons this. Sitesand buildings that haveevolvedover for manyyears outlive technologies their original purpose,and therefore and must be rearranged. Another reasonmay be management's belief that the existingspace plan is simply not optimal. In both cases, planning
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22
Planning Facilities
this. The plan level.Figure2.7(B) illustrates beginsat the macro-space in phasingdemonstrated figure 2.7(B) alsooccurswhen management without the benefit of adviceand decisions makesglobal and site-level their facilitiesplanner(s). counselfrom plan The size and organizationstructureof cellsin a macro-space This are and when processes strategies untried. may be indeterminable when firms makea transitionfrom functionalto cellular often happens to Pilot cellsmust then be developed provethe concept manufacruring. plan A cell or micro-space or technology.Figure 2.7(C) reflectsthis. (Level4) then becomes first phase. Upon completionof this pilot, the can shift Then the designer peoplecan agreeon the generalapproach. back to Level 3 and prepare a macro-spaceplan. The details of remaining cellsare definedin their optimal sequence. in The phasingdemonstrated figure 2.7(D) is common for large office layout projects. First, the details of workstation layout are and equipment space This may comefrom standardizing established. for in a hierarchy.Secretaries, example, position on based eachperson's workstation with filing spaceand word may get a 175-square-foot getsa 11O-square-foot while a GradeI engineer equipment, processing cubicle. From the cubicle and a supervisor,a 15O-square-foot for the forecasts, space eachdepartment and staffing organizationcharts At can betweendepartments then be developed. and the arrangement this point, the project movesupward in detail to the global or' more commonly, macro- level. and levelsis the ideal approach. the Separating work into phases the plan there may be someoverlap.For example, space Nevertheless, previouslydecided of a particularwork cell may not fit the boundaries in the macro phase.This may then require minor changesto the plan. For theseand upon macro-space and agreed previouslydesigned phasingshould be flexible. other reasons, of in Proper phasingshouldbe considered the earlieststages the and certainlybefore any project, perhapsafter the initial discussions significantwork effort begins.Here are someguidelines: ' work from the most generalto the most specificlevel (highest to lowest)unlessspecialconditionsdictate otherwise; ' clearlycommunicatethe phasingplan to all participants; ' resistthe temptation to jump aheadbeforea particularphase is complete; ' obtain agreement the plan for eachphase beforemoving on on to the next phase;and ' rccognizethat there may be some overlap between phases.
23
The spaceplan elements

Every spaceplan at eachlevel has four fundamentarelementsand two derived elements.The fundamental elementsare: space planning units and qPys): ffiniyies, spa-ce, constraints. When developinga spaci plan, i the desgnersfi rst define andidenti$' SPUs.They th.r, .rrJrr"t. "ffi nities. using the affinities,theyjoin SPUsto form oneor morc afi ni ty diagrams. The affiniry, or configuration,diagramis the first ofthe derivei eleirerrts. Space addedto the configurationdiagramproduces space primitire, a plan the second derived element. constraints applied io tit. space plan primitive producethe space plan. Figure 2.8 showsthis progression.
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Figure2.8 - Elementsof o Spoceplan
24
Planning Facilities
The conceptof fundamentaland derivedelementsis valid at all However,it is mostusefulanddirectat the macro-andsitelevels. levels. The chaptersthat follow explore its application. Space planning units At plan designers. the macroby SPUs arethe entitiesarranged space (The syste matic layout planning ISLP] referredto ascells. level,they are area.)Acell mightbe aworkdepartment' usedthe term acti'uity system a space, building feature,or a fixed item. Each cell initially is a srorage nted by a symboland identifier. represe Nlost of thesesymbolsaretaken from ANSI Y15.3M-1979,the American National StandardsInstitute standardfor processcharts, which show the tlpe of activity that acts on a product. For space dominant activity the planning,the symbolthat bestrepresents space's and color codes' their meanings, Figrrt.2.8 showsthe symbols, ir rrsed. operation,transport,inspection, represent The standardsymbols delay, and storage.For spaceplanning, t'"vo additional symbolshandling and product cells-are added. The handling symbol designatesareasused for repackaging,transfers,or other elements that are partly transport and partly operation. The product cell spaceused for multiple activities on a single product or designates small group of products.The definition of SPUs is one of the most strategictasksin facility planning. This definition decidesthe basic organtzation of the factory. Affinities betweenany nt Affinities represe variousfactorsthat demandcloseness plan. For example,communication or personal two cells in a space interaction betweenworkers might give riseto an affinity. Affinities are rated using a six-level scale,with numerical valuesranging from +4 to -1. The scalehasfour positivelevelsthat mean sPUs shouldbe close. Suchhigh-value affinities may resultfrom frequent material movement the between cells.Negativeratingsmeanthat the SPUsshouldbeapart. There alsois a neutral rating, 0. A vowel scale,A-E-I-O-U-X, may also be used for rating "A" wasfirst popularizedby Richard Muther. Here, affinities; this scale "IJ" a represents neutral affinity, representsthe highest affinity rating, "X" The has affinity. This scale a mnemonic advantagei, " rregative "nd as vowelshavecorrespondingword associations illustrated in ft gute2.9. the Chapter 3 discusses methodsfor evaluatingaffinities. Figure 2.9 showsthe affinity conventionsdevelopedby building on the original SLP system.The multi-line representationworks well
Design The FrameworkFor Facilities
25
Vowel Scalar Manual CAD Descriptlon Rating Rating Graphic r a p h i c Color G
Absolute
2
/ /
, / /
Red
Exceptional E l m p orta n t O r d in a ry
I
3 2
1
Yellov
Gr een Blue
U Unimportant Apart
0
N/A
(None)(None) None) (
Black
Figure2.9 - Affinity Conyentions
for manual graphics.On many CAD systemsand other computer graphicssoftware,it is easierto usevarying line widths, gray scales, and color. When color is available,it dramatically illustrates the nature of the affinity network. Figure 2.10 shows the typical range of affinity distributions for macro- and micro-layouts. Affinity diagrom SPUs combine with affinities to form an affinity diagram-the first of the derived elements. This diagram is an idealized spatial arrangementthat eventuallybecomesa spaceplan. In the diagram, symbolsrepresentSPUs and lines representaffinities betweenthem. A single line is the lowest value affinity and a four-part line is the highest.Squigglylinesrepresent negative affinities.Theseconventions are illustrated in figure 2.9. Using an iterative process,the designermanipulatesthe diagram to create an optimal or near-optimal arrangement. A near-optimal arrangementhasvery short high value affinities at the expense oflower
26
Facilities Planning
value affinities.It minimizes the crossingof affinity lines Figure 2.11 illustratesthe iterative improvement of an affinity diagram. It is interestingthat many computerizedplanning systems when, in fact, it is the part ofthe layout this specific process emphasize to process which computersare leastsuited. Space requirement.Some SPUs may require Each SPU has a unique space onlv a few squarefeet, while others may require tens or hundredsof of feet. thousands square requiredchanges with each The natureofspaceand the calculations "elastic,"and the calculations is pianning level.At the higher levels,space space be morerigid can At maynot needto be asaccurate. the lower levels, but alsolessdefinite. For example,a particular machineor deskrequires cannotmakeit fit in lessspace. andthe designer acertainamountofspace, In other instances,a piece of equipment may require a certain type of because has a peculiarshape,such as a U. But, under certain it space conditions, other items may alsofit in that U shape.
50o/o
40o.h
20Yo
10o/o
0o/o
Figure2.10 - Usual Affinity Distribution
27
Thespaceplon primitive
When space addedto the affinitydiagram,it distortsthe diagraminto is the space plan primitive. It is an idealizedrepresentation doesnot and include designconstraints. Constraints Design constraints thoseconditionsthat limit an ideal space are plan. Such constraintsmight be building size and shape,columns, floor loading, utility configurations, externalfeatures, and many others. Space plan The fusion of a space plan primitive and constraints producesa space plan. Several viablespace plansshouldemerge. setof cells,affiniiies, A and constraints may give rise to severalequally valid configuration diagrams primitives.Eachoftheseprimitivesmayresultin multiple and macro-space plans. The nature of the design problem precludesan optimal space plan, exceptin the simplestsituations. The designer's experience a key factor, for it helps him or her is decidewhich configurations havethe most potential.It helpsscalethe myriad of possiblespace plans down to a reasonable number. Figure2.11illustrates complete the progression from fundamental
Figure2.1I - Optimizing o Configurotion Diogrom
28
Facilities Planning
to affinities,and constraints the macro-space elementsof cells,space, are and the progression valid for any sizefacility plan. Theseelements and at any level. The design project plans are simple;executionof the tasks The elementsof facility space requiredto developthem is not. Rarelydo the tasksneatlycorrespond to the developmentas describedabove.At each level of design,the approach changesto accommodatethe amount of detail, available information, and the dominant issues. At each level, an approachthat fits a wide range of projects and projec*.With minor These are calledmodel siruationscanbe developed. plan, for example, variations,the model project for a macro-space regardless size,complexity, of plan appliesto almost any macro-space or industry. Similarly, the model projects for cell design and site planning apply to almostany cell designor site-planningproject.The methods,formality, and time requiredvary according scope, resources, are and complexiry. The sequence, procedures, deliverables to sizeand constant.Model projects for each level of design can be essentially foundin Chapters 3,4,5,6, and7.
Chapter3
TheMacro-Space-Plan
The macro-space-plan often is the mosr important level of facility planning. It sets the fundamental organization of the factory and patterns of material flow with long-term effects. From personnel turnoverto qualityto delivery,the macro-space-plan influences almost every measureof facility and organizationperformance. Done well, it is a platform for reengineering business. canforce It reexaminationof markets, products, and processes. can achieve It quantum improvementsin productivity and profit. It can position a firm for profitability and growth. Done superficially, it can leave real issues unquestioned. This chapterexplainshow to designmacro-space-plans using a structured,step-by-step approachthat resultsin a near-optimalspace plan andwide acceptance ofthe results. This approach severalparts: has conceptual projectp/ans, taskprocedures, conventions, frametuork, model and designtoolsand aids. Chapter 2 introduced the conceptualframeworkwith its levelsof detailthat narrowthe projectto a manageable level.Thesefundamental and derivedelementsshow how a space plan dwelops. Arranging the levelsin phases helpsplan the project.In the pages that follow, macrospace-planning-one of the more important phases-is examined. With a model project plan, tasks are arranged.Procedure diagrams illustratehow to conducteachtask.The technicaltools and other aids providethe means completeeachtask.Figure3.1is the modelproject to plan for a macro-layout. showsthe requiredtasksand their sequence. It This model evolved from the systematic layoutplanning (SLP) approach developed RichardMuther almostthirtyyears ago.It hasbeenused by
30
Planning Facilities
for hundreds of projects and sufficesfor almost any size and type of From project to project, the depth of analysis macro-space-plan. and along with the methodsfor eachtask, the resources) the changes a a time. Occasionally, projectrequires few additionaltasks.However, remain the same. the basicstructureand sequence Each task has a two-part identification number.The two digits The digits followingthe decimal beforethe decimalshowthetasklevel. Task03.04,for example, task,roughlyin sequence. identifythe specific macro-space-plan. is the fourth task at Level 3, the The tasksofthe modelprojectoccurin threedistinctgroups:data and layout planning.Thesegroups acquisition,strategydevelopment, are nearthe top of figure 3.1. Two tasks,03.01 and 03.27,areoutside thesegroups.Task 03.01 startsthe project,with plans for activities, ofthe preferred Task03.21is the actualselection timing, andresources. the lavout option. It closes project and allowspreparationfor Level4, the micro-space-plan. A procedurediagram is provided for some tasks.For example, figure 3.3 is the procedurediagram for Task 03.02. Such diagrams are required.These procedures illustratethe logic flow and sub-tasks the third sometimesiterative.Most early layout models emphasized takesplace.Of course,this task group, where geometricarrangement is important, but far more important is the determination of what the to spaces arrange.The definition of theselayout cells establishes organizationof a faciliry'swork. Embodied in cell definition, it has far more impact on facility performance. through their first layoutsusing Figure 3.1 alsoguidesdesigners in the systemdescribed this chapter.The designtask at hand should always be the central focus and any temptations to jump ahead prematurelyto other tasksshould be resisted.Completed tasftsalso on concentrate the should not be revisited.Figure 3.1 helpsdesigners If current task, its procedurediagram, and specificdiscussions. each plan will take shapeand the the task is done in proper sequence, space project objectivewill be reached. throughout the organizationinformed It is vital to keepmanagers best suited to the a during the entire planning process, responsibility designer. Many facility projects result in fundamental changes and Managersandothersneedtime to learnnewinformation restructuring. and form newviews.If they arenot kept informed and involvedin the will and consensus not be agreement process, learning and reasoning This could resultin the rejectionof an excellentlayout. achieved. formal and informalways ofinvolving managers. There areseveral and Formal methods include using a steeringcommittee to oversee
The Macro-Space-Plan
31
review progressand adding update meetings to the model project. A kickoff meeting can follow Task 03.01. During such a meeting, key members of the organization could review tasks and confirm that resourcesare available.An additional meeting, at which time factual datawouldbepresented a non-threatening in manner,might followthe
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Figure3.1 - Macro-Spoce-plon Model Project
32
Planning Facilities
data acquisitiontasks. A formal meeting is valuablefor developing operations strategy builder. Agreementand commitment andcanbe an important consensus to the operationsstrategyarevital for later agreementon a faciliry plan. plan options,is also of Task 03.21, the evaluationand selection space Extensive interviews and informal a good consensusbuilder. and othersthroughout the organization with managers conversations are alsoimportant.
IntroducingCosmosProducts
Cosmos Productsis the companyused as a model in this chapterto Cosmos offacilitiesplanningat the macro-level. illustratethe processes Products convertshigh-grade vinyl film into decorativematerial. The markets,and firm hastwo broadproductlineswith differentprocesses, material in many distribution channels.Roll products-pin-striping colors, patterns,widths, and combinations-sell in the automotive that productssellto manufacturers usethem aftermarket.Custom sheet labels, logos, and decoration.Manufacturersof campers'boats, for Cosmos chain saws,and agriculturalequipmentaretypical customers. Custom productsare the often prepares artwork for thesecustomers. of flat sheets materialwith imprinting, adhesive anda paperbacking. , Cosmos Products started as a small operation about twenry-five rate yearsago.The firm hasgrown significantly eachyear at ^n average this of 22percent.To accommodate growth, therehavebeena number of additions to the current faciliry. In recentyears'managementhas itself in too much inventory' difficulty that hasmanifested experienced and generalconfusion. shipping delays, the The company'scurrent project is reengineering faciliry and are The relatedDrocesses. obiectives to: reducematerialhandling costs; reduce'operating .orrrl i-prove delivery performance; irip.or'. teamwork, communication, and quality; allow for new products; 1998production;and deliverthe projectunder a budget accommodate of; committeefor this projectconsists O. W. The steering of $800,000. offi Holmes, presidentandchiefexecutive cer;J. Marshall, chieffinancial officer; W. Burger, vice president,operations;and E. Warren, vice president,salesand marketing. "Plan Project,"develops specifi projectplan.Developing c a Task 03.01, In demandssignificantresources. this step, a soundmacro-space-plan is the dispositionof thoseresources mappedout. The model projectin figure 3.1-works for almost every macro-space-planproject, whether
Planning project the
33
large or small. Small or simple projects may need lessformality, rigor, the and documentationthan largeror complexprojects.Nevertheless, of essentials eachtask must be done. for the Step 1 establishes key decision-makers the project.After they are interviewed and their objectivesare established,the time and neededfor each task should be defined. With the above resources then plansthe project.Project information and the model,the designer planning software is useful for this task, although for most macroa space-plans, simpleGantt chartwill suffice.Figure3.2 is the schedule for for a new macro-space-plan CosmosProducts. In addition to statementsoutlining tasks, elapsedtime, and for responsibility,the deliverables each task should be identified. A deliverableis a tangible output for the task. A written summary of findings is a valid deliverable, as are a material flow diagram and "IJnderstand material flow" is not a physical infrastructure checklist. there is no way to see' measure,or judge valid deliverablebecause completion. The designer should confirm that these deliverables proceeding. the accuratelyreflect intentionsofkeydecisionmakersbefore "Plan are Project,"the deliverables a task list, a For Task 03.01, Gantt chart, and a summary that includesthe project objectives.A PERT chart is usefulbut not necessary. size The typicaltime frame for completinga projectof Cosmos's is about forty working days. Almost half is used for and complexity information acquisition and strategy.This provides a firm foundation for the layoutsto follow, therebyeventuallyreducing total project time. it because to difficult for impatient managers accept This is sometimes However, far lesstime is spent takeslonger for a spaceplan to aPPear. for on changesand debate.Moreover, a consensus the plan is more likely when all participants have been through the information and strategJstages. Information acquisition tasks Once there is approvalfor the project plan, the first setof tasksinvolves the gatheringofirrformation,both quantitativeand qualitative,needed to developsound macro-space-plans. This phasehas anotherpulposethat may be more profound and throughout the organizationand asking lessobvious:raising awareness difficult questionsthat manyin the org anizationmaynot haveconsidered and consensus ofbuilding suPPort At previously. this time, the process for the outcomeis begun. In addition to analysisskills, spaceplan designersmust have an Consensus psychology. of understanding individualand organizational
34
Facilities Planning
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Figure3.2 - Focility Re-Engineering
35
meanstime andcommonunderstandings mustbeginearlyin order that to bear fruit at the end ofthe project. Product-vol ume ana lysis Product-volume (P-!) analysisexaminesthe current and future time frames for the products and their volumes.This analysishelps the designer understand relationships the between variousproducts.Highvolume and low-volume products,for example,may require different equipment and production modes.The analysisalso defines future requirements, helps selectthe best planninghorizon, and allows for changes beyondthe immediatespace plan. The results the P-V analysis of provideimportant input for many later tasks,and, therefore,should be completedearly in the project. Facility designersthat have been long-time employeessometimes believethey know the products well enough to skip this task, but this is not recommended. The procedure diagramfor product-volumeanalysis in figure 3.3. is Block 1 documents gathering the ofinformation.This maybeaccomplished in the following ways:visually examining a range of finished products; reviewing salescatalogsand other information for an overview of the product line; and interviewing salesand marketing people. It is also important to obrain overallsales volume history (usually,five to ten years is adequate). Where marketsandtechnologies changingrapidly,tvyoto are threeyearsmay be a more appropriate time frame. Salesforecastsfor the following five to ten years should also be requested. absence this information indicates An of uncertainty.It may requiremultiple contingencies the faciliryplan. Unfortunately,sales in peopleand other managers may be unwilling to commit to a forecast. In such a situation,high, low, and optimistic forecasts could be asked for, with the explanation that they are needed for facility planning purposes and extremeaccuracy unnecessary. is A requestfor a salesforecastmay touch off a flurry of executive activity because the requestedinformation may nor exist or may be questionable. Generating the numberswill help build management awareness. is sometimesthe beginning of an important strategic It debate that ultimatelyleadsto betterfacility plans.This debatealsocan lead to important and profound changes management in thinking. In Block 2, the forecastdata is plotted on a line chart along with sales histories. they areavailable, If oprimisticand pessimistic forecasts should alsobe added.After examiningthe chart,plotting a regression line like that in figure 3.4 may be helpful. Where seasonality a is concern,a separate chart could be usedto show monthly sales the for
36
Facilities Planning
past two to four years. Visual presentationis more meaningfulthan a list previouslyunrecognized trends. ofnumbers. A simplechart often reveals grouping. In Block 3, the productsare examinedfor appropriate If the facility will only produce a few products, such grouping is Most facilities, however, havemanyproductsorvariations unnecessary. in anywhere from three to fifly groups. Preferably,thesegroups have as common manufacturingcharacteristics well ascustomerrequirements. the distribution channeldeterminessales groups. Sometimes During this task, the groups may have either a marketing or manufacturing the orientation,orboth. A marketingorientationmeans items within a group are similar for the customer.A manufacturing orientationmeans itemswithin agrouparesimilarformanufacturing the purposes.These groups m y or may not be the same. Sometimes
2 GroupedProdud ftofile . Dollars . Pi@es . OtherLhib
Figure3.3 - Tosk3.01, Product-Yolume Anolysis
37
Thousands
40 35 30 25 2A 15 10 5 1 9 8 71 9 8 8 1 9 8 91 9 9 0 1 9 9 1 1 9 9 2 1 9 9 3 1 9 9 4 1 9 9 5 1 9 9 6 1 9 9 7
0 8&g&'1!$3ra1q" -lrf*f+,1f.::rr::at-t:ii':t,:-rilir:a*ia i::s.::::.": trr:::ll: . rt:...r.:::r'.-i::'- :. l
Figure 3.4 - Soles HistorylForecost
operationspeopleadoptproduct groupsoriginally devised marketing. by This can complicatethe manufacturingprocess unnecessarily. Once the groupshavebeendetermined, groupedproductprofile a shouldbe prepared. Sucha profile takesthe form ofa rankedbar chart showingsales volumefor eachgroup(fig. 3.5). Sales volumeis measurable in dollars,pieces,or other convenientunits. Several profiles showing different units suchastons or palletsmav be helpful. A secondv-axis on the chart showscumulativepercentage. A more detailedproductprofile, Block 4, alsomight proveuseful. There aresituationswhen a product group hassignificant sales volume, but individual products in the group have few (or no) sales. The forecasts P-V analysis and becomethe agreed upon basisfor process design,space requirements, storage requirements, material and flow analysis. is important to confirm the forecasts It and other P-V datawith managers and especially with the key decision-makers. The P-V analysis can assist with the development of the manufacturing strategy. High volume and low variety suggesthighspeed production line equipment. Low volume with high variety suggests functionallayout.High varietyand a wide rangeofvolumes a suggest cellularmanufacturing. Seasonal variationnecessitates specifi c strategiesfor inventory and capacity. The section on manufacturing
38
Planning Facilities
will explore theseissuesmore fully. strateg'y A few short paragraphsor bullets can summarrze the findings from the P-V analysis shown in figure 3.3, Block 5. as Figures3.3through3.5illustratedeliverables forthe Cosmos Product Volume Task The following is its P-V summary,anotherdeliverable.
: sum CosmosProductsProduct-volume mary

