Title: Class 3
1Chapter 10, 11, 17
2 3Objectives of Facility Layout
- Minimize material handling costs
- Utilize space efficiently
- Utilize labor efficiently
- Eliminate bottlenecks
- Facilitate communication and interaction between
workers, between workers and their supervisors,
or between workers and customers - Reduce manufacturing cycle time or customer
service time
4Objectives of Facility Layout
- Eliminate waste or redundant movement
- Facilitate the entry, exit, and placement of
material, products, or people - Incorporate safety and security measures
- Promote product and service quality
- Encourage proper maintenance activities
- Provide a visual control of operations or
activities - Provide flexibility to adapt to changing
conditions - Increase capacity
5Basic Types of Layouts
- Process Layout
- Machines grouped by process they perform
- Product Layout
- Linear arrangement of workstations to produce a
specific product - Fixed Position Layout
- Used in projects where the product cannot be moved
6Manufacturing Process Layout
7Manufacturing Process Layout
8Manufacturing Process Layout
9A Product Layout
10Comparison Of Product And Process Layouts
- 1. Description Sequential arrangement Functional
grouping - of machines of machines
- 2. Type of Process Continuous, mass
Intermittent, job shop - production, mainly batch production,
- assembly mainly fabrication
- 3. Product Standardized Varied,
- made to stock made to order
- 4. Demand Stable Fluctuating
- 5. Volume High Low
- 6. Equipment Special purpose General purpose
- 7. Workers Limited skills Varied skills
11Comparison Of Product And Process Layouts
- 8. Inventory Low in-process, High in-process,
- high finished goods low finished goods
- 9. Storage space Small Large
- 10. Material Fixed path Variable path
- handling (conveyor) (forklift)
- 11. Aisles Narrow Wide
- 12. Scheduling Part of balancing Dynamic
- 13. Layout decision Line balancing Machine
location - 14. Goal Equalize work at Minimize material
- each station handling cost
- 15. Advantage Efficiency Flexibility
12Fixed-Position Layouts
- Typical of projects
- Equipment, workers, materials, other resources
brought to the site - Highly skilled labor
- Often low fixed
- Typically high variable costs
13Designing Process Layouts
- Minimize material handling costs
- Block Diagramming
- Minimize nonadjacent loads
- Use when quantitative data is available
- Relationship Diagramming
- Based on location preference between areas
- Use when quantitative data is not available
14Block Diagramming
- Create load summary chart
- Calculate composite (two way) movements
- Develop trial layouts minimizing number of
nonadjacent loads
15Block Diagrams
16Block Diagrams
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19Relationship Diagramming(Murthers Grid)
- Used when quantitative data is not available
- Muthers grid displays preferences
- Denote location preferences with weighted lines
20Relationship Diagramming Example
21Relationship Diagramming Example
- A Absolutely necessary
- E Especially important
- I Important
- O Okay
- U Unimportant
- X Undesirable
22Relationship Diagramming Example
- A Absolutely necessary
- E Especially important
- I Important
- O Okay
- U Unimportant
- X Undesirable
23Relationship Diagramming Example
- 1 Absolutely necessary
- 2 Especially important
- 3 Important
- 4 Okay
- 5 Unimportant
- 6 Undesirable
24Relationship Diagramming Example
- 1 Absolutely necessary
- 2 Especially important
- 3 Important
- 4 Okay
- 5 Unimportant
- 6 Undesirable
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26Service Layouts
- Usually process layouts due to customers needs
- Minimize flow of customers or paperwork
- Retailing tries to maximize customer exposure to
products - Computer programs consider shelf space, demand,
profitability - Layouts must be aesthetically pleasing
27Designing Product Layouts
- Product layouts or assembly lines
- Develop precedence diagram of tasks
- Jobs divided into work elements
- Assign work elements to workstations
- Try to balance the amount work of each workstation
28Line Balancing
- Precedence diagram
- Network showing order of tasks and restrictions
on their performance - Cycle time
- Maximum time product spends at any one workstation
29Hybrid Layouts
- Cellular layouts
- Group machines into machining cells
- Flexible manufacturing systems
- Automated machining material handling systems
- Mixed-model assembly lines
- Produce variety of models on one line
30Cellular Layouts
- Identify families of parts with similar flow
