Facilities

1. Facilities

2. Objectives of Facility Layout • Minimize material handling costs • Utilize space efficiently • Utilize labor efficiently • Eliminate bottlenecks • Facilitate communication and interaction between workers, between workers and their supervisors, or between workers and customers • Reduce manufacturing cycle time or customer service time

3. Objectives of Facility Layout • Eliminate waste or redundant movement • Facilitate the entry, exit, and placement of material, products, or people • Incorporate safety and security measures • Promote product and service quality • Encourage proper maintenance activities • Provide a visual control of operations or activities • Provide flexibility to adapt to changing conditions • Increase capacity

4. Basic Types of Layouts • Process Layout • Machines grouped by process they perform • Product Layout • Linear arrangement of workstations to produce a specific product • Fixed Position Layout • Used in projects where the product cannot be moved

5. Milling Department Lathe Department Drilling Department M M D D D D L L M M D D D D L L G G G P L L G G G P L L Painting Department Grinding Department L L A A A Receiving and Shipping Assembly Manufacturing Process Layout

6. Milling Department Lathe Department Drilling Department M M D D D D L L M M D D D D L L G G G P L L G G G P L L Painting Department Grinding Department L L A A A Receiving and Shipping Assembly Manufacturing Process Layout

7. Milling Department Lathe Department Drilling Department M M D D D D L L M M D D D D L L G G G P L L G G G P L L Painting Department Grinding Department L L A A A Receiving and Shipping Assembly Manufacturing Process Layout

8. In Out A Product Layout

9. PRODUCT LAYOUT PROCESS LAYOUT Comparison Of Product And Process Layouts 1. Description Sequential arrangement Functional grouping of machines of machines 2. Type of Process Continuous, mass Intermittent, job shop production, mainly batch production, assembly mainly fabrication 3. Product Standardized Varied, made to stock made to order 4. Demand Stable Fluctuating 5. Volume High Low 6. Equipment Special purpose General purpose 7. Workers Limited skills Varied skills

10. PRODUCT LAYOUT PROCESS LAYOUT Comparison Of Product And Process Layouts 8. Inventory Low in-process, High in-process, high finished goods low finished goods 9. Storage space Small Large 10. Material Fixed path Variable path handling (conveyor) (forklift) 11. Aisles Narrow Wide 12. Scheduling Part of balancing Dynamic 13. Layout decision Line balancing Machine location 14. Goal Equalize work at Minimize material each station handling cost 15. Advantage Efficiency Flexibility

11. Fixed-Position Layouts • Typical of projects • Equipment, workers, materials, other resources brought to the site • Highly skilled labor • Often low fixed • Typically high variable costs

12. Designing Process Layouts • Minimize material handling costs • Block Diagramming • Minimize nonadjacent loads • Use when quantitative data is available • Relationship Diagramming • Based on location preference between areas • Use when quantitative data is not available

13. Block Diagramming • Create load summary chart • Calculate composite (two way) movements • Develop trial layouts minimizing number of nonadjacent loads

14. (a) Initial block diagram 1 4 2 3 5 Block Diagrams

15. (a) Initial block diagram (b) Final block diagram 1 4 2 1 4 3 5 2 3 5 Block Diagrams

18. Relationship Diagramming(Murther’s Grid) • Used when quantitative data is not available • Muther’s grid displays preferences • Denote location preferences with weighted lines

19. Production Offices Stockroom Shipping and receiving Locker room Toolroom Relationship Diagramming Example

20. Production O A Offices U I E O Stockroom A A X Shipping and receiving U U U O O Locker room O Toolroom Relationship Diagramming Example A Absolutely necessary E Especially important I Important O Okay U Unimportant X Undesirable

21. Production O A Offices U I E O Stockroom A A X U U Shipping and receiving U O O Locker room O Toolroom Relationship Diagramming Example A Absolutely necessary E Especially important I Important O Okay U Unimportant X Undesirable

22. Production 4 1 Offices 5 3 2 4 Stockroom 1 1 6 Shipping and receiving 5 5 5 4 4 Locker room 4 Toolroom Relationship Diagramming Example 1 Absolutely necessary 2 Especially important 3 Important 4 Okay 5 Unimportant 6 Undesirable

23. Production 4 1 Offices 5 3 2 4 Stockroom 1 1 6 Shipping and receiving 5 5 5 4 4 Locker room 4 Toolroom Relationship Diagramming Example 1 Absolutely necessary 2 Especially important 3 Important 4 Okay 5 Unimportant 6 Undesirable

25. Service Layouts • Usually process layouts due to customers needs • Minimize flow of customers or paperwork • Retailing tries to maximize customer exposure to products • Computer programs consider shelf space, demand, profitability • Layouts must be aesthetically pleasing

