Facility Planning
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Transcript of Facility Planning
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Manufacturing and Process Selection
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Factors Influencing Process Choices
Volume: Average quantity of the products produced in a manufacturing system Low volume: Turnkey project management firms such as L&T and BHEL High volume: Consumer non-durable and FMCG sector firms, Automobile, Chemical Processing Mid-volume: Consumer durables, white goods and several industrial productsVariety: Number of alternative products and variants of each product that is offered by a manufacturing system Variety of product offerings is likely to introduce variety at various processes in the system; alternative production resources, materials, and skill of workersFlow: Flow indicates the nature and intensity of activities involved in conversion of components and material from raw material stage to finished goods stage -
Relationship between volume and variety
Volume
Variety
Mass
Production
Petrochemicals,
Automobile
Project
Organisations
Turnkey Project
Execution
Mid volume
Mid variety
Motor Manufacturing
Pharmaceuticals
High
High
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Processes & Operations Systems
Available AlternativesTwo broad process classifications include
Intermittent operations produce a variety of products in lower volumes
Repetitive operations produce one or a few standardized products in high volume
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Process Selection
Process selection is based on five considerationsType of process; range from intermittent to continuousDegree of vertical integrationFlexibility of resourcesMix between capital & human resourcesDegree of customer contact -
Process Selection
Process types can be:Project process /Job Shop make a one-at-a-time product exactly to customer specificationsBatch process small quantities of product in groups or batches based on customer orders or specifications -
Process Selection
Line process large quantities of a standard product
Continuous process very high volumes of a fully standard product
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2007 Wiley
2007 Wiley
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2007 Wiley
2007 Wiley
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2007 Wiley
2007 Wiley
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2007 Wiley
2007 Wiley
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2007 Wiley
2007 Wiley
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Underlying Process Relationship Between Volume and Standardization Continuum
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Differences between Intermittent and Repetitive Operations
Decision
Intermittent Operation
Repetitive Operation
Product variety
Great
Small
Degree of standardization
Low
High
Organization of resources
Grouped by Function
Line flow
Path of products
Varied, depends on product
Line flow
Factor driving production
Customer orders
Forecast of demand
Critical resource
Labor
Capital
Type of equipment
General purpose
Specialized
Degree of automation
Low
High
Throughput time
Longer
Shorter
Work-in-process inventory
More
Less
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Designing Processes
Process design tools includeProcess flow analysis Process flowchart (Also used to evaluate and improve processes.)Design considerations includeMake-to-stock strategyAssemble-to-order strategyMake-to-order strategy -
Process Design Tools
Process flow analysis is a tool used to analyze and document the sequence of steps within a total process. Usually first step in Process Reengineering.Process Re-engineering is a structured approach used when major business changes are required as a result of:Major new productsQuality improvement neededBetter competitorsInadequate performance -
Examples: Giving an admission ticket to a customer, installing a engine in a car, etc.
Examples: How much change should be given to a customer, which wrench should be used, etc.
Process Analysis Terms
Process: Is any part of an organization that takes inputs and transforms them into outputs
Flowchart Symbols
Tasks or operations
Decision Points
4
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Examples: Sheds, lines of people waiting for a service, etc.
Examples: Customers moving to a seat, mechanic getting a tool, etc.
Process Analysis Terms
Cycle Time: Is the average successive time between completions of successive units
Storage areas or queues
Flows of materials or customers
Flowchart Symbols
4
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Example: Flowchart of Student Going to School
Process Analysis Terms
Utilization: Is the ratio of the time that a resource is actually activated relative to the time that it is available for useYes
No
Goof off
Go to school today?
Walk to class
Drive to school
4
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Types of Processes
Other Process Terminology
Blocking
Occurs when the activities in a stage must stop because there is no place to deposit the item just completed
Starving
If an employee is waiting at a work station and no work is coming to the employee to process.
Single-stage Process
Stage 1
Stage 1
Stage 2
Stage 3
Multi-stage Process
4
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Other Process Terminology
BottleneckIf an employee works too slow in a multi-stage process, work will begin to pile up in front of that employee. In this is case the employee represents the limited capacity causing the bottleneck.PacingRefers to the fixed timing of the movement of items through the processA buffer refers to a storage area between stages where the output of a stage is placed prior to being used in a downstream stage
Make-to-orderOnly activated in response to an actual orderMake-to-stockCustomer orders are served from target stocking level4
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Process Design Tools
2007 Wiley
2007 Wiley
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Process Performance Metrics
Operation time = Setup time + Run timeThroughput time = Average time for a unit to move through the systemVelocity = Throughput timeValue-added time
Cycle time = Average time between completion of unitsThroughput rate = 1 .Cycle time
Efficiency = Actual outputStandard Output
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Process Performance Metrics (Cont.)
Productivity = OutputInput
Utilization = Time ActivatedTime Available
Process Throughput Time Reduction
Perform activities in parallel
Change the sequence of activities
Reduce interruptions
17
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Process Performance Metrics
1.bin -
Linking Product Design & Process Selection
Product design and process selection directly linkedType of product selected defines type of operation requiredType of operation available defines broader organizational aspects such asEquipment requiredFacility arrangementOrganizational structure -
Linking Design & Process Selection
The organizational strategy drives decisions about competitive priorities. Competitive priorities drive decisions about product design. Product design decisions drive process design decisions. Product and process decisions drive operations planning and control decisions. -
Product and Service Strategy
Type of operation is directly related to product and service strategyThree basic strategies includeMake-to-stock; in anticipation of demandAssemble-to-order; built from standard components on orderMake-to-order; produce to customer specification at time of order -
Facility Layout and Process Choice
2007 Wiley
2007 Wiley
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Facility Location
*
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BMW
In the late 1980s fluctuating exchange rates and rising costs convinced BMW that it was time to consider operating a new production facility outside the European borders.A blank page approach was used to compile a list of 250 potential worldwide sites. Analysis pared the list down to 10 options; a location in the United States was preferred due to its proximity to a large market segment for BMWs automobiles.BMW spent 3 1/2 years considered the labor climate, port and road access, geographical requirements and constraints, airport access, and its relations with the governments.The plant was located in Spartanburg, SC, and now employs approximately 4,700 workers who produce more than 500 vehicles a day. -
LI & FUNG
European retailer order
10,000 garments
Buy the best Japanese zipper & button from Chaina
Weave & dye in Taiwan
Manufacture garments in Thailand
Buy yarn from a Korean mfgr.
