Slayt Basligi Yok

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Planning Production Activity
Preview
Planning Manufacturing Facilities
Quantitative Tools in Production Planning
Production Planning and Control
Flexible Manufacturing Systems
Assoc.Prof.Dr.B.G.Çetiner
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Planning Production Activity
Planning Manufacturing Facilities
Plant Location 7 Basic Steps in locating and
building every new plant
1. Establish the need for a new plant
2. Determine best geographical area based on
needs
3. Establish the requirements
4. Screen many communities
5. Pinpoint few communities for detailed study
6. Select the best location
7. Build the plant
Assoc.Prof.Dr.B.G.Çetiner
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Planning Production Activity
Planning Manufacturing Facilities
Plant Location
Some of the factors affecting choice of region
Transportation (highway, rail, air, water)
Labor (supply, skill level, local wages, and
attitudes)
Geographical location (raw materials, customers
etc)
Utilities (supply and cost of water,
electricity etc)
Business Climate (taxes, pollution controls,
community)
Comfortableness (Climate, educational
facilities etc)
Plant Sites (land cost etc)
Assoc.Prof.Dr.B.G.Çetiner
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Planning Production Activity
Planning Manufacturing Facilities
Plant Location
Most important factors for plant location will
vary with industry
For producing the bricks, plant has to be close
to raw material
Aluminum production needs cheap electricity
High-technology electronic firms have tended to
cluster together with technical professionals
and educational institutions
Clothing manufacturers look for lower
labor-cost areas
Assoc.Prof.Dr.B.G.Çetiner
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Planning Production Activity
Planning Manufacturing Facilities
Plant Design
Nature of plant and its arrangement on the site
Multistory plants Conserve land area, permit use
of gravity flow, and cheaper to heat
Singlestory plants More flexible, permit lighter
foundations.
Assoc.Prof.Dr.B.G.Çetiner
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Planning Production Activity
Planning Manufacturing Facilities
Plant Layout
Try to achieve most effective arrangement of
physical facilities and personnel for making a
product.
Product Layout Machines and personnel are
arranged along the production line so minimum
travel is obtained between processing steps
Process Layout All machines or activity of a
particular type are located together. Useful for
job-shop environment
Assoc.Prof.Dr.B.G.Çetiner
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Planning Production Activity
Planning Manufacturing Facilities
Plant Layout
Try to achieve most effective arrangement of
physical facilities and personnel for making a
product.
Fixed-position Layout Product remains
stationary. (for example shipbuilding or mass
construction)
Group Technology A set of products requiring
similar processing equipment is identified, and
a small group of the machines needed to make
this set of similar products is placed together.
Assoc.Prof.Dr.B.G.Çetiner
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Planning Production Activity
Plant Layout
Product A
1 2 3 4 5
Planning Milling Grinding Drill
Inspection
Press
Shipping
Receiving
Product B
I II III IV V
Drill Turning Milling Painting
Inspection Press
Assoc.Prof.Dr.B.G.Çetiner
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Planning Production Activity
Plant Layout
Planning
Turning
Grinding
1
3
II
Shipping
Receiving
Painting
2
IV
4
III
Drill Press
I
V
5
Milling
Inspection
Assoc.Prof.Dr.B.G.Çetiner
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Planning Production Activity
Quantitative Tools in Production Planning
Economic Order Quantity (EOQ) to Inventory
Break-Even Charts
Learning Curves
Assoc.Prof.Dr.B.G.Çetiner
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Planning Production Activity
Quantitative Tools in Production Planning
Inventory
Inventory Level
Production
Production Problem
Assoc.Prof.Dr.B.G.Çetiner
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Planning Production Activity
Quantitative Tools in Production Planning
Economic Order Quantity (EOQ) to Inventory
Consider an inventory item for which annual
requirement is R units. Storing each unit of the
item in inventory will cost I dollars per
year. Each batch involves a setup cost of S
dollars.
Assoc.Prof.Dr.B.G.Çetiner
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Planning Production Activity
Quantitative Tools in Production Planning
Economic Order Quantity (EOQ) to Inventory
a) If it costs 2 per unit to store an item for
one year, 40 setup cost every time you produce
a lot, and you use 1000 units per year, how many
lots of what size should be produced each
year b) What is the answer if setup cost is
reduced to 10?
Assoc.Prof.Dr.B.G.Çetiner
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Planning Production Activity
Quantitative Tools in Production Planning
Economic Order Quantity (EOQ) to Inventory
Q is batch quantity
Annual Total Cost
Cost (Dollars)
Annual Inventory Holding Cost
Annual Ordering Cost
Order Quantity (Q)
Assoc.Prof.Dr.B.G.Çetiner
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Planning Production Activity
Quantitative Tools in Production Planning
Problem with Economic Order Quantity Why does
the setup cost have to be so high? It doesnt
need to be.
Solution is a) designing dies and tools to
switch to new batch b) including simple
cards (kanban) in each small lot
Assoc.Prof.Dr.B.G.Çetiner
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Planning Production Activity
Quantitative Tools in Production Planning
Break-Even Charts
Break-even analysis divides costs into fixed and
variable components to estimate the production
levels for profitable operation.
Assoc.Prof.Dr.B.G.Çetiner
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Planning Production Activity
Quantitative Tools in Production Planning
Break-Even Charts
A plant may produce and sell U units of product
up to a capacity of 2000 units. Fixed costs F1
of 100,000 must be paid in any case. The
selling price is assumed a constant S250,
regardless of volume, so that total revenue
RUxS. The unit variable cost V1 is assumed to
be constant 150. Each unit sold makes a
contribution C1 of C1S-V1250-150100
The break-even point BE1 is the production level
U where total costs TC equals to total revenue R
Assoc.Prof.Dr.B.G.Çetiner
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Planning Production Activity
Quantitative Tools in Production Planning
Break-Even Charts
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Planning Production Activity
Quantitative Tools in Production Planning
Break-Even Charts (Automation)
More efficient production F1180,000 and
V2100 BE21200
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Planning Production Activity
Quantitative Tools in Production Planning
Break-Even Charts (Automation)
Total Cost BeforeF1UxV1100,0002000x150400,0
00
Total Cost in AutomationF2UxV2180,0002000x100
380,000
Total RevenueUxS2000x250500,000
Maximum Profit BeforeTotal Revenue-Total
Cost500,000-400,000
100,000
Maximum Profit in AutomationTotal Revenue-Total
Cost
500,000-380,000
120,000
Assoc.Prof.Dr.B.G.Çetiner
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Planning Production Activity
Quantitative Tools in Production Planning
Learning Curves
Assoc.Prof.Dr.B.G.Çetiner