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© 2008 Prentice Hall, Inc. 9 – 1

Operations ManagementOperations ManagementChapter 9 Chapter 9 ––Layout StrategiesLayout Strategies

PowerPoint presentation to accompanyPowerPoint presentation to accompanyHeizer/Render Heizer/Render Principles of Operations Management, 7ePrinciples of Operations Management, 7eOperations Management, 9e Operations Management, 9e


OutlineOutline

Global Company Profile: Global Company Profile: McDonaldMcDonald’’ssThe Strategic Importance of The Strategic Importance of Layout DecisionsLayout DecisionsTypes of LayoutTypes of LayoutOffice LayoutOffice Layout


Outline Outline –– ContinuedContinuedRetail LayoutRetail Layout

ServicescapesServicescapes

Warehousing and Storage LayoutsWarehousing and Storage LayoutsCrossCross--DockingDockingRandom DockingRandom DockingCustomizingCustomizing

FixedFixed--Position LayoutPosition Layout


Outline Outline –– ContinuedContinued

ProcessProcess--Oriented LayoutOriented LayoutComputer Software for ProcessComputer Software for Process--Oriented LayoutsOriented Layouts

Work CellsWork CellsRequirements of Work CellsRequirements of Work CellsStaffing and Balancing Work CellsStaffing and Balancing Work CellsThe Focused Work Center and the The Focused Work Center and the Focused FactoryFocused Factory


Outline Outline –– ContinuedContinued

Repetitive and ProductRepetitive and Product--Oriented Oriented LayoutLayout

AssemblyAssembly--Line BalancingLine Balancing


Learning ObjectivesLearning ObjectivesWhen you complete this chapter you When you complete this chapter you should be able to:should be able to:

1.1. Discuss important issues in office layoutDiscuss important issues in office layout2.2. Define the objectives of retail layoutDefine the objectives of retail layout3.3. Discuss modern warehouse Discuss modern warehouse

management and terms such as ASRS, management and terms such as ASRS, crosscross--docking, and random stockingdocking, and random stocking

4.4. Identify when fixedIdentify when fixed--position layouts are position layouts are appropriateappropriate


Learning ObjectivesLearning ObjectivesWhen you complete this chapter, you When you complete this chapter, you should be able to:should be able to:

5.5. Explain how to achieve a good processExplain how to achieve a good process--oriented facility layoutoriented facility layout

6.6. Define work cell and the requirements of Define work cell and the requirements of a work cella work cell

7.7. Define productDefine product--oriented layoutoriented layout8.8. Explain how to balance production flow Explain how to balance production flow

in a repetitive or productin a repetitive or product--oriented facilityoriented facility


Innovations at McDonaldInnovations at McDonald’’ss

Indoor seating (1950s)Indoor seating (1950s)DriveDrive--through window (1970s)through window (1970s)Adding breakfast to the menu Adding breakfast to the menu (1980s)(1980s)Adding play areas (late 1980s)Adding play areas (late 1980s)Redesign of the kitchens (1990s)Redesign of the kitchens (1990s)SelfSelf--service kiosk (2004)service kiosk (2004)Now three separate dining sectionsNow three separate dining sections


Innovations at McDonaldInnovations at McDonald’’ss

Indoor seating (1950s)Indoor seating (1950s)DriveDrive--through window (1970s)through window (1970s)Adding breakfast to the menu Adding breakfast to the menu (1980s)(1980s)Adding play areas (late 1980s)Adding play areas (late 1980s)Redesign of the kitchens (1990s)Redesign of the kitchens (1990s)SelfSelf--service kiosk (2004)service kiosk (2004)Now three separate dining sectionsNow three separate dining sections

Six out of the Six out of the seven are seven are

layout layout decisions!decisions!


