facility planning

Manufacturing and Process Selection

Factors Influencing Process Choices
Volume: Average quantity of the products produced in a manufacturing system Low volume: Turnkey project management firms such as L&T and BHEL High volume: Consumer non-durable and FMCG sector firms, Automobile, Chemical Processing Mid-volume: Consumer durables, white goods and several industrial productsVariety: Number of alternative products and variants of each product that is offered by a manufacturing system Variety of product offerings is likely to introduce variety at various processes in the system; alternative production resources, materials, and skill of workersFlow: Flow indicates the nature and intensity of activities involved in conversion of components and material from raw material stage to finished goods stage

Relationship between volume and variety

Volume

Variety

Mass

Production

Petrochemicals,

Automobile

Project

Organisations

Turnkey Project

Execution

Mid volume

Mid variety

Motor Manufacturing

Pharmaceuticals

High

High

Processes & Operations Systems
Available Alternatives

Two broad process classifications include

Intermittent operations produce a variety of products in lower volumes

Repetitive operations produce one or a few standardized products in high volume

Process Selection
Process selection is based on five considerationsType of process; range from intermittent to continuousDegree of vertical integrationFlexibility of resourcesMix between capital & human resourcesDegree of customer contact

Process Selection
Process types can be:Project process /Job Shop make a one-at-a-time product exactly to customer specificationsBatch process small quantities of product in groups or batches based on customer orders or specifications

Process Selection

Line process large quantities of a standard product

Continuous process very high volumes of a fully standard product

2007 Wiley

2007 Wiley

Underlying Process Relationship Between Volume and Standardization Continuum

Differences between Intermittent and Repetitive Operations

Decision

Intermittent Operation

Repetitive Operation

Product variety

Great

Small

Degree of standardization

Low

High

Organization of resources

Grouped by Function

Line flow

Path of products

Varied, depends on product

Line flow

Factor driving production

Customer orders

Forecast of demand

Critical resource

Labor

Capital

Type of equipment

General purpose

Specialized

Degree of automation

Low

High

Throughput time

Longer

Shorter

Work-in-process inventory

More

Less

Designing Processes
Process design tools includeProcess flow analysis Process flowchart (Also used to evaluate and improve processes.)Design considerations includeMake-to-stock strategyAssemble-to-order strategyMake-to-order strategy

Process Design Tools
Process flow analysis is a tool used to analyze and document the sequence of steps within a total process. Usually first step in Process Reengineering.Process Re-engineering is a structured approach used when major business changes are required as a result of:Major new productsQuality improvement neededBetter competitorsInadequate performance

Examples: Giving an admission ticket to a customer, installing a engine in a car, etc.

Examples: How much change should be given to a customer, which wrench should be used, etc.

Process Analysis Terms

Process: Is any part of an organization that takes inputs and transforms them into outputs

Flowchart Symbols

Tasks or operations

Decision Points

4

Examples: Sheds, lines of people waiting for a service, etc.

Examples: Customers moving to a seat, mechanic getting a tool, etc.


Cycle Time: Is the average successive time between completions of successive units

Storage areas or queues

Flows of materials or customers

Flowchart Symbols

4

Example: Flowchart of Student Going to School

Utilization: Is the ratio of the time that a resource is actually activated relative to the time that it is available for use
Yes

No

Goof off

Go to school today?

Walk to class

Drive to school

4

Types of Processes

Other Process Terminology

Blocking

Occurs when the activities in a stage must stop because there is no place to deposit the item just completed

Starving

If an employee is waiting at a work station and no work is coming to the employee to process.

Single-stage Process

Stage 1

Stage 1

Stage 2

Stage 3

Multi-stage Process

4

Other Process Terminology
BottleneckIf an employee works too slow in a multi-stage process, work will begin to pile up in front of that employee. In this is case the employee represents the limited capacity causing the bottleneck.PacingRefers to the fixed timing of the movement of items through the process
A buffer refers to a storage area between stages where the output of a stage is placed prior to being used in a downstream stage
Make-to-orderOnly activated in response to an actual orderMake-to-stockCustomer orders are served from target stocking level
4

Process Design Tools

2007 Wiley

2007 Wiley

Process Performance Metrics
Operation time = Setup time + Run timeThroughput time = Average time for a unit to move through the systemVelocity = Throughput time
Value-added time
Cycle time = Average time between completion of unitsThroughput rate = 1 .
Cycle time
Efficiency = Actual output
Standard Output

17

Process Performance Metrics (Cont.)
Productivity = Output
Input
Utilization = Time Activated
Time Available

Process Throughput Time Reduction

Perform activities in parallel

Change the sequence of activities

Reduce interruptions

17

Process Performance Metrics
1.bin

Linking Product Design & Process Selection
Product design and process selection directly linkedType of product selected defines type of operation requiredType of operation available defines broader organizational aspects such asEquipment requiredFacility arrangementOrganizational structure

Linking Design & Process Selection
The organizational strategy drives decisions about competitive priorities. Competitive priorities drive decisions about product design. Product design decisions drive process design decisions. Product and process decisions drive operations planning and control decisions.

Product and Service Strategy
Type of operation is directly related to product and service strategyThree basic strategies includeMake-to-stock; in anticipation of demandAssemble-to-order; built from standard components on orderMake-to-order; produce to customer specification at time of order

Facility Layout and Process Choice

2007 Wiley

2007 Wiley

Facility Location

*

BMW
In the late 1980s fluctuating exchange rates and rising costs convinced BMW that it was time to consider operating a new production facility outside the European borders.A blank page approach was used to compile a list of 250 potential worldwide sites. Analysis pared the list down to 10 options; a location in the United States was preferred due to its proximity to a large market segment for BMWs automobiles.BMW spent 3 1/2 years considered the labor climate, port and road access, geographical requirements and constraints, airport access, and its relations with the governments.The plant was located in Spartanburg, SC, and now employs approximately 4,700 workers who produce more than 500 vehicles a day.

