product & process layout.ppt

8/19/2019 product & process layout.ppt

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2-508-97 Production and Operations Management

Facility Layout, Capacity


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Facility Layout

Minimize material-handling costs

Utilize space efficiently

Utilize laor efficiently

!liminate ottlenec"s

#acilitate communication andinteraction

$educe manufacturing cycle time $educe customer ser%ice time

!liminate &asted or redundantmo%ement

'ncrease capacity

#acilitate entry( e)it( and placementof material( products( and people

'ncorporate safety and securitymeasures

Promote product and ser%ice *uality

!ncourage proper maintenanceacti%ities

Pro%ide a %isual control of acti%ities

Pro%ide fle)iility to adapt tochanging conditions

Arrangement of areas within a facility to:


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!asic Layouts

Product layouts

arrange acti%ities in line according to se*uence ofoperations for a particular product or ser%ice

Process layoutsgroup similar acti%ities together according to process

or function they perform

#i)ed-position layouts

are used for pro+ects in &hich product cannot emo%ed


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"2-508-97 Production and Operations Management

Product Layout

,ource .dapt/ de ,te%enson 1( enedetti 31( 42006( p

208

rays 3ashier esserts ,alads

Main

3ourse egetale rin"s


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Manu#acturing Process Layout

L

L

L

L

L

L

L

L

L

LM

M

M

M

D

D

D

D

D

D

D

D

G

G

G

G

G

G

A A AReceiving and

Shipping Assembly

Painting Department

Lathe Department Milling Department Drilling Department

Grinding Department

P

P


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$2-508-97 Production and Operations Management

Process Layout in %er&ices

Women’slingerie

Women’sdresses

Women’ssportswear

Shoes

Cosmeticsand ewelry

!ntry anddisplay area

"o#sewares

Children’sdepartment

Men’sdepartment


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'mergency (oom Layout

S u r g e r y

R a d i o l o g y

E.R. beds Pharmacy Billing/exit

E.R.Triage

roomE.R. Admissions

Patient ! - erratic

pacema)er

Patient * -

+ro)en leg

Hallway

: 200; y Prentice


8/37 82-508-97 Production and Operations Management

Comparison o# Product and Process Layouts

Description

Type of process

Product

Demand Volume Equipment

Description

Type of process

Product

Demand Volume Equipment

Sequentialarrangement of

activities Continuous, massproduction, mainlyassembly

Standardized, made

to stock Stable High Special purpose

Process

Functionalgrouping of

activities Intermittent, jobshop, batchproduction, mainlyfabrication

Varied, made to

order Fluctuating Low General purpose

Product



Comparison o# Product and Process Layouts

Workers Inventory

Storage space Material handling Aisles Scheduling Layout decision

Goal

Advantage

Workers

Inventory

Storage space

Material handling Aisles Scheduling

Layout decision

Goal

Advantage

Limited skills

Low in-process, highfinished goods

Small

Fixed path (conveyor) Narrow Part of balancing /Line

Line balancing

Equalize work at eachstation

Efficiency

Process

Varied skills

High in-process, lowfinished goods

Large

Variable path (forklift) Wide Dynamic / Orders

Machine location

Minimize materialhandling cost

Flexibility

Product



Fied-Position Layouts

ypical of pro+ects

!*uipment( &or"ers( materials( other resources roughtto the site



Cellular Layouts

'dentify families of parts &ith similar flo& paths

?roup machines into cells ased on part families

.rrange cells so material mo%ement is minimized

@ocate large shared machines at point of use

Manufacturing cell: « Layout in which machines arearranged in a cell that can process items that have similar

processing requirements ».

Operations Management, 3rd Canadian Edition, page 206



Original Process Layout

CA $ Raw materials

Assembly

%

&

'

(

)

* +

,

-

%.

%%

%&



(e&ised Cellular Layout

'

*

-

Assembly

%&

(

, %.

