Slide 0 of 96 Chapter 8 Facility Layout: Manufacturing and Services Manufacturing and Services Honey Arora MBA – III.

of 96 Chapter 8 Facility Layout: Manufacturing and Services Manufacturing and Services Honey Arora MBA – III

of 96 OverviewOverview l Introduction l Manufacturing Facility Layouts l Analyzing Manufacturing Facility Layouts l Service Facility Layouts l Wrap-Up: What World-Class Producers Do

of 96 IntroductionIntroduction l Facility layout means planning: l for the location of all machines, utilities, employee workstations, customer service areas, material storage areas, aisles, restrooms, lunchrooms, internal walls, offices, and computer rooms l for the flow patterns of materials and people around, into, and within buildings

of 96 Locate All Areas In and Around Buildings l Equipment l Work stations l Material storage l Rest/break areas l Utilities l Eating areas l Aisles l Offices

of 96 Characteristics of the Facility Layout Decision l Location of these various areas impacts the flow through the system. l The layout can affect productivity and costs generated by the system. l Layout alternatives are limited by l the amount and type of space required for the various areas l the amount and type of space available l the operations strategy l... more

of 96 Characteristics of the Facility Layout Decision l Layout decisions tend to be: l Infrequent l Expensive to implement l Studied and evaluated extensively l Long-term commitments

of 96 Objectives of the Lay out Strategy Develop an economical layout which will meet the requirements of: l product design and volume (product strategy) l Process equipment and capacity (process strategy) l quality of work life (human resource strategy) l building and site constraints (location strategy)

of 96 Requirements of a Good Layout A good layout requires: 4 an understanding of capacity & space requirements 4 selection of appropriate material handling equipment 4 decisions regarding environment and aesthetics 4 identification and understanding of the requirements for information flow 4 identification of the cost of moving between the various work areas

of 96 Inputs to the Layout Decision 1. Specification of objectives of the system in terms of output and flexibility. 2. Estimation of product or service demand on the system. 3. Processing requirements in terms of number of operations and amount of flow between departments and work centers. 4. Space requirements for the elements in the layout. 5. Space availability within the facility itself.

of 96 Steps in Developing a Process Oriented Layout l Construct a “from-to matrix” l Determine space requirements for each department l Develop an initial schematic diagram l Determine the cost of this layout l By trial-and error (or more sophisticated means), try to improve the initial layout l Prepare a detailed plan that evaluates factors in addition to transportation cost

of 96 Warehouse & Storage Layout General Cost Curve The best warehouse layout is where total costs are at a minimum Material handling cost (mostly variable) Costs include: Equipment Damage Position & Find Investment Material storage cost (mostly fixed) Costs include: Land & building Building & insurance

of 96 Manufacturing Facility Layouts

of 96 Basic Layout Forms l Process l Product l Cellular l Fixed position l Hybrid

of 96 Process (Job Shop) Layouts l Equipment that perform similar processes are grouped together l Used when the operations system must handle a wide variety of products in relatively small volumes (i.e., flexibility is necessary)

of 96 Characteristics of Process Layouts l General-purpose equipment is used l Changeover is rapid l Material flow is intermittent l Material handling equipment is flexible l Operators are highly skilled l... more

of 96 Characteristics of Process Layouts l Technical supervision is required l Planning, scheduling and controlling functions are challenging l Production time is relatively long l In-process inventory is relatively high

of 96 Product (Assembly Line) Layouts l Operations are arranged in the sequence required to make the product l Used when the operations system must handle a narrow variety of products in relatively high volumes l Operations and personnel are dedicated to producing one or a small number of products

of 96 Characteristics of Product Layouts l Special-purpose equipment are used l Changeover is expensive and lengthy l Material flow approaches continuous l Material handling equipment is fixed l Operators need not be as skilled l... more

of 96 Characteristics of Product Layouts l Little direct supervision is required l Planning, scheduling and controlling functions are relatively straight-forward l Production time for a unit is relatively short l In-process inventory is relatively low

of 96 Cellular Manufacturing (CM) Layouts l Operations required to produce a particular family (group) of parts are arranged in the sequence required to make that family l Used when the operations system must handle a moderate variety of products in moderate volumes

of 96 Characteristics of CM Relative to Process Layouts l Equipment can be less general-purpose l Material handling costs are reduced l Training periods for operators are shortened l In-process inventory is lower l Parts can be made faster and shipped more quickly

of 96 Characteristics of CM Relative to a Product Layout l Equipment can be less special-purpose l Changeovers are simplified l Production is easier to automate

of 96 Fixed-Position Layouts l Product remains in a fixed position, and the personnel, material and equipment come to it l Used when the product is very bulky, large, heavy or fragile

of 96 Hybrid Layouts l Actually, most manufacturing facilities use a combination of layout types. l An example of a hybrid layout is where departments are arranged according to the types of processes but the products flow through on a product layout.

