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    Compiled by Prof. P.B.Owalekar

    Facility Layout:Manufacturing and Services

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    Overview

    Introduction Manufacturing Facility Layouts

    Analyzing Manufacturing Facility Layouts

    Service Facility Layouts Wrap-Up: What World-Class Producers Do

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    Introduction

    Facility layout means planning: for the location of all machines, utilities, employee

    workstations, customer service areas, material

    storage areas, aisles, restrooms, lunchrooms,

    internal walls, offices, and computer rooms

    for the flow patterns of materials and people

    around, into, and within buildings

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    Locate All Areas In and Around Buildings

    Equipment Work stations

    Material storage

    Rest/break areas Utilities

    Eating areas

    Aisles Offices

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    Characteristics of the Facility Layout Decision

    Location of these various areas impacts the flowthrough the system.

    The layout can affect productivity and costs generated

    by the system.

    Layout alternatives are limited by

    the amount and type of space required for the

    various areas

    the amount and type of space available

    the operations strategy

    . . . more

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    Characteristics of the Facility Layout Decision

    Layout decisions tend to be: Infrequent

    Expensive to implement

    Studied and evaluated extensively Long-term commitments

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    Objectives of the Lay out Strategy

    Develop an economical layout which will meet the

    requirements of:

    product design and volume (product strategy)

    Process equipment and capacity (process strategy)

    quality of work life (human resource strategy)

    building and site constraints (location strategy)

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    Requirements of a Good Layout

    A good layout requires:

    an understanding of capacity & space requirements

    selection of appropriate material handling equipment

    decisions regarding environment and aesthetics

    identification and understanding of the requirements

    for information flow

    identification of the cost of moving between thevarious work areas

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    Inputs to the Layout Decision

    1. Specification of objectives of the system in terms ofoutput and flexibility.

    2. Estimation of product or service demand on thesystem.

    3. Processing requirements in terms of number ofoperations and amount of flow between departmentsand work centers.

    4. Space requirements for the elements in the layout.

    5. Space availability within the facility itself.

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    Steps in Developing a Process Oriented Layout

    Construct a from-to matrix

    Determine space requirements for each department

    Develop an initial schematic diagram

    Determine the cost of this layout By trial-and error (or more sophisticated means), try to

    improve the initial layout

    Prepare a detailed plan that evaluates factors in

    addition to transportation cost

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    Warehouse & Storage Layout

    General Cost Curve

    0

    20

    40

    60

    80

    100

    120

    10 20 30 40 50 60 70 80 90 100

    Warehouse Density

    Line 1

    Line 2

    Line 3The best warehouse layout is where

    total costs are at a minimum

    Material handling cost

    (mostly variable)

    Costs include:

    Equipment

    DamagePosition & Find

    Investment

    Material storage cost

    (mostly fixed)

    Costs include:

    Land & building

    Building & insurance

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    Manufacturing Facility Layouts

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    Basic Layout Forms

    Process Product

    Cellular

    Fixed position Hybrid

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    Process (Job Shop) Layouts

    Equipment that perform similar processes aregrouped together

    Used when the operations system must handle a wide

    variety of products in relatively small volumes (i.e.,

    flexibility is necessary)

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    Characteristics of Process Layouts

    General-purpose equipment is used Changeover is rapid

    Material flow is intermittent

    Material handling equipment is flexible Operators are highly skilled

    . . . more

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    Characteristics of Process Layouts

    Technical supervision is required Planning, scheduling and controlling functions are

    challenging

    Production time is relatively long

    In-process inventory is relatively high

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    Product (Assembly Line) Layouts

    Operations are arranged in the sequence required tomake the product

    Used when the operations system must handle a

    narrow variety of products in relatively high volumes

    Operations and personnel are dedicated to producing

    one or a small number of products

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    Characteristics of Product Layouts

    Special-purpose equipment are used Changeover is expensive and lengthy

    Material flow approaches continuous

    Material handling equipment is fixed Operators need not be as skilled

    . . .more

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    Characteristics of Product Layouts

    Little direct supervision is required Planning, scheduling and controlling functions are

    relatively straight-forward

    Production time for a unit is relatively short

    In-process inventory is relatively low

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    Cellular Manufacturing (CM) Layouts

    Operations required to produce a particular family(group) of parts are arranged in the sequence required

    to make that family

    Used when the operations system must handle a

    moderate variety of products in moderate volumes

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    Characteristics of CM

    Relative to Process Layouts

    Equipment can be less general-purpose Material handling costs are reduced

    Training periods for operators are shortened

    In-process inventory is lower Parts can be made faster and shipped more quickly

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    Characteristics of CM

    Relative to a Product Layout

    Equipment can be less special-purpose Changeovers are simplified

    Production is easier to automate

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    Fixed-Position Layouts

    Product remains in a fixed position, and thepersonnel, material and equipment come to it

    Used when the product is very bulky, large, heavy or

    fragile

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    Hybrid Layouts

    Actually, most manufacturing facilities use acombination of layout types.