LI & FUNG

European retailer order

10,000 garments

Buy the best Japanese zipper & button from Chaina

Weave & dye in Taiwan

Manufacture garments in Thailand

Buy yarn from a Korean mfgr.

5 weeks later 10,000 garments reach Europe

Ellora Times
In 2001, Ellora Time Pvt. Ltd. (Ellora), a company based in Gujarat, India, was the world's largest manufacturer of clocks. It also manufactured calculators, telephones, timepieces and educational toys. Ajanta and Orpat were closely held Ellora companies with a combined investment of Rs 2 billion. Almost all their products, marketed through a countrywide network of 25,000 dealers and 180 service stations, were leaders in their respective categories. For the year 1999-00, the group recorded a combined turnover of over Rs 2.50 billion. Both Ajanta and Orpat received awards by the Government of India for superior exports performance throughout the 1990s. Ajanta, an ISO 9002 certified company, had even received the Best Electronics Industry'award many times.

Ellora Times
In early 2001, Ellora shocked the corporate world by announcing its decision to shift its manufacturing activities to China.

Mitshubishi at HaldiaHero Hona at UttranchalWipro in HimachalTata in SingurBio-con in Andhrapradesh

How Location
fits the Operations Management Philosophy

Operations As a Competitive

Weapon

Operations Strategy

Project Management

Process Strategy

Process Analysis

Process Performance and Quality

Constraint Management

Process Layout

Lean Systems

Supply Chain Strategy

Location

Inventory Management

Forecasting

Sales and Operations Planning

Resource Planning

Scheduling

Location Factors

Factors Affecting
the Location Decision
Economic Site acquisition, preparation and construction costsLabor costs, skills and availabilityUtilities costs and availabilityTransportation costsTaxes
*

Factors Affecting
the Location Decision
Non-economicLabor attitudes and traditionsTraining and employment servicesCommunitys attitudeSchools and hospitalsRecreation and cultural attractionsAmount and type of housing available
*

Facility Types and Their
Dominant Locational Factors
Heavy ManufacturingNear their raw material sourcesAbundant supply of utilitiesLand and construction costs are inexpensiveLight ManufacturingAvailability and cost of laborWarehousingProximity to transportation facilitiesIncoming and outgoing transportation costs
*

Facility Types and Their
Dominant Locational Factors
R&D and High-Tech ManufacturingAbility to recruit/retain scientists, engineers, etc.Near companies with similar technology interestsRetailing and For-Profit ServicesNear concentrations of target customersGovernment and Health/Emergency ServicesNear concentrations of constituents
*

Some Reasons the
Facility Location Decision Arises
Changes in the marketExpansionContractionGeographic shiftChanges in inputsLabor skills and/or costsMaterials costs and/or availabilityUtility costs
*

Some Reasons the
Facility Location Decision Arises
Changes in the environmentRegulations and lawsAttitude of the communityChanges in technology
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Analyzing Service Location Decisions

Consumer Behavior

Research

Market Research

Data Gathering for

Each Location Alternative

Revenue Projections for


Why do customers buy our

products and services?

Who are our customers?

What are their characteristics?

What are the economic projections?

What is the time-phased revenue?

Profit Projections for


What are the projected revenues

less time-phased operating costs?

Where are our customers concentrated?

What are their traffic/spending patterns?

*

Analyzing Industrial Facility Locations
Locating a Single FacilityA simple way to analyze alternative locations is conventional cost analysisLocating Multiple FacilitiesMore sophisticated techniques are often used:Linear programming, computer simulation, network analysis, and others
*

Reasons that Companies Globalize
(Advantages of Globalization)
To get access to cheaper laborTo get access to materialsTo enter new markets and gain market knowledgeTo avoid paying tariffs

Geographical Information Systems and Location Decisions
Geographical information system (GIS) is a system of computer software, hardware, and data that the firms personnel can use to manipulate, analyze, and present information relevant to a location decision. It can be used to:Store databasesDisplay mapsCreate models that can take information from existing datasets, apply analytic functions, and write results into new derived datasets. Together, these three functionalities of data storage, map displays, and modeling are critical parts of an intelligent GIS, used to a varying extent in all GIS applications.

Population density per square kilometer for each census subdivision.

Starbucks locations

Per Capita Household Income Map

Facility Location Models

Location Analysis Methods
Analysis should follow 3 step process:Step 1: Identify dominant location factorsStep 2: Develop location alternativesStep 3: Evaluate locations alternatives

Location Analysis Methods
Factor rating methodLoad-distance modelCenter of gravity approachBreak-even analysisTransportation methodDimensional Analysis

Location Rating Factor
Identify important factorsSubjectively score each factor (0 - 100)Weight factors (0.00 - 1.00)Sum weighted scores
*

Location Factor Rating: Example

Labor pool and climate

Proximity to suppliers

Wage rates

Community environment

Proximity to customers

Shipping modes

Air service

LOCATION FACTOR

90

60

45

45

30

15

15

Normalized

Rating

SCORES (0 TO 100)

*




Wage rates



Shipping modes

Air service

LOCATION FACTOR

.30

.20

.15

.15

.10

.05

.05

Rating

90

60

45

45

30

15

15

Normalized

SCORES (0 TO 100)

*




Wage rates



Shipping modes

Air service

LOCATION FACTOR

80

100

60

75

65

85

50

Site 1

SCORES (0 TO 100)

*




Wage rates



Shipping modes

Air service

LOCATION FACTOR

80

100

60

75

65

85

50

Site 1

65

91

95

80

90

92

65

Site 2

SCORES (0 TO 100)

*




Wage rates



Shipping modes

Air service

LOCATION FACTOR

80

100

60

75

65

85

50

Site 1

65

91

95

80

90

92

65

Site 2

90

75

72

80

95

65

90

Site 3

SCORES (0 TO 100)

*




Wage rates



Shipping modes

Air service

LOCATION FACTOR

.30

.20

.15

.15

.10

.05

.05

WEIGHT

80

100

60

75

65

85

50

Site 1

65

91

95

80

90

92

65

Site 2

90

75

72

80

95

65

90

Site 3

SCORES (0 TO 100)

*

Location Factor Rating

Site 3 has the highest factor rating

24.00

20.00

9.00

11.25

6.50

4.25

2.50

77.50

Site 1

19.50

18.20

14.25

12.00

9.00

4.60

3.25

80.80

Site 2

27.00

15.00

10.80

12.00

9.50

3.25

4.50

82.05

Site 3

WEIGHTED SCORES

*

Example

An electronics manufacturer must expand by building a second facility. The search has been narrowed to four locations, all of which are acceptable to management in terms of dominant factors. Assessment of these sites in terms of seven location factors is shown below.

