Heizer 09

© 2008 Prentice Hall, Inc. 9 – 1

Operations ManagementOperations ManagementChapter 9 – Chapter 9 – Layout StrategiesLayout Strategies

PowerPoint presentation to accompany PowerPoint presentation to accompany Heizer/Render Heizer/Render Principles of Operations Management, 7ePrinciples of Operations Management, 7eOperations Management, 9e Operations Management, 9e


OutlineOutline

Global Company Profile: Global Company Profile: McDonald’sMcDonald’s

The Strategic Importance of The Strategic Importance of Layout DecisionsLayout Decisions

Types of LayoutTypes of Layout

Office LayoutOffice Layout


Outline – ContinuedOutline – Continued

Retail LayoutRetail Layout ServicescapesServicescapes

Warehousing and Storage LayoutsWarehousing and Storage Layouts Cross-DockingCross-Docking

Random DockingRandom Docking

CustomizingCustomizing

Fixed-Position LayoutFixed-Position Layout



Process-Oriented LayoutProcess-Oriented Layout Computer Software for Process-Computer Software for Process-

Oriented LayoutsOriented Layouts Work CellsWork Cells

Requirements of Work CellsRequirements of Work Cells Staffing and Balancing Work CellsStaffing and Balancing Work Cells The Focused Work Center and the The Focused Work Center and the

Focused FactoryFocused Factory



Repetitive and Product-Oriented Repetitive and Product-Oriented LayoutLayout Assembly-Line BalancingAssembly-Line Balancing


Learning ObjectivesLearning Objectives

When you complete this chapter you When you complete this chapter you should be able to:should be able to:

1.1. Discuss important issues in office layoutDiscuss important issues in office layout

2.2. Define the objectives of retail layoutDefine the objectives of retail layout

3.3. Discuss modern warehouse management Discuss modern warehouse management and terms such as ASRS, cross-docking, and terms such as ASRS, cross-docking, and random stockingand random stocking

4.4. Identify when fixed-position layouts are Identify when fixed-position layouts are appropriateappropriate


Learning ObjectivesLearning Objectives

When you complete this chapter, you When you complete this chapter, you should be able to:should be able to:

5.5. Explain how to achieve a good process-Explain how to achieve a good process-oriented facility layoutoriented facility layout

6.6. Define work cell and the requirements of Define work cell and the requirements of a work cella work cell

7.7. Define product-oriented layoutDefine product-oriented layout

8.8. Explain how to balance production flow Explain how to balance production flow in a repetitive or product-oriented facilityin a repetitive or product-oriented facility


Innovations at McDonald’sInnovations at McDonald’s

Indoor seating (1950s)Indoor seating (1950s) Drive-through window (1970s)Drive-through window (1970s) Adding breakfast to the menu Adding breakfast to the menu

(1980s)(1980s) Adding play areas (late 1980s)Adding play areas (late 1980s) Redesign of the kitchens (1990s)Redesign of the kitchens (1990s) Self-service kiosk (2004)Self-service kiosk (2004) Now three separate dining sectionsNow three separate dining sections


Innovations at McDonald’sInnovations at McDonald’s

Indoor seating (1950s)Indoor seating (1950s) Drive-through window (1970s)Drive-through window (1970s) Adding breakfast to the menu Adding breakfast to the menu

(1980s)(1980s) Adding play areas (late 1980s)Adding play areas (late 1980s) Redesign of the kitchens (1990s)Redesign of the kitchens (1990s) Self-service kiosk (2004)Self-service kiosk (2004) Now three separate dining sectionsNow three separate dining sections

Six out of the Six out of the seven are seven are

layout layout decisions!decisions!


McDonald’s New LayoutMcDonald’s New Layout

Seventh major innovation Seventh major innovation Redesigning all 30,000 outlets around Redesigning all 30,000 outlets around

the worldthe world Three separate dining areasThree separate dining areas

Linger zone with comfortable chairs and Linger zone with comfortable chairs and Wi-Fi connectionsWi-Fi connections

Grab and go zone with tall countersGrab and go zone with tall counters Flexible zone for kids and familiesFlexible zone for kids and families

Facility layout is a source of Facility layout is a source of competitive advantagecompetitive advantage


Strategic Importance of Strategic Importance of Layout DecisionsLayout Decisions

The objective of layout strategy The objective of layout strategy is to develop a cost-effective is to develop a cost-effective layout that will meet a firm’s layout that will meet a firm’s

competitive needscompetitive needs


Layout Design Layout Design ConsiderationsConsiderations

Higher utilization of space, equipment, Higher utilization of space, equipment, and peopleand people

