PRODUCTION PLANNING AND CONTROL CHAPTER 4: FACILITY CAPACITY, LOCATION AND LAYOUT Facility planning o How much long

g range production is needed o When additional capacity is needed o Where production facilities should be located o Layout & characteristics of the facilities 4.1: Long Range Capacity Planning Activities involved

1. 2. 3. 4.

Estimating the capacities of the present facilities Forecasting the long-range future capacity needs Identifying and analysing sources of capacity to meet future demands Selecting from among the alternative sources of capacity

Definition of production capacity

Production capacity Sustainable practical capacity

The maximum production rate of an organisation The greatest level of output a plant can maintain within the framework of a realistic work schedule, taking account of normal downtime, and assuming sufficient availability of inputs to operate the machinery and equipment in place

Measurement of capacity o Single or few similar product Output Rate Capacity, e.g. cars per month, tons of coal per day o Mix products Aggregate Unit Of Capacity where various output are converted to common unit e.g. tons per hour, sales dollar per month, etc. Forecasting capacity demand

 Ways of changing capacity Type of Capacity Change Expansion Ways of accomodating Long-Range Capacity Changes 1. Subcontract with other companies to become suppliers 2. Acquire other companies, facilities, etc. 3. develop sites, build buildings etc. 4. expand or modify exisiting facilities 5. reactivate facilities on standy status 1. Sell off existing facilities, sell inventories, and lay off or transfer employees 2. place facilites on standby status 3. develop and phase in new products

Reduction

Analysing Capacity-Planning decision o Use break-even analysis o Decision tree analysis

4.2: Facility Location Very important usually involve long and costly studies Factors affecting location decisions Domestic or international Regional decision Community decision taxes and incentives, etc. Site selection transportation, facitilities, etc.

4.3: Facility Layout Means planning for the location of all machines, utilities, employee workstations, customer servie areas, material storage areas, aisles, rest rooms, lunch room, etc. within a building. In process planning processing machinery is designed in conjuction with product design Facility layout physical arrangement of these processes within and round buildings, including space necessary for operation and support function Examples of objectives of facility layouts (Table 5.6) 4.4: Manufacturing Facility Layout Central focus to minimise the cost of processing, transporting, and storing materials throughout the production system Material Handling E.g. of material used raw material, purchased components, finished goods, scrap & waste Material would vary in size, shape, chemical properties, & other special features Material Handling System: - the entire network of transportation that receives materials, stores materials in inventories, moves them about between processing points with and between buildings, and finally deposits the finished products into vehicles that will deliver them to customers Material handling principles (Table 5.7) Materials handling euipment (Table 5.8) 4 basic types of layout: o Process o Product o Cellular manufacturing (CM) o Fixed position

Process layouts Also known as functional layout or job shops Designed to accommodate variety in product designs & processing steps Suitable to be used for a manufacturing facility that produces a variety of custom products in relatively small batches Using general purpose machines can be changed over rapidly to new operations for different product designs Machines are arranged according to types of processes, e.g. machining dept., assembly dept., painting dept. etc. Workers must be able to change and adapt quickly to various operations and different products produced Workers are normally higly skilled The products are in the production system for a relatively long periods of times, and large in-process inventories usually are present Product layouts Also called production lines or assembly lines Are designed to accommodate only a few product designs Allow a direct material flow through Used specialised machinery, and changeover requires a long down time and high cost Workers repeatedly perform a narrow range of activities on only a few product deisgns Skill, training and supervision required is small Cellular manufacturing layouts Machines are grouped in cells, and the cells function somewhat like a product layout island within a larger job shop or process layout Each cell in CM is to produce a single parts family a few parts with common characteristics usually require same machines with similar settings Fixed-position layouts Locate the product in a fixed position, and transport the workers, matl., machines, etc. to and from the product E.g. ship construction, large aircraft, bridge, etc. Used when product is very bulky, large, heavy or fragile minimise th product movement Table 5.9: Traditional facility layouts versus Modern Layouts