Example

Nearness to the port


Availability of skilled labor

Govt. Policies

Projected cost of operation

Shipping modes

Educational Infrastructure

LOCATION FACTOR

80

70

90

50

60

70

40

Score

75

60

50

70

70

80

60

Site 1

70

80

70

45

60

90

80

Site 2

90

85

85

60

80

70

80

Site 3

SCORES (0 TO 100)

*

*

Center of Gravity Method
The Center of Gravity Method is a tool that seeks to compute geographic coordinates for a potential single new facility that will minimize costs.The Center of Gravity Method takes many factors into account including:
Markets

Volume of goods shipped

Shipping costs

*

The Center of Gravity Method is basically used for finding the perfect location of a distribution center that will minimize distribution costs.

Locate facility at center of geographic areaBased on weight and distance traveled establish grid-map of areaIdentify coordinates and weights shipped for each location
Center-of-Gravity Technique

*

Grid-Map Coordinates

xi, yi =coordinates of existing facility i

Wi =annual weight shipped from facility i

x1

x2

x3

x

y2

y

y1

y3

1 (x1, y1), W1

2 (x2, y2), W2

3 (x3, y3), W3

*

Grid-Map Coordinates

where,

x, y =coordinates of new facility at center of gravity

xi, yi =coordinates of existing facility i

Wi =annual weight shipped from facility i

n

Wi

i = 1

xiWi

i = 1

n

x =

n

Wi

i = 1

yiWi

i = 1

n

y =

x1

x2

x3

x

y2

y

y1

y3

1 (x1, y1), W1

2 (x2, y2), W2

3 (x3, y3), W3

*

Example

ABCD

x200100250500

y200500600300

Wt7510513560

*

Center-of-Gravity Technique: Example

ABCD

x200100250500

y200500600300

Wt7510513560

y

700

500

600

400

300

200

100

0

x

700

500

600

400

300

200

100

A

B

C

D

(135)

(105)

(75)

(60)

Miles

Miles

*

Center-of-Gravity Technique: Example (cont.)

Wi

i = 1

n

xiWi

i = 1

n

x = = = 238

n

Wi

i = 1

yiWi

i = 1

n

y = = = 444

(200)(75) + (500)(105) + (600)(135) + (300)(60)

75 + 105 + 135 + 60

(200)(75) + (100)(105) + (250)(135) + (500)(60)

75 + 105 + 135 + 60

*

Center-of-Gravity Technique: Example (cont.)

ABCD

x200100250500

y200500600300

Wt7510513560

700

500

600

400

300

200

100

x

700

500

600

400

300

200

100

y

0

A

B

C

D

(135)

(105)

(75)

(60)

Miles

Miles

Center of gravity (238, 444)

*

Copyright 2006 John Wiley & Sons, Inc.

Supplement 7-*

Center of Gravity with Excel

Copyright 2006 John Wiley & Sons, Inc.

Example

Finding the Center of Gravity for Health Watch

2007 Pearson Education

Example
Existing FacilityAnnul loadCost of moving one unitCoordinate locationsW27910(20,30)X47310(70,10)Y35010(50,40)z26610(10,80)

Load Distance Method

Euclidean or rectilinear distance measure may be used.

Euclidean distance between points A and B is the length of the hypotenuse of a right triangle, or

where dAB = distance between points A and B

Xa = x-coordinate of point A

Ya = y-coordinate of point A

Xb = x-coordinate of point B

Yb = y-coordinate of point B

Rectilinear distance measures distance between two points with a series of 900 turns as city blocks. Essentially, this distance is the sum of the two dashed lines representing the base and side of the triangle in figure . The distance traveled in the x-direction is the absolute value of the difference in x-coordinates. Adding this result to the absolute value of the difference in the y-coordinates gives

Distance Measures

What is the distance between (20,10) and (80,60)?

Rectilinear Distance

dAB = |20 80| + |10 60| = 110

dAB = (20 80)2 + (10 60)2

= 78.1

Euclidian Distance

Load-Distance Technique
Compute (Load x Distance) for each siteChoose site with lowest (Load x Distance)Distance can be actual or straight-line
*

Load-Distance Calculations

or Ixi - xI + Iyi - yI

li di

i = 1

n

LD =

LD = load-distance value

li = load expressed as a weight, number of trips or units

being shipped from proposed site and location i

di = distance between proposed site and location i

di = (xi - x)2 + (yi - y)2

(x,y) = coordinates of proposed site

(xi , yi) = coordinates of existing facility

where,

where,

*

Load-Distance: Example

Potential Sites

SiteXY

1360180

2420450

3250400

Suppliers

ABCD

X200100250500

Y200500600300

Wt7510513560

Compute distance from each site to each supplier

= (200-360)2 + (200-180)2

dA = (xA - x1)2 + (yA - y1)2

Site 1

= 161.2

= (100-360)2 + (500-180)2

dB = (xB - x1)2 + (yB - y1)2

= 412.3

dC = 434.2

dD = 184.4

*

Load-Distance: Example (cont.)