)

+

%%

%&

A $ C

Raw materials

Cell % Cell & Cell '


14/37 "2-508-97 Production and Operations Management

/ey0/ey0

SS 1 Saw1 Saw

LL 1 Lathe1 Lathe

"M"M 1 "ori2ontal milling1 "ori2ontal milling

machinemachine

3M3M 1 3ertical milling machine1 3ertical milling machine

GG 1 Grinder 1 Grinder

Paths o4 threePaths o4 threewor5ers movingwor5ers movingwithin cellwithin cell

MaterialMaterial

movementmovement

6n6n 7#t7#t

Wor5er %Wor5er %

Wor5er &Wor5er &

Wor5er 'Wor5er '

Direction o4 part movement within cellDirection o4 part movement within cell

S

L

"M

3M

G

3M

L

8inalinspection

8inishedpart

A Manufacturing Cellwith Worker PathsSource: J.T. Black, “Cellular Manufacturing

Systems Reduce Setup Time, Make Small Lot

Production conomical.! Industrial

Engineering "#o$em%er &'()*.



*d&antages and .isad&antages

o# Cellular Layouts

Advantages

$educed materialhandling and transittime

$educed setup time

$educed &or"-in-process in%entory

etter use of humanresources

!asier to control

!asier to automate

Disadvantages

!)panded training andscheduling of &or"ers

'ncreased capitalin%estment


16/37 $2-508-97 Production and Operations Management

l o &

3 o l # m e

< ' ? <

< ' ? <

3 a r i e t y

l o &

Proect

MassRepetitive

9ob Shop

$atch

Contin#o#s

Product Process Layout

8i:ed Process Cell#lar Prod#ct

: 200A Michel 3loutier



(etail Layouts - %ome (ules o# /um+

@ocate high-dra& items around the periphery of the store

Use prominent locations such as the first or last aisle forhigh-impulse and high margin items

$emo%e crosso%er aisles that allo& customers theopportunity to mo%e et&een aisles

istriute &hat are "no&n in the trade as Bpo&er itemsC4items that may dominate a shopping trip6 to oth sides of

an aisle( and disperse them to increase the %ie&ing ofother items

Use end aisle locations ecause they ha%e a %ery highe)posure rate



%tore Layout - 1it .airy, !read, ig .ra1er

3tems in Corners



(etail %tore %el# %pace Planogram

& 4t& 4t;;

)) 4acings4acings

3 7

P ! R >

3 7



Managing

Capacity

Human Resources

#um%er + learning

Resources

Material and macinery

-uality and uantity

rocesses

he asic *uestions hat "ind of capacity is neededF



.ctual Output=tili2ation esign 3apacity=!44iciency

.ctual Output

!ffecti%e 3apacity=

esign3apacity

!ffecti%e3apacity

.ctualOutput

>hree distinct meas#res0

>wo ratios #sed0

?ap G Planned and controlled4e) meals( set-ups6

?ap G Unplanned anduncontrolled4e) rea"s( stoc"-outs6

(elated Per#ormance Measures



Measuring Capacity - 'amples

$#siness 6np#ts 7#tp#ts .utomoile industry Man-hours =umer of cars per &or"ing

Machine-hours shift

,teel Mill ,ize of o%ens onnes of steel per day

Oil refinery ,ize of the refinery arrels of fuel

Per day

#arming =umer of acresushels of grain per acre( peryear(

=umer of animals @itres of mil" per day

$estaurant =umer of tales =umer of meals ser%ed

,eating capacity Per day

heatre =umer of seats =umer of tic"ets sold

Per sho&

$etail sales ,*uare metres of floor space $e%enue generated

Per day



.eterminants o# '##ecti&e Capacity

1 #acilities

21 Products or ser%ices 4product mi)6

H1 Processes 4learning cur%es6

;1


24/37 2"2-508-97 Production and Operations Management

7perations 0 $alanced Process7perations 0 $alanced Process Prolems are caused &hen there is a gap et&een the

capacity of machines or the comple)ity of tas"s1

. system is alanced &hen the output of each step supplies

the e)act %olume of input re*uired y the follo&ing step1Other&ise( there &ill appear a bottlenec51

he capacity of the ottlenec" determines the capacity of theentire system1

Mold

0 min1

3ut

0 min1

Paint

20 min1

.ssemle

5 min1

Where is the bottlenec5 in the 4ollowing e:ample?

