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8 - 1 Chapter 9 : Layout Strategies

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Page 1: 8 - 1 Chapter 9 : Layout Strategies. 8 - 2 Outline  The Strategic Importance of Layout Decisions  Types of Layout  Office Layout  Retail Layout

8 - 1

Chapter 9 : Layout StrategiesChapter 9 : Layout Strategies

Page 2: 8 - 1 Chapter 9 : Layout Strategies. 8 - 2 Outline  The Strategic Importance of Layout Decisions  Types of Layout  Office Layout  Retail Layout

8 - 2

Outline

The Strategic Importance of Layout Decisions

Types of Layout

Office Layout

Retail Layout

Warehousing and Storage Layouts

Fixed-Position Layout

Page 3: 8 - 1 Chapter 9 : Layout Strategies. 8 - 2 Outline  The Strategic Importance of Layout Decisions  Types of Layout  Office Layout  Retail Layout

8 - 3

Outline – Continued

Process-Oriented Layout

Work Cells Requirements of Work Cells

Staffing and Balancing Work Cells

The Focused Work Center and the Focused Factory

Repetitive and Product-Oriented Layout Assembly-Line Balancing

Page 4: 8 - 1 Chapter 9 : Layout Strategies. 8 - 2 Outline  The Strategic Importance of Layout Decisions  Types of Layout  Office Layout  Retail Layout

8 - 4

Work Cells

Reorganizes people and machines into groups to focus on single products or product groups

Group technology identifies products that have similar characteristics for particular cells

Volume must justify cells

Cells can be reconfigured as designs or volume changes

Page 5: 8 - 1 Chapter 9 : Layout Strategies. 8 - 2 Outline  The Strategic Importance of Layout Decisions  Types of Layout  Office Layout  Retail Layout

8 - 5

Advantages of Work Cells

1. Reduced work-in-process inventory

2. Less floor space required

3. Reduced raw material and finished goods inventory

4. Reduced direct labor

5. Heightened sense of employee participation

6. Increased use of equipment and machinery

7. Reduced investment in machinery and equipment

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8 - 6

Requirements of Work Cells

1. Identification of families of products

2. A high level of training, flexibility and empowerment of employees

3. Being self-contained, with its own equipment and resources

4. Test (poka-yoke) at each station in the cell

Page 7: 8 - 1 Chapter 9 : Layout Strategies. 8 - 2 Outline  The Strategic Importance of Layout Decisions  Types of Layout  Office Layout  Retail Layout

8 - 7

Improving Layouts Using Work Cells

Current layout - workers in small closed areas.

Improved layout - cross-trained workers can assist each other. May be able to add a third worker as additional output is needed.

Figure 9.10 (a)

Page 8: 8 - 1 Chapter 9 : Layout Strategies. 8 - 2 Outline  The Strategic Importance of Layout Decisions  Types of Layout  Office Layout  Retail Layout

8 - 8

Improving Layouts Using Work Cells

Current layout - straight lines make it hard to balance tasks because work may not be divided evenly

Improved layout - in U shape, workers have better access. Four cross-trained workers were reduced.

Figure 9.10 (b)

U-shaped line may reduce employee movement and space requirements while enhancing communication, reducing the number of workers, and facilitating inspection

Page 9: 8 - 1 Chapter 9 : Layout Strategies. 8 - 2 Outline  The Strategic Importance of Layout Decisions  Types of Layout  Office Layout  Retail Layout

8 - 9

Staffing and Balancing Work Cells

Determine the takt timeDetermine the takt time

Takt time =Total work time available

Units required

Determine the number Determine the number of operators requiredof operators required

Workers required =Total operation time required

Takt time

Page 10: 8 - 1 Chapter 9 : Layout Strategies. 8 - 2 Outline  The Strategic Importance of Layout Decisions  Types of Layout  Office Layout  Retail Layout

8 - 10

Staffing Work Cells Example

600 Mirrors per day requiredMirror production scheduled for 8 hours per dayFrom a work balance

chart total operation time = 140 seconds

Sta

nd

ard

tim

e re

qu

ired

Operations

Assemble Paint Test Label Pack forshipment

60

50

40

30

20

10

0

Page 11: 8 - 1 Chapter 9 : Layout Strategies. 8 - 2 Outline  The Strategic Importance of Layout Decisions  Types of Layout  Office Layout  Retail Layout

8 - 11

Staffing Work Cells Example

600 Mirrors per day requiredMirror production scheduled for 8 hours per dayFrom a work balance

chart total operation time = 140 seconds

Takt time = (8 hrs x 60 mins) / 600 units = .8 mins = 48 seconds

Workers required =Total operation time required

Takt time

= 140 / 48 = 2.91

Page 12: 8 - 1 Chapter 9 : Layout Strategies. 8 - 2 Outline  The Strategic Importance of Layout Decisions  Types of Layout  Office Layout  Retail Layout

8 - 12

Repetitive and Product-Oriented Layout

1. Volume is adequate for high equipment utilization

2. Product demand is stable enough to justify high investment in specialized equipment

3. Product is standardized or approaching a phase of life cycle that justifies investment

4. Supplies of raw materials and components are adequate and of uniform quality

Organized around products or families of similar high-volume, low-variety products

Page 13: 8 - 1 Chapter 9 : Layout Strategies. 8 - 2 Outline  The Strategic Importance of Layout Decisions  Types of Layout  Office Layout  Retail Layout

8 - 13

Product-Oriented Layouts

Fabrication line

Builds components on a series of machines

Machine-paced

Require mechanical or engineering changes to balance

Assembly line

Puts fabricated parts together at a series of workstations

Paced by work tasks

Balanced by moving tasksBoth types of lines must be balanced so that the time to perform the work at each station is the same

