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The effect of layout design on productivity: an empirical study Shahrul Kamaruddin* and Sok Yee Khoo
School of Mechanical Engineering, Universiti Sains Malaysia, Engineering Campus, Nibong Tebal 14300, Penang, Malaysia Fax: +604 5941025 E-mail: meshah@eng.usm.my E-mail: khoosokyee@gmail.com *Corresponding author
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Introduction
A manufacturing system consists of workstations or departments, as well as resources like personnel, material and machinery which must be arranged to form a well-ordered system to maximise benefits. However, it is not an easy task to design best possible layout in order to achieve the desired goal of productivity and profitability, while at the same time ensure safety and satisfaction of workers (Gonzalez-Cruz and Gomez-Senent Matinez, 2010). Ramkumar et al. (2009) discussed the latest scenario in layout design, where manufacturing companies spend a significant amount of resources like time and money for designing and redesigning their facilities. This is because the design of a facility layout has a tremendous effect on the operation of the system and production that it houses. An effective facility layout can actually reduce from 10% to 30% of total operating expenses in manufacturing, annually (Singh and Sharma, 2006). Layout design is basically the arrangement of machines or workstations at production floor to provide smooth movement of resources such as raw materials and workers. An effective layout design is important for good manufacturing of products or delivery of services (Drira et al., 2007). As stated in Hassan (1995), the layout of manufacturing facilities used to be classified as job shop, flow shop and fixed layout. However, the
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emergence of group technology (GT) has added a new type of layout classification named as cellular layout. In an assembly-based industry, different types of layouts have been used, such as flow line, job shop and cellular layout. On the other hand, most of the manufacturing companies have faced the problem of inflexibility in their production system that subsequently made them unable to fulfil the customer requirements. Therefore, there is a need to investigate the capability of each layout type to adapt with the changes of headcount and number of models. In the present work, layout types that are being investigated are: flow line, job shop and cellular layout. Flow line is a layout that designs according to the sequences of process that need to be performed in order to produce a product. Usually, in a flow line, all jobs are processed by the same set of machines in linear fashion, from the first to last stage and one machine performs all the processing for each stage (Kurz and Askin, 2003). Therefore, each product type will have its own line and it is usually designed to produce a large number of outputs. The major concern in designing a flow line is to evenly distribute the total work of the line into relating workstations so that the bottleneck can be eliminated to improve the layout efficiency. Apart from that, optimal workers distribution plan is also important for the increased flow-line throughput and managed workload (Neubert and Savino, 2009). The latest researches on flow-line layout show the usage of simulated annealing-based approach (Arumugam et al., 2007; Laha and Chakraborty, 2010) and genetic algorithm (Besbes et al., 2010) in optimising the layout. Job shop design on the other hand groups similar activities, such as processes, functions or sub-assemblies into a shop. According to Tay and Ho (2008), this layout design is suitable when there are a wide variety of products but have low production volume. The flexibility of this layout is highest among the three layouts, where different types of products can be produced. However, the job shop is usually inefficient due to higher work in process (WIP) and backtracking. Cellular layout tries to combine the advantages of flow line and job shop. The cellular layout comes from the application of GT whose main idea is to identify and group machines with same contribution in production process (Mahdavi and Mahadevan, 2008). In designing a cellular layout, different machines or workstations to produce products with similar shape or processing sequences will be grouped into a cell. The worker utilisation of cellular layout can be increased because one worker can be assigned to more than one workstation. Therefore, the worker in a cellular layout should be capable in handling different kinds of machines or tasks. Cellular layout is also recognised as an efficient and effective way to improve productivity in a company by minimising material handling cost and minimising load unbalance in production (Hachicha et al., 2008). Based on these three types of layout, an empirical study is conducted in a radio cassette player production system. The aim of this research is to investigate the effect of model variability and headcount variability towards the flow line, job shop and cellular layout for a radiocassette player manufacturing process and select a feasible layout from it. The layouts are simulated and tested using WITNESS software.
