FACTOR AND LOCATION RATINGS

The factors affecting the facility location decision is important for any type of industry. At the same time the importance of these factors may vary from different types of plants.Steps involved in factor rating.According to the requirements of a new plant a set of these factors are to be considered.These factors are rated from 1 to 5 to indicate the importance attached to them. FACTOR AND LOCATION RATINGSModule-2A rating of 5 is given to the most important factor and rating of 1 is given to the least important one.These are called factor rating.

FACTOR FACTOR RATINGProximity to customers(markets)3Proximity to raw materials5Transportation facilities4Basic amenities2Acceptance of a leather factory by local people4Availability of cheap land3Low construction cost1Easy availability of cheap and skillful and efficient labour3Eg:Factor rating of a leather good manufacturing company.Now with respect to each of these locations,lets give each of these factors another rating called location rating,according to the benefit a particular location offers.Location ratings vary from 1-10.A rating of 10 is given to the most beneficial factor at that particular location.similarly a rating of 1 is given to the least beneficial factor at that location. FACTOR FACTOR RATINGSLOCATION RATING OF A

B

CProximity to customers(markets)

3463Proximity to raw materials

51054Transportation facilities

49105Basic amenities

2676Acceptance of a leather factory by local people

4837Availability of cheap land

3728Low construction cost

1516Easy availability of cheap and skillful and efficient labour

3384ABCFactor location ratingFactor location rating

Factor location rating

177140131For each location let us find the product of factor and location ratings.Hence we observe that the total score of location A is the highest, followed by B .This technique is used for selecting best location with high score, which are then subjected to final analysis for finding the best location option.The conversion process from inputs into outputs involves two types of costs.FIXED COSTVARIABLE COSTFIXED COST: Fixed costs are capital expenditures(long term investment in fixed assets)

BREAK EVEN ANALYSIS FOR FACILITY LOCATION PLANNINGCost of landConstruction of buildingCost of machines and equipmentThese cost remains constant, irrespective of volume of production.Eg:fixed costsWe see that the production of zero units,500units,and 1000units,the fixed cost remains the same. Variable cost is the cost of labour(directly involved in production process)and raw material.As the volume of production increases, more labour and raw material are required for production and thus the variable cost increases. VARIABLE COSTWhen the variable cost(VC) is added to the fixed cost (FC),we get the total cost at a particular volume of production.TOTAL COST=FIXED COST+VARIABLE COST TC=FC+VC Find out the most economical location for an expected volume of 6000units,with the help of cost volume(break even)analysis of location method,FC and VC for three alternative location are given in the following table

Problem-1 LOCATIONFIXED COST/YEARVARIABLE COST/UNITArgentina(A)15000075.00Brazil(B)20000050.00Chile(C)40000025.00Triveni steels (p)Ltd is planning to start a new manufacturing steel utensils. It is considering three location options, namely Bokaro,Jamshedpur and Bhilai.The fixed cost at the three location have been estimated at 8.15million,7.377million,and 7.903million respectively. The variable costs at the three locations estimated at 500per unit,580unit,490per unit,respectively.The factory will have an annual production capacity of 10000steel utensils and in the initial years it will operate at 75%efficiency.find the best location option, which has the lowest cost of production.Problem-2The layout of a facility is the physical location of the various departments or units of the facility within the premises of the facility. Facility layout can be defined as the process by which the placement of the departments,workstations,machines and stock holding points within a facility are being determined.Facility layout

Eg Production industry work station

Service industry work stationFactors that influence layout:

A GOOD LAYOUTReduces accidentsProvide flexibilityProvide ease of supervision and controlProvide for employee safety and healthAllow ease of maintenance Improves productivityOBJECTIVES OF LAYOUTTypes of layoutProcess layout are arrangements that group together the workers and equipment that perform similar functions.The work has to be allocated to each department in such a way that no machines are chosen as many as different jobs as possible.Process layouts are very commonly found in service set-ups such as banks,hospitals,post offices etc

PROCESS LAYOUT(FUNCTIONAL LAYOUT)A Good example of a process layout can be seen at any Maruti service station. Here separate departments(areas)with general purpose machines are arranged for dent corrections,painting,wheel allignment,oil replacement, engine correction, electrical repairs,interiors,washing,cleaning etc,.