Site 2

dA = 333

dC = 226.7

dB = 323.9

dD = 170

Site 3

dA = 206.2

dC = 200

dB = 180.4

dD = 269.3

i = 1

n

li di

LD =

Compute load-distance

Site 1 = (75)(161.2) + (105)(412.3) + (135)(434.2) + (60)(434.4) = 125,063

Site 2 = (75)(333) + (105)(323.9) + (135)(226.7) + (60)(170) = 99,791

Site 3 = (75)(206.2) + (105)(180.3) + (135)(200) + (60)(269.3) = 77,555*

* Choose site 3

*

Example

Example: Matrix Manufacturing is considering where to locate its warehouse in order to service its four Ohio stores located in Cleveland, Cincinnati, Columbus, Dayton. Two sites are being considered; Mansfield and Springfield, Ohio. Use the load-distance model to make the decision.

Break-Even Analysis
Break-even analysis can help a manager compare location alternatives on the basis of quantitative factors that can be expressed in terms of total cost.
Determine the variable costs and fixed costs for each site.

Plot the total cost linesthe sum of variable and fixed costsfor all the sites on a single graph

Identify the approximate ranges for which each location has the lowest cost.

Solve algebraically for the break-even points over the relevant ranges.

Break-Even Analysis
An operations manager has narrowed the search for a new facility location to four communities.The annual fixed costs (land, property taxes, insurance, equipment, and buildings) and the variable costs (labor, materials, transportation, and variable overhead) are shown below. Total costs are for 20,000 units.
Fixed CostsVariable CostsTotal Costs

Communityper Yearper Unit(Fixed + Variable)

A$150,000$62$1,390,000

B$300,000$38$1,060,000

C$500,000$24$ 980,000

D$600,000$30$1,200,000

Example

The operations manager for Mile-High Beer has narrowed the search for a new facility location to seven communities. Annual fixed costs (land, property taxes, insurance, equipment, and buildings) and variable costs (labor, materials, transportation, and variable overhead) are shown below.

Mile-High Beer

Example
Santro Electronics is considering 2 locations for the audio equipment factory Ahmedabad & Chennai. At Ahmedabad fixed cost is estimated at Rs.1 million and the variable cost at Rs.1,200 per audio equipment. At Chennai fixed cost is Rs. 1.2 million and variable cost is Rs. 1100 per audio equipment. The selling price of the equipment will be Rs. 3000 per unit irrespective of the location. Decide which location is the best.

The Transportation Method
The transportation method is a quantitative approach that can help solve multiple-facility location problems.The transportation method does not solve all facets of the multiple-facility location problem.It utilizes linear programming to minimize the cost of shipping products from two or more plants, or sources of supply, to two or more warehouses, or destinations.

The Transportation Method

The Sunbelt Pool Company has a plant in Phoenix and three warehouses. It is considering building a new 500-unit plant because business is booming. One possible location is Atlanta.

Initial Tableau

The cost to ship one unit from Atlanta to San Antonio.

Example

Dimensional Analysis
Considers both tangible and intangible costsIntangibles could include (lack of ) facilities e.g. for education, shopping, recreation, social life.Intangibles could be quantified on a scale.Weightages could be assigned to each cost.A pair of sites is compared by a ratio.

Formula for Dimensional Analysis
If C are costs, M & N are the two sites, and w are weightages, the relative demerit of site M to N is:
(C1M / C1N) X (C2M / C2N) X .. X (CzM / CzN)

where, CzM is the cost z for site M.
If the above is >1, site N is superior.
W1

W2

Wz

Example
. CostsSiteLbourPowerEducational Facilities for children's(Score)Recreational Facilities(Score)MRs.1.50.000Rs.40,00,00022NRs.1.00.000Rs.25,0000064Weightage 1122

FACILITY LAYOUT PROBLEM


Once a firm has decided where a facility will be located, the next important decision is the Arrangement of people and Equipment within the facility.


Facility Layout problem involves the location of departments (or sections) within the facility AND the arrangement of people and equipment within each department.

.


The layout decision will certainly affect the
Flow of materials In-plant Transportation cost Equipment utilization General productivity and effectiveness of the business.


Usually the layout is planned to minimize a particular criterion:
Minimizing total traveling time, total cost, total delays, etc.
There are also situations in which the layout may be designed to maximize a criterion:
Maximize quality, flexibility, or space utilization.

Costs associated with a plant layout
Costs of customer dissatisfaction due to poor service (delivery, responsiveness, quality, flexibility)Costs of movement of materialsCosts of spaceCosts of spoilage of materialsCosts of employee dissatisfactionCosts of changes required with operational changes

Basic Production Layout Formats
Process Layout (also called job-shop or functional layout)Product Layout (also called flow-shop layout)Group Technology (Cellular) LayoutFixed-Position Layout
4

Process Layout

Similar pieces of equipment that perform similar functions are grouped together. For example; all drill machines are grouped and placed together.

Process Layout
An example

L

L

L

L

M

M

M

M

D

D

D

D

D

D

G

G

G

L

L

L

L

Product A

Product C

Product B

Product Layout

The pieces of equipment required to make a Particular product are grouped together, as in an Automobile assembly line.

Product Layout

L

L

D

L

D

M

G

Product

A

Product

B

Product

C

Step 1

Step 1

Step 1

Step 2

Step 2

Step 2

Step 3

Step 3

Step 3

Step 4

Step 4

Step 4

7-14

G

L

D

M

L

G

Step 5

Fixed Layout

The equipment is brought to the object being processed, and the object does not move. Example; house construction.

Cellular Manufacturing (CM) Layouts
Cellular manufacturing is a type of layout in which machines are grouped into what is referred to as a cell. Groupings are determined by the operations needed to perform work for a set of similar items, or part families that require similar processing.

Process Layout Example
Frontec Company wants to arrange Four of its departments in a Row so that the Total Distance Traveled between Departments is minimized.This part of the building will contain four departments arranged in a row.Frontec wishes to minimize the total daily inter-departmental distance traveled.The number of daily communications between each pair of department is shown below:

Example

Assume that adjacent departments are 20 feet apart.

