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IENG 471 - Lecture 02

Strategic Facilities Planning

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Potential Projects

CICMHE Competition 5 weeks, Distribution Center, TBA

Reconfigurable MIL Lab/SIFE Production Center It’s a lab, no – it’s a class room, no – it’s a production facility

SDSM&T Recreation Center If you’re gonna pay for it, why not have some suggestions?

Brownfield Sand Casting Job Shop If I’m gonna pay for it, why not have some suggestions?

Others?

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Assignments

Current Assignment: HW: 1 – Planned Facility Measures (teams of 2 – 3)

Sketch Up Dr. Strangeglove’s Facility 5+ Criteria with 5 Quantitative Measures 5+ Items/things that should be housed Turn in one document per team

Next Assignment: HW: 2 – Product Definition (teams of 2 – 3)

Reverse engineer a product, and … Create the Indented BOM and cost roll-up Create the OPC Create the Precedence Diagram Turn in one document per team

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Facilities Planning

Determines how an activity’s tangible, fixed assets should contribute to meeting the activity’s objectives (Boozer, White, et al., p. 26, 3rd Ed.)

Consists of facility location and facility design Part art, part science – (engineering!) Approach using the engineering design process Continuous process with life cycle(s) Represents a very significant opportunity for cost

reduction and productivity improvement

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Strategic Planning

Defn: The art and science of employing resources to achieve an objective High level of planning:

Identify a process to obtain an objective Identify and utilize resources (physical aspects) Identify and execute processes (time aspects) Identify and coordinate methods (control aspects)

Longer term (Strategic) vs. shorter term (Tactical) Plan a trip from Rapid City SD to Chicago IL– (map?)

Resources Timing Control Strategic and Tactical relationship

Objective of strategic plan doesn’t change!

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Strategic Planning

Applied to Facilities Planning: Requires an understanding of feasibilities:

Marketing Product development Manufacturing / Processing Production / Inventory control Human resources Finance

Impacts the performance of each, too Concurrent design process seems best Facilities planning occurs simultaneously

Evolving requirements Multiple alternatives Design iterations probable

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Issues Impacting a Strategic Facilities Plan:

Number, location, sizes of warehouse/distribution centers Centralized vs. decentralized storage / manufacturing Acquire existing (brownfield) vs. build new (greenfield) Flexibility required for marketing & technology Interfacing storage and manufacturing Level of vertical integration Control of materials and equipment Distributed processing levels Inbound and outbound material movement Technology changes for suppliers, firm, customers Financial goals for the design of the facility

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Steps in Engineering Design

Ideal Sequence:1. Defining the Problem2. Gathering Pertinent Information3. Generating Multiple Solutions4. Analyzing and Selecting a Solution5. Testing and Implementing the Solution

Actual process is iterative… Frequently back-track to a previous stage

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Facilities Planning Process Steps

Defining the Problem1. Define the products to be manufactured /

processed Gathering Pertinent Information

2. Specify the manufacturing / processing & related activities

3. Determine activity interrelationships

4. Determine activity space requirements

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Facilities Planning Process Steps

Generating Multiple Solutions5. Generate alternative facilities plans

Analyzing and Selecting a Solution6. Evaluate the alternative plans7. Select the preferred facilities plan

Testing and Implementing the Solution

8. Implement the facilities plan9. Maintain and update the facilities plan

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Facilities Planning Process Steps

Frequently back-track to a previous stage

10. Update the products and redefine the objective of the facility

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Data for Strategic Facility Design

1. What is to be produced?

2. How are the products to be produced?

3. When are the products to be produced?

4. How much of the product is to be produced?

5. How long will the product be produced?

6. Where are the products to be produced?

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Example Data for Strategic Facility Design

1. What is to be produced? 1/16 scale models of new and old tractors

2. How are the products to be produced? Die & sand casting, trimming/drilling, painting, assembling, direct

shipping

3. When are the products to be produced? Within 1/2 month prior to introduction, and 2 months after order

4. How much of the product is to be produced? Batch production runs of 100 to 1000, ~ 8 new & 20 total

models/yr

5. How long will the product be produced? 2 – 3 yrs/model, product lifecycle of 15 – 30 yrs, facility life >50 yrs

6. Where are the products to be produced? Small, rural Iowa town (~ 3000 pop.; supplied from Chicago, WI;

adjacent to rail, near major U.S. highway; OEMs in IL, WI, IA

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Example Data for Strategic Facility Design

7. What is the production site like? Three, single-story pole-buildings (one improved, with 2 additions)

8. What utilities are available (and where)? Municipal sewer & water; regional electric, internet & natural gas

9. What transportation is available (and where)? Railroad line on South, at-grade truck on East in street ROW

10. How is the production site constrained? Rail, creek to South; streets East (access), North; open land West

11. How many people will be required? 40 – 90 people, non-union, 8% office, two 8 hr shifts, 6 days/week

12. What standards are applicable? ADA (28 CFR 36), IBC, IFC, IECC, NEC, NFPA, OSHA (29 CFR 1910),

UPC; near flood plain; no municipal/county parking regulations

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Exercise: Data for Strategic Facility Design

1. What is to be produced?2. How are the products to be produced?3. When are the products to be produced?4. How much of the product is to be produced?5. How long will the product be produced?6. Where are the products to be produced?

How would you answer these questions for the following:I. Armadillo’sII. McDonald’sIII. Hardee’sIV. Applebee’sV. Minerva’sVI. Corn Exchange

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Questions & Issues

Next Class:Hands on assignment to develop:

BOMOperation Process ChartPrecedence Diagram

Team exercise (but not part of Project)3 people per team (2 people, if necessary)