The 22 percent growth rate is expectedto slow somewhat during the next three years.The 1997 forecastvolume of 35,000 units will be the first faciliry planning horizon. Cosmoshas about 10,000line items in the product database. Theseareinl92 groupsaccordingto significant feafuressuch as basematerial, color, and width. Thirty-four groups lessthan represent percentofsales.Ofthe 192 groups,63 generate 80 $200 per month of income.We may have significantopportunity to ntionalize the product offering or modify our inventory policy. Existing process analysis "Existing Analysis," involves Task 03.03, Process trackingworkproduct activity,or the sequences which outsideentitiesacton anorganization's in work product. For manufacturingspaceplans, the work product is usuallya physicalproduct.In other space plans,the work product may be intangible such as an information packet.In a hospital, the work product may be a patient. currently in place. Existing process analysis documentsthe process However,ifthe product is new,suchaprocess may not exist,and a similar
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Figure3.5 - Product Profile
39
product and process shouldbe studied.Ifboth product and process have no current benchmarks,an initial proposal for the processshould be selected. The eady completion of this task creates reference a point for process improvementsand a space plan. The space plan designerusually performs this task with assistance from production people.This brings detailedknowledgeof actualfloor operationsto the process. Figure 3.6 showsthe procedure for analyzingthe existingprocess. _ one or more flow processcharts are constructedduring ihis task. Modified ANSI conventions(seefig. 3.7) areused in this charting system, wherebysymbolsrepresentdifferent typesofevents that involve a work product. The operationsymbolmodifies the work product in a way that advances towards a finished state. The transp,rt symbor it shows a physical movementofthe work product-usually a significantdisrance, such as ten feet or more. The bandling symbolrepresentssorting, positioning, or some other short movement. Inspection checks for quality. The delay symbolrepresents something that halts the process for a time. Often, this is a work-in-processstaging. Storageis a longer wait, usuallyin a designated areawhere the location and material have records. A short horizontal line at the beginningofthe process showsitemsfrom suppliers outsidethe process under study. vertical lines on the chart show the sequence ofivents. Horizontal arrows show where severalitems of work product merge. Text to the right of eachsymboldescribes event.These notesalso the might indicate time,the numberofpeople, orother relevant information. Process chartsand materialflow chartsshould not be confused. There is a notabledifference. with process charts,the symbolsarenot locationsor workstationsor even machines.only the text has who, what, and whereinformation.The linesdo nor represent movementof the work product; instead,they represent only ^ ,.qu.rr." of events. Constructing the chart(s) meansgathering initial information beforehand;this is illustratedby Block 1 in figure 3.6. Some of this comes from the P-vanalysis(Task03.02)and somefromlookingatthe process and talking with knowledgeable people; Block2 (fig. 3.6) of the procedure beginsaddressing question the of how many and which products to analyze.It asksif theie areproduct groups with similar processes. The answer should be basedon the observations and knowledgecurrently available. Somesituationsmay presentthousands tens ofthousandsofproducts. or A definite answermay nor be possible without extensive analysis, w-hichis unnecessary this point. Suppose, example,an injection at for planning facility were being planned.The plant supplies67 molded
40
Facilities Planning
This givesa total of 7,273 itemsbut eachitem comesinany of 79 colors. item, or SKU, numbers.However, the plant usesquick color change For equipmentand hashonedtheir skillsin colorchanges. manufacturing can make any given purposes,color is not a differentiator. The molders of piecein any color or a succession colorswithout difficulty. The 19 colors of eachpart would therefore be grouped asif they were a single product. If suchgroupscannotbe identified, Block 3 is the next steP. Block 3 asksif there arefewer than2i products. If there are,each
Process Chart
Figure3.6 - Task 3.03, AnolyzeCurrent Process
41
item is charted. For more than 25, a charting sampleof 5 to 25 items should be selected.This is Block 4 or Block 10. Product groups identified in Block 2 are treated similarly, resulting in Block z. Simpty substitute groups for individual products in the processdescribed. There are severalmethods of preparing the charts. For a simple process' personalobservation enough.If computerizedroutings are is available,they may be used.A personalinterview with someonJwho knows the processwell is sometimessatisfactory.usually, however, a group approachshould be used.It caprures wide rangeofopinion and a knowledgeand helpsbuild consensus the chart aswell asfor the later for space plans. The group approach garhers the mosr knowledgeable people _ available.Together, they construct a chart that follows the matirial or item and records events that affect it. People often have difficulty distinguishingthe product or item, workers, and machines.To help with this, they should imagine they havebecomethe product and have assumed role. They should then report their experiences. its All elementsshould be recorded.Frequenth. there is an ,,official" process documented routingsand a computeidatabase. on Then there is the "unofficial" process-what really happens.unofficial erements may include set downs, queues,and repairs. The group may wish to include other information on the chart such as processtime or cost. when this is complete, the group should make further commenrs, particulady about which processelements are troublesome.some additional questions bring out important process to issues are: . Which elementsgenerate most quality defects? the . Which elementsare most difficuit to set up? . Where are the largestinventory buildupsl . Which elementshave the most scheduling difficulry? . Which elementsdemandthe most labor? The analystguides the group during this task by deciding: . the level of detail for processelementsl . the number of products to chart; . whether and how to group products; and . whether and how to group items that go into a product. To tally a count for eachf'?e ofelement, the percentage oftotal elements is calculated.These could be charted on a bar or pie graph. Only the operation symbol addsvalue.All other elementscontribute only cost or time. The percentage ofvalue-adding elementsis calledthe valueadded index(vAI). vAIs frequentlyare intherangeof 20 to 30percent. Awenthougtrt-out process should have a VAI of at least60 p-r.ent: Next, a short summaryofthe resultsshouldbe pripared. The flow
42
Planning Facilities
charts,elementprofiles,and written findings are deliverables. process summary: The following is the Cosmosprocess
processsummoty Existing CosmosProducts:

