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Facility Layout. Flow of a product in a process oriented facility. Flow path of a product through successive stages of manufacture/assembly reveals many movements from one work center to another Movement costs $’s (people and equipment need to be on hand)
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Flow of a product in a process oriented facility • Flow path of a product through successive stages of manufacture/assembly reveals many movements from one work center to another • Movement costs $’s (people and equipment need to be on hand) • Movement adds no direct value to the product – it is a wasteful expenditure (non-value-added) • Goal is to design layouts that will reduce or minimize unnecessary flows among departments
Quantitative model to determine movement costs • Considers number of moves between departments/work centers for a product and the distances over which the moves are made (assumes long moves are more costly than short moves) • Minimize C • C = Lij * Dij • N = number of work centers • Lij = the number of loads or movements of work between work centers i and j • Dij = the distance between work centers i and j • C may be viewed as a cost assuming all load*distance moves have constant unit costs • Otherwise need to multiply Lij * Dij by Kij where Kij is the cost to move a unit load a unit distance between work centers i and j
Procedure for applying quantitative model • Estimate the # of loads, Lij, expected over an appropriate planning horizon (one year?) • Propose an initial layout configuration • Determine the distances, Dij • Using C = Lij * Dij measure the effectiveness of the initial configuration • Modify the initial layout to improve effectiveness (by reducing transport/movement costs) • Focus on flows with a high number of loads between non-adjacent work centers (will have greatest impact) • Model obviously limited to simple layouts
Facility layout example • Problem description • Solution