Example
We will use a trial-and-error approach to this problem.Assume that we selected the following configuration for the departments: A-B-C-D.For this configuration, Total communication cost (based on distance) is as follows:

Example

Example
In terms of total daily communication distance, (B-A-C-D) is the preferred alternative.But the firm has to consider all of the 24 (4! = 4x3x2x1) possible configurations before it knows if this is the optimal configuration.

Example
This trial-and-error approach becomes time-consuming as the number of departments increases AND It also becomes complex when the cost of communications vary between departments.

Computerized Relative Allocation of Facilities(CRAFT)
In CRAFT an initial feasible layout is formed and a series of improvement opportunities explored through a pir wise exchange of departments.If there are n departments a pair wise comparison involves n(n-1)/2 evaluations.

Systematic Layout Planning

Systematic Layout Planning (SLP) is an organized approach to facility Layout planning.

Qualitative Approach

Software packages ALDEP & CORELAP are available for qualitative design.
Value ClosenessAAbsolutely necessaryEEspecially Important IImportantOOKUUnimportantXUndesirable

Qualitative Approach

Software packages ALDEP & CORELAP are available for qualitative design.

Example
A small accounting Firm, GUNTA Accounting, has rented Space in a new one-floor building.The firm has allocated 6000 square meter to its seven departments as follows:

Example

Example
This Activity Relationship Diagram is essentially an Illustration of the Information Contained in the Activity Relationship Chart.All departments in this diagram are Represented by equal size boxes.The next step is to anticipate the space required for each Department.

Example
Since the space assignments are given before, the following Activity Relationship Diagram shows the relative Sizes of Each Department:

Example

Example
In this stage, there are no restrictions on the length and width of each departmentIn the final step, we should develop and evaluate several alternative layouts, while keeping in mind the Practical Limitations.

Example
Some examples of Practical Limitations in this case were as follows:1- It is considered that offices for partners (2), the meeting room (7) and the reception area (1) should be close to each other.2- It is important that the juniors (4) and the managers (3) be close together.

Product Layout

LINE BALANCING
Essentially ,the layout design seeks to identify minimum number of resources required to meet a targeted production rate and the order in which this sequences are to be used. In the process it seeks to establish a balance among the resources so that the production isLine Balancing is a method by which tasks are optimally combined without violating the precedence constraint and a certain number of workstation is designed to complete the task.

Assembly Lines Balancing Concepts

Question: Suppose you load work into the three work stations below such that each will take the corresponding number of minutes as shown. What is the cycle time of this line? Determine the interval between producton of two successive components?

Answer: One component will come out of the system only every 7 minutes. This measure is known as cycle time.

Station 1

Minutes per Unit

6

Station 2

7

Station 3

3

*

15

Designing Product Layouts
Step 1: Identify tasks & immediate predecessorsStep 2: Determine the desired output rateStep 3: Calculate the cycle timeStep 4: Compute the theoretical minimum number
of workstations
Step 5: Assign tasks to workstations (balance the
line)
Step 6: Compute efficiency, idle time & balance
delay

Assembly Line Balancing

Precedence diagram:

Circles=tasks

Arrows = required sequence.


Determine cycle time: Cycle time could be actual or desires

Determine required workstations (theoretical minimum)


Evaluate line efficiency:

Balance delay (%) is the amount by which the line falls short of 100%

Example
A factory working two shifts each of eight hour produces 24000 electric bulbs using a set of workstations. Compute the actual cycle time of the plant operation. There are 8 tasks required to manufacture the bulbs. The sum of all task time is equal to 12 seconds. How many workstations are required to maintain the level of production.

Example of Line Balancing
Youve just been assigned the job a setting up an electric fan assembly line with the following tasks:
*

Example of Line Balancing:
Structuring the Precedence Diagram

A

B

G

H

C

D

E

F

Task Predecessors

ANone

BA

CNone

DA, C

Task Predecessors

ED

FE

GB

HF, G

*

17

Example of Line Balancing: Precedence Diagram

Question: Which process step defines the maximum rate of production?

Answer: Task C is the cycle time of the line and therefore, the maximum rate of production.

A

C

B

D

E

F

G

H

2

3.25

1

1.2

.5

1

1.4

1

*

17

Example of Line Balancing: The Bottleneck

*

18

Example of Line Balancing: Determine Cycle Time

Question: Suppose we want to assemble 100 fans per day. What would our cycle time have to be?

Answer:

*

19

Example of Line Balancing: Determine Theoretical Minimum Number of Workstations

Question: What is the theoretical minimum number of workstations for this problem?

Answer:

*

19

A

C

B

D

E

F

G

H

2

3.25

1

1.2

.5

1

1.4

1

Station 1

Station 2

Task

Followers

Time (Mins)

A

6

2

C

4

3.25

D

3

1.2

B

2

1

E

2

0.5

F

1

1

G

1

1

H

0

1.4

Station 3

*

23

A

C

B

D

E

F

G

H

2

3.25

1

1.2

.5

1

1.4

1

Station 1

Station 2

Task

Followers

Time (Mins)

A

6

2

C

4

3.25

D

3

1.2

B

2

1

E

2

0.5

F

1

1

G

1

1

H

0

1.4

Station 3

A (4.2-2=2.2)

*

24

A

C

B

D

E

F

G

H

2

3.25

1

1.2

.5

1

1.4

1

Task

Followers

Time (Mins)

A

6

2

C

4

3.25

D

3

1.2

B

2

1

E

2

0.5

F

1

1

G

1

1

H

0

1.4

Station 1

Station 2

A (4.2-2=2.2)

B (2.2-1=1.2)

G (1.2-1= .2)

Idle= .2

Station 3

*

26

A

C

B

D

E

F

G

H

2

3.25

1

1.2

.5

1

1.4

1

Task

Followers

Time (Mins)

A

6

2

C

4

3.25

D

3

1.2

B

2

1

E

2

0.5

F

1

1

G

1

1

H

0

1.4

Station 1

Station 2

C (4.2-3.25)=.95

A (4.2-2=2.2)

