chandrasekhar ganduri rohan gavande krishnan v kumar samik raychaudhuri
TRANSCRIPT
FACTWISE REPORTFACTWISE REPORTONON
FACILITY LAYOUTFACILITY LAYOUTFOR FOR
NEW VIEW NEW VIEW TECHNOLOGIESTECHNOLOGIES
CHANDRASEKHAR GANDURI
ROHAN GAVANDE
KRISHNAN V KUMAR
SAMIK RAYCHAUDHURI
Methodology SUBDIVIDED INTO 3 PHASES
• PHASE-I: Rough-cut calculations for giving a basic idea of number of machines, number of operators, shifts per hour, number of cells, batch size and total cost.
• PHASE-II: Simulation for fixing number of machines, number of operators, level of cross-training, buffer-size and operator assignment. Preliminary calculation of initial cost and operating cost. Rough layout of cells.
• PHASE-III: Finalizing overall layout and detailed layout for cells and office spaces. Finalizing material handling method. Projecting cost estimates.
Operations PolicyOperations Policy
Cells are operating 1 Shift per day of 8 hours each. 1 Hour overtime for 3rd Year in Cell# 1 (For model# 860) and Cell# 3 (For model# 1080).
5 working days per week, 50 weeks per year : Total 250 days.
Cross-training level of operators are same, with additional cross-training in after 2 years.
Buffer sizes between machines are kept to 20 units.
Batch size is equal to a day’s order.
Details of Cell : Cell #1 (Model# 860)Details of Cell : Cell #1 (Model# 860)Operation Type Curr. Yr. After Yr1 After Yr2
M/C Util M/C Util M/C Util
Unpack and label components M 1 76.6 1 84.5 1 86.3
Sanitize LC displays and PCB’s M 1 77.3 1 84.3 1 85.2
Connect display to Power strips A 1 78.9 1 82.7 1 85.8
Tack keyboard inputs to display A 1 73.2 1 83.1 1 85
Bond power strip to PCB and LCD A 1 DH 83.2 2 (1D
+1S)
63.8 2 (1D
+1S)
69.92
Insert Backlights and Sensors A 1 78.4 1 79.7 1 75.6
Verify Alignment and Bonds M 1 66.4 1 74.8 1 60.49
Power Up Test on Components A 1 73.4 1 80.2 1 71.43
Solder Subassemblies and Connectors A 2 77.8 2 84.3 2 78.9
Complete Assembly in Housing A 2 73.3 2 81.5 2 73.3
Final test and Record Results A 1 76 1 82.7 1 77.1
Pack and Label Units M 1 73.5 1 84.6 1 79.4
TOTAL - 14 15 15
Cell #1: Throughput and OperatorsCell #1: Throughput and Operators
Operation Curr. Yr. After Yr1
After Yr2
TOTAL ANNUAL DEMAND FOR MODEL # 860
42000 48300 55545
TOTAL AVAILABLE HOURS 2000 2000 2250
REQUIRED THROUGHPUT FOR THE CELL (parts/hour)
21 24.15 24.69
OBTAINED THROUGHPUT WITH PROPOSED CELL (parts/hour)
21.96 ± 0.087
27.69 ± 0.059
26.94 ± 0.0291
Total Number of Operators 4 5 5
Cell #1: Operator (After 2 Yr.)Cell #1: Operator (After 2 Yr.)Op# 1 Op# 2 Op# 3 Op# 4 Op# 5
Unpack X X O O O
Sanitize X X X O O
Connect O O X O O
Tack O O X O O
Bond O O X X O
Insert O O O X O
Verify O O O X O
Power O O O O X
Solder O O O O X
Complete O X O O X
Final O O O O X
Pack X X O O O
Util Levels
89.7 % 87.1% 82.1% 78.7% 55.8%
Cell #1: Cost FiguresCell #1: Cost Figures
CATEGORY YEAR 1 YEAR 2 YEAR 3
MACHINE COST 80600 22000 0
OPERATORS 155400 186650 221150
MATERIAL HANDLING
2352 0 0
