Facility Layout Design: Maximizing Efficiency and Productivity

1. Chapter 10, 11, 17 Class 3 Webster Fall 2011

2. Facilities

3. 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

4. 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

5. 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

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. In Out A Product Layout

8. 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

9. 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

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

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

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

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

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

16. 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

17. 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

18. 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

19. 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

21. 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

22. 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

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

24. 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

25. 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

26. 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

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

28. 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

29. 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

30. Facility Location Models

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

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

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

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

37. 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

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

39. 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

40. 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

41. 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

42. 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

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

44. Center-of-Gravity Technique • Locate facility at center of geographic area • Based on weight and distance traveled • Establish grid-map of area • Identify coordinates and weights shipped for each location

45. Project Managementand Operations

46. First Essay on Project Management: 1697 – “An Essay Upon Projects” 1959 HBR Article – “The Project Manager” Air Force Manual 1964 Project Management

47. Project Management In today’s global marketplace, complexity and speed are certainties. In such an environment, a good axiom for project management is, Do It, Do It Right, Do It Right Now. Creating clear direction, efficiency, timely response, and quality outcomes requires project managers who are agile -- adept at change. The associated disciplinary areas are clearly spelled out in the following PMI definition.“Project management is the application of knowledge, skills, tools, and techniques to a broad range of activities in order to meet the requirements of a particular project. Project management is comprised of five Project Management Process Groups – Initiating Processes, Planning Processes, Executing Processes, Monitoring and Controlling Processes, and Closing Processes. Source: Project Management Institute - http://www.pmi.org/info/PP_AboutProfessionOverview.asp?nav=0501

48. Elements of Project Management • Project team • Individuals from different departments within company • Matrix organization • Team structure with members from different functional areas depending on skills needed • Project manager - Leader of project team • Project Charter – high level description of what is to be accomplished in a project and delegates authority to project manager to implement actions to complete project

49. Project Planning • Statement of work • Written description of goals, work & time frame of project • Activities require labor, resources & time • Precedence relationship shows sequential relationship of project activities

50. Elements of Project Planning • Define project objective(s) • Identify activities • Establish precedence relationships • Make time estimates • Determine project completion time • Compare project schedule objectives • Determine resource requirements to meet objective