Facilities Planning and Design

1405-332

Lec 1

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 Introduction
• Layout planning is determining the best
physical arrangement of resources within a
facility.
• It may be defined as a technique of locating
machines, processes and plant services within
the factory so as to achieve the right quantity
and quality of output at the lowest possible
cost of manufacturing.

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 Facility Planning
The physical arrangement of production
machines and equipment, workstations,
people, materials, and material handling
equipment.

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 Definition of Facility Planning
Facility Planning determines how an activity’s tangible
fixed assets best support achieving the activity’s
objectives.
Examples:
a. In manufacturing, the objective is to support production.
b. In an airport, the objective is to support the passenger
airplane interface.
c. In a hospital, the objective is to provide medical care to
patients.

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 What are facilities?
• Fixed assets like building structures and
inanimate resources that support the
operations of a given activity.

• Facilities put together with humans, $ and/or

materials, energy result in the activity

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 Examples of Facilities
• Production: any discrete parts or process industry facilities
• Health care: hospitals, clinics, rehab centers, nursing home
• Education: schools, colleges, day care centers, libraries
• Food: restaurants, fast-food places, banquet halls
• Commercial/Residential: shopping malls, office buildings, banks,
houses, hotels, motels
• Government/Public Services: courthouse, post office
• Military: barracks, control rooms
• Transportation: airports, train stations, bus terminals
• Public assembly: stadium, auditoriums, theaters
• Religious: Mosques, temples, churches
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 A Dentist Office

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 A Research Office

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 A Manufacturing Facility

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 Facilities Planning
• Determines how an activity's tangible fixed assets
best support achieving the activity's objectives.
– Planning determines course of action ahead of time so
subsequent decisions can be made efficiently
– Design more technical details that with a use of model,
describe the implementation of the plan
• Disciplines involved in facilities design
– Engineering: civil, electrical, mechanical, industrial
– Architects, consultants, contractors, managers, real-
estate people, personnel from the activity, etc.

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 Variety of Facility Planning (FP) Tools
• Facility Planning (FP) tools vary from
checklists, cookbook type approaches to
highly sophisticated mathematical modeling
approaches.

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 Applications of Facilities Planning (FP)
• a new hospital,
• an assembly department,
• an existing warehouse,
• the baggage department in an airport,
• department building of IE in EMU,
• a production plant,
• a retail store,
• a bank,
• an office,
• a cinema,
• a parking lot,
• or any portion of these activities etc…
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 Applications of Facilities Planning (FP)
• Facilities Planning (FP) determines how an
activities tangible fixed assets best support
achieving the activity’s objectives.
i.e. what is the objective of the facility? How the
facility achieves that objective?
• In the case of a manufacturing firm:
FP involves the determination of how the
manufacturing facility best supports production.
• In the case of a hospital:
for a hospital determines how the hospital facility
supports providing medical care to patients.

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 Continuous improvement FP cycle

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 FP Hierarchy

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 FP Hierarchy
Facility
Location
Structural
Design
Facility
Planning
Facility Layout
Design Design

Handling
System Design

Location: is the placement of a facility with respect to customers, suppliers, and

other facilities with which it interfaces.
Structure: consists of the building and services (e.g., gas, water, power, heat, light,
air, sewage).
Layout: consists of all equipment, machinery, and furnishings within the structure.
Handling System: consists of the mechanism by which all interactions required by the
layout are satisfied (e.g., materials, personnel, information, and
equipment handling systems).
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 FP Hierarchy
• Facilities Location
Location of the facility refers to its placement
with respect to customers, suppliers, and other
facilities with which it interfaces.
• Facilities Design
Design components of a facility consists of the
facility systems, the layout and the handling
systems.

