Introduction to Manufacturing Facilities Design and Material Handling

1
Chapter 1

• Introduction to Manufacturing Facilities Design
  and Material Handling

2
Objectives

• After reading the chapter and reviewing the
  materials presented the students will be able
  to
• Understand the importance of a systematic
  approach to facilities planning
• Identify the various types of waste
• Understand systematic layout procedure

3
The Importance of Manufacturing Facilities Design
and Material Handling

• The selection of the location may be influenced
  by economic factors such as tax incentives, low
  cost land, or relaxed environmental regulations.
• Factors that may influence location strategy may
  include raw materials, energy, human resources
  and lower labor costs.
• Facilities design includes plant location,
  building design, plant layout, and material
  handling systems.
• Manufacturing facilities design is the
  organization of the companys physical assets to
  promote the efficient use resources such as
  people, material, equipment, and energy.
• Building design is an architectural job, thus the
  architectural firms expertise in building design
  and construction techniques is extremely
  important to the facilities design project.
• Layout is the physical arrangement of production
  machines and equipment, workstations, people,
  location of materials of all kinds and stages,
  and material handling equipment.
• Material handling is simply defined as moving
  material. Material handling accounts for about
  50 of all industrial injuries and from 40 to 80
  of all operating costs.

4
The Importance of Manufacturing Facilities Design
and Material Handling

• Facilities planners ask the six questions ( why,
  who, what, where, when, and how) about everything
  that can happen to a part flowing through a
  manufacturing facility (operation,
  transportation, inspection, storage, and delay)
  to eliminate steps, combine steps, change
  sequence of steps or simplify.
• The five Ss principles are 1. Sifting
  (organization). Keeping the minimum of what is
  required will save space, inventory, and money.
  2. Sorting (arrangement). Everything has a
  specific place, and everything in its place is a
  visual management philosophy that affects
  facilities layout. 3. Sweeping (cleaning). A
  clean plant is a result of a facility layout that
  has been thought to provide room for everything.
  4. Spic and Span (hygiene). A safe plant is a
  result of good layout planning. 5. Strict
  (discipline). Following the procedures and
  standardized methods and making them a habit will
  keep the plant operating efficiently and safely.
• The five whys will ensure that the solution to a
  problem is not a symptom of the problem, but
  rather, the base cause (page 4).

5
Lean Thinking and Lean Manufacturing

• Lean manufacturing is a concept whereby all
  production people work together to eliminate
  waste.
• Muda (waste) is defined as any expense that does
  not help produce value.
• There are 8 kinds of muda overproduction,
  waiting, transportation, processing, inventory,
  motion, rework, and poor people utilization.
• Kaizen is the Japanese word for continuous
  improvement. Every person in the company is
  encouraged to search for new ideas and
  opportunities to further improve the organization
  and its processes including reducing waste.
• Kanban is a signal board that communicates the
  need for material and visually tells the operator
  to produce another unit or quantity. With pull
  systems parts are produced only when the need
  arises and they have been requested or there is a
  pull from production operations.
• Value stream mapping (VSM) is the process of
  assessment of each component or the step of
  production to determine the extent to which it
  contributes to operational efficiency or product
  quality. VSM can reduce or eliminate excessive
  material handling, eliminate wasted space, create
  a better control of all types of inventory and
  streamline various production steps.

6
The Goals of Manufacturing Facilities Design and
Material Handling

• A mission statement communicates the primary
  goals and the culture of the organization to the
  facilities planner.
• 1. Minimize unit and project costs It does not
  mean buying the cheapest machine, because the
  most expensive machine may produce the lowest
  unit cost.
• 2. Optimize quality Quality and cost are the two
  primary competitive fronts. You must constantly
  balance cost and quality.
• 3. Promoting the effective use of people,
  equipment, space, and energy Providing
  convenient location for services like restrooms,
  locker rooms, cafeterias, tool cribs and any
  other service will increase productivity.
• 4. Provide for the convenience, safety, and
  comfort of our employees Drinking fountains,
  parking lot design and location, employee
  entrances, as well as restrooms and cafeterias
  must be convenient to all employees.
• 5. Control project costs Budgeting and then
  living within the budget are two things that
  successful managers and engineers learn to do
  early in their careers.
• 6. Achieve the production start date For
  seasonable products, if you miss the start date,
  you miss the whole season. Schedules must be met.
• 7. Build flexibility into the plan Design
  buildings that will be able to support a wide
  variety of uses.
• 8. Reduce or eliminate excessive inventory
  Inventory costs about 35 to hold. Minimize all
  forms (raw material, work in progress, finished
  goods) of inventory.
• 9. Achieve miscellaneous goals Like using
  plug-in plug-out equipment to allow operators to
  move equipment easily for flexibility. Goals
  should be measurable and achievable.