The valueaddedindex (VAI) for roll productsis 13 percent'The VAI Theseareboth quite low. There productsis 20 percent. for commercial transport'handling, numberofopportunitiesto reduce area substantial and storageelements. require specialequipment' This In ro11 products,the processes times rangefrom five Changeover equipmentis relativelysmall scale. to forty-five minutes. is scale verysmallin the manual process products, For commercial on Die-cutting operates a medium scale. at operations pick-and-pee1. We may wish to investigate presses. Silk-screeninguseslarge-scale for smallerscaleprocesses silk-screening. all Slit-and-sheetoperations usea singleslitter that is quite fast. Both commercialand roll productsusethe samematerial.Optimizing the use of each roll savessignificant wastage.It seemsto dictate et continueduseof a common slit-and-she ^tea for all products. The processcharts for Cosmos Products arc fairly simple. In figure 3.7 showsthe process addition to the modified ANSI conventions, for one of Cosmos'sroll products-a vinyl stock material for signs and for other decoration.Figure 3.8 chartsthe process a multi-color, die-cut These atypicalproductfrom oneofCosmos'scommercialmarkets. decal, outdoor equipment.This single decalsdecorateautomobilesand other thousanddistinct products. several chart represents it With complexprocesses, is often tempting to combine items, reducing the complexityof the chart. Simplifying the chart, thereby Much of the value however,is not the sameassimplifring the process. of representation the full complexityof chart is its accurate of a process and a process.It is an important means of building consensus understandingfor a new spaceplan. A readablechart on large-scale and complexity the to drafting papermaybe necessary convey full scope ofthe process. lnventory analysis "Inventory Analysis,"is important for at leasttwo reasons. Task 03.04, capital consumer' First, inventory is usuallythe primary or secondary often vying with facilities for this dubious honor. Second,almost every comesto eventually system difficulty, problem,or defectin the business rest in inventory. Inventory thus can be an indicator of the efficacy of system. the business
43
The inventory analysis usesfinancial and warehouse data. The first stepin the analysis to preparea chart that showshistorical annual is inventory turns, usually for five to ten years or even further if the information is readily available.Inventory turns are the total inventory from the firm's balance sheetdividedinto the total sales the previous for year.salesinformation usuallycomesfrom the incomestatemint. The industryaverage the inventoryturn alsoshouldbe listedon the chart. for The inventoryturns for cosmos Productsareillustratedin figure 3.9.
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Figure3.7 - Tosk?.03, ProductProcess Chort
44
Planning Facilities
One or more inventoryprofileslike that in figure 3.10 shouldbe prepared.These are pie charts or bar graphs that show the current A distribution of inventory acrossseveralclassifications. production items, show inventory by raw material,purchased class profile should (WIP). A product classprofile finished goods, and work-in-process shows inventory by product or product group. Other classifications, such ascustomerWq areusefulin specialsituations. What does inventory analysisdetermine?Trends in inventory historv can help size storaseareasfor the new facilitv or layout. Such
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Figure3.8 - ProcessChon for a Multi-color, Die-cut Decol
45
lnventory(Thousands Un ts) of
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Inventory Turns
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Figure 3.9 - lnventory HistorylForecost
Average InventoryIn EquivalentStorage Units
Purchased N,4atls 237 7y.
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Productron Stage
Figure3.10 - lnventory Analysis
46
Planning Facilities
trends provide valuable input for the development of manufacturing strategy.An unfavorabletrend might initiate a changein strategy. forimprovement. areas profile alsocansuggest The production class ite or High levelsof raw materials purchased ms indicatea supplierand purchasingissue.High levels of WIP indicate material movement' A scheduling,or focusissues. high volume of finished goodsindicate The following is an exampleof sales, marketingissues. or scheduling, summary: an inventory analysis
summary lnventory CosmosProducts:

significantlyduring the past six years. Inventory volume hasincreased growth' resultingin a gradualerosion is This increase higher than sales that, asa resultofthe facility of the rurn ratio. Managementanticipates and project,the numberof turnswill increase, inventory reengineering levelswill come down. The inventoryprofileffig. 3.10] showsthe portion ofinventory at each production stage.This indicates significant opportunities for vinyl. reducingfinished goodsand purchased
SpaceAnalysis
The spaceanalysisrevealscurrent spaceuse. The spacediagrams indicatewhether the existinglayout is primarily functional,productfocused,or a mixture, as well as which products use line or cellular analysis This space productionandwhich usefunctionallayoutmodes. alsohelps define layout cellslater in the project and can be a basisfor for requirementcalculations the new facility. space in also revealsimbalances spaceuse. ValueThe spaceprofile usage 60 generally represents percentor moreoftotal space addedspace fallsbelow30 percent, space plans.When value-added in the bestspace therearesignificantopportunitiesfor improvement.Large amountsof can space indicatea needfor more ceilularand line production, storage or it may show a need for schedulingsystemrevisions.Using large amounts of spacefor inspection or repair may indicate significant quality issues. When operationsfocusis an issue,adding a product spaceclass by space product.Eachproductgroup has diagramis useful.It classifies for usedfor operations a singleproduct group a pattern or color. Space for usedfor operations will haveonly one color,while functionalspace layout havemany colors.A product-focused many product groupswill "messy''functionalspace "clean" product spacediagram and a has a focused(functional)layout has the opposite.The diagram.A process in theseissues more detail. focusexplores sectionon oDerations
47
The analystusuallyperformsTask 03.06,"Space Analysis,', with assistance from those who are familiar with operations.The analysis beginswith a current drawing of the facility, preferablyone that shows major departmentsand, perhaps,detailsof equipment and furniture locations.The colors or patternsin figure 2.9 arethen used to code marked-off space this drawing.A tlpical resultis the existingspace on diagramfor cosmos Productsin figure 3.11. The areafor "".h ,p".. classis totaled and a space class profile similar ro the pie chart labeled "Existing Space Profile" in figure 3.11 is prepared.
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Figure3.1I - ExistingSpoce Diogram for Cosmosproducts
48
Planning Facilities
The collection and presentationof this information can alert tasks, As to managers keyissues. with the otherinformation acquisition should The analyst this is an important result of the spaceanalysis. to managers begin askingsuchquestionsas: encourage ' Why do we use 40 percent of our facility for storage,yet we constantly fall short on customer delivery? ' Why are aislesin our facility so disjointed and chaotic? ' Why doesProductA require 18 percentof our facility s space and 3 but only generates percentofour sales 0.5percentofour profit? summaryfor CosmosProducts' analysis The following is the space
spocesummory Existing CosmosProducts:

The existing and scattered. disconnected I\{uch of our spaceappears shows no clear,undedying plan. The proPortionsof spacediagram spaceuse are better than in many other industries, but could be improved.Significantopporrunitiesmay existin reducingstorageand traffic areas.Some parts of the plant have narrow aisles.Others have overly wide aislesthat becomeWIP storageareas. Organization analysis "OrganizationAnalysis,"hasseveral It purposes. can help Task 03.06, and cafeterias. determinethe sizeof supportfacilitiessuchasrestrooms basedon work for In office layouts,it may be essential planning space station requirements.It can help evaluatethe current and proposed in plan. It can assist formulating a manufacturingstrategyor in space betweenstrategyand practice. identi4'ing inconsistencies with a completeand current usuallybegins Organizationanalysis organizatronchartfrom the personneldepartment.It should include all departments and employeesthat use the facility hdown to the lowest and peoplewho resideoutside levil. It alsomight includedepartments impact on operations.An examplemight the facility but have a major and be a corporate engineeringdepartment that designsprocesses oroducts but is in a remote location. Names and titles for each but productionworker arenot needed, thereshouldbe an approximate department. and count for eachsupervisor Thesechartscanbecomequite largeand may haveto be plotted on drafting paper,but the chart should not be broken into small large-scale the This may be convenientfor the analystbut it disguises true sheets. convoluted organizatrcns.Maximum impact is the aim. nature of large, plan, Managersmust developand approvethe sftategicbasisof the space howto constructthechart. the aswellas spaceplanitselfFigure3.12shows After the organ\zationchart is complete, the current spaceplan
49
shouldbe examined. continuous,enclosed A line on the organization chart shouldrepresent eachmajor areaon the layout,surroundingeach position or departmentthat inhabits the layout areauntil all positions are accounted for. Figure 3.12 illustratesspaceandorganization congruity. It shows consistency between the current otganizatron and the current arrangement. Peopleand positionsin the samedepartmentgenerally occupycontiguousareas.
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Figure3,I2 - Orgonizationol Anolysis
50
Facilities Planning
(fig. 3.13)demonstrates howmanypeoplein the A messydiagram through the facility. The diagram sameorganization units arescattered by itself does not tell us whether the facility or the organization is correct;it showsthat they are inconsistent. ldentifying physical infrastructure Physical infrastructure supports operations for all or most of the For this product line but does not contribute directly to the process.
o o) d)
Figure3.13 - OrganizationalAnalysis
51
reason,physicalinfrastructureelementsdo not appearon the process charts. Infrastructure seldom relates to a single product or product group. Examples are: cafeteria,maintenancedepartment, heating, ventilating and air conditioning space, and electricalswitchgearrooms. Theseelements necessary operations they areessential the are for and to spaceplan, yet they are easyto overlook. A physicalinfrastructurechecklist(fig. 3.1a) helpscatalogthese features.using this form involvessteppingthrough thelist with a small group of knowledgeablepeople. Qrestions to ask are: . Is eachitem in the current facility? . Will a similar item be neede in the new facility or space d plan? This list will be input for the cell definition task later in the project.
Utllltlog
I O D O O o O tr D a Ouldmr Subshtion lnd6r Bubtrtion3(s) Switcho..r F6n Molor Conkot C.nr.r por.t Udi.t.iruilibt. 1 1 5 v ,i . o h 2$v. l-;h 230v. 3-ih .60v, 3-;n 16ot27rv , 3.gn
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cuting c@hnl: 0 C.nt.l Finririon O Chip S.pu.lion D Chip Conv.yors aSFc. H.rtin! O Intu..F.d H.ltinq O At Condiltontno O ou.l cofl.crbt O Loc.l Erhau.t lO.n.r!l V.ntilerion olhd Utiliti.s:
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Figure3.14 - Physicallnfrastructure Checklist
52
Planning Facilities
Analyzing material flow is on analysis superimposed In this task,information from the process the current spaceplan. The resulting diagramsbring attention to They alsoindicatethe needfor more materialmovementopportunities. for This taskalsoprovidesa baseline cellularor line productionmodes. plan. measuring handling improvementdue to the new facility or space developedinTask03.03 Forthis task,theprocess charts andlayouts one or more items to represent and Task 03.06shouldbe usedto select tlpical productsor parts.Lines and arrowsshouldtracemovementacross the layout.The numberofmovesfor eachitem shouldbe countedandthe is movementdistancefor eachitem totaled.If the analysis performedfor Figure 3.15 is an example.It many items, the resultsshouldbe averaged. This faciJity significant has long moves, crossovers, backtracking. and shows departments improvement opportunity. Moves between organizational alsoindicate improvement oppornrnity. Managers are often unaware of the severity of material flow in will documenttheseissues a dramatrcway. problems.This analysis It helps management take another step towards consensus, are understanding, and support.Other typesof materialflow diagrams for a more completepicture of the current materialflow. alsouseful Other issues can Other issues affectthe layout.Theyusuallyarisein initial discussion are: or during data acquisition.Someexamples ' a schedulingsystemthat dictatesbatch movementthrough the plant; ' difficultiesin hiring skilledpeoplethat maypush a company toward automation;and ' external regulationssuch as those in the pharmaceutical industry that may dictate functional operations. At Experience andjudgmentarethe bestguides. minimum, abrief They may need significant analysis. is listing of theseissues necessary.
The strategicframework
is An operationsstrateg'y the dominant approachor philosophy that or system. Operations guidesthe designof the manufacturing business and strategies often determinethe competitiveness ultimate fate of an to organizatron Strategyleads structure,aswell asthe arrangementand might bemachine s, interconnection business of elements. Suchelements information systems, people,or facilities. Theyencompass extendoverlongperiods-years or decades. Strategies permeatingeveryareaand aspectofthe all the products and processes,
53
organization They affect and determine the behavior of individuals. Operations strateg'y may be explicit or implicit. An explicit strateg'y stated,orally or in writing. Properly promulgated, it guides is decision-makers their dailywork, building a commonframeworkfor in both operationaland structuraldecisions. An implicit strategy, conrrast,is not written or publici zedas by such.It often results from commonunderstandings aboutwhatmatters for the business. These understandings may be rational or senseless, effectiveor ineffective,consistent contradictory. or
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Figure3.15 - ExistingMateriol FIow
54
Facilities Planning
An implicit strategyis determinedonly by watching patternsof decisionsand behaviorover time. For example,has the organization evolvedalong functionalrather than product lines?Is new equipment Is predominantly high-speedand large-scale? the schedulingsystem ofpatterns is a pattern. Even the absence batch-oriented? Top for strateg'y. managers Managementis responsible operations but they cannot can abdicatethe task of enunciatingthat strateg/, for relinquishresponsibility the result. Determining the framework of an organization'soperations tasks,focus hinges on the identification of heymanufacturing strateg'v and an operations strateg!sumlnar!(or statement). opportunities, Key manufacturing tasks and focus opportunities The design of a manufacturingplant or businessis like any other engineeringdesign. It optimizes performanceon some dimensions, environmentand while reducingoptimization on others.The business available technologvplacelimits on the design. This has an analogyin aircraft design.Aerospaceengineerscan 350 people. designan aircraftthat flies at Mach 3.0 or one that carries few hundredgallons They candesignan aircraftthat circlesthe globeon a of fuel or one that lands on a 500-foot runway. However, they cannot of designan aircraftthat doesall ofthe above.In the 1960sSecretary Defense Robert McNamara tried to buy such a multi-puqposeaircraft calledthe TFX. This aircraft did not achievemany goals. manyproducts Yet, manvmanagers demand factories that produce quickly for manv customers, the highestquality and the lowestcost at with output changingfrom day to day. Such a factory lacks focus.A business operationrarelyperformswell on more than two or three of thesekey dimensions. unfocused An factoryhastoo many tasksor too technologies too many disparate or manyproductsor too manyprocess Such afactory management. customers. is often too largefor effective It rarelyperforms any taskwell. Manufacturing focus concernsthe organizationof products and that large In processes. the early7970s,Wickham Skinnerreco$nized factors factories with manyproductsusuallyperformedpoorly. Several contribute to this effect: 1. A wider range of products usually brings more variery in the process.This requiresgreater complexity in handling, storage, It almostevery tooling, changeovers, skill requirements. affects and facet ofoperations. and disparate customers 2. Awider rangeofproductsoften mustserve
55
markets. One market may regard delivery speedas a top priority while another demands quality or customization. Such varied market criteriaincrease diffi cultyfor manufacturingand decrease the effectiveness.
3 . Economiesof scaleare the usual rationalefor increasingfactory

