Operations Management

(1)

Operations

Management

Operations

Management

Chapter 9

–

Layout Strategies

PowerPoint presentation to accompany

PowerPoint presentation to accompany

Heizer/Render

Principles of Operations Management, 7e

Operations Management, 9e

(2)

Outline

;

; Global Company Profile: _{Global Company Profile:}

McDonald

McDonald’’ss

;

; The Strategic Importance of The Strategic Importance of Layout Decisions

Layout Decisions ;

; Types of Layout_{Types of Layout} ;

(3)

Outline

–

Continued

;

; Retail LayoutRetail Layout

;

; ServicescapesServicescapes ;

; Warehousing and Storage Layouts_{Warehousing and Storage Layouts}

;

; CrossCross--DockingDocking

;

; Random DockingRandom Docking

;

; CustomizingCustomizing ;

(4)

Outline

–

Continued

;

; Process_Process--Oriented LayoutOriented Layout

;

; Computer Software for Process-Computer Software for Process -Oriented Layouts

Oriented Layouts

;

; Work CellsWork Cells

;

; Requirements of Work CellsRequirements of Work Cells

;

; Staffing and Balancing Work CellsStaffing and Balancing Work Cells

;

; The Focused Work Center and the The Focused Work Center and the Focused Factory

(5)

Outline

–

Continued

;

; Repetitive and ProductRepetitive and Product--Oriented Oriented Layout

Layout

;

(6)

Learning Objectives

When you complete this chapter you

When you complete this chapter you

should be able to:

1.

1. Discuss important issues in office layoutDiscuss important issues in office layout 2.

2. Define the objectives of retail layoutDefine the objectives of retail layout 3.

3. Discuss modern warehouse Discuss modern warehouse

management and terms such as ASRS, management and terms such as ASRS, cross

cross--docking, and random stockingdocking, and random stocking 4.

4. Identify when fixedIdentify when fixed--position layouts are position layouts are appropriate

(7)

Learning Objectives

When you complete this chapter, you

When you complete this chapter, you

should be able to:

5.

5. Explain how to achieve a good process-Explain how to achieve a good process -oriented facility layout

oriented facility layout 6.

6. Define work cell and the requirements of Define work cell and the requirements of a work cell

a work cell 7.

7. Define product-Define product-oriented layoutoriented layout 8.

8. Explain how to balance production flow Explain how to balance production flow in a repetitive or product

(8)

Innovations at McDonald

’

s

;

; Indoor seating (1950s)_{Indoor seating (1950s)} ;

; Drive_Drive--through window (1970s)through window (1970s)

;

; Adding breakfast to the menu Adding breakfast to the menu (1980s)

(1980s) ;

; Adding play areas (late 1980s)_{Adding play areas (late 1980s)} ;

; Redesign of the kitchens (1990s)_{Redesign of the kitchens (1990s)} ;

; Self_Self--service kiosk (2004)service kiosk (2004)

;

(9)

Innovations at McDonald

’

s

;

; Indoor seating (1950s)_{Indoor seating (1950s)} ;

; Drive_Drive--through window (1970s)through window (1970s)

;

; Adding breakfast to the menu Adding breakfast to the menu (1980s)

(1980s) ;

; Adding play areas (late 1980s)_{Adding play areas (late 1980s)} ;

; Redesign of the kitchens (1990s)_{Redesign of the kitchens (1990s)} ;

; Self_Self--service kiosk (2004)service kiosk (2004)

;

; Now three separate dining sectionsNow three separate dining sections

Six out of the

Six out of the

seven are seven are layout layout decisions! decisions!

