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Long-Range Capacity Planning and Facility Location

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Chapter 7 of Gaither 12/19/95 Edited by ... ArchiCAD, AutoSketch, AutoCAD Computer simulation Can simulate proposed system layout in operation and measure its ... – PowerPoint PPT presentation

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Title: Long-Range Capacity Planning and Facility Location


1
(No Transcript)
2
Chapter 5, Part B
  • Facility Layout
  • Manufacturing and Services

3
Overview
  • Facility Layout
  • Manufacturing Facility Layouts
  • Analyzing Manufacturing Facility Layouts
  • Service Facility Layouts
  • Wrap-Up What World-Class Companies Do

4
Facility Layout
  • Facility layout means planning
  • for the location of all machines, utilities,
    employee workstations, customer service areas,
    material storage areas, aisles, restrooms,
    lunchrooms, internal walls, offices, and computer
    rooms
  • for the flow patterns of materials and people
    around, into, and within buildings

5
Locate All Areas In and Around Buildings
  • Equipment
  • Work stations
  • Material storage
  • Rest/break areas
  • Utilities
  • Eating areas
  • Aisles
  • Offices

6
Characteristics of the Facility Layout Decision
  • Location of these various areas impacts the flow
    through the system.
  • The layout can affect productivity and costs
    generated by the system.
  • Layout alternatives are limited by
  • the amount and type of space required for the
    various areas
  • the amount and type of space available
  • the operations strategy
  • . . . more

7
Characteristics of the Facility Layout Decision
  • Layout decisions tend to be
  • Infrequent
  • Expensive to implement
  • Studied and evaluated extensively
  • Long-term commitments

8
Manufacturing Facility Layouts
9
Materials Handling
  • The central focus of most manufacturing layouts
    is to minimize the cost of processing,
    transporting, and storing materials throughout
    the production system.
  • Materials used in manufacturing include
  • Raw material
  • Purchased components
  • Work-in-progress
  • Finished goods
  • Packaging material
  • Maintenance, repair, and operating supplies

10
Materials Handling
  • A materials-handling system is the entire network
    of transportation that
  • Receives material
  • Stores material in inventories
  • Moves material between processing points
  • Deposits the finished products into vehicles for
    delivery to customers

11
Materials Handling
  • Material-Handling Principles
  • Move directly (no zigzagging/backtracking)
  • Minimize human effort required
  • Move heavy/bulky items the shortest distances
  • Minimize number of times same item is moved
  • MH systems should be flexible
  • Mobile equipment should carry full loads

12
Materials Handling
  • Material-Handling Equipment
  • Automatic transfer devices
  • Containers/pallets/hand carts
  • Conveyors
  • Cranes
  • Elevators
  • Pipelines
  • Turntables
  • AGVS

13
Basic Layout Forms
  • Process
  • Product
  • Cellular
  • Fixed-Position
  • Hybrid

14
Process (Job Shop) Layouts
  • Equipment that perform similar processes are
    grouped together
  • Used when the operations system must handle a
    wide variety of products in relatively small
    volumes (i.e., flexibility is necessary)

15
Characteristics of Process Layouts
  • General-purpose equipment is used
  • Changeover is rapid
  • Material flow is intermittent
  • Material handling equipment is flexible
  • Operators are highly skilled
  • . . . more

16
Characteristics of Process Layouts
  • Technical supervision is required
  • Planning, scheduling and controlling functions
    are challenging
  • Production time is relatively long
  • In-process inventory is relatively high

17
Product (Assembly Line) Layouts
  • Operations are arranged in the sequence required
    to make the product
  • Used when the operations system must handle a
    narrow variety of products in relatively high
    volumes
  • Operations and personnel are dedicated to
    producing one or a small number of products

18
Characteristics of Product Layouts
  • Special-purpose equipment are used
  • Changeover is expensive and lengthy
  • Material flow approaches continuous
  • Material handling equipment is fixed
  • Operators need not be as skilled
  • . . . more

19
Characteristics of Product Layouts
  • Little direct supervision is required
  • Planning, scheduling and controlling functions
    are relatively straight-forward
  • Production time for a unit is relatively short
  • In-process inventory is relatively low

20
Cellular Manufacturing Layouts
  • Operations required to produce a particular
    family (group) of parts are arranged in the
    sequence required to make that family
  • Used when the operations system must handle a
    moderate variety of products in moderate volumes