size.Economy of scalerefersto the increasing efficiencyasplanti and prorcesses in sizeandoutput. The ideawaspopularized grow by Henry Ford'smass productionmethods. Wickham Skinnercoined the term "dis-economies ofscale."Increasing scale bringssuchdiseconomies increased as coordinationeffort, isolation of specialty departments,and isolation from customers. a factorygrows As beyond 300 to 500 persons,the dis-economiesof scale soon overcome economies. the 4. Largerfactories havegreaterdistances betweendepartments. This increases materialhandling costsand exacerbates isolationand the coordinationdiffi culties. 5. unfocusedfactories often haveextensive vefticalintegration.vertical integration with a wider product range requiresmore disparate processes. This requiresfar more technicalmasterythan a more focusedoperation. A focused factory strives for a narrower range of products, customers, processes. or The resultis a factory that is smallerand has few key manufacturing tasks. In recentyears, Skinner'sconceptofthe focused factoryhasbeen extended. Focus is an issue when organizing any combination of products,technology,and people.It appliesto serviceoperations,to factories, andto departments within the factory.It applies workstations to within eachdepartment.The issueis: by what criteria shall we divide our space, people,and machinesinto manageable units? There areseveralpossible responses. Someexamples products, are: processes,markets, customers, geographic areas, and support require ments.For a morecompletediscussion ofoperationsfocus,refer to the first chapter of the Handbook of commercial and Industrial Faci li ties M anage ent. m For the macro-space-planof a factorfi the focus choice usually narrowsto productorprocess. Aproduct-focusedplant groupsoperations into departments that focuson products.Each departmentmust have all equipment and skills for all operationt, y.t only processa single
56
Planning Facilities
and reducescoordination and product. This eliminateschangeovers schedulingproblems. A processfocus allows each department to specializein their in or particularprocess craft.It is a common arrangement manyplants, probably taken from the medieval craft guilds. of Many of the perceivedadvantages processfocus are elusivein spaceplans and organizationsdo practice,although process-focused situations.On the whole, productwork well in certain, specialized focused space plans are preferred becausethey have many more Designersshould aim for the highest degreeof product advantages. focus attainable, using processfocus only when exotic skills and large in The s scale processemakeit necessary. areas which product focushas advantagesinclude: cost control, coordination, material flow, equipmentutilization' knowledgeand managementand supervision, time, flexibility, quality, and organization. response skills, it Product focus simplifies cost control because pulls together the sameor similar products and convertsmany indirect coststo direct. Elaborate tracking and allocation schemesare often unnecessary. operation must addressa wider product Becausea process-focused variet!, allocation of indirect costsis more difficult. processes. Product focussimplifiesthe coordinationof sequential reducingthe complicationsof distance Operationsare in small areas, and isolation and simplifying personal communication between the Because product rangeis narrow' only a smallvarietyof operations. simplermethods Productfocusoften uses will problemsand issues arise. for production control suchas Kanbanand direct link. In conjunction it with MRP-type systems, reducesthe number of work centersthe systemschedules. focus,materialflow reductionsof 80 When comparedto process There are operations. to 95 percentare common for product-focused moves, and distancesare shorter. Variable fewer interdepartmental flow paths often becomefixed upon conversionto product focus.This or suchas conveyors' even allowsthe useof simplerhandling devices, space plansoften requireexpensive manualhandling. Process-focused automatic guided vehicle systemsor even more expensivefork trucks. Because the smallerproduct rangeand better communication, of product focus simplifies management.Product-focusedcells often require little or no management becausethey naturally encourage the teamwork. Product focus achieves shallower org nrzationsnow in ratherthan is placedon productsand customers vogue.More emphasis departmentalloyalties. output moreequipmentfor the same In theory,productfocususes
57
than process focus. However, firms seldom realize the theoretical utilization advantage ofprocessfocusbecause ofthe complexscheduling required. In practice, there are severalapproaches mitigate the to apparentunder-utilizationof product focus.One way is to designcells that maximize the useof major equipmentwhile sacrificingusageon lessexpensive peripheralequipment. Product focus requires a wider range of employee skills and knowledge. This mayplacelargetrainingburdenson firms that convert from process focus.However, the teamwork and job enrichmentthat result reducesturnover. Processfocus, on the other hand, allows concentrationon processskills, and highly complex and technical processes sometimes need this concentration. Process-focused organizationstlpically haveverylong throughput times. As a result,they cannot respondquickly to changes product in mix, volume, or specialrequirements. Many process-focused plants counter this with extensiveinventories, even though inventory is expensive rarelyreduces response and the time on customized products. Productfocusallowsfirms to eliminatefinished-goods inventorywhile improving delivery performanceand reliability. Process focusis more flexible,at leastin theory.However,several meansexistto achieve good flexibility in product-focused layouts.For example,the useof small-scale, mobile equipmentcan allow product focusedcellsto be formed,disassembled, re-formednewproducts. and Product focusgenerallyachieves high quality levels.This results from quick feedback,good communication, easycoordination, and high commitment. Process focussometimes mayhaveaqualityadv^nt^ge for complexor technicalprocesses. Productfocusis mostcompatible with newerapproaches based on teamwork and empowerment.Process focuslendsitself to traditional commandand control management styles, often requiringa substantial hierarchyto dealwith increased coordinationand complexiry. The concepts offocus and keymanufacturingtasksareinterrelated. Focusidentifiesthe most important dimensionsand optimizesthem. The business addresses narrowermarket, but addresses very well. a it The key manufacturingtasksstatewhat manufacturing must do well to survive in the market. Process elementsarethe equipment,people,and operationsthat add valueto aproduct.They direcdytransformmaterials, information, andparts. O perati ons strategy sum m ary A sound operations strategy addresses four areas:mission, ?rlcess, i nfr astruct ure, andfa ci I i ties (physical infrastructure). The site mission
58
Facilities Planning
states, in a few paragraphs,the purpose of the site. It identifies It customers, products, and processes. defines one to three key in manufacturingtasksthat directly correlateto success the marketplace. important externalissues The mission statementalso might address strateg'y suchasenvironmental policy.The remainderof the operations summary flows from the mission statement.It stateshow the firm intends to achieve key manufacfuringtasks. the but Infrastructure supportsthe process doesnot directly affect the a covers wide varietyof elements. product.Non-physicalinfrastructure Examplesare:scheduling It refersto peopleand information systems. and tool design training operations, personneldepartments, systems, capability. is Physicalinfrastructure, tangible and is generallysynonymous with facilities. Buildings, utility systems,roads, and docks are not stream;rather, they support all processes. directly in the process eachmajor topic at a policy level.Few A good summaryaddresses haveastrategy summarysufficientfor facility designpurposes. companies of thoseelements strategyand structurethat relate For suchpurposes, syste ms For compensation to facilitiesneed to be emphasized. example, for but havemajor effectson org anizatronalbehavior little consequence the facility plan. Figure 3.16 providesa structurefor a strategystatement.Such a summarizingthefirm's ofone to fourpages normallyconsists statement for eachstructuralelement.Figure 3.77 is the statementfor intentions CosmosProducts. the planner summarypresents facilities The absence ofan effective with difficult options: 'proceed without a summary; 'guide management they developa stratery; as ' write a summarybasedon an idea of what it should say;or ' write a summarybasedon what probablywill happen. Development ofa strategysummaryrelieson all ofthe information collectedduring the first task group. Even this may be insufficientfor is a completestatement.Strategicdevelopment a high-level task that of almost everyaspect the business. encompasses ldentifying operations strategy "Identi$'Operations forTask03.10, diagram Figure3.18is theprocedure ofinformation Block 1 ofthe diagrambeginswith the assembly Strategy." strateg)) in a form suitable for a report or presentation.The operations outline,Block 2, is alsoneeded. Block 3, the current position summary, shows the company's
59
presentstatus.A management team should assist with this step or at leastconcurthat the summaryreflectsthe company's currentsifuation. Blocks4through 6 determine management's readiness forchange. It is not enough for management, certainindividuals,to express or a need for change.The managementteam also must be capableof carryingthrough with change. The success a space of plan depends on the organization'sability to supportit. For example,a cellularspace plan that dependson kanbanproduction control and small lot sizesneeds
TechTools
strategyandstructure Keylssues
2.5 Qulity Capability 2.6 T$hnology Level
3.6 Production Control . Mrke{coiders , Makb-tcstck .Physicallink . Br@dn . Keban . MRP . Reorlcr Point 3.7 SupplierPolicies . SlEtiooc.iteria . Single / Multiple Soltffi . Conm Time HoriaN . Scheduliry Appr@h . ShippitrgPolici6
1.0 Site Mission L l SiteFoils
.1.2 Products ' 1.3 Maikets . Volus ' Gaglaphy 1.4 Multi-Site Integration 1.5 Ky Mmufacturing Tmks 1.6 Extemal StrategicIssues 1.7 Political 1.8 Enviromental I.9 Comunity Involvement
^-N-IW7\ 1]\ \All\Z --
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3.0 Infrastructure
3.1 QualityApproach . Quality Poli@ . qdity at Sou@ 3.2 Persomel Policies . Tshtril Skill Depth . Tohniel Skill B@dth . Ifferpmnal Skills . Employmnt Sffily . CompeNtion . Tnidng 'PerfomeMffircnt . Safety . Erhi6 Structure
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@
4.0 Facilities
4.1 Site Focus . Prcduct
.Pffi . I{arket . Cpgnphic . Other 4.2 Site Ircation & Size Accss 4.3 Tmsportation
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2.0 Process 2.1 Production Mode(s)
.Prcject . Fuclional .Cellula . Toyota . Line . Continuou 2.2 Proess Scale
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4.4 Utility Systems 4.5 Expmsion Policies 4.6 Nil Product Flexibility 4.7 New Proess Fluibility 4.8 Resle / DisposalPolicy 4.9 Haadous Waste Policy 4. I 0 Endromental Issues
Figure3.f6 - Strotegy ond Structure Key lssues
60
Facilities Planning
rapid setup techniques and participative management.Management may not have the wherewithal to adopt thesetechniques. If managementhasan acceptable strateg'y summa{I, this summary shouldbe usedin subsequent space planwork. Ifmanagementexpresses a desirefor operationsstrategiesdifferent from current practices,their readiness makerequiredchanges to mustbe evaluated. This is a difficult and sensitive decisionthat requires yearsofexperience institutional in change.Designerswho lack such experience should seekcounselfrom the managementteam or others in the organization.
Sib #l ha Mo di$ind missiw @cpondilg to our &o mjor tr8k6. The* e: Roll Product!- Supply qr ostoren with the largd vriety of rcll prcdu* in or irdusry wilh 24-hour ship@t atd quality withh lhe top 20% in our iidusry. Produs- Supply high quality Comercid vinyl dcals ad ap,plqua b small dd nrdim sia |mufamrcF. OrigiMlity dd quality of artistic d6ign is il itrtcgral pd of dr prcdud mix. We expd b ship to'/o ofall orders wilhin twe{Ekr at a reliability of 98ol.. Our products will @fom to rEogEzad qualfty sbrdards. At Cm w q!@t to be a good ngighbor a|d integnl pa of or muity. Com6 shold b lilM 6. sdbhctory mployers.
Mlsslon
priffi m larg$scale silks|q aDd50olc?0% d dlFi equipMt. We will add snBll-scale equipmot in advd@ of del@d dd brgFscale equipmd wfio dqMnd is prc@. All cquipM will haw a midmm oapability index of 1.4. we will strive for fte laK sd highd t4hDly lwel on large{ca.le silksHing.
Intraslructure
C('ffi will triw for a produd.focue4 shallw, multatiw ard infonna.l orgeiz*i@. We will gradully move Mrds a ptticipatire ffi+aed org&i4i@ ovc the M five yec. Our Ming s)ffi shqld a@mmodat aciivity-bded 6ting using @st &iveB for overlsd allstio. Wc will u* prcj* mirg for c@ial work ud p|1ss @sting for roll products. We @ogniz the limitatioE of omtiooal mmtirg systans for maagmt dsisic. Prcduaio ontrol will us MRP-ty? produ* dd supplieN. schcdrli4 for mcial We *i[ u$ krnbd s]ffi for inbrul schcduling produd will b of 6ll opediG. Cfficial sidly mkefrrder. Roll prodrd will u$ strEll 6"i"hd goods st@ls for the highct volw E0o/o of lim itans. Tlrc mining 20% of lw-volme rcll produc wiu b6 trEde ro or&r. Unusually large or&rs ofrcll pJoduG will have c{mdd deliverid ald be rade to or&r. At Cffi we will trirc br l@g-bm reldidBhip! wilh rcliable $ppli6. We will sld supplicF @ lb b6is ofquality, dlirery rcliability aDd @$ in tld order. Facllltles Sit fqs will folN @rpoftlwel stErgis d w siB develop. All sib, nw dd in dF fuhre will haw a ruimm of 200 fiplcyH. Site #l requic only limired capability for nw prcduc{s and prms. Significa*ly difrpr@t prws, such a a esting openrioo" sbotrld hare a separate sib.
Procass
will striv for a Roll Ploducte Cffic produd-f@sod opcdion with the dctprid of prinBry slittDg *trich seruc both Roll and Cmial opcroim. we will h.w a mix of large in G@p T@tmlo$/ ard $utl slc cquipM @lls. Rapd stup i5 a importart prioity for equipdd slti@ ald opBlio. We will attqnpt 60% atd d avFage cquipMt utiliation bwq 85%. we will add pr(Bs eprcity 6-12 mths ahad of daMnd. Pffis should harc a M gEduly to gability iDdsx of L4. We wil ffi puitbd they re highr bh@logj/ p|ffi @NisM wifi dr f{w ffitcgy, @st justified ad haw ad.q@ spport. Producte Cm6 will triw for Co||ercid ptodud-foq8 witlin thc limits st by plrc and requimts. This my diclate mviourroal physical *pmio bawo silkscming ad subsequd opcdi@. Prinary slitring nd sbet cunirg wiU |@in p|lss f@used. Our prlss scale will be a mix of largc aDdsnEll @cpordmg to th ordcr mix. Rapil stup is d important priority o the ruller *ale, lw volme pre. We will attqnpt o arcnge utili*io of 807e90%
Figure3.17 - Physicollnfrastructure Stdternent
61
An organizationmay not want changeor may not be positioned for change.If so, the operations strateg.y summaryshouldidentify the approachthat is most likely to be adoptedin practice. If the organizatron desiresand is ready for significant change, initiating a strategic debate a good idea.This debate is shouldconclude with a proposedoperationsstrategJsummarythat will help the space plan designercarryout the new strategyduring the facilitiesplan.
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62
Planning Facilities
One sub-task of Task 03.10 is the identification of focus plans, organi.zatron opportunities. The conceptoffocus appliesto space ,t-rrr.tur"r, and other elements of the enterprise. Developing an appropriate strategy for facility planning means identifying the most uppropriut. focus-for the facilities at each level. This is not a final unalyris. Rather, it guides and gives preferred directions to space planners as they proceedwith their work. The flo- piocesschartsfrom Task 03.03 can help sort this out' of chartsfor the manufacture cosmetic Figure 3.19 showsthe process
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63
containers. The principal operations injection molding, assembly, are transferprinting, and packaging. There are four basiccontainers. Each has varietiesof color and print. Because color and print changeovers fast and easy, plant are the considers only containerstylesdifferent products. Process elements usuallytouchthe product.At CosmosProducts, peopleassemble, lathesturn, and molding machines convertpowdered resin to solid components. The selection, arrangement, and operation of these and similar elementsare part of processdesign. A purely processfocus would group the molding machinesinto a molding department,printing into a print department,and assembly into an assembly department.Each departmentwould perform operationson all four products.Envelope showshow assembly A operations might fit into an assembly department. Envelope B showshow all operationsfor a single product would be coordinated. Sometimesfocusing purely on product is impractical. Instead, group technology cellsmight be used, wherebya series operations of for several productstakesplacein a singlecell. EnvelopeC showshow these operationsmight be coordinated. Various mixed approaches common. For example,process are focusmight be usedfor receiving,shipping,and molding, while other operationsmight havea product focus. Figure 3.20 shows the proceduresfor identifying focus opportunities. The first is preparation ofprocess chartsfor all products. This maybe doneon paper,or, forlarge numbersofproducts,forms of computer analysis be used. can Next, productsthat are candidates a plant-within-plant are for identified. These would have enough volume to justi$r separate equipment,people,andinfrastrucrure. Any suchproductsshouldbe set asideand removedfrom further consideration. plant-within-plant A (PWP) is a self-contained productionfacilitywithin the wallsof a larger facility. Ideally, a PWP is completely independent with its own supporting infrastructure. We then searchfor products(or components)that have similar operation "strings"-troups of operations that can use the same equipment, the samepeople,and perhapsthe sametooling. Is there adequate volume to justiS, dedicatingequipment,people,space,and infrastructure this group?If so, theseproductsor componentsmust to be removed from further consideration and assignedto a group technology(GT) cell. This procedurecontinuesuntil the only remainingproductsand
64
Planning Facilities
operationsare thosetoo small and varied for dedicatedplants or GT cells are then developedfor these items. An cells. Process-focused alternativeis a job-shop departmentsimilar to a prototype shop. Some space plans involve a great number of products and In situations, or thousands tensofthousands. these components, perhaps at practicalitymay not allow a detailedanalysis this point in the macro-
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65
space-planproject. The objective for this sub-task is to identi$' opportunities,not to make decisions. For CosmosProducts,the two distinct productlines-roll products and commercial products-separated naturally into focused factories. However, the slit-and-sheetoperationservedboth product lines. Many log rolls, when slit, becamestock for both product lines. The narrow widths necessary roll products are a natural byproduct of slitting for for the wider commercial items. Maintenance, quality, and severalother functions cannotbe split economically. this reason, designteam's For the aim becametwo semi-focusedfactorieswithin the same facility, i.e., plants-within-plant. Several functionalareas serve both focused factories. Roll productoperations lend themselves to GT cells.However, well the large number of items precludesa complete GT analysisat the macro-space-plan level.The teamtherefore developed compositecell a for roll operations,with the intention of analyzingtheproces in greater s detail and designingGT sub-cells the next designlevel. at In commercialproducts,the silk-screen operationscall for tight environmental control.In addition, the existingsilk-screen presses use large-scale, high-technologyequipment.The team decidedto put two compositecellsin the commercialarea. The first compositecellwould include silk-screen and any related operations in the controlled environment. A secondcompositecell would have post-silk-screen operations such as thermal die-cut, pick-and-peel, and packaging. These smaller-scale processes would be arrangedinto GT cells. Designing the space plan With adequate information and an agreed-uponstrateg-y, actual the spaceplan can be designed.The activity to this point may have consumedas much as half of the time and resources availableto the project. Nevertheless,these expenditureswere good investments. Managers from all areashave new perspectives. The factual data has tempered emotions. As the spaceplans develop, debate should be constructiveand rational.The final selection will enjoy wide support thanks to management's broaderunderstanding both business of and technicalissues. Defining space plan cells and processes Task03.11, orthe definitionofspaceplanningunits (SPUs), the most is fundamentaland important task in space planning. It establishes the organizationof space and must fit with a correspondingorg anizationof peopleand processes. Moreover, all subsequent work flows from this task. An omission or error invalidatesall of the work that follows.
66
Facilities Planning
A procedure chart for this taskis in figure 3.21. Blocks 1 through 3 call for assembling deliverablesfrom all previous tasks. Block 4 reviewsoperationsstrategy.If the strategystatementfavors a process(functional)space focused plan,planners shouldproceed Block5 and to Blocks 11 through 23. skip In Block 5, functional and support cells for the spaceplan are identified by examining the cell definition summary (fig. 3.22), the space analysis, infrastructure the checklist,the process charts,and the
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Figure3.21 - Tosk3. I I, DefineSPUsd Processes
67
organizairon chart. We look for activities, people, or equipment that will require space. For eachsuch item, a cell could be defined, or the item could be combinedwith others into an SPU. Generally.ren to thirty SPUs should be identified In the SPU definition summaV, the spaceplanners should identiSreach SPU with a name and number and show those that are included. The spaceplanner may also specifyexclusions. The columns
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68
Facilities Planning
(e.g.,does that showthe source the celldefinitionshouldbe examined of chart, or both?). this activity show up on the organizationchart, process If the operationsstrategysummarycalls for a product-focused spaceplan (line, cellular, or Toyota), support cells still need to be identified. However, a product-focused spaceplan may absorbmany in indirect activities within the product-focused cells.For example, an cells electronics plant, assembly-integrate-test eachhad one ofseven test and engineers in sat major products.Schedulers, engineers, process had these people the cells. A subsequentorganizationrealignment report to cell managers rather than functional managers. If the plan's strategycalls for product focus, planners should oroceed to Block 11 to decide whether a current cell definition is iatisfactory. If the factory has previously operated with productfocusedcells, rearrangingthem may be all that is needed.Suitable "IdentiS, definitions may have been developedduring Task 03.10, Focus Opportunities." Now, additional product-focused cells should the be defined.If the current definition is unsatisfactory, next step is Block 13. For a product-focused space plan,the plannercandefineproductfocusedcells at the macro- or micro-level.Defining work cellsat the if number macro-levelis satisfactory the likely result is a manageable and if the effort reouiredis reasonable. Sometimes this is not the case. For example,an adiquatedefinition might requirean extensive group technologyanalysis, which is inappropriate the macro-level. there at Or might be many smallcellsthat aredifficult to arrange. so,the planner If should considerusing one or more compositecel1s. A compositecell consists several smallercells.In the Cosmos of Products example,post-screenoperationsand roll operationslend themselves cellularmanufacture. Designingthe individual cellsand to deciding which products go in them is a prolonged, detailed, and difficult taskthat, in this casehasbeenpostponed until the next design , havebeen level.Therefore,post-screen operations and roll operations necessary. group A defined ascompositecells.This wasnot absolutely technologyanalysis havebeenconductedat this macro-levelto might identify families and define the subcells. If composite cells are not used at the macro-level,Blocks 14 through 16 arethe next step.Planners evaluate numberofproducts the and select appropriate an analysis tool. For a smallnumberofproducts, twenfy or less, plannersshouldgo to Block 20, chart the process for the each,and then usethe process chartsin Blocks 18 and 19. In Block 18, the space planneridentifiespreliminarypart families;in Block 19, the cellsare defined.
69
For a moderatenumberofproducts,lessthan 100 but more than twenfy, production flow analysis used.The processthen movesto is Block 18 for defining product familiesand Block 19 for defining the corresponding cells. products (more than 100) will probably require a _ Y""y classification coding analysis. and This is an extensive undertakingbut one with significantbenefits. After defining SPUs, it is time ro review the processes for improvement. The processanalysisat this level may be general. Examining the process further maybe done during the detailingof the layout at the micro-level. In Block 7, the space planner determines key equipment requirements. This is not alwaysa completelist; rather, it identifies equipment that occupies significant spaceor needssignificant 1aj9r funding. In Block 8, capaciryis checked. Normally, this lapaciry analysis confined to key equipmentor known bottlenecks.piocess is charts for anysignificantprocess revisions and a list of key equipment might alsobe helpful. When complete, a cell definition summary is in place. Cell definition should include everyspace featurenecessary the ner" or ior plant. It is not always elaborate an document.Everyone involvedshould know what eachSPU conrainsand what it will not contain.These are the building blocksfor the new layout. Because cell definition is so crucial ro the remaining activities, plannersshouldcirculate widely for commenrand input. In addition, it decision-makers must approve itbefore space planningcango forward.
Cosmoscell and processdefinition