PM & SPC (@$250 + $100 per m/c per year)
17500 18750 18750
TOTAL 255852 227400 239900
Operation Type Curr. Yr. After Yr1 After Yr2
M/C Util M/C Util M/C Util
Unpack and label components M 1 85 1 85 1 85
Sanitize LC displays and PCB’s M 1 74.2 1 79 1 84.9
Connect display to Power strips A 1 85 1 85 1 85
Tack keyboard inputs to display A 1 80 1 80.4 1 85
Bond power strip to PCB and LCD A 2 (1D
+1S)
85 2 (1D
+1S)
85 3 (1D
+2S)
85
Insert Backlights and Sensors A 1 72.2 1 78.1 1 84.4
Verify Alignment and Bonds M
Power Up Test on Components A 1 60 1 62.9 1 69.36
Solder Subassemblies and Connectors A 3 82.5 3 85 4 74.9
Complete Assembly in Housing A 2 85 3 75.3 3 84.2
Final test and Record Results A 1 48 1 71.8 1 76.7
Pack and Label Units M 1 52.8 1 57.2 1 62
TOTAL - 15 16 18
Details of Cell : Cell #2 (Model# 970)Details of Cell : Cell #2 (Model# 970)
Operation Curr. Yr. After Yr1
After Yr2
TOTAL ANNUAL DEMAND FOR MODEL # 970
32000 38400 46080
TOTAL AVAILABLE HOURS 2000 2000 2000
REQUIRED THROUGHPUT FOR THE CELL (parts/hour)
16 19.2 23.04
OBTAINED THROUGHPUT WITH PROPOSED CELL (parts/hour)
16.25 ± 0.0026
20.03 ± 0.0138
23.94 ± 0.0249
Total Number of Operators 4 5 5
Cell #2: ThroughputCell #2: Throughput
Cell #2: Operator (After 2 Yr.)Cell #2: Operator (After 2 Yr.)
Op# 1 Op# 2 Op# 3 Op# 4 Op# 5
Unpack X O O O O
Sanitize O X O O O
Connect O X O O X
Tack O O O O X
Bond O O O O X
Insert O O O X O
Power O O O X O
Solder O O O X O
Complete O X O X O
Final X O X O O
Pack O O X O O
Util Levels
79.9 % 71.2 % 69.3% 42% 60.1%
Cell #2: Cost FiguresCell #2: Cost Figures
CATEGORY YEAR 1 YEAR 2 YEAR 3
MACHINE COST 103300 1200 23500
OPERATORS 156000 156000 200850
MATERIAL HANDLING 2216 0 0
SPC & PM (@$250 + $100 per m/c per year)
18750 20000 22500
TOTAL 280266 177200 246850
Operation Type Curr. Yr. After Yr1 After Yr2
M/C Util M/C Util M/C Util
Unpack and label components M 1 84.7 2 79.4 2 86.3
Sanitize LC displays and PCB’s M 1 76.4 1 82.1 1 87
Connect display to Power strips A 1 77.4 1 84.3 1 86.5
Tack keyboard inputs to display A 1 72 1 76.9 1 71.6
Bond power strip to PCB and LCD A 2 (1D
+1S)
77.4 2 (1D
+1S)
83.4 2 (1D
+1S)
85
Insert Backlights and Sensors A 2 75.3 2 80.4 2 71
Verify Alignment and Bonds M
Power Up Test on Components A 1 77.9 1 82.7 1 73.3
Solder Subassemblies and Connectors A 3 81.8 4 85.2 4 77.2
Complete Assembly in Housing A 2 78.6 3 83 3 74
Final test and Record Results A 1 71.5 1 76.3 1 69.0
Pack and Label Units M 1 65.7 1 69.5 1 56.8
TOTAL - 16 19 19
Details of Cell : Cell #3 (Model# 1080)Details of Cell : Cell #3 (Model# 1080)
Cell #3: ThroughputCell #3: Throughput
Operation Curr. Yr. After Yr1
After Yr2
TOTAL ANNUAL DEMAND FOR MODEL # 1080
28000 36400 47320
TOTAL AVAILABLE HOURS 2000 2000 2500
REQUIRED THROUGHPUT FOR THE CELL (parts/hour)
14 18.2 18.92
OBTAINED THROUGHPUT WITH PROPOSED CELL (parts/hour)
15.30 ± 0.0355
19.90 ± 0.1168
19.96 ± 0.0145
Total Number of Operators 4 5 5
Cell #3: Operator (After 2 Yr.)Cell #3: Operator (After 2 Yr.)