5 weeks later 10,000 garments reach Europe
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Ellora Times
In 2001, Ellora Time Pvt. Ltd. (Ellora), a company based in Gujarat, India, was the world's largest manufacturer of clocks. It also manufactured calculators, telephones, timepieces and educational toys. Ajanta and Orpat were closely held Ellora companies with a combined investment of Rs 2 billion. Almost all their products, marketed through a countrywide network of 25,000 dealers and 180 service stations, were leaders in their respective categories. For the year 1999-00, the group recorded a combined turnover of over Rs 2.50 billion. Both Ajanta and Orpat received awards by the Government of India for superior exports performance throughout the 1990s. Ajanta, an ISO 9002 certified company, had even received the Best Electronics Industry'award many times. -
Ellora Times
In early 2001, Ellora shocked the corporate world by announcing its decision to shift its manufacturing activities to China. - Mitshubishi at HaldiaHero Hona at UttranchalWipro in HimachalTata in SingurBio-con in Andhrapradesh
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How Location
fits the Operations Management PhilosophyOperations As a Competitive
Weapon
Operations Strategy
Project Management
Process Strategy
Process Analysis
Process Performance and Quality
Constraint Management
Process Layout
Lean Systems
Supply Chain Strategy
Location
Inventory Management
Forecasting
Sales and Operations Planning
Resource Planning
Scheduling
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Location Factors
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Factors Affecting
Economic Site acquisition, preparation and construction costsLabor costs, skills and availabilityUtilities costs and availabilityTransportation costsTaxes
the Location Decision*
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Factors Affecting
Non-economicLabor attitudes and traditionsTraining and employment servicesCommunitys attitudeSchools and hospitalsRecreation and cultural attractionsAmount and type of housing available
the Location Decision*
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Facility Types and Their
Heavy ManufacturingNear their raw material sourcesAbundant supply of utilitiesLand and construction costs are inexpensiveLight ManufacturingAvailability and cost of laborWarehousingProximity to transportation facilitiesIncoming and outgoing transportation costs
Dominant Locational Factors*
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Facility Types and Their
R&D and High-Tech ManufacturingAbility to recruit/retain scientists, engineers, etc.Near companies with similar technology interestsRetailing and For-Profit ServicesNear concentrations of target customersGovernment and Health/Emergency ServicesNear concentrations of constituents
Dominant Locational Factors*
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Some Reasons the
Changes in the marketExpansionContractionGeographic shiftChanges in inputsLabor skills and/or costsMaterials costs and/or availabilityUtility costs
Facility Location Decision Arises*
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Some Reasons the
Changes in the environmentRegulations and lawsAttitude of the communityChanges in technology
Facility Location Decision Arises*
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Analyzing Service Location Decisions
Consumer Behavior
Research
Market Research
Data Gathering for
Each Location Alternative
Revenue Projections for
Each Location Alternative
Why do customers buy our
products and services?
Who are our customers?
What are their characteristics?
What are the economic projections?
What is the time-phased revenue?
Profit Projections for
Each Location Alternative
What are the projected revenues
less time-phased operating costs?
Where are our customers concentrated?
What are their traffic/spending patterns?
*
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Analyzing Industrial Facility Locations
Locating a Single FacilityA simple way to analyze alternative locations is conventional cost analysisLocating Multiple FacilitiesMore sophisticated techniques are often used:Linear programming, computer simulation, network analysis, and others*
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Reasons that Companies Globalize
To get access to cheaper laborTo get access to materialsTo enter new markets and gain market knowledgeTo avoid paying tariffs
(Advantages of Globalization) -
Geographical Information Systems and Location Decisions
Geographical information system (GIS) is a system of computer software, hardware, and data that the firms personnel can use to manipulate, analyze, and present information relevant to a location decision. It can be used to:Store databasesDisplay mapsCreate models that can take information from existing datasets, apply analytic functions, and write results into new derived datasets. Together, these three functionalities of data storage, map displays, and modeling are critical parts of an intelligent GIS, used to a varying extent in all GIS applications. -
Population density per square kilometer for each census subdivision.
Starbucks locations
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Per Capita Household Income Map
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Facility Location Models -
Location Analysis Methods
Analysis should follow 3 step process:Step 1: Identify dominant location factorsStep 2: Develop location alternativesStep 3: Evaluate locations alternatives -
Location Analysis Methods
Factor rating methodLoad-distance modelCenter of gravity approachBreak-even analysisTransportation methodDimensional Analysis -
Location Rating Factor
Identify important factorsSubjectively score each factor (0 - 100)Weight factors (0.00 - 1.00)Sum weighted scores*
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Location Factor Rating: Example
Labor pool and climate
Proximity to suppliers
Wage rates
Community environment
Proximity to customers
Shipping modes
Air service
LOCATION FACTOR
90
60
45
45
30
15
15
Normalized
Rating
SCORES (0 TO 100)
*
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Location Factor Rating: Example
Labor pool and climate
Proximity to suppliers
Wage rates
Community environment
Proximity to customers
Shipping modes
Air service
LOCATION FACTOR
.30
.20
.15
.15
.10
.05
.05
Rating
90
60
45
45
30
15
15
Normalized
SCORES (0 TO 100)
*
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Location Factor Rating: Example
Labor pool and climate
Proximity to suppliers
Wage rates
Community environment
Proximity to customers
Shipping modes
Air service
LOCATION FACTOR
80
100
60
75
65
85
50
Site 1
SCORES (0 TO 100)
*
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Location Factor Rating: Example
Labor pool and climate
Proximity to suppliers
Wage rates
Community environment
Proximity to customers
Shipping modes
Air service
LOCATION FACTOR
80
100
60
75
65
85
50
Site 1
65
91
95
80
90
92
65
Site 2
SCORES (0 TO 100)
*
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Location Factor Rating: Example
Labor pool and climate
Proximity to suppliers
Wage rates
Community environment
Proximity to customers
Shipping modes
Air service
LOCATION FACTOR
80
100
60
75
65
85
50
Site 1
65
91
95
80
90
92
65
Site 2
90
75
72
80
95
65
90
Site 3
SCORES (0 TO 100)
*
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Location Factor Rating: Example
Labor pool and climate
Proximity to suppliers
Wage rates
Community environment
Proximity to customers
Shipping modes
Air service
LOCATION FACTOR
.30
.20
.15
.15
.10
.05
.05
WEIGHT
80
100
60
75
65
85
50
Site 1
65
91
95
80
90
92
65
Site 2
90
75
72
80
95
65
90
Site 3
SCORES (0 TO 100)
*
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Location Factor Rating
Site 3 has the highest factor rating
24.00
20.00
9.00
11.25
6.50
4.25
2.50
77.50
Site 1
19.50
18.20
14.25
12.00
9.00
4.60
3.25
80.80
Site 2
27.00
15.00
10.80
12.00
9.50
3.25
4.50
82.05
Site 3
WEIGHTED SCORES
*
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Example
An electronics manufacturer must expand by building a second facility. The search has been narrowed to four locations, all of which are acceptable to management in terms of dominant factors. Assessment of these sites in terms of seven location factors is shown below.
