ISE 460/ETM 593 Facilities Planning & Design Dr. Laura Moody Spring 2012 ISE 460/ETM 593 - 1

Chapter 1: Introduction Background Types of layout problems ISE 460/ETM 593 - 1

Chronological list of facilities planning & design activities ISE 460/ETM 593 - 1

Chronological list of facilities planning and design activities ISE 460/ETM 593 - 1

Chronological list of facilities planning and design activities ISE 460/ETM 593 - 1

Chronological list of sustainable building design activities Date: Event: ?? - 1000 AD Anasazi peoples build whole villages so the houses all received solar heat in the winter to cut down on wood usage 1970’s Energy crisis and environmental movement spurs the search for more energy efficient & environmentally friendly building practices 1989 - 1992 American Institute of Architects (AIA) forms the Committee on the Environment, releases Environmental Resource Guide in 1992 1992 EPA releases Energy Star guidelines; local green housing program in Austin, TX 1993 United States Green Building Council (USGBC) founded 1998 Leadership in Energy and Environmental Design (LEED) program launched Source: http://www.thehistorycalendar.com/history-of-building-green.html ISE 460/ETM 593 - 1

Typical design and planning problems Facility Location Type, Volume of Products to be Manufactured or Services to be Provided Manufacturing (Service) Processes Required Design of Components (Services) Type, Number of Equipment Required Process Planning Type, Number of Mat'l. Handling Devices Determining Mat'l. Handling Methods Layout of Equipment Within Each Cell Layout of Machine (Service) Cells Determination of Machine (Service) Cells Tooling, Fixture Determination Determining Flow of Products (People) Scheduling & planning of Jobs (Services) Overall System Design Inventory Control Distribution of Goods Quality Control & Customer Service Which of these steps present opportunities for sustainable design? ISE 460/ETM 593 - 1

Levels of decisions Strategic or Design or Long-term Involves most or all of the process Infrequent Planning or Intermediate A few of the blocks (cell layout, inventory systems, etc.) Can happen relatively frequently (monthly/quarterly/semi-annually/etc.) Operational or short-term Involves one or two blocks at a time (e.g., scheduling, inventory control) Can happen on a daily or weekly basis ISE 460/ETM 593 - 1

Why is facilities layout important? 20-75% of product cost attributed to materials handling (Sule, 1991 and Tompkins et al. 2003) Layout of facilities affects materials handling costs Facilities includes machines, departments, workstations, locker rooms, service areas, etc. ISE 460/ETM 593 - 1

Why is facilities layout important? Good layout increases productivity efficiency Reducing congestion permits smooth flow of people and material Space utilization is effective and efficient Facilitates communication and supervision Safe and pleasant working environment ISE 460/ETM 593 - 1

Constraints in developing facilities layout Some pairs of departments must be adjacent Some pairs of departments must not be adjacent Some departments only in specific locations Existing building constraints OSHA regulations, fire codes, etc. ISE 460/ETM 593 - 1

Types of layout problems – Some examples JIT manufacturer Relayout of an existing facility Relayout due to increased traffic (resulting from a merger) Consolidation of manufacturing operations from two or more sites to one Leasing of office space in a multi-story building Find a better layout in existing space Introduction of new product lines ISE 460/ETM 593 - 1

Types of layout problems Layout of a service system Layout of a manufacturing facility Warehouse layout Nontraditional layout ISE 460/ETM 593 - 1

Applications Manufacturing Healthcare Service Restaurants Banks Airports Entertainment Logistics and Distribution Ports/Terminals Distribution Centers ISE 460/ETM 593 - 1

Types of Projects New Facility General Re-layout (retrofit) Expansion due to new product(s) Expansion due to sales growth in existing products Re-organization of work areas (evolutionary design) Outsourcing of logistics capability Addition of automation technology Problem elimination Cost reduction Product discontinuation ISE 460/ETM 593 - 1

Service system layout – Dentist’s office Staff Lounge Dentist’s Room Oral Hygienist’s Room X-Ray Room Records Room Orthodontist’s Room Men’s Rest Room Women’s Rest Room Waiting Area Reception ISE 460/ETM 593 - 1

Service system layout – Grocery store ISE 460/ETM 593 - 1

Operations review for office layouts (Suskind, 1989) Is the company outgrowing its space? Is available space too expensive? Is building in the proper location? How will a new layout affect the organization and service? Are office operations too centralized or decentralized? Does the office structure support the strategic plan? Is the new layout in tune with the company’s image Does customer physically participate in service delivery? ISE 460/ETM 593 - 1

Office structures Closed structure Semiclosed structure Open structure Semiopen structure ISE 460/ETM 593 - 1

Closed structure ISE 460/ETM 593 - 1

Semiclosed structure Teller ISE 460/ETM 593 - 1

Open structure ISE 460/ETM 593 - 1

Semiopen structure ISE 460/ETM 593 - 1

Manufacturing layout Minimize transportation cost of raw materials, sub-assemblies, work-in-process inventory, tools, parts, finished products, etc. Facilitate traffic flow Improve employee morale Minimize or eliminate risk of injury and property damage Ease of supervision and face-to-face communication ISE 460/ETM 593 - 1

