ENG408 Lecture01

Facilities Planning
ENG 408
http://groups.yahoo.com/group/asif_fp
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Are you in the right room

Course Code: ENG 408 Course Title: Facilities Planning
Prerequisites:
: ENG 407 Industrial Management
Instructor: Asif Iqbal Day: Saturday Timing: 2.00 ---5. 00pm

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Overview of todays class
Administrative Information.
Overview of the course. Summary (student) Team formation
A Brief Introduction
Name: Qualification: Asif Iqbal B.E.(E) NED MS (CSC) DePaul, Chicago USA Major : Data Communication Minor : Software Engineering Professional exp:
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Contact Information
Instructor : Asif Iqbal Email: asif_iqbal20@msn.com Phone: 4979415 Office: Faculty Office(see front desk) Class hours: I prefer communication via email I check email couple of times a day I will send email to the class in the event of last minute changes or announcement
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Attendance
Attendance will be taken during the first five minutes, late comers will be allowed in the class within the attendance period but will me marked as absent. Students are encouraged to consult internet and reference books to make their weekly team reports and presentations informative and interesting. We hate rework and will not offer make-up mid terms and final exam. Students are expected to be attentive, participative and interactive in the class and team meetings. Each student should register at.
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Assessment
Textbook: Tompkins et al, 2003, Facilities Planning, 3rd Edition, Wiley, New York.
Textbook
Reference: Management (A Total Quality Perspective) by Bounds, Dobbins and Fowler, South-Western College Publishing (1995). Production & Operations Management (Manufacturing & Services) by Chase, Aquilano and Jacobs, 8th International Edition, Irwin/McGraw-Hill (1998). Operational Management (Strategy & Analysis) by Krajewski & Ritzman, 7th Edition, Addison Wesley Publishing Company (1999). Total Quality Management by Besterfield et. al. , 3th Edition, Prentice Hall of India (2003).
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Expectations
The course requires that you actively engage the
material on your own. you should not only read the book ,but also search the web. Spend at least a few hours a week just playing with the Internet to search information of your interest field.
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Tell me about yourself

Its the time to market yourself
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Definition of facility
facility:
and Facility Planning :
a real property structure with attachments and installations that make it usable for an assigned purpose; a building fitted for a specific operational purpose. The term is sometimes used to promote an available building and the property that goes along with it. The BOMI Institute glossary defines facility with a list of some specific real property items.
http://www.bomi-edu.org/
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FACILITIES: Examples
Production: any discrete parts or process industry facilities Health care: hospitals, clinics, rehab. centers, nursing home Education: schools, colleges, day care centers, libraries Food: restaurants, fast-food places, banquet halls Commercial/Residential: shopping malls, office buildings, banks,
houses, hotels, motels
Government/Public Services: court house, IRS (Internal Revenue Service) , INS (immigration and naturalization service, post office, Military: barracks, control rooms
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FACILITIES: Examples
Transportation: airports, train stations, bus terminals Public assembly: stadium, auditoriums, theaters Religious: temples, chapels, churches, mosques Fixed assets like building structures and inanimate resources that support the operations of a given activity. Facilities put together with humans, $ and/or materials, energy result in the activity Activity = humans + $ + materials + energy
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Facilities Planning Impact on activities

Handling and maintenance cost Employee morale Operation costs Capital investment Facility management Adapting to change & Satisfying future requirements Note: key requirement for a successful facilities plan is its adaptability and its ability to become suitable for new use
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Rapid changes in production techniques and
equipment
Every entity must insist on the highest return on investment (ROI)--- not only to prosper, but also to survive
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FACILITIES PLANNING
Determines how an activity's tangible fixed assets best support achieving the activity's objectives. Planning determines course of action ahead of time so subsequent decisions can be made efficiently Design more technical details that with a use of model, describe the implementation of the plan Examples:
a. In manufacturing, the objective is to support production. b. In an airport, the objective is to support the passenger airplane interface.
c. In a hospital, the objective is to provide medical care to patients.
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Supply Chain Excellence
1. 2. 3. 4. 5. 6.
The facilities we plan must help an organization achieve supply chain excellence Supply chain Excellence is a process with six steps, or levels. Business as usual Link Excellence Visibility Collaboration Synthesis velocity
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1. Business as usual
When a company works hard to maximize its individual functions The goal of individual departments, such as finance, marketing, sales, purchasing, information technology, research and development, manufacturing, distribution, and human resources, is to be the best department in the company. Organizational effectiveness is not the emphasis
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2. Link Excellence
To achieve performance excellence , companies must tear down the internal boundaries until the entire organization functions as one. Link between departments and facilities
Plants, warehouse, and distribution centers

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3. Visibility
Visibility minimizes supply chain surprises because it provides the information links need to understand the ongoing order status. Through visibility, organizations understand their roles in a supply chain and are aware of the other links. Example: an electronics company with a web site that allows its customers to view circuit boards and then funnel information about those customers to suppliers. Visibility requires sharing information so that the links understand the ongoing order status and thus minimizing supply chain surprises
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4. Collaboration
Once a supply chain achieves visibility, it can move to Collaboration. Through collaboration, the supply chain can determine how best to meet the demands of the marketplace. The supply chain works as a whole to maximize customer satisfaction while minimizing inventories.
Collaboration is achieved through the proper application of technology and true partnership.
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5. Synthesis
After collaboration is achieved, the supply chain then must pursue the continuous improvement process of Synthesis. Synthesis is the unification of all supply chain links to form a whole. It creates a pipeline from a customer perspective.
Synthesis is not achieved overnight!