(10)

McDonald

’

s New Layout

;

; Seventh major innovation Seventh major innovation

;

; Redesigning all 30,000 outlets around Redesigning all 30,000 outlets around the world

the world

;

; Three separate dining areasThree separate dining areas

;

; Linger zone with comfortable chairs and Linger zone with comfortable chairs and Wi

Wi--Fi connectionsFi connections

;

; Grab and go zone with tall countersGrab and go zone with tall counters

;

; Flexible zone for kids and familiesFlexible zone for kids and families

;

; Facility layout is a source of Facility layout is a source of competitive advantage

(11)

Strategic Importance of

Layout Decisions

The objective of layout strategy

The objective of layout strategy

is to develop a cost

is to develop a cost--effective effective layout that will meet a firm

layout that will meet a firm’’s s competitive needs

(12)

Layout Design

Considerations

;

; Higher utilization of space, equipment, Higher utilization of space, equipment, and people

and people

;

; Improved flow of information, materials, Improved flow of information, materials, or people

or people

;

; Improved employee morale and safer Improved employee morale and safer working conditions

working conditions

;

; Improved customer/client interactionImproved customer/client interaction

;

(13)

Types of Layout

1.

1. Office layout Office layout 2.

2. Retail layout Retail layout 3.

3. Warehouse layoutWarehouse layout 4.

4. FixedFixed--position layoutposition layout 5.

5. ProcessProcess--oriented layoutoriented layout 6.

6. WorkWork--cell layout cell layout 7.

(14)

Types of Layout

1.

1. Office layout: Positions workers, Office layout: Positions workers,

their equipment, and spaces/offices

to provide for movement of

information

2.

2. Retail layout: Allocates shelf space Retail layout: Allocates shelf space and responds to customer behavior

and responds to customer behavior

3.

3. Warehouse layout: Addresses tradeWarehouse layout: Addresses trade- -offs between space and material

offs between space and material

handling

(15)

Types of Layout

4.

4. FixedFixed--position layout: Addresses the position layout: Addresses the layout requirements of large, bulky

layout requirements of large, bulky

projects such as ships and buildings

5.

5. ProcessProcess--oriented layout: Deals with oriented layout: Deals with low

low--volume, highvolume, high--variety production variety production (also called job shop or intermittent

(also called job shop or intermittent

production)

(16)

Types of Layout

6.

6. Work cell layout: Arranges Work cell layout: Arranges

machinery and equipment to focus

on production of a single product or

group of related products

7.

7. ProductProduct--oriented layout: Seeks the oriented layout: Seeks the best personnel and machine

best personnel and machine

utilizations in repetitive or

utilizations in repetitive or

continuous production

(17)

Good Layouts Consider

1.

1. Material handling equipmentMaterial handling equipment 2.

2. Capacity and space requirementsCapacity and space requirements 3.

3. Environment and aestheticsEnvironment and aesthetics 4.

4. Flows of informationFlows of information 5.

5. Cost of moving between various Cost of moving between various work areas

(18)

Layout Strategies

Table 9.1

Table 9.1

Balance low

Balance low--cost cost storage with low

storage with low- -cost material cost material handling handling Expose customer Expose customer to high

to high--margin margin items items Locate workers Locate workers requiring frequent requiring frequent contact close to contact close to one another one another Problems/Issues Problems/Issues Federal

Federal--MogulMogul’’ss warehouse warehouse The Gap The Gap’’ss distribution center distribution center Kroger Kroger’’ss Supermarket Supermarket Walgreen Walgreen’’ss Bloomingdale Bloomingdale’’ss Allstate Insurance Allstate Insurance Microsoft Corp. Microsoft Corp. Examples Examples Warehouse Warehouse (storage) (storage) Retail Retail Office Office

(19)

Layout Strategies

Table 9.1

Table 9.1

Manage varied material

flow for each product

Move material to the

limited storage areas

around the site

Problems/Issues

Problems/Issues

Arnold Palmer Hospital

Hard Rock Caf

Hard Rock Caféé Olive Garden

Olive Garden

Ingall Ship Building

Corp. Corp. Trump Plaza Trump Plaza Pittsburgh Airport Pittsburgh Airport Examples Examples Job Shop Job Shop (process oriented) (process oriented) Project Project (fixed position) (fixed position)

(20)

Layout Strategies

Table 9.1

Table 9.1

Equalize the task time

at each workstation

Identify a product

family, build teams,

cross train team

members

Problems/Issues

Problems/Issues

Sony

Sony’’s TV assemblys TV assembly line line Toyota Scion Toyota Scion Hallmark Cards Hallmark Cards Wheeled Coach Wheeled Coach Standard Aero Standard Aero Examples Examples Repetitive/ Continuous Repetitive/ Continuous (product oriented) (product oriented) Work Cells Work Cells (product families) (product families)

