Layout Design Process

• Layout design process can be classified into manual methods and computerized methods.

➢ Manual method - Systematic Layout Planning (SLP).

➢ Computerized methods.

• Computerized Relative Allocation of Facilities Technique (CRAFT)

• Automated Layout Design Program (ALDEP)

• Computerized Relationship Layout Planning (CORELAP)

 Computerized Layout Planning
• Improvement type algorithms

– Computerized Relative Allocation of Facilities Technique (CRAFT)

• Construction type algorithms

– Automated Layout Design Program (ALDEP)

– Computerized Relationship Layout Planning (CORELAP)

 Computerized Relative Allocation of Facilities Technique

(CRAFT)
• Considers exchange between locations repeatedly until no further significant cost reductions are possible.

• Output is in the form of facilities in a basic rectangular form that is close to the lowest cost layout.

• Works on the assumption that movement between departments occur along straight line between the

centroids of the departments.

• Assumes that the costs vary linearly with distance.

• Applicable to both manufacturing and non-manufacturing organisations.

 Computerized Relative Allocation of Facilities Technique

(CRAFT)

• A heuristic algorithm - widely used than ALDEP and CORELAP

• Starts with an initial layout

• Improves the layout by interchanging the departments pairwise so that the transportation cost is minimized.

• The algorithm continues until no further interchanges are possible to reduce the transportation cost.

• Result will be good and close to optimum in majority of applications.

 CRAFT – Requirements

1. Number of departments

2. Number of interchangeable departments

3. Initial layout

4. Cost matrix

5. Flow matrix

6. Area of departments
CRAFT – Case : All department areas are equal.
 CRAFT Problem -1

Total number of departments : 4

Total number of interchangeable

departments : 4

Transportation costs per unit distance from department i to department j.

Consider the given data and use CRAFT algorithm to improve the layout.

Number of trips in a given period of time from department i to department j.

Step-1

Input data.

Step-2 - Determine the department centroids

• Assume left side of the layout as Y axis & the bottom side of the

layout as the X axis.

• Calculate centroids of all the departments in the initial layout:

(𝑋𝐴 , 𝑌𝐴 ) = 3.5, 10.5

(𝑋𝐵 , 𝑌𝐵 ) = 10.5, 10.5

(𝑋𝐶 , 𝑌𝐶 ) = 10.5, 3.5

(𝑋𝐷 , 𝑌𝐷 ) = 3.5, 3.5

Centroids of all the departments :
(𝑋𝐴 , 𝑌𝐴 ) = 3.5, 10.5 Step-3 - Calculate rectilinear distance b/w centroids
(𝑋𝐵 , 𝑌𝐵 ) = 10.5, 10.5
• The distance between any two departments is represented by
(𝑋𝐶 , 𝑌𝐶 ) = 10.5, 3.5
rectilinear distance between the centroids of the two departments.
(𝑋𝐷 , 𝑌𝐷 ) = 3.5, 3.5

• Where 𝑋𝑖 , 𝑌𝐽 are the centroids of the departments i and j,

respectively.
Step-4-Calculate transportation cost for the layout

• Total cost of handling for the present layout is calculated.

Total Cost = 2625

Step-5-Consider department exchanges & determine transportation cost

• Consider various departmental interchanges for improvement.

• Departmental interchanges are possible if:

• Departments having common border

or
• Departments having equal area

• Pairwise interchanges are considered.

• If there are N departments, theoretically, NC2 pairwise interchanges are possible.

Departmental pair Reason

A-B Common border & Equal area

A-C Equal area
A-D Common border & Equal area
B-C Common border & Equal area
B-D Equal area
C-D Common border & Equal area
 Example: Interchange between A and B

(Draw layouts for all possible interchanges)

Present Layout New Layout

Perform steps 1 to 4 for all layouts as per possible interchanges.

 Select layout with lowest total cost.

Departmental Pair Reason Total Cost

A-B Common border & Equal area ?

A-C Equal area ?
A-D Common border & Equal area ?
B-C Common border & Equal area ?
B-D Equal area ?
C-D Common border & Equal area ?
• To calculate the material handling cost, interchange would mean change in the

centroid.

• Calculate the total cost for each of the possible interchanges & select the layout that

gives the least total cost.

CRAFT – Case : All department areas are not equal.
 CRAFT Problem -2

Total number of departments : 5

Total number of interchangeable

departments : 5

Transportation costs per unit distance from department i to department j.

Number of trips in a given period of time from department i to department j. Consider the given data and use CRAFT algorithm to improve the layout.
Step-1

Input data.

Step-2 - Determine the department centroids

• Assume left side of the layout as Y axis & the

bottom side of the layout as the X axis.

• Calculate centroids of all the departments in the

initial layout:
Centroids of all the departments :

Step-3 - Calculate rectilinear distance b/w centroids

• The distance between any two departments is represented by

rectilinear distance between the centroids of the two departments.

• Where 𝑋𝑖 , 𝑌𝐽 are the centroids of the departments i and j,

respectively.
Step-4-Calculate transportation cost for the layout

• Total cost of handling for the present layout is calculated.

Step-5-Consider department exchanges & determine transportation cost

• Consider various departmental interchanges for improvement.

• Departmental interchanges are possible if:

• Departments having common border

or
• Departments having equal area.

• Pairwise interchanges are considered.

• If there are N departments, theoretically, NC2 pairwise interchanges are possible.

• For the present problem at this stage, eight

interchanges are possible.

• To calculate cost, an interchange between two

departments would mean that their present

centroids are interchanged.

• For each interchange, calculate the associated

distance matrix. Then, calculate the total cost

of handling.
Present Layout

New Layout
Present Layout

New Layout
Present Layout

New Layout
Step 6

• The interchange between 4 and 5 results into minimum cost of 163.

• The interchange which promises minimum handling cost is selected for actual

interchange in the layout.

Step 7

• Only if the cost due to proposed interchange is less than the present layout cost, the

interchange is to be actually made. Otherwise, print the present layout as the final

layout.

• In the problem considered, the approximate handling cost of 163 is less than the present

layout cost of 205. Hence, go to Step 8.

 Step 8

• Interchange can be made between 4 and 5. The layout after making

actual interchange between Departments 4 and 5 is shown below.

• This is called New Layout

New Layout (Virtual Interchange) New Layout (Actual Interchange)

Step 9

• Compare the cost of the New Layout as compared with the cost of the Present Layout.

• If the cost of the New Layout is less than that of the Present Layout, then treat the New Layout as

the Present Layout and go to another iteration.

• Otherwise, print the present layout as the final layout.

• In this problem, the new layout cost is 181 which is less than the present

layout cost of 205.

• Hence, treat the new layout as the present layout and go to another

iteration.
• One iteration of the CRAFT algorithm includes virtual interchanges and an actual interchange.

• Stop the iterations when no further significant cost reductions are possible.
Iteration No. 2

Step-5