1. Introduction to Manufacturing Facilities Design and Material Handling
Chapter 1
Introduction to Manufacturing Facilities Design and Material Handling

2. Objectives
After reading the chapter and reviewing the materials presented the students will be able to:
Understand the importance of a systematic approach to facilities planning
Identify the various types of waste
Understand systematic layout procedure

3. The Importance of Manufacturing Facilities Design and Material Handling
The selection of the location may be influenced by economic factors such as tax incentives, low cost land, or relaxed environmental regulations.
Factors that may influence location strategy may include raw materials, energy, human resources and lower labor costs.
Facilities design includes plant location, building design, plant layout, and material handling systems.
Manufacturing facilities design is the organization of the company’s physical assets to promote the efficient use resources such as people, material, equipment, and energy.
Building design is an architectural job, thus the architectural firm’s expertise in building design and construction techniques is extremely important to the facilities design project.
Layout is the physical arrangement of production machines and equipment, workstations, people, location of materials of all kinds and stages, and material handling equipment.
Material handling is simply defined as moving material. Material handling accounts for about 50% of all industrial injuries and from 40 to 80% of all operating costs.

4. The Importance of Manufacturing Facilities Design and Material Handling
Facilities planners ask the six questions ( why, who, what, where, when, and how) about everything that can happen to a part flowing through a manufacturing facility (operation, transportation, inspection, storage, and delay) to eliminate steps, combine steps, change sequence of steps or simplify.
The five S’s principles are: 1. Sifting (organization). Keeping the minimum of what is required will save space, inventory, and money. 2. Sorting (arrangement). Everything has a specific place, and everything in its place is a visual management philosophy that affects facilities layout. 3. Sweeping (cleaning). A clean plant is a result of a facility layout that has been thought to provide room for everything. 4. Spic and Span (hygiene). A safe plant is a result of good layout planning. 5. Strict (discipline). Following the procedures and standardized methods and making them a habit will keep the plant operating efficiently and safely.
The five why’s will ensure that the solution to a problem is not a symptom of the problem, but rather, the base cause (page 4).

5. Lean Thinking and Lean Manufacturing
Lean manufacturing is a concept whereby all production people work together to eliminate waste.
Muda (waste) is defined as any expense that does not help produce value.
There are 8 kinds of muda: overproduction, waiting, transportation, processing, inventory, motion, rework, and poor people utilization.
Kaizen is the Japanese word for continuous improvement. Every person in the company is encouraged to search for new ideas and opportunities to further improve the organization and its processes including reducing waste.
Kanban is a signal board that communicates the need for material and visually tells the operator to produce another unit or quantity. With pull systems parts are produced only when the need arises and they have been requested or there is a pull from production operations.
Value stream mapping (VSM) is the process of assessment of each component or the step of production to determine the extent to which it contributes to operational efficiency or product quality. VSM can reduce or eliminate excessive material handling, eliminate wasted space, create a better control of all types of inventory and streamline various production steps.

6. The Goals of Manufacturing Facilities Design and Material Handling
A mission statement communicates the primary goals and the culture of the organization to the facilities planner.
1. Minimize unit and project costs: It does not mean buying the cheapest machine, because the most expensive machine may produce the lowest unit cost.
2. Optimize quality: Quality and cost are the two primary competitive fronts. You must constantly balance cost and quality.
3. Promoting the effective use of people, equipment, space, and energy: Providing convenient location for services like restrooms, locker rooms, cafeterias, tool cribs and any other service will increase productivity.
4. Provide for the convenience, safety, and comfort of our employees: Drinking fountains, parking lot design and location, employee entrances, as well as restrooms and cafeterias must be convenient to all employees.
5. Control project costs: Budgeting and then living within the budget are two things that successful managers and engineers learn to do early in their careers.
6. Achieve the production start date: For seasonable products, if you miss the start date, you miss the whole season. Schedules must be met.
7. Build flexibility into the plan: Design buildings that will be able to support a wide variety of uses.
8. Reduce or eliminate excessive inventory: Inventory costs about 35% to hold. Minimize all forms (raw material, work in progress, finished goods) of inventory.
9. Achieve miscellaneous goals: Like using plug-in plug-out equipment to allow operators to move equipment easily for flexibility. Goals should be measurable and achievable.