26. Designing Product Layouts • Product layouts or assembly lines • Develop precedence diagram of tasks • Jobs divided into work elements • Assign work elements to workstations • Try to balance the amount work of each workstation

27. Line Balancing • Precedence diagram • Network showing order of tasks and restrictions on their performance • Cycle time • Maximum time product spends at any one workstation

28. Hybrid Layouts • Cellular layouts • Group machines into machining cells • Flexible manufacturing systems • Automated machining & material handling systems • Mixed-model assembly lines • Produce variety of models on one line

29. Cellular Layouts • Identify families of parts with similar flow paths • Group machines into cells based on part families • Arrange cells so material movement is minimized • Locate large shared machines at point of use

30. Advantages Of Cellular Layouts • Reduced material handling and transit time • Reduced setup time • Reduced work-in-process inventory • Better use of human resources • Easier to control - visibility • Easier to automate

31. Disadvantages Of Cellular Layouts • Inadequate part families • Poorly balanced cells • Expanded training and scheduling of workers • Increased capital investment

32. HM VM Worker 3 VM Paths of three workers moving within cell Material movement L Direction of part movement within cell Worker 2 G L Key: S = Saw L = Lathe HM = Horizontal milling machine VM = Vertical milling machine G = Grinder Final inspection Finished part S Worker 1 Out In Manufacturing Cell

33. Flexible Manufacturing Systems • Automated machining operations • Automated material handling • Automated tool changers • Computer controlled system • Designed around size of parts processed & average processing time for parts • Can process wide variety of items quickly

34. Mixed Model Assembly Lines • Produce multiple models in any order on one assembly line • Harley, Opel • Issues in mixed model lines • Line balancing • U-shaped line • Flexible workforce • Model sequencing

35. Facility Location Models

36. Types Of Facilities • Heavy manufacturing • Auto plants, steel mills, chemical plants • Light industry • Small components mfg, assembly • Warehouse & distribution centers • Retail & service

37. Factors in Heavy Manufacturing Location • Construction costs • Land costs • Raw material and finished goods shipment modes • Proximity to raw materials • Utilities • Labor availability

38. Factors in Light Industry Location • Construction costs • Land costs • Easily accessible geographic region • Education & training capabilities

39. Factors in Warehouse Location • Transportation costs • Proximity to markets (Customers)

41. Transportation and distribution industry--based on business and employment base providing transportation, distribution, warehousing and related services. Work force--geared to existing and available logistics-related workers in the area. Road infrastructure--measures factors like available lane miles per capita, interstate highway access, miles of paved roads etc. Road density, congestion and safety--ranks the city on traffic volumes and delays as well as accident statistics and other factors affecting the smooth flow of traffic. Road condition--draws on state performance and includes condition of highways and bridges among other measures. Interstate highway--includes access to interstate highways, spending on highway construction and maintenance. Taxes and fees--provides a measure of logistics-related costs, including highway and fuel taxes and related business activity taxes. Railroad--offers a state-based rank of access to Class 1 and other rail services and miles of track. Waterborne commerce--includes ocean port capacity as well as inland waterways. Air cargo--ranks the city on its access to cargo services, including wide-body passenger service by combination carriers, international and expedited services. Source: Logistics Today, “The Logistics Quotient: Midwest

42. Source: Logistics Today, “The Logistics Quotient: Midwest

43. Layout Considerations • Cross docking • dock doors - how many • picking techniques • bulk storage • safety/backup stocks • product flow • conveyors? • Vehicle flow

44. Warehouse Size Considerations • Customer service level • layout • # of products (Stock Keeping Units - SKUs) • customer base • size of products • racks/shelving • demand variability • MHE requirements/aisle size • regulations - CAL OSHA - earthquake; safety; fire

45. Factors in Retail Location • Proximity to customers • Ease of customer entry and exit • Location is everything

46. Government stability Government regulations Political and economic systems Economic stability and growth Exchange rates Culture Climate Export import regulations, duties and tariffs Raw material availability Number and proximity of suppliers Transportation and distribution system Labor cost and education Available technology Commercial travel Technical expertise Cross-border trade regulations Group trade agreements Global Location Factors

47. Labor (availability, education, cost and unions) Proximity of customers Number of customers Construction/leasing costs Land costs Modes and quality of transportation Transportation costs Incentive packages Governmental regulations Environmental regulations Raw material availability Commercial travel Climate Infrastructure Quality of life Regional Location Factors

48. Community government Local business regulations Government services Business climate Community services Taxes Availability of sites Financial Services Community inducements Proximity of suppliers Education system Regional Location Factors

49. Customer base Construction/ leasing cost Land cost Site size Transportation Utilities Zoning restrictions Traffic Safety/security Competition Area business climate Income level Site Location Factors

50. Location Incentives • Tax credits Wal-Mart in Wyandotte • Relaxed government regulation • Job training • Infrastructure improvement • Money