    An example of a hybrid layout is where departments

    are arranged according to the types of processes but

    the products flow through on a product layout.

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    New Trends in Manufacturing Layouts

    Designed for quality and flexibility Ability to quickly shift to different product models or

    to different production rates

    Cellular layout within larger process layouts

    Automated material handling

    U-shaped production lines

    . . . more

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    New Trends in Manufacturing Layouts

    More open work areas with fewer walls, partitions, orother obstacles

    Smaller and more compact factory layouts

    Less space provided for storage of inventories

    throughout the layout

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    Process Layouts Product Layouts

    Cellular Layouts

    Analyzing Manufacturing Facility Layouts

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    Process Layout

    What factors might we consider when determiningthe locations of process areas, or departments?

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    Designing and Analyzing a Process Layout

    Group like processes together into departments orwork centers

    Determine where in the building these departments

    will be located relative to one another

    The objective is to arrange the departments so that

    some criterion such as material-handling cost is

    minimized

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    Approaches to Process Layout Design

    Operations sequence analysis Block diagram analysis

    Load-distance analysis

    Computer analysis

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    Operations Sequence Analysis

    Inputs required an existing or proposed arrangement of

    departments

    a projection of the traffic or flow that will take

    place between one department and each of the

    other departments during some time period - this is

    usually displayed as an interdepartmental flow

    matrix . . .more

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    Operations Sequence Analysis

    Departments are represented by nodes (circles) Using the interdepartmental flow information, flows

    between adjacent departments are represented by

    solid lines. Dashed lines represent traffic between

    nonadjacent departments. The projected volumes arewritten above the appropriate lines.

    . . . more

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    Operations Sequence Analysis

    Departments (circles) are moved with the objective ofreducing the amount of nonadjacent flow.

    This proceeds until no further improvement can be

    found

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    Block Diagram Analysis

    This approach follows the operations sequenceanalysis and is an effort to make the solution more

    realistic

    Each department is represented by a square the

    relative size of the department

    Shapes of the squares are altered to fit into the

    boundaries of the building while retaining the same

    areas and relative position found in the operationssequence analysis

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    Load-Distance Analysis

    A way of quantitatively comparing alternativeprocess layouts

    Inputs

    Alternative block layouts which will provide the

    distance between a department and each of the

    other departments

    For each product, the path it will follow (routing)

    and its volume over some time period . . . more

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    Load-Distance Analysis

    For each alternative process layout, compute the totaldistance a product must travel using its routing

    Compute the total distance traveled per time unit for

    each product by multiplying its total travel distance

    by its volume per time unit

    Add the total distance traveled per time unit for each

    product

    Select the layout with the smallest sum

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    Process Layout: Interdepartmental Flow

    Given The flow (number of moves) to and from all

    departments

    The cost of moving from one department toanother

    The existing or planned physical layout of theplant

    Determine The best locations for each department, where

    best means interdepartmental transportation, orflow, costs

    Process Layout:

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    Process Layout:

    Cut-And-Try Approach

    Involves searching for departmental changes toreduce overall flow cost

    Difficult to determine correct moves

    Non-optimal and based on limited criteria (cost, flow

    and distance)

    Process Layout:

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    Process Layout:

    Systematic Layout Planning

    Numerical flow of items between departments Can be impractical to obtain

    Does not account for the qualitative factors that

    may be crucial to the placement decision

    Systematic Layout Planning

    Accounts for the importance of having each

    department located next to every other department

    Is also guided by trial and error

    Switching departments then checking the results

    of the closeness score

    Example 1: Systematic Layout Planning

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    Example 1: Systematic Layout PlanningReasons for Closeness

    Code

    1

    2

    3

    4

    5

    6

    Reason

    Type of customer

    Ease of supervision

    Common personnel

    Contact necessary

    Share same price

    Psychology

    Example 1: Systematic Layout Planning

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    Example 1: Systematic Layout PlanningImportance of Closeness

    Value

    A

    E

    I

    O

    U

    X

    ClosenessLine

    code

    Numerical

    weights

    Absolutely necessary

    Especially important

    Important

    Ordinary closeness OK

    Unimportant

    Undesirable

    16

    8

    4

    2

    0

    80

    Example 1: Systematic Layout Planning

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    Example 1: Systematic Layout PlanningRelating Reasons and Importance

    From

    1. Credit department

    2. Toy department

    3. Wine department

    4. Camera department

    5. Candy department

    6

    I

    --

    U

    4

    A

    --

    U

    --

    U

    1

    I

    1,6

    A

    --

    U

    1

    X

    1

    X

    To2 3 4 5

    Area(sq. ft.)

