3 CONTENTS Efficiency and Utilization Importance of Capacity Decisions ThemeFacility PlanningCapacity PlanningEfficiency and UtilizationImportance of Capacity DecisionsFacility LayoutFactors affecting layoutTypes of layoutsService Location Strategies
4 THEME Forecast demand Aggregated output Estimate of current capacity Measure aggregate capacity and demandIdentify the alternative capacity plansTimeAggregated outputChoose the most appropriate capacity planForecast demandEstimate of current capacity
5 CAPACITY AND FACILITYCAPACITY: the capacity of an operation is the maximum level of value-added activity over a period of time that the process can achieve under normal operating conditions.FACILITY: Facilities management involves the management and development of the workplace to integrate people and their work in the operation to achieve the objectives of the organization.
6 FACILITY PLANING HOW MUCH LONG RANGE CAPACITY NEEDED WHEN MORE CAPACITY IS NEEDEDWHERE FACILITY SHOULD BE LOCATEDHOW FACILITY SHOULD BE ARRANGED
7 Capacity planningapproach for determining the overall capacity level of capital intensive resources, including facilities, equipment, and overall labor force size.
9 Various Capacities Design capacity Maximum obtainable outputEffective capacity, expected variationsMaximum capacity subject to planned and expected variations such as maintenance, coffee breaks, scheduling conflicts.Actual output, unexpected variations and demandRate of output actually achieved--cannot exceed effective capacity. It is subject to random disruptions: machine break down, absenteeism, material shortages and most importantly the demand.
10 Efficiency and Utilization Actual outputEfficiency =Effective capacityUtilization =Design capacity
11 Best Operating Level and Size Alternative 1: Purchase one large facility, requiring one largeinitial investmentAlternative 2: Add capacity incrementally in smaller chunks asneeded
12 DETERMINANTS OF EFFECTIVE CAPACITY facilitiesProduct or servicesoperationsExternal forcesprocess
13 Importance of Capacity Decisions Impacts ability to meet future demandsAffects operating costsMajor determinant of initial costsInvolves long-term commitmentAffects competitivenessAffects ease of management
14 Facility Layout Definition A facility layout is an arrangement of everything needed for production of goods or delivery of services. A facility is an entity that facilitates the performance of any job. It may be a machine tool, a work centre, a manufacturing cell, a machine shop, a department, a warehouse, etc
16 Scope of facility layout Related to materialRelated to work placeLess material handling and minimum transportation costLess waiting time for in process-inventorySafe working condition form the point of ventilation ,lighting etc.Minimum movement of workersLeast chances of accidents.Proper space for machinery,workers,tools.
17 Fixed-position layout Types of layoutsProcess layoutProduct layoutFixed-position layout
18 Car 1Car 2Car 3Process layout:Process layouts, also known as functional layouts, group similar activities together in departments or work centers according to the process or function they perform The specialized machines and equipments are grouped together one after then other in order of sequence required in production processconvyer
19 Product layoutProduct layouts, better known as assembly lines, arrange activities in a line according to the sequence of operations that need to be performed to assemble a particular product. Each product or has its own "line" specifically designed to meet its requirements. The flow of work is orderly and efficient, moving from one workstation to another down the assembly line until a finished product comes off the end of the line.
20 Fixed-position layout Fixed-position layouts are typical of projects in which the product produced is too fragile, bulky, or heavy to move. Ships, houses, and aircraft are examples. In this layout, the product remains stationary for the entire manufacturing cycle.
21 Service Location Strategies Maximize the volume of business and revenue:Purchasing power of the customer-drawing area.Service and image compatibility with the customer- drawing area.Competition in the area.Quality of the competition.Uniqueness of the firm’s and competitor’s locations.Physical qualities of facilities and neighboring businesses.Operating policies of the firm.Quality of management.