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MODULE 7

DETERMINATION OF RELATIONSHIP BETWEEN ACTIVITIES AND

LOCATION OF DEPARTEMENT

LABWORK SUBTANCE

Determining the layout of the facility and the additional unit.

LABWORK OBJECTIVES

1. Students are able to analyze the relationship between each process in a

factory.
2. Students are able to determine the position of each department in accordance
with the relationship between activity and material flow.

LABWORK TOOLS

Microsoft Excel

LABWORK REQUIREMENTS

Guideline

LITERATURE

1. Activity Relationship Chart

Activity Relationship Chart (ARC) is a diagram that illustrates the strength of

connections between various departments, offices, or service areas within an
industrial organization. It depicts the level of interaction between each unit,
providing a visual representation of their relationships. (Stephens, 2013). ARC
essentially maps the intensity of interactions between activities, reflecting the

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degree of interdependence between departments. (Richard Muther 1973:
Systematic Layout Planning). These are functions and utilities of ARC :

1. Arranging work centers or departments in an office.

2. Positioning of activities in a service organization.
3. Positioning of work center in maintenance or repair process.
4. Illustrates the connection between activities.
5. Establishing a foundation for planning the subsequent area.

Example of Activity Relationship Chart :

How to read ARC: Using triangle between department

Example : Relationship code between Welding Parts and Exhaust Parts is E.
Painting and Finishing Parts is U. Closeness codes are used to reflect the importance
of each relationship. You may need to talk with many people to determine these
codes, and once they are set, your arrangement of departments, offices, and service
facilities are nearly determined for you.

The technique for analyzing relationships between existing activities are as follows:

a. Determining the Interrelationships between Activities Based on the Degree

of Association Evidenced by Letter Codes

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 b. Define the criteria for relationships between departments based on the
degree of closeness and the reasons for each on the map.

A Pareto analysis approach to assigning the relationship codes may be helpful. Here
are the percentages for a given code:

Source: (James M. Apple, 1990)

The reason of the relationship is divided into three kinds of linkages, for production,
employees and flow of information (Apple, 1990):

1) Production
a. Work flow sequence

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 b. Using the same equipment
c. Using the same note
d. Using the same room
e. Noisy, dirty, dust, vibration, odor, etc
f. Facilitate the transfer of materials.

2) Employees
a. Using the same employee
b. The importance of touch
c. The degree of employmeny relationship
d. Groove normal trip
e. Ease supervision
f. Carry out similar work
g. Favored employees
h. The transfer of personnel
i. Disorder employee.

3) Information Flow
a. Using the same note
b. The degree of relationship paperwork
c. Using the same communication tools

You would write a reason code key below the diagram (Stephens, 2013):

You would write a reason code key below the diagram (James A. Tompkins, 2010)

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2. ARC Normalization
ARC Normalization is a technique that converts qualitative data into quantitative
data. This conversion is useful in determining the proximity between facilities and
can be taken into account in the next layout proposal. The normalization value is
obtained from the approximate scales of each grade so that every problem has the
same multiplier. By observing the linkage between departments at the ARC, the
letter grade (A, E, I, O, U, X) will be transformed into quantitative form. The code
number will be useful to be input on Unit Flow Distribution (UFD).

Table 7. 5 ARC Normalization Value

Grade Value

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 A 1

E 0.8

I 0.6

O 0.4

U 0.2

X 0

3. Unit Flow Distribution (UFD)

UFD is the result of multiplying the FTC with ARC. The UFD data will be input
at WINQSB software :

4. Worksheet
The worksheet can also be used as a summary of the activity relationship chart. It
interprets the basic data for area allocation diagrams. Stephens (2013) provides a
step-by-step procedure for creating the worksheet:
1. List all the activities down the left-hand side of a sheet of paper.
2. Create six columns to the right of the activity column and label them A, E, I,
O, U, and X (relationship codes).
3. Select an activity and list the number from ARC normalization where activity
1 has a code of E.
Table. 7. 6 Worksheet Code

Activities A E I O U X

Fabrication 2,6 3,10 9,11,13,14 4,5,12 7,8

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Welding 1,3 6 9,10,12,13,5 7,8,4,11,14,

Paint 2,4 1 6 12, 13, 9 5,7,8,10,11,14

Assembly and 3,7 6,8 9,12,13,14 1,5 2,10,11

P.O

Receiving 6 14 4,2,1,9,12,1 3,7,10,11 8

Stores 5,1 4 3,2,14 9 8,1011,12,13 7

Warehouse 4,8 14 5,3,2,1,9,10,1 6

1,12,13

Shipping 7 4 14 9,12,13 6,3,2,1,10,11 5

Restrooms 12 13,14 4,1 8,6,5,11,3,2, 7

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Maintenance 11 1 9,2 8,7,6,4,3,12,1