Literature review
Layout design is basically the physical arrangement of elements such as workstations or machines in a manufacturing system. The aim of layout design is to provide smooth flow
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of workers, materials and information through the system. In order to meet this aim, layout design is considered as an important issue in designing any manufacturing system because it involves large amount of investment and any misjudgement at this stage will lead to losses to the company. El-Baz (2004) has stated the importance of facility layout design towards the productivity by saying an effective facility layout design reduces manufacturing lead time, increases the throughput and hence increases overall productivity and efficiency of the plant. Pugazhendhi et al. (2002) have defined flow line, where all jobs require processing on all machines and jobs have unidirectional flow with identical flow pattern. They also define the difference between pure flow line and general flow line. A pure flow line is characterised by the situation, where all the jobs are required to be processed on all machines; whereas general flow line is a case, where some or all jobs have missing operations on some machines; however, the sequence of machine visits is the same and is unidirectional for all jobs. Job shop on the other hand is characterised by a wide variety of products with variable routings and processing times. It is also called as functional layout with universal equipment, where production can take place as per customers specification in small batches. There are two dynamic circumstances that have to be considered; external dynamics related to rush orders, product mix, volumes demanded, etc., and internal dynamics related to machine breakdowns, production rates, operator absenteeism, quality problems and production yields. Land and Gaalman (1996) and Corsten and Gssinger (2004) have defined job shop as a special organisational form of production, where machines carrying out identical or similar operations are combined into one shop. A job shop is always preferred due to the large number of different product types that it can adapt. Production includes relatively small quantities combined with different working cycles and displays relatively strong fluctuation over a certain period of time. These conditions are particularly prevalent in order-driven production of single or small batches. One of the latest researches on job shop is related to the development and analysis of scheduling decision rules for dynamic flexible job shop production system by using simulation (Vinod and Sridharan, 2009). In the experiment conducted, it was found that some operation performance works efficiently on a primary machines but less efficient on other machine. This is modelled as a percentage increase in the processing time when an operation is performed on an alternate machine. The operations are measured based on mean flow time, standard deviation of flow time, mean tardiness, standard deviation of tardiness and also percentage of tardy jobs. The authors proposed six new scheduling rules for job shop layout and the simulation results reveal that the proposed scheduling rules provide better overall performance for various measures when compared with the existing rules. Many manufacturers have introduced modern manufacturing concepts in their manufacturing systems in order to meet customers requirements which fluctuate with time. One of the concepts that is said to have the capability in improving the productivity, quality and reduction in production cost is cellular layout. According to Drolet et al. (1996), cellular manufacturing (CM) is the result of the application of the so-called GT cell, a concept developed by a Russian named Mitrofanow in the 1940s. On the other hand, Molleman et al. (2002) defined cellular layout as the grouping of workers and machines into relatively independent cells, which are responsible for the complete manufacturing of a set of part types.