Assembly facility layout ISE 460/ETM 593 - 1

Driveway layout ISE 460/ETM 593 - 1

Warehouse layout ISE 460/ETM 593 - 1

Nontraditional layout Keyboard layout IC board layout Computer disk storage layout Airport gate layout ISE 460/ETM 593 - 1

Chapter 2: Product and equipment analysis Product analysis Equipment selection Personnel requirement analysis Space requirement & availability ISE 460/ETM 593 - 1

Data required for developing good layouts Product Analysis Process Analysis ISE 460/ETM 593 - 1

Input data and activities What data are critical to the facility plan? Muther categorizes the information as: P – Product (what?) Q – Quantity (how much?) R – Routing (where?) S – Support (with what?) T – Timing (when?) ISE 460/ETM 593 - 1

Product analysis Bill of Materials Assembly Charts Engineering Drawing Operation Process Chart Route Sheet ISE 460/ETM 593 - 1

Driven by market demand Product design Based on Function Aesthetics Costs Materials Manufacturing Methods Key point The product design MUST be finalized before designing the facility. Otherwise a flexible facility is needed. Driven by market demand ISE 460/ETM 593 - 1

Tools used in product design Product/Part Drawings 2-D, 3-D visualization Exploded Assembly Diagrams ISE 460/ETM 593 - 1

Tools used in process design A partial list (dependent on product and service): Process Flowcharts and Process Maps Make vs. Buy Parts Lists Bill of Materials Route Sheets Assembly Charts Operations Process Charts Precedence Diagrams ISE 460/ETM 593 - 1

Process flowcharts Reserve Storage Quality Assurance Back to Vendor UPS Parcel Post Next-Day UPS Mono-gramming Embroid-ering Hemming Gift Boxing Receiving Active Bins Picking Packing Shipping ISE 460/ETM 593 - 1

Give soup or salad order to chef Process maps Customer Waiter Salad Chef Dinner Chef Is order complete? N Place order Y Give soup or salad order to chef Prepare soup or salad order Give order to waiter Give dinner order to chef Prepare dinner order Drink Get drinks for customer Eat salad or soup Deliver salad or soup order to customer Give order to waiter Eat dinner Deliver dinner to customer Receives check Deliver check to customer Gives payment to waiter Receive payment for meal Credit Cash or Credit? Cash Collect change, leave tip Bring change to customer Run credit card through Fill in tip amount Return credit slip to customer Collect tip ISE 460/ETM 593 - 1

Is it cheaper for us to make? Is the capital available? Make vs. Buy? BUY No Yes Can we make the item? Is it cheaper for us to make? Can item be purchased? Yes Yes Is the capital available? No No No Yes MAKE BUY BUY MAKE ISE 460/ETM 593 - 1

Parts list A listing of component parts. ISE 460/ETM 593 - 1

Bill of Materials (BOM) Many different types of “structured parts lists” ISE 460/ETM 593 - 1

Operation Description Route sheet Company: ARC Inc. Produce: Air Flow Regulator Part: Plunger Housing Part No. 3254 Prepared by: JSU Part No. 6/6/03 Oper. No. Operation Description Machine Type Tooling Setup (hr.) Oper. Time (hr.) Mtls. Parts 0104 Shape, drill, cut off Auto sc. Machine .5 in dia coller, cir. Form tool, .45” diam center drill 5 0.0057 Alum 1”x12’ 0204 Machine Slot and thread Chucker 0.045” slot saw, turret slot 2.25 0.0067 0304 Drill 8 holes Auto dr. unit 0.078” diam twist drill 1.25 0.0038 0404 Debur and Blow out Drill press Deburring tool with pilot 0.5 0.0031 SA 1 Enclose subassembly Dennison hydraulic press None 0.25 0.0100 ISE 460/ETM 593 - 1

Assembly chart Analog model of the assembly process. 2200 3254 3253 3252 3251 3250 3255 4150 4250 A-1 Pack SA-1 A-2 A-3 I-1 1050 A-4 Analog model of the assembly process. Circles denote components Links denote operations/subassemblies Squares represent inspections operation Begin with the original product and to trace the product disassembly back to its basic components. ISE 460/ETM 593 - 1

Symbols for 5 basic manufacturing activities Operation Transportation Inspection Storage Delay ISE 460/ETM 593 - 1

How much is required? Volume variety charts (aka, Pareto charts) ISE 460/ETM 593 - 1

Production requirements – yield loss Pi – Production input to operation i si – Fraction of Pi lost (scrap) Oi – output of process i Pi i Oi Pisi ISE 460/ETM 593 - 1

Production requirements – series systems 1 2 . . . P1 n On P1s1 P2s2 Pnsn ISE 460/ETM 593 - 1

