Design study

Facility Layout & Capacity Planning

A cellular layout and ten-year capacity plan for an 80,000 ft² metal fabrication plant with 16 departments.

  • ~20% lower material-flow cost than the alternative layout Modeled
  • 10 yrs of growth planned for

1Project overview

A cellular layout and ten-year capacity plan for an 80,000 ft² metal fabrication plant with 16 departments.

2Objective

Design a layout for an 80,000 ft² metal fabrication facility that can support ten years of growth.

3My role

  • Led a cellular layout design using Systematic Layout Planning.
  • Developed from-to and activity relationship charts for 16 departments.
  • Forecast machine requirements under 15–30% annual growth scenarios.
  • Recommended a phased hybrid expansion plan.
  • Used NPV and payback analysis to recommend outsourcing welding rather than keeping it in-house.

4Engineering approach

  1. Flow analysis

    From-to charts quantified material movement between all 16 departments.

  2. Relationship ratings

    Activity relationship charts captured which departments need to be close and which should be apart.

  3. Systematic Layout Planning

    Used both to compare layout alternatives and select a cellular design.

  4. Capacity forecast

    Projected machine requirements over ten years at 15–30% annual growth to plan phased expansion.

  5. Make vs. buy

    NPV and payback analysis on welding, which pointed to outsourcing.

5Analysis and visuals

Selected cellular layout
Activity relationship chart and from-to chart

Image to add: Capacity-planning chart

Machine requirements by year under the 15–30% growth scenarios.

6Results and impact

  • ~20%lower material-flow cost than the alternative layout (modeled)
  • 10 yrsof growth planned for

The selected cellular layout reduces material-flow cost by about 20% compared with the alternative layout, with a phased plan for growth.

7Tools and technologies

  • Systematic Layout Planning
  • From-to charts
  • Activity relationship charts
  • Cellular manufacturing
  • Capacity forecasting
  • NPV
  • Payback analysis