(21)

Office Layout

;

; Grouping of workers, their equipment, Grouping of workers, their equipment, and spaces to provide comfort,

and spaces to provide comfort,

safety, and movement of information

safety, and movement of information ; ; Movement of _{Movement of} information is main information is main distinction distinction ;

; Typically in state of Typically in state of flux due to frequent

flux due to frequent

technological

changes

(22)

Relationship Chart

Figure 9.1

(23)

Supermarket Retail Layout

;

; Objective is to maximize _{Objective is to maximize}

profitability per square foot of

profitability per square foot of

floor space

floor space ;

; Sales and profitability vary _{Sales and profitability vary}

directly with customer exposure

(24)

Five Helpful Ideas for

Supermarket Layout

1.

1. Locate highLocate high--draw items around the draw items around the periphery of the store

periphery of the store 2.

2. Use prominent locations for highUse prominent locations for high--impulse impulse and high

and high--margin itemsmargin items 3.

3. Distribute power items to both sides of Distribute power items to both sides of an aisle and disperse them to increase an aisle and disperse them to increase

viewing of other items viewing of other items 4.

4. Use endUse end--aisle locationsaisle locations 5.

5. Convey mission of store through careful Convey mission of store through careful positioning of lead

(25)

Store Layout

Figure 9.2

(26)

Retail Slotting

;

; Manufacturers pay fees to retailers _{Manufacturers pay fees to retailers}

to get the retailers to display (slot)

to get the retailers to display (slot)

their product

their product ;

; Contributing factors_{Contributing factors}

;

; Limited shelf spaceLimited shelf space

;

; An increasing number of new An increasing number of new products

products

;

; Better information about sales Better information about sales through POS data collection

through POS data collection

;

(27)

Retail Store Shelf Space

Planogram

;

; Computerized Computerized tool for shelf

tool for shelf- -space

space

management

;

; Generated from Generated from store

store’’s scanner s scanner data on sales

data on sales

;

; Often supplied Often supplied by manufacturer

by manufacturer

5 facings

Shampoo Shampoo Shampoo Shampoo Shampoo

C onditione r C onditione r

Shampoo Shampoo Shampoo Conditioner _Shampoo

2 ft. 2 ft.

(28)

Servicescapes

;

; Ambient conditions Ambient conditions -- background background

characteristics such as lighting, sound, characteristics such as lighting, sound, smell, and temperature

smell, and temperature

;

; Spatial layout and functionality Spatial layout and functionality -- which which involve customer

involve customer

circulation path planning, circulation path planning, aisle characteristics, and aisle characteristics, and product grouping

product grouping

;

; Signs, symbols, and Signs, symbols, and artifacts

artifacts -- characteristics characteristics of building design that of building design that carry social significance carry social significance

(29)

Warehousing and Storage

Layouts

;

; Objective is to optimize trade_{Objective is to optimize trade}--offs offs between handling costs and costs

between handling costs and costs

associated with warehouse space

associated with warehouse space ;

; Maximize the total _{Maximize the total}““cubecube”” of the of the warehouse

warehouse –– utilize its full volume utilize its full volume while maintaining low material

while maintaining low material

handling costs

(30)

Warehousing and Storage

Layouts

;

; All costs associated with the transactionAll costs associated with the transaction

;

; Incoming transportIncoming transport

;

; StorageStorage

;

; Finding and moving materialFinding and moving material

;

; Outgoing transportOutgoing transport

;

; Equipment, people, material, supervision, Equipment, people, material, supervision, insurance, depreciation

insurance, depreciation

;

; Minimize damage and spoilageMinimize damage and spoilage

Material Handling Costs

(31)

Warehousing and Storage

Layouts

;

; Warehouse density tends to vary Warehouse density tends to vary

inversely with the number of different inversely with the number of different items stored

items stored

;

; Automated Storage and Automated Storage and

Retrieval Systems (ASRSs) Retrieval Systems (ASRSs) can significantly improve can significantly improve warehouse productivity by warehouse productivity by an estimated 500%

an estimated 500%

;