Part of the cell definition for cosmos Productsis illustratedin figure 3.22.The operational cellscomedirectlyfrom the focusstudy ofrask 03.11. other cellsarederivedfrom the existingprocess .h"rt, and the physical infrastructure checklist. For example,SPU 01 is silk-screenoperations.It includes silkscreenprinting, drlang, baking, and humidifying and excludesscreen preparationand subsequent operations. The team createdthis sPU from the existing spacediagram and alsofrom the existingprocesschart. Cell04 is post-screen operations. includesthermal die-cutting, It pick-and-peel, masking, labeling, inspection, and packaging. Th1 existingspace plan had no areawith this label.This spu was derived from the process chartsand the strategystatement. Figure 3.23 is the revised process sheetfor cosmos'smulti-color commercialfamily of products.comparing this illustrarion to figure
70
Planning Facilities
from 0.20 to that the valueaddedindex (VAI) hasincreased 3.8 reveals has decreasedfrom 78 to 50. 0.30. The number of elements Improvementsofthis magnitude(30 to 50 percent)arenot uncommon in projects.The dotted envelopes figure 3'23 in layout-reengineering representthe cells where the processactivities occur. Most of the
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71
process improvements cosmos arefrom the eliminationoftransport, at storage'and delay elements,which are renderedunnecessary when processes occur in the samelocation.This is the power of a productfocusedspace plan. Materialflow analysis In Task 03.12,the analyst uses informationgathered earlierto calculate materialflow berween eachcombinationof SPU pairs.Additional data may be neededfor this calculationto establish affinitiesassociated the with material flow. Figure 3.24 showsthe procedurefor this analysis. In manufacturing, material flow is usually an important factor in layout. For non-manufacturingspace plans,materialho* -"y not be relevant,and this task probablywill not apply.Berweenthe extremes, the relative importance of material flow for establishingaffinities will vary considerably. Material flowvaluesareone of two inputs for affinitv develooment. As space plandesign progresses several and optionsareunderconsideration, the material flow analysiscan assistin evaluatingtheseoptions. Later, flow calculations provide a basisfor handling tyri.- design. From the P-Vsummary,process charrsand observaiion (Block 1) materials are classified into manageablegroups (Block 2). This classification assists developing common unit for measuring in a flow, the equivalent flow unit (EFU). A classification summaryis one of the deliverables Task 03.72. for Usually these groups number less than twenty-five. They are based material-handling on characteristics. strucruraishapes might be one group in a metal-working factory. It would include steel and aluminum shapes that areten to twenty feet in length. Another group might be small parts-items defined aslessthan four ounces"ttd l.tt than three incheson any dimension. In Block 3 of the procedure, plannerschoosean EFU. This is a two-part measure: material-unitsper time-unit suchaspailetsper day (metalworking); cartons per hour (grocery distributionj; tor* p* d,iy (steelfoundry); or totesper day (electronics). When there is one type of material,this step is easy.Ituses the normal unit such astons or pieces.such situationr "r. rare, however. Most layoutsdealwith a wide rangeof materialmovement. Materials also may change form. A sheet metal cabinet for computersbeginsasa flat sheetthat is difficult to handle.cutting and forming increases difficulry and bulk by an order of magnilude. the Paint makes it delicateand susceptible damage.packagiirgthen to allows it to be nestedand stacked,rendering it lesi delicate."
72
Facilities Planning
in Figure 3.25 illustratesthese changes a quantified schematic movement,and theirwidth represents diagram.The linesrepresent flow the flow rate in equivalentpallets per week. The flow rate in units per However,the changein size, week is constantthroughoutthe process. features, delicacy, and packaging changesthe equivalent flow as it movesfrom one ooerationto the next.
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Figure3.24 -Task3.l2, AnalyzeMaterial Flow
73
The sourceof data is determinedin Block 4 of Fig. 3.24. For simple flow situations, the P-v analysisand processcharts provide all the necessary information. In complex situations, the proiess charts may be too many or too complex; sometimesmovestake place that are not in the official process.These must be identified from other data sources such as the MRP database, material handling records,direct
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Figure3.25 - Changesln Material Flow
74
Planning Facilities
or observation, random samplingasoutlined in Block 5. Block 6 marks the extractionof data.Again, for simple situations, For chartsand the P-V information are necessary. each only the process if chart, the plannerdetermines a similar movewill on the process move the existwhenthe new SPUsareused.He or shethen determines flow unit forecast. and the number of flow units per day requiredto meet the sales Other data sourcesmay need significant manipulation. Each and to space plan project is uniquewith respect flow data.Experience are common sense the main guides. or Block 7 formats the data, usually on a comPuter spreadsheet In database. Block 8,the flowis calibratedusingtheAEIOLIXconventions (see the fig.2.9).This is doneon a rankedbargraphwith SPUpairsalong and flowrates on the other.The rating shouldbedonemanually. one axis The affinity distribution in figure 2.10 should be used only as a guide, other factors also are involved. For example,discontinuitiesin because the curve naturally divide one rating from another. A{finity pairs that "IJ" rating. havezero flow betweenthem get a forTask03.12is illustratedbytheCosmosproject. The procedure as classified Basedon the information from Block 1, the materialswere follows: Log Ro llrThese vinyl stock rolls are36 incheslong and abott 12 inchesin diameter.They weigh about 200 pounds. SIit Rolts-Vinyl stock rolls are rolls that have been slit and They rangefrom 6 to 20 inchesin length and rewoundon smallercores. lessthan 5 inchesin diameter.Weights are lessthan 40 pounds. are Roll PacLages-:fhese packedroll productssimilar to cellophane tapeor maskingtape. The largestareabout5 inchesin diameterand 4 inchesin length. Most are much smaller. ofvinyl stockor decalmaterial,average24 largesheets Sbeets-These and inchesby 60 inchesand remainflat throughout the process shipping. Packaged Sheerr-These are decal sheetspackagedin corrugated their volume but boxes.The boxesand packing significantlyincrease reducethe delicacyrequiredin handling. Much ofthe materialhandlingin the plant is doneusinghandcarts usedasan EFU. This offered so with four-wheelcastors, a handcartwas s. severaladvantage It was easyto visualizethe handcart being used for all materials and to developconversionfactorsfrom that vision. In the undoubtedlywouldremainthe primarymeansof newlayout,handcarts movement. for Table 3.1 is the output of Block 7 and the deliverable Block 9 on the procedurediagram. This table showsthe material flow analysis are for CosmosProducts.The materialclasses at the top left. Next to
75
EFU=Equivalent Carts Hand LogRolls 0.500 SlitRolls 0.071 RollPackages 0.004 Sheets 0.167 Packaged Sheets 0.250 (A) (B) (C) Fwd Units /Day 69.0 (D) (E) (F) (c) (H) fl) (J) (K) (D (M) Rev Tot Flo Flo Flol N_F N_FTot Tot Units EFU EFUsVow Num N-F Vow NumNum Vow lDay Fact /Day Rtg Rtg Ratio Rtg Rtg Scr Rtg 0]7 0.17
11.5 '11.5
From -To Unirs 01-02 01-04 SHTS 01-05 SHTS 01-08 Q1-12 01-13 01-14 01-15 02-11 03-04 O3-05 SLITS 03-06 03-08 PKGS 03-10 PMAT 03-12 03-13 03-14 03-15 04-09 SHTS o4-11 04-12 04-'13 o4-14 04-15 05-06 SLITS 05-07 LOGS 05-09 LOGS 05-13 05-14 05-15 07-10 LOGS 07-12 08-09 PKGS 08-12 08-13 09-10 09-12 10-14 11-12 11-13 12-13
u0 t2 69.0 t2 u0 u0 u0 u0 u0 u0 u0 0.11 c.l 01 u0 0.01 19.2 A 4 7.3 o.25 1.8 o 'l u0 uo uo u0 o.25 17 3 E3 u0 u0 u0 u0 u0 46.0 46.0 0.11 10,1 t 2 23.4 0.50 11.7 l 2 0.2 0.50 0.1 0 1 u0 u0 u0 0.50 11.7 l 2 u0 2134.0 0.01 19.2 A 4 u0 u0 u0 u0 u0 u0 u0 u0
1.25 A 4 2.00 E 1.25 A 4 3.25 A 125 E 3 2.75 E 1.25 0 1 0.50 0 1.25 | 21.00 I 1.25 | 21.00 | 1.25 | 21.00 |25 | 21.00 | 1.25 E 31.50 | 1.25 A 4 2.00 E 125 E 3 2.13 E 1.25 0 10.50 0 1.25 | 2 3.50 A 1.25 U 0 0.63 | 1.25 0 10.50 0 1.25 | 2 i.00 | 1.25 0 1 0.50 0 1.25 0 1 0.50 0 1.25 E 3 3.38 A 1.25 | 21.00 | 1.25 0 10.50 0 1.250 1050 0 1.25 0 1 0.50 0 1.25 0 10.50 0 1.25 | 2 2.25 E 1.25 | 2 2.25 E 1.25 U 0 0.63 | 1.25 0 1 0.50 0 1.25 0 10.50 0 1.25 0 10.50 0 1.25 0 1 1.75 E 1.25 0 I0.50 0 1.25 | 2 3.50 A 1.25 0 1 0.50 0 1.25 0 10.50 0 1.25 0 10.50 0 1.25 0 10.50 0 1.25 E 31.50 | 1.25 | 21.00 I 1.25 0 10.50 0 1.25 0 10.50 0
TABLE 3.1
76
Planning Facilities
the factor,which converts descriptoris the EFU conversion eachclass factor is the inverseof the materialunit into an EFU. Each conversion number of flow units that fit onto the cart. A cart usuallycarriesnvo log factor is 0.5. The SPU pairs arein rolls, for example,so its conversion column A of table 3.1. Column B shows the flow units-slit rolls, etc. Columns C and D indicatethe flow rate. sheets, usingtwo numericalSPU identifiers.In the Pathsshouldbespecified to and to roll operations, 06 refers intermediate 03 Cosmosexample, refers them is 03 to 06.To avoidduplicationand The flowpath between storage. shoulduseonly the forwardpath-the SPU with errors,planners possible the lowest number followed by each SPU numbered above it. When materialmovesfrom a higher numberedSPU to a lower numberedSPU, it is called reverseflow. The total material flow is the sum of the forward and reverseflows. Column F in the Cosmos model is the flow totals flow ratein EFUs multiplied by the EFU factor.This resultis the average day. Column G showsthe vowel rating for eachflow path. per This Figure3.26showsthe flow calibrationfor CosmosProducts. is Block 8 on the procedurechart and is typical ofa product focused layout. It has a small number of high flow ratesand many SPU pairs layoutshavea much broaderdistribution with zeroflow. Process-focused with their complexnatures. of flows commensurate
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Figure 3.25 - Moteriol Flow Colibrotion
77
Id entifyi ng non -fl ow affi n ities Material flow is only one of many factors that give rise to affinities. other factorsareintangible and more difficult to quantifr. Examplesof these factors personal are: communication; needto transferperionnel the betweencellsor departments; movementto and from the cafeteriaor rest rooms; quality feedback; joint teamwork communications; access by outsidevisitorsl RF communications requirement;and other sitespecificneeds. Figure 3-27 shows chart for recordingnon-flow affinities that arso a may be used to documenr flow affinitie, J, total affinities. Diagonals represent eachSPU.When they cross, they form a diamond. In the upper half of the diamond, the affiniry rating is recordedusing the vowel or
Figure?.27 - Affinity Chor-t
78
Planning Facilities
number scaleshown in figure 2.9.The lower half of the diamond is the place to record the primary factor(s)that gaverise to the affinity. These non-flow affinities are independent of material flow The problemlies in capturingthem. In Task 03.14 they requirements. aremergedwith affinities for an overallor total affinity rating. A survey, meeting,or personalevaluationmay alsobe used. consensus from each representatives meeting that assembles A consensus Task for the departmentor SPU is usually bestapproach accomplishing Using the affinity chart of figure 03.13.The analystactsasfacilitator. the 3.27,he or sheexplains needfor affinity ratings,the chart, and the eachpair of SPUs,one at a desireddistribution.The group considers the time, and discusses relationships. Using the conventionsin figure 2.9' they decide on a rating. are Initially, these discussions rather long. After five to ten ratings, however, the group will begin to agree readily. A scribe records the ratings and keepsthe group focusedby displayingthe current SPU pair arise'Thesemayresultin constraints Frequently,corollaryissues on cards. or evenrevisionsof the SPU definition. feelingthat theyhave meetingemerge in Participants a consensus been part of the overall project. This is important. When they seehow their input led directly to a sPaceplan, they will have increased plans that finally emerge. commitment to the space Another methodofidentifying non-flow affinitiesinvolvessending in to questionnaires representatives eachdepartment.The questionnaire areas, peoplethat must be near and them to list other departments, asks interpreted,and ratings each other. The resultsare then assembled, in using the scaleand conventions figure 2.9. This method developed is effective for large projects with fifty or more SPUs and many affinities. However, it does not allow the participants to develop a The participantsmay not through discussion. common understanding trust the judgment of the person who intelprets the surveys and may not be brought out. corollaryissues which usesa singlejudge A third method is personalevaluation, must haveintimate knowledgeofthe to determineaffinities.He or she but This often is the analyst, he or shemay alsobe a strong operations. or the leader, perhaps plant manager CEO. This is a quick method and may be effective for small projects. This, however, does not build may remain hidden. and consensus may be divisive.Corollary issues Merging affinities used Two sets ofaffinities nowexist.The developmentofflowaffinities Non-flow affinities by their nature preclude a a quantitative approach.
79
quantitativeapproach wereidentifiedby a consensus someother and or non-quantitative approach. Thesemust nowbe mergedinto a singleset of affinities (fig.3.28). This is Task 03.14. A spreadsheet createdby hand or computer is usuallythe most straightforward method of merging. Table i.2 is an extension of the spreadsheet table 3.1. These columns are put in after columns in A through D. Column E: Vowel Non-Flow Rating (Enter Manuallv) Column F: Numeric Non-Flow Rati"g (Enter tr,t""u"ity; Column G: FlodNon-Flow Ratio(Enter Manually) Column H: Merged Score: Col. Ax Col. F + Col. p x (f - Col. F) Column I: Merged Vowel Rating (Enter Manually) Planners should add rows for all remaining combinations of SPUs,sortthe rowsin themergedscore column (col. u) in descending order,andplot the mergedscores a rankedbar chart.From the chart. on
EFU=Equivalent Carts Hand LogRolls 0.500 SlitRolls 0.071 RollPackages 0.004 Sheets u.lo/ Packaged Sheets 0.250 (A) From -To 03-08 08-09 04-09 05-07 07-10 01-04 01-05 05-06 03-05 03_10 05-09 (Bl
(ct
Fwd Units/ Day 2134.0 21234.0 69.0
(Dl
Rev Units/ Day
Units PKGS PKGS SHTS LOGS LOGS SHTS SHTS SLITS SLITS PMAT LOGS
(Ft Tot EFU EFUs/ Fact Day 0.01 0.01 0.25 0.50 0.50 0.17 0.17 0.11 0.11 0.25 0.50 19.2 19.2 17.3 11.7 11.7 11.5 11.5 10.1 5.1 1.8 0.1
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TABLE 3.2
80
Planning Facilities
they should assigna mergedvowel rating (Col. I). Deciding the relative importance of flow and non-flow factors Heavyindustries and on depends the industry,process, otherinfluences. such as steel or shipbuilding warrant a flodnon-flow ratio up to 2.0. and industriesthat dependheavilyon personalcontact may Office areas haveratios aslow as 0.5.
3 D e t e r mi n e F l o w / N o n - F l o wR a t i o
4 M e r g e U s i n OW e i g h t e d AvergaeTechnique
Prepare Atfinity D i s t r i b u t a o nB a r c h a i l
8 D e livera b le i . Merged Affinity Chari
Or . M e r g e dA f f i n i t y i 6 t L
Figure3.28- Tosk 03.14,Merge Affinities
81
Generally,the sameflodnon-flowratio shouldbe usedfor all the affinities on the spaceplan. Occasionally,however, specific affinities may haveto be modified for special circumstances. Next, the total affinities must be rated. When assigning the mergedvowel rating, the analystshould considertwo factors. First, he or she should strive for a workable distribution of ratings similar to those shown in figure 2.9,\n addition, a searchfor natural breaksor discontinuities in the distribution avoidshaving nearly identical scores with different ratings.Accuracyis not paramountin this process. Developing a configuration diagram In Task 03.15, merged ratings are used to develop a configuration diagram.The configurationdiagramis the firstofthe derivedelements. It comesfrom cell definitions,affinities,and experience. The graphics work may be done on a CAD system or other software. However, manual developmentis straightforward and often quicker. To developthe affinitydiagram, the analystplaces A affinities the and their associated SPU symbolsfirst, then addsthe E affinities.At this point, rearrangingthe diagramis desirable. Next, the I affinities are addedand the diagram is rearrangedagain. He or shefinisheswith the O affinities, which usually will have little effect on the diagram.. Striving for short distancesbetweenthe As and Es with minimal crossing is a worthwhile goal. Multiple crossingsmight create traffic congestionon the final spaceplan. Lower value affinities probably will havelonger distances. The high valueA and E affinities will have short distances. Attempting to fit this diagraminto a buiiding environment at maybeovedooked. this point is not advised. someexcellent arrangements Figure 3.29 illustrates the diagram developed for the Cosmos project. Step 1 featuresthe SPU symbols.Step 2 shows the A and E affinities in an undesirable arrangement. Step3 showsthe rearrangement of the A and E affinities and the addition of the I affinities. Another rearrangement illustratedin Step4. Finally, in Step5, the affinitieshave is been rearanged again,and the O af{inities added. The Cosmosconfigurationdiagramin figure 3.29 is only one of many possible diagrams that uses this combination of SPUs and affinities.It can be mirrored or rotated.There may be other positions for the SPUs that give the same or better results. Some of these variationswill fit the building better than others.However, it is best not to jump aheadand anticipatethe shapeofthe building. It is worthwhile to ask severalpeople to develop diagrams, thereby ensuring a wide selectionof possibilities.
82
Facilities Planning
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Space calculation Spaceis the third fundamental element of a space plan. It is a limited resource;there is only so much spaceunder a roof, on a site, or in a department.Whether the space land on a site or space a building, is in it is usually expensive Although spaceis three-dimensional, most spaceplans ignore the vertical dimension. This is acceptable all but a few situations. in Most layouts attempt to optimize the useof spaceaswell as its arrangement.A complete space plan requiresnot only the location of SPUs, but their size and shapeaswell. The spaceoccupiedby SPUs usually prevents the designer from honoring all affinities
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TABLE 3.3
84
Facilities Planning
simultaneously. Benveen them,itforcescompromises above andbeyond thosearrivedat in the configurationdiagram.The space needs SPUs of may distort evena neadyperfectdiagram. Task03.16 calculates ofthe requiredspace eachSPU,usually size for in square or square feet meters. Calculationofspacerequirements uses one or more of six methods.These methods are:elemental calculation. visual estima ting, transformation, space standards, proportioning,or ratioforecas ting. Table 3.3 shows Cosmos Products' spacerequirementsand how the analysts usedseveral methodsfor the calculation. Elementol colculotion This method, illustratedin figure 3.30, startsat the most detailedlevel.Each pieceof fumiture or equipmentassigned an SPU is measured. to These dimensionsarethen addedtogetherfor the total amount of space. for Space aisles, miscellaneous storage, otherneeds also or are indudedin thesum.This addedspace often is a percentage the basicequipmentspace. of Elementalcalculation simpleandstraightforward. is However,it has its limitations. For one, it takesconsiderable time and effort. Uncertain forecastscan make it difficult to determine how much furniture or equipmentwilloccupythespace. Elementalestimatingis primarilya shortterm methodology.Most industriesuse it for one to three yearsin the future.Beyondthat, other methodsareequallyandperhaps more reliable .
DevelopEquipment lnformation Capacity/Process/ Saleslnformation
Figure?,30 - Computing Spoce, Elementol Colculation
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Figure 3.33 - Computing Space, Standard Dato
Handling\Storage43 34"/o
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New Facility
Figure?.34 - Computing Space,Proportioning
88
Facilities Planning
Proportioning
Certain typesofspacecalculationuseproportions effectively.The space for a given SPU comes from the calculation of another space.For example, aisles mightbe apercentage ofproductionspace, conference or room spacemay be a portion of office space. Figure 3.34 illustrates. Proportioning works well when the history to support it exists.It usually applies to only a few types of space,however. Proportioning requireslittle effort. Ratio forecasting Ratio forecasting useshistoricaltrendsto forecast space. this method, In business parameters and spaceare correlatedover time. Such ratios may changegraduallyover the years.The analystthen projectsthe trend of this ratio into future yearsand usesthat projection to calculatespace. Ratio forecasting,which is based on historical data, is most appropriatefor long-term site plans.It haslimited usefor short-term spacecalculations.
The spaceplan primitive