Process layout of an automobile service station:Advantages of process layout

Disadvantages of process layoutHere major products being produced is fixed at one locationAll other facilities are brought and arranged around the work centre like equipments,rawmaterials and worker teams are brought to the site according to a time schedule for better utilization of the space available.In this layout the product is very bulky, heavy large or has a fixed position

Eg:ship buildingDam constructionFlyover constructionAeroplane construction or a rocket.

FIXED POSITION LAYOUT

Minimizes the material handling cost of the end product.Suitable for heavy and bulky products.

AdvantagesThere is Limited space at virtually all sites.At different stages in the construction process, different materials are needed, therefore different item become critical as the project develops.The cost of attracting the skilled personnel to the job site is high.

Disadvantages In cellular layout, group of items with similar processing requirements are identified, and separate manufacturing cells are formed for each group, which contain the required machines in the desired sequence.There is no conveyor or mechanized moving platform in the cells to carry item from one machine to another, as in the product layout.The identification of similar group of item is an important aspect of cellular layout and is called group technology. CELLULAR LAYOUT AND GROUP TECHNOLOGYIn cellular layout,group of items with similar processing requirements are identified,and saperate manufacturing cells are formed for each group,which contain the required machines in the desired sequence.There is no conveyor or mechanized moving platform in the cells to carry item from one machine to another,as in the product layout.The identification of similar group of item is an important aspect of cellular layout and is called group technology. CELLULAR LAYOUT AND GROUP TECHNOLOGYLATHEDRILLING FITTINGWELDINGPAINT

E.g: Cellular layout

Manufacturing cell 1Manufacturing cell 2LATHEDRILLING FITTINGWELDINGPAINTManufacturing cell 3LATHEDRILLING FITTINGWELDINGPAINTADVANTAGESThey typically constitute only a small percentage of total production.

DISADVANTAGES A product layout is suitable when a product having standard features is to be produced in large volumes.The production process thus involves repetitive tasks to be performed on items arranged in a sequence.Specializes machines and equipments are arranged one after the other in the order of sequence required in the production process, such that a production line is formed by them. This production line is often called assembly line.Product layout

Fig

The flow of the product will be smooth.Material handling cost is minimumA high output rate and low cost of item per unit High efficiency of labour and equipment.Less supervision and labour training cost

Advantages of product layoutMaintanance cost is very high to ensure smooth running of the line.Monotonous repetitive task lead to frustration for workers.Breakdown of a machine or high absenteeism of workers lead to a halts in productionDisadvanatagesThe assembly line has a mechanized moving platform or the conveyor, which moves all the regular intervals of time.

The basic structures of the products to be manufactured in the raw form are placed on the conveyor, at equal distances from each other.

ASSEMBLY LINEAcross the conveyor there are workstations which have the required machines,equipment,components,sub assemblies,tools,and workers to perform the assembling task on the basic structures of the product. RACKS CONTAINING HEADLIGHT SUB- ASSEMBLYRACK CONTAINING TAIL LIGHT SUB ASSEMBLYRACKS CONTAINING STEERING WHEEL SUB ASSEMBLYWORKSTATION-1WORK STATION-2WORK STATION-3An assembly line(Product layout)CAR 1CAR 2CAR 3CAR-1CAR-2CAR-3PROCESS Chassis of a car

Chassis of a bike

Chassis of a truck

After the workers finish their task the conveyor is ready to moveIt takes car 1 to work station 2,car 2 to work station 3,and car3 off the assembly line.If car 0 was placed before car1 on the conveyor ,it now come to workstation1 ,The respective tasks are performed once again at the work station on the chassis of the cars before them.This process continues so that finished cars keep coming off the assembly line.The total performance time of tasks assigned to each workstation should be almost equal. This is necessary because the conveyor moves after a definite period of time. In addition the task should be assigned to successive workstation in the desired sequence according to the desired sequence.For eg:The steering wheel sub assembly can be fitted only after the steering rod(which control the sidewise movement of the front wheels of a car) is in placeu shaped assembly line is useful when there is a single worker in the line taking care of all the workstations, more workers can also be used in such a lineThe u shape of the line reduces the walking distance of the worker almost by half.The closeness of the work stations allows workers to help a fellow worker catch up,especially one working on the station just opposite.