-
Example
Nearness to the port
Proximity to suppliers
Availability of skilled labor
Govt. Policies
Projected cost of operation
Shipping modes
Educational Infrastructure
LOCATION FACTOR
80
70
90
50
60
70
40
Score
75
60
50
70
70
80
60
Site 1
70
80
70
45
60
90
80
Site 2
90
85
85
60
80
70
80
Site 3
SCORES (0 TO 100)
*
-
*
Center of Gravity Method
The Center of Gravity Method is a tool that seeks to compute geographic coordinates for a potential single new facility that will minimize costs.The Center of Gravity Method takes many factors into account including:Markets
Volume of goods shipped
Shipping costs
*
The Center of Gravity Method is basically used for finding the perfect location of a distribution center that will minimize distribution costs.
- Locate facility at center of geographic areaBased on weight and
distance traveled establish grid-map of areaIdentify coordinates
and weights shipped for each location
Center-of-Gravity Technique
*
-
Grid-Map Coordinates
xi, yi =coordinates of existing facility i
Wi =annual weight shipped from facility i
x1
x2
x3
x
y2
y
y1
y3
1 (x1, y1), W1
2 (x2, y2), W2
3 (x3, y3), W3
*
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Grid-Map Coordinates
where,
x, y =coordinates of new facility at center of gravity
xi, yi =coordinates of existing facility i
Wi =annual weight shipped from facility i
n
Wi
i = 1
xiWi
i = 1
n
x =
n
Wi
i = 1
yiWi
i = 1
n
y =
x1
x2
x3
x
y2
y
y1
y3
1 (x1, y1), W1
2 (x2, y2), W2
3 (x3, y3), W3
*
-
Example
ABCD
x200100250500
y200500600300
Wt7510513560
*
-
Center-of-Gravity Technique: Example
ABCD
x200100250500
y200500600300
Wt7510513560
y
700
500
600
400
300
200
100
0
x
700
500
600
400
300
200
100
A
B
C
D
(135)
(105)
(75)
(60)
Miles
Miles
*
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Center-of-Gravity Technique: Example (cont.)
Wi
i = 1
n
xiWi
i = 1
n
x = = = 238
n
Wi
i = 1
yiWi
i = 1
n
y = = = 444
(200)(75) + (500)(105) + (600)(135) + (300)(60)
75 + 105 + 135 + 60
(200)(75) + (100)(105) + (250)(135) + (500)(60)
75 + 105 + 135 + 60
*
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Center-of-Gravity Technique: Example (cont.)
ABCD
x200100250500
y200500600300
Wt7510513560
700
500
600
400
300
200
100
x
700
500
600
400
300
200
100
y
0
A
B
C
D
(135)
(105)
(75)
(60)
Miles
Miles
Center of gravity (238, 444)
*
-
Copyright 2006 John Wiley & Sons, Inc.
Supplement 7-*
Center of Gravity with Excel
Copyright 2006 John Wiley & Sons, Inc.
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Example
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Finding the Center of Gravity for Health Watch
2007 Pearson Education
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Example
Existing FacilityAnnul loadCost of moving one unitCoordinate locationsW27910(20,30)X47310(70,10)Y35010(50,40)z26610(10,80) -
Load Distance Method
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Euclidean or rectilinear distance measure may be used.
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Euclidean distance between points A and B is the length of the hypotenuse of a right triangle, or
where dAB = distance between points A and B
Xa = x-coordinate of point A
Ya = y-coordinate of point A
Xb = x-coordinate of point B
Yb = y-coordinate of point B
Rectilinear distance measures distance between two points with a series of 900 turns as city blocks. Essentially, this distance is the sum of the two dashed lines representing the base and side of the triangle in figure . The distance traveled in the x-direction is the absolute value of the difference in x-coordinates. Adding this result to the absolute value of the difference in the y-coordinates gives
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Distance Measures
What is the distance between (20,10) and (80,60)?
Rectilinear Distance
dAB = |20 80| + |10 60| = 110
dAB = (20 80)2 + (10 60)2
= 78.1
Euclidian Distance
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Load-Distance Technique
Compute (Load x Distance) for each siteChoose site with lowest (Load x Distance)Distance can be actual or straight-line*
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Load-Distance Calculations
or Ixi - xI + Iyi - yI
li di
i = 1
n
LD =
LD = load-distance value
li = load expressed as a weight, number of trips or units
being shipped from proposed site and location i
di = distance between proposed site and location i
di = (xi - x)2 + (yi - y)2
(x,y) = coordinates of proposed site
(xi , yi) = coordinates of existing facility
where,
where,
*
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Load-Distance: Example
Potential Sites
SiteXY
1360180
2420450
3250400
Suppliers
ABCD
X200100250500
Y200500600300
Wt7510513560
Compute distance from each site to each supplier
= (200-360)2 + (200-180)2
dA = (xA - x1)2 + (yA - y1)2
Site 1
= 161.2
= (100-360)2 + (500-180)2
dB = (xB - x1)2 + (yB - y1)2
= 412.3
dC = 434.2
dD = 184.4
*
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Load-Distance: Example (cont.)