paths - Group machines into cells based on part families
- Arrange cells so material movement is minimized
- Locate large shared machines at point of use
31Advantages Of Cellular Layouts
- Reduced material handling and transit time
- Reduced setup time
- Reduced work-in-process inventory
- Better use of human resources
- Easier to control - visibility
- Easier to automate
32Disadvantages Of Cellular Layouts
- Inadequate part families
- Poorly balanced cells
- Expanded training and scheduling of workers
- Increased capital investment
33Manufacturing Cell
34Mixed Model Assembly Lines
- Produce multiple models in any order on one
assembly line - Harley, Opel
- Issues in mixed model lines
- Line balancing
- U-shaped line
- Flexible workforce
- Model sequencing
35 36Types Of Facilities
- Heavy manufacturing
- Auto plants, steel mills, chemical plants
- Light industry
- Small components mfg, assembly
- Warehouse distribution centers
- Retail service
37Factors in Heavy Manufacturing Location
- Construction costs
- Land costs
- Raw material and finished goods shipment modes
- Proximity to raw materials
- Utilities
- Labor availability
38Factors in Light Industry Location
- Construction costs
- Land costs
- Easily accessible geographic region
- Education training capabilities
39Factors in Warehouse Location
- Transportation costs
- Proximity to markets (Customers)
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41Warehouse Size Considerations
- Customer service level
- layout
- of products (Stock Keeping Units - SKUs)
- customer base
- size of products
- racks/shelving
- demand variability
- MHE requirements/aisle size
- regulations - CAL OSHA - earthquake safety fire
42Factors in Retail Location
- Proximity to customers
- Ease of customer entry and exit
- Location is everything
43Global Location Factors
- Government stability
- Government regulations
- Political and economic systems
- Economic stability and growth
- Exchange rates
- Culture
- Climate
- Export import regulations, duties and tariffs
- Raw material availability
- Number and proximity of suppliers
- Transportation and distribution system
- Labor cost and education
- Available technology
- Commercial travel
- Technical expertise
- Cross-border trade regulations
- Group trade agreements
44Regional Location Factors
- Labor (availability, education, cost and unions)
- Proximity of customers
- Number of customers
- Construction/leasing costs
- Land costs
- Modes and quality of transportation
- Transportation costs
- Incentive packages
- Governmental regulations
- Environmental regulations
- Raw material availability
- Commercial travel
- Climate
- Infrastructure
- Quality of life
45Regional Location Factors
- Community government
- Local business regulations
- Government services
- Business climate
- Community services
- Taxes
- Availability of sites
- Financial Services
- Community inducements
- Proximity of suppliers
- Education system
46Site Location Factors
- Customer base
- Construction/ leasing cost
- Land cost
- Site size
- Transportation
- Utilities
- Zoning restrictions
- Traffic
- Safety/security
- Competition
- Area business climate
- Income level
47Location Incentives
- Tax credits Wal-Mart in Wyandotte
- Relaxed government regulation
- Job training
- Infrastructure improvement
- Money
48Center-of-Gravity Technique
- Locate facility at center of geographic area
- Based on weight and distance traveled
- Establish grid-map of area
- Identify coordinates and weights shipped for
each location
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51Project Managementand Operations
52First Essay on Project Management 1697 An
Essay Upon Projects 1959 HBR Article The
Project Manager Air Force Manual 1964
53Project Management
In todays global marketplace, complexity and
speed are certainties. In such an environment, a
good axiom for project management is, Do It, Do
It Right, Do It Right Now. Creating clear
direction, efficiency, timely response, and
quality outcomes requires project managers who
are agile -- adept at change. The associated
disciplinary areas are clearly spelled out in the
following PMI definition.Project management is
the application of knowledge, skills, tools, and
techniques to a broad range of activities in
order to meet the requirements of a particular
project. Project management is comprised of five
Project Management Process Groups Initiating
Processes, Planning Processes, Executing
Processes, Monitoring and Controlling Processes,
and Closing Processes.