Op# 1 Op# 2 Op# 3 Op# 4 Op# 5
Unpack X O X O X
Sanitize O X X O X
Connect O X O O O
Tack O O O X O
Bond O O O X O
Insert O O O X O
Power O O O X O
Solder O X O O O
Complete O X O O X
Final O O X O X
Pack X O X O O
Util Levels
72.7% 55.8% 61.9% 47.7% 80.6%
Cell #3: Cost FiguresCell #3: Cost Figures
CATEGORY YEAR 1 YEAR 2 YEAR 3
MACHINE COST 111300 3500 0
OPERATORS 149800 149800 264900
MATERIAL HANDLING EQP.
2592 0 0
SPC & PM (@$250 + $100 per m/c per year)
20000 23750 23750
TOTAL 283692 177050 288650
Anatomy of the FacilityAnatomy of the Facility
Layout
Material Handling
Communication
Utilities
Building
LayoutLayout
Location
Overall / Block Layout
Detailed / Cell Layout
Implementation
Four Phases of Systematic Layout Planning
CommunicationCommunication
Computers and modern information system are used for storage and retrieval of data.
One Information Systems Manager
Digital Information access to managers and above.
For production support, open office structure facilitates communication.
UtilitiesUtilities
Auxiliary utilities like recreation room, training rooms, conference rooms, medical facilities, cafeteria are provided.
Maintenance and Facilities Supervisor.
Maintenance, compressors and spare parts.
Material Handling and StorageMaterial Handling and Storage
External Integration
Overall Handling Plan
Detailed Handling Plan
Installation
Four Phases of Material Handling Analysis
MH : Overall HandlingMH : Overall Handling
Based on:
basic system of moves
Type of equipments
Transport unit or containers
Equipments used are:
Walkie-Pallet Truck
Gravity-roller conveyor
Wooden and Steel Pallets
MH : Detailed HandlingMH : Detailed Handling
Material Control System
Material Handling Dimensions:
Movement, Quantity, Time, Space & Control
MH and Storage Statistics and CostMH and Storage Statistics and Cost
Battery powered Walkie-Pallet Truck : 1 @ $5000
Steel Pallets : 15 @ $150 each = $2250
Wooden Pallets : 21 @ $120 each = $2520
Gravity Roller Conveyors : 205 ft. @ $8 /ft. = $1640
Conveyor Kits : 600 @ $5 each = $3000
Storage Shelves : 20 @$30 each = $600
Operation PoliciesOperation Policies
Two roads diverged in a yellow wood,And sorry I could not travel both.
- Robert Frost, The Road not taken- Robert Frost, The Road not taken
Performance MeasuresPerformance Measures
Tell me how you measure me and I will tell you how to behave. If you measure me in an illogical way do not be surprised by illogical behavior.
- Dr.Eli Goldratt,The Haystack Syndrome- Dr.Eli Goldratt,The Haystack Syndrome
Performance MeasuresPerformance Measures
External Oriented Measures:
Cost based : Cost to Customer
Investment indices–ROI,Payback
Inventory
Operational expense
other financial accounting measures
Performance MeasuresPerformance Measures
External Oriented Measures:
Non cost based : Lead times
Delivery Reliability
Flexibility in production
Performance MeasuresPerformance Measures
Internal Oriented Measures:
- Scrap Costs
Should be process oriented than result oriented.