Site 2
dA = 333
dC = 226.7
dB = 323.9
dD = 170
Site 3
dA = 206.2
dC = 200
dB = 180.4
dD = 269.3
i = 1
n
li di
LD =
Compute load-distance
Site 1 = (75)(161.2) + (105)(412.3) + (135)(434.2) + (60)(434.4) = 125,063
Site 2 = (75)(333) + (105)(323.9) + (135)(226.7) + (60)(170) = 99,791
Site 3 = (75)(206.2) + (105)(180.3) + (135)(200) + (60)(269.3) = 77,555*
* Choose site 3
*
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Example
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Example: Matrix Manufacturing is considering where to locate its warehouse in order to service its four Ohio stores located in Cleveland, Cincinnati, Columbus, Dayton. Two sites are being considered; Mansfield and Springfield, Ohio. Use the load-distance model to make the decision.
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Break-even analysis can help a manager compare location alternatives on the basis of quantitative factors that can be expressed in terms of total cost.
Break-Even AnalysisDetermine the variable costs and fixed costs for each site.
Plot the total cost linesthe sum of variable and fixed costsfor all the sites on a single graph
Identify the approximate ranges for which each location has the lowest cost.
Solve algebraically for the break-even points over the relevant ranges.
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Break-Even Analysis
An operations manager has narrowed the search for a new facility location to four communities.The annual fixed costs (land, property taxes, insurance, equipment, and buildings) and the variable costs (labor, materials, transportation, and variable overhead) are shown below. Total costs are for 20,000 units.Fixed CostsVariable CostsTotal Costs
Communityper Yearper Unit(Fixed + Variable)
A$150,000$62$1,390,000
B$300,000$38$1,060,000
C$500,000$24$ 980,000
D$600,000$30$1,200,000
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Example
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The operations manager for Mile-High Beer has narrowed the search for a new facility location to seven communities. Annual fixed costs (land, property taxes, insurance, equipment, and buildings) and variable costs (labor, materials, transportation, and variable overhead) are shown below.
Mile-High Beer
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Example
Santro Electronics is considering 2 locations for the audio equipment factory Ahmedabad & Chennai. At Ahmedabad fixed cost is estimated at Rs.1 million and the variable cost at Rs.1,200 per audio equipment. At Chennai fixed cost is Rs. 1.2 million and variable cost is Rs. 1100 per audio equipment. The selling price of the equipment will be Rs. 3000 per unit irrespective of the location. Decide which location is the best. -
The Transportation Method
The transportation method is a quantitative approach that can help solve multiple-facility location problems.The transportation method does not solve all facets of the multiple-facility location problem.It utilizes linear programming to minimize the cost of shipping products from two or more plants, or sources of supply, to two or more warehouses, or destinations. -
The Transportation Method
The Sunbelt Pool Company has a plant in Phoenix and three warehouses. It is considering building a new 500-unit plant because business is booming. One possible location is Atlanta.
Initial Tableau
The cost to ship one unit from Atlanta to San Antonio.
-
Example
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Dimensional Analysis
Considers both tangible and intangible costsIntangibles could include (lack of ) facilities e.g. for education, shopping, recreation, social life.Intangibles could be quantified on a scale.Weightages could be assigned to each cost.A pair of sites is compared by a ratio. -
Formula for Dimensional Analysis
If C are costs, M & N are the two sites, and w are weightages, the relative demerit of site M to N is:(C1M / C1N) X (C2M / C2N) X .. X (CzM / CzN)
where, CzM is the cost z for site M.
If the above is >1, site N is superior.W1
W2
Wz
-
Example
. CostsSiteLbourPowerEducational Facilities for children's(Score)Recreational Facilities(Score)MRs.1.50.000Rs.40,00,00022NRs.1.00.000Rs.25,0000064Weightage 1122 -
FACILITY LAYOUT PROBLEM
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FACILITY LAYOUT PROBLEM
Once a firm has decided where a facility will be located, the next important decision is the Arrangement of people and Equipment within the facility.
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FACILITY LAYOUT PROBLEM
Facility Layout problem involves the location of departments (or sections) within the facility AND the arrangement of people and equipment within each department.
.
-
FACILITY LAYOUT PROBLEM
The layout decision will certainly affect the
Flow of materials In-plant Transportation cost Equipment utilization General productivity and effectiveness of the business. -
FACILITY LAYOUT PROBLEM
Usually the layout is planned to minimize a particular criterion:
Minimizing total traveling time, total cost, total delays, etc.There are also situations in which the layout may be designed to maximize a criterion:
Maximize quality, flexibility, or space utilization. -
Costs associated with a plant layout
Costs of customer dissatisfaction due to poor service (delivery, responsiveness, quality, flexibility)Costs of movement of materialsCosts of spaceCosts of spoilage of materialsCosts of employee dissatisfactionCosts of changes required with operational changes -
Basic Production Layout Formats
Process Layout (also called job-shop or functional layout)Product Layout (also called flow-shop layout)Group Technology (Cellular) LayoutFixed-Position Layout4
-
Process Layout
Similar pieces of equipment that perform similar functions are grouped together. For example; all drill machines are grouped and placed together.
-
Process Layout
An exampleL
L
L
L
M
M
M
M
D
D
D
D
D
D
G
G
G
L
L
L
L
Product A
Product C
Product B
-
Product Layout
The pieces of equipment required to make a Particular product are grouped together, as in an Automobile assembly line.
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Product Layout
L
L
D
L
D
M
G
Product
A
Product
B
Product
C
Step 1
Step 1
Step 1
Step 2
Step 2
Step 2
Step 3
Step 3
Step 3
Step 4
Step 4
Step 4
7-14
G
L
D
M
L
G
Step 5
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Fixed Layout
The equipment is brought to the object being processed, and the object does not move. Example; house construction.