Improved flow of information, materials, Improved flow of information, materials, or peopleor people

Improved employee morale and safer Improved employee morale and safer working conditionsworking conditions

Improved customer/client interactionImproved customer/client interaction

FlexibilityFlexibility



1.1. Office layout Office layout

2.2. Retail layout Retail layout

3.3. Warehouse layoutWarehouse layout

4.4. Fixed-position layoutFixed-position layout

5.5. Process-oriented layoutProcess-oriented layout

6.6. Work-cell layout Work-cell layout

7.7. Product-oriented layoutProduct-oriented layout



1.1. Office layout: Positions workers, Office layout: Positions workers, their equipment, and spaces/offices their equipment, and spaces/offices to provide for movement of to provide for movement of informationinformation

2.2. Retail layout: Allocates shelf space Retail layout: Allocates shelf space and responds to customer behavior and responds to customer behavior

3.3. Warehouse layout: Addresses trade-Warehouse layout: Addresses trade-offs between space and material offs between space and material handlinghandling



4.4. Fixed-position layout: Addresses Fixed-position layout: Addresses the layout requirements of large, the layout requirements of large, bulky projects such as ships and bulky projects such as ships and buildingsbuildings

5.5. Process-oriented layout: Deals with Process-oriented layout: Deals with low-volume, high-variety production low-volume, high-variety production (also called job shop or intermittent (also called job shop or intermittent production)production)



6.6. Work cell layout: Arranges Work cell layout: Arranges machinery and equipment to focus machinery and equipment to focus on production of a single product or on production of a single product or group of related productsgroup of related products

7.7. Product-oriented layout: Seeks the Product-oriented layout: Seeks the best personnel and machine best personnel and machine utilizations in repetitive or utilizations in repetitive or continuous productioncontinuous production


Good Layouts ConsiderGood Layouts Consider

1.1. Material handling equipmentMaterial handling equipment

2.2. Capacity and space requirementsCapacity and space requirements

3.3. Environment and aestheticsEnvironment and aesthetics

4.4. Flows of informationFlows of information

5.5. Cost of moving between various Cost of moving between various work areaswork areas


Layout StrategiesLayout Strategies

Table 9.1Table 9.1

OfficeOffice RetailRetailWarehouse Warehouse

(storage)(storage)

ExamplesExamples

Allstate InsuranceAllstate Insurance

Microsoft Corp.Microsoft Corp.

Kroger’sKroger’s Supermarket Supermarket

Walgreen’sWalgreen’s

Bloomingdale’sBloomingdale’s

Federal-Mogul’sFederal-Mogul’s warehouse warehouse

The Gap’sThe Gap’s distribution center distribution center

Problems/IssuesProblems/Issues

Locate workers Locate workers requiring frequent requiring frequent contact close to contact close to one anotherone another

Expose customer Expose customer to high-margin to high-margin itemsitems

Balance low-cost Balance low-cost storage with low-storage with low-cost material cost material handlinghandling



Table 9.1Table 9.1

Project Project (fixed position)(fixed position)

Job Shop Job Shop (process oriented)(process oriented)

ExamplesExamples

Ingall Ship BuildingIngall Ship Building Corp. Corp.

Trump PlazaTrump Plaza

Pittsburgh AirportPittsburgh Airport

Arnold Palmer HospitalArnold Palmer Hospital

Hard Rock CaféHard Rock Café

Olive GardenOlive Garden


Move material to the Move material to the limited storage areas limited storage areas around the sitearound the site

Manage varied material Manage varied material flow for each productflow for each product



Table 9.1Table 9.1

Work Cells Work Cells (product families)(product families)

Repetitive/ Continuous Repetitive/ Continuous (product oriented)(product oriented)

ExamplesExamples

Hallmark CardsHallmark Cards

Wheeled CoachWheeled Coach

Standard AeroStandard Aero

Sony’s TV assemblySony’s TV assembly line line

Toyota ScionToyota Scion


Identify a product Identify a product family, build teams, family, build teams, cross train team cross train team membersmembers

Equalize the task time Equalize the task time at each workstationat each workstation


Office LayoutOffice Layout

Grouping of workers, their equipment, Grouping of workers, their equipment, and spaces to provide comfort, and spaces to provide comfort, safety, and movement of informationsafety, and movement of information

Movement of Movement of information is main information is main distinctiondistinction

Typically in state of Typically in state of flux due to frequent flux due to frequent technological technological changeschanges


