Capacity and Facilities

Lecture Outline
Capacity Planning Basic Layouts Designing Process Layouts Designing Service Layouts Designing Product Layouts Hybrid Layouts

Capacity
Maximum capability to produce Affects product lead time Affects Customer responsiveness Affects Operating costs Affects firms ability to compete

Capacity planning
Capacity planning

establishes overall level of productive resources for a firm

3 basic strategies for timing of capacity expansion in relation to steady growth in demand (lead, lag, and average)

Capacity Expansion Strategies

Capacity (cont.)
Capacity increase depends on

volume and certainty of anticipated demand strategic objectives costs of expansion and operation % of capacity utilization that minimizes unit costs % of capacity held in reserve for unexpected occurrences

Best operating level

Capacity cushion

Economies of Scale
it costs less per unit to produce high levels of output

fixed costs can be spread over a larger number of units production or operating costs do not increase linearly with output levels quantity discounts are available for material purchases operating efficiency increases as workers gain experience

Best Operating Level

Average unit cost of output Economies of Scale Diseconomies of Scale Best Operating Level

Volume

Machine Objectives of Facility Layout

Arrangement of areas within a facility to:
Minimize material-handling costs Utilize space efficiently Utilize labor efficiently Eliminate bottlenecks Facilitate communication and interaction Reduce manufacturing cycle time Reduce customer service time Eliminate wasted or redundant movement Increase capacity Facilitate entry, exit, and placement of material, products, and people Incorporate safety and security measures Promote product and service quality Encourage proper maintenance activities Provide a visual control of activities Provide flexibility to adapt to changing conditions

BASIC LAYOUTS
Process layouts

group similar activities together according to process or function they perform arrange activities in line according to sequence of operations for a particular product or service are used for projects in which product cannot be moved

Product layouts

Fixed-position layouts

Process Layout: Interdepartmental Flow

Given

The flow (number of moves) to and from all departments The cost of moving from one department to another The existing or planned physical layout of the plant The best locations for each department, where best means maximizing flow, which minimizing costs

Determine

Process Layout: CRAFT Approach

It is a heuristic program; it uses a simple rule of thumb in making evaluations:

"Compare two departments at a time and exchange them if it reduces the total cost of the layout."

It does not guarantee an optimal solution CRAFT assumes the existence of variable path material handling equipment such as forklift trucks

CRAFT
Load input Initial layout Transportation cost Calculate dept centres Calculate cost of mat hand Make paired exchange If total cost decrease then repeat the process else stop

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 Accounts for the importance of having each department located next to every other department Is also guided by trial and error
Switching

Systematic Layout Planning

departments then checking the results of the closeness score

Process Layout in Services

Womens lingerie Shoes Housewares

Womens dresses

Cosmetics and jewelry

Childrens department

Womens sportswear

Entry and display area

Mens department

Manufacturing Process Layout

A Product Layout
In

Out

Comparison of Product and Process Layouts

Product
Description Description Sequential arrangement of activities Continuous, mass production, mainly assembly

Process

Type of process Type of

Product Product Demand Demand Volume Volume Equipment Equipment

Functional grouping of activities Intermittent, job shop, batch production, mainly fabrication Standardized, made Varied, made to to stock order Fluctuating Stable Low High General purpose Special purpose

Comparison of Product and Process Layouts

Product
Workers Workers Inventory Inventory Limited skills Low in-process, high finished goods Storage space Small Storage Material handling Fixed path (conveyor) Material handling Aisles Narrow Aisles Scheduling Part of balancing Scheduling Layout decision Layout decision Line balancing Goal Equalize work at each Goal station Advantage Efficiency Advantage

Process
Varied skills High in-process, low finished goods Large Variable path (forklift) Wide Dynamic Machine location Minimize material handling cost Flexibility

Fixed-Position Layouts
Typical of projects in which product produced is too fragile, bulky, or heavy to move Equipment, workers, materials, other resources brought to the site Low equipment utilization Highly skilled labor Typically low fixed cost Often high variable costs

Designing Process Layouts

Goal: minimize material handling costs Block Diagramming

minimize nonadjacent loads use when quantitative data is available based on location preference between areas use when quantitative data is not available

Relationship Diagramming

Block Diagramming
STEPS create load summary chart quantity in which calculate composite (two material is normally moved way) movements develop trial layouts Nonadjacent load minimizing number of distance farther nonadjacent loads than the next block

Unit load

Block Diagramming: Example

Load Summary Chart
1 2 3 FROM/TO DEPARTMENT

Department 1 1 2 3 4 5 60

2 100 100

3 50 200 50

4 50 40

50 60

Block Diagramming: Example (cont.)

