1. Chapter 16 Selling the Layout

2. Objectives After reading the chapter and reviewing the materials presented the students will be able to: Develop an appropriate presentation highlighting the strengths of the layout. Understand the weakness of the layout. Able to make adjustments to remedy the weakness.

3. The Project Report Outline (example of toolbox plant): 1. The goal is to lay out a manufacturing plant to produce 2,000 toolboxes per 8 hour shift. 2. Set a volume (2,000 units per day) and plant rate (R value or takt time of.173 or 5.8 sets of parts per minute). 3. Drawings of product to include blueprints, an assembly drawing, an exploded drawing, and a parts list. 4. Set a management policy: Inventory policy – maintain a 30 day supply, investment policy – 50% ROI, organizational chart. 5. The process design should include: route sheet for each part, number of machines, assembly chart, etc. 6. The activity relationship should include: the flow analysis. 7. The workstation design should include: machine layouts, aisles. 8. Auxiliary services should include: receiving, shipping, stores, warehouse, and maintenance. 9. Employee services should include: parking lots, locker rooms, toilets, cafeteria, and medical services. 10. The office should include: an organizational chart. 11. Area allocation should include: total space requirements, building size, and area allocation diagram. 12. Material handling systems : should state types and number of material handling units, and conveyor speeds. 13. The layout should include: the plat plan, and the master plan.

4. The Presentation The presentation should be visual. Otherwise the managers could read the report and there would be no need for a presentation. Using the product model, the presenter can cover: the goal, the volume and plant rate, the product, the make or buy decisions, and the process design. With the layout, the presenter can cover: the process design, assembly and packout, the operations chart, the activity relationships, the employee services, and the area allocation diagram. The plot plan will show how the plant is positioned on the lot. The presentation should include a cost budget. With every presentation, you will adjust the layout, making it better and better.

5. Approval The first presentation would be to your supervisor and the production manager. Their experience will almost always point out problems with your plans. The approval process is important. Top manager input is valuable and will make the project better. When the project is successful, you will get credit, because you made it happen. Project managers who come in under budget are promotable.

6. Sourcing Sourcing is the process of finding suppliers that can provide the equipment, material, and supplies needed for a project. The suppliers can also help with special design requirements, calculations, and layout work. The purchasing department normally does all the company’s buying because of its special skill and knowledge.

7. Installation The equipment must be and connected to power, water, or air. The installation costs money, so it must be a part of the budget. The installation takes time, so it must be a part of the schedule. Installation ends with the project engineer, or an engineer from the supplier trying out the machine.

8. Engineering Pilot An engineering pilot is a tryout of all the tools, equipment, and raw materials to see if the plant can make the product. The first small order of parts or raw material should be available, and a few production people are asked to run every operation. The engineering pilot finds the problems with machines, tools, and materials so that they can be corrected.

9. Production Start Within 2 weeks to a month of the engineering pilot, the production will start. The supervisor and lead person must train everyone. This is hectic time, and most production engineers feel that they are most productive during production starts. First year products average 70% production efficiency. Second year product averages 85% efficiency. Use the first year efficiency of 70% when calculating the R value (plant rate).

10. Debugging and Follow Up Depending on the complexity of the product and the process, debugging can last from 2 months to a year. After the debugging period is the follow up period. There is no ending to follow up. Once you stop following up, improvements stop, and productivity and quality will start on a down slide.

11. Summary The presentation should be visual. Otherwise the managers could read the report and there would be no need for a presentation. Using the product model, the presenter can cover: the goal, the volume and plant rate, the product, the make or buy decisions, and the process design. With the layout, the presenter can cover: the process design, assembly and pack out, the operations chart, the activity relationships, the employee services, and the area allocation diagram. The first presentation would be to your supervisor and the production manager. Their experience will almost always point out problems with your plans. The approval process is important. Top manager input is valuable and will make the project better. Sourcing is the process of finding suppliers that can provide the equipment, material, and supplies needed for a project. The installation costs money, so it must be a part of the budget. The installation takes time, so it must be a part of the schedule. An engineering pilot is a tryout of all the tools, equipment, and raw materials to see if the plant can make the product. The engineering pilot finds the problems with machines, tools, and materials so that they can be corrected. Within 2 weeks to a month of the engineering pilot, the production will start. The supervisor and lead person must train everyone. Depending on the complexity of the product and the process, debugging can last from 2 months to a year.

12. Home Work 1.Why should the presentation be visual? 2.Why is the approval process important?