; Dock location is a key Dock location is a key design element

(32)

Cross

-

Docking

;

; Materials are moved directly from Materials are moved directly from receiving to shipping and are not receiving to shipping and are not

placed in storage placed in storage

in the warehouse in the warehouse

;

; Requires tight Requires tight scheduling and scheduling and

accurate shipments, accurate shipments,

bar code or RFID bar code or RFID

identification used for identification used for

advanced shipment advanced shipment notification as materials notification as materials are unloaded are unloaded

(33)

Random Stocking

;

; Typically requires automatic identification Typically requires automatic identification systems (AISs) and effective information systems (AISs) and effective information

systems systems

;

; Random assignment of stocking locations Random assignment of stocking locations allows more efficient use of space

allows more efficient use of space

;

; Key tasksKey tasks

1.

1. Maintain list of open locationsMaintain list of open locations 2.

2. Maintain accurate recordsMaintain accurate records 3.

3. Sequence items to minimize travel, pick timeSequence items to minimize travel, pick time 4.

4. Combine picking ordersCombine picking orders 5.

(34)

Customizing

;

; ValueValue--added activities performed at added activities performed at the warehouse

the warehouse ;

; Enable low cost and rapid response _{Enable low cost and rapid response}

strategies

strategies

;

; Assembly of componentsAssembly of components

;

; Loading softwareLoading software

;

; RepairsRepairs

;

(35)

Shipping and receiving docks Office Customization Conveyor Storage racks Staging

Warehouse Layout

Traditional Layout Traditional Layout

(36)

Warehouse Layout

Cross

Cross--Docking LayoutDocking Layout

Shipping and receiving docks

Office

(37)

Fixed

-

Position Layout

;

; Product remains in one place _{Product remains in one place} ;

; Workers and equipment come to siteWorkers and equipment come to site

;

; Complicating factors_{Complicating factors}

;

;Limited space at siteLimited space at site

;

;Different materials Different materials required at different required at different stages of the project stages of the project

;

;Volume of materials Volume of materials needed is dynamic needed is dynamic

(38)

Alternative Strategy

;

; As much of the project as possible _{As much of the project as possible}

is completed off

is completed off--site in a productsite in a product- -oriented facility

oriented facility ;

; This can This can

significantly significantly improve efficiency improve efficiency but is only but is only possible when possible when multiple similar multiple similar

units need to be created

(39)

Process

-

Oriented Layout

;

; Like machines and equipment are _{Like machines and equipment are}

grouped together

grouped together ;

; Flexible and capable of handling a Flexible and capable of handling a wide variety of products or

wide variety of products or

services

services ;

; Scheduling can be difficult and _{Scheduling can be difficult and}

setup, material handling, and labor

costs can be high

(40)

Surgery Radiology ER triage room ER Beds Pharmacy

Emergency room admissions

Billing/exit Laboratories

Process

-

Oriented Layout

Patient A - broken leg

Patient B - erratic heart pacemaker

Figure 9.3

(41)

Layout at Arnold Palmer Hospital

Central break Central break and medical and medical supply rooms supply rooms Local linen Local linen supply supply Local Local nursing pod nursing pod Pie

Pie--shaped shaped rooms rooms Central nurses Central nurses station station

(42)

Process

-

Oriented Layout

;

; Arrange work centers so as to _{Arrange work centers so as to}

minimize the costs of material

minimize the costs of material

handling

handling ;

; Basic cost elements are_{Basic cost elements are}

;

; Number of loads (or people) moving Number of loads (or people) moving between centers

between centers

;

; Distance loads (or people) move Distance loads (or people) move between centers

(43)

Process

-

Oriented Layout

Minimize cost = Minimize cost =

∑

n

∑

XX_ij_ij CC_ij_ij n i i = 1= 1 n n j j = 1= 1 where

where nn == total number of work centers or total number of work centers or departments

departments

i, j

i, j == individual departmentsindividual departments X

X_ij_ij == number of loads moved from number of loads moved from department i to department j

department i to department j

C

C_ij_ij == cost to move a load between cost to move a load between department i and department j

(44)

Process Layout Example

1.