21
Characteristics of Cellular ManufacturingRelative
to Process Layouts
  • Equipment can be less general-purpose
  • Material handling costs are reduced
  • Training periods for operators are shortened
  • In-process inventory is lower
  • Parts can be made faster and shipped more quickly

22
Characteristics of Cellular ManufacturingRelative
to Product Layouts
  • Equipment can be less special-purpose
  • Changeovers are simplified
  • Production is easier to automate

23
Fixed-Position Layouts
  • Product remains in a fixed position, and the
    personnel, material and equipment come to it
  • Used when the product is very bulky, large, heavy
    or fragile

24
Hybrid Layouts
  • Actually, most manufacturing facilities use a
    combination of layout types.
  • 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.

25
New Trends in Manufacturing Layouts
  • Designed for quality
  • Designed for flexibility - to quickly shift to
    different product models or to different
    production rates
  • Cellular layout within larger process layouts
  • Automated material handling
  • U-shaped production lines
  • . . . more

26
New Trends in Manufacturing Layouts
  • More open work areas with fewer walls,
    partitions, or other obstacles
  • Smaller and more compact factory layouts
  • Less space provided for storage of inventories
    throughout the layout

27
Planning Manufacturing Facility Layouts
  • Two Categories of Software Tools
  • Computer aided design (CAD)
  • Allows 3-D, full-color views of facility design
  • Allows virtual walk-throughs
  • Ex. ArchiCAD, AutoSketch, AutoCAD
  • Computer simulation
  • Can simulate proposed system layout in operation
    and measure its performance
  • Ex. ProModel, VisFactory, SIMPROCESS

28
Planning Manufacturing Facility Layouts
  • Process and Warehouse Layouts
  • Product Layouts
  • Cellular Manufacturing Layouts

29
Planning Manufacturing Facility Layouts
  • Process Layouts
  • Primary focus is on the efficient flow of
    materials
  • The wide variety of potential product routings
    through the facility can be evaluated using
    computer simulation
  • Warehouse Layouts
  • Primary focus is the fast storage and retrieval
    of inventory items
  • Decisions about aisle size/placement and location
    of each inventory item can be evaluated using
    computer simulation

30
Planning Manufacturing Facility Layouts
  • Product Layouts
  • Primary focus is on the analysis of production
    lines
  • The goal of the production line analysis is to
  • Determine how many workstations to have
  • Determine which tasks to assign to which
    workstation
  • Minimize the number of workers machines used
  • Provide the required amount of capacity
  • Line balancing is a key part of the analysis

31
Planning Product Layouts
  • Line Balancing Procedure
  • 1. Determine the tasks involved in completing 1
    unit
  • 2. Determine the order in which tasks must be
    done
  • 3. Draw a precedence diagram
  • 4. Estimate task times
  • 5. Calculate the cycle time
  • 6. Calculate the minimum number of workstations
  • 7. Use a heuristic to assign tasks to workstations

32
Planning Product Layouts
  • Line Balancing Heuristics
  • Heuristic methods, based on simple rules, have
    been developed to provide good (not optimal)
    solutions to line balancing problems
  • Heuristic methods include
  • Incremental utilization (IU) method
  • Longest-task-time (LTT) method
  • and many others

33
Planning Product Layouts
  • Incremental Utilization Method
  • Add tasks to a workstation in order of task
    precedence one at a time until utilization is
    100 or is observed to fall
  • Then the above procedure is repeated at the next
    workstation for the remaining tasks
  • Pro Appropriate when one or more task times is
    equal to or greater than the cycle time
  • Con Might create the need for extra equipment

34
Planning Product Layouts
  • Longest-Task-Time Method
  • Adds tasks to a workstation one at a time in the
    order of task precedence.
  • If two or more tasks tie for order of precedence,
    the one with the longest task time is added
  • Conditions for its use
  • No task time can be greater than the cycle time
  • There can be no duplicate workstations

35
Example Armstrong Pumps
  • Line Balancing
  • Armstrong produces bicycle tire pumps on a
    production line. The time to perform the 6 tasks
    in producing a pump and their immediate
    predecessor tasks are shown on the next slide.
  • Ten pumps per hour must be produced and 45
    minutes per hour are productive.
  • Use the incremental utilization heuristic to
    combine the tasks into workstations in order to
    minimize idle time.