of 96 New Trends in Manufacturing Layouts l Designed for quality and flexibility l Ability to quickly shift to different product models or to different production rates l Cellular layout within larger process layouts l Automated material handling l U-shaped production lines l... more

of 96 New Trends in Manufacturing Layouts l More open work areas with fewer walls, partitions, or other obstacles l Smaller and more compact factory layouts l Less space provided for storage of inventories throughout the layout

of 96 l Process Layouts l Product Layouts l Cellular Layouts Analyzing Manufacturing Facility Layouts

of 96 Process Layout l What factors might we consider when determining the locations of process areas, or departments?

of 96 Designing and Analyzing a Process Layout l Group like processes together into departments or work centers l Determine where in the building these departments will be located relative to one another l The objective is to arrange the departments so that some criterion such as material-handling cost is minimized

of 96 Approaches to Process Layout Design l Operations sequence analysis l Block diagram analysis l Load-distance analysis l Computer analysis

of 96 Operations Sequence Analysis l Inputs required l an existing or proposed arrangement of departments l a projection of the traffic or flow that will take place between one department and each of the other departments during some time period - this is usually displayed as an interdepartmental flow matrix l... more

of 96 Operations Sequence Analysis l Departments are represented by nodes (circles) l Using the interdepartmental flow information, flows between adjacent departments are represented by solid lines. Dashed lines represent traffic between nonadjacent departments. The projected volumes are written above the appropriate lines. l... more

of 96 Operations Sequence Analysis l Departments (circles) are moved with the objective of reducing the amount of nonadjacent flow. l This proceeds until no further improvement can be found

of 96 Block Diagram Analysis l This approach follows the operations sequence analysis and is an effort to make the solution more realistic l Each department is represented by a square the relative size of the department l Shapes of the squares are altered to fit into the boundaries of the building while retaining the same areas and relative position found in the operations sequence analysis

of 96 Load-Distance Analysis l A way of quantitatively comparing alternative process layouts l Inputs l Alternative block layouts which will provide the distance between a department and each of the other departments l For each product, the path it will follow (routing) and its volume over some time period l... more

of 96 Load-Distance Analysis l For each alternative process layout, compute the total distance a product must travel using its routing l Compute the total distance traveled per time unit for each product by multiplying its total travel distance by its volume per time unit l Add the total distance traveled per time unit for each product l Select the layout with the smallest sum

of 96 Process Layout: Interdepartmental Flow l Given l The flow (number of moves) to and from all departments l The cost of moving from one department to another l The existing or planned physical layout of the plant l Determine l The “best” locations for each department, where best means interdepartmental transportation, or flow, costs

of 96 Process Layout: Cut-And-Try Approach l Involves searching for departmental changes to reduce overall flow cost l Difficult to determine correct moves l Non-optimal and based on limited criteria (cost, flow and distance)

of 96 Process Layout: Systematic Layout Planning l Numerical flow of items between departments l Can be impractical to obtain l Does not account for the qualitative factors that may be crucial to the placement decision l Systematic Layout Planning l Accounts for the importance of having each department located next to every other department l Is also guided by trial and error l Switching departments then checking the results of the “closeness” score

of 96 Example 1: Systematic Layout Planning Reasons for Closeness Code 1 2 3 4 5 6 Reason Type of customer Ease of supervision Common personnel Contact necessary Share same price Psychology

of 96 Example 1: Systematic Layout Planning Importance of Closeness Value A E I O U X Closeness Line code Numerical weights Absolutely necessary Especially important Important Ordinary closeness OK Unimportant Undesirable 16 8 4 2 0 80

of 96 Example 1: Systematic Layout Planning Relating Reasons and Importance From 1. Credit department 2. Toy department 3. Wine department 4. Camera department 5. Candy department 6 I -- U 4 A U U 1 I 1,6 A -- U 1 X 1 X To 234 5 Area (sq. ft.) 100 400 300 100 Letter Number Closeness rating Reason for rating

of 96 Example 1: Systematic Layout Planning The Starting Solution 1 2 4 3 5 U U E A I

of 96 Example 1: Systematic Layout Planning Initial and Final Layouts 1 24 3 5 Initial Layout Ignoring space and building constraints 2 514 3 50 ft 20 ft Final Layout Adjusted by square footage and building size

of 96 Designing and Analyzing a Product Layout l Line Balancing

of 96 Designing and Analyzing a Product Layout l Characteristics l Inputs l Design Procedure l How Good Is The Layout?