1. Construct a Construct a ““fromfrom--to matrixto matrix”” 2.

2. Determine the space requirementsDetermine the space requirements 3.

3. Develop an initial schematic diagramDevelop an initial schematic diagram 4.

4. Determine the cost of this layout Determine the cost of this layout 5.

5. Try to improve the layoutTry to improve the layout 6.

6. Prepare a detailed plan Prepare a detailed plan

Arrange six departments in a factory to Arrange six departments in a factory to

minimize the material handling costs. minimize the material handling costs.

Each department is 20 x 20 feet and the Each department is 20 x 20 feet and the building is 60 feet long and 40 feet wide. building is 60 feet long and 40 feet wide.

(45)

Department

Department AssemblyAssembly PaintingPainting MachineMachine ReceivingReceiving ShippingShipping TestingTesting (1) (1) (2)(2) Shop (3)Shop (3) (4)(4) (5)(5) (6)(6) Assembly (1) Assembly (1) Painting (2) Painting (2) Machine Shop (3) Machine Shop (3) Receiving (4) Receiving (4) Shipping (5) Shipping (5) Testing (6) Testing (6)

Number of loads per week

50 100 0 0 20 30 50 10 0

20 0 100 50 0

0

Process Layout Example

Figure 9.4

(46)

Area 1

Area 1 Area 2Area 2 Area 3Area 3

Area 4

Area 4 Area 5Area 5 Area 6Area 6 60

60’’

40

40’’

Process Layout Example

Receiving Shipping Testing Department Department Department

(4) (5) (6)

Figure 9.5

Assembly Painting Machine Shop Department Department Department

(47)

100 100 50 50 20 20 50 50 50 50 20 20 10 10 100 100 30 30

Process Layout Example

Interdepartmental Flow Graph Interdepartmental Flow Graph

1 2 3

4 5 6

Figure 9.6

(48)

Process Layout Example

Cost

Cost == $50$50 ++ $200$200 ++ $40$40

(1 and 2)

(1 and 2) (1 and 3)(1 and 3) (1 and 6)(1 and 6)

+

+ $30$30 ++ $50$50 ++ $10$10

(2 and 3)

+

+ $40$40 ++ $100$100 ++ $50$50

(3 and 4)

= $570 = $570 Cost = Cost =

∑

n

∑

XX_ij_ij CC_ij_ij n i i = 1= 1 n n j j = 1= 1

(49)

Process Layout Example

30 30 50 50 10 10 50 50 50 50 20 20 50 50 100100 100 100

Revised Interdepartmental Flow Graph Revised Interdepartmental Flow Graph

2 1 3

4 5 6

Figure 9.7

(50)

Process Layout Example

Cost

Cost == $50$50 ++ $100$100 ++ $20$20

(1 and 2)

+

+ $60$60 ++ $50$50 ++ $10$10

(2 and 3)

+

+ $40$40 ++ $100$100 ++ $50$50

(3 and 4)

= $480 = $480 Cost = Cost =

∑

n

∑

XX_ij_ij CC_ij_ij n i i = 1= 1 n n j j = 1= 1

(51)

Area 1

Area 1 Area 2Area 2 Area 3Area 3

Area 4

Area 4 Area 5Area 5 Area 6Area 6 60

60’’

40

40’’

Process Layout Example

Receiving Shipping Testing Department Department Department

(4) (5) (6)

Figure 9.8

Painting Assembly Machine Shop Department Department Department

(52)

Computer Software

;

; Graphical approach only works for _{Graphical approach only works for}

small problems

small problems ;

; Computer programs are available to _{Computer programs are available to}

solve bigger problems

; ; CRAFTCRAFT ; ; ALDEPALDEP ; ; CORELAPCORELAP ;

(53)

CRAFT Example

1 1 22 33 44 55 66 1 1 A A A A B B 2 2 A A A A B B 3 3 D D D D D D 4 4 C C D D D D 5 5 F F F F F D 6 6 E E E E E D PATTERN PATTERN TOTAL COST 20,100 TOTAL COST 20,100

EST. COST REDUCTION .00

ITERATION 0 ITERATION 0 (a) (a) 1 1 22 33 44 55 66 1 1 D D D D B B 2 2 D D D D B B 3 3 D D D E E E 4 4 C C D E E F 5 5 A A A A A F 6 6 A A A F F F PATTERN PATTERN TOTAL COST 14,390 TOTAL COST 14,390

EST. COST REDUCTION 70.