McDonaldMcDonald’’s New Layouts New Layout

Seventh major innovation Seventh major innovation Redesigning all 30,000 outlets around Redesigning all 30,000 outlets around the worldthe worldThree separate dining areasThree separate dining areas

Linger zone with comfortable chairs and Linger zone with comfortable chairs and WiWi--Fi connectionsFi connectionsGrab and go zone with tall countersGrab and go zone with tall countersFlexible zone for kids and familiesFlexible zone for kids and families

Facility layout is a source of Facility layout is a source of competitive advantagecompetitive advantage


Strategic Importance of Strategic Importance of Layout DecisionsLayout Decisions

The objective of layout strategy The objective of layout strategy is to develop a costis to develop a cost--effective effective layout that will meet a firmlayout that will meet a firm’’s s

competitive needscompetitive needs


Layout Design Layout Design ConsiderationsConsiderations

Higher utilization of space, equipment, Higher utilization of space, equipment, and peopleand peopleImproved flow of information, materials, Improved flow of information, materials, or peopleor peopleImproved employee morale and safer Improved employee morale and safer working conditionsworking conditionsImproved customer/client interactionImproved customer/client interactionFlexibilityFlexibility


Types of LayoutTypes of Layout

1.1. Office layout Office layout 2.2. Retail layout Retail layout 3.3. Warehouse layoutWarehouse layout4.4. FixedFixed--position layoutposition layout5.5. ProcessProcess--oriented layoutoriented layout6.6. WorkWork--cell layout cell layout 7.7. ProductProduct--oriented layoutoriented layout



1.1. Office layout: Positions workers, Office layout: Positions workers, their equipment, and spaces/offices their equipment, and spaces/offices to provide for movement of to provide for movement of informationinformation

2.2. Retail layout: Allocates shelf space Retail layout: Allocates shelf space and responds to customer behavior and responds to customer behavior

3.3. Warehouse layout: Addresses tradeWarehouse layout: Addresses trade--offs between space and material offs between space and material handlinghandling



4.4. FixedFixed--position layout: Addresses the position layout: Addresses the layout requirements of large, bulky layout requirements of large, bulky projects such as ships and buildingsprojects such as ships and buildings

5.5. ProcessProcess--oriented layout: Deals with oriented layout: Deals with lowlow--volume, highvolume, high--variety production variety production (also called job shop or intermittent (also called job shop or intermittent production)production)



6.6. Work cell layout: Arranges Work cell layout: Arranges machinery and equipment to focus machinery and equipment to focus on production of a single product or on production of a single product or group of related productsgroup of related products

7.7. ProductProduct--oriented layout: Seeks the oriented layout: Seeks the best personnel and machine best personnel and machine utilizations in repetitive or utilizations in repetitive or continuous productioncontinuous production


Good Layouts ConsiderGood Layouts Consider

1.1. Material handling equipmentMaterial handling equipment2.2. Capacity and space requirementsCapacity and space requirements3.3. Environment and aestheticsEnvironment and aesthetics4.4. Flows of informationFlows of information5.5. Cost of moving between various Cost of moving between various

work areaswork areas


Layout StrategiesLayout Strategies

Table 9.1Table 9.1

Balance lowBalance low--cost cost storage with lowstorage with low--cost material cost material handlinghandling

Expose customer Expose customer to highto high--margin margin itemsitems

Locate workers Locate workers requiring frequent requiring frequent contact close to contact close to one anotherone another

Problems/IssuesProblems/Issues

FederalFederal--MogulMogul’’sswarehousewarehouse

The GapThe Gap’’ssdistribution centerdistribution center

KrogerKroger’’ssSupermarketSupermarket

WalgreenWalgreen’’ssBloomingdaleBloomingdale’’ss

Allstate InsuranceAllstate InsuranceMicrosoft Corp.Microsoft Corp.

ExamplesExamples

Warehouse Warehouse (storage)(storage)RetailRetailOfficeOffice



Table 9.1Table 9.1

Manage varied material Manage varied material flow for each productflow for each product

Move material to the Move material to the limited storage areas limited storage areas around the sitearound the site


Arnold Palmer HospitalArnold Palmer HospitalHard Rock CafHard Rock CafééOlive GardenOlive Garden

Ingall Ship BuildingIngall Ship BuildingCorp.Corp.

