Layout and Improvement

LAYOUT AND IMPROVEMENT

Mike Dixon, PhD

Once transportation waste has been identified through mapping and analysis, the next step is implementing improvements. This brief focuses on practical strategies to reduce transportation waste through better design of spaces, processes, and material flows.

Layout Optimization Principles

The physical arrangement of space significantly impacts transportation efficiency. Key layout optimization principles include:

• Place connected processes adjacent to each other
• Minimize distances for high-frequency movements
• Arrange workstations to match process flow
• Provide clear, unobstructed transport paths
• Consider future flexibility needs

For example, arranging assembly operations in sequence rather than by department type can dramatically reduce transportation distance. Similarly, positioning frequently used items closer to their point of use can eliminate numerous small movements throughout the day.

Point-of-Use Storage

Point-of-use storage (POUS) represents a fundamental shift from centralized to distributed storage. Instead of storing materials in a central warehouse, items are stored where they’re actually used. This approach:

• Eliminates transport between storage and use
• Reduces search time
• Improves inventory visibility
• Enables better control of material flow

•Supports standardized work

The key is determining the right quantities to store at each point of use while ensuring efficient replenishment systems.

Point-of-Use Storage Examples

Consider a hospital operating room (OR) environment. In the traditional approach, surgical supplies are stored in a central sterile supply department, requiring nurses to make multiple trips throughout their shift to retrieve needed items. These trips multiply when unexpected supplies are needed during procedures, and the time spent walking to and from storage between cases adds significant non-value-added time to the workday. This centralized storage also requires extra handling and movement of supplies, increasing the risk of stockouts and delays.

After implementing point-of-use storage, the OR transformed its supply management. Most commonly used supplies are now stored directly in the OR in small wall-mounted cabinets and procedure-specific rolling carts. A two-bin Kanban system automatically triggers replenishment when supplies reach predetermined levels, while bar code scanning maintains accurate inventory records. This change eliminated 60% of trips to central supply, reduced time between surgeries, decreased stockouts, improved staff satisfaction, and provided better inventory control with less total storage space required.

Manufacturing Example:

In traditional manufacturing environments, parts are typically stored in a central warehouse, requiring material handlers to deliver components to production areas in large batches. This approach involves multiple handling points as materials move from receiving to storage to production, and workers often spend considerable time searching for needed items in the warehouse. The large batch movements also create peaks and valleys in material handling workload and hide inventory problems.

After converting to point-of-use storage, small parts racks are positioned at each workstation with standard quantities in clearly marked locations. Visual signals indicate when replenishment is needed, and suppliers deliver directly to point-of-use locations on daily routes. This eliminates the central warehouse staging, reduces handling, and ensures parts are always available where and when needed. The smaller, more frequent deliveries also help identify and solve problems quickly while reducing the total inventory in the system.

Work Cell Design

Work cells represent a fundamental shift from traditional department-based layouts to integrated, flow-oriented workspaces. A well-designed work cell brings together all the elements needed to complete a family of products or services, minimizing the need for transportation between operations. The key is to arrange people, equipment, and materials in a way that supports smooth, continuous flow.

Work Cell Design Principles

The physical arrangement of a work cell should follow these core principles:

• U-shaped or C-shaped configuration to minimize operator movement
• Equipment positioned in process sequence
• Materials flow in one direction
• Point-of-use storage integrated into the cell
• Minimal distance between consecutive operations
• Clear visual management of workflow
• Flexible arrangements to accommodate volume changes

For example, a manufacturing cell might transform a process that previously required movement between welding, grinding, and inspection departments into a compact U-shaped cell where one or two operators can complete all operations with minimal transportation. Similarly, a healthcare clinic might redesign patient rooms and support areas into care cells that bring together all needed supplies, equipment, and documentation to minimize staff or patient movement.