EST. COST REDUCTION 70.

ITERATION 3

(b)

(54)

Computer Software

;

; Three dimensional visualization _{Three dimensional visualization}

software allows managers to view

software allows managers to view

possible layouts and assess process,

material material handling, handling, efficiency, efficiency, and safety and safety issues issues

(55)

Work Cells

;

; Reorganizes people and machines _{Reorganizes people and machines}

into groups to focus on single

into groups to focus on single

products or product groups

products or product groups ;

; Group technology identifies Group technology identifies products that have similar

products that have similar

characteristics for particular cells

characteristics for particular cells ;

; Volume must justify cells_{Volume must justify cells} ;

; Cells can be reconfigured as _{Cells can be reconfigured as}

designs or volume changes

(56)

Advantages of Work Cells

1.

1. Reduced workReduced work--inin--process inventoryprocess inventory 2.

2. Less floor space requiredLess floor space required 3.

3. Reduced raw material and finished Reduced raw material and finished goods inventory

goods inventory 4.

4. Reduced direct laborReduced direct labor 5.

5. Heightened sense of employee Heightened sense of employee participation

participation 6.

6. Increased use of equipment and Increased use of equipment and machinery

machinery 7.

7. Reduced investment in machinery Reduced investment in machinery and equipment

(57)

Improving Layouts Using

Work Cells

Current layout

Current layout -- workers workers in small closed areas.

in small closed areas.

Cannot increase output

without a third worker and

third set of equipment.

third set of equipment. Improved layout Improved layout -- crosscross--trained trained

workers can assist each other.

workers can assist each other.

May be able to add a third worker

as additional output is needed.

Figure 9.10 (a)

(58)

Improving Layouts Using

Work Cells

Current layout

Current layout -- straight straight

lines make it hard to balance

tasks because work may not

be divided evenly

Improved layout

Improved layout -- in U in U

shape, workers have better

shape, workers have better

access. Four cross

access. Four cross--trained trained workers were reduced.

workers were reduced.

Figure 9.10 (b)

U-shaped line may reduce employee movement and space requirements while enhancing

communication, reducing the number of workers, and facilitating inspection

(59)

Requirements of Work Cells

1.

1. Identification of families of productsIdentification of families of products 2.

2. A high level of training, flexibility A high level of training, flexibility and empowerment of employees

and empowerment of employees

3.

3. Being selfBeing self--contained, with its own contained, with its own equipment and resources

equipment and resources

4.

4. Test (pokaTest (poka--yoke) at each station in yoke) at each station in the cell

(60)

Staffing and Balancing

Work Cells

Determine the takt time

Determine the takt time

Takt time =

Takt time = Total work time availableTotal work time available

Units required

Determine the number

of operators required

Workers required =

Workers required = Total operation time requiredTotal operation time required

Takt time

(61)

Staffing Work Cells

Example

600

600 Mirrors per day requiredMirrors per day required

Mirror production scheduled for

Mirror production scheduled for 88 hours per dayhours per day From a work balance chart

From a work balance chart

total operation time

= 140 = 140 secondsseconds Stand ard time req u ired Stand ard time req u ired Operations Operations Assemble

Assemble PaintPaint TestTest LabelLabel Pack forPack for shipment shipment 60 60 50 50 40 40 30 30 20 20 10 10 0 0

(62)

Staffing Work Cells

Example

600

600 Mirrors per day requiredMirrors per day required

Mirror production scheduled for

Mirror production scheduled for 88 hours per dayhours per day From a work balance chart

From a work balance chart

total operation time

= 140

= 140 secondsseconds

Takt time

Takt time = = (8(8 hrs hrs x 60x 60 minsmins) / 600) / 600 units units

= .8

= .8 mins mins = 48= 48 secondsseconds

Workers required

Workers required == Total operation time requiredTotal operation time required_{Takt time}_{Takt time}