    100

    400

    300

    100

    100

    Letter

    Number

    Closeness rating

    Reason for rating

    Example 1: Systematic Layout Planning

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    Example 1: Systematic Layout PlanningThe Starting Solution

    1

    2

    4

    3

    5

    U U

    E

    A

    I

    Example 1: Systematic Layout Planning

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    Example 1: Systematic Layout PlanningInitial and Final Layouts

    1

    2 4

    3

    5

    Initial Layout

    Ignoring space and

    building constraints

    2

    5 1 4

    3

    50 ft

    20 ft

    Final Layout

    Adjusted by square

    footage and building

    size

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    Designing and Analyzing a Product Layout

    Line Balancing

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    Designing and Analyzing a Product Layout

    Characteristics Inputs

    Design Procedure

    How Good Is The Layout?

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    Product Layout-Advantages/Disadvantages

    Advantages: Low cost variable cost per

    unit

    Lower material handling

    costs reduction in work in-process

    inventories

    easier training and

    supervision

    Disadvantages: High volume required

    because of large initial

    investment

    Work stoppage at any pointties up the whole process

    Lack of flexibility in

    handling variety of products

    or production rates

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    Line Balancing Problem

    Work stations are arranged so that the output of one is

    an input to the next, i.e., a series connection

    Layout design involves assigning one or more of the

    tasks required to make a product to work stations

    . . . more

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    Line Balancing Problem

    The objective is to assign tasks to minimize theworkers idle time, therefore idle time costs, and meet

    the required production rate for the line

    In a perfectly balanced line, all workers would

    complete their assigned tasks at the same time(assuming they start their work simultaneously)

    This would result in no idle time

    . . . more

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    Line Balancing Problem

    Unfortunately there are a number of conditions thatprevent the achievement of a perfectly balanced line

    The estimated times for tasks

    The precedence relationships for the tasks

    The combinatorial nature of the problem

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    Inputs

    The production rate required from the product layoutor the cycle time.

    The cycle time is the reciprocal of the production

    rate and visa versa

    All of the tasks required to make the product

    It is assumed that these tasks can not be divided

    further

    . . . more

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    Inputs

    The estimated time to do each task The precedence relationships between the tasks

    These relationships are determined by the technical

    constraints imposed by the product

    These relationships are displayed as a network

    known as a precedence diagram

    D i P d

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    Design Procedure

    1. If not provided, find the cycle time for the line.Remember the cycle time is the reciprocal of the

    production rate. Make sure the cycle time is

    expressed in the same time units as the estimated task

    times.2. Select the line-balancing heuristic that may be used to

    help with the assignments. (Two heuristics are

    described at the end of this procedure.)

    . . . more

    D i P d

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    Design Procedure

    3. Open a new work station with the full cycle timeremaining.

    4. Determine which tasks are feasible, i.e., can be

    assigned to this work station at this time. For a task

    to be feasible, two conditions must be met:

    All tasks that precede that task must have already

    been assigned

    The estimated task time must be less than or equalto the remaining cycle time for that work station.

    D i P d

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    Design Procedure

    5. If there are no feasible tasks, assignments to thatwork station are complete. Go back to step 3 (or stop,

    if all tasks have been assigned).

    If there is only one feasible task, assign it to the

    work station. If there is more than one feasible task,use the heuristic (step 2) to determine which task to

    assign. Reduce the work stations remaining cycle

    time by the selected tasks time and return to step 4.

    Li B l i H i ti

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    Line-Balancing Heuristics

    Heuristic methods, based on simple rules, have beenused to develop very good, not optimal, solutions to

    line balancing problems.

    Incremental Utilization Heuristic - adds tasks to a

    workstation one at a time in the order of taskprecedence until utilization is 100% or is observed to

    fall.

    Longest-Task-Time Heuristic - adds tasks to a

    workstation one at a time in the order of task

    precedence, choosing - when a choice must be made -

    the task with the longest time.

    H G d I th D i ?

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    How Good Is the Design?

    Utilization is one way of objectively determining hownear perfectly balanced an assignment scheme is.

    Utilization is the percentage of time that a production

    line is working.