Trump PlazaTrump PlazaPittsburgh AirportPittsburgh Airport

ExamplesExamples

Job Shop Job Shop (process oriented)(process oriented)

Project Project (fixed position)(fixed position)



Table 9.1Table 9.1

Equalize the task time Equalize the task time at each workstationat each workstation

Identify a product Identify a product family, build teams, family, build teams, cross train team cross train team membersmembers


SonySony’’s TV assemblys TV assemblylineline

Toyota ScionToyota Scion

Hallmark CardsHallmark CardsWheeled CoachWheeled CoachStandard AeroStandard Aero

ExamplesExamples

Repetitive/ Continuous Repetitive/ Continuous (product oriented)(product oriented)

Work Cells Work Cells (product families)(product families)


Office LayoutOffice LayoutGrouping of workers, their equipment, Grouping of workers, their equipment, and spaces to provide comfort, and spaces to provide comfort, safety, and movement of informationsafety, and movement of informationMovement of Movement of information is main information is main distinctiondistinctionTypically in state of Typically in state of flux due to frequent flux due to frequent technological technological changeschanges


Relationship ChartRelationship Chart

Figure 9.1Figure 9.1


Supermarket Retail LayoutSupermarket Retail Layout

Objective is to maximize Objective is to maximize profitability per square foot of profitability per square foot of floor spacefloor spaceSales and profitability vary Sales and profitability vary directly with customer exposuredirectly with customer exposure


Five Helpful Ideas for Five Helpful Ideas for Supermarket LayoutSupermarket Layout

1.1. Locate highLocate high--draw items around the draw items around the periphery of the storeperiphery of the store

2.2. Use prominent locations for highUse prominent locations for high--impulse impulse and highand high--margin itemsmargin items

3.3. Distribute power items to both sides of Distribute power items to both sides of an aisle and disperse them to increase an aisle and disperse them to increase viewing of other itemsviewing of other items

4.4. Use endUse end--aisle locationsaisle locations5.5. Convey mission of store through careful Convey mission of store through careful

positioning of leadpositioning of lead--off departmentoff department


Store LayoutStore Layout



Retail SlottingRetail SlottingManufacturers pay fees to retailers Manufacturers pay fees to retailers to get the retailers to display (slot) to get the retailers to display (slot) their producttheir productContributing factorsContributing factors

Limited shelf spaceLimited shelf spaceAn increasing number of new An increasing number of new productsproductsBetter information about sales Better information about sales through POS data collectionthrough POS data collectionCloser control of inventoryCloser control of inventory


Retail Store Shelf Space Retail Store Shelf Space PlanogramPlanogram

Computerized Computerized tool for shelftool for shelf--space space managementmanagementGenerated from Generated from storestore’’s scanner s scanner data on salesdata on salesOften supplied Often supplied by manufacturerby manufacturer

5 facings5 facings

Shampoo

Shampoo

Shampoo

Shampoo

Shampoo

Conditioner

Conditioner

Shampoo

Shampoo

Shampoo

Shampoo

Conditioner

2 ft.2 ft.


ServicescapesServicescapesAmbient conditions Ambient conditions -- background background characteristics such as lighting, sound, characteristics such as lighting, sound, smell, and temperaturesmell, and temperatureSpatial layout and functionality Spatial layout and functionality -- which which involve customer involve customer circulation path planning, circulation path planning, aisle characteristics, and aisle characteristics, and product groupingproduct groupingSigns, symbols, and Signs, symbols, and artifacts artifacts -- characteristics characteristics of building design that of building design that carry social significancecarry social significance


Warehousing and Storage Warehousing and Storage LayoutsLayouts

Objective is to optimize tradeObjective is to optimize trade--offs offs between handling costs and costs between handling costs and costs associated with warehouse spaceassociated with warehouse spaceMaximize the total Maximize the total ““cubecube”” of the of the warehouse warehouse –– utilize its full volume utilize its full volume while maintaining low material while maintaining low material handling costshandling costs



All costs associated with the transactionAll costs associated with the transactionIncoming transportIncoming transportStorageStorageFinding and moving materialFinding and moving materialOutgoing transportOutgoing transportEquipment, people, material, supervision, Equipment, people, material, supervision, insurance, depreciationinsurance, depreciation