7. The Manufacturing Facilities Design Procedure
Resist jumping into the layout phase before collecting and analyzing data:
1. Determine what will be produced: for example a toolbox.
2. Determine how many will be made per unit of time: for example 1,500 per 8 hour shift.
3. Determine what parts will be made or purchased complete: some companies but all parts, and they are called assembly plants.
4. Determine how each part will be fabricated. This is called process planning and is usually done by a manufacturing engineer.
5. Determine he sequence of assembly: This is called assembly line balancing.
6. Set time standards for each operation. It is impossible to design a plant layout without time standards.
7. Determine the plant rate (takt time). This is how fast the facility needs to produce. For example to make 1,500 units in 8 hours, you have to make a part every .32 minute (3 parts per minute).
8. Determine the number of machines needed. For example if a machine has a time standard of .75 minutes per part, .75/.32 = 2.34 machines. So you will need 3 machines.
9. Balance assembly lines or work cells. Try to give everyone as close to the same amount of work as possible.
10. Study material flow patterns to establish the best (shortest distance through the facility) flow possible.
11. Determine activity relationships. How close do departments need to be to each other to minimize people and material movement.
12. Lay out each workstation. These layouts will lead to department layouts, and then to the facility layout.
13. Identify the need for personal plant and services, and provide the space needed.
14. Identify office needs and layout as needed.
15. Develop total space requirements from the above information.

8. The Manufacturing Facilities Design Procedure (continued)
16. Select material handling equipment.
17. Allocate the area according to the space needed and the activity relationships established in 11 above.
18. Develop a plot plan and the building shape. How will the facility fit on the property.
19. Construct a master plan. This is the manufacturing facility design – the last page of the project and the result of the data collected and the decisions made.
20. Seek input and adjust. Ask your peers to see if they can punch holes in your design before you present it to management for approval.
21. Seek approvals, take advice, and change as needed.
22. Install the layout.
23. Start production.
24. Adjust as needed and finalize the project report and budget performance.

9. Types and Sources of Manufacturing Facilities Design Projects
1. New facility: There are fewer restrictions because you do not have to be concerned with old facilities.
2. New product: Some common equipment may be shared with an old product. A corner of the plant is set aside for a new product.
3. Design changes: Layout may be affected by these changes.
4. Cost reduction: May find a better layout that will produce more products with less worker effort.
5. Retrofit: Constraints include existing walls, floor pits, low ceilings, and any other permanent fixtures that may pose an obstacle to an efficient material flow.
If designers study the flow, they can improve it by changing the facilities layout.

10. Computers and Simulation in Manufacturing Facilities Design
Simulation can be used to predict the behavior of a manufacturing or service system by actually tracking the movements and interaction of the system components and aiding in optimizing such systems.
There are a number of user friendly advanced simulation packages available for simulating the working of a factory, inventory, warehousing, or logistics.
The simulation software generates detailed statistics describing the behavior of the system under study.

11. ISO 9000 and Facilities Planning
A large number of corporations demand their vendors be registered under ISO 9000 or other quality standards.
Management must continually monitor operations for improvement opportunities.
All procedures and processes must tie back to achieving customer satisfaction.
Systems should be developed to identify, document, evaluate, and segregate nonconforming occurrences.

12. Summary
Facilities design includes plant location, building design, plant layout, and material handling systems.
Manufacturing facilities design is the organization of the company’s physical assets to promote the efficient use resources such as people, material, equipment, and energy.
Material handling is simply defined as moving material. Material handling accounts for about 50% of all industrial injuries and from 40 to 80% of all operating costs.
Facilities planners ask the six questions ( why, who, what, where, when, and how) about everything that can happen to a part flowing through a manufacturing facility (operation, transportation, inspection, storage, and delay) to eliminate steps, combine steps, change sequence of steps or simplify.
Muda (waste) is defined as any expense that does not help produce value. There are 8 kinds of muda: overproduction, waiting, transportation, processing, inventory, motion, rework, and poor people utilization.
Kaizen is the Japanese word for continuous improvement. Every person in the company is encouraged to search for new ideas and opportunities to further improve the organization and its processes including reducing waste.
Value stream mapping (VSM) is the process of assessment of each component or the step of production to determine the extent to which it contributes to operational efficiency or product quality. VSM can reduce or eliminate excessive material handling, eliminate wasted space, create a better control of all types of inventory and streamline various production steps.
A mission statement communicates the primary goals and the culture of the organization to the facilities planner.
Resist jumping into the layout phase before collecting and analyzing data (25 steps).
If designers study the flow, they can improve it by changing the facilities layout.
Simulation can be used to predict the behavior of a manufacturing or service system by actually tracking the movements and interaction of the system components and aiding in optimizing such systems.
A large number of corporations demand their vendors be registered under ISO 9000 or other quality standards.

13. Home Work What does facilities design include?
What is muda? What are the 8 kinds of muda?