2 2 1 1 4 3 2 3 1 1 3 4 3 2 5 5 5 4 4 5 200 loads 150 loads 110 loads 100 loads 60 loads 50 loads 50 loads 40 loads 0 loads 0 loads Nonadjacent Loads: 110+40=150 0
110 100 150 200

3 4

4
Grid 2 1

150 200 50 50 40 60 50 110 50 60

3 5

40

Block Diagramming: Example (cont.)

Block Diagram

type of schematic layout diagram; includes space requirements

(b) Final block diagram

(a) Initial block diagram

Relationship Diagramming

Schematic diagram that uses weighted lines to denote location preference Muthers grid

format for displaying manager preferences for department locations

Relationship Diagramming: Excel

necessary Relationship A Absolutely important E Especially I Important Diagramming: Example O Okay Production Offices Stockroom Shipping and receiving Locker room Toolroom U Unimportant X Undesirable

O U A U O

A O U O

I X O

E U

Relationship Diagrams: Example (cont.)

(a) Relationship diagram of original layout

Offices

Locker room

Shipping and receiving Key: A E I Production O U X

Stockroom

Toolroom

Relationship Diagrams: Example (cont.)

(b) Relationship diagram of revised layout

Stockroom Shipping and receiving

Offices

Toolroom

Production

Locker room

Key: A E I O U X

Computerized layout Solutions

CRAFT

Computerized Relative Allocation of Facilities Technique Computerized Relationship Layout Planning visual feedback allow user to quickly test a variety of scenarios integrated layout analysis available in VisFactory and similar software

CORELAP

PROMODEL and EXTEND

Three-D modeling and CAD

Designing Service Layouts

Must be both attractive and functional Types Free flow layouts

encourage browsing, increase impulse purchasing, are flexible and visually appealing encourage customer familiarity, are low cost, easy to clean and secure, and good for repeat customers both increase customer sightlines and exposure to products, while encouraging customer to circulate through the entire store

Grid layouts

Loop and Spine layouts

Types of Store Layouts

Designing Product Layouts

Objective

Balance the assembly line tries to equalize the amount of work at each workstation physical restrictions on the order in which operations are performed maximum amount of time a product is allowed to spend at each workstation

Line balancing

Precedence requirements

Cycle time

Cycle Time Example

production time available desired units of output (8 hours x 60 minutes / hour) (120 units)

Cd = Cd =

Cd =

480 120

= 4 minutes

Flow Time vs Cycle Time

Cycle time = max time spent at any station Flow time = time to complete all stations
1
4 minutes

2
4 minutes

3
4 minutes

Flow time = 4 + 4 + 4 = 12 minutes Cycle time = max (4, 4, 4) = 4 minutes

Efficiency of Line and Balance Delay

Efficiency Minimum number of workstations

E = nC a
where

t
i=1

N=

t
i=1

Balance delay

Cd

ti j n Ca Cd

= completion time for element i = number of work elements = actual number of workstations = actual cycle time = desired cycle time

total idle time of line calculated as (1 efficiency)

Line Balancing Procedure

1. 2. 3. 4. Draw and label a precedence diagram Calculate desired cycle time required for line Calculate theoretical minimum number of workstations Group elements into workstations, recognizing cycle time and precedence constraints 5. Calculate efficiency of line 6. Determine if theoretical minimum number of workstations or an acceptable efficiency level has been reached. If not, go back to step 4.

Assembly Lines Balancing Concepts

Question: Suppose you load work into the three work Question: Suppose you load work into the three work stations below such that each will take the corresponding stations below such that each will take the corresponding number of minutes as shown. What is the cycle time of number of minutes as shown. What is the cycle time of this line? this line?

Station 1

Station 2

Station 3

Minutes 6 7 3 per Unit Answer: The cycle time of the line is always determined Answer: The cycle time of the line is always determined by the work station taking the longest time. In this by the work station taking the longest time. In this problem, the cycle time of the line is 7 minutes. There problem, the cycle time of the line is 7 minutes. There is also going to be idle time at the other two work is also going to be idle time at the other two work stations. stations.

Example of Line Balancing

Youve just been assigned the job a setting up an electric fan assembly line with the Task following tasks: Time (Mins) Description Predecessors
A B C D E F G H 2 1 3.25 1.2 0.5 1 1 1.4 Assemble frame Mount switch Assemble motor housing Mount motor housing in frame Attach blade Assemble and attach safety grill Attach cord Test None A None A, C D E B F, G

Example of Line Balancing: Structuring the Precedence Diagram

Task Predecessors A None B A C None D A, C A B Task Predecessors E D F E G B H E, G G H C D E F

Example of Line Balancing: Precedence Diagram

Question: Which process step defines the Question: Which process step defines the maximum rate of production? 2 1 1 maximum rate of production? 1.4 A B G H C 3.25 D 1.2 E .5 F 1

Answer: Task C is the cycle time of the line and Answer: Task C is the cycle time of the line and therefore, the maximum rate of production. therefore, the maximum rate of production.