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On the other hand, Hassan (1995) has reviewed the development of the cellular manufacturing (CM), and furthermore developed a framework in developing the GT layout. In his review, he had mentioned three major steps in developing GT layout, which are formed from part families and machine cells; arrangement of the machines or workstations within each cell and determining the configuration of cells on the facility layout. However, the cellular layout problem is more concerned with the process of determining the best arrangement of machines or workstation within each cell. There are three common ways in workstation arrangements which are single row (flow line), multirows (job shop) and loop layout. The objectives in determining the best arrangement are the minimisation of movement cost and backtracking while maximising the throughput. Furthermore, there are nine steps suggested by Hassan (1995) in his framework for developing the cellular layout. The steps begin with preparing preliminary data, determining the suitability of GT manufacturing, dealing with layout flexibility, identifying significant factors, formation of part families and machines cells, preparing layout data, developing cell layout, developing cell system layout and examining the location of bottleneck machines. Panchalavarapu and Chankong (2005) highlighted the issue of cell formation, which is concerned with identifying part families and machine cells. They noted that cell formation that ignores the integration between part similarities and processing similarities has lead to complex material flow in the system. Therefore, they redefined the cell formation as identifying machine cells, part families and a combination of sub-assemblies so that once the part families are completely processed within a cell they are also assembled within the cell. Subsequently, they proposed a mathematical model to determine assignment of parts, machines and sub-assemblies to manufacturing cells. The mathematical model is based on the similarities of parts, machines and subassembly, which can be computed from partmachine incident matrix and part sub-assembly incident matrix. Furthermore, Panchalavarapu and Chankong (2005) utilised a case study to analyse the production system that they designed by adopting the assembly considerations. The evaluation of the cell design depends on varying the numbers of cell. Comparison between cell design based on GT alone, and with assembly considerations are carried out. Results show that the cell design, which adopted the assembly consideration have higher efficiency and smoother material flow in the system as compared to the cell design based on the GT alone. Cesan and Steudel (2005) highlighted the importance of workers assignment in the CM system, because the productivity of the system is determined by the combination of machine and labour resources. Therefore, the objective is to study labour flexibility in CM systems, particularly in cell implementations allowing intra-cell operators mobility. Thus, the impact on different allocation strategies in the cell will be investigated here. Using a multiple exploratory case study approach, the complexity, actual deployment and potential of labour flexibility are examined in several cells from two manufacturing firms, using labour limited cells with intra-cell mobility. Researchers also focus on the comparative study between different layout types. Li (2003) has proposed to investigate the impact of set-up and processing time variability for job shop under Kanban system. Besides set-up and processing time variability, there are three other factors that are considered in the research, they are shop layout, production flow patterns and the amount of set-up time reduction achievable. Therefore, a functional layout, a cellular layout with unidirectional flow and a cellular layout with backtracking flow are allowed to build to compare the layout performances under set-up
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and processing time variability. The performance measures in this research are average WIP, average flow time and average set-up to processing time ratio. Besides the functional layout, there are four levels of evaluation on the cellular layout, which involves cellular layout with backtracking allowed, cellular layout with unidirectional flow, one-piece flow and batch flow. The results show that the functional layout is superior to a cellular layout if the set-up time variability is high. However, as the set-up time decreases to a medium or lower level, the performance of a cellular layout (with batch intra-cell flow) becomes comparable with the functional layout. In addition, with a medium set-up time reduction, set-up and processing time does not have a significant effect on the relative shop configurations, since both functional and cellular layout performs similarly. With a large set-up time reduction, a cellular layout is more likely to outperform a functional layout. Only low processing time variability with medium to low set-up time variability renders a cellular layout with one-piece and unidirectional intra-cell flow, which is superior to that with batch intra-cell flow. Furthermore, for a cellular layout with batch intra-cell flow, adopting unidirectional part flows or allowing backtracks does not lead to any significant performance difference for all factor levels investigated. Research on the impact of layout design towards the labour productivity was carried out by Aase et al. (2004). In the research, they have made the comparative study between straight-line assembly line and U-shape assembly line systems in affecting the labour productivity. Result shows that labour productivity has improved significantly under certain conditions when switching from a straight-line assembly line to a U-shape assembly line. This is due to the workers in the U-shape assembly line, who can perform multitasking by moving accordingly in the U-shape configuration, and subsequently increased the percentage of manpower utilisation. However, the results also show that there are cases where the changes of straight-line assembly line to U-shape assembly did not result in improving the labour productivity. This phenomenon shows that precaution steps are necessary before changing a straight-line to a U-shape assembly line for the purpose of labour productivity improvement. Huertas et al. (2007) conducted a