of 96 Product Layout-Advantages/Disadvantages Advantages: ù Low cost variable cost per unit ù Lower material handling costs ù reduction in work in-process inventories ù easier training and supervision Disadvantages: ÷ High volume required because of large initial investment ÷ Work stoppage at any point ties up the whole process ÷ Lack of flexibility in handling variety of products or production rates Advantages: ù Low cost variable cost per unit ù Lower material handling costs ù reduction in work in-process inventories ù easier training and supervision Disadvantages: ÷ High volume required because of large initial investment ÷ Work stoppage at any point ties up the whole process ÷ Lack of flexibility in handling variety of products or production rates

of 96 Line Balancing Problem l Work stations are arranged so that the output of one is an input to the next, i.e., a series connection l Layout design involves assigning one or more of the tasks required to make a product to work stations l... more

of 96 Line Balancing Problem l The objective is to assign tasks to minimize the workers’ idle time, therefore idle time costs, and meet the required production rate for the line l In a perfectly balanced line, all workers would complete their assigned tasks at the same time (assuming they start their work simultaneously) l This would result in no idle time l... more

of 96 Line Balancing Problem l Unfortunately there are a number of conditions that prevent the achievement of a perfectly balanced line l The estimated times for tasks l The precedence relationships for the tasks l The combinatorial nature of the problem

of 96 InputsInputs l The production rate required from the product layout or the cycle time. l The cycle time is the reciprocal of the production rate and visa versa l All of the tasks required to make the product l It is assumed that these tasks can not be divided further l... more

of 96 InputsInputs l The estimated time to do each task l The precedence relationships between the tasks l These relationships are determined by the technical constraints imposed by the product l These relationships are displayed as a network known as a precedence diagram

of 96 Design Procedure 1. If not provided, find the cycle time for the line. Remember the cycle time is the reciprocal of the production rate. Make sure the cycle time is expressed in the same time units as the estimated task times. 2. Select the line-balancing heuristic that may be used to help with the assignments. (Two heuristics are described at the end of this procedure.)... more

of 96 Design Procedure 3. Open a new work station with the full cycle time remaining. 4. Determine which tasks are feasible, i.e., can be assigned to this work station at this time. For a task to be feasible, two conditions must be met: l All tasks that precede that task must have already been assigned l The estimated task time must be less than or equal to the remaining cycle time for that work station.

of 96 Design Procedure 5. If there are no feasible tasks, assignments to that work station are complete. Go back to step 3 (or stop, if all tasks have been assigned). If there is only one feasible task, assign it to the work station. If there is more than one feasible task, use the heuristic (step 2) to determine which task to assign. Reduce the work station’s remaining cycle time by the selected task’s time and return to step 4.

of 96 Line-Balancing Heuristics l Heuristic methods, based on simple rules, have been used to develop very good, not optimal, solutions to line balancing problems. l Incremental Utilization Heuristic - adds tasks to a workstation one at a time in the order of task precedence until utilization is 100% or is observed to fall. l Longest-Task-Time Heuristic - adds tasks to a workstation one at a time in the order of task precedence, choosing - when a choice must be made - the task with the longest time.

of 96 How Good Is the Design? l Utilization is one way of objectively determining how near perfectly balanced an assignment scheme is. l Utilization is the percentage of time that a production line is working. l Utilization is calculated as: or

of 96 Product Layouts-Major Assumptions l Volume is adequate for high equipment utilization. l Product demand is stable enough to justify high investment in specialized equipment. l Product is standardized or approaching a phase of its life cycle that justifies investment in specialized equipment. l Supplies of raw material and components are adequate and of uniform quality to ensure they will work with the specialized equipment.

of 96 Station 1 Min/ Unit 6 Station 2 7 Station 3 3 Why is Balancing the Line Important? What’s Going to Happen?

of 96 Example 1: The ALB Problem l You’ve just been assigned the job a setting up an electric fan assembly line with the following tasks:

of 96 Example 1: The ALB Problem The Precedence Diagram A C B DEF G H 2 3.25 1 1.2.5 1 1.4 1 l Which process step defines the maximum rate of production?

of 96 Example 1: The ALB Problem The Bottleneck

of 96 Example 1: The ALB Problem We want to assemble 100 fans per day What do these numbers this represent?

of 96 Example 1: The ALB Problem We want to assemble 100 fans per day Why should we always round up?

of 96 Example 1: The ALB Problem Selected Task Selection Rules l Primary: Assign tasks in order the the largest number of following tasks. l Secondary (tie-breaking): Assign tasks in order of the longest operating time

of 96 Example 1: The ALB Problem Selected Task Selection Rules Precedence Diagram A C B DEF G H 2 3.25 1 1.2.5 1 1.4 1