Example of Line Balancing: The Bottleneck

Productiontime per day 420 mins Max Produc tion = = = 129 units Bottleneck time 3.25 mins/ unit

Task A B C D E F G H

Time (Mins) 2 1 3.25 1.2 0.5 1 1 1.4

Description Assemble frame Mount switch Assemble motor housing Mount motor housing in frame Attach blade Assemble and attach safety grill Attach cord Test

Predecessors None A None A, C D E B E, G

Example of Line Balancing: Determine Cycle

Time

Answer: Answer:

Question: Suppose we want to assemble Question: Suppose we want to assemble 100 fans per day. What would our cycle 100 fans per day. What would our cycle time have to be? time have to be?
Production time per period Required C ycle Time, C = Required output per period

420 mins / day C= = 4.2 mins / unit 100 units / day

Example of Line Balancing: Determine Theoretical Minimum Number of Workstations

Question: What is the theoretical minimum number of Question: What is the theoretical minimum number of workstations for this problem? workstations for this problem?
Theoretical Min. Number of Workstations, N t Sum of task times (T) Nt = Cycle time (C)

Answer: Answer:

11.35 mins / unit Nt = = 2.702, or 3 4.2 mins / unit

2 A

1 B

1 G

1.4 H F 1

C 3.25

D 1.2

E .5

Task A C D B E F G H

Followers 6 4 3 2 2 1 1 0

Time (Mins) 2 3.25 1.2 1 0.5 1 1 1.4

Station 1

Station 2

Station 3

2 A

1 B

1 G

1.4 H F 1

C 3.25

D 1.2

E .5

Task A C D B E F G H

Followers 6 4 3 2 2 1 1 0

Time (Mins) 2 3.25 1.2 1 0.5 1 1 1.4

Station 1 A (4.2-2=2.2)

Station 2

Station 3

2 A

1 B

1 G

1.4 H F 1

C 3.25

D 1.2

E .5

Task A C D B E F G H

Followers 6 4 3 2 2 1 1 0

Time (Mins) 2 3.25 1.2 1 0.5 1 1 1.4

Station 1 A (4.2-2=2.2) B (2.2-1=1.2) G (1.2-1= .2) Idle= .2

Station 2

Station 3

2 A

1 B

1 G

1.4 H F 1

C 3.25

D 1.2

E .5

Task A C D B E F G H

Followers 6 4 3 2 2 1 1 0

Time (Mins) 2 3.25 1.2 1 0.5 1 1 1.4

Station 1 A (4.2-2=2.2) B (2.2-1=1.2) G (1.2-1= .2) Idle= .2

Station 2 C (4.2-3.25)=.95

Station 3

2 A

1 B

1 G

1.4 H F 1

C 3.25

D 1.2

E .5

Task A C D B E F G H

Followers 6 4 3 2 2 1 1 0

Time (Mins) 2 3.25 1.2 1 0.5 1 1 1.4

Station 1 A (4.2-2=2.2) B (2.2-1=1.2) G (1.2-1= .2) Idle= .2

Station 2 C (4.2-3.25)=.95

Station 3

Idle = .95

2 A

1 B

1 G

1.4 H F 1

C 3.25

D 1.2

E .5

Task A C D B E F G H

Followers 6 4 3 2 2 1 1 0

Time (Mins) 2 3.25 1.2 1 0.5 1 1 1.4

Station 1 A (4.2-2=2.2) B (2.2-1=1.2) G (1.2-1= .2) Idle= .2

Station 2 C (4.2-3.25)=.95

Station 3 D (4.2-1.2)=3 E (3-.5)=2.5

Idle = .95

2 A

1 B

1 G

1.4 H F 1

C 3.25

D 1.2

E .5

Task A C D B E F G H

Followers 6 4 3 2 2 1 1 0

Time (Mins) 2 3.25 1.2 1 0.5 1 1 1.4

Station 1 A (4.2-2=2.2) B (2.2-1=1.2) G (1.2-1= .2) Idle= .2

Station 2 C (4.2-3.25)=.95

Station 3 D (4.2-1.2)=3 E (3-.5)=2.5 F (2.5-1)=1.5

Idle = .95

2 A

1 B

1 G

1.4 H F 1

C 3.25

D 1.2

E .5

Task A C D B E F G H

Followers 6 4 3 2 2 1 1 0

Time (Mins) 2 3.25 1.2 1 0.5 1 1 1.4

Station 1 A (4.2-2=2.2) B (2.2-1=1.2) G (1.2-1= .2) Idle= .2

Station 2 C (4.2-3.25)=.95

Station 3 D (4.2-1.2)=3 E (3-.5)=2.5 F (2.5-1)=1.5 H (1.5-1.4)=.1 Idle = .1

Idle = .95

Example of Line Balancing: Determine the Efficiency of the Assembly Line

Sum of tas times (T) k Efficiency= Actual num of wor ber kstations (Na) x Cyc time (C) le

