Capacity and Facility layout

Capacity
Maximum capability to produce Capacity planning establishes overall level of productive resources for a firm 3 basic strategies for timing of capacity expansion in relation to steady growth in demand (lead, lag, and average)

Capacity Expansion Strategies

Capacity
Capacity increase depends on
volume and certainty of anticipated demand strategic ob ectives costs of expansion and operation

!est operating level

" of capacity utili#ation that minimi#es unit costs

Capacity cushion (support)

" of capacity held in reserve for unexpected occurrences

Economies of Scale
$nit cost decreases as output volume increases
fixed costs can be spread over a larger number of units production or operating costs do not increase linearly with output levels %uantity discounts are available for material purchases operating efficiency increases as wor&ers gain experience

Best Operating Level for a Hotel

'acility (ayout ((ayout planning)

)b ectives of 'acility (ayout

Minimi#e material*handling costs $tili#e space efficiently $tili#e labor efficiently Eliminate bottlenec&s 'acilitate communication and interaction +educe manufacturing cycle time +educe customer service time Eliminate wasted or redundant movement

)b ectives of 'acility (ayout

'acilitate entry, exit, and placement of material, products, and people -ncorporate safety and security measures .romote product and service %uality Encourage proper maintenance activities .rovide a visual control of activities .rovide flexibility to adapt to changing conditions

!asic (ayouts
.rocess layouts
group similar activities together according to process or function they perform

.roduct layouts
arrange activities in line according to se%uence of operations for a particular product or service

'ixed*position layouts
are used for pro ects in which product cannot be moved

.rocess (ayout in Services

/omen0s formal dresses

Shoes

1ousewares

/omen0s casual dresses

Cosmetics and ewelry

Children0s department

/omen0s sportswear

Entry and display area

Men0s department

Manufacturing .rocess (ayout

2 .roduct (ayout
-n

)ut

Comparison of .roduct and .rocess (ayouts

Product
3escription Sequential arrangement of activities Continuous, mass production, mainly assembly Standardized, made to stock Stable High

Process
Functional grouping of activities Intermittent, batch production, mainly fabrication Varied, made to order Fluctuating Low

4ype of process

.roduct 3emand 5olume

Comparison of .roduct and .rocess (ayouts

Product
-nventory (ow in*process, high finished goods Small Storage space Material handling 'ixed path (conveyor) 2isles(passage) 7arrow (ayout decision (ine balancing E%uali#e wor& at each 6oal station

Process
1igh in*process, low finished goods (arge 5ariable path (for&lift) /ide Machine location Minimi#e material handling cost

'ixed*.osition (ayouts
4ypical of pro ects 'ragile, bul&y, heavy items E%uipment, wor&ers 8 materials brought to site (ow e%uipment utili#ation 1ighly s&illed labor 4ypically low fixed cost )ften high variable costs

3esigning .rocess (ayouts

6oal9 minimi#e material handling costs Block Diagramming
minimi#e nonad acent loads use when %uantitative data is available

Relationship Diagramming
based on location preference between areas use when %uantitative data is not available

!loc& 3iagramming
$nit load
%uantity in which material is normally moved

Steps
create load summary chart calculate composite (two way) movements develop trial layouts minimi#ing number of nonad acent loads

7onad acent load

distance farther than the next bloc&

!loc& 3iagramming9 Example

(oad Summary Chart
: ; 3 '+)M>4) 3E.2+4ME74

3epartment : ; 3 < =

: ? A@

; :@@ ? :@@

3 =@ ;@@ ? =@

< =@ <@ ?

<

=@ A@ ?

!loc& 3iagramming9 Example

; ; : : < 3 ; 3 : :

3 < 3 ; = = = < < =

;@@ loads :=@ loads ::@ loads :@@ loads A@ loads =@ loads =@ loads <@ loads @ loads @ loads

7onad acent (oads ::@B<@C:=@

::@ :@@ :=@ ;@@ =@

;
=@

<
6rid :

A@

=
<@

!loc& 3iagramming9 Example

; ; : : < 3 ; 3 : : 3 < 3 ; = = = < < = ;@@ loads :=@ loads ::@ loads :@@ loads A@ loads =@ loads =@ loads <@ loads @ loads @ loads 7onad acent (oads9 @

100

150

4
40 60

110

200 50

3
Grid 2

50

!loc& 3iagramming9 Example

!loc& 3iagram
type of schematic layout diagramD includes space re%uirements
(a) -nitial bloc& diagram (b) 'inal bloc& diagram

<

<

+elationship 3iagramming
Schematic diagram that uses weighted lines to denote location preference Muther0s grid
format for displaying manager preferences for department locations

+elationship 3iagramming
2 E ) $ E
) 2 $ $ ) ) ) E $ E 2

.roduction )ffices Stoc&room Shipping and receiving (oc&er room 4oolroom

) 2 $

2bsolutely necessary Especially important -mportant )&ay $nimportant $ndesirable

+elationship 3iagramming
(a) +elationship diagram of original layout

)ffices

(oc&er room

Shipping and receiving Fey9 2 E ) $ E

Stoc&room

4oolroom

.roduction

+elationship 3iagramming
(b) +elationship diagram of revised layout

Stoc&room

)ffices

Shipping and receiving

4oolroom

.roduction

(oc&er room

Fey9 2 E ) $ E

3esigning Service (ayouts

Must be both attractive and functional 'ree flow layouts
encourage browsing, increase impulse purchasing, are flexible and visually appealing

6rid layouts
encourage customer familiarity, are low cost, easy to clean and secure, and good for repeat customers