36
Example Armstrong Pumps
  • Line Balancing
  • Tasks that Time to
  • Immediately Perform
  • Task Precede Task (min.)
  • A -- 5.4
  • B A 3.2
  • C -- 1.5
  • D B,C 2.8
  • E D 17.1
  • F E 12.8
  • Total 42.8

37
Example Armstrong Pumps
  • Line Balancing Network (Precedence) Diagram

A
B
E
D
F
C
38
Example Armstrong Pumps
  • Line Balancing Cycle Time
  • 45/10 4.5 minutes per pump

39
Example Armstrong Pumps
  • Line Balancing Minimum Number of Workstations
  • Minimum
  • Number of
  • Workstations
  • (42.8)(10)/45 9.51 workstations

40
Example Armstrong Pumps
  • Line Balancing Incremental Utilization
    Heuristic
  • WS Tasks Mins./pump WSs
    Incr.Util.
  • 1 A 5.4 5.4/4.51.2 2 60.0
  • 1 A,B 5.4 3.2 8.6/4.51.9 2
    95.0
  • 1 A,B,C 8.6 1.5 10.1/4.52.2 3
    49.8
  • 2 C 1.5 1.5/4.5.33 1 33.3
  • 2 C,D 1.5 2.8 4.3/4.5.96 1
    95.6
  • 2 C,D,E 4.3 17.1 21.4/4.54.8 5
    95.1
  • 3 E 17.1 17.1/4.53.8 4 95.0
  • 3 E,F 17.1 12.8 29.9/4.56.6 7
    94.9
  • 4 F 12.8 12.8/4.52.8 3 94.8

41
Example Armstrong Pumps
  • Line Balancing Utilization of Production Line
  • 9.51/10 .951 95.1

42
Planning Product Layouts
  • Rebalancing a Production Line
  • Changes that can lead to production lines being
    out of balance or having insufficient/excess
    capacity are
  • Changes in demand
  • Machine modifications
  • Variations in employee learning and training

43
Planning Cellular Manufacturing Layouts
  • Cell Formation Decision
  • Which machines are assigned to manufacturing
    cells
  • Which parts will be produced in each cell

44
Planning Cellular Manufacturing Layouts
  • Fundamental Requirements for Parts to be Made in
    Cells
  • Demand for the parts must be high enough and
    stable enough that moderate batch sizes of the
    parts can be produced periodically.
  • Parts must be capable of being grouped into parts
    families.

45
Planning Cellular Manufacturing Layouts
  • More-Complex Issues to be Resolved
  • If all the parts cannot be cleanly divided
    between cells, how will we decide which are to be
    the exceptional parts?
  • If inadequate capacity is available to produce
    all the parts in cells, which parts should be
    made outside the cells?

46
Planning Cellular Manufacturing Layouts
  • Cell Formation Procedure
  • 1. Form the Parts-Machines Matrix.
  • 2. Rearrange the Rows.
  • Place the machines that produce the same parts in
    adjacent rows.
  • 3. Rearrange the Columns.
  • Place the parts requiring the same machines in
    adjacent columns.
  • 4. Use the rearranged parts-machines matrix to
    identify cells, the machines for that cell and
    the parts that will be produced in that cell.

47
Example Maxx Superchargers
  • Cell Formulation
  • Maxx produces superchargers for high
    performance cars and trucks. Maxx has
    implemented a group technology program in its
    shop and now must formulate the manufacturing
    cells. Maxx has identified six parts that meet
    the requirements for CM.
  • The parts-machines matrix on the next slide
    identifies the 6 parts and 5 machines on which
    the parts are presently produced.

48
Example Maxx Superchargers
  • Cell Formulation Original Matrix

Parts
1
2
3
4
5
6
X
X
X
A
X
X
X
X
B
Machines
X
X
C
X
X
D
X
X
X
E
49
Example Maxx Superchargers
  • Cell Formulation Rows Rearranged

Parts
1
2
3
4
5
6
X
X
X
A
X
X
X
E
Machines
X
X
D
X
X
C
X
X
X
X
B
50
Example Maxx Superchargers
  • Cell Formulation Columns Rearranged

Parts
3
5
6
1
2
4
X
X
X
A
X
X
X
E
Machines
X
X
D
X
X
C
X
X
X
X
B
exceptional part
51
Example Maxx Superchargers
  • Cell Formulation Summary
  • 2 manufacturing cells (MC1, MC2) will be used.
  • Parts 3 and 5 will be produced in MC1 on machines
    A and E.
  • Parts 1, 2 and 4 will be produced in MC2 on
    machines B, C and D.
  • Part 6 is an exceptional part that cannot be
    produced within a single cell.