comparison between U-shape and flow-through layout in a large capacity warehouse. They estimated and evaluated the operational costs and average picking time of alternative layout for the warehouse, which is a distribution centre with large variety of products. In this research, an analytical model was developed and implemented to measure the average distances between centroids of fixed positions for commodities. The model was used to evaluate two new alternatives of layout and operations of the warehouse. It was found that the option with the layout with docks on long opposite sides of the warehouse, and the operation without a separate picking zone minimises overall operational costs. On the other hand, Farrington and Nazemetz (1999) examined the effect of system configuration, underlying system structure, demand variation and operation time variability on overall system performances. Three types of layouts are selected to be investigated; they are: a cellular layout, a dedicated job shop and a pure job shop. For the demand variation, it involved two levels of demand pattern variability that are low demand pattern variability and high demand variability. Similarly, there are two levels of processing time variability that is chosen in this work. The low processing time variability had an average coefficient of variation of 0.3, while the high processing time variability had an average coefficient of variation of 0.6. The simulation models of each layout type were firstly constructed in SLAM II, and each of the experiments will be
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replicated 16 times to gain a sufficient accuracy results. The comparative study between the layouts are focused on eight performance measures, which are average distance moved per order, average job lateness, average time in system, average work in process, average machine utilisation, average number of departmental interactions, mean time to reappearance of part families at machines and average number of open orders in the system. The results show that the cellular layout is always superior to the job shop with respect to distance moved per order, number of departmental interactions and mean time to reappearance of part families at machines; the only exceptions to this being the two cases when the dedicated job shop had equivalent or slightly superior results for the mean time to reappearance of part families at the machines. Therefore, it can be concluded that the cellular layout is preferred as compared to job shop in the light of most of the performance measures. This present work is similar with Farrington and Nazemetz (1999), but the comparative study here is between flow line, job shop and cellular layout under different levels of headcount variability and model variability, which was not discussed in their work. Therefore, this study is conducted to investigate the overall productivity in different layout types under different models and headcount variability.
Methodology
To achieve the objective stated, there are three basic layout types that need to be developed. The layout development starts with hand modelling process, where a conceptual layout will be developed. In order to have a clearer view on how the material flow in the layout, precedence table and precedence diagram, a conceptual layout model was constructed. In the precedence table, each task and standard time involved in producing the product will be listed down. Besides, the table also include the sequence of each task. In addition, a few assumptions have been made to simplify the layout design problems as shown below. 1 2 3 4 5 the distance between workstations is neglected the travel time between workstations is assumed to be constant all the products in the layout are assumed to be in good quality condition with zero defects no buffer exists between two adjacent workstations all the workers in the layout are assumed to be skilled workers.
(1)
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(2)
After determining the theoretical cycle time and theoretical minimum number of workstations, the task is assigned one at a time to the workstations until the total station time is less than or equal to the cycle time achieved. In the mean time, no other tasks are carried out due to time and sequence restrictions. However, this may not be applicable in the real world and may cause station time far lower than the theoretical cycle time, subsequently causing the workload to be unbalanced in the layout. Therefore, the station time is allowed to exceed the theoretical cycle time, and parallel workstation can be used to reduce the layout bottleneck. In flow line, each worker will only be assigned to one workstation. In addition, the material flow in the flow line is designed as one-piece flow and the travel time between workstations are assumed to be 3 sec. On the other hand, the design of job shop starts with grouping the processing tasks into different shops according to the process, function or sub-assemblies. After determining the number of shop, the bottleneck of the layout is identified. In order to reduce the bottleneck, parallel workstations can be used and subsequently increase the layout efficiency. Here, the material flow is designed to be moved in batches of 5, and the travel time between shops is assumed to be 10 sec. For the design of cellular layout, it starts with group processing tasks into cell. In this study, the cell formation is based on the concept of single row that is similar with flow line, which in turn simplifies the intracellular flow. This concept is chosen because it is suitable for assembly processes. In cellular layout design, one worker can be assigned to more than one workstation. Therefore, the U-shape arrangement within cell is chosen, because it provides easier path for movement between workstations. Subsequently, the worker utilisation for cellular layout can also be increased. Moreover, the issue of balanced workload also need to be taken into consideration while designing the cellular layout to reduce the bottleneck of the layout. The example of conceptual layout for flow line, job shop and cellular layout with 12 workers are shown in Figures 13, respectively.
Figure 1 Conceptual layout for flow line (see online version for colours)
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Conceptual layout for job shop (see online version for colours)
Figure 3
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