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6. Velocity
Ride fast or you will fall Todays business environment demands speed The internet has created immediate orders, and customers expect their items to arrive almost as quickly. Each organization in the supply chain should therefore plan facilities with their supply chain partners in mind.
Facilities planning ensures that product will be manufactured and shipped to the satisfaction of the ultimate customer.
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Characteristics of facilities
Flexibility: able to handle a verity of requirements without being altered Modularity: modular facilities are those with systems that cooperate efficiently over a wide range of operating rates. Modular design is a form of standardization in which component parts are subdivided into modules that are easily replaced or interchanged. It allows:

easier diagnosis and remedy of failures easier repair and replacement simplification of manufacturing and assembly
Upgradeability: gracefully incorporate advances in equipment system and technology Adaptability: taking into consideration the implications of calendars, cycles, and peaks in facilities use. Selective operability: understanding how each facility segment operates and allows contingency plans to be put in place
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Disciplines involved in facilities design

Engineering: Civil, electrical, mechanical, industrial Architects, consultants, contractors, managers, real-estate people, personnel from the activity, etc.
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Major functions of facilities design engineering viewpoint Location of the facility placement of the facility w.r.t. customers/suppliers Choice of resources Layout of resources/components Performance evaluation The design process ends when the implementation phase of the physical design begins
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Facilities Planning Hierarchy

Structure design: building and support services - gas, water, light, air, Layout design: space requirements and location of resources in available space. Handling system design: movement of material, people, information and equipment.
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Motivation: Reasons for facilities planning/design New field of endeavor
Expansion due to volume or diversity

Replacing an obsolete facility Relocating or consolidation Legal: Occupational Safety & Health Act (1970)
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Motivation: Importance of facilities planning

1st phase in facility's life cycle, significant savings can accrue Plan Design Install Operate Dispose Cost of changes
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1. 2. 3. 4. 5.
Motivation:
Importance of facilities planning
Majority of an organization's capital investment is in facilities -- 8% of Gross National Product GNP ($250 billion) spent annually on facilities. Single most important cause of high material handling costs is lack of strategic facilities planning Material handling account for 20 - 50% of operating costs in manufacturing
Effective material handling can reduce costs by 10 - 30%

Long term effect: versatility, expandability, flexibility Environmental implications: hazardous waste disposal Safety, convenience, appearance - influence worker morale Lead to economic development http://groups.yahoo.com/group/asif_fp
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3. Facilities Planning Process

3. Facilities Planning Process Problem symptoms New needs 1. Problem Definition 2. Analysis 3. Synthesis Design 1 Design 2 Design n 4. Evaluation 5. Selection 6. Implementation
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3. Facilities Planning Process 3.1 Problem Definition Criteria, wishes, constraints -- data: products / services to delivered and quantities Objective: to maximize overall efficiency & minimize total costs. Important costs:
Design - Construction - Installation - MH (material handling) Transportation/distribution - Operating & maintenance Wip (work in progress) - Change
Criteria: may be mathematical function or wishes

Productivity - Capital investment - Space utilization Flexibility - MH effectiveness - Aesthetics
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3.2 Analysis & 3.3 synthesis:

Fact gathering; primary and secondary support activities and their interrelationship -- space required Alternatives: generated by a search procedure Exert the necessary effort Do not get bogged down in details too soon Make liberal use of the questioning attitude Seek many alternatives Avoid conservatism Avoid premature satisfaction or rejection Refer to analogous problems for ideas Attempt to divorce your thinking from the existing solution Consult others Try the group approach
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3.4 Evaluation: use models to assess performance w.r.t.. criteria Scale (iconic) models - Symbolic (mathematical) models
List of pros and cons - Ranking

Factor analysis - Cost comparison
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3.5 Selection: approvals 3.6 Implementation: physical execution and monitoring Single most important cause of high material handling costs is lack of strategic facilities planning
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Facilities Planning

Are you in the right room

Instructor: Asif Iqbal Day: Saturday Timing: 2.00 ---5. 00pm

Overview of todays class

Tell me about yourself

and Facility Planning :

Facilities Planning Impact on activities

Rapid changes in production techniques and

c. In a hospital, the objective is to provide medical care to patients.

Supply Chain Excellence

Plants, warehouse, and distribution centers

Synthesis is not achieved overnight!

Disciplines involved in facilities design

Facilities Planning Hierarchy

Motivation: Reasons for facilities planning/design New field of endeavor

Expansion due to volume or diversity

Motivation: Importance of facilities planning

Importance of facilities planning

Effective material handling can reduce costs by 10 - 30%

3. Facilities Planning Process

Criteria: may be mathematical function or wishes

3.2 Analysis & 3.3 synthesis:

List of pros and cons - Ranking

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