52
Service Facility Layouts
53
Characteristics of Services
  • There may be a diversity of services provided
  • There are three dimensions to the type of
    service
  • Standard or custom design
  • Amount of customer contact
  • Mix of physical goods and intangible services
  • There are three types of service operations
  • Quasi manufacturing
  • Customer-as-participant
  • Customer-as-product

54
Characteristics of Service Facility Layouts
  • The encounter between the customer and the
    service must be provided for.
  • The degree to which customer-related features
    must be provided varies with the amount of
    customer involvement and customer contact.

55
Planning Service Facility Layouts
  • Quasi-Manufacturing Services
  • Several topics previously discussed under
    Manufacturing Layouts are relevant here
  • Principles of material handling
  • CAD and simulation software
  • Line balancing

56
Planning Service Facility Layouts
  • Customer-as-Participant Customer-as-Product
  • An important element is providing for customer
    waiting lines
  • Amount of space needed for service counters and
    waiting customers
  • Placement of waiting lines in overall layout

57
Planning Service Facility Layouts
  • For many service operations, layouts are like
    process layouts in manufacturing
  • The departments of hospitals are grouped and
    located according to their processes
  • In some cases, closeness ratings are used to
    reflect the desirability of having one department
    near another

58
Using Closeness Ratings to Develop Service
Facility Layouts
Start
Step 1
Let m 1 and n 6.
Identify dept. pairs with CR of m.
Step 2
Develop layout with dept. pairs iden- tified in
Step 2 adjacent to one another.
Step 3
Let m m 1 and n n - 1.
Identify dept. pairs with CR of n.
Step 4
No
Fit the dept. pairs identified in Step 4 into the
trial layout from Step 3.
Step 5
Does m 3 and n 4 ?
Examine the trial layout from Step 5. If any CRs
of dept. pairs are violated, rearrange depts. to
comply with CRs.
Step 6
Yes
Stop
59
Using Closeness Ratings to Develop Service
Facility Layouts
  • Typical Closeness Ratings
  • Closeness Meaning
  • Rating of Rating
  • 1 Necessary
  • 2 Very Important
  • 3 Important
  • 4 Slightly Important
  • 5 Unimportant
  • 6 Undesirable

60
Example AG Advertising
  • Using Closeness Ratings
  • AG Advertising is moving into a new office
    suite having seven large, roughly equal size
    rooms, one for each department of the firm.
    Lisa, the manager, must now assign each
    department to a room. She has developed a grid
    of closeness ratings (on the next slide) for the
    21 unique pairs of departments.

61
Example AG Advertising
  • Closeness Ratings Grid
  • Dept. A
  • Dept. B
  • Dept. C
  • Dept. D
  • Dept. E
  • Dept. F
  • Dept. G

5
2
6
6
2
1
4
4
3
3
4
1
4
6
5
1
5
2
2
3
3
62
Example AG Advertising
  • Unassigned Rooms of Office Suite

63
Example AG Advertising
  • Layout Satisfying All Pairings of
  • Departments with 1 Closeness Ratings
  • CR 1
  • B D
  • B F
  • C G

B
D
F
C
G
64
Example AG Advertising
  • Trying to satisfying all pairings of departments
    with
  • 6 closeness ratings, we see that Dept. C needs
    to be
  • moved.
  • CR 1 CR 6
  • B D A D
  • B F B C
  • C G

B
D
F

G
C
65
Example AG Advertising
  • Layout Satisfying All Pairings of Departments
    with 6 Closeness Ratings (note that we swapped
    Dept. D and Dept. F)
  • CR 1 CR 6
  • B D A D
  • B F B C
  • C G

B
F
A
D
E
G
C
66
Wrap-Up World-Class Practice
  • Strive for flexibility in layouts
  • Multi-job training of workers
  • Sophisticated preventive-maintenance programs
  • Flexible machines
  • Empowered workers trained in problem solving
  • Layouts small and compact
  • Services follow the above practices plus
    incorporate customer needs in design

67
End of Chapter 5, Part B
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