Facilities Planning and Design

INE 425

Lec 1

1
 Evaluation Scheme
• midterm tests
• Assignment Problem in Class 30
• Lectures and projects
• Final exam 70
• Total 100 = 100%

2
 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.

3
 Facility Planning
The physical arrangement of production
machines and equipment, workstations,
people, materials, and material handling
equipment.

4
 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

5
 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: court house, IRS, INS, post
office,
• Military: barracks, control rooms
• Transportation: airports, train stations, bus terminals
• Public assembly: stadium, auditoriums, theaters
• Religious: Mosques, temples, churches

6
A Dentist Office
A Research Office
A Manufacturing Facility
 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.
 Variety of Facility Planning (FP) Tools
• Facility Planning (FP) tools vary from
checklists, cookbook type approaches to
highly sophisticated mathematical modeling
approaches.
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…
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.
Continuous improvement FP cycle
FP Hierarchy
 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.
 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:
 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.
 Facilities Planning
• Facilities Planning for specific types of
facilities:
• a) Manufacturing plant
• b) Office
• c) Hospital
• d) Emergency room
Facilities Planning
 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
 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
 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.
Significance of Facilities Planning
 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
Facilities Planning Process
Facilities Planning Process
 MANUFACTURING PRODUCTION
FACILITIES PLANNING is the focus of
this course
 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

 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
References
text book:
Tompkins, White, Bozer, and Tanchoco, 1996
"Facilities Planning," 2nd edition, Wiley, New
York (‫)ﻣوﺟود ﺑﻣﻛﺗﺑﺔ اﻟﻛﻠﯾﺔ‬

Required
Reading Chapter 1, and chapter 2 from this
book