Om Module II Layout

AMITY GLOBAL BUSINESS SCHOOL
Bangalore
MBA, Semester 2
Operations Management
Ms. Aarti Mehta Sharma
Bangalore
Facility Layout
Bangalore
Facilities Layout
The configuration of departments, work centers, and equipment, with particular emphasis on movement of work (customers or materials) through the system This could be for new plants or could be Improvements in layouts already in use to introduce new methods and improvements in manufacturing procedures.
3
Bangalore
Importance of Layout Decisions

Requires substantial investments of money and effort Involves long-term commitments Has significant impact on cost and efficiency of operations
4
Bangalore
Objectives of a good layout

Provide enough production capacity Reduce material Handling costs Reduce Congestion Reduce accidents / hazards to personnel Utilize labor efficiently Provide for volume and product flexibility Provide ease of supervision Allow ease of maintenance Allow high machine / equipment utilisation The arrangement should be congruent with the flow of materials Sequence of equipments In addition to floor space, the vertical space should also be considered.
5
Bangalore
Costs
Cost of movement of materials from one work area to another 6 Cost of space Cost of production delays, if any. Cost of spoilage of materials Cost of labor dissatisfaction and health risks Cost of changes, if any Cost of customer dissatisfaction due to poor service
Bangalore
Basic Layout Types

Product layouts Process layouts
7
Fixed-Position layout
Cellular Manufacturing Combination layouts
Bangalore
Product layout Layout that uses standardized processing operations to 8 achieve smooth, rapid, high-volume flow Suitable for assembling operations eg. Automobile industry No. of equipment large Volume of production large Variety of products is low ; Two products ---- two product layouts Flow of materials Sequence of equipments
Bangalore
Product Layout
Raw materials
Material and/or labor Station 1 drilling Material and/or labor Station 2 machining Material and/or labor Station 3
Heating
Station 4
Painting
Finished item
Material and/or labor
Used for Repetitive or Continuous Processing
Bangalore
10
Wine mfg
Bangalore
11
Pizza
Bangalore
12
Bangalore
Advantages of Product Layout

High rate of output Low unit cost Labor specialization not high Low material handling cost High utilization of labor and equipment Established routing and scheduling Routing accounting and purchasing
13
Bangalore
Disadvantages of Product Layout

Creates dull, repetitive jobs Poorly skilled workers may not maintain equipment or quality of output Fairly inflexible to changes in volume Highly susceptible to shutdowns Needs preventive maintenance Individual incentive plans are impractical
14
Bangalore
Process Layout / Job Shop production

15
Equipment performing similar functions is grouped together Volume of manufacturing is low Variety of products ( each customer is unique) Example : Customised Cars
Bangalore
Process Layout
Process Layout (functional)
Drilling
Heating
16
Painting
Casting
Machining
Packaging
Used for Intermittent processing Job Shop or Batch
Bangalore
Process Layout
Milling
17
Assembly & Test
Grinding
Drilling
Plating
Process Layout - work travels to dedicated process centers
Bangalore
18
Bangalore
222
444
Mill
222 111 444
222
19
Drill
1111 2222
Grind
3333
111 333 111 333
Assembly
111
Lathes
Heat treat
Gear cutting
111 444
Exhibit 8.2GLOBAL AMITY
Process Layout for a Machine Shop

Bangalore
BUSINESS SCHOOL
20
Bangalore
Advantages of Process Layouts

21
Can handle a variety of processing requirements Not particularly vulnerable to equipment failures Equipment used is less costly Possible to use individual incentive plans
Bangalore
Disadvantages of Process Layouts

