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IENG 471 - Lecture 02

IENG 471 - Lecture 02. Strategic Facilities Planning. Potential Projects. CICMHE Competition 5 weeks, Distribution Center, TBA Reconfigurable MIL Lab/SIFE Production Center It’s a lab, no – it’s a class room, no – it’s a production facility SDSM&T Recreation Center

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IENG 471 - Lecture 02

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  1. IENG 471 - Lecture 02 Strategic Facilities Planning IENG 471 Facilities Planning

  2. Potential Projects • CICMHE Competition • 5 weeks, Distribution Center, TBA • Reconfigurable MIL Lab/SIFE Production Center • It’s a lab, no – it’s a class room, no – it’s a production facility • SDSM&T Recreation Center • If you’re gonna pay for it, why not have some suggestions? • Brownfield Sand Casting Job Shop • If I’m gonna pay for it, why not have some suggestions? • Others? IENG 471 Facilities Planning

  3. Assignments • Current Assignment: • HW: 1 – Planned Facility Measures (teams of 2 – 3) • Sketch Up Dr. Strangeglove’s Facility • 5+ Criteria with 5 Quantitative Measures • 5+ Items/things that should be housed • Turn in one document per team • Next Assignment: • HW: 2 – Product Definition (teams of 2 – 3) • Reverse engineer a product, and … • Create the Indented BOM and cost roll-up • Create the OPC • Create the Precedence Diagram • Turn in one document per team IENG 471 Facilities Planning

  4. Facilities Planning • Determines how an activity’s tangible, fixed assets should contribute to meeting the activity’s objectives (Boozer, White, et al., p. 26, 3rd Ed.) • Consists of facility location and facility design • Part art, part science – (engineering!) • Approach using the engineering design process • Continuous process with life cycle(s) • Represents a very significant opportunity for cost reduction and productivity improvement IENG 471 Facilities Planning

  5. Strategic Planning • Defn: The art and science of employing resources to achieve an objective • High level of planning: • Identify a process to obtain an objective • Identify and utilize resources (physical aspects) • Identify and execute processes (time aspects) • Identify and coordinate methods (control aspects) • Longer term (Strategic) vs. shorter term (Tactical) • Plan a trip from Rapid City SD to Chicago IL– (map?) • Resources • Timing • Control • Strategic and Tactical relationship • Objective of strategic plan doesn’t change! IENG 471 Facilities Planning

  6. Strategic Planning • Applied to Facilities Planning: • Requires an understanding of feasibilities: • Marketing • Product development • Manufacturing / Processing • Production / Inventory control • Human resources • Finance • Impacts the performance of each, too • Concurrent design process seems best • Facilities planning occurs simultaneously • Evolving requirements • Multiple alternatives • Design iterations probable IENG 471 Facilities Planning

  7. Issues Impacting a Strategic Facilities Plan: • Number, location, sizes of warehouse/distribution centers • Centralized vs. decentralized storage / manufacturing • Acquire existing (brownfield) vs. build new (greenfield) • Flexibility required for marketing & technology • Interfacing storage and manufacturing • Level of vertical integration • Control of materials and equipment • Distributed processing levels • Inbound and outbound material movement • Technology changes for suppliers, firm, customers • Financial goals for the design of the facility IENG 471 Facilities Planning

  8. Steps in Engineering Design • Ideal Sequence: • Defining the Problem • Gathering Pertinent Information • Generating Multiple Solutions • Analyzing and Selecting a Solution • Testing and Implementing the Solution • Actual process is iterative… • Frequently back-track to a previous stage IENG 471 Facilities Planning

  9. Facilities Planning Process Steps • Defining the Problem • Define the products to be manufactured / processed • Gathering Pertinent Information • Specify the manufacturing / processing & related activities • Determine activity interrelationships • Determine activity space requirements IENG 471 Facilities Planning

  10. Facilities Planning Process Steps • Generating Multiple Solutions • Generate alternative facilities plans • Analyzing and Selecting a Solution • Evaluate the alternative plans • Select the preferred facilities plan • Testing and Implementing the Solution • Implement the facilities plan • Maintain and update the facilities plan IENG 471 Facilities Planning

  11. Facilities Planning Process Steps • Frequently back-track to a previous stage • Update the products and redefine the objective of the facility IENG 471 Facilities Planning

  12. Data for Strategic Facility Design • What is to be produced? • How are the products to be produced? • When are the products to be produced? • How much of the product is to be produced? • How long will the product be produced? • Where are the products to be produced? IENG 471 Facilities Planning

  13. Example Data for Strategic Facility Design • What is to be produced? 1/16 scale models of new and old tractors • How are the products to be produced? Die & sand casting, trimming/drilling, painting, assembling, direct shipping • When are the products to be produced? Within 1/2 month prior to introduction, and 2 months after order • How much of the product is to be produced? Batch production runs of 100 to 1000, ~ 8 new & 20 total models/yr • How long will the product be produced? 2 – 3 yrs/model, product lifecycle of 15 – 30 yrs, facility life >50 yrs • Where are the products to be produced? Small, rural Iowa town (~ 3000 pop.; supplied from Chicago, WI; adjacent to rail, near major U.S. highway; OEMs in IL, WI, IA IENG 471 Facilities Planning

  14. Example Data for Strategic Facility Design • What is the production site like? Three, single-story pole-buildings (one improved, with 2 additions) • What utilities are available (and where)? Municipal sewer & water; regional electric, internet & natural gas • What transportation is available (and where)? Railroad line on South, at-grade truck on East in street ROW • How is the production site constrained? Rail, creek to South; streets East (access), North; open land West • How many people will be required? 40 – 90 people, non-union, 8% office, two 8 hr shifts, 6 days/week • What standards are applicable? ADA (28 CFR 36), IBC, IFC, IECC, NEC, NFPA, OSHA (29 CFR 1910), UPC; near flood plain; no municipal/county parking regulations IENG 471 Facilities Planning

  15. Exercise: Data for Strategic Facility Design • What is to be produced? • How are the products to be produced? • When are the products to be produced? • How much of the product is to be produced? • How long will the product be produced? • Where are the products to be produced? How would you answer these questions for the following: • Armadillo’s • McDonald’s • Hardee’s • Applebee’s • Minerva’s • Corn Exchange IENG 471 Facilities Planning

  16. Questions & Issues • Next Class: • Hands on assignment to develop: • BOM • Operation Process Chart • Precedence Diagram • Team exercise (but not part of Project) • 3 people per team • (2 people, if necessary) IENG 471 Facilities Planning

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