- Cell Throughput
- Work In Process
- Unit cost - Quality related Measurements
- Cell team performance - Space utilization
Performance IncentivesPerformance Incentives
-Dwight Eisenhower
Motivation is the art of getting people to do what you want them to do because they want to do it.
Performance IncentivesPerformance Incentives
Monetary rewards : Team based awards
Rewards need to be more monetary and non monetary
: Skill Based pay Schemes
Non-Monetary rewards : Public recognition
Best cell teams
Training PolicyTraining Policy Operators are cross-trained to minimize costs and obtain benefits that come with knowledge.
Initial cross-training level is based on operator background and projected operator idle time.
Operators who jell together as a team should be cross trained Consultants with proven experience in successfully implementing CM should be hired to educate operators and managers about CM and their broadened job roles. Operators should be encouraged to take initiative and experiment with new methods to solve the problems.
Quality PolicyQuality Policy
Strict quality policy is followed.
Separate manager for Quality Assurance : One technician and one co-op to help him.
Strategies like TQM should be implemented to get the full benefits of CM
Cell teams should be encouraged to come up with innovative solutions to tackle quality problems
Quality problems in incoming material is routinely communicated to suppliers.
Shipping, Receiving and LoadingShipping, Receiving and Loading
Inbound and outbound shipments are outsourced.
Quality of inbound raw material and outbound finished goods are responsibility of freight forwarders.
Choice of shipment agents are fixed for three months, and reviewed after that on the basis of performance.
Scrap PolicyScrap Policy
Present scrap rate is 7-8% of production, which is uncontrolled random scrap.
Scraps were reduced by removing setup and implementing SPC and PM.
MH equipment also handle scraps produced by the workstations:
§ Pallets have colored shelve for scraps.
§ Space between gravity conveyors are used for scraps too.
Company has a environment-friendly recycle policy.
Maintenance PolicyMaintenance Policy
Separate Supervisor for maintenance. The Preventive Maintenance will be done in machine idle time to allow for undisrupted production.
Cell teams will be trained to look for potential problems and focus on finding the cause of breakdown quickly and develop measures to prevent its reoccurrence.
Inventory PolicyInventory Policy
Separate warehouse for incoming material and finished LCD’s.
Company tries to maintain minimum raw material inventory: 2-3 days of inventory is stored in warehouse.
Incoming material and finished product inventory are monitored using software.
3 days of production capacity is stored in finished good inventory.
Cost AnalysisCost Analysis
Cost Curr. Yr. After 1 Yr. After 2 Yr.
Cell1 255852 227400 239900
Cell2 280266 177200 246850
Cell3 283692 177050 288650
Floor Space Cost 179840 0 0
RM and Inv. Cost 6561620 7924764 9581573
Salary (Sup. + Off.) 940000 940000 940000
Warehs and Store 7850 0 0
Other Utilities 30000 30000 30000
Office Space Cost 92250 0 0
Total 8,631,370 9,476,414 11,326,973
Figures in $
Cost Analysis : GraphCost Analysis : Graph
Total Cost vs. Year
0
2000000
4000000
6000000
8000000
10000000
12000000
1 2 3
Year
Co
st Year
Cost
Production Support PeopleProduction Support People
Inventory/warehouse supervisor : 1
Shop Floor Manager: 1
Maintenance and Facilities supervisor + assistant: 2
Warehouse and Store personnel: 2
(Monthly Salary shown in Square Bracket)
Office PersonnelOffice Personnel
Human Resources (Manager & Co-op): 2
Purchasing Manager: 1
Accounting/finance Manager + Information Systems Technical Person: 1
Product design and Development Manager + 2 engineers + 1 Co-op: 4
Quality Assurance Manager + QC Technician + Co-op: 3
(Monthly Salary shown in Square Bracket)
Manufacturing/Process Engineering Manager + Co-op: 2
President + Executive Assistant/Receptionist: 2