Minimize damage and spoilageMinimize damage and spoilage

Material Handling CostsMaterial Handling Costs



Warehouse density tends to vary Warehouse density tends to vary inversely with the number of different inversely with the number of different items storeditems storedAutomated Storage and Automated Storage and Retrieval Systems (ASRSs) Retrieval Systems (ASRSs) can significantly improve can significantly improve warehouse productivity by warehouse productivity by an estimated 500%an estimated 500%Dock location is a key Dock location is a key design elementdesign element


CrossCross--DockingDockingMaterials are moved directly from Materials are moved directly from receiving to shipping and are not receiving to shipping and are not placed in storage placed in storage in the warehousein the warehouseRequires tight Requires tight scheduling and scheduling and accurate shipments, accurate shipments, bar code or RFIDbar code or RFIDidentification used foridentification used foradvanced shipmentadvanced shipmentnotification as materialsnotification as materialsare unloadedare unloaded


Random StockingRandom StockingTypically requires automatic identification Typically requires automatic identification systems (AISs) and effective information systems (AISs) and effective information systemssystemsRandom assignment of stocking locations Random assignment of stocking locations allows more efficient use of spaceallows more efficient use of spaceKey tasksKey tasks

1.1. Maintain list of open locationsMaintain list of open locations2.2. Maintain accurate recordsMaintain accurate records3.3. Sequence items to minimize travel, pick timeSequence items to minimize travel, pick time4.4. Combine picking ordersCombine picking orders5.5. Assign classes of items to particular areasAssign classes of items to particular areas


CustomizingCustomizing

ValueValue--added activities performed at added activities performed at the warehousethe warehouseEnable low cost and rapid response Enable low cost and rapid response strategiesstrategies

Assembly of componentsAssembly of componentsLoading softwareLoading softwareRepairsRepairsCustomized labeling and packagingCustomized labeling and packaging


Shipping and receiving docks

Office

Cus

tom

izat

ion

Conveyor

Storage racks

Staging

Warehouse LayoutWarehouse LayoutTraditional LayoutTraditional Layout


Warehouse LayoutWarehouse LayoutCrossCross--Docking LayoutDocking Layout


Offi

ce



FixedFixed--Position LayoutPosition LayoutProduct remains in one place Product remains in one place Workers and equipment come to siteWorkers and equipment come to siteComplicating factorsComplicating factors

Limited space at siteLimited space at siteDifferent materials Different materials required at different required at different stages of the projectstages of the projectVolume of materials Volume of materials needed is dynamicneeded is dynamic


Alternative StrategyAlternative StrategyAs much of the project as possible As much of the project as possible is completed offis completed off--site in a productsite in a product--oriented facilityoriented facilityThis can This can significantly significantly improve efficiency improve efficiency but is only but is only possible when possible when multiple similar multiple similar units need to be createdunits need to be created


ProcessProcess--Oriented LayoutOriented Layout

Like machines and equipment are Like machines and equipment are grouped togethergrouped togetherFlexible and capable of handling a Flexible and capable of handling a wide variety of products or wide variety of products or servicesservicesScheduling can be difficult and Scheduling can be difficult and setup, material handling, and labor setup, material handling, and labor costs can be highcosts can be high


Surgery

Radiology

ER triage room

ER Beds Pharmacy

Emergency room admissions

Billing/exit

Laboratories


Patient A - broken leg

Patient B - erratic heart pacemaker



Layout at Arnold Palmer HospitalLayout at Arnold Palmer Hospital

Central break Central break and medical and medical

supply roomssupply rooms

Local linen Local linen supplysupply

Local Local nursing podnursing pod

PiePie--shaped shaped roomsrooms

Central nurses Central nurses stationstation



Arrange work centers so as to Arrange work centers so as to minimize the costs of material minimize the costs of material handlinghandlingBasic cost elements areBasic cost elements are

Number of loads (or people) moving Number of loads (or people) moving between centersbetween centersDistance loads (or people) move Distance loads (or people) move between centersbetween centers