(oop and Spine layouts

both increase customer sightlines and exposure to products, while encouraging customer to circulate through the entire store

4ypes of Store (ayouts

3esigning .roduct (ayouts

)b ective
!alance the assembly line

(ine balancing
tries to e%uali#e the amount of wor& at each wor&station

Cycle time
maximum amount of time a product is allowed to spend at each wor&station

Cycle 4ime Example

Cd = Cd = Cd C
production time available desired units of output (G hours x A@ minutes > hour) (:;@ units) <G@ :;@

C < minutes

'low 4ime vs Cycle 4ime

Cycle time C max time spent at any station 'low time C time to complete all stations

< minutes

< minutes

< minutes

'low time C < B < B < C :; minutes Cycle time C max (<, <, <) C < minutes

Efficiency of (ine and !alance 3elay

Efficiency
j

MinH of wor&stations
j

E C nCa
where

ti
iC:

NC

ti
iC:

Cd

ti j n Ca Cd

C completion time for element i C number of wor& elements C actual number of wor&stations C actual cycle time C desired cycle time
j

!alance delay total idle time of line C nCa *

ti
iC:

(ine !alancing .rocedure

:I ;I 3I <I 3raw and label a precedence diagram Calculate desired cycle time re%uired for line Calculate theoretical minimum number of wor&stations 6roup elements into wor&stations, recogni#ing cycle time and precedence constraints =I Calculate efficiency of line AI 3etermine if theoretical minimum number of wor&stations or an acceptable efficiency level has been reachedI -f not, go bac& to step <I

(ine !alancing
/or& Element 2 ! C 3 .ress out sheet of fruit Cut into strips )utline fun shapes +oll up and pac&age
!

.recedence ? 2 2 !, C @I;

4ime (Min) @I: @I; @I< @I3

@I: 2
C

@I3

@I<

(ine !alancing
/or& Element 2 ! C 3 .ress out sheet of fruit Cut into strips )utline fun shapes +oll up and pac&age <@ hours x A@ minutes > hour A,@@@ units @I: B @I; B @I3 B @I< :I@ C @I< @I< .recedence ? 2 2 !, C ;<@@ A@@@ 4ime (Min) @I: @I; @I< @I3

Cd C

C @I< minute

NC

C ;I= 3 wor&stations

(ine !alancing
/or&station : ; 3 Element 2 ! C 3 @I; @I3 @I:
2 3

+emaining 4ime @I3 @I: @I@ @I:

+emaining Elements !, C C, 3 3 none

Cd C @I< N C ;I=

@I<

(ine !alancing
/or& station : /or& station ; /or& station 3

2, !
@I3 minute

C
@I< minute

3
@I3 minute

Cd C @I< N C ;I=

EC

:I@ @I: B @I; B @I3 B @I< C C @IG33 C G3I3" :I; 3(@I<)

Computeri#ed (ine !alancing

$se heuristics to assign tas&s to wor&stations
(ongest operation time Shortest operation time Most number of following tas&s (east number of following tas&s +an&ed positional weight

1ybrid (ayouts
Cellular layouts
group dissimilar machines into wor& centers (called cells) that process families of parts with similar shapes or processing re%uirements

.roduction flow analysis (.'2)

reorders part routing matrices to identify families of parts with similar processing re%uirements

'lexible manufacturing system

automated machining and material handling systems which can produce an enormous variety of items

Mixed*model assembly line

processes more than one product model in one line

Cellular (ayouts
:I -dentify families of parts with similar flow paths ;I 6roup machines into cells based on part families 3I 2rrange cells so material movement is minimi#ed <I (ocate large shared machines at point of use

.arts 'amilies

2 family of similar parts

2 family of related grocery items

)riginal .rocess (ayout

2ssembly

< = ; :

J G :@

:; ::

+aw materials

.art +outing Matrix

.arts 2 ! C 3 E ' 6 1 : x ; x x x x x x x x x x x x x x x x x 3 Machines < = A J x x x x x x x x G K :@ :: :; x x x x

Figre 5.8

+evised Cellular (ayout

2ssembly G :@ K :; :: < Cell : Cell ; A Cell 3 J ; : 3 =

2 ! C +aw materials

+eordered +outing Matrix

.arts
2 3 ' C 6 ! 1 E

:
x x x

;
x x

<
x x x

Machines G :@ 3
x x x x x x x

::

:;

x x

x x x x x x x

x x x x

Cellular (ayouts
2dvantages
+educed material handling and transit time +educed setup time +educed wor&*in* process inventory !etter use of human resources Easier to control Easier to automate

3isadvantages
-nade%uate part families .oorly balanced cells Expanded training and scheduling of wor&ers -ncreased capital investment

2utomated Manufacturing Cell

'lexible Manufacturing Systems ('MS)

Consists of programmable machine tools automated tool changing automated material handling system controlled by computer networ& Combines flexibility with efficiency (ayouts differ based on variety of parts the system can process si#e of parts processed average processing time re%uired for part completion

'ully*-mplemented 'MS

Mixed Model 2ssembly (ines

.roduce multiple models in any order on one assembly line 'actors in mixed model lines
(ine balancing $*shaped lines 'lexible wor&force Model se%uencing

!alancing $*Shaped (ines

.recedence diagram9 Cycle time C :; min 2 ! C

3 (a) !alanced for a straight line

2,! C,3 E

(b) !alanced for a $*shaped line

2,!

K min Efficiency C

:; min

3 min

;< ;< C C IAAAA C AAIJ " 3(:;) 3A

E

C,3

Efficiency C

;< ;< C C :@@ " ;(:;) ;<

:; min

:; min

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