U SHAPED ASSEMBLY LINEWith the help of u shaped assembly line,many workstations close to each other may result in conversations.U shaped assembly line

Line balancing is the apportionment(equalization) of sequential work activities into workstation to gain a high utilization of labour and equipment and therefore minimize the idle time. The assembly line can be efficient only when tasks are assighned to different work station in such a way that,as far as possible,the total processing times at these work stations are equal.This is so because the conveyor moves at regular intervals of time and therefore the time available for each work station to complete Its set of assigned task is the same. This is achieved by assembly line balancing. LINE BALANCINGIdle time is the unproductive time on the part of employees or machines as a result of factors beyond their control.Idle time is the time associated with waiting, or when a piece of machinery is not being used but could be.Idle time The period required to complete one cycle of an operation; or to complete a function, job, or job from start to finish.

Cycle Time :The length of work time that a component is available at each work station is the Cycle time. cycle time(CT)=Available Time period Output desired periodThe period required to complete one cycle of an operation; or to complete a function, job, or job from start to finish.

A production line operating 450minutes per day, is to have an output of 250units per day. find the cycle time.PROBLEM-1Theoretical minimum no of work stations

= TOTAL PERFORMANCE TIME

CYCLE TIMETheoretical minimum number of work stationsThe sum of task times of all the given task is 25 minutes,The cycle time is 5 minutes,then find out the theoretical number of work stations.Problem-2

What is planning system in an organizationAggregate planningTime frameThe main objective of aggregate planning is to respond to irregular market demands by utilizing the organizations equipment,personnel,and other resources in the most effective manner.OBJECTIVES OF AGG PLANNINGAGGREGATE PLANNING PROCESS

Material handling is the art and science of moving packing and storing of substances in any form.MATERIALS HANDLINGMaterial handling uses the right method to provide the right amount of the material at the right place,at the right time,in the right sequence,in the right position,in the right condition and at the right cost. Function of production controlMaterial handling increases effectiveness of in plant layout by reducing the cost

IMPORTANCE OF MATERIAL HANDLINGMaterial Handling is the field concerned with solving the problems involving the movement, storage in a manufacturing plant or warehouse, control and protection of materials, goods and products throughout the processes of cleaning, preparation, manufacturing, distribution, consumption and disposal of all related materials, goods and their packaging. MATERIALS HANDLINGThe focus of studies of Material Handling course work is on the methods, mechanical equipment, systems and related controls used to achieve these functions. Main objective is to reduce the number of handlings as well as the overall cost of material handling and reducing the distances through which the materials are handled.OBJECTIVEReducing manufacturing cycle time through faster movement of materials and by reducing the distance through which the materials are moved.Improved working conditions and greater safety in movement of materials.Contribute to better quality by avoiding damage to products by efficient handlingOther objectivesIncreased storage capacity by better utilization of storage areasHigher productivity.To provide better working conditions

MATERIAL HANDLING PRINCIPLESMaterial handling equipment is used to increase output, control costs, and maximize productivity. EQUIPMENTS FOR MATERIAL HANDLING

A conveyor is a common piece of mechanical handling equipment that moves materials from one location to another. Conveyors are especially useful in applications involving the transportation of heavy or bulky materials. Conveyor systems allow quick and efficient transportation for a wide variety of materials, which make them very popular in the material handling and packaging industries.Many kinds of conveying systems are available, and are used according to the various needs of different industries

A Conveyor belt conveys papers at a newspaper print plant

ROLLER CONVEYOR

Every pneumatic system, would makes use of pipes or ducts called transportation lines that carry mixture of materials and a stream of air. These materials are such as dry or free flowing or light powdery materials like cement, flyash etc. These materials can be transported conveniently to various destinations by means of a stream of high velocity air through pipe lines

FORk LIFT TRUCK

A forklift truck (also called a lift truck, a fork truck, or a forklift) is a powered industrial truck used to lift and move materials short distances

capasity is 2500kg

A skid box is a wood, corrugated fiberboard, or metal box.