Minimize cost = Minimize cost = ∑∑ ∑∑ XXijij CCijij

nn

i i = 1= 1

nn

j j = 1= 1

wherewhere nn == total number of work centers or total number of work centers or departmentsdepartments

i, ji, j == individual departmentsindividual departmentsXXijij == number of loads moved from number of loads moved from

department i to department jdepartment i to department jCCijij == cost to move a load between cost to move a load between

department i and department jdepartment i and department j


Process Layout ExampleProcess Layout Example

1.1. Construct a Construct a ““fromfrom--to matrixto matrix””2.2. Determine the space requirementsDetermine the space requirements3.3. Develop an initial schematic diagramDevelop an initial schematic diagram4.4. Determine the cost of this layout Determine the cost of this layout 5.5. Try to improve the layoutTry to improve the layout6.6. Prepare a detailed plan Prepare a detailed plan

Arrange six departments in a factory to Arrange six departments in a factory to minimize the material handling costs. minimize the material handling costs. Each department is 20 x 20 feet and the Each department is 20 x 20 feet and the building is 60 feet long and 40 feet wide.building is 60 feet long and 40 feet wide.


DepartmentDepartment AssemblyAssembly PaintingPainting MachineMachine ReceivingReceiving ShippingShipping TestingTesting(1)(1) (2)(2) Shop (3)Shop (3) (4)(4) (5)(5) (6)(6)

Assembly (1)Assembly (1)

Painting (2)Painting (2)

Machine Shop (3)Machine Shop (3)

Receiving (4)Receiving (4)

Shipping (5)Shipping (5)

Testing (6)Testing (6)

Number of loads per weekNumber of loads per week

50 100 0 0 20

30 50 10 0

20 0 100

50 0

0




Area 1Area 1 Area 2Area 2 Area 3Area 3

Area 4Area 4 Area 5Area 5 Area 6Area 66060’’

4040’’


Receiving Shipping TestingDepartment Department Department

(4) (5) (6)


Assembly Painting Machine ShopDepartment Department Department

(1) (2) (3)


100100

5050

2020

5050

5050

20201010

100100

3030

Process Layout ExampleProcess Layout ExampleInterdepartmental Flow GraphInterdepartmental Flow Graph

1 2 3

4 5 6




Cost Cost == $50$50 ++ $200$200 ++ $40$40(1 and 2)(1 and 2) (1 and 3)(1 and 3) (1 and 6)(1 and 6)

++ $30$30 ++ $50$50 ++ $10$10(2 and 3)(2 and 3) (2 and 4)(2 and 4) (2 and 5)(2 and 5)


= $570= $570

Cost = Cost = ∑∑ ∑∑ XXijij CCijij

nn

i i = 1= 1

nn

j j = 1= 1



3030

5050

1010

5050

505020205050 100100

100100

Revised Interdepartmental Flow GraphRevised Interdepartmental Flow Graph

2 1 3

4 5 6




Cost Cost == $50$50 ++ $100$100 ++ $20$20(1 and 2)(1 and 2) (1 and 3)(1 and 3) (1 and 6)(1 and 6)



= $480= $480

Cost = Cost = ∑∑ ∑∑ XXijij CCijij

nn

i i = 1= 1

nn

j j = 1= 1


Area 1Area 1 Area 2Area 2 Area 3Area 3

Area 4Area 4 Area 5Area 5 Area 6Area 66060’’

4040’’


Receiving Shipping TestingDepartment Department Department

(4) (5) (6)


Painting Assembly Machine ShopDepartment Department Department

(2) (1) (3)


Computer SoftwareComputer SoftwareGraphical approach only works for Graphical approach only works for small problemssmall problemsComputer programs are available to Computer programs are available to solve bigger problemssolve bigger problems

CRAFTCRAFTALDEPALDEPCORELAPCORELAP

Factory FlowFactory Flow


CRAFT ExampleCRAFT Example11 22 33 44 55 66

11 A A A A B B

22 A A A A B B

33 D D D D D D

44 C C D D D D

55 F F F F F D

66 E E E E E D

PATTERNPATTERN

TOTAL COST 20,100TOTAL COST 20,100EST. COST REDUCTION .00EST. COST REDUCTION .00ITERATION 0ITERATION 0

(a)(a)