Example 5 processes in series Need 2000 units out ISE 460/ETM 593 - 1

Simple equipment selection model P desired production rate t time (in hours)to process one part machine time available (in hours) machine efficiency NM Number of units of the machine required ISE 460/ETM 593 - 1

Simple equipment selection model Nol Number of good units at output of stage l Nil Number of units reqd at input of stage l Sl Scrap at stage l ISE 460/ETM 593 - 1

Simple example 1. Consider a simple jobshop manufacturing system that makes three major “Class A” products requiring five types of machines. The three products include seven parts shown in Table 2.1. Table 2.1 also shows the time standards in units per hour. 2. Assume we an hour has only 55 minutes of productive time and that 5 minutes are lost due to operator or machine unavailability and machine downtime. 3. Dividing the value 55 by the values in Table 2.1, we get the as well as time per unit. 4. Determine the quantities of machines of each type required to make the standard time per unit. 5. Assuming 12000 “representative” parts are to be made and that only 440 minutes of productive time is available per shift, we can find that we need 4.9 units of machine A, 5.85 units of machine B, and 4.3 units of machine C. 6. Rounding up these numbers gives us 5, 6, and 5 units of machine types A, B, and C, respectively. ISE 460/ETM 593 - 1

Table 2.1 Table 2.2 ISE 460/ETM 593 - 1

Parameters for an LP equipment selection model Oi Operation type i, i=1,2,...,o Mi Production equipment type i, i=1,2,...,m Pi Part type i, i=1,2,...,p MHi Material handling system type i, i=1,2,...,n cij cost of performing operation Oi on production equipment type Mj hij cost of handling part type Pi using material handling system type MHj tij time required to perform operation Oi on production equipment type Mj sij time required to transport part type Pi using material handling carrier type MHj τj time available on production equipment type Mj σj time available on material handling carrier type MHj NOi number of operations Oi to be performed NPi number of units of part type Pi to be manufactured Cj cost of production equipment type Mj Hj cost of material handling system MHj B total budget available ISE 460/ETM 593 - 1

Decision Variables for LP equipment selection model xij number of operations Oi to be performed on production equipment type Mj yij number of units of part type Pi to be transported on material handling system type MHj NMj number of units of production equipment type Mj selected NMHj number of units of material handling system type MHj selected ISE 460/ETM 593 - 1

LP equipment selection model Min Subject to ISE 460/ETM 593 - 1

LP equipment selection model (cont) ISE 460/ETM 593 - 1

Queuing model Manufacturing engineers at the Widget Manufacturing Company recently convinced their manger to purchase a more expensive, but flexible machine that can do multiple operations simultaneously. The rate at which parts arrived at the machine that was replaced by the flexible machines follows a Poisson process with a mean of 10 parts per hour. The service rate of the flexible machine is 15 units parts per hour compared with the 11 units per hour service rate of the machine it replaced. (All service times follow an exponential distribution.) ISE 460/ETM 593 - 1

Queuing model The engineers and manager were convinced that the company would have sufficient capacity to meet higher levels of demand, but just after a two months of purchasing the machines it turned out that the input queue to the flexible machine was excessively long and part flow times at this station were so long, that the flexible machine became a severe bottleneck. The engineers noticed that more parts were routed through this machine, and that the parts arrival rate to the flexible machines had increased from 10 per hour to about 20 per hour, but were puzzled why the part flow time at this station doubled from 30 minutes to one hour and the work-n-process (WIP) inventory increased nearly threefold from 5 o 14 when the arrival rte only increased 40%. Use a queuing model to justify the results observed at Widget Manufacturing Company. ISE 460/ETM 593 - 1

M/M/1 model solution ISE 460/ETM 593 - 1

Personnel requirements analysis n number of types of operations Oi aggregate number of operation type i required on all the pseudo (or real) products manufactured per day Ti standard time required for an average operation Oi H total production time available per day η assumed production efficiency of the plant ISE 460/ETM 593 - 1

Queuing model The American Automobile Drivers’ Association (AADA) is the only office serving customers in New York’s greater capital district area. Ahead of the busy summer season, the office manager wants to hire additional staff members to help provide these services to members effectively - summer travel planning, membership renewal, disbursing traveler’s checks, airline, hotel, and cruise booking, and other travel related services. It is anticipated that each customer typically requires 10 minutes of service time and customers arrive at the rate of one customer every three minutes. The arrival process is Poisson and the service times are exponentially distributed. Determine how many staff members are required if the average wages and benefits per staff member are $20 per hour and the “cost” to AADA for every hour that a customer waits to be served is $40. ISE 460/ETM 593 - 1

M/M/m model solution ISE 460/ETM 593 - 1

Production space requirement sheet ISE 460/ETM 593 - 1

HOMEWORK: Due at the beginning of lesson 2 Chapter 1 1 5 Chapter 2 2 6 7 10 11 ISE 460/ETM 593 - 1