7
The Manufacturing Facilities Design Procedure

• Resist jumping into the layout phase before
  collecting and analyzing data
• 1. Determine what will be produced for example a
  toolbox.
• 2. Determine how many will be made per unit of
  time for example 1,500 per 8 hour shift.
• 3. Determine what parts will be made or purchased
  complete some companies but all parts, and they
  are called assembly plants.
• 4. Determine how each part will be fabricated.
  This is called process planning and is usually
  done by a manufacturing engineer.
• 5. Determine he sequence of assembly This is
  called assembly line balancing.
• 6. Set time standards for each operation. It is
  impossible to design a plant layout without time
  standards.
• 7. Determine the plant rate (takt time). This is
  how fast the facility needs to produce. For
  example to make 1,500 units in 8 hours, you have
  to make a part every .32 minute (3 parts per
  minute).
• 8. Determine the number of machines needed. For
  example if a machine has a time standard of .75
  minutes per part, .75/.32 2.34 machines. So you
  will need 3 machines.
• 9. Balance assembly lines or work cells. Try to
  give everyone as close to the same amount of work
  as possible.
• 10. Study material flow patterns to establish the
  best (shortest distance through the facility)
  flow possible.
• 11. Determine activity relationships. How close
  do departments need to be to each other to
  minimize people and material movement.
• 12. Lay out each workstation. These layouts will
  lead to department layouts, and then to the
  facility layout.
• 13. Identify the need for personal plant and
  services, and provide the space needed.
• 14. Identify office needs and layout as needed.
• 15. Develop total space requirements from the
  above information.

8
The Manufacturing Facilities Design Procedure
(continued)

• 16. Select material handling equipment.
• 17. Allocate the area according to the space
  needed and the activity relationships established
  in 11 above.
• 18. Develop a plot plan and the building shape.
  How will the facility fit on the property.
• 19. Construct a master plan. This is the
  manufacturing facility design the last page of
  the project and the result of the data collected
  and the decisions made.
• 20. Seek input and adjust. Ask your peers to see
  if they can punch holes in your design before you
  present it to management for approval.
• 21. Seek approvals, take advice, and change as
  needed.
• 22. Install the layout.
• 23. Start production.
• 24. Adjust as needed and finalize the project
  report and budget performance.

9
Types and Sources of Manufacturing Facilities
Design Projects

• 1. New facility There are fewer restrictions
  because you do not have to be concerned with old
  facilities.
• 2. New product Some common equipment may be
  shared with an old product. A corner of the plant
  is set aside for a new product.
• 3. Design changes Layout may be affected by
  these changes.
• 4. Cost reduction May find a better layout that
  will produce more products with less worker
  effort.
• 5. Retrofit Constraints include existing walls,
  floor pits, low ceilings, and any other permanent
  fixtures that may pose an obstacle to an
  efficient material flow.
• If designers study the flow, they can improve it
  by changing the facilities layout.

10
Computers and Simulation in Manufacturing
Facilities Design

• Simulation can be used to predict the behavior of
  a manufacturing or service system by actually
  tracking the movements and interaction of the
  system components and aiding in optimizing such
  systems.
• There are a number of user friendly advanced
  simulation packages available for simulating the
  working of a factory, inventory, warehousing, or
  logistics.
• The simulation software generates detailed
  statistics describing the behavior of the system
  under study.

11
ISO 9000 and Facilities Planning

• A large number of corporations demand their
  vendors be registered under ISO 9000 or other
  quality standards.
• Management must continually monitor operations
  for improvement opportunities.
• All procedures and processes must tie back to
  achieving customer satisfaction.
• Systems should be developed to identify,
  document, evaluate, and segregate nonconforming
  occurrences.

12
Summary

• Facilities design includes plant location,
  building design, plant layout, and material
  handling systems.
• Manufacturing facilities design is the
  organization of the companys physical assets to
  promote the efficient use resources such as
  people, material, equipment, and energy.
• Material handling is simply defined as moving
  material. Material handling accounts for about
  50 of all industrial injuries and from 40 to 80
  of all operating costs.
• Facilities planners ask the six questions ( why,
  who, what, where, when, and how) about everything
  that can happen to a part flowing through a
  manufacturing facility (operation,
  transportation, inspection, storage, and delay)
  to eliminate steps, combine steps, change
  sequence of steps or simplify.
• Muda (waste) is defined as any expense that does
  not help produce value. There are 8 kinds of
  muda overproduction, waiting, transportation,
  processing, inventory, motion, rework, and poor
  people utilization.
• Kaizen is the Japanese word for continuous
  improvement. Every person in the company is
  encouraged to search for new ideas and
  opportunities to further improve the organization
  and its processes including reducing waste.
• Value stream mapping (VSM) is the process of
  assessment of each component or the step of
  production to determine the extent to which it
  contributes to operational efficiency or product
  quality. VSM can reduce or eliminate excessive
  material handling, eliminate wasted space, create
  a better control of all types of inventory and
  streamline various production steps.
• A mission statement communicates the primary
  goals and the culture of the organization to the
  facilities planner.
• Resist jumping into the layout phase before
  collecting and analyzing data (25 steps).
• If designers study the flow, they can improve it
  by changing the facilities layout.
• Simulation can be used to predict the behavior of
  a manufacturing or service system by actually
  tracking the movements and interaction of the
  system components and aiding in optimizing such
  systems.
• A large number of corporations demand their
  vendors be registered under ISO 9000 or other
  quality standards.

13
Home Work

1. What does facilities design include?
2. What is muda? What are the 8 kinds of muda?