fundamental principles of facility loca

7/28/2019 Fundamental Principles of Facility Loca

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CHAPTER 1CHAPTER 1

Fundamental PrinciplesFundamental Principles

oof Facilities Planning and Designf Facilities Planning and Design

FACILITIES PLANNING & DESIGN

Alberto Garcia-Diaz

J. MacGregor Smith

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DefinitionsDefinitions

SignificanceSignificance

ObjectivesObjectives

Scientific MethodScientific Method

Types of Math Models in Facilities PlanningTypes of Math Models in Facilities Planning

Facilities Planning ProcessFacilities Planning Process

Manufacturing ConceptsManufacturing Concepts

Types of Factory LayoutsTypes of Factory Layouts

BreakBreak--Even Point AnalysisEven Point Analysis

ManufacturingManufacturing ProcessesProcesses


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FacilityFacilitySomething created to serve a particular function

Placement of a facility in such a way that it will satisfyspecified requirements concerning customers, suppliers,

and other facilities with which it interacts

ComponentsComponents

1. Structure (building and services)

2. Layout (equipment, machinery, furnishings)3. Handling system (mechanism for interactions in the layout)

DefinitionsDefinitions

LocationLocation

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Facility PlanningFacility Planning

Facilities location (where?)

Facilities design (what & how?)

Structural design

Layout design Handling system design

Layout DesignLayout Design

1. Facility layout

2. Plant layout (emphasis on factory layout)

Facilities DesignFacilities Design


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Plant LayoutPlant Layout embraces the physicalarrangement of industrial facilities.This arrangement (ether installed orplanned) includes thespace needed for:

1. Operating equipment and personnel

2. Material movement3. Storage4. Indirect laborers5. Supporting activities or services

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Significance of Facilities PlanningSignificance of Facilities PlanningTable 1.1

Industry PercentageIndustry Percentage GNPGNP

Manufacturing 3.2Mining 0.2

Railroad 0.2Air and other transportation 0.3

Public utilities 1.6Communications 1.0Commercial and other 1.5

All industry (total) 8.0


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Objectives of Facilities PlanningObjectives of Facilities Planning

Objectives of FacilitiesLocation

Objectives of FacilitiesDesign

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Objectives of Facilities LocationObjectives of Facilities Location

Objectives of Facilities DesignObjectives of Facilities Design

Minimize components ofdeliver-to-

customer costs that depend onlocation

Flexibility Capital Minimization Material Handling Integration Safety & Workers Satisfaction


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OPERATIONS RESEARCH APPROACHOPERATIONS RESEARCH APPROACH

FUNDAMENTAL STEPSFUNDAMENTAL STEPS

Problem Definition

System Identification

Model Formulation

Solution Procedure

Solution Validation

Implementation

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TYPES OF MATH MODELS IN F.P.TYPES OF MATH MODELS IN F.P.

Location & Allocation

Warehouse layout

Conveyor

Storage


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O.R.O.R. E.D.E.D. F.P.F.P.

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Engineering DesignEngineering Design

Define problem Analyze Generate alternatives Evaluate Select plan Implement


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Facilities Planning ProcessFacilities Planning Process

Define objectives Identify primary & support activities Determine interaction between activities Determine space requirements Generate alternative facilities plans Evaluate alternatives Select plan Implement Maintain & adapt

Redefine objectives of the facility

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Manufacturing Systems ConceptsManufacturing Systems Concepts

Product Design

Process Planning

Production Operations

Material HandlingMaterial Handling

Facilities LayoutFacilities Layout

Production Planning & Control


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PD

Function

LooksEnvironmentCostReliabilityQuality

PP

Specification

of operationalsequences

MO

Forming

Treating

Assembly

MH

Trucks

ConveyorsCranesAccessories

FL

Fixed Position

ProductProcessCellular

PPC

When?How much?

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1. The fixed-position layout is a layout where the material ormajor component remains in a fixed place to which tools,machinery, men and other pieces of material are brought.

2. The product layout (or production line) places one operationimmediately adjacent to the next; the equipment needed isarranged according to the operational sequence.

3. In the process layout all operations of same process or type aregrouped together; equipment performing a common function isgrouped together.

4. The cellular layout is based on the grouping of parts to formfamilies based on common machining requirements (and otheraspects, such as shapes, material composition, toolingrequirements, etc.).

Types of LayoutsTypes of Layouts


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FixedFixed--Position:Position: material or major component

remains in a fixed location

Product (production line):Product (production line): low number of part

types and high production volume

Cellular (group technology):Cellular (group technology): medium numberof part types and medium production

volume

Process (jobProcess (job--shop):shop): high number of part types

and low production volume

See Figures 1.10See Figures 1.10--1.13, textbook, pp. 181.13, textbook, pp. 18--2020

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Machine A

Tool B

Operator

Completed Part

Raw Material

Layout by Fixed PositionLayout by Fixed Position


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Completed Part

Raw Material

Layout by ProcessLayout by Process

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Completed Part

Raw Material

Layout by ProductLayout by Product


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Group TechnologyGroup Technology

Cell 1Cell 1 Cell 2Cell 2 Cell 3Cell 3

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Total Cost $

Production Volume

Revenue

Product Layout

Process Layout

BreakBreak--Even Point AnalysisEven Point Analysis


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As an illustration, let $1,800,000 and $1,200,000 be the fixed cost for theproduction and process layouts, respectively. Similarly, let $220 and $300be the variable costs for the two layouts, respectively. Assume that theselling price per unit is equal to $380.

(a) Find the level of production at which the two layouts are identicalfrom a cost point of view.

(F + vQ)product = (F + vQ)process

Q = 600,000/80 = 7,500

(b) For each layout find the level of production at which the production ofthe item starts being profitable.

Qproduct = 1,800,000/(380-220) = 11,250

Qprocess = 1,200,000/((380-300) = 15,000

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Manufacturing ProcessesManufacturing Processes

Processes for changing the shape ofmaterial

Processes for machining parts to a fixeddimension

Processes for obtaining a surface finish Processes for changing physical properties Plastic processing

fundamental principles of facility loca

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