11 22 33 44 55 66

11 D D D D B B

22 D D D D B B

33 D D D E E E

44 C C D E E F

55 A A A A A F

66 A A A F F F

PATTERNPATTERN

TOTAL COST 14,390TOTAL COST 14,390EST. COST REDUCTION 70.EST. COST REDUCTION 70.ITERATION 3ITERATION 3

(b)(b) Figure 9.9Figure 9.9


Computer SoftwareComputer SoftwareThree dimensional visualization Three dimensional visualization software allows managers to view software allows managers to view possible layouts and assess process, possible layouts and assess process, material material handling, handling, efficiency, efficiency, and safety and safety issuesissues


Work CellsWork CellsReorganizes people and machines Reorganizes people and machines into groups to focus on single into groups to focus on single products or product groupsproducts or product groupsGroup technology identifies Group technology identifies products that have similar products that have similar characteristics for particular cellscharacteristics for particular cellsVolume must justify cellsVolume must justify cellsCells can be reconfigured as Cells can be reconfigured as designs or volume changesdesigns or volume changes


Advantages of Work CellsAdvantages of Work Cells1.1. Reduced workReduced work--inin--process inventoryprocess inventory2.2. Less floor space requiredLess floor space required3.3. Reduced raw material and finished Reduced raw material and finished

goods inventorygoods inventory4.4. Reduced direct laborReduced direct labor5.5. Heightened sense of employee Heightened sense of employee

participationparticipation6.6. Increased use of equipment and Increased use of equipment and

machinerymachinery7.7. Reduced investment in machinery Reduced investment in machinery

and equipmentand equipment


Improving Layouts Using Improving Layouts Using Work CellsWork Cells

Current layout Current layout -- workers workers in small closed areas. in small closed areas. Cannot increase output Cannot increase output without a third worker and without a third worker and third set of equipment.third set of equipment. Improved layout Improved layout -- crosscross--trained trained

workers can assist each other. workers can assist each other. May be able to add a third worker May be able to add a third worker as additional output is needed.as additional output is needed.

Figure 9.10 (a)Figure 9.10 (a)


Improving Layouts Using Improving Layouts Using Work CellsWork Cells

Current layout Current layout -- straight straight lines make it hard to balance lines make it hard to balance tasks because work may not tasks because work may not be divided evenlybe divided evenly

Improved layout Improved layout -- in U in U shape, workers have better shape, workers have better access. Four crossaccess. Four cross--trained trained workers were reduced.workers were reduced.

Figure 9.10 (b)Figure 9.10 (b)

U-shaped line may reduce employee movement and space requirements while enhancing communication, reducing the number of workers, and facilitating inspection


Requirements of Work CellsRequirements of Work Cells

1.1. Identification of families of productsIdentification of families of products2.2. A high level of training, flexibility A high level of training, flexibility

and empowerment of employeesand empowerment of employees3.3. Being selfBeing self--contained, with its own contained, with its own

equipment and resourcesequipment and resources4.4. Test (pokaTest (poka--yoke) at each station in yoke) at each station in

the cellthe cell


Staffing and Balancing Staffing and Balancing Work CellsWork Cells

Determine the takt timeDetermine the takt time

Takt time =Takt time = Total work time availableTotal work time availableUnits requiredUnits required

Determine the number Determine the number of operators requiredof operators required

Workers required =Workers required =Total operation time requiredTotal operation time required

Takt timeTakt time


Staffing Work Cells Staffing Work Cells ExampleExample

600 600 Mirrors per day requiredMirrors per day requiredMirror production scheduled for Mirror production scheduled for 88 hours per dayhours per dayFrom a work balance chart From a work balance chart

total operation time total operation time = 140= 140 secondsseconds

Stan

dard

tim

e re

quire

dSt

anda

rd ti

me

requ

ired

OperationsOperationsAssembleAssemble PaintPaint TestTest LabelLabel Pack forPack for

shipmentshipment

6060

5050

4040

3030

2020

1010

00


Staffing Work Cells Staffing Work Cells ExampleExample

600 600 Mirrors per day requiredMirrors per day requiredMirror production scheduled for Mirror production scheduled for 88 hours per dayhours per dayFrom a work balance chart From a work balance chart

total operation time total operation time = 140= 140 secondsseconds

Takt timeTakt time = = (8(8 hrs hrs x 60x 60 minsmins) / 600) / 600 units units = .8= .8 mins mins = 48= 48 secondsseconds