In-process inventory costs can be high Challenging routing and scheduling Equipment utilization rates are low Material handling slow and inefficient Complexities often reduce span of supervision Special attention for each product or customer Accounting and purchasing are more involved
22
AMITY GLOBAL Fixed BUSINESS SCHOOL
Position Layout
Bangalore
The position of product is fixed Tools, Men and materials come to the product Manufacture of Large products such as locomotives, boilers, ships, hospital etc
23
Bangalore
Advantages
Men and machines can be used for a wide variety of 24 operations producing different products Investment on layout is very small Worker identifies himself with the product and feels pride in it. Cost and difficulty of transporting a bulky product is avoided
Bangalore
Cellular Layouts
25
Layout in which machines are grouped into a cell that can process items that have similar processing requirements The grouping into part families of items with similar design or manufacturing characteristics A complete product or part of a product is manufactured
Bangalore
26
Bangalore
27
AMITY GLOBAL Process Flows BUSINESS SCHOOL
before the Use of GT Cells Bangalore
28
AMITY GLOBAL Process Flows BUSINESS SCHOOL
after the Use of GT Cells Bangalore
29
One worker cell

Machine 2
Bangalore
Machine 1
Machine 3
30
Materials in
Finished goods out Machine 4
Machine 5
Bangalore
31
Bangalore
Advantages
Key enabler of increased production velocity and flexibility 32 The reduction of capital requirements. Reduction of over production Products move through the manufacturing process one-piece at a time, at a rate determined by customers' needs Shifts worker responsibilities from watching a single machine, to managing multiple machines in a production cell.
Bangalore
Service facility Layout

Service facilities exist to bring together customers and 33 facilities ( banks, hospitals ). Banks are designed around customer receiving and servicing Hospitals are designed around technology( X ray / radiology / pathology machines), processing of patients (receiving patients, settling accounts ) and operation efficiency ( surgery, gynecological, patient recovery). Easy entrance and parking space are an essential requirement Process Layout
Bangalore
Arrangement of other facilities

Receiving Department - raw materials (vendor oriented services) Shipping Department - finished goods are delivered to customers End of the plant Store room - raw materials, finished goods, partly finished goods and supplies are stored - close to the production centre
34

Inspection - of purchased material (raw materials, parts,supplies) - of work in process - of finished groups At every stage, every department Maintenance - of machinery / building - heating / air conditioning - machine and equipment installation - safety devices / fire protection - collection and disposal of waste / garbage / refuse
Bangalore
35

Employee Facilities - time clocks - toilets - drinking water - cafeteria - safety measures Other Facilities - power generators - water filters - chilling plant ( close to the boiler room )
Bangalore
36

Planning
Bangalore
By in house engg or planning department 37 Depends upon the product Depends upon volume Determine process Determine flow of materials Decide upon equipment( also for material handling) and work centres Determine storage requirement

Decide upon labor direct / indirect Draw building specifications, floor plan Preparation of detailed layout planning Approval from Management Preparation of work schedule Construction starts
Bangalore
38
Bangalore
Tools and Techniques

Templates Line Balancing Analysing with Computers Travel chart method Load Distance method Systematic Layout Planning
39
Load distance analysis method
Bangalore
For comparison of alternative layouts 40 Multiply actual distance moved and load (units) Try to minimize the same Illustration Two layouts A and B are given Data consists of the facility's products, distance between depts. and travel between depts. Determine the best layout
Bangalore
Layout A 8 4 3 7 Layout B
10 1
2 9
5 6
41
7
4
1
10
9
2
6
5
3
8

Dept. movement
combination
Bangalore
Dist bet dept(ft) Dept
movement
combination
15 17 19
A 30
10 10
B 30
10 10
39 45 47
Dist bet dept (ft) A B 30 20

42
30 10
30 10
1 - 10
25 26 2 10 3-6
10
10 20 10 40
10
10 20 10 10
4 10
56 69 78 8 - 10
10
10 10 20 20
10
10 10 50 30

Products Department Processing Sequence
Bangalore
No. of products processed per month