    Utilization is calculated as:

    or

    100stations)workofnumber(ActualTime)(Cycle

    stask timeallofSumx

    x

    100onsworkstatiofnumberActual

    onsworkstatiofnumberMinimumx

    P d t L t M j A ti

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    Product Layouts-Major Assumptions

    Volume is adequate for high equipment utilization. Product demand is stable enough to justify high

    investment in specialized equipment.

    Product is standardized or approaching a phase ofits life cycle that justifies investment in specialized

    equipment.

    Supplies of raw material and components are

    adequate and of uniform quality to ensure they will

    work with the specialized equipment.

    Why is Balancing the Line Important?

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    Station 1

    Min/

    Unit 6

    Station 2

    7

    Station 3

    3

    Why is Balancing the Line Important?

    Whats Going to Happen?

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    Example 1: The ALB Problem

    Youve just been assigned the job a setting up anelectric fan assembly line with the following tasks:

    Task Time (Mins) Description Predecessors

    A 2 Assemble frame NoneB 1 Mount switch A

    C 3.25 Assemble motor housing None

    D 1.2 Mount motor housing in frame A, C

    E 0.5 Attach blade D

    F 1 Assemble and attach safety grill EG 1 Attach cord B

    H 1.4 Test F, G

    Example 1: The ALB Problem

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    pThe Precedence Diagram

    A

    C

    B

    D E F

    GH

    2

    3.25

    1

    1.2 .5

    1

    1.4

    1

    Which process step defines the maximum rate ofproduction?

    Example 1: The ALB Problem

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    We want to assemble 100 fans per day

    Required Cycle Time, C =Production time per period

    Required output per period

    C =420 mins / day

    100 units / day= 4.2 mins / unit

    What do these numbers this represent?

    Example 1: The ALB Problem

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    We want to assemble 100 fans per day

    Theoretical Min. Number of Workstations,N

    N =Sum of task times (T)

    Cycle time (C)

    t

    t

    N =11.35 mins / unit

    4.2 mins / unit= 2.702, or 3t

    Why should we always round up?

    Example 1: The ALB Problem

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    pSelected Task Selection Rules

    Primary: Assign tasks in order the the largest numberof following tasks.

    Secondary (tie-breaking): Assign tasks in order of thelongest operating time

    Example 1: The ALB Problem

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    pSelected Task Selection Rules

    Precedence Diagram

    A

    C

    B

    D E F

    GH

    2

    3.25

    1

    1.2 .5

    11.4

    1

    Task Followers Time (Min)

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    A

    C

    B

    D E F

    GH

    2

    3.25

    1

    1.2 .5

    11.4

    1

    Station 1 Station 2 Station 3

    A 6 2

    C 4 3.25

    D 3 1.2

    B 2 1

    E 2 0.5F 1 1

    G 1 1

    H 0 1.4

    Slide 66 of 96

    Task Followers Time (Min)

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    A

    C

    B

    D E F

    GH

    2

    3.25

    1

    1.2 .5

    11.4

    1

    Station 1 Station 2 Station 3

    A 6 2

    C 4 3.25

    D 3 1.2

    B 2 1

    E 2 0.5F 1 1

    G 1 1

    H 0 1.4

    A (4.2-2=2.2)

    Slide 67 of 96

    Task Followers Time (Min)

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    A

    C

    B

    D E F

    GH

    2

    3.25

    1

    1.2 .5

    11.4

    1

    Station 1 Station 2 Station 3

    A 6 2

    C 4 3.25

    D 3 1.2

    B 2 1

    E 2 0.5F 1 1

    G 1 1

    H 0 1.4

    A (4.2-2=2.2)

    B (2.2-1=1.2)

    Slide 68 of 96

    Task Followers Time (Min)

    A 6

    2

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    A

    C

    B

    D E F

    GH

    2

    3.25

    1

    1.2 .5

    11.4

    1

    Station 1 Station 2 Station 3

    A 6 2

    C 4 3.25

    D 3 1.2

    B 2 1

    E 2 0.5F 1 1

    G 1 1

    H 0 1.4

    A (4.2-2=2.2)

    B (2.2-1=1.2)

    G (1.2-1= .2)

    Idle= .2

    Slide 69 of 96

    Task Followers Time (Min)

    A 6

    2

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    A

    C

    B

    D E F

    GH

    2

    3.25

    1

    1.2 .5

    11.4

    1

    Station 1 Station 2 Station 3

    A 6 2

    C 4 3.25

    D 3 1.2

    B 2 1

    E 2 0.5F 1 1

    G 1 1

    H 0 1.4

    A (4.2-2=2.2)