B (2.2-1=1.2)

G (1.2-1= .2)

Idle= .2

Station 3

*

27

A

C

B

D

E

F

G

H

2

3.25

1

1.2

.5

1

1.4

1

Task

Followers

Time (Mins)

A

6

2

C

4

3.25

D

3

1.2

B

2

1

E

2

0.5

F

1

1

G

1

1

H

0

1.4

Station 1

Station 2

C (4.2-3.25)=.95

Idle = .95

A (4.2-2=2.2)

B (2.2-1=1.2)

G (1.2-1= .2)

Idle= .2

Station 3

*

28

A

C

B

D

E

F

G

H

2

3.25

1

1.2

.5

1

1.4

1

Task

Followers

Time (Mins)

A

6

2

C

4

3.25

D

3

1.2

B

2

1

E

2

0.5

F

1

1

G

1

1

H

0

1.4

Station 1

Station 2

C (4.2-3.25)=.95

Idle = .95

D (4.2-1.2)=3

E (3-.5)=2.5

A (4.2-2=2.2)

B (2.2-1=1.2)

G (1.2-1= .2)

Idle= .2

Station 3

*

30

A

C

B

D

E

F

G

H

2

3.25

1

1.2

.5

1

1.4

1

Task

Followers

Time (Mins)

A

6

2

C

4

3.25

D

3

1.2

B

2

1

E

2

0.5

F

1

1

G

1

1

H

0

1.4

Station 1

Station 2

C (4.2-3.25)=.95

Idle = .95

D (4.2-1.2)=3

E (3-.5)=2.5

F (2.5-1)=1.5

A (4.2-2=2.2)

B (2.2-1=1.2)

G (1.2-1= .2)

Idle= .2

Station 3

*

31

A

C

B

D

E

F

G

H

2

3.25

1

1.2

.5

1

1.4

1

Task

Followers

Time (Mins)

A

6

2

C

4

3.25

D

3

1.2

B

2

1

E

2

0.5

F

1

1

G

1

1

H

0

1.4

Station 1

Station 2

C (4.2-3.25)=.95

Idle = .95

D (4.2-1.2)=3

E (3-.5)=2.5

F (2.5-1)=1.5

H (1.5-1.4)=.1

Idle = .1

A (4.2-2=2.2)

B (2.2-1=1.2)

G (1.2-1= .2)

Idle= .2

Station 3

*

32

A

C

B

D

E

F

G

H

2

3.25

1

1.2

.5

1

1.4

1

Task

Followers

Time (Mins)

A

6

2

C

4

3.25

D

3

1.2

B

2

1

E

2

0.5

F

1

1

G

1

1

H

0

1.4

Station 1

Station 2

C (4.2-3.25)=.95

Idle = .95

Efficiency=77%

D (4.2-1.2)=3

E (3-.5)=2.5

F (2.5-1)=1.5

H (1.5-1.4)=.1

Idle = .1

Efficiency=98%

A (4.2-2=2.2)

B (2.2-1=1.2)

G (1.2-1= .2)

Idle= .2

Efficiency=95%

Station 3

*

32

Example of Line Balancing: Determine the Efficiency of the Assembly Line

*

33

Step 1: Identify Tasks & Immediate Predecessors

Layout Calculations
Step 2: Determine output rateVicki needs to produce 60 pizzas per hour Step 3: Determine cycle timeThe amount of time each workstation is allowed to complete its tasksLimited by the bottleneck task (the longest task in a process):

Layout Calculations (continued)
Step 4: Compute the theoretical minimum number of stationsTM = number of stations needed to achieve 100% efficiency (every second is used)Always round up (no partial workstations)Serves as a lower bound for our analysis

Last Layout Calculation
Step 6: Compute efficiency and balance delayEfficiency (%) is the ratio of total productive time divided by total timeBalance delay (%) is the amount by which the line falls short of 100%

Problem
Draw precedence diagramDetermine cycle timedemand = 50 units/hrTheoretical minimum no. of work stationsAssign tasks to workstations using cycle timeEfficiency and balance delay of line?Bottleneck?Maximum output?TaskImm. predecessorTask time (sec)ANone55BA30CA22DB35EB, C50FC15GF5HG10TOTAL222

Group Technology:
Transition from Process Layout

1. Grouping parts into families that follow a common sequence of steps

2. Identifying dominant flow patterns of parts families as a basis for location or relocation of processes

3. Physically grouping machines and processes into cells

Product Layout
An example

L

D

L

M

D

G

M

L

D

L

M

D

G

L

L

M

D

L

L

D

G

Machine Component Incident Matrix(MCIM)
Before Grouping

Machines

Components
Sheet1VarietyVery low varietyMedium VarietyHigh VarietyOne off executionFlow attributesStream lined flowMultiple flow pathsDis-organised flowJumbled flowVolume attributesHigh VolumeMid-volumeLow volumeOne pieceExamples of operating systemsProcess industry; Mass Product/ Service providerBatch Manufacturing firmsJob shops; Customised Product/ Service ProviderProject ShopsTypes of layout usedLine Layout; Product LayoutGroup Technology LayoutProcess LayoutFixed Position LayoutProcess LayoutProduct LayoutAdvantagesSharing of specialised and costly equipmentsStandardised product/ process routingMore flexibilityOperational Control is simplerLess vulnerable to breakdownsHigh output rate is possibleDisadvantagesLarge Inventory buildupLow tolerance for breakdownsOperational control difficultDuplication of equipments leading to high costExcess Material HandlingLess flexibility due to dedication of resourcesPerformance MeasureBasis for measurementDistance travelled by jobs in the shopfloorKg - Metres of job movement for each productSpace utilisation indexMinimum space required to actual space utilisedMaterial Handling costsRupees per monthLead time of the processesHours per average productInvestment in work-in-progressRupees per monthInter-departmental movesNumber and quantum of inter-departmental movesUtilisation of the resourcesPercent to total capacityEase of production controlNumber of job cards and control documents generated; Size of the progress chasing staffNumber of ownership changesNumber of times the responsibility for the job changes handsSheet21234567891011121314151617181920A111B1111C1111D111E111111F111G111111H111111I111111J1111112358101472018171514136911121619B11111C11111D111A111F111E111111I111111G111111H111111J111111Sheet3