43
A B C
1-5-4-10 2-6-3-9 2-10-1- 9
1000 2000 3000
D
E F
1-7-8-9
2-5-6-9 1-7-4-10
1000
2000 4000

Product Load / pm Distance per product Load * Distance Layout A Layout B Layout A
Bangalore
Layout B
A B C D E
1000 2000 3000 1000 2000
70 90 30 50 30
70 50 30 90 30
70,000 1,80,000 90,000 50,000 60,000
70,000
44
1,00,000 90,000 90,000 60,000
F
Total
4000
30
30
1,20,000
5,70,000
1,20,000
5,30,000
Bangalore
Systematic Layout Planning

Service facilities Material flow not critical Develop a relationship chart / Richard Muthers half matrix / fish diagram Chart rates the relative importance of locating one dep't close to another Ratings are indicated by code letters a,e,i,o,u,x Developed by trail and error
45
Reasons (optional)
Reason Type of customer Ease of supervision
Bangalore
Code 1 2
46
3
4 5
Common personnel
Contact necessary Share same space
psychology
Bangalore
Value A E I
Closeness Absolutely Necessary Especially Important Important
Line code
47
O
U X
Ordinary
Unimportant Undesirable
Bangalore
48
Bangalore
Nearness Diagram
49
Credit Toy Wine Camera Candy
Bangalore
4
50
AMITY GLOBAL Assembly BUSINESS SCHOOL
line balancing
Bangalore
Typically, sequence of tasks required to assemble a product is 51 dictated by its design. For many assemblies that consist of a large number of tasks, there are a large number of ways to group tasks together into individual workstations while still ensuring the proper sequence of work. Assembly line balancing is a technique to group tasks among workstations so that each work-station has, ideally, the same amount of work.
line balancing
Bangalore
Example: if it took 90 seconds to assemble a pen, and the work was divided evenly among three workstations, then each 52 workstation would be assigned 30 seconds of work content per unit.
Basic assumptions: No idle time per workstations; and the output of the first workstation immediately becomes input to the next workstation. In the current example, there are no bottleneck workstations, and the flow of pens through the line is continuous.
line balancing
Bangalore
Objective of assembly line balancing is to minimize the imbalance among workstations while trying to achieve a 53 desired output rate. So either, one can minimize the number of workstations for a given production rate or maximize the production rate for a given number of workstations. Though typically carried out at the design stage of the assembly line, line balancing is also required whenever there is a change in product design and/or new product introduction.

1. 2.
line balancing
Bangalore
3.
Input for assembly line balancing: A set of tasks to be performed and the time required to perform each task The precedence relations among the tasks- that is, the sequence in which tasks must be performed, and The desired output rate or forecast of demand for the assembly line.
54
The first two requirements can be obtained from the product design documents The third one is specified by the management.
AMITY GLOBAL Assembly BUSINESS SCHOOLline

balancing: Example Bangalore
An activity consisting of three tasks: A, B and C. Task A is first, and takes 0.5 minutes Task B is next, and takes 0.3 minutes Task C is the last, and takes 0.2 minutes.
55
Since, all the tasks must be performed to complete one part, total time required to complete one part is 0.5+0.3+0.2 = 1 minute.
AMITY GLOBAL Assembly BUSINESS SCHOOLline
balancing: Example Bangalore
Suppose that one worker performs all three tasks (sequentially). Then in an 8-hour shift, the worker could produce 480 parts/day.
56
Line Balancing
Bangalore
Assembly line study Equally divides the work among workers No. of employees is minimised Most common is a moving conveyor that passes a series of work stations in a uniform time interval called workstation time cycle Assembly line balancing is the assigning of tasks to a series of workstations in such a manner that each workstation has no more than can be done in the work station time Idle time across all workstations is minimized
57
Bangalore
Precedence relationship : the order in which tasks must be 58 performed in the assembly process. Precedence Diagram : circles represent tasks; arrows indicate the order of task performance Workstation cycle time : = production time per day reqd output per day (in units) Nt (no. of workstations) = sum of task times cycle time
Bangalore
Assign tasks to workstation 1, 2, 3 . Na = actual no. of workstations Efficiency (idle time is minimised) = sum of task times(T) no. of workstations(Na) workstation cycle time
59
Illustration
Bangalore
The Model J Wagon is to be assembled on a conveyor belt. 500 wagons are required per day. Production time per day is 420 minutes, and the assembly steps and times for the wagon are given in the table. Find the balance that minimizes the number of workstations, subject to cycle time and precedence constraints.
60
Bangalore
61
ASSEMBLY STEPS AND TIMES FOR MODEL J WAGON
AMITY GLOBAL BUSINESS SCHOOL Task Task Description