The next stepin the progressionis the space plan primitive, which involves adding spaceto the configuration diagram(s). The spacerequirements comefrom the calculations space and summary(Task03.16). The Cosmos Productsspace plan primitive is illustratedin figure 3.35. The spaceplan primitive begins with a configuration diagram. Using an appropriate scale,designersplace a squareor rectanglewith the SPUs calculated areanear each SPU symbol. In step 2, designers either move eachspaceblockunderneath the SPU symbol or move the SPU symbol over each space block. As the space plan primitive develops,itwill haveto be stretchedto accommodate space the without overlaps.The result should be a compact arrangementthat honors the affinities as closely as possible. Although designers should begin anticipating a building shapeat this time, they should not strive for a final layout.
Constraints
Many factorsthat affecta macro-layoutdo not fit the conceptsof SPUs, space, and affinities.These are constraints.Someexamples are: . Column spacingof 32 feet restricts the placement of aisles and someequipment. ' High electricalload restricts the placement of heat treat ovensto certain areaswith adequateelectrical service. . A cold climate dictates that dock doors should not have
89
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Figure3.35 - CosmosSpaceplan primitive
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90
Planning Facilities
northern exposure. ' zoning requirements specifythat docksnot facethe street; ' floor loading restrictsthe placementof certainequipment; ' explosion hazard dictates that ahazatdouschemical room havean explosionvent on an outsidewall; and ' the companypresidentrequests window for his office' a (Task03.19)is shownin figure3.36. A form for identif ing constraints are the The SPUsarelistedon the left and across toP' major categories
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Figure3.35 - Constraint Summory
91
identified. Theseinclude: site conditions,utilities, handling methods, personnel, proceduresand controls, shape rario, and oihers. The accumulatedproject documentationfor each spu and categoryare reviewed,and the constraintsare listed. A bullet or check associates each constraintwith a particular sPU. some constraintsapply to all SPUs. In this situation the bullet goes in rhe "general" rtw. The following is a descriptionof CosmosProducts.orrftrairrts: Aestheticy'The nafure of cosmos products is artistic. Therefore, the aesthetics the building and surroundings important. cosmos of is wants to presentitself well to customersand other visitors. A pleasant surroundingwill help aftractthe best commercialartists.The aesthetics issueappliesto shippingand receivingareas, which areoften unsightly.It alsoappliesto the artwork, administration,and employee service"areas. TruckAccess-This anothersite condition. Trucks need access is to both shippingandreceiving. cosmos is fortunatein this respect. The site hasgood access both the north and south sides. on Forkrrucks--Handling in someareas uses forklift trucks.Adequate aislewidths on the main aisles selected and departrnental aisles necessaq/. are c art s-s mallcartsconveymaterialsin manyareas. Here, narrower aisleswill suffice. EasyAccess-This a personnel is issue. Administration, employee service andmaintenance requireeasyand s, all inviting access forpeople. Press Lines-Aspect ratio refersto the relativelength and widtl of SPUs. Silk-screenprinting operationsrequire a mini*mumlenqth to accommodate long press the lines. Utilitier-Certain sPUs requirewater,sewer, and air conditioning. Next, this constraint summaryand the space plan primitive will be usedto preparespace plan options.
Designing macro-space-plans
plan primitive now must fit into a building outline. The ]h9.space building may exist or it maybe a proposedstrucrure. Preparingspace plan optionsbeginswith overlayingthe building _ with a space plan primitive. The space blocksare shapedto fii :":]tl. building walls, columns,and other featur.r. Th" constraints ,r.--ury should be consultedduring the placementof eachSpU. F or eachspace plan primitive, thereprobablywill be several viable _ layouts.All variationsof the primitives, including mirror imagesand rotations,should be examined. I_tmay be difficult to match space, honor constraints, and design an orderly arrangement. general,designers In should strive for clean, rectangularareas.spacerequirementsmay have to be compromised.
92
Planning Facilities
The original spacecalculationsare usually flexible within a reasonable range-10 to 20 percent. options(Option 1) from the Cosmos One ofthe macro-space-plan in figure 3.37. This option is based on the project is illustrated space plan using which calledfor a product-focused strategy, operations and focusedfactories. cellularmanufacturingtechniques to betweenthe two original buildinqs is now enclosed The soace "requiremen; and also to allow the increasedspace u..o--od"te
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Figure3.?7 - Option I of the Mocro-SpocePlons for the CosmosProject
93
improvedmaterialflow betweenthe buildingsand to the shipping and receivingdocks.Each of the old buildings hasbecom. u ,.-ilfoi,rr.d f?,:oty,with roll productson the left and commerciar productson the right. In the center are slit-and-sheetoperations,-hi.h serveboth focusedfactories.servicefacilitiessuchasquality assurance, employee services, and maintenanceare also in u i.ntr"l location. Ariwork, administration,and employee services the street.This satisfies face the aesthetic constraints.
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Figure?.38 - Option 2 of the Mocro-Spoceplans for the Cosrnosproject
94
Planning Facilities
about the productSome Cosmos managershad reservations strategy adopted in Task 03.10. Therefore, an additional focused approach basedon continuing the process-focused macro-space-plan 'n", pr.p"..d. The resultwas ption2 (fig. 3.38),which mitigatedtheir O and the .orri.rnr and demonstrated relativeadvantages disadvantages of processand product focus. It was preparedas a second,parallel statement strategy startingfrom Task03.10.The process-focused proJect requirements. produceda different set of sPUs, affinities,and space Option 2 retainsthe aislesystemand many of the good features of Ontion 1. Functional and semi-functionalareassuch as shipping, They are and artwork havemany of the samecharacteristics. receiving, areas SPUssuchasstorage often in the samelocation.Somefunctional names, need significantly more space.Processareas change their Option 2 spacerequirements,and other characteristics. characters, more spacethan option 1. This additional needsabout 10 percent on spaceis in a building expansion the eastside. therewill be threeto six projects, For most macro-space-planning fundamentally different options and severalvariations. using the existinglayout-or simply doing nothing*is alwaysan option' Even plan is no longerviable,it makesa convenient when the existingspace projectteamdeveloped The Cosmos forgaugingimprovement. baseline other options,which are not includedin this book. several Aisles Aisles present specialproblems.They should be straight and wide .r,o.rgh fot two-way traffic. Usually, the best approachidentifies main SPU. Designersthen place them on the macroaislesas a separate Departmental aisles,on the other hand, are within the space-plan. spacecalculationsfor each SPU. Aisles adjacentto walls are often they serveonly one side. because undesirable An alternateapproachincludes all aislesas Part of the SPUs' Designersthen place sPUs on the plan, recognizingthat those main generallywill follow the SPU boundaries. aisles plansin figures3.37 and3'38 Cosmosspace ihe straightforward calculationand every havea separate the first method. Main aisles use A aisle. centralloop allowscontinuoustraffic to SPU is adjacent a main prep and part screen in both directions.A singledead-endaisleserves will allow subsequent operation.This aislesystem of the silk-screening without disturbing the basicflow pattern. layout changes
issues key materialhandling ldentifying