-
Cellular Manufacturing (CM) Layouts
Cellular manufacturing is a type of layout in which machines are grouped into what is referred to as a cell. Groupings are determined by the operations needed to perform work for a set of similar items, or part families that require similar processing. -
Process Layout Example
Frontec Company wants to arrange Four of its departments in a Row so that the Total Distance Traveled between Departments is minimized.This part of the building will contain four departments arranged in a row.Frontec wishes to minimize the total daily inter-departmental distance traveled.The number of daily communications between each pair of department is shown below: -
Example
Assume that adjacent departments are 20 feet apart.
-
Example
We will use a trial-and-error approach to this problem.Assume that we selected the following configuration for the departments: A-B-C-D.For this configuration, Total communication cost (based on distance) is as follows: -
Example
-
Example
-
Example
In terms of total daily communication distance, (B-A-C-D) is the preferred alternative.But the firm has to consider all of the 24 (4! = 4x3x2x1) possible configurations before it knows if this is the optimal configuration. -
Example
This trial-and-error approach becomes time-consuming as the number of departments increases AND It also becomes complex when the cost of communications vary between departments. -
Computerized Relative Allocation of Facilities(CRAFT)
In CRAFT an initial feasible layout is formed and a series of improvement opportunities explored through a pir wise exchange of departments.If there are n departments a pair wise comparison involves n(n-1)/2 evaluations. -
Systematic Layout Planning
Systematic Layout Planning (SLP) is an organized approach to facility Layout planning.
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Qualitative Approach
Software packages ALDEP & CORELAP are available for qualitative design.
Value ClosenessAAbsolutely necessaryEEspecially Important IImportantOOKUUnimportantXUndesirable -
Qualitative Approach
Software packages ALDEP & CORELAP are available for qualitative design.
-
Example
A small accounting Firm, GUNTA Accounting, has rented Space in a new one-floor building.The firm has allocated 6000 square meter to its seven departments as follows: -
Example
-
Example
-
Example
-
Example
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Example
This Activity Relationship Diagram is essentially an Illustration of the Information Contained in the Activity Relationship Chart.All departments in this diagram are Represented by equal size boxes.The next step is to anticipate the space required for each Department. -
Example
Since the space assignments are given before, the following Activity Relationship Diagram shows the relative Sizes of Each Department: -
Example
-
Example
In this stage, there are no restrictions on the length and width of each departmentIn the final step, we should develop and evaluate several alternative layouts, while keeping in mind the Practical Limitations. -
Example
Some examples of Practical Limitations in this case were as follows:1- It is considered that offices for partners (2), the meeting room (7) and the reception area (1) should be close to each other.2- It is important that the juniors (4) and the managers (3) be close together. -
Product Layout
-
LINE BALANCING
Essentially ,the layout design seeks to identify minimum number of resources required to meet a targeted production rate and the order in which this sequences are to be used. In the process it seeks to establish a balance among the resources so that the production isLine Balancing is a method by which tasks are optimally combined without violating the precedence constraint and a certain number of workstation is designed to complete the task. -
Assembly Lines Balancing Concepts
Question: Suppose you load work into the three work stations below such that each will take the corresponding number of minutes as shown. What is the cycle time of this line? Determine the interval between producton of two successive components?
Answer: One component will come out of the system only every 7 minutes. This measure is known as cycle time.
Station 1
Minutes per Unit
6
Station 2
7
Station 3
3
*
15
-
Designing Product Layouts
Step 1: Identify tasks & immediate predecessorsStep 2: Determine the desired output rateStep 3: Calculate the cycle timeStep 4: Compute the theoretical minimum numberof workstations
Step 5: Assign tasks to workstations (balance theline)
Step 6: Compute efficiency, idle time & balancedelay
-
Assembly Line Balancing
Precedence diagram:
Circles=tasks
Arrows = required sequence.
-
Assembly Line Balancing
Determine cycle time: Cycle time could be actual or desires
Determine required workstations (theoretical minimum)
-
Assembly Line Balancing
Evaluate line efficiency:
-
Balance delay (%) is the amount by which the line falls short of 100%
-
Example
A factory working two shifts each of eight hour produces 24000 electric bulbs using a set of workstations. Compute the actual cycle time of the plant operation. There are 8 tasks required to manufacture the bulbs. The sum of all task time is equal to 12 seconds. How many workstations are required to maintain the level of production. -
Example of Line Balancing
Youve just been assigned the job a setting up an electric fan assembly line with the following tasks:*
-
Example of Line Balancing:
Structuring the Precedence DiagramA
B
G
H
C
D
E
F
Task Predecessors
ANone
BA
CNone
DA, C
Task Predecessors
ED
FE
GB
HF, G
*
17
-
Example of Line Balancing: Precedence Diagram
Question: Which process step defines the maximum rate of production?
Answer: Task C is the cycle time of the line and therefore, the maximum rate of production.
A
C
B
D
E
F
G
H
2
3.25
1
1.2
.5
1
1.4
1
*
17
-
Example of Line Balancing: The Bottleneck
*
18
-
Example of Line Balancing: Determine Cycle Time
Question: Suppose we want to assemble 100 fans per day. What would our cycle time have to be?
Answer:
*
19
-
Example of Line Balancing: Determine Theoretical Minimum Number of Workstations
Question: What is the theoretical minimum number of workstations for this problem?