Machine Component Incident Matrix
After Grouping

Machines

Components
Sheet1VarietyVery low varietyMedium VarietyHigh VarietyOne off executionFlow attributesStream lined flowMultiple flow pathsDis-organised flowJumbled flowVolume attributesHigh VolumeMid-volumeLow volumeOne pieceExamples of operating systemsProcess industry; Mass Product/ Service providerBatch Manufacturing firmsJob shops; Customised Product/ Service ProviderProject ShopsTypes of layout usedLine Layout; Product LayoutGroup Technology LayoutProcess LayoutFixed Position LayoutProcess LayoutProduct LayoutAdvantagesSharing of specialised and costly equipmentsStandardised product/ process routingMore flexibilityOperational Control is simplerLess vulnerable to breakdownsHigh output rate is possibleDisadvantagesLarge Inventory buildupLow tolerance for breakdownsOperational control difficultDuplication of equipments leading to high costExcess Material HandlingLess flexibility due to dedication of resourcesPerformance MeasureBasis for measurementDistance travelled by jobs in the shopfloorKg - Metres of job movement for each productSpace utilisation indexMinimum space required to actual space utilisedMaterial Handling costsRupees per monthLead time of the processesHours per average productInvestment in work-in-progressRupees per monthInter-departmental movesNumber and quantum of inter-departmental movesUtilisation of the resourcesPercent to total capacityEase of production controlNumber of job cards and control documents generated; Size of the progress chasing staffNumber of ownership changesNumber of times the responsibility for the job changes handsSheet21234567891011121314151617181920A111B1111C1111D111E111111F111G111111H111111I111111J1111112358101472018171514136911121619B11111C11111D111A111F111E111111I111111G111111H111111J111111Sheet3

Rank Order Clustering(ROC)

Machines

Components
Sheet1VarietyVery low varietyMedium VarietyHigh VarietyOne off executionFlow attributesStream lined flowMultiple flow pathsDis-organised flowJumbled flowVolume attributesHigh VolumeMid-volumeLow volumeOne pieceExamples of operating systemsProcess industry; Mass Product/ Service providerBatch Manufacturing firmsJob shops; Customised Product/ Service ProviderProject ShopsTypes of layout usedLine Layout; Product LayoutGroup Technology LayoutProcess LayoutFixed Position LayoutProcess LayoutProduct LayoutAdvantagesSharing of specialised and costly equipmentsStandardised product/ process routingMore flexibilityOperational Control is simplerLess vulnerable to breakdownsHigh output rate is possibleDisadvantagesLarge Inventory buildupLow tolerance for breakdownsOperational control difficultDuplication of equipments leading to high costExcess Material HandlingLess flexibility due to dedication of resourcesPerformance MeasureBasis for measurementDistance travelled by jobs in the shopfloorKg - Metres of job movement for each productSpace utilisation indexMinimum space required to actual space utilisedMaterial Handling costsRupees per monthLead time of the processesHours per average productInvestment in work-in-progressRupees per monthInter-departmental movesNumber and quantum of inter-departmental movesUtilisation of the resourcesPercent to total capacityEase of production controlNumber of job cards and control documents generated; Size of the progress chasing staffNumber of ownership changesNumber of times the responsibility for the job changes handsSheet2123456A001010B011001C100100D011010E1001012358101472018171514136911121619B11111C11111D111A111F111E111111I111111G111111H111111J111111Sheet3

Read each row of the MCIM as binary number. Rank the rows in descending order.If there is no change stop. Otherwise go to next step.Rearrange the rows based on ranking.Read each column of the MCIM as binary number. Rank the rows in descending order.If there is no change stop. Otherwise go to next step.Rearrange the rows based on ranking. Go to step 1.


Rows as binary numbers
Value of the binary numberRankROW1105ROW2254ROW3362ROW4263ROW5371


Machines

Components
Sheet1VarietyVery low varietyMedium VarietyHigh VarietyOne off executionFlow attributesStream lined flowMultiple flow pathsDis-organised flowJumbled flowVolume attributesHigh VolumeMid-volumeLow volumeOne pieceExamples of operating systemsProcess industry; Mass Product/ Service providerBatch Manufacturing firmsJob shops; Customised Product/ Service ProviderProject ShopsTypes of layout usedLine Layout; Product LayoutGroup Technology LayoutProcess LayoutFixed Position LayoutProcess LayoutProduct LayoutAdvantagesSharing of specialised and costly equipmentsStandardised product/ process routingMore flexibilityOperational Control is simplerLess vulnerable to breakdownsHigh output rate is possibleDisadvantagesLarge Inventory buildupLow tolerance for breakdownsOperational control difficultDuplication of equipments leading to high costExcess Material HandlingLess flexibility due to dedication of resourcesPerformance MeasureBasis for measurementDistance travelled by jobs in the shopfloorKg - Metres of job movement for each productSpace utilisation indexMinimum space required to actual space utilisedMaterial Handling costsRupees per monthLead time of the processesHours per average productInvestment in work-in-progressRupees per monthInter-departmental movesNumber and quantum of inter-departmental movesUtilisation of the resourcesPercent to total capacityEase of production controlNumber of job cards and control documents generated; Size of the progress chasing staffNumber of ownership changesNumber of times the responsibility for the job changes handsSheet2123456E100101C100100D011010B011001A0010102358101472018171514136911121619B11111C11111D111A111F111E111111I111111G111111H111111J111111Sheet3


Columns as binary numbers
Value of the binary numberRankColumn1241Column2125Column3134Column4241Column556Column6183