Source: https://www.leansixsigmadefinition.com/glossary/cellular-manufacturing/

Source: https://goleansixsigma.com/improve-phase-4-of-5-of-lean-six-sigma/

Benefits of Cell Design:

• Reduced transportation distance and time
• Improved communication between operators
• Faster response to quality issues
• Better inventory control
• Enhanced flexibility
• Simplified material handling
• Clearer visual management

Flow-Oriented Layouts

Flow-oriented layouts arrange workspaces and equipment based on the natural sequence of operations, rather than grouping similar equipment or functions together. This approach prioritizes the smooth movement of materials, information, and people through the entire process. Think of it as designing a layout that follows the path of value creation, eliminating unnecessary back-and-forth movement.

Key Principles of Flow-Oriented Layouts:

• Arrange processes in sequence of operations
• Minimize cross-traffic and backtracking
• Create clear, direct paths for material movement
• Position support services near point of use
• Design for future flexibility
• Consider both primary and secondary flows
• Incorporate visual management elements

Practical Applications- consider a restaurant kitchen transformation:

Traditional Layout:

Prep stations grouped by function (all cutting in one area, all cooking in another), requiring food to travel back and forth between areas. Storage areas are centralized, causing multiple trips for ingredients. High traffic congestion where paths cross.

Flow-Oriented Layout:

Stations arranged in cooking sequence, from receiving through prep to cooking and plating. Storage distributed along the flow path. Clear separation of incoming raw materials and outgoing finished dishes. Support functions (dishwashing, waste disposal) positioned to minimize interference with primary flow.

Transportation Reduction Strategies

Effective reduction of transportation waste requires a combination of physical, operational, and systemic changes. These strategies should be implemented in a logical sequence, starting with the simplest changes that deliver immediate impact.

Physical Strategies:

1. Layout Changes

• Reduce distances between connected processes
• Eliminate unnecessary aisles and barriers
• Create dedicated flow paths
• Move frequently used items closer to point of use

2. Storage Solutions

• Implement point-of-use storage
• Design right-sized inventory locations
• Create clear visual controls for storage
• Position supplies within easy reach

Operational Strategies:

1. Process Changes

• Reduce batch sizes to minimize movement quantity
• Implement standardized delivery routes
• Create regular replenishment cycles
• Use right-sized containers

2. Equipment Optimization

• Select appropriate material handling equipment
• Establish dedicated transport equipment
• Maintain clear travel paths
• Use visual controls for equipment location

Systemic Strategies Systems

1. Pull Systems

• Implement Kanban to control movement
• Create signal-based replenishment
• Establish milk-run delivery routes
• Design one-piece flow where possible

2. Information Flow

• Align information and material movement
• Use visual signals to trigger transport
• Minimize paperwork movement
• Implement electronic data sharing.

Implementation Challenges

Successfully implementing transportation waste reduction requires overcoming both technical and human barriers. Even the best-designed solutions can fail if these challenges aren’t properly anticipated and addressed.

Technical Challenges:

Physical constraints represent the most immediate and visible barriers to implementing transportation improvements. These fixed limitations often require creative solutions and sometimes a compromise between ideal and practical arrangements.

Physical Constraints

• • Building limitations (columns, walls, utilities)
  • Equipment that’s difficult to move
  • Safety and regulatory requirements
  • Environmental conditions
  • Space limitations

Change management often proves more challenging than technical issues. People naturally resist changes to familiar patterns and methods, especially when those changes affect their daily work routines.

Resistance to Change

• • Comfort with familiar routes
  • Perceived loss of control
  • Fear of job changes
  • Department territoriality
  • Historical practices

Overcoming These Challenges:

Success requires a balanced approach that addresses both technical and human aspects of change. Building momentum through early wins while maintaining clear communication helps create sustainable improvements.

• Start with pilot areas to demonstrate success
• Involve affected employees in planning
• Provide adequate training and support
• Communicate clear benefits and reasons
• Address concerns promptly
• Show respect for current knowledge
• Build on small wins