Source Project Management Institute -
http//www.pmi.org/info/PP_AboutProfessionOverview
.asp?nav0501
54Elements of Project Management
- Project team
- Individuals from different departments within
company - Matrix organization
- Team structure with members from different
functional areas depending on skills needed - Project manager - Leader of project team
- Project Charter high level description of what
is to be accomplished in a project and delegates
authority to project manager to implement actions
to complete project
55Project Planning
- Statement of work
- Written description of goals, work time frame
of project - Activities require labor, resources time
- Precedence relationship shows sequential
relationship of project activities
56Elements of Project Planning
- Define project objective(s)
- Identify activities
- Establish precedence relationships
- Make time estimates
- Determine project completion time
- Compare project schedule objectives
- Determine resource requirements to meet objective
57Work Breakdown Structure
- Hierarchical organization of work to be done on a
project - Project broken down into modules
- Modules subdivided into subcomponents,
activities, and tasks - Identifies individual tasks, workloads, and
resource requirements
58Project Control
- All activities identified and included
- Completed in proper sequence
- Resource needs identified
- Schedule adjusted
- Maintain schedule and budget
- Complete on time
59A Gantt Chart
Around since 1914
- Popular tool for project scheduling
- Graph with bar for representing the time for each
task - Provides visual display of project schedule
- Also shows slack for activities
- Amount of time activity can be delayed without
delaying project
60Gantt Charts
- Gantt described two principles for his charts
- measure activities by the amount of time needed
to complete them - the space on the chart can be used the represent
the amount of the activity that should have been
done in that time.
Gantt charts were employed on major
infrastructure projects including the Hoover Dam
and Interstate highway system and still are an
important tool in project management.
61A Gantt Chart
Figure 6.2
62Example of Gantt Chart Problem
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64CPM/PERT
- Critical Path Method (CPM)
- DuPont Remington-Rand (1956)
- Deterministic task times
- Project Eval. Review Technique (PERT)
- US Navy, Lockheed
- Multiple task time estimates
65PERT/CPM
Program Evaluation and Review Technique (PERT)
developed in conjunction with the development of
the Polaris missile program for submarines
developed by the US Navy with Lockheed as the
lead contractor Critical Path Method (CPM)
developed through a joint venture between the
DuPont Corporation and the Remington Rand
Corporation the original purpose was to monitor
and evaluate plant maintenance management
projects.
66Project Network for a House
Figure 6.4
67Critical Path
- A path is a sequence of connected activities
running from start to end node in network - The critical path is the path with the longest
duration in the network - Project cannot be completed in less than the
time of the critical path
68The Critical Path
- A 1-2-3-4-6-73 2 0 3 1 9 months
- B 1-2-3-4-5-6-73 2 0 1 1 1 8 months
- C 1-2-4-6-73 1 3 1 8 months
- D 1-2-4-5-6-73 1 1 1 1 7 months
69The Critical Path
Activity Start Times
Figure 6.6
70Early Times
- ES - earliest time activity can start
- Forward pass starts at beginning of CPM/PERT
network to determine ES times - EF ES activity time
- ESij maximum (EFi)
- EFij ESij - tij
- ES12 0
- EF12 ES12 - t12 0 3 3 months
Why is this important?
71Late Times
Who Cares? Why is this Important?
- LS - latest time activity can start not delay
project - Backward pass starts at end of CPM/PERT network
to determine LS times - LF LS activity time
- LSij LFij - tij
- LFij minimum (LSj)
72Activity Slack Data
73Activity Slack Data
74Project Crashing
- Crashing is reducing project time by expending
additional resources - Crash time is an amount of time an activity is
reduced - Crash cost is the cost of reducing the activity
time - Goal is to reduce project duration at minimum cost
75Time-Cost Relationship
- Crashing costs increase as project duration
decreases - Indirect costs increase as project duration
increases - Reduce project length as long as crashing costs
are less than indirect costs
76Life Cycle Management
- Long term view of projects to guide decision
making solutions that provide life time success
vice short term - Acquisition development production
introduction sustainment disposal - Links system costs to big picture better use of
resources minimize total cost of ownership
77Whats Next
- Mid Term due in one week
- Chap 9, Chap 12 (Capacity and Aggregate Planning,
Inventory Management) in two weeks