University of Business & Technology

Engineering College

IE 451
Production Planning and
Control

Dr. Ashraf Hassan

Industrial Engineering Department

Manufacturing Systems
 Type of Operation

1.Job shop production

manufacture of one off part or a small

lot.
Ex: small workshop – health care

Ashraf Hassan Production Planning & Control

Ashraf Hassan Production Planning & Control
 Type of Operation
2. Batch production

produce medium lots of similar items

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 Type of Operation

3. Continuous production

A highly uniform product

Ex: Chemicals, oil products

Ashraf Hassan Production Planning & Control

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 Types of facilities

Ashraf Hassan Production Planning & Control

Operations Management, Eighth Edition, by William J. Stevenson
McGraw-Hill/Irwin Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved.
 Heavy Manufacturing

 plants that are large, require a lot of space,

and are expensive to construct,

 such as automobile plants, steel mills, and

oil refineries.

Ashraf Hassan Production Planning & Control

 Heavy Manufacturing

Factors in the location decision for plants include:

construction costs,
land costs,
modes of transportation for manufactured items and raw
materials
proximity to raw materials, utilities, and labor availability.
Sites for manufacturing plants are normally selected where
construction and land costs can be kept at a minimum and raw
material sources are nearby in order to reduce transportation
costs.
Access to railroads is frequently a factor in locating a plant.

Ashraf Hassan Production Planning & Control

 Light Industry

 electronic equipment, computer products, or

assembled products like TVs; or pharmaceutical
firms.

 Motorola's new $3 billion semiconductor facility in

Virginia, includes twenty campus-like buildings,

 Intel constructed a new $2.2 billion semiconductor

plant in Oregon.

Ashraf Hassan Production Planning & Control

 Light Industry
Factors in the location decision include:

 Land and construction costs tend to be high for these

facilities because they make use of the most advanced
technology.

 They depend on a skilled workforce, so they need to be

located in easily accessible geographic areas with good
education and training capabilities.

 close proximity to raw materials is not a requirement for

light industry,

 a good transportation system for supply and distribution is

required.
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 Warehouses and Distribution Centers

 a warehouse is a used to receive, handle, store, and

then ship products. Light assembly and packaging
may be done in a warehouse

 Retail companies operating on the Internet

sometimes work out of a warehouse-type. For
example, Amazon.com sold books online out of a
group of offices furnished with desks and
computers on the fourth floor of an old building in
Seattle, supplemented by a 46,000 square-foot
warehouse

Ashraf Hassan Production Planning & Control

 Retail and Service

 require the smallest and least costly facilities.

 Examples include retail facilities like groceries,

restaurants, banks, hotels, cleaners, clinics, and law offices.

Factors in the location decision include:

 proximity to customers. It is often critical that a service or

retail facility be near the customers it serves,

 Construction costs tend to be less important, although land

or leasing costs can be high.

Ashraf Hassan Production Planning & Control

The Need for Layout Decisions

Inefficient operations
For Example: Changes in the design
High Cost of products or services
Bottlenecks

Accidents
The introduction of new
products or services

Safety hazards
The Need for Layout Design
(Cont’d)
Changes in
environmental Changes in volume of
or other legal output or mix of
requirements products

Morale problems
Changes in methods
and equipment
Type of plant layouts
 Type of plant layouts
1. Process layout
for large no of products
low volume
By grouping similar equipments
together in separate departments
e.g. machine shops – universities
(separate depts – banks – public
libraries

Ashraf Hassan Production Planning & Control

 process layout in manufacturing
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 Process layout in services (department store)

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  Storage space is large to accommodate the large amount of in-
process inventory.
 The factory may look like a warehouse
 In-process inventory is high because material moves in
batches waiting to be processed.
 Finished goods inventory is low because the goods are being
made for a particular customer and are shipped out to him.
 Process layouts require flexible material handling equipment
(forklifts) that can follow multiple paths, move in any
direction, and carry large loads of in-process goods.