Answer:
*
19
-
A
C
B
D
E
F
G
H
2
3.25
1
1.2
.5
1
1.4
1
Station 1
Station 2
Task
Followers
Time (Mins)
A
6
2
C
4
3.25
D
3
1.2
B
2
1
E
2
0.5
F
1
1
G
1
1
H
0
1.4
Station 3
*
23
-
A
C
B
D
E
F
G
H
2
3.25
1
1.2
.5
1
1.4
1
Station 1
Station 2
Task
Followers
Time (Mins)
A
6
2
C
4
3.25
D
3
1.2
B
2
1
E
2
0.5
F
1
1
G
1
1
H
0
1.4
Station 3
A (4.2-2=2.2)
*
24
-
A
C
B
D
E
F
G
H
2
3.25
1
1.2
.5
1
1.4
1
Task
Followers
Time (Mins)
A
6
2
C
4
3.25
D
3
1.2
B
2
1
E
2
0.5
F
1
1
G
1
1
H
0
1.4
Station 1
Station 2
A (4.2-2=2.2)
B (2.2-1=1.2)
G (1.2-1= .2)
Idle= .2
Station 3
*
26
-
A
C
B
D
E
F
G
H
2
3.25
1
1.2
.5
1
1.4
1
Task
Followers
Time (Mins)
A
6
2
C
4
3.25
D
3
1.2
B
2
1
E
2
0.5
F
1
1
G
1
1
H
0
1.4
Station 1
Station 2
C (4.2-3.25)=.95
A (4.2-2=2.2)
B (2.2-1=1.2)
G (1.2-1= .2)
Idle= .2
Station 3
*
27
-
A
C
B
D
E
F
G
H
2
3.25
1
1.2
.5
1
1.4
1
Task
Followers
Time (Mins)
A
6
2
C
4
3.25
D
3
1.2
B
2
1
E
2
0.5
F
1
1
G
1
1
H
0
1.4
Station 1
Station 2
C (4.2-3.25)=.95
Idle = .95
A (4.2-2=2.2)
B (2.2-1=1.2)
G (1.2-1= .2)
Idle= .2
Station 3
*
28
-
A
C
B
D
E
F
G
H
2
3.25
1
1.2
.5
1
1.4
1
Task
Followers
Time (Mins)
A
6
2
C
4
3.25
D
3
1.2
B
2
1
E
2
0.5
F
1
1
G
1
1
H
0
1.4
Station 1
Station 2
C (4.2-3.25)=.95
Idle = .95
D (4.2-1.2)=3
E (3-.5)=2.5
A (4.2-2=2.2)
B (2.2-1=1.2)
G (1.2-1= .2)
Idle= .2
Station 3
*
30
-
A
C
B
D
E
F
G
H
2
3.25
1
1.2
.5
1
1.4
1
Task
Followers
Time (Mins)
A
6
2
C
4
3.25
D
3
1.2
B
2
1
E
2
0.5
F
1
1
G
1
1
H
0
1.4
Station 1
Station 2
C (4.2-3.25)=.95
Idle = .95
D (4.2-1.2)=3
E (3-.5)=2.5
F (2.5-1)=1.5
A (4.2-2=2.2)
B (2.2-1=1.2)
G (1.2-1= .2)
Idle= .2
Station 3
*
31
-
A
C
B
D
E
F
G
H
2
3.25
1
1.2
.5
1
1.4
1
Task
Followers
Time (Mins)
A
6
2
C
4
3.25
D
3
1.2
B
2
1
E
2
0.5
F
1
1
G
1
1
H
0
1.4
Station 1
Station 2
C (4.2-3.25)=.95
Idle = .95
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
A (4.2-2=2.2)
B (2.2-1=1.2)
G (1.2-1= .2)
Idle= .2
Station 3
*
32
-
A
C
B
D
E
F
G
H
2
3.25
1
1.2
.5
1
1.4
1
Task
Followers
Time (Mins)
A
6
2
C
4
3.25
D
3
1.2
B
2
1
E
2
0.5
F
1
1
G
1
1
H
0
1.4
Station 1
Station 2
C (4.2-3.25)=.95
Idle = .95
Efficiency=77%
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
Efficiency=98%
A (4.2-2=2.2)
B (2.2-1=1.2)
G (1.2-1= .2)
Idle= .2
Efficiency=95%
Station 3
*
32
-
Example of Line Balancing: Determine the Efficiency of the Assembly Line
*
33
-
Step 1: Identify Tasks & Immediate Predecessors
-
Step 1: Identify Tasks & Immediate Predecessors
-
Layout Calculations
Step 2: Determine output rateVicki needs to produce 60 pizzas per hour Step 3: Determine cycle timeThe amount of time each workstation is allowed to complete its tasksLimited by the bottleneck task (the longest task in a process): -
Layout Calculations (continued)
Step 4: Compute the theoretical minimum number of stationsTM = number of stations needed to achieve 100% efficiency (every second is used)Always round up (no partial workstations)Serves as a lower bound for our analysis -
Last Layout Calculation
Step 6: Compute efficiency and balance delayEfficiency (%) is the ratio of total productive time divided by total timeBalance delay (%) is the amount by which the line falls short of 100% -
Problem
Draw precedence diagramDetermine cycle timedemand = 50 units/hrTheoretical minimum no. of work stationsAssign tasks to workstations using cycle timeEfficiency and balance delay of line?Bottleneck?Maximum output?TaskImm. predecessorTask time (sec)ANone55BA30CA22DB35EB, C50FC15GF5HG10TOTAL222 -
Group Technology:
Transition from Process Layout1. Grouping parts into families that follow a common sequence of steps
2. Identifying dominant flow patterns of parts families as a basis for location or relocation of processes
3. Physically grouping machines and processes into cells
-
Product Layout
An exampleL
D
L
M
D
G
M
L
D
L
M
D
G
L
L
M
D
L
L
D
G
-
Machine Component Incident Matrix(MCIM)
Before GroupingMachines
Components
Sheet1VarietyVery low varietyMedium VarietyHigh VarietyOne off executionFlow attributesStream lined flowMultiple flow pathsDis-organised flowJumbled flowVolume attributesHigh VolumeMid-volumeLow volumeOne pieceExamples of operating systemsProcess industry; Mass Product/ Service providerBatch Manufacturing firmsJob shops; Customised Product/ Service ProviderProject ShopsTypes of layout usedLine Layout; Product LayoutGroup Technology LayoutProcess LayoutFixed Position LayoutProcess LayoutProduct LayoutAdvantagesSharing of specialised and costly equipmentsStandardised product/ process routingMore flexibilityOperational Control is simplerLess vulnerable to breakdownsHigh output rate is possibleDisadvantagesLarge Inventory buildupLow tolerance for breakdownsOperational control difficultDuplication of equipments leading to high costExcess Material HandlingLess flexibility due to dedication of resourcesPerformance MeasureBasis for measurementDistance travelled by jobs in the shopfloorKg - Metres of job movement for each productSpace utilisation indexMinimum space required to actual space utilisedMaterial Handling costsRupees per monthLead time of the processesHours per average productInvestment in work-in-progressRupees per monthInter-departmental movesNumber and quantum of inter-departmental movesUtilisation of the resourcesPercent to total capacityEase of production controlNumber of job cards and control documents generated; Size of the progress chasing staffNumber of ownership changesNumber of times the responsibility for the job changes handsSheet21234567891011121314151617181920A111B1111C1111D111E111111F111G111111H111111I111111J1111112358101472018171514136911121619B11111C11111D111A111F111E111111I111111G111111H111111J111111Sheet3 -