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 FP Hierarchy
• Facilities Systems:
Consists of the structural systems, the atmospheric
systems, the lighting/electricity/communication
systems, the life safety systems and the sanitation
systems.
• Layout:
Consists of all equipment, machinery and furnishings
within the building.
• Handling Systems:
Consists of the mechanism need to satisfy the
required facility interactions.
e.g. for a manufacturing system:
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 Facilities Planning
• Facility Systems – the structure (of building),
power, light, gas, heat, ventilation, air-
conditioning, water and sewage needs.
• Layout – the production areas, related support
areas, personnel areas.
• Handling Systems – the materials- personnel,
information, and equipment to support
manufacturing.

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 Facilities Planning
• Facilities Planning for specific types of
facilities:
• a) Manufacturing plant
• b) Office
• c) Hospital
• d) Emergency room

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 Facilities Planning

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 Engineering Point of View of Facilities Planning

• Location of the facility: placement of the

facility w.r.t customers/suppliers
• Choice of resources
• Layout of resources/components
• Performance evaluation
• The design process ends when the
implementation phase of the physical design
begins
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 Five Types of Facility Design Projects
1. New Facility – fewer restrictions and constraints on
the layout since it is new
2. New Product – integration of a new product into the
existing process and layout
3. Design Changes – incorporate the impact of design
changes into the manufacturing process
4. Cost Reduction – redesign the existing layout to
facilitate cost reduction programs and ideas
5. Retrofit – similar to a new facility layout except with
the constraints present

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 Facilities Layout Goals
• Money
– Minimize unit production cost. Minimize project
cost. Optimize quality.
– Promote the effective use of (a) people, (b) space, (c)
equipment, and (d) energy.
– Reduce and eliminate excessive inventory.
– Achieve the production start date.
– Build flexibility into the plan.
• People
– Provide for (a) employee convenience, (b) employee
safety, and (c) employee comfort.
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 Facilities Planning Process

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manufacturing
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 Facilities Planning Process

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HospitalDr.facilities.
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 Significance of Facilities Planning

Cost of design changes during a project.

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 Significance of Facilities Planning
1. Since 1955, approximately 8% of the gross national product
(GNP) is spent in new facilities in the U.S. :
Industry GNP %
Manufacturing 3.2
Public Utilities 1.6
Commercial 1.5
Communication 1.0
••• •••
Total 8.0

2. It is estimated that 20 to 50 % of operating costs within

manufacturing are attributed to material handling. It is
generally agreed that effective facilities planning can
reduce material handling costs by 10 to 30 %.

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 Significance of Facilities Planning
• Majority of an organization's capital investment is in facilities -
- 8% of GNP ($250 billion) spent annually of facilities.
• Single most important cause of high material handling costs is
lack of strategic facilities planning
• Material handling account for 20 - 50% of operating costs in
manufacturing
• Effective material handling can reduce costs by 10 - 30%
• Long term effect: flexibility, expandability
• Environmental implications: hazardous waste disposal
• Safety, convenience, appearance - influence worker morale
• Lead to economic development

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Strategic Facilities Planning Issues
1. Number, location, and sizes of warehouses and/or
distribution centers.
2. Centralized versus decentralized storage supplies,
raw materials, work-in-process, and finished goods
for single- and multi-building sites, as well as single-
and multi-site companies.
3. Acquisition of existing facilities versus design of
model factories and distribution centers of the
future.
4. Flexibility required because of market and
technological uncertainties.
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Strategic Facilities Planning Issues
5. Interface between storage and manufacturing.
6. Level of vertical integration, including "subcontract
versus manufacture" decisions.
7. Control systems, including materials control and
equipment control.
8. Movement of materials between buildings, between
sites.
9. Changes in customers' and suppliers' technology as
well as firm's own manufacturing technology and
materials handling, storage, and control technology.
10.Design-to-cost goals for facilities.
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 Facility Planning Objectives
1. Support the organization's mission through
improved material handling, materials control,
and good housekeeping.
2. Effectively utilize people, equipment, space, and
energy.
3. Minimize capital investment.
4. Be flexible and promote ease of maintenance.
5. Provide for employee safety and job satisfaction.