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8 - 14

Product-Oriented Layouts

1. Low variable cost per unit

2. Low material handling costs

3. Reduced work-in-process inventories

4. Easier training and supervision

5. Rapid throughput

AdvantagesAdvantages

1. High volume is required

2. Work stoppage at any point ties up the whole operation

3. Lack of flexibility in product or production rates

DisadvantagesDisadvantages

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8 - 15

Disassembly Lines

Disassembly is being considered in new product designs

“Green” issues and recycling standards are important consideration

Automotive disassembly is the 16th largest industry in the US

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8 - 16

Assembly-Line Balancing

Objective is to minimize the imbalance between machines or personnel while meeting required output

Starts with the precedence relationships Determine cycle time

Calculate theoretical minimum number of workstations

Balance the line by assigning specific tasks to workstations

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Wing Component Example

This means that tasks B and E cannot be done until task A has been completed

Performance Task Must FollowTime Task Listed

Task (minutes) Below

A 10 —B 11 AC 5 BD 4 BE 12 AF 3 C, DG 7 FH 11 EI 3 G, H

Total time 66

Page 18: 8 - 1 Chapter 9 : Layout Strategies. 8 - 2 Outline  The Strategic Importance of Layout Decisions  Types of Layout  Office Layout  Retail Layout

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Wing Component Example

Performance Task Must FollowTime Task Listed

Task (minutes) Below

A 10 —B 11 AC 5 BD 4 BE 12 AF 3 C, DG 7 FH 11 EI 3 G, H

Total time 66 I

GF

C

D

H

B

E

A

10

1112

5

4 3

711 3

Figure 9.13

Page 19: 8 - 1 Chapter 9 : Layout Strategies. 8 - 2 Outline  The Strategic Importance of Layout Decisions  Types of Layout  Office Layout  Retail Layout

8 - 19

I

GF

C

D

H

B

E

A

10

1112

5

4 3

711 3

Figure 9.13

Performance Task Must FollowTime Task Listed

Task (minutes) Below

A 10 —B 11 AC 5 BD 4 BE 12 AF 3 C, DG 7 FH 11 EI 3 G, H

Total time 66

Wing Component Example480 available

mins per day40 units required

Cycle time =

Production time available per day

Units required per day

= 480 / 40= 12 minutes per unit

Minimum number of

workstations=

∑ Time for task i

Cycle time

n

i = 1

= 66 / 12= 5.5 or 6 stations

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480 available mins per day

40 units required

Cycle time = 12 mins

Minimum workstations = 5.5 or 6

Performance Task Must FollowTime Task Listed

Task (minutes) Below

A 10 —B 11 AC 5 BD 4 BE 12 AF 3 C, DG 7 FH 11 EI 3 G, H

Total time 66Station 1

Wing Component Example

Station 2

Station 3Station 3

Station 4

Station 5

Station 6Station 6

I

GF

H

C

D

B

E

A

10 11

12

5

4

3 7

11

3

Figure 9.14

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Performance Task Must FollowTime Task Listed

Task (minutes) Below

A 10 —B 11 AC 5 BD 4 BE 12 AF 3 C, DG 7 FH 11 EI 3 G, H

Total time 66

Wing Component Example480 available

mins per day40 units required

Cycle time = 12 mins

Minimum workstations = 5.5 or 6

Efficiency =∑ Task times

(Actual number of workstations) x (Largest cycle time)

= 66 minutes / (6 stations) x (12 minutes)

= 91.7%

Page 22: 8 - 1 Chapter 9 : Layout Strategies. 8 - 2 Outline  The Strategic Importance of Layout Decisions  Types of Layout  Office Layout  Retail Layout

8 - 22

Summary

The Strategic Importance of Layout Decisions

Types of Layout

Office Layout

Retail Layout

Warehousing and Storage Layouts

Fixed-Position Layout

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Summary – Continued

Process-Oriented Layout

Work Cells Requirements of Work Cells

Staffing and Balancing Work Cells

The Focused Work Center and the Focused Factory

Repetitive and Product-Oriented Layout Assembly-Line Balancing

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8 - 24

Chapter 12: Inventory ManagementChapter 12: Inventory Management

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Outline

Global Company Profile: Amazon.com

The Importance of Inventory Functions of Inventory

Types of Inventory

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Outline – Continued

Managing Inventory ABC Analysis

Record Accuracy

Cycle Counting

Control of Service Inventories

Inventory Models Independent vs. Dependent Demand

Holding, Ordering, and Setup Costs

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Outline – Continued

Inventory Models for Independent Demand The Basic Economic Order Quantity

(EOQ) Model

Minimizing Costs

Reorder Points

Production Order Quantity Model

Quantity Discount Models

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Outline – Continued

Probabilistic Models and Safety Stock Other Probabilistic Models

Single-Period Model

Fixed-Period (P) Systems

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Inventory Management

The objective of inventory management is to strike a balance between inventory

investment and customer service

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Importance of Inventory

One of the most expensive assets of many companies representing as much as 50% of total invested capital

Operations managers must balance inventory investment and customer service

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Functions of Inventory

1. To decouple or separate various parts of the production process

2. To decouple the firm from fluctuations in demand and provide a stock of goods that will provide a selection for customers

3. To take advantage of quantity discounts

4. To hedge against inflation

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Types of Inventory

Raw material Purchased but not processed

Work-in-process Undergone some change but not completed

Maintenance/repair/operating (MRO) Necessary to keep machinery and

processes productive

Finished goods Completed product awaiting shipment

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The Material Flow Cycle

Figure 12.1

Input Wait for Wait to Move Wait in queue Setup Run Outputinspection be moved time for operator time time

Cycle time

95% 5%

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Managing Inventory

1. How inventory items can be classified

2. How accurate inventory records can be maintained