Machines

Components
Sheet1VarietyVery low varietyMedium VarietyHigh VarietyOne off executionFlow attributesStream lined flowMultiple flow pathsDis-organised flowJumbled flowVolume attributesHigh VolumeMid-volumeLow volumeOne pieceExamples of operating systemsProcess industry; Mass Product/ Service providerBatch Manufacturing firmsJob shops; Customised Product/ Service ProviderProject ShopsTypes of layout usedLine Layout; Product LayoutGroup Technology LayoutProcess LayoutFixed Position LayoutProcess LayoutProduct LayoutAdvantagesSharing of specialised and costly equipmentsStandardised product/ process routingMore flexibilityOperational Control is simplerLess vulnerable to breakdownsHigh output rate is possibleDisadvantagesLarge Inventory buildupLow tolerance for breakdownsOperational control difficultDuplication of equipments leading to high costExcess Material HandlingLess flexibility due to dedication of resourcesPerformance MeasureBasis for measurementDistance travelled by jobs in the shopfloorKg - Metres of job movement for each productSpace utilisation indexMinimum space required to actual space utilisedMaterial Handling costsRupees per monthLead time of the processesHours per average productInvestment in work-in-progressRupees per monthInter-departmental movesNumber and quantum of inter-departmental movesUtilisation of the resourcesPercent to total capacityEase of production controlNumber of job cards and control documents generated; Size of the progress chasing staffNumber of ownership changesNumber of times the responsibility for the job changes handsSheet2146325E111000C110000D000111B001110A0001012815310472018171514136911121619B11111C11111D111A111F111E111111I111111G111111H111111J111111Sheet3

Example)

Machines

Components

1.Use ROC to rank families and machine groups

2.What will happen if we did column sorting first and then row?
12345678910A11111B111C11111D111E111F11G111
(

)

(

)

(

)

[

]

(

)

0

.

8

30

15

20

4

30

12

15

11

20

=

+

+

+

+

=

=

*

i

i

i

i

i

l

x

l

x

(

)

(

)

(

)

[

]

(

)

5

.

5

30

15

20

5

.

1

30

5

.

9

15

5

.

8

20

=

+

+

+

+

=

=

*

i

i

i

i

i

l

y

l

y

Census Tract Population Latitude Longitude

15 2,711 42.134 -80.041

16 4,161 42.129 -80.023

17 2,988 42.122 -80.055

25 2,512 42.112 -80.066

26 4,342 42.117 -80.052

27 6,687 42.116 -80.023

28 6,789 42.107 -80.051

Total 30,190

cycle_time

task_times

N

=

t

=

units/hr

output

tual

desired/ac

sec./day

time

available

)

(sec./unit

time

Cycle

kstations

actual_wor

N

;

C

N

T

E

-

=

a

a

task time

bottleneck

time

available

output

Maximum

=

Max Produc

tion

=

Production

time per

day

Bottleneck

time

=

420 mins

3.25 mins

/

unit

=

129 units

Required C

ycle Time,

C

=

Production

time per

period

Required

output per

period

C

=

420 mins

/

day

100 units

/

day

=

4.2 mins

/

unit

Theoretica

l Min.

Number of

Workstati

ons,

N

N

=

Sum of tas

k times (T

)

Cycle time

(C)

t

t

N

=

11.35 mins

/

unit

4.2 mins

/

unit

=

2.702,

or 3

t

Efficiency

=

Sum of tas

k times (T

)

Actual num

ber of wor

kstations

(Na) x Cyc

le time (C

)

Efficiency

=

11.35 mins

/

unit

(3)(4.2min

s

/

unit)

=.

901

(

)

(

)

sec./unit

60

units/hr

60

sec/min

60

x

min/hr

60

units/hr

output

desired

sec./day

time

available

)

(sec./unit

time

Cycle

=

=

=

hour

per

pizzas

or

units/hr,

72

sec./unit

50

sec./hr.

3600

time

task

bottleneck

time

available

output

Maximum

=

=

=

(

)

stations

3

or

2.75,

n

sec/statio

60

seconds

165

time

cycle

times

task

TM

=

=

=

(

)

91.7%

100

sec.

60

x

stations

3

sec.

165

NC

t

(%)

Efficiency

=

=

=

8.3%

91.7%

100%

delay

Balance

=

-

=

1234567891011121314151617181920

A111

B1111

C1111

D111

E111111

F111

G111111

H111111

I111111

J111111

2358101472018171514136911121619

B11111

C11111

D111

A111

F111

E111111

I111111

G111111

H111111

J111111

123456

A001010

B011001

C100100

D011010

E100101

123456

E100101

C100100

D011010

B011001

A001010

14632

E11100

C11000

D00011

B00111

A00010

Task

Time (Mins)

Description

Predecessors

A

2

Assemble frame

None

B

1

Mount switch

A

C

3.25

Assemble motor housing

None

D

1.2

Mount motor housing in frame

A, C

E

0.5

Attach blade

D

F

1

Assemble and attach safety grill

E

G

1

Attach cord

B

H

1.4

Test

F, G

Task

Time (Mins)

Description

Predecessors

A

2

Assemble frame

None

B

1

Mount switch

A

C

3.25

Assemble motor housing

None

D

1.2

Mount motor housing in frame

A, C

E

0.5

Attach blade

D

F

1

Assemble and attach safety grill

E

G

1

Attach cord

B

H

1.4

Test

E, G

Example 10.4 Vicki's Pizzeria and the Precedence Diagram

ImmediateTask Time

Work ElementTask DescriptionPredecessor(seconds

ARoll doughNone50

BPlace on cardboard backingA5

CSprinkle cheeseB25

DSpread SauceC15

EAdd pepperoniD12

FAdd sausageD10

GAdd mushroomsD15

HShrinkwrap pizzaE,F,G18

IPack in boxH15

Total task time

165

facility planning

Documents

process choicesvolume

process selectionfactors

process reengineering

total process

process reengineering

project process job

variety of products

bhel high volume