Material handling and layout are intertwined. The best handling
95
systemdepends the space on plan and the bestspace plan may depend on handiing methods.often, a layoutthat doesnotworkwitir manual handling becomesviable with automated or conveyorizedhandling. This presents a chicken-or-the-egg problem. Are handling equipment and containers selectedbefore the rayout? Is the layout designedfirst and the handling systemthen serected? usually, the best approach is to design the layout assuming conventionai p"rh"p, manual handling. This optimizes material flow and often eliminates the need for complex and expensive handling systems. particular handling issuesthat drasticaly affect space . lowever, plan selection must be identified. For example, pneumatictransport a systemhas different requirementsthan a systemthat usesforktrucks for conveyingbulk material. one space plan might be the best for fork truck handling, while another might be bestfotih. prr..r-atic system. A space plan shouldbe designedand selected bifore the handling systemis finalized. To do this, however,may mean assuminga general tlpe of handling systemprior to layout design. To accomplish Task03.20, examine."ih ofthe proposedlayout options and ask the following questions: . What types of handling systemsareviable for eachoption? . Would a particular handling system affect one layout option more than another? . Would a different handling systemallow new layout options? lf aparticular handling systemaffectsall layout opiior^ equally, , selection ofthat system not a key issue. sucha case, evaluation is In the ofthe options is the next stepin the space plan. Ifa particular handling systemwould give one option a significant advantage over the others, such selectionis a key issue.In such a case,furthir investigationis recommended, perhaps accompanied a preliminarydesignand cost by estimate for the handling system.This approachallows -"rr"g.rrrerrt to selectthe bestlayout at the macro-levelwithout completelydeiigning handling systemsfor all the options.
Deciding the best spaceplan on

Several vi-abfeoptions now exist for the macro-space-plan.Many others probably have alreadybeen screened out during ."ili", parts of the designprocess. The designershould narrow the choice to ihr.. to six significantly different options. Each option may haveseveralminor variations.Management and othersinvolved in the project then decide which to use.This is done for several reasons: ' managementoften criticizes the engineering staff for tunnel vision. Engineersmay lock onto an ideaearlyin a project.A
96
Planning Facilities
wide varietyofoptions showsthat the designeror designteam has considereda wide range of possibilities; ' asking for a selectionfrom among options is usually more palatablethan asking for approval ofa preordained design; . the processof decision-making builds consensus'suPPort' andionfidence. This Preventslater attemPts at redesignby those who felt left out of the processland ' the decision processmay Seneratehybrid plans, which are often superior to the original designs. Figure 3.39 shows the procedure for evaluation. The spaceplan "input" listed in Block 1. Block2 assembles decisionteam. a options arethe original objectivesIn Block 4, the team reviews the project's These original objectives may be specific, directly measurable,and
SpacePlanA
Figure3.39 - Computing Space,VisualEstimotion
97
applicable to the evaluation, or they may be global and difficult to measure.They may require sub-objectivesfor a good evaluation.The information developed during information gatheringmayhavemodifi ed the objectives.The debatesduring the strategydevelopment also may havechanged objectives. The decisionteamadoptsthe originalobjectives or revises them as appropriate. Flowing from the objectivesaredecisioncriteria. These arefactors that the team canevaluate directly-either qualitativelyor quantitatively. They are the basisfor the decision.Examplesof decisionfactorsare: material handling savings, improved communication, OSHA compliance, improved teamwork, initial cost, operating cost, quality enhancement,improved delivery reliabiliry, improved delivery speed, and ability to use a particular technology. A decisioncriterion may be a decideror a qualifier. Qralifiers are golno-go criteria: a spaceplan meetsthe minimum requirementsor not. Performance beyondthe minimum creates additionalbenefits. no Performance below the minimum disqualifies the space plan from consideration. For example,OSHA compliancemight be a qualifier. Layouts that meet the requirementsare acceptable. Layouts that go beyond OSHA requirements bring no perceived additionalbenefit. Deciders bring additional benefits for each increment of performance Improved cost,for example, usuallya decider.Option . is B mayhave an operating cost advantage over Option A. Although both space plansmeet the budgetedcostimprovementobjectives, Option B is the preferredspace plan on that dimension. Block 3 containsthe tools for evaluation. addition to macroIn space-planning, thesetools apply to other levelsof facility planning. Among the common tools for evaluationare: material flow analysis (MFA), financial analysis,ranking, instinct, positive-negativeinteresting(PNI), decisiontree analysis, weightedfactor analysis. and MFA examines large-scale the materialmovementbetweenSPUs. It developsa measureof associated cost and difficulty. Improved communication and coordination are corollary benefits of improved material flow. Specific techniques in this category include transport work, flow diagrams,and D-F plots. For the most part, these are quantitativemethods. Financial analysisincludes estimating,return on investment cost (ROI), and payback.These methods are quantitativel however, they often involve qualitative judgments aswell. A simpleranhing,from most preferredto leastpreferred,is often an effective tool. The ranking can use qualitative factors, quantitative factors.or both.
98
Facilities Planning
The gut-level reactionor instinctof knowledgeable people has value.Although it should rarely be usedasa primary evaluationtool, it may uncoverunseenopportunitiesor problems. PNI analysisis a variation of the brainstorming technique. It examineseach spaceplan factor, focusing first on the positive features and then on negativefeatures.Finally, it focuseson those that are neitherpositiveor negative-things that areinteresting unique.This or analysis, was developedby Edward DeBono, an expert on thinking processes. is simplebut effective. often brings out hidden features It It and builds teamwork and consensus. Decision analysis usefulwhen a seriesof probableeventscan tree is affectthe decision. For example, which space plan is bestif a particular contractis won and, afterward,the overallmarket contracts? helps It evaluate cumulativeprobabilityofeach ofthe four possible the outcomes. Combined with financial analysis, is a quantitativetool. it Weigbtedfactor analysis bases decisionon a combinationof the a variousfactors,both qualitative and quantitative. is bestifthe factors It areindepe ndent,but this is not always possible. Somecompromisingof this principle is acceptable. first identi$, the factors, then decide Judges a weight for each,and, lastly,rate eachoption. In addition to the tangible and intangible categories, straregic issuesmay arise.These are usuallyqualitative.The consequences of strategic issues are often so far-reaching and so important they overshadow other factors.For example, all Option A might usea new technologv.This technologyshowsno immediatecostbenefit yet the introduction potentially could revolutionize the industry and place a firm far ahead ofothers.ShouldOption A be selected? This is a decision for top managers and cannot be made lightly. In weightedfactor analysis, judgesthat weigh the factorsmay the be different from those who rate the options. For example, top managementmay weigh the factorsbut leaveratings to specialists or operatingpeople. In physics, Heisenberg's uncertaintyprinciplestates that both the position and state of certain sub-atomicparticlescannot be known. Thit ir because process measurem.rri the of dirtort, either the position or state.A parallelphenomenonoccursin space planning.The process ofjudging and evaluation often leadsto other options.Thus, someor all of the space plans may changeasa resultof the evaluation process. Or, a hybrid space plan that features best parts of several the original options may emerge. Block 5 of the procedurediagramexamines decisioncriteria the and available tools. Two to four tools appropriate for the evaluation
99
should be selected. Block 6 evaluatesall options with respect to the identified qualifiers.Any option that fails to meet a qualiS'ing criterion drops from consideration. Block 7 evaluates optionswith respect the decidercriteria. the to New or hybrid options go on the list of available options. After evaluation,one option is selectedfor development.A decisionsummaryrecappingthe decisionprocess shouldbe prepared. The summaryand decisionmake up Block 10.
Evaluating Cosmos the spaceplans