Machine Component Incident Matrix
After GroupingMachines
Components
Sheet1VarietyVery low varietyMedium VarietyHigh VarietyOne off executionFlow attributesStream lined flowMultiple flow pathsDis-organised flowJumbled flowVolume attributesHigh VolumeMid-volumeLow volumeOne pieceExamples of operating systemsProcess industry; Mass Product/ Service providerBatch Manufacturing firmsJob shops; Customised Product/ Service ProviderProject ShopsTypes of layout usedLine Layout; Product LayoutGroup Technology LayoutProcess LayoutFixed Position LayoutProcess LayoutProduct LayoutAdvantagesSharing of specialised and costly equipmentsStandardised product/ process routingMore flexibilityOperational Control is simplerLess vulnerable to breakdownsHigh output rate is possibleDisadvantagesLarge Inventory buildupLow tolerance for breakdownsOperational control difficultDuplication of equipments leading to high costExcess Material HandlingLess flexibility due to dedication of resourcesPerformance MeasureBasis for measurementDistance travelled by jobs in the shopfloorKg - Metres of job movement for each productSpace utilisation indexMinimum space required to actual space utilisedMaterial Handling costsRupees per monthLead time of the processesHours per average productInvestment in work-in-progressRupees per monthInter-departmental movesNumber and quantum of inter-departmental movesUtilisation of the resourcesPercent to total capacityEase of production controlNumber of job cards and control documents generated; Size of the progress chasing staffNumber of ownership changesNumber of times the responsibility for the job changes handsSheet21234567891011121314151617181920A111B1111C1111D111E111111F111G111111H111111I111111J1111112358101472018171514136911121619B11111C11111D111A111F111E111111I111111G111111H111111J111111Sheet3 -
Rank Order Clustering(ROC)
Machines
Components
Sheet1VarietyVery low varietyMedium VarietyHigh VarietyOne off executionFlow attributesStream lined flowMultiple flow pathsDis-organised flowJumbled flowVolume attributesHigh VolumeMid-volumeLow volumeOne pieceExamples of operating systemsProcess industry; Mass Product/ Service providerBatch Manufacturing firmsJob shops; Customised Product/ Service ProviderProject ShopsTypes of layout usedLine Layout; Product LayoutGroup Technology LayoutProcess LayoutFixed Position LayoutProcess LayoutProduct LayoutAdvantagesSharing of specialised and costly equipmentsStandardised product/ process routingMore flexibilityOperational Control is simplerLess vulnerable to breakdownsHigh output rate is possibleDisadvantagesLarge Inventory buildupLow tolerance for breakdownsOperational control difficultDuplication of equipments leading to high costExcess Material HandlingLess flexibility due to dedication of resourcesPerformance MeasureBasis for measurementDistance travelled by jobs in the shopfloorKg - Metres of job movement for each productSpace utilisation indexMinimum space required to actual space utilisedMaterial Handling costsRupees per monthLead time of the processesHours per average productInvestment in work-in-progressRupees per monthInter-departmental movesNumber and quantum of inter-departmental movesUtilisation of the resourcesPercent to total capacityEase of production controlNumber of job cards and control documents generated; Size of the progress chasing staffNumber of ownership changesNumber of times the responsibility for the job changes handsSheet2123456A001010B011001C100100D011010E1001012358101472018171514136911121619B11111C11111D111A111F111E111111I111111G111111H111111J111111Sheet3 -
Rank Order Clustering(ROC)
Read each row of the MCIM as binary number. Rank the rows in descending order.If there is no change stop. Otherwise go to next step.Rearrange the rows based on ranking.Read each column of the MCIM as binary number. Rank the rows in descending order.If there is no change stop. Otherwise go to next step.Rearrange the rows based on ranking. Go to step 1. -
Rank Order Clustering(ROC)
Rows as binary numbers
Value of the binary numberRankROW1105ROW2254ROW3362ROW4263ROW5371 -
Rank Order Clustering(ROC)
Machines
Components
Sheet1VarietyVery low varietyMedium VarietyHigh VarietyOne off executionFlow attributesStream lined flowMultiple flow pathsDis-organised flowJumbled flowVolume attributesHigh VolumeMid-volumeLow volumeOne pieceExamples of operating systemsProcess industry; Mass Product/ Service providerBatch Manufacturing firmsJob shops; Customised Product/ Service ProviderProject ShopsTypes of layout usedLine Layout; Product LayoutGroup Technology LayoutProcess LayoutFixed Position LayoutProcess LayoutProduct LayoutAdvantagesSharing of specialised and costly equipmentsStandardised product/ process routingMore flexibilityOperational Control is simplerLess vulnerable to breakdownsHigh output rate is possibleDisadvantagesLarge Inventory buildupLow tolerance for breakdownsOperational control difficultDuplication of equipments leading to high costExcess Material HandlingLess flexibility due to dedication of resourcesPerformance MeasureBasis for measurementDistance travelled by jobs in the shopfloorKg - Metres of job movement for each productSpace utilisation indexMinimum space required to actual space utilisedMaterial Handling costsRupees per monthLead time of the processesHours per average productInvestment in work-in-progressRupees per monthInter-departmental movesNumber and quantum of inter-departmental movesUtilisation of the resourcesPercent to total capacityEase of production controlNumber of job cards and control documents generated; Size of the progress chasing staffNumber of ownership changesNumber of times the responsibility for the job changes handsSheet2123456E100101C100100D011010B011001A0010102358101472018171514136911121619B11111C11111D111A111F111E111111I111111G111111H111111J111111Sheet3 -