HIhr AIhr AIhr HIhr

.eterminants o# '##ecti&e Capacity

. t i i C it ( i t



Long


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.etermining Capacity (e4uirements 6en

When? 0>hree options

@ead strategy 3apacity israised efore it ecomesnecessary O%er-capacity

.%erage strategy 3apacityis added &hen re*uired1

@ag strategy 3apacity isadded after it has ecomenecessary1 Under-capacity


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Jou can increase the e)isting capacity y changing thethe &ay you manage your capacity1

Use o%ertime

Use more shifts or more personnel

'mpro%e the ottlenec"

,ucontract

.etermining Capacity (e4uirements o1


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.e&eloping Capacity *lternati&es

1 esign fle)iility into systems

21 ifferentiate et&een ne& and mature products orser%ices

H1 a"e a Big pictureC approach to capacity changes

;1 Prepare to deal &ith capacity Bchun"sC51 .ttempt to smooth out capacity re*uirements

A1 Use capacity cushion

71 'dentify the optimal operating le%el


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%ome strategies to manage te demand le&el

o# ser&ices

Price$educed price during the lo& demand periods to mo%e the

demand from the pea" periods1

$eser%ations I .ppointment ,ystems

.pplicale &hen the customer attaches a rather large importanceto the ser%ice and that the alternati%es are limited1

.llo&s to put the demand Kon standyK and to stailize it1

Offer to the customer a certain guarantee to recei%e the ser%ice atthe desired time1

he prolems of Bno sho&C customers are sometimes mitigatedy the o%eroo"ing1

aiting lines


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!rea) '&en *nalysis

( )

vr

FC Q

vQ FC r QC ! "

r Q!

vQ#C

#C FC C

$E" −

=

×+−×=−=

×=

×=

+=

profit

ee$en $olum %reak

outputof $olume

unit perre$enue

unit percost$aria%le

Re$enueTotal

Cost/aria%leTotal

Cost0i1edTotal

CostTotal

=

=

=

=

=

=

=

=

=

"

Q

Q

r

v

!

#C

FC

C

$E"

=oteUnit 3ost G 3 I LProfit margin G 4P I 36


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!rea) '&en Cart

$E" 2

$E" Q

#i)ed cost

ariale cost

otal cost line

otal re%enue line

Pro4itrea"e%en pointotal cost G otal re%enue

3ol#me #nitsperiodB

C o s t i n D o

l l a r s

Loss


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!rea)-'&en Pro+lem 1it %tep Fied Costs

#antity

8 C E 3 C

1 > C

8 C E 3 C

1 > C

8 C E 3

C 1

> C

Step 4i:ed costs and variable costs;

% machine

& machines

' machines

F


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One product is in%ol%ed

!%erything produced can e sold

ariale cost per unit is the same regardless of

%olume#i)ed costs do not change &ith %olume

$e%enue per unit constant &ith %olume

$e%enue per unit e)ceeds %ariale cost per unit

*ssumptions o# !rea) '&en *nalysis


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"2-508-97 Production and Operations Management

'ample

. manager &ants to add a ne& production line1 hefi)ed costs are A000 per month1 he cost of ra&material( laor( and energy to produce one unit areestimated at 21 he product sells for 7 per unit1

Luestions1 etermine the profit rea"-e%en point1

21 etermine the 4monthly6 profit 4or loss6 if you sell 000 unitsper month1

H1


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'ample

,olution

6rea"e%en P G 0 G r L - % L - #3

r L G % L #3

7(00 Iu L G 2(00 Iu L A 000

47(00Iu - 2(00 Iu6 L G A 000

L G A 000 I 47(00Iu - 2(00 Iu6 G 200 units

26#or 000 units( &e ha%e the follo&ing re%enu

$ G r L G 7(00 Iu 000 uG 7 000 and the follo&ing costs

3 G % L #3 G 2(00 Iu 000 u A 000 G 8 000


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$2-508-97 Production and Operations Management

'ample

,olution

H6#or a profit le%el of ; 000

$ - 3 G ; 000

$ G 3 ; 000 G 4% L 3#6 ; 000

G 42(00 Iu L A 000 6 ; 000 r L G 42(00 Iu L A 000 6 ; 000

7(00 Iu L G 2(00 Iu L 0 000

5(00 Iu L G 0 000

L G 2 000 units

Profit Margin G Profit I 3

G ; 000 I 42(00 2 000 A 0006 G ;0 N


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'ample

,olution

;6 #or 000 units( &e ha%e the follo&ing total cost

3 G 3 #3

G 2(00 Iu 000 u A 000 G 8 000

e ha%e a profit margin of 25NQ hence

Profit G 25N R 8 000 G 2 000

Profit G L R r S 3

2 000 G 000 R r - 8 000

r G 0 Iu

product & process layout.ppt

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