A C B DEF G H 2 3.25 1 1.2.5 1 1.4 1 Station 1Station 2 Station 3 TaskFollowersTime (Min) A62 C43.25 D31.2 B2 1 E20.5 F11 G11 H01.4 Slide 66 of 96

A C B DEF G H 2 3.25 1 1.2.5 1 1.4 1 Station 1Station 2 Station 3 TaskFollowersTime (Min) A62 C43.25 D31.2 B2 1 E20.5 F11 G11 H01.4 A (4.2-2=2.2) Slide 67 of 96

A C B DEF G H 2 3.25 1 1.2.5 1 1.4 1 Station 1Station 2 Station 3 TaskFollowersTime (Min) A62 C43.25 D31.2 B2 1 E20.5 F11 G11 H01.4 A (4.2-2=2.2) B (2.2-1=1.2) Slide 68 of 96

A C B DEF G H 2 3.25 1 1.2.5 1 1.4 1 Station 1Station 2 Station 3 TaskFollowersTime (Min) A62 C43.25 D31.2 B2 1 E20.5 F11 G11 H01.4 A (4.2-2=2.2) B (2.2-1=1.2) G (1.2-1=.2) Idle=.2 Slide 69 of 96

A C B DEF G H 2 3.25 1 1.2.5 1 1.4 1 Station 1Station 2 Station 3 TaskFollowersTime (Min) A62 C43.25 D31.2 B2 1 E20.5 F11 G11 H01.4 A (4.2-2=2.2) B (2.2-1=1.2) G (1.2-1=.2) Idle=.2 C (4.2-3.25)=.95 Idle =.95 Slide 70 of 96

A C B DEF G H 2 3.25 1 1.2.5 1 1.4 1 Station 1Station 2 Station 3 TaskFollowersTime (Min) A62 C43.25 D31.2 B2 1 E20.5 F11 G11 H01.4 A (4.2-2=2.2) B (2.2-1=1.2) G (1.2-1=.2) Idle=.2 C (4.2-3.25)=.95 Idle =.95 D (4.2-1.2)=3 Slide 71 of 96

A C B DEF G H 2 3.25 1 1.2.5 1 1.4 1 Station 1Station 2 Station 3 TaskFollowersTime (Min) A62 C43.25 D31.2 B2 1 E20.5 F11 G11 H01.4 A (4.2-2=2.2) B (2.2-1=1.2) G (1.2-1=.2) Idle=.2 C (4.2-3.25)=.95 Idle =.95 D (4.2-1.2)=3 E (3-.5)=2.5 Slide 72 of 96

A C B DEF G H 2 3.25 1 1.2.5 1 1.4 1 Station 1Station 2 Station 3 TaskFollowersTime (Min) A62 C43.25 D31.2 B2 1 E20.5 F11 G11 H01.4 A (4.2-2=2.2) B (2.2-1=1.2) G (1.2-1=.2) Idle=.2 C (4.2-3.25)=.95 Idle =.95 D (4.2-1.2)=3 E (3-.5)=2.5 F (2.5-1)=1.5 Slide 73 of 96

A C B DEF G H 2 3.25 1 1.2.5 1 1.4 1 Station 1Station 2 Station 3 TaskFollowersTime (Min) A62 C43.25 D31.2 B2 1 E20.5 F11 G11 H01.4 A (4.2-2=2.2) B (2.2-1=1.2) G (1.2-1=.2) C (4.2-3.25)=.95 D (4.2-1.2)=3 E (3-.5)=2.5 F (2.5-1)=1.5 H (1.5-1.4)=.1 Idle=.2Idle=.95 Idle=.1 Slide 74 of 96

of 96 Example 1: The ALB Problem Which station is the bottleneck? What is the effective cycle time?

of 96 Designing and Analyzing a Cellular Layout l Fundamental questions: l Which parts are going to be produced in a cell? l Which processes are going to be assigned to a cell?

of 96 Group Technology Benefits 1. Better human relations 2. Improved operator expertise 3. Less in-process inventory and material handling 4. Faster production setup

of 96 Fundamental Requirements for Parts to be Made in Cells l Demand for the parts must be high enough and stable enough that moderate batch sizes of the parts can be produced periodically. l Parts must be capable of being grouped into parts families.

of 96 Design Procedure 1. Form the Parts-Machines Matrix. 2. Rearrange the Rows. l Place the machines that produce the same parts in adjacent rows. 3. Rearrange the Columns. l Place the parts requiring the same machines in adjacent columns. 4. Using the rearranged parts-machines matrix to identify cells, the machines for that cell and the parts that will be produced in that cell.

of 96 Wrap-Up: World-Class Practice l Strive for flexibility in layouts l Multi-job training of workers l Sophisticated preventive-maintenance programs l Flexible machines l Empowered workers trained in problem solving l Layouts small and compact

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