Directorate of distance education

Lesson 4.3 - Supply Chain Facility Layout
Learning Objectives
After completing this chapter, you should be able to:
➢ Ascertain the knowledge on criteria for the layout decision and 
flow process 
➢ Analyse the batch processing and finding the pattern of layouts
➢ Take calls on systematic layout planning 
➢ Understand techniques of relationship diagram
➢ Explain the role of computers in determining a job shop layout.
Introduction
Facility layout is the arrangement of the work space. Broadly 
defined, it can involve questions at three levels of detail.
1. At the highest level, how should the departments or work groups be 
arranged? Which departments or groups should be adjacent, and 
which can be placed far there apart? For example, in a hospital, how 
close should the pediatrics department be to the X-ray department?
2. Next, within the departments or work groups, how should people, 
equipment, and storage be arranged? How large should the 
department be? Within an X-ray department, how much equipment 
should there be, and how should it be arranged? The department 
may need more than one machine, space for viewing X-rays, and 
storage.
3. Finally, how can the arrangement of each work space within a 
department be designed so that assigned tasks can be efficiently 
and effectively carried out? How should the workstation where 
the technician operates the machine be arranged? How should the 
space for viewing X-rays be designed for easy use by doctors and 
technicians?

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Notes
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These layout issues are all related. For example, the size of the 
facility is dependent on the size of each department, which, in turn, is 
dependent on the number of people, the amount of equipment, and the 
amount of storage space. The amount of space each person needs is a 
function of how well the individual’s work space has been designed. It 
should be clear from this description that capacity and layout are related 
because the capacity a company is seeking to achieve determines the 
number of people and the amount of equipment used in its operations.