Workers requiredWorkers required ==Total operation time requiredTotal operation time required

Takt timeTakt time= 140 / 48 = 2.91= 140 / 48 = 2.91


Work Balance ChartsWork Balance Charts

Used for evaluating operation Used for evaluating operation times in work cellstimes in work cellsCan help identify bottleneck Can help identify bottleneck operationsoperationsFlexible, crossFlexible, cross--trained employees trained employees can help address labor bottleneckscan help address labor bottlenecksMachine bottlenecks may require Machine bottlenecks may require other approachesother approaches


Focused Work Center and Focused Work Center and Focused FactoryFocused Factory

Focused Work CenterFocused Work CenterIdentify a large family of similar products Identify a large family of similar products that have a large and stable demandthat have a large and stable demandMoves production from a generalMoves production from a general--purpose, purpose, processprocess--oriented facility to a large work celloriented facility to a large work cell

Focused FactoryFocused FactoryA focused work cell in a separate facilityA focused work cell in a separate facilityMay be focused by product line, layout, May be focused by product line, layout, quality, new product introduction, flexibility, quality, new product introduction, flexibility, or other requirementsor other requirements


Focused Work Center and Focused Work Center and Focused FactoryFocused Factory

Table 9.2Table 9.2

Example: A plant to Example: A plant to produce window produce window mechanism for mechanism for automobiles.automobiles.

Example: Pipe bracket Example: Pipe bracket manufacturing at a manufacturing at a shipyard.shipyard.

Example: A job shop Example: A job shop with machinery and with machinery and personnel rearranged personnel rearranged to produce 300 unique to produce 300 unique control panels.control panels.

A focused factory is a A focused factory is a permanent facility to permanent facility to produce a product or produce a product or component in a component in a productproduct--oriented oriented facility. Many focused facility. Many focused factories currently factories currently being built were being built were originally part of a originally part of a processprocess--oriented oriented facility.facility.

A focused work center is A focused work center is a permanent producta permanent product--oriented arrangement oriented arrangement of machines and of machines and personnel in what is personnel in what is ordinarily a processordinarily a process--oriented facility.oriented facility.

A work cell is a A work cell is a temporary producttemporary product--oriented arrangement oriented arrangement of machines and of machines and personnel in what is personnel in what is ordinarily a processordinarily a process--oriented facility.oriented facility.

Focused FactoryFocused FactoryFocused Work CenterFocused Work CenterWork CellWork Cell


Repetitive and ProductRepetitive and Product--Oriented LayoutOriented Layout

1.1. Volume is adequate for high equipment Volume is adequate for high equipment utilizationutilization

2.2. Product demand is stable enough to justify high Product demand is stable enough to justify high investment in specialized equipmentinvestment in specialized equipment

3.3. Product is standardized or approaching a phase Product is standardized or approaching a phase of life cycle that justifies investment of life cycle that justifies investment

4.4. Supplies of raw materials and components are Supplies of raw materials and components are adequate and of uniform qualityadequate and of uniform quality

Organized around products or families of Organized around products or families of similar highsimilar high--volume, lowvolume, low--variety productsvariety products


ProductProduct--Oriented LayoutsOriented LayoutsFabrication lineFabrication line

Builds components on a series of machinesBuilds components on a series of machinesMachineMachine--pacedpacedRequire mechanical or engineering changes Require mechanical or engineering changes to balanceto balance

Assembly lineAssembly linePuts fabricated parts together at a series of Puts fabricated parts together at a series of workstationsworkstationsPaced by work tasksPaced by work tasksBalanced by moving tasksBalanced by moving tasks

Both types of lines must be balanced so that the Both types of lines must be balanced so that the time to perform the work at each station is the sametime to perform the work at each station is the same