= 140 / 48 = 2.91 = 140 / 48 = 2.91

(63)

Work Balance Charts

;

; Used for evaluating operation Used for evaluating operation times in work cells

times in work cells ;

; Can help identify bottleneck _{Can help identify bottleneck}

operations

operations ;

; Flexible, cross_{Flexible, cross}--trained employees trained employees can help address labor bottlenecks

can help address labor bottlenecks ;

; Machine bottlenecks may require Machine bottlenecks may require other approaches

(64)

Focused Work Center and

Focused Factory

;

; Focused Work CenterFocused Work Center

;

; Identify a large family of similar products Identify a large family of similar products that have a large and stable demand

that have a large and stable demand

;

; Moves production from a generalMoves production from a general--purpose, purpose, process

process--oriented facility to a large work celloriented facility to a large work cell

;

; Focused FactoryFocused Factory

;

; A focused work cell in a separate facilityA focused work cell in a separate facility

;

; May be focused by product line, layout, May be focused by product line, layout,

quality, new product introduction, flexibility,

quality, new product introduction, flexibility,

or other requirements

(65)

Focused Work Center and

Focused Factory

Table 9.2 Table 9.2 Example: A plant to Example: A plant to produce window produce window mechanism for mechanism for automobiles. automobiles.

Example: Pipe bracket

Example: Pipe bracket

manufacturing at a

shipyard.

Example: A job shop

with machinery and

personnel rearranged personnel rearranged to produce 300 unique to produce 300 unique control panels. control panels. A focused factory is a A focused factory is a permanent facility to permanent facility to produce a product or produce a product or component in a component in a product

product--oriented oriented

facility. Many focused

factories currently

being built were

originally part of a

process

process--oriented oriented facility.

facility.

A focused work center is

a permanent product a permanent product- -oriented arrangement oriented arrangement of machines and of machines and personnel in what is personnel in what is ordinarily a process ordinarily a process- -oriented facility. oriented facility. A work cell is a A work cell is a temporary product temporary product- -oriented arrangement oriented arrangement of machines and of machines and personnel in what is personnel in what is ordinarily a process ordinarily a process- -oriented facility. oriented facility. Focused Factory Focused Factory

Focused Work Center

Work Cell

(66)

Repetitive and Product

-

-Oriented Layout

Oriented Layout

1.

1. Volume is adequate for high equipment Volume is adequate for high equipment utilization

utilization

2.

2. Product demand is stable enough to justify high Product demand is stable enough to justify high investment in specialized equipment

investment in specialized equipment

3.

3. Product is standardized or approaching a phase Product is standardized or approaching a phase of life cycle that justifies investment

of life cycle that justifies investment

4.

4. Supplies of raw materials and components are Supplies of raw materials and components are adequate and of uniform quality

adequate and of uniform quality

Organized around products or families of

similar high

(67)

Product

-

Oriented Layouts

;

; Fabrication lineFabrication line

;

; Builds components on a series of machinesBuilds components on a series of machines

;

; MachineMachine--pacedpaced

;

; Require mechanical or engineering changes Require mechanical or engineering changes to balance

to balance

;

; Assembly lineAssembly line

;

; Puts fabricated parts together at a series of Puts fabricated parts together at a series of workstations

workstations

;

; Paced by work tasksPaced by work tasks

;

; Balanced by moving tasksBalanced by moving tasks

Both types of lines must be balanced so that the

time to perform the work at each station is the same

(68)

Product

-

Oriented Layouts

1.

1. Low variable cost per unitLow variable cost per unit 2.

2. Low material handling costsLow material handling costs 3.

3. Reduced workReduced work--inin--process inventoriesprocess inventories 4.

4. Easier training and supervisionEasier training and supervision 5.

5. Rapid throughputRapid throughput

Advantages

1.

1. High volume is requiredHigh volume is required 2.

2. Work stoppage at any point ties up the Work stoppage at any point ties up the whole operation

whole operation

3.