Ashraf Hassan Production Planning & Control

  Scheduling of forklifts varies from day to day
 its routes have to be determined and priorities given to
different loads competing for pickup.
 Process layouts in service firms require large space for
customers to move back and forth and enough display
space to accommodate different customer preferences.
 major concern for a process layout is where to locate
departments in relation to each other.

Ashraf Hassan Production Planning & Control

  Although each job or customer potentially has
a different route through the facility, some
paths will be more common than others.
 Past information on customer orders and
projections of customer orders can be used to
develop patterns of flow through the shop.

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 Advantages
1. Less subject to shutdown caused by mech
failure (idle equipments are available)
2. Maintenance costs are decreased
3. Less investment in spare parts
4. The system can handle a variety of
products
5. General purpose equipments are less
expensive

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 Disadvantages

1. Scheduling must be done every time a

batch comes
2. Inefficient material handling
3. Large in-process inventories
4. Equipment utilization rate is low

Ashraf Hassan Production Planning & Control

 Type of plant layouts
2. Product layout
Equipments are arranged in sequence
Decreased material handling
If a M/C has problems, the entire line
will be affected.
e.g. assembly line

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 Advantages

1. High output rate

2. Low unit cost due to high volume
3. Low material handling cost per unit
4. Routing & scheduling are determined
once at the design stage

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 Disadvantages
1. The system is inflexible in case of design
changes
2. Shutdowns due to equipment breakdowns
3. Preventive maintenance and spare parts
inventory are necessary expenses
4. Boring repetitive work for workers

Ashraf Hassan Production Planning & Control

  The major concern is balancing the assembly
line so that no one workstation becomes a
bottleneck and holds up the flow of work
through the line.
 A product layout needs material moved in one
direction along the assembly line and always
in the same pattern.
 Conveyors are the most common material
handling equipment and can be automatically
set to control the speed of work

Ashraf Hassan Production Planning & Control

  Assembly work can be performed online (i.e.,
on the conveyor) or offline (at a workstation
serviced by the conveyor).
 Spaces are narrow because material is moved
only one way, it is not moved very far, and the
conveyor is an integral part of the assembly
process
 Scheduling of the conveyors, once they are
installed, is simple- the only variable is how
fast they should operate.

Ashraf Hassan Production Planning & Control

  Storage space along an assembly line is
small because in-process inventory is
consumed in the assembly of the product
as it moves down the assembly line.
 Finished goods, however, may require a
separate warehouse for storage before they
are shipped to dealers or stores to be sold.

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1.
 U-shaped layout

1. More compact
2. Increased communications and
team work
3. Flexibility: a worker can handle
adjacent and opposite stations
4. Decreased material handling

Ashraf Hassan Production Planning & Control

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 Type of plant layouts
3.Fixed position layout
The product remains stationary and workers,
materials and equipments are moved about
it.
For large weight products
Used in large construction projects:
buildings, power plants, dams, shipbuilding,
submarines (9000 t) & large aircrafts and
rockets

Ashraf Hassan Production Planning & Control

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  projects in which the product produced is too fragile,
bulky, or heavy to move.
 Ships, houses, and aircraft are examples.
 the product remains stationary for the entire manufacturing
cycle. Equipment, workers, materials, are brought to the
production site.
 Equipment utilization is low because it is often less costly
to leave equipment idle at a location where it will be
needed again in a few days, than to move it back and forth.

Ashraf Hassan Production Planning & Control

  the equipment is leased or subcontracted, because it is used
for limited periods of time.
 The workers called to the work site are highly skilled e.g.
pipefitters may be needed at one stage of production, and
electricians or plumbers at another.
 The wage rate for these workers is much higher than
minimum wage.
 the fixed cost would be low (equipment may not be owned
by the company), whereas the variable costs would be high
(due to high labor rates and the cost of leasing equipment).

Ashraf Hassan Production Planning & Control

THANK YOU VERY MUCH