Time
Tasks that must precede
Bangalore
A B C D E F G H I
45 11 9 50 15 12 12 12 12
Position rear axle Hand fasten four screws to nuts Tighten rear axle Position front axle Tighten front axle
A B
D C C E E
62
Position rear wheel # 1;fasten hubcap

Position rear wheel # 2;fasten hubcap Position rear wheel # 3;fasten hubcap Position rear wheel # 4;fasten hubcap Position wagon handle shaft on front axle assemby Tighten bolt and nut
J K
8 9 195
F,G,H,I J
Precedence GraphBangalore
F
63
C
G
H I
Bangalore
64
C = production time per day = 60 s * 420 min = 50.4 output per day 500 Convert to seconds as task time is in seconds
Minimum no. of workstations required = 195 / 50.4 = 3.87 = 4

Station 1 Station 2 Station 3 Task A D B C F G Station 4 E H I J Station 5 K Task time 45 50 11 9 12 12 15 12 12 8 9
Remaining time 5.4 idle 0.4 idle 39.4 30.4 18.4 6.4 35.4 23.4 11.4 3.4idle 41.4 idle
Bangalore
65
Bangalore
Efficiency = T = 195 = 0.77 NaC 5 * 50.4
66
77 %
Bangalore
Quality of a good layout

Minimise materials handling cost Effective use of available area Minimisation of production delays Improved Quality Control / Avoidance of unnecessary and costly changes Minimum Equipment Investment Avoidance of bottlenecks Better production control Better Supervision Improved utilisation of labor Improved Employee Morale
67
Bangalore
2. A company wants to add a new wing to its present manufacturing shop to manufacture certain products. The68 two alternative layouts being considered are as below : LAYOUT A 1 2 4 5 6 3 7 LAYOUT B 2 5 6 3 1 4 7

Trips between departments 12 Distances between Departments Layout A 24 Layout B 50
Bangalore
69
13
14 23 24
24
38 44 30
30
46 20 72
34
45 56 57
44
50 50 50
52
40 44 60
6-7
40
40
Bangalore
Sequence of processing is given below. Use load distance analysis to determine best layout
Products
P1 P2 P3 P4
Sequence
1-2-3-4-5-6-7 1-2-4-5-6-7 1-3-4-5-6-7 1-3-4-5-7
Batch size
1400 200 1200 300
70
P5
1-4-5-6-7
200
Bangalore
3. Arrange six departments 1,2,3,4,5 and 6 in the facility
outline shown below so that the nearness priorities shown in the TABLE are satisfied.
71
Bangalore
Deptt 1. Reception 2.X Ray 3. Surgery
4 200 300 100
5 0 0 0
6
72
500 5 10
10 8 400
4.Examining rooms
5.Lab 6. Nurses station
15
3
Bangalore
73
Department 1 Department 2 Department 3 Department 4 Department 5 Department 6

4.
Bangalore
X Agri products is planning to set up a regional warehouse in north eastern Maharashtra. M/s Shivajirao & Co..M/s 74 Patil Farms,M/s Aras & Brothers, and M/s Jambhekar &Co. are its main clients in that area. The business volume with the above four is roughly in the ratio 5:4:3:2 . The distances of the clients from Lakshmipur, a town in that area : Shivajirao 50 km North Patil 100 km North east Aras 75 km South West Jambhekar 45 km east Where, wrt Lakshmipur, should X Agri Poducts locate their warehouse ?
Bangalore
5. Manufacturing Engineers at Suny Manufacturing were working on a new remote controlled Monster Truck. They hired a production consultant to help them determine the best type of production process to meet the forecasted demand fo this new product. The consultant recommended that they use an assembly line that will produce 600 Monster Trucks per day to meet the demand forecast.
75
Bangalore
The workers of the plant work 8 hours per day. The task information for the new Monster Truck is given in the table :
76

