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FACTWISE REPORT ON FACILITY LAYOUT FOR NEW VIEW TECHNOLOGIES

FACTWISE REPORT ON FACILITY LAYOUT FOR NEW VIEW TECHNOLOGIES. CHANDRASEKHAR GANDURI ROHAN GAVANDE KRISHNAN V KUMAR SAMIK RAYCHAUDHURI. Methodology.  SUBDIVIDED INTO 3 PHASES.

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FACTWISE REPORT ON FACILITY LAYOUT FOR NEW VIEW TECHNOLOGIES

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  1. FACTWISE REPORTONFACILITY LAYOUTFOR NEW VIEW TECHNOLOGIES CHANDRASEKHAR GANDURI ROHAN GAVANDE KRISHNAN V KUMAR SAMIK RAYCHAUDHURI

  2. Methodology  SUBDIVIDED INTO 3 PHASES • PHASE-I: Rough-cut calculations for giving a basic idea of number of machines, number of operators, shifts per hour, number of cells, batch size and total cost. • PHASE-II: Simulation for fixing number of machines, number of operators, level of cross-training, buffer-size and operator assignment. Preliminary calculation of initial cost and operating cost. Rough layout of cells. • PHASE-III: Finalizing overall layout and detailed layout for cells and office spaces. Finalizing material handling method. Projecting cost estimates.

  3. Operations Policy Cells are operating 1 Shift per day of 8 hours each. 1 Hour overtime for 3rd Year in Cell# 1 (For model# 860) and Cell# 3 (For model# 1080). 5 working days per week, 50 weeks per year : Total 250 days. Cross-training level of operators are same, with additional cross-training in after 2 years. Buffer sizes between machines are kept to 20 units. Batch size is equal to a day’s order.

  4. Details of Cell : Cell #1 (Model# 860)

  5. Cell #1: Throughput and Operators

  6. Cell #1: Operator (After 2 Yr.)

  7. Cell #1: Cost Figures

  8. Details of Cell : Cell #2 (Model# 970)

  9. Cell #2: Throughput

  10. Cell #2: Operator (After 2 Yr.)

  11. Cell #2: Cost Figures

  12. Details of Cell : Cell #3 (Model# 1080)

  13. Cell #3: Throughput

  14. Cell #3: Operator (After 2 Yr.)

  15. Cell #3: Cost Figures

  16. Anatomy of the Facility • Layout • Material Handling • Communication • Utilities • Building

  17. Layout Four Phases of Systematic Layout Planning • Location • Overall / Block Layout • Detailed / Cell Layout • Implementation

  18. Communication • Computers and modern information system are used for storage and retrieval of data. • One Information Systems Manager • Digital Information access to managers and above. • For production support, open office structure facilitates communication.

  19. Utilities • Maintenance, compressors and spare parts. • Maintenance and Facilities Supervisor. • Auxiliary utilities like recreation room, training rooms, conference rooms, medical facilities, cafeteria are provided.

  20. Material Handling and Storage Four Phases of Material Handling Analysis • External Integration • Overall Handling Plan • Detailed Handling Plan • Installation

  21. MH : Overall Handling • Based on: • basic system of moves • Type of equipments • Transport unit or containers • Equipments used are: • Walkie-Pallet Truck • Gravity-roller conveyor • Wooden and Steel Pallets

  22. MH : Detailed Handling • Material Control System • Material Handling Dimensions: Movement, Quantity, Time, Space & Control

  23. MH and Storage Statistics and Cost • Battery powered Walkie-Pallet Truck : 1 @ $5000 • Steel Pallets : 15 @ $150 each = $2250 • Wooden Pallets : 21 @ $120 each = $2520 • Gravity Roller Conveyors : 205 ft. @ $8 /ft. = $1640 • Conveyor Kits : 600 @ $5 each = $3000 • Storage Shelves : 20 @$30 each = $600

  24. Operation Policies Two roads diverged in a yellow wood, And sorry I could not travel both. - Robert Frost, The Road not taken

  25. Performance Measures Tell me how you measure me and I will tell you how to behave. If you measure me in an illogical way do not be surprised by illogical behavior. - Dr.Eli Goldratt,The Haystack Syndrome

  26. Performance Measures • External Oriented Measures: Cost based : Cost to Customer Investment indices–ROI,Payback Inventory Operational expense other financial accounting measures

  27. Performance Measures • External Oriented Measures: Non cost based : Lead times Delivery Reliability Flexibility in production

  28. Performance Measures • Internal Oriented Measures: Should be process oriented than result oriented. - Work In Process - Scrap Costs - Cell Throughput - Unit cost - Quality related Measurements - Cell team performance - Space utilization

  29. Performance Incentives Motivation is the art of getting people to do what you want them to do because they want to do it. -Dwight Eisenhower

  30. Performance Incentives Rewards need to be more monetary and non monetary Monetary rewards : Team based awards : Skill Based pay Schemes Non-Monetary rewards : Public recognition Best cell teams

  31. Training Policy • Operators are cross-trained to minimize costs and obtain benefits that come with knowledge. • Initial cross-training level is based on operator background and projected operator idle time. • Operators who jell together as a team should be cross trained • Consultants with proven experience in successfully implementing CM should be hired to educate operators and managers about CM and their broadened job roles. • Operators should be encouraged to take initiative and experiment with new methods to solve the problems.

  32. Quality Policy • Strict quality policy is followed. • Separate manager for Quality Assurance : One technician and one co-op to help him. • Strategies like TQM should be implemented to get the full benefits of CM • Cell teams should be encouraged to come up with innovative solutions to tackle quality problems • Quality problems in incoming material is routinely communicated to suppliers.

  33. Shipping, Receiving and Loading • Inbound and outbound shipments are outsourced. • Quality of inbound raw material and outbound finished goods are responsibility of freight forwarders. • Choice of shipment agents are fixed for three months, and reviewed after that on the basis of performance.

  34. Scrap Policy • Present scrap rate is 7-8% of production, which is uncontrolled random scrap. • Scraps were reduced by removing setup and implementing SPC and PM. • MH equipment also handle scraps produced by the workstations: § Pallets have colored shelve for scraps. § Space between gravity conveyors are used for scraps too. • Company has a environment-friendly recycle policy.

  35. Maintenance Policy • Separate Supervisor for maintenance. • The Preventive Maintenance will be done in machine idle time to allow for undisrupted production. • Cell teams will be trained to look for potential problems and focus on finding the cause of breakdown quickly and develop measures to prevent its reoccurrence.

  36. Inventory Policy • Separate warehouse for incoming material and finished LCD’s. • Company tries to maintain minimum raw material inventory: 2-3 days of inventory is stored in warehouse. • Incoming material and finished product inventory are monitored using software. • 3 days of production capacity is stored in finished good inventory.

  37. Cost Analysis Figures in $

  38. Cost Analysis : Graph

  39. Production Support People (Monthly Salary shown in Square Bracket) • Inventory/warehouse supervisor : 1  Shop Floor Manager: 1 • Maintenance and Facilities supervisor + assistant: 2  Warehouse and Store personnel: 2

  40. Office Personnel (Monthly Salary shown in Square Bracket) • Human Resources (Manager & Co-op): 2 Purchasing Manager: 1 Accounting/finance Manager + Information Systems Technical Person: 1 Product design and Development Manager + 2 engineers + 1 Co-op: 4 Quality Assurance Manager + QC Technician + Co-op: 3 Manufacturing/Process Engineering Manager + Co-op: 2 President + Executive Assistant/Receptionist: 2

  41. Questions ?

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