The Cosmosdesignteam and steeringcommitteemet to evaluate the proposedspace plans.They decidedthat both the steeringcommitree and design team should participate in the evaluation. They first reviewedthe original projectobjectives. Thesecamefrom Task 03.01, "Plan Project": ' reducematerialhandling cost; . reduceoperatingcosts; . deliverproject under budget of$800,000; ' improve deliveryperformancel . improve teamwork,communication,and quality; ' allow for new products; and ' accommodate 1998 production. From the original objectives, they derivedthesedecisioncriteria: D Material flow D Direct operatingcost qD Initial cost D Delivery D Communication D Teamwork D Qrality D New product adaptability Meets 1998 production requirement a_ OSHA/EPA Compliance a_ "Q A notation designates qualifiers.OSHA,/EPA compliance the is necessary anyspace for plan.Thosethat fail to meetthis qualification are no longer considered. Similarly,the 1998 production requirement is a qualifier. Initial cost is both a deciderand qualifier. A spaceplan must meet the $800,000budgetlimitation to be considered; this is the qualification. Initial costbelow$800,000 abenefit;this is the decider. is "D." All the other criteria are deciders, denotedby a
100
FacilitiesPlanning
The Cosmosteam chosePNI, MFA, cost estimating,payback, and weighted factor analysisas the tools for evaluation. They analyzed materialflowfirst andthen usedthe resultsto assist with the costestimating.In Step 1 ofthe MFA, they developedthe flow diagramsillustratedin figure 3.40. These diagramsshow where the flow complexityfor the existing
I Oprlon# I ProduclrFocused pacePldn S
Optlon #3 Existlng Lagoul
Figure 3,40 - Moteriol Flow Evaluotion
101
layout is greatest.Option 2, a revisedfunctional layout, improves the flow complexity and shortensflow distance.Option 1 improvescomplexity and firther shortensthe total distance. The flow complexityindex (FCI) counts the frequencyof flow crossingson the diagram. Option t has an index of 0, Option 2 has an FCI of 4, and Option 3 has an FCI of 6. Visual examination of thesematerial flow chartsconfirms the increasingmaterial flow complexity from Option 1 through Option 3. Transportwork is the summation ofeach flow distancemultiplied by the flow rate. The units for Cosmos are EFUs per day. Table 3.4 is the spreadsheet used by the team to calculatedistance and transport
= fr'r
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TABLE 3.4
102
FacilitiesPlanning
The work for Option 1. The other options havesimilar spreadsheets. three options havetransportwork of 9,647,78,669,and 28,t31 EFUfeet per day respectively. Another measure of material flow is the frequency count for materialmoves.Option t has11 internal moves,Option 2has L4, and traveledfor the two representative Option 3has 2I. The total distance of productsis another measure. Options 1 through 3 have distances L,026,7,723, and2,735feet,respectively. The average number of trips per day is 119, 732, and !98. This analysis assumes that all trips use the EFU, an equivalent handcart,asthe means. the When implemented, layoutactuallywilluse severalmethods of handling. However, for estimating, the EF"[J assumptionis a reasonable approximation. Figure3.41is agraphicdisplayoftheMFAresults. Based every on materialflow measure, Option f. is significantlybetter than Option 2. Option 2 is significantlybetter than Option 3. Financial analysis Table 3.5 summarizes financialresults the threeoptions.Option the for 3-the existinglayout-maintains the status quo.For this reason, there is no change in either savingsor costs.Option 3 thus provides the baselinefor the financialanalysis.
2 5C0
7A 60 50
2.CC0
1 500
40 30 2A
1,000
500 10 0
IW(Fl EFU/Davr1000) Ir ps/Dav
fulro ^nnua Cosl 1$) FLI^ I UO 2n 131
,723 132
63 957
400
600
Figure3.41- Msteriol HondlingSummory
TheMacro-Space-Plan 103 The center building is the new constructionbetween the two existingbuildings.The team estimated costat $35 per square the foot. The eastextensionfor Option 2 will cost about $30 per squarefoot because doesnot haveloading docks. it Option 2 wlll need new equipment,valued at about $23,000, which will cost $21,000 for installation. Option 3 requires more equipment becauseof its cellular nature. Rearrangement costs are $45,000and $28,000,respectively, Options 1 and 2. for The cellularapproach Option l will requiresignificanttraining of and additionalconsultingfeeswhen comparedto Option 2. The team alsoanticipateda more difficult start-up. A contingencyof 15 percentthat allows for unplanned costsis appliedto the implementationofboth newoprions.Either Option 1 or
Initial CashOutflows Description Center Building East Extension Equipment Installation Rearrangement Training Consulting Startup Contingencies Total AnnualInflows Description
Option 1 Amount $161,000 $0 $176,000 $49,500 $45,000 $32,000 $43,500 $100,000 $91,050 $698,050 Option 1 Amount
Option 2 Amount $161,000 $307,800 $23,000 $7,800 $28,000 $0 $20,000 $45,000 $88,890 $681,490 Option 2 Amount $750,000
qE FFA
Option 3 Amount
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Option 3 Amount $0 $0 $0
Increased Sales $750,000 Material Handling $22,885 DirectLabor $132,000 Other lndirect $75,000 Working Capital $140,000 Ouality $230,000 Total $1,349,885 Initial Inflow Inventory Years-To-Payout $1,750,000 0.23
$10,000 $37,500 $0 $20,000 $826,058 $0 0.82
s0
$0 $0 $0
$0
nla
TABLE 3.5
104
Facilities Planning
Option 2 will bring increasedsalesand production. The net profit for this is estimatedat $750,000. Material handling savingscome from the decrease handling in and transport work. Using the data from the material flow analysis,the teamestimated costsavin of fi22,885peryearfor Option 1 and $8,558 gs for Option2. This assumes minutesofloading and dollarsperyear four unloading for eachtrip. It assumes average an transportspeedof 150 feet per minute and an $18.50hourly labor cost. It also assumes that each move has an empty return trip. Calculations for direct labor, quality, and other indirect labor savings lessrigorous,but the teamdeveloped are conservative estimates from their experiences. Option t has a significantinventory reductionof ff7.75million. This is a one-time savings lessens working capitalrequired. and the The intereston this, at 8 percent,amountsto $140,000per year. The payoutfor Option 1 is 0.23 years. The payoutfor option 2 is 0.82 years. Both payoutsare quick. There is no payout for Option 3 because there is no initial investment. An ROI analysiswould be more rigorous than the payout method. However, the fast paybacks Options 1 and 2 indicate that the increased for complexityand effort requiredfor an ROI analysis unnecessary. is The teamreviewedthe decisioncriteriato seeif the options met all qualifiers. All three options met the regulatory qualifiers. All three options met the budgetary qualifier. Only Options 1 and 2 will satisfr 1998 production requirements.This signifies that doing nothing, Option 3, is not a viablecourse action.Option 3, however,hasbeen of useful as a baselinefor improvementestimates. Positi ve -n eg ative -i ntere sting Having completed the quantitative analyses, evaluationgroup then the rurnedto PNI analysis. Meetingwith a facilitator,theyfocused each on to option and eachaspect turn. They usedbrainstormingtechniques in develop the positive, negative,and interesting points for each option. The resultsare in table 3.6. Weighted factor analysis With the quantitative and qualitative analysis complete, the team rurned to weighted factor analysis,where analysis and opinion are mergedinto a singledecision. Figure 3.42 summarizes weighted factor results.The team the first reviewed each factor and confirmed the definition. Through discussion, the membersreacheda consensus the weights. Each on
TheMacro-Space-Plan 105 factor had a weight betweenone and ten. Operating cost, quality, and delivery receivedhigh weights (ten and nine).Thesefactorshavethe most direct effectin the marketplace. The group believedthey had the highest strategicimportance. Material flow, communication,and teamwork received weights in the seven eightrange. to Thesefactors somewhatrelated. are Good material
PNlAnalysisSummary
Option 1 Positive
BestMaterial Handling Simplif ication Neat & CleanGeometry Less Inventory Better Teamwork FitsW/TOM FasterThroughput
Factar Racnnnca
Option 2 Negative
HighTraining Required It MightNot Work Difficult Adjustment Higher Risk
Option 3 Interesting
LessSpace LessCost Faster Payout BestAnnual Cost Easier Supervision Employee Involvement Nice Aisle System Uses Current Software w/Kanban Production Control Option I Positive Reduced Material Handling Nice Aisle System Neat& Clean Geometry Easy Personal Adjustment Lotsof Space Option 3 Interesting LowRisk Allows Cellular High Cost Transition Later Allows Cellular Procrastination NoThroughput lmprovement MoreSpace Required LowerPayout Higher Annual Cost
I aqc Fmnlnrroo
Involvement DoesNot Assit TOM LessTeamwork
TABLE 3,6
106
Facilities Planning
flow improvescommunicationand simplifiesoperations. alsoreduces It interdepartmental problems.Betterflow andbettercommunicationenhance teamwork.Material flow alsoties to operatingcost. The team then examined material flow and compared the three options. With quantitative data from the MFA, they quickly achieved consensus the ratings. Option 1 receivedan A for material flow, on
Weighted Factor Analysis

to
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1O7
Option 2 received I, and Option 3, the baseline, an received U. The a team repeated this process the other factors. for Delivery had somequantitativebasis. The number and length of moves from the MFA indicated that delivery would improve under Option 3, whereasdelivery perhapswould see slight improvement under Option 2. Qrality, new products,teamwork, and communicationhad no quantitativeanalysis. Nevertheless, discussion a reviewof the PNI and analysis brought a consensus among the team members. They then multiplied each factor weight by each raring and totaledthe score eachoption. Option 1 received for 194points,Option 2 received94 points, and Option 3 received18 points. From those scores, group concludedthat Option 1 was bestby alargemargin. the The team could have begun the weighted factor analysis by weighing eachfactor individually and rating eachoption. They could then average comparetheir resultsasa basisfor discussion. and This is a usefultechnique when it appears individualshavewidely differing that views. Severalcomputer programs are availablefor this type of multil factor decisionmaking,but the most important resultsderivefrom the discussions. most situations, manualcompilationlike that in figure In a 3.42 rs sufficient.
Conclusion
This completes discussion macro-space-planning. the of Many of the methods apply to other levels of spaceplan design. Material flow analysis, example, an important tool for Level 2, "Site Planning." for is Weighted factor analysisappliesat all levels. For most facility planning, the macro-space-plan the most is important planning level. It is where strateg.y defined and the first is stepstoward implementationare taken. It is the level that usuallyhas the greatest impact on a firm's competitiveposition. For thesereasons it hasbeen the sublectof the most subsrantial discussion this book. in

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Chapter 1 Facilities a in Environment Changing

Facilities a changing in environment

Facilities A Changing In Environment

Figure1.3- Socio-Technicol Systerns (Eric Trist, 1952)

Figure1.4- Spoceplonning Approoches

Facilities A Changing In Environment

The industrial enginee/srole in facilityplanning

Chapter2 The Framework for Facilities Design

Figure 2, | - The Levels of Space Plonning

The Framework Facilities For Design

Mission Statement Midwest Plant & Warehouse

Mission Statement Brussels Warehouse

Figure 2.2 - Level | - Site Location

The FrameworkFor Facilities Design

El e ctro nE n g i n e e ri n g o rp. C M a cro -L a yo uOp ti o n A t

Macro-Layout OptionB Macro-Layout OptionC

TheFramework Facilities For Design

F t k l t fs E Ii i ' | g ' - : /3 - - '

'. l>il:'-,/', *aii dd a L i iE5.t f E

Workcell Operstions Plan

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Figure2.5 - Level5, Worl<stotionLoyout

The Framework Facilities For Design

tl ill lr.#:l IV l-6--l V lsfiiii,l

Figure 2.7 - Time Phosing the Design Leyels

The FrameworkFor Facilities Design

The spaceplan elements

Figure2.8 - Elementsof o Spoceplan

Design The FrameworkFor Facilities

Vowel Scalar Manual CAD Descriptlon Rating Rating Graphic r a p h i c Color G

Figure2.9 - Affinity Conyentions

Figure2.10 - Usual Affinity Distribution

The FrameworkFor Facilities Design

Figure2.1I - Optimizing o Configurotion Diogrom

Figure3.1 - Macro-Spoce-plon Model Project

Planning project the

Figure3.2 - Focility Re-Engineering

2 GroupedProdud ftofile . Dollars . Pi@es . OtherLhib

Figure3.3 - Tosk3.01, Product-Yolume Anolysis

Figure 3.4 - Soles HistorylForecost

: sum CosmosProductsProduct-volume mary

Figure3.5 - Product Profile

Figure3.6 - Task 3.03, AnolyzeCurrent Process

processsummoty Existing CosmosProducts:

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06 12wks t. :lr'er 010h. sLr 03: h. ]

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Figure3.7 - Tosk?.03, ProductProcess Chort

Figure3.8 - ProcessChon for a Multi-color, Die-cut Decol

Figure 3.9 - lnventory HistorylForecost

Average InventoryIn EquivalentStorage Units

Purchased N,4atls 237 7y.

Work-ln-Process 628 18%

Figure3.10 - lnventory Analysis

summary lnventory CosmosProducts:

Figure3.1I - ExistingSpoce Diogram for Cosmosproducts

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