capacity and facility

8/12/2019 Capacity and Facility

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Capacity and Facility layout


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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 indemand ( lead, lag, and average )


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Capacity Expansion Strategies


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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


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Economies of Scale

$nit cost decreases as output volume increases fixed costs can be spread over a larger number ofunits

production or operating costs do not increase linearlywith output levels

%uantity discounts are available for materialpurchases

operating efficiency increases as wor&ers gainexperience


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Best Operating Level for a Hotel


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'acility ayout( ayout planning)


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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


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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


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!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


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.rocess ayout in Services

/omen0sformal dresses

/omen0s casualdresses

/omen0ssportswear

Shoes

Cosmetics and ewelry

Entry and displayarea

1ousewares

Children0sdepartment

Men0sdepartment


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Manufacturing .rocess ayout


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2 .roduct ayout

-n

ut


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escription

4ype of process

.roduct

emand

5olume

Sequentialarrangement ofactivitiesContinuous, massproduction, mainlyassembly

Standardized,

made to stockStable

High

ProcessFunctionalgrouping ofactivitiesIntermittent, batchproduction, mainlyfabrication

Varied, made to

orderFluctuating

Low

Product

Comparison of .roductand .rocess ayouts


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-nventory

Storage space Material handling 2isles(passage) ayout decision 6oal

ow in*process, highfinished goodsSmall'ixed path (conveyor)7arrow

ine balancingE%uali#e wor& at each

station

Process

1igh in*process, lowfinished goods

arge5ariable path (for&lift)/ideMachine locationMinimi#e material

handling cost

Product

Comparison of .roductand .rocess ayouts


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'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


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esigning .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


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!loc& iagramming

$nit load %uantity in whichmaterial is normallymoved

7onad acent load distance farther

than the next bloc&

Steps create load summary chart calculate composite (two

way) movements

develop trial layoutsminimi#ing number ofnonad acent loads


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!loc& iagramming9 Example

epartment : ; 3 < =

oad Summary Chart'+ M>4 E.2+4ME74

: ? :@@ =@; ? ;@@ =@3 A@ ?


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; 3 ;@@ loads; < :=@ loads: 3 ::@ loads: ; :@@ loads< = A@ loads

3 = =@ loads; = =@ loads3 <


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; 3 ;@@ loads; < :=@ loads: 3 ::@ loads: ; :@@ loads< = A@ loads3 = =@ loads

; = =@ loads3 <


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!loc& iagram type of schematic layout diagramD includes space re%uirements

:;

3

hour)

(:;@ units)

Cd < minutes


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'low 4ime vs Cycle 4ime

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

: ; 3

< minutes < minutes < minutes

'low time < B < B < :; minutesCycle time max (


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ine !alancing .rocedure

:I raw and label a precedence diagram;I Calculate desired cycle time re%uired for line3I Calculate theoretical minimum number of wor&stations


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ine !alancing

@I:

@I;

@I

capacity and facility

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