3,14

Tool room 10 1 9,14 8,7,6,5,4,3,2,1

2,13

Locker room 9 13 4 8,5,3,2,1 11,10,7,6,14

Cafeteria 14,12,9 4,1 8,5,3,2 10,11,7,6

Office 13,9 8,6,5,4,1 11,7 12,10,2,3

5. Area Allocation Diagram (AAD)

The Area Allocation Diagram (AAD) is a global pattern that depicts the conclusions
of the Activity Relationship Chart (ARC) (Apple, 1990). The AAD is a continuation
of the ARC, where after ensuring the interests between activities in the ARC, some

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activities must be close together while others should not be adjacent to each other.
The relationship between activities affects the level of proximity between the
layouts of these activities, which can then be determined by the AAD (Arif, 2016).

5.1 The Purpose of Making AAD

a. Designing an efficient production space that is integrated into a single unit.
b. AAD organizes efficient workstations on the production floor by taking
into account the proximity relationships specified in the ARC.
c. Determine linkages between the facility and the reasons.
d. Estimates translate into an initial layout area.
e. Provides an estimate of the total area that is close to the actual conditions.
f. Became the basis for further planning.

5.2 Type of AAD :

a. AAD Powram Approach
Depicts AAD in block diagram form that coincides between activity
facilities

Figure 7. 2 AAD Approach Powram

(Source : James M. Apple, 1990)

b. AAD Muther Approach

A diagram has been created to illustrate the relationship between
AAD and the level of correlation between different activities. The

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 diagram consists of activities that are connected by lines or bands
of varying thicknesses. The thickness of the line represents the flow
volume between activities, which helps planners to connect each
activity appropriately during the early stages of layout planning. In
the Muther approach, conventional process symbols are used, and
intersymbol line numbers indicate the importance of proximity.

Figure 7. 3 AAD Approach Muther

(Source : James M. Apple, 1990)

6. Template
Template is an overview of plant layout will be made based on the result of previous
AAD workmanship. Template is a depiction of all activities of the plant and the linkages
activities. In the manufacture of the template should be held account floor area of
predetermined and given alley (Apple, 1990). With the templates, it can be seen:
a. Office layout,
b. Location of service facilities such as a canteen, roads, etc,
c. Production floor layout
d. Material flow from receiving to shipping template is flexible, making it
possibleto obtain a lot of alternative layouts.

7. Office

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 Office is a location where a specific type of business is conducted or a service
is provided. The primary objectives of designing an office layout, according
to Heragu, are as follows:
1. Reducing the distance traveled by employees.
2. Allowing flexibility so that the current layout can be easily changed or
expanded.
3. Creating a safe and comfortable environment for people to work in.
4. Minimizing the capital and operational costs of the facility.

Office planning typically involves four major phases:

1. Evaluation
This phase involves a thorough evaluation of customer service,
marketing, operational aspects, and strategic plans. It also determines the
cost of building, renting, or leasing, along with interior decoration and
furnishing. This is a necessary first step because it tells whether the new
office plan is justified.
2. Planning
This phase involves reviewing current space utilization by examining
each department within the organization. It also involves determining
space projections, the level of interaction between departments, and
identifying special considerations such as the need for being within a
reasonable distance from restaurants.
3. Design and Layout
This phase involves drawing an activity relationship diagram, a space
relationship diagram, and a pre-architectural layout using the relationship
chart and space requirement tables.
[Link]

Four types of office (Stephens, 2013) :

1. Supervisor Office
Manufacturing plant supervisors’ offices are ideal starting points
for office discussions because they are small and provide an early sense

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 of space. Supervisors should be located where they are easily accessible
to their employees.

Figure 7. 4 Example Supervisor Office

2. Open Office Space

Open Offices also known as Bull pen, are large rooms that
accommodate many people. Open offices are popular because
communication is easier, and talking to someone only requires lifting
the head and speaking.

Figure 7. 5 Example Bull Pen

3. Conventional Office
Conventional offices, also known as fixed walled offices, are the
opposite of open offices. A conventional office has independent
furniture, four walls, and a door. More than one person can be assigned
to an office.

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 Figure 7. 6 Example Conventional Office

4. Modern Office
The modern office design concept tailors individual work areas to satisfy
the needs of the organization. The modern office will provide private
office space where needed without negatively affecting the cost of
utilities, maintenance, and accessibility.

Figure 7.7 Example Modern Office