Task A B C D E F G H 28 13 35 11 20 6 23 25
Task Time(in secs) Preceding Tasks
Bangalore
77
B A C D,E F F
I J K Total
37 11 27 236
G G,H I,J
Bangalore
Draw the precedence diagram What is the reqd cycle time ? Calculate Nt and Na
78
Bangalore
C= 60 * 480 / 600 = 48 s Nt= 236 /48 = 4.92 = 5 Na = 6
79

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AMITY GLOBAL BUSINESS SCHOOL

AMITY GLOBAL BUSINESS SCHOOL

AMITY GLOBAL BUSINESS SCHOOL

AMITY GLOBAL BUSINESS SCHOOL

Importance of Layout Decisions

AMITY GLOBAL BUSINESS SCHOOL

Objectives of a good layout

AMITY GLOBAL BUSINESS SCHOOL

AMITY GLOBAL BUSINESS SCHOOL

Basic Layout Types

AMITY GLOBAL BUSINESS SCHOOL

AMITY GLOBAL BUSINESS SCHOOL

Material and/or labor

Used for Repetitive or Continuous Processing

AMITY GLOBAL BUSINESS SCHOOL

AMITY GLOBAL BUSINESS SCHOOL

AMITY GLOBAL BUSINESS SCHOOL

AMITY GLOBAL BUSINESS SCHOOL

Advantages of Product Layout

AMITY GLOBAL BUSINESS SCHOOL

Disadvantages of Product Layout

AMITY GLOBAL BUSINESS SCHOOL

Process Layout / Job Shop production

AMITY GLOBAL BUSINESS SCHOOL

Used for Intermittent processing Job Shop or Batch

AMITY GLOBAL BUSINESS SCHOOL

Assembly & Test

Process Layout - work travels to dedicated process centers

AMITY GLOBAL BUSINESS SCHOOL

AMITY GLOBAL BUSINESS SCHOOL

222 111 444

111 333 111 333

Exhibit 8.2GLOBAL AMITY

Process Layout for a Machine Shop

AMITY GLOBAL BUSINESS SCHOOL

Advantages of Process Layouts

AMITY GLOBAL BUSINESS SCHOOL

Disadvantages of Process Layouts

AMITY GLOBAL Fixed BUSINESS SCHOOL

AMITY GLOBAL BUSINESS SCHOOL

AMITY GLOBAL BUSINESS SCHOOL

AMITY GLOBAL BUSINESS SCHOOL

AMITY GLOBAL BUSINESS SCHOOL

AMITY GLOBAL Process Flows BUSINESS SCHOOL

before the Use of GT Cells Bangalore

AMITY GLOBAL Process Flows BUSINESS SCHOOL

after the Use of GT Cells Bangalore

AMITY GLOBAL BUSINESS SCHOOL

One worker cell

Finished goods out Machine 4

AMITY GLOBAL BUSINESS SCHOOL

AMITY GLOBAL BUSINESS SCHOOL

AMITY GLOBAL BUSINESS SCHOOL

Service facility Layout

AMITY GLOBAL BUSINESS SCHOOL

Arrangement of other facilities

AMITY GLOBAL BUSINESS SCHOOL

AMITY GLOBAL BUSINESS SCHOOL

AMITY GLOBAL BUSINESS SCHOOL

AMITY GLOBAL BUSINESS SCHOOL

AMITY GLOBAL BUSINESS SCHOOL

Tools and Techniques

AMITY GLOBAL BUSINESS SCHOOL