11.35 mins unit / Efficiency = =.901 (3)(4.2min / unit) s

Line Balancing: Example

WORK ELEMENT A B C D Press out sheet of fruit Cut into strips Outline fun shapes Roll up and package PRECEDENCE A A B, C TIME (MIN) 0.1 0.2 0.4 0.3

B
0.1

0.2

A C
0.4

D 0.3

Line Balancing: Example (cont.)

WORK ELEMENT A B C D Press out sheet of fruit Cut into strips Outline fun shapes Roll up and package PRECEDENCE A A B, C TIME (MIN) 0.1 0.2 0.4 0.3

Cd =

40 hours x 60 minutes / hour 2400 = = 0.4 minute 6,000 units 6000 0.1 + 0.2 + 0.3 + 0.4 1.0 = = 2.5 3 workstations 0.4 0.4

N=

Line Balancing: Example (cont.)

WORKSTATION 1 2 3 ELEMENT A B C D REMAINING TIME 0.3 0.1 0.0 0.1 REMAINING ELEMENTS B, C C, D D none Cd = 0.4 N = 2.5

B
0.1

0.2

A C
0.4

D 0.3

Line Balancing: Example (cont.)

Work station 1 Work station 2 Work station 3

A, B
0.3 minute

C
0.4 minute

D
0.3 minute

Cd = 0.4 N = 2.5

E=

1.0 0.1 + 0.2 + 0.3 + 0.4 = = 0.833 = 83.3% 1.2 3(0.4)

Computerized Line Balancing

Use heuristics to assign tasks to workstations

Longest operation time Shortest operation time Most number of following tasks Least number of following tasks Ranked positional weight

Hybrid Layouts
Cellular layouts

group dissimilar machines into work centers (called cells) that process families of parts with similar shapes or processing requirements reorders part routing matrices to identify families of parts with similar processing requirements automated machining and material handling systems which can produce an enormous variety of items processes more than one product model in one line

Production flow analysis (PFA)

Flexible manufacturing system

Mixed-model assembly line

Cellular Layouts
1. Identify families of parts with similar flow paths 2. Group machines into cells based on part families 3. Arrange cells so material movement is minimized 4. Locate large shared machines at point of use

Original Process Layout

Assembly

4 5 2 1

7 8 10

12 11

Raw materials

Part Routing Matrix

Parts A B C D E F G H
Figure 5.8

1 x

2 x

Machines 4 5 6 7 x x x x x x x x

8 9 10 11 12 x x x x x x x x x

x x x x x

x x

x x

x x

Revised Cellular Layout

Assembly 8 10 9 12 11 4 Cell 1 Cell 2 6 Cell 3 7 2 1 3 5

A B C Raw materials

Reordered Routing Matrix

Parts A D F C G B H E 1 x x x 2 x x 4 x x x Machines 8 10 3 6 x x x x x x x x x x x x x x x x x x x x x x 9 5 7 11 12

Advantages and Disadvantages of Cellular Layouts

Advantages

Disadvantages

Reduced material handling and transit time Reduced setup time Reduced work-inprocess inventory Better use of human resources Easier to control Easier to automate

Inadequate part families Poorly balanced cells Expanded training and scheduling of workers Increased capital investment

Automated Manufacturing Cell

Source: J. T. Black, Cellular Manufacturing Systems Reduce Setup Time, Make Small Lot Production Economical. Industrial Engineering (November 1983)

Flexible Manufacturing Systems (FMS)

FMS consists of numerous programmable machine tools connected by an automated material handling system and controlled by a common computer network FMS combines flexibility with efficiency FMS layouts differ based on

variety of parts that the system can process size of parts processed average processing time required for part completion

Full-Blown FMS

Mixed Model Assembly Lines

Produce multiple models in any order on one assembly line Issues in mixed model lines

Line balancing U-shaped lines Flexible workforce Model sequencing

Balancing U-Shaped Lines

Precedence diagram: A B C

Cycle time = 12 min

E (b) Balanced for a U-shaped line

A,B

(a) Balanced for a straight line

A,B C,D E

9 min Efficiency =

12 min

3 min

24 24 = = .6666 = 66.7 % 3(12) 36

E

C,D

Efficiency =

24 24 = = 100 % 12 min 2(12) 24

12 min