Used for storage and shipping of bulk products. Skid box EXPENDABLE PALLET

Expendable pallet is an excellent load carrier for light-medium weight goods that need a strong and durable packaging solution.

In general, expendable wooden pallets are used for heavier productsPRINCIPLES OF MATERIAL HANDLING Planning principle All material handling should be the results of a deliberate plan where the needs, performance objectives, and functional specification of the proposed methods are completely defined at the outset.

Principles of Material handling All material handling should be the results of a deliberate plan where the needs, performance objectives, and functional specification of the proposed methods are completely defined at the outset.

Planning principle

Material handling methods, equipment, controls should be standardized within the limits of achieving overall performance objectives and without sacrificing needed flexibility, modularity.

Standardization principle Material handling work should be minimized without sacrificing productivity or the level of service required of the operation.

Work principle

Human capabilities and limitations must be recognized and respected in the design of material handling tasks and equipment to insure safe and effective operations.

Ergonomic principle

Unit loads shall be appropriately sized and configured in a way which achieves the material for and inventory objectives at each stage in the supply chain.

Unit load principle

Effective and efficient use must be made of all available space.

Space utilization principle

material movement and storage activities should be fully integrated to form a coordinated operational system that spans receiving, inspection, storage, production, assembly, packaging, unitizing, order selection, shipping, transportation, and the handling of returns.

System principle

Material handling operations should be mechanized and/or automated where feasible to improve operational efficiency, increase responsiveness, improve consistency and predictability, decrease operating costs, and eliminate repetitive or potentially unsafe manual labor.

Automation principle

Environmental impact and energy consumption should be considered as criteria when designing or selecting alternative equipment and material handling systems.

Environmental principle

A thorough economic analysis should account for the entire life cycle of all material handling equipment and resulting systems

Life cycle cost principle

Module -3Work study is undertaken to find better ways of doing the job and have better control over the output.It seeks to improve the productivity by improving ways and means of doing work.Its a systematic examination of the methods for carrying out activities such as to improve the effective use of resources and to setup standards of performance for the activities carried out.Work studyTo save the time and costTo analyze the present method and develop and new and improved method of production.To increase the productivityTo improve the efficiency of work, the resources can also be effectively used.Objectives of work studyThe objective of work study is to assist management obtain the optimum use of the human and material resources available to an organisation for the accomplishment of the work upon which it is engaged. Fundamentally, this objective has three aspects:-the most effective use of plant and equipment;the most effective use of human effort; andthe evaluation of human work

Aims of work study Method study (Examining a job and finding more efficient methods to perform)

Time study(work mesurement ( Determining the time necessary to perform a job and its elements) WORK STUDY(COMPONENTS)The systematic recording and critical examination of ways of doing things in order to make improvements is known as method study.

Method studyAnalyse the methods of workGain insight in how work is performed.Document methods of workImprove methods of work and detect potential for improvements.Enable planning by providing data.Provide information for time studies.Objectives of method studyProcedue for Method studyIs also called work measurement.Basically by using time study an analyst will be taking a small sample of a single workers activity and using it to derive a standard for tasks of that nature.

Time studyEstablish standard timesRate operator performance

Objectives of time studyRefer my shortnoteProcedure for time studyWork measurement is the application of techniques designed to establish the time for an average worker to carry out a specified manufacturing task at a defined level of performance Work measurement

Manpower planning

Work measurement data is used for manpower planning. This is because it gives information about the total hours required to perform the job. This helps to estimate the number and type of employees who are required to do the job. It ensures that there will not be any excess staff.Work measurement data also helps to estimate the number of machines and equipment that will be required in the future. This helps to find out the number of employees who will be required to handle these machines and equipment.

Production planning and scheduling:Work measurement data is used for production planning and scheduling. This is because this data is used for making production standards. This data is also used for scheduling. Scheduling means to fix starting and finishing time for each job. This cannot be done without work measurement data.