3. Lack of flexibility in product or production Lack of flexibility in product or production rates

rates

Disadvantages

(69)

McDonald

’

s Assembly Line

Figure 9.12

(70)

Disassembly Lines

•

• Disassembly is being considered in Disassembly is being considered in

new product designs

new product designs

•

• ““GreenGreen”” issues and recycling issues and recycling

standards are important consideration

•

• Automotive Automotive

disassembly is

the 16

the 16thth _largest_largest

industry in

the US

(71)

Assembly

-

Line Balancing

;

; Objective is to minimize the imbalance Objective is to minimize the imbalance between machines or personnel while between machines or personnel while meeting required output

meeting required output

;

; Starts with the precedence Starts with the precedence relationships

relationships

1.

1. Determine cycle timeDetermine cycle time 2.

2. Calculate theoretical Calculate theoretical minimum number of

minimum number of

workstations

3.

3. Balance the line by Balance the line by assigning specific

assigning specific

tasks to workstations

(72)

Wing Component Example

This means that

This means that

tasks B and E

cannot be done

until task A has

been completed

Performance

Performance Task Must FollowTask Must Follow Time

Time Task ListedTask Listed Task

Task (minutes)(minutes) BelowBelow A A 1010 —— B B 1111 AA C C 55 BB D D 44 BB E E 1212 AA F F 33 C, DC, D G G 77 FF H H 1111 EE I I 33 G, HG, H Total time Total time 6666

(73)

Wing Component Example

Performance

Performance Task Must FollowTask Must Follow Time

Task (minutes)(minutes) BelowBelow A A 1010 —— B B 1111 AA C C 55 BB D D 44 BB E E 1212 AA F F 33 C, DC, D G G 77 FF H H 1111 EE I I 33 G, HG, H Total time Total time 6666 _I G F C D H B E A 10 11 12 5 4 ₃ 7 11 3 Figure 9.13

(74)

I G F C D H B E A 10 11 12 5 4 ₃ 7 11 3 Figure 9.13 Performance

Task (minutes)(minutes) BelowBelow A A 1010 —— B B 1111 AA C C 55 BB D D 44 BB E E 1212 AA F F 33 C, DC, D G G 77 FF H H 1111 EE I I 33 G, HG, H Total time Total time 6666

Wing Component Example

480 available

mins per day

40 units required

Cycle time =

Production time available per day Units required per day

= 480 / 40

= 12 minutes per unit

Minimum number of workstations =

∑ Time for task i Cycle time

n i = 1

= 66 / 12

(75)

Wing Component Example

I G F C D H B E A 10 11 12 5 4 3 7 11 3 Figure 9.13 Performance

Task (minutes)(minutes) BelowBelow A A 1010 —— B B 1111 AA C C 55 BB D D 44 BB E E 1212 AA F F 33 C, DC, D G G 77 FF H H 1111 EE I I 33 G, HG, H Total time Total time 6666 480 available mins per day

40 units required Cycle time = 12 mins Minimum

workstations = 5.5 or 6

Line-Balancing Heuristics

Choose the available task with the least number of following tasks

5. Least number of following tasks

Choose the available task with the shortest task time 4. Shortest task time

Choose the available task for which the sum of following task times is the longest 3. Ranked positional

weight

Choose the available task with the largest number of following tasks

2. Most following tasks

Choose the available task with the longest task time 1. Longest task time

(76)

480 available mins per day

40 units required Cycle time = 12 mins Minimum

workstations = 5.5 or 6

Performance

Task (minutes)(minutes) BelowBelow A A 1010 —— B B 1111 AA C C 55 BB D D 44 BB E E 1212 AA F F 33 C, DC, D G G 77 FF H H 1111 EE I I 33 G, HG, H Total time Total time 6666

Wing Component Example

I G F H C D B E A 10 11 12 5 4 3 7 11 3 Station 1 Station 2 Station 4 Station 5 Station 3 Station 6 Figure 9.14

(77)

Performance

Task (minutes)(minutes) BelowBelow A A 1010 —— B B 1111 AA C C 55 BB D D 44 BB E E 1212 AA F F 33 C, DC, D G G 77 FF H H 1111 EE I