Rank Order Clustering(ROC)
Columns as binary numbers
Value of the binary numberRankColumn1241Column2125Column3134Column4241Column556Column6183 -
Rank Order Clustering(ROC)
Machines
Components
Sheet1VarietyVery low varietyMedium VarietyHigh VarietyOne off executionFlow attributesStream lined flowMultiple flow pathsDis-organised flowJumbled flowVolume attributesHigh VolumeMid-volumeLow volumeOne pieceExamples of operating systemsProcess industry; Mass Product/ Service providerBatch Manufacturing firmsJob shops; Customised Product/ Service ProviderProject ShopsTypes of layout usedLine Layout; Product LayoutGroup Technology LayoutProcess LayoutFixed Position LayoutProcess LayoutProduct LayoutAdvantagesSharing of specialised and costly equipmentsStandardised product/ process routingMore flexibilityOperational Control is simplerLess vulnerable to breakdownsHigh output rate is possibleDisadvantagesLarge Inventory buildupLow tolerance for breakdownsOperational control difficultDuplication of equipments leading to high costExcess Material HandlingLess flexibility due to dedication of resourcesPerformance MeasureBasis for measurementDistance travelled by jobs in the shopfloorKg - Metres of job movement for each productSpace utilisation indexMinimum space required to actual space utilisedMaterial Handling costsRupees per monthLead time of the processesHours per average productInvestment in work-in-progressRupees per monthInter-departmental movesNumber and quantum of inter-departmental movesUtilisation of the resourcesPercent to total capacityEase of production controlNumber of job cards and control documents generated; Size of the progress chasing staffNumber of ownership changesNumber of times the responsibility for the job changes handsSheet2146325E111000C110000D000111B001110A0001012815310472018171514136911121619B11111C11111D111A111F111E111111I111111G111111H111111J111111Sheet3 -
Example)
Machines
Components
1.Use ROC to rank families and machine groups
2.What will happen if we did column sorting first and then row?
12345678910A11111B111C11111D111E111F11G111(
)
(
)
(
)
[
]
(
)
0
.
8
30
15
20
4
30
12
15
11
20
=
+
+
+
+
=
=
*
i
i
i
i
i
l
x
l
x
(
)
(
)
(
)
[
]
(
)
5
.
5
30
15
20
5
.
1
30
5
.
9
15
5
.
8
20
=
+
+
+
+
=
=
*
i
i
i
i
i
l
y
l
y
Census Tract Population Latitude Longitude
15 2,711 42.134 -80.041
16 4,161 42.129 -80.023
17 2,988 42.122 -80.055
25 2,512 42.112 -80.066
26 4,342 42.117 -80.052
27 6,687 42.116 -80.023
28 6,789 42.107 -80.051
Total 30,190
cycle_time
task_times
N
=
t
=
units/hr
output
tual
desired/ac
sec./day
time
available
)
(sec./unit
time
Cycle
kstations
actual_wor
N
;
C
N
T
E
-
=
a
a
task time
bottleneck
time
available
output
Maximum
=
Max Produc
tion
=
Production
time per
day
Bottleneck
time
=
420 mins
3.25 mins
/
unit
=
129 units
Required C
ycle Time,
C
=
Production
time per
period
Required
output per
period
C
=
420 mins
/
day
100 units
/
day
=
4.2 mins
/
unit
Theoretica
l Min.
Number of
Workstati
ons,
N
N
=
Sum of tas
k times (T
)
Cycle time
(C)
t
t
N
=
11.35 mins
/
unit
4.2 mins
/
unit
=
2.702,
or 3
t
Efficiency
=
Sum of tas
k times (T
)
Actual num
ber of wor
kstations
(Na) x Cyc
le time (C
)
Efficiency
=
11.35 mins
/
unit
(3)(4.2min
s
/
unit)
=.
901
(
)
(
)
sec./unit
60
units/hr
60
sec/min
60
x
min/hr
60
units/hr
output
desired
sec./day
time
available
)
(sec./unit
time
Cycle
=
=
=
hour
per
pizzas
or
units/hr,
72
sec./unit
50
sec./hr.
3600
time
task
bottleneck
time
available
output
Maximum
=
=
=
(
)
stations
3
or
2.75,
n
sec/statio
60
seconds
165
time
cycle
times
task
TM
=
=
=
(
)
91.7%
100
sec.
60
x
stations
3
sec.
165
NC
t
(%)
Efficiency
=
=
=
8.3%
91.7%
100%
delay
Balance
=
-
=
1234567891011121314151617181920
A111
B1111
C1111
D111
E111111
F111
G111111
H111111
I111111
J111111
2358101472018171514136911121619
B11111
C11111
D111
A111
F111
E111111
I111111
G111111
H111111
J111111
123456
A001010
B011001
C100100
D011010
E100101
123456
E100101
C100100
D011010
B011001
A001010
14632
E11100
C11000
D00011
B00111
A00010
Task
Time (Mins)
Description
Predecessors
A
2
Assemble frame
None
B
1
Mount switch
A
C
3.25
Assemble motor housing
None
D
1.2
Mount motor housing in frame
A, C
E
0.5
Attach blade
D
F
1
Assemble and attach safety grill
E
G
1
Attach cord
B
H
1.4
Test
F, G
Task
Time (Mins)
Description
Predecessors
A
2
Assemble frame
None
B
1
Mount switch
A
C
3.25
Assemble motor housing
None
D
1.2
Mount motor housing in frame
A, C
E
0.5
Attach blade
D
F
1
Assemble and attach safety grill
E
G
1
Attach cord
B
H
1.4
Test
E, G
Example 10.4 Vicki's Pizzeria and the Precedence Diagram
ImmediateTask Time
Work ElementTask DescriptionPredecessor(seconds
ARoll doughNone50
BPlace on cardboard backingA5
CSprinkle cheeseB25
DSpread SauceC15
EAdd pepperoniD12
FAdd sausageD10
GAdd mushroomsD15
HShrinkwrap pizzaE,F,G18
IPack in boxH15
Total task time
165