ProductProduct--Oriented LayoutsOriented Layouts

1.1. Low variable cost per unitLow variable cost per unit2.2. Low material handling costsLow material handling costs3.3. Reduced workReduced work--inin--process inventoriesprocess inventories4.4. Easier training and supervisionEasier training and supervision5.5. Rapid throughputRapid throughput

AdvantagesAdvantages

1.1. High volume is requiredHigh volume is required2.2. Work stoppage at any point ties up the Work stoppage at any point ties up the

whole operationwhole operation3.3. Lack of flexibility in product or production Lack of flexibility in product or production

ratesrates

DisadvantagesDisadvantages


McDonaldMcDonald’’s Assembly Lines Assembly Line



Disassembly LinesDisassembly Lines

•• Disassembly is being considered in Disassembly is being considered in new product designsnew product designs

•• ““GreenGreen”” issues and recycling issues and recycling standards are important considerationstandards are important consideration

•• Automotive Automotive disassembly is disassembly is the 16the 16thth largest largest industry in industry in the USthe US


AssemblyAssembly--Line BalancingLine BalancingObjective is to minimize the imbalance Objective is to minimize the imbalance between machines or personnel while between machines or personnel while meeting required outputmeeting required outputStarts with the precedence Starts with the precedence relationshipsrelationships

1.1. Determine cycle timeDetermine cycle time2.2. Calculate theoretical Calculate theoretical

minimum number of minimum number of workstationsworkstations

3.3. Balance the line by Balance the line by assigning specific assigning specific tasks to workstationstasks to workstations


Wing Component ExampleWing Component Example

This means that This means that tasks B and E tasks B and E cannot be done cannot be done until task A has until task A has been completedbeen completed

PerformancePerformance Task Must FollowTask Must FollowTimeTime Task ListedTask Listed

TaskTask (minutes)(minutes) BelowBelowAA 1010 ——BB 1111 AACC 55 BBDD 44 BBEE 1212 AAFF 33 C, DC, DGG 77 FFHH 1111 EEII 33 G, HG, HTotal time Total time 6666


Wing Component ExampleWing Component ExamplePerformancePerformance Task Must FollowTask Must Follow

TimeTime Task ListedTask ListedTaskTask (minutes)(minutes) BelowBelow

AA 1010 ——BB 1111 AACC 55 BBDD 44 BBEE 1212 AAFF 33 C, DC, DGG 77 FFHH 1111 EEII 33 G, HG, HTotal time Total time 6666 I

GF

C

D

H

B

E

A10

1112

5

4 3

711 3

Figure 9.13


I

GF

C

D

H

B

E

A10

1112

5

4 3

711 3

Figure 9.13



Wing Component ExampleWing Component Example480 available

mins per day40 units required

Cycle time =Production time available per day

Units required per day= 480 / 40= 12 minutes per unit

Minimum number of

workstations=

∑ Time for task i

Cycle time

n

i = 1

= 66 / 12= 5.5 or 6 stations



I

GF

C

D

H

B

E

A10

1112

5

4 3

711 3

Figure 9.13



480 available mins per day

40 units requiredCycle time = 12 mins

Minimum workstations = 5.5 or 6

Line-Balancing Heuristics

Choose the available task with the least number of following tasks

5. Least number of following tasks

Choose the available task with the shortest task time

4. Shortest task time

Choose the available task for which the sum of following task times is the longest

3. Ranked positional weight

Choose the available task with the largest number of following tasks

2. Most following tasks

Choose the available task with the longest task time

1. Longest task time

Table 9.4


480 available mins per day

40 units requiredCycle time = 12 mins

Minimum workstations = 5.5 or 6




I

GF

H

C

D

B

E

A10 11

12

5

4

3 7

11

3

Station 1

Station 2

Station 4

Station 5

Station 3

Station 6

Figure 9.14




Wing Component ExampleWing Component Example480 available

mins per day40 units required

Cycle time = 12 minsMinimum

workstations = 5.5 or 6

Efficiency =∑ Task times

(Actual number of workstations) x (Largest cycle time)

= 66 minutes / (6 stations) x (12 minutes)= 91.7%

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