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 Engineering Design Process
• Typically, design problems do not have well-defined,
unique, optimum solutions. We are interested in
obtaining a satisfactory solution.
• General Procedure for Solving Engineering Design
Problems
1. Formulate the problem.
2. Analyze the problem.
3. Search for alternative solutions.
4. Evaluate the design alternatives.
5. Select the preferred design.
6. Implement the design.
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 Application of the Engineering Design
Process to Facility Planning
1. Define (or redefine) the objective of the facility:
Specify quantitatively the products to be produced or service to
be provided.
2. Specify the primary and support activities to be performed in
accomplishing the objective:
Requirements for primary activities include operations,
equipment, personnel, and material flows.
3. Determine the interrelationships among all activities:
Both qualitative and quantitative relationships should be
defined.
4. Determine the space requirements for all activities:
These are determined considering the equipment, materials, and
personnel requirements. Dr. Yehya Mesalam
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 Application of the Engineering Design
Process to Facility Planning (cont.)
5. Generate alternative facility plans:
Including alternative facility locations and alternative designs
for the facility.
6. Evaluate alternative facility plans:
Determine the important factors (see list of factors). For each
candidate plan, evaluate if and how those factors will affect the
facility and its operations.
7. Select a facility plan:
Cost may not be the only major consideration.
Use the information in step 6 to determine a plan (pairwise
comparison is a good ranking procedure).

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 Application of the Engineering Design
Process to Facility Planning (cont.)
8. Implement the facility plan:
Considerable amount of planning must precede the
construction of a facility or the layout of an area.
9. Maintain and adapt the facility plan:
The facility plan must be modified as new requirements are
placed, e.g., new energy saving measures, changes in product
design may require different flow pattern or handling
equipment, etc.
10. Redefine the objective of the facility:
Similar to step 1.
Changes in product design and/or quantities may require
changes into the layout plan.
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 Production Systems
CUSTOMERS

INPUTS
Conversion Process
*Workers OUTPUTS
*Managers
*Equipment *Operations *Goods
*Facilities *Transformations
*Materials *Services
*Energy *Activities
*Information *Interrelationships
*Environment

Information feedback on performance

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 The Enterprise Design Process
OPERATIONS DESIGN
PRODUCT DESIGN PROCESS DESIGN
MARKET RESEARCH
AND SALES
FORECASTING Work Meth. & Stds.
Material & Process Tool & Equipment
Manpower Reqts.
Requirements Specifications
Equipment Reqts.

FACILITIES DESIGN
COST DETERMINATION
PROCURE PROCURE
FACILITIES FUNDS
Facility Requirements
Financial
--Production
Requirements
--Auxiliary
INSTALL --Service
FACILITIES

MANUFACTURING

PRODUCTION
PROCURE MANPOWER
RE- STO-
PKG
CEIVING RAGE FABRICATE PRODUCT
OR PERFORM SERVICE
WARE- SHIP-
PROCURE MATERIALS HOUSE PING
ASSY

Energy
PHYSICAL
CUSTOMER SALES AND
DISTRIBUTION
MARKETING

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 A Simplified Diagram of a Production System

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 How to do process facilities planning?

• Systematic Facilities Planning fits in this

category:
– Common Sense
– Prior Experience
– Simple Numerical Methods
– Visual Representations

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 Information needed for a facilities planning
project

• What is to be produced?
• How are the products to be produced?
• When are the products to be produced?
• How much of each product will be produced?
• For how long will the products be produced?
• Where are the products to be produced?

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 How the product is produced
• Manufacturing process selection
• Make-or-Buy decision
• Economic analysis

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 Process Capacity and Flexibility
• Process capacity analysis
– Process planning
– Line balance
– Simulation study
• Cost and yield analysis
• Machine number selection
• Labor requirement and selection

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Product Volume vs. Product Variety

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 Thank you

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