Fraunhofer Institute for Material Flow and Logistics IML
Fraunhofer Institute for Material Flow and Logistics IML

Factory Structure Planning

Content

Holistic factory planning: from strategy to an optimized layout

Together with you, we develop sustainable factory structures for your production - customised and with scientifically proven methodology. Starting with the consideration of your strategic goals, we determine your future system load. The subsequent analysis of the processes and segmentation of the products into part families forms the basis for the subsequent dimensioning and material flow-orientated arrangement of the resources. Layouting is carried out according to your individual requirements as a rough or fine layout. Iteration creates a layout adapted to the actual restrictions. The subsequent resource planning is used to dimension the required resources such as equipment, personnel etc. for production and logistics. If required, we also consider the integration of your site into a holistic site concept.

The illustration shows a laptop on which a programme displays the intensity of the material flows in an example scenario. The planning content that we offer as part of factory planning is also mentioned: System load determination, process and organisational planning, layout planning, resource planning and site development.
© Fraunhofer IML
Our planning content

Five steps to an optimal factory layout - our process model

Analysing the relevant functional areas and overarching master planning are essential for material flow-oriented layout planning. At the start of a project, you define the planning objective together with us. Here, process-orientated planning is applied and integrated into the holistic plan.

  • Determining system load: Joint determination of the future system load, e.g. based on a detailed analysis of past production volumes or forecasts.
  • Process and organisation planning: Through process segmentation, we form families of parts with similar or common characteristics with regard to the process flow. The definition of organisational units and the assignment of segmented processes to them are the basis for the efficient implementation and control of factory operations.
  • Layout planning: A material flow matrix is initially created to record and quantify the material flows. This is followed by the dimensioning and material flow-orientated arrangement of the functional areas in the form of an ideal layout. The real layout is created iteratively by taking real restrictions into account.
  • Resource planning: Resource planning involves the selection and dimensioning of necessary resources such as personnel, equipment, transport, logistics and IT resources, etc.
  • Site development: We outline future development opportunities and demonstrate the long-term potential of your site, e.g. as part of long-term development planning. We also support you in integrating your site into an efficient, higher-level production network.
The figure shows the process-orientated procedure model for factory planning from Dortmund. The first step is to determine the system load. The quantity of products and variants in defined qualities within a defined period of time is determined. This is followed by process structure planning to define the required utilisation and support processes. In process structure planning, the processes are assigned to organisational units and responsibilities are defined. The following resource planning deals with the definition of resource requirements by type and quantity. The spatial arrangement of the identified resource quantities takes place in the arrangement structure planning. In the final control planning stage, control rules are defined for the individual levels.
© Fraunhofer IML
Process-orientated procedure model for factory planning

How your production can benefit from future-proof factory planning

With its methodological expertise in factory planning, Fraunhofer IML is the ideal partner for designing future-proof factory structures and aligning your production to the constantly growing requirements in terms of flexibility and adaptability.

We support you with:

  • the realisation of an efficient and transparent material and information flow
  • Increasing flexibility, resulting in greater adherence to delivery dates and therefore greater customer satisfaction
  • Consideration of development potential that is adaptable in the long term
  • Shortening throughput times
  • Reduction of work in progress
  • Increasing the utilisation of your capacities
  • Optimisation of production planning and control
  • Minimisation of transports and transport routes in the overall production system
  • Eliminating waste by eliminating several storage stages in the order flow (complete processing without intermediate storage)
  • Design of modern, ergonomic and attractive workstations

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Implementing production relocations safely and efficiently

The relocation or move of production sites is a complex undertaking with far-reaching implications for production, logistics, and supply capabilities. In addition to strategic reasons such as cost optimization and shifts in sales and procurement markets, external events—such as natural disasters or incidents of damage—can also necessitate a short-term relocation. At the same time, potential risks must be identified early on and factored into the planning to ensure a smooth transition.

Challenge: Ensuring ability to supply

During the transition phase, companies must address key questions:

  • How can production be maintained during the move?
  • What pre-production quantities are required?
  • How is the new site integrated step by step?

Inadequate planning quickly leads to supply bottlenecks, increased costs, and operational risks.

Holistic planning as a key to success

Structured relocation and site transfer planning integrates factory planning with operational production control. In addition to layout and resource planning, the timing of all measures plays a particularly crucial role.

Our Approach

We support in case of planning and implementation of site relocations through:

  • Structured relocation and ramp-up planning
  • Defining pre-production and inventory strategies
  • Synchronization of existing and new system
  • Ensuring supply capability during the transition
  • Systematic identification, assessment, and planning for potential risks
  • Integration of resilience strategies to manage unexpected events
  • Material flow simulation – Validation of factory concepts and planning variants in value creation networks

Your Benefits

  • Minimization of production interruptions
  • High planning reliability and transparency
  • Reduction of risks and additional costs
  • Resilient and future-proof site structures

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Simulation-Based factory planning

Efficiently planning and validating production systems

The increasing complexity of in-house processes requires well-informed planning decisions. With simulation-based factory planning, we enable the virtual validation of production and logistics systems—before any investments are made.

Simulation-based factory planning combines traditional factory planning methods with discrete-event simulation. This allows material flows, capacities, buffers, and resources to be tested in a digital model—risk-free, data-driven, and with measurable results.

 

Why use simulation in factory planning?

Traditional planning methods quickly reach their limits when dealing with dynamic and interconnected processes. Simulation offers decisive advantages here:

Validation of layout and structural decisions through scenario comparison

Identification of bottlenecks and optimization potential through greater transparency in more complex processes

Evaluation of variants without disrupting ongoing operations

Reduction of planning risks and misallocated investments

More efficient and higher-performing production systems in the long term

 

Our approach

We follow a structured and practical approach:

  1. Goal Definition & System Understanding
    Joint definition of planning goals and mapping of relevant processes.
  2. Data Collection & Preparation
    Collection of necessary input data such as process times, lot sizes, shift models, and resources.
  3. Model Development
    Mapping of your factory structure and material flows in a simulation model.
  4. Analysis & Scenario Evaluation
    Examination of various planning variants and identification of optimal solutions.
  5. Recommendations for Action
    Derivation of concrete measures for implementation in your factory.

 

Our services

  • Simulation of production and logistics processes
  • Factory layout and structural planning
  • Resource sizing (staff, equipment, buffers)
  • Evaluation of automation and investment scenarios
  • Support for greenfield and brownfield projects

Would you like to validate your factory planning through simulation?

Contact us - we’ll support you from the initial idea through to implementation.

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Reference projects

Here you can see selected projects as examples of good practice.

Development of a location concept and new construction planning

STAHLKONTOR

Contract manufacturer for special requirements of the defence industry and the aviation sector

New planning of a welding shop

FERRO UMFORMTECHNIK

Metal forming - cutting, edging, processing

Planning of a slab store to supply a rolling mill

THYSSENKRUPP STEEL

Steel production

Development of a logistics concept for the production of electrolysis cells

THYSSENKRUPP NUCERA

Electrolysis systems for green hydrogen

Development of a material flow and assembly concept to increase efficiency

BRUSE

Manufacturer of hot-pressed and precision turned parts for shut-off and sanitary fittings

Development of a site concept

WOCKLUM

Chemical industry

Our departmental focal points