FACILTY LAYOUT Facility layout refers to the arrangement of machines, department, workstations, storage areas, aisles, common area, etc. within an existing or proposed facility. The basic objective is to ensure a smooth flow or work, material, people and information. Facility layout decisions affect quality and competitiveness. Effective layout should: o Minimize material handling cost o Utilize space efficiently o Utilize labour efficiently o Eliminate bottlenecks o Eliminate waste and redundant movement o Others 3 basic layouts process, product & fixed-position 3 hybrid layouts cellular layouts, FMS & mixed-model assembly Process layouts Also know as functional layout Group similar activities together according to the process they perform. E.g. as shown in figure below Characteristics: intermittent operation, service shops, job shops, or batch production, serve different customer with different needs. Equipment: general purpose, workers are skilled at operating the equipment in their particular department. Advantage: flexibility, disadvantage: inefficiency Need flexible material handling system, able to follow multiple paths.
Lathe Dept.
L L L L L L L L L L

Mill Dept.
M M M M

Drilling department
D D D D D D D D D D

A process layout in manufacturing

Griding dept. Receiving & supplying

A

Painting dept.
A A

Assembly 6

Womens Sportswear Womens dresses Womens acessories

Shoes

Housewares A process layout in services

Cosmetics & Jewellery Entry and display area

Children department Mens department

Product layout Also known as assembly line. Arrange the activities according to the sequence of operations for a particular product or services. The flow is orderly and efficient, moving from one workstation to another, using special/dedicated machinery. Suitable for mass production and repetitive operation where demand is high. The product is made for general market. Advantange: efficient and easy to use. Disadvantage: inflexibility.
IN

OUT

Product layout vs process layout 1 2 Description Type of process Product layout Sequential arrangement of activities Continuous, mass production, mainly assembly Standardised, made to stock Stable High Special purpose Process layout Functional grouping of activites Intermittent, job shop, batch production, mainly fabrication Varied, made to order Fluctuating Low General purpose
7

3 4 5 6

Product Demand Volume Equipment

7 8

Workers Inventory

9 Storage space 10 Material handling 11 12 13 14 Aisles Scheduling Layout decision Goal

Limited skills Low in-process, high finished goods Small Fixed path (conveyor) Narrow Part of balancing Line balancing Equalize work at each station efficiency

15 Advantage

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

Fixed Position layout Are used for projects in which the product cannot be moved, e.g. ships, and houses. Product remains stationary for the entire manufacturing cycle. The equipment, workers, materials, and other resources are brought to the production site. Commonly used for big or special project. Designing process layouts Process layout objective: minimize material handling cost. Unit load: the quantity in which material is normally moved. Block diagramming tries to minimize nonadjacent loads. A block diagram is a type of schematic layout diagram that includes space requirements Muthers grid is a format for displaying manager preferences for department locations. Relationship diagrams is a schematic diagram that uses weighted lines to denote location preference.

Designing product layouts Product layout objective: balance the assembly line. Line balancing tries to equalize the amount of work at each workstation. Line balancing: o Operates under two constraints: precedent requirement o Cycle time o Precedent requirement: are physical restrictions on the order in which operations are performed. o Cycle time: the maximum amount of time a product is allowed to spend at each workstation. o Desired cycle time, Cd = (production time available) Desired units of output o E.g. a company wanted to produce 120 units in an 8-hour day. The cycle time necessary to achieve the production quota is: Cd = (8 hours x 60 mins/hour) / (120 units) = 4 minutes o Cycle time can also be viewed as the time between completed items rolling off the assembly line. o Consider a three-station assevmly line shown here:
1 2 3

4 mins 4 mins

4 mins

Flow time = 4+4+4 = 12 mins Cycle time = max {4,4,4} = 4 mins o Actual cycle time is the macimum workstation time on the line. It differs from the desired cycle time when the production quota does not match the maximum output attainable by the system. o Sometimes the production quota cannot be achieved because the time required for one work element is too large. o To correct the situation, the quota can be revised downward or parallel stations can be set up for the bottleneck element. o Line balancing is basically a trial-and-error process. o

HYBRID LAYOUTS: Cellular layouts Group dissimilar machines into work centers (called cells) that process families of parts with similar shapes or processing requirements.

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