    B (2.2-1=1.2)

    G (1.2-1= .2)

    Idle= .2

    C (4.2-3.25)=.95

    Idle = .95

    Slide 70 of 96

    Task Followers Time (Min)

    A 6

    2

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    A

    C

    B

    D E F

    GH

    2

    3.25

    1

    1.2 .5

    11.4

    1

    Station 1 Station 2 Station 3

    A 6 2

    C 4 3.25

    D 3 1.2

    B 2 1

    E 2 0.5F 1 1

    G 1 1

    H 0 1.4

    A (4.2-2=2.2)

    B (2.2-1=1.2)

    G (1.2-1= .2)

    Idle= .2

    C (4.2-3.25)=.95

    Idle = .95

    D (4.2-1.2)=3

    Slide 71 of 96

    Task Followers Time (Min)

    A 6

    2

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    A

    C

    B

    D E F

    GH

    2

    3.25

    1

    1.2 .5

    11.4

    1

    Station 1 Station 2 Station 3

    A 6 2

    C 4 3.25

    D 3 1.2

    B 2 1

    E 2 0.5F 1 1

    G 1 1

    H 0 1.4

    A (4.2-2=2.2)

    B (2.2-1=1.2)

    G (1.2-1= .2)

    Idle= .2

    C (4.2-3.25)=.95

    Idle = .95

    D (4.2-1.2)=3

    E (3-.5)=2.5

    Slide 72 of 96

    Task Followers Time (Min)

    A 6

    2

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    A

    C

    B

    D E F

    GH

    2

    3.25

    1

    1.2 .5

    11.4

    1

    Station 1 Station 2 Station 3

    A 6 2

    C 4 3.25

    D 3 1.2

    B 2 1

    E 2 0.5F 1 1

    G 1 1

    H 0 1.4

    A (4.2-2=2.2)

    B (2.2-1=1.2)

    G (1.2-1= .2)

    Idle= .2

    C (4.2-3.25)=.95

    Idle = .95

    D (4.2-1.2)=3

    E (3-.5)=2.5

    F (2.5-1)=1.5

    Slide 73 of 96

    Task Followers Time (Min)

    A 6

    2

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    A

    C

    B

    D E F

    GH

    2

    3.25

    1

    1.2 .5

    11.4

    1

    Station 1 Station 2 Station 3

    A 6 2

    C 4 3.25

    D 3 1.2

    B 2 1

    E 2 0.5F 1 1

    G 1 1

    H 0 1.4

    A (4.2-2=2.2)

    B (2.2-1=1.2)

    G (1.2-1= .2)

    C (4.2-3.25)=.95 D (4.2-1.2)=3

    E (3-.5)=2.5

    F (2.5-1)=1.5H (1.5-1.4)=.1

    Idle=.2 Idle=.95 Idle=.1

    Slide 74 of 96

    Example 1: The ALB Problem

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    Slide 75 of 96

    Example 1: The ALB Problem

    Which station is the bottleneck? What is the effective cycle time?

    Efficiency =Sum of task times (T)

    Actual number of workstations (Na) x Cycle time (C)

    Efficiency = 11.35 mins / unit(3)(4.2mins / unit)

    =.901

    Designing and Analyzing a Cellular Layout

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    Slide 76 of 96

    Designing and Analyzing a Cellular Layout

    Fundamental questions: Which parts are going to be produced in a cell?

    Which processes are going to be assigned to a cell?

    Group Technology

    B fit

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    Slide 77 of 96

    Benefits

    1. Better human relations

    2. Improved operator expertise

    3. Less in-process inventory and material handling

    4. Faster production setup

    Fundamental Requirements

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    Slide 78 of 96

    for Parts to be Made in Cells

    Demand for the parts must be high enough and stableenough that moderate batch sizes of the parts can be

    produced periodically.

    Parts must be capable of being grouped into parts

    families.

    Design Procedure

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    Slide 79 of 96

    Design Procedure

    1. Form the Parts-Machines Matrix.

    2. Rearrange the Rows.

    Place the machines that produce the same parts in

    adjacent rows.

    3. Rearrange the Columns.

    Place the parts requiring the same machines in

    adjacent columns.

    4. Using the rearranged parts-machines matrix toidentify cells, the machines for that cell and the parts

    that will be produced in that cell.

    Wrap-Up: World-Class Practice

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    Wrap Up: World Class Practice

    Strive for flexibility in layouts

    Multi-job training of workers

    Sophisticated preventive-maintenance programs

    Flexible machines

    Empowered workers trained in problem solving

    Layouts small and compact