Estimating productions costs:Work measurement data helps to estimate the production cost. This is because it gives management accurate data about production time. This data helps to estimate the labor costs. Secondly, indirect costs such as fuel and power consumption, rent and salaries of staff, etc. also depends on the production time factor.

Work measurement data is used to reduce and control costs. It helps to reduce the labor cost. This is because it provides a guideline to the employees to work efficiently and effectively. This helps to make optimum use of the available manpower. So the labor cost will reduce.Work measurement data helps to reduce material costs. It also helps to increase machine productivity. All these steps help to reduce and control production costs.

Cost reduction and control:

Rational basis for incentives

Work measurement data is used for making incentive schemes for the employees. Incentive schemes motivate employees to work hard. The efficient employees are rewarded by giving them a higher wage rate. Work measurement fixes the standard-time for doing the work. Those who complete their work within a standard time or faster than the standard-time are rewarded with higher wages. This encourages all employees to work fast and efficiently.

Performance appraisal:

Performance appraisals are done to find out whether the employees are efficient or not. It is done to find strengths & weaknesses of employees.Work measurement helps to do performance appraisals. This is because it fixes the standard-output and standard-time for each employee. The employees who produce the standard-output within the standard-time are efficient and vice versa. Thus, it also helps to find out the strengths and weaknesses of the employees.

Training of employees:Work measurement helps to train the employees, especially the new employees. It divides the full job into small elements (parts). It gives complete details about each element of the job. It gives details about; how to do each element, the time taken for each element, the machines and tools involved in each element, etc. These details are used for training the employees.

Comparing alternative methods:

There are many methods for doing a job. Work measurement data helps to choose the best method for doing a job.

Accepting new orders:Work measurement data tells us when will each job be completed. So, it helps the company to decide whether to accept new orders or not. In other words, it helps to find out whether the new-order will be completed within a specific time limit.

Fixing the selling cost:Work measurement data also helps to fix the selling cost of product. This is because it estimates the cost of production, especially the labor cost. Selling cost is decided after fixing the estimated production cost.

Work sampling is the statistical technique for determining the proportion of time spent by workers in various defined categories of activity (e.g. setting up a machine, assembling two parts, idleetc.) Work sampling One of them is the sufficient time available to perform the study. A work sampling study usually requires a substantial period of time to complete. There must be enough time available (several weeks or more) to conduct the study.Another characteristic is multiple workers. Work sampling is commonly used to study the activities of multiple workers rather than one worker.

Characteristics of work sampling study

The third characteristic is long cycle time. The job covered in the study has relatively a long cycle time.The last condition is the non-repetitive work cycles. The work is not highly repetitive. The jobs consist of various tasks rather than a single repetitive task. However, it must be possible to classify the work activities into a distinct number of categories.1)Define the manufacturing tasks for which the standard time is to be determined.

2)Define the task elements. These are the defined broken-down steps of the task that will be observed during the study. Since a worker is going to be observed, additional categories will likely be included as well, such as "idle", "waiting for work", and "absent".

3)Design the study. This includes designing the forms that will be used to record the observations, determining how many observations will be required, deciding on the number of days or shifts to be included in the study, scheduling the observations, and finally determining the number of observers needed.

4)Identify the observers who will do the sampling

5)Start the study. All those who are affected by the study should be informed about it.6)Make random visits to the plant and collect the observations.

7)After completing the study, analyze and present the results. This is done by preparing a report that summarizes and analyzes all data and making recommendations when required.

Steps in conducting a work sampling study

the work environment involves the physical geographical location as well as the immediate surroundings of the workplace, such as a construction site or office building

work environmentTypically involves other factors relating to the place of employment, such as the quality of the air, noise level, Additional perks and benefits of employment such as free childcare or unlimited coffee, or adequate parking.

Work environment:An industrial safety system is a countermeasure crucial in any hazardous plants such as oil and gas plants and nuclear plants. They are used to protect human, plant, and environment in case the process goes beyond the control margins. As the name suggests, these systems are not intended for controlling the process itself but rather protectionIndustrial safety