Relationship ChartRelationship Chart

Figure 9.1Figure 9.1


Supermarket Retail LayoutSupermarket Retail Layout

Objective is to maximize Objective is to maximize profitability per square foot of profitability per square foot of floor spacefloor space

Sales and profitability vary Sales and profitability vary directly with customer exposuredirectly with customer exposure


Five Helpful Ideas for Five Helpful Ideas for Supermarket LayoutSupermarket Layout

1.1. Locate high-draw items around the Locate high-draw items around the periphery of the storeperiphery of the store

2.2. Use prominent locations for high-impulse Use prominent locations for high-impulse and high-margin itemsand high-margin items

3.3. Distribute power items to both sides of Distribute power items to both sides of an aisle and disperse them to increase an aisle and disperse them to increase viewing of other itemsviewing of other items

4.4. Use end-aisle locationsUse end-aisle locations

5.5. Convey mission of store through careful Convey mission of store through careful positioning of lead-off departmentpositioning of lead-off department


Store LayoutStore Layout



Retail SlottingRetail Slotting Manufacturers pay fees to retailers Manufacturers pay fees to retailers

to get the retailers to display (slot) to get the retailers to display (slot) their producttheir product

Contributing factorsContributing factors Limited shelf spaceLimited shelf space

An increasing number of new An increasing number of new productsproducts

Better information about sales Better information about sales through POS data collectionthrough POS data collection

Closer control of inventoryCloser control of inventory


Retail Store Shelf Space Retail Store Shelf Space PlanogramPlanogram

Computerized Computerized tool for shelf-tool for shelf-space space managementmanagement

Generated from Generated from store’s scanner store’s scanner data on salesdata on sales

Often supplied Often supplied by manufacturerby manufacturer

5 facings5 facings

Sh

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Sh

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2 ft.2 ft.


ServicescapesServicescapes Ambient conditions - background Ambient conditions - background

characteristics such as lighting, sound, characteristics such as lighting, sound, smell, and temperaturesmell, and temperature

Spatial layout and functionality - which Spatial layout and functionality - which involve customer involve customer circulation path planning, circulation path planning, aisle characteristics, and aisle characteristics, and product groupingproduct grouping

Signs, symbols, and Signs, symbols, and artifacts - characteristics artifacts - characteristics of building design that of building design that carry social significancecarry social significance


Warehousing and Storage Warehousing and Storage LayoutsLayouts

Objective is to optimize trade-offs Objective is to optimize trade-offs between handling costs and costs between handling costs and costs associated with warehouse spaceassociated with warehouse space

Maximize the total “cube” of the Maximize the total “cube” of the warehouse – utilize its full volume warehouse – utilize its full volume while maintaining low material while maintaining low material handling costshandling costs



All costs associated with the transactionAll costs associated with the transaction Incoming transportIncoming transport

StorageStorage

Finding and moving materialFinding and moving material

Outgoing transportOutgoing transport

Equipment, people, material, supervision, Equipment, people, material, supervision, insurance, depreciationinsurance, depreciation

Minimize damage and spoilageMinimize damage and spoilage

Material Handling CostsMaterial Handling Costs



Warehouse density tends to vary Warehouse density tends to vary inversely with the number of different inversely with the number of different items storeditems stored

Automated Storage and Automated Storage and Retrieval Systems (ASRSs) Retrieval Systems (ASRSs) can significantly improve can significantly improve warehouse productivity by warehouse productivity by an estimated 500%an estimated 500%

Dock location is a key Dock location is a key design elementdesign element


Cross-DockingCross-Docking Materials are moved directly from Materials are moved directly from

receiving to shipping and are not receiving to shipping and are not placed in storage placed in storage in the warehousein the warehouse

Requires tight Requires tight scheduling and scheduling and accurate shipments, accurate shipments, bar code or RFIDbar code or RFIDidentification used foridentification used foradvanced shipmentadvanced shipmentnotification as materialsnotification as materialsare unloadedare unloaded


Random StockingRandom Stocking Typically requires automatic identification Typically requires automatic identification

systems (AISs) and effective information systems (AISs) and effective information systemssystems

Random assignment of stocking locations Random assignment of stocking locations allows more efficient use of spaceallows more efficient use of space

Key tasksKey tasks

1.1. Maintain list of open locationsMaintain list of open locations

2.2. Maintain accurate recordsMaintain accurate records

3.3. Sequence items to minimize travel, pick timeSequence items to minimize travel, pick time

4.4. Combine picking ordersCombine picking orders

5.5. Assign classes of items to particular areasAssign classes of items to particular areas


CustomizingCustomizing

Value-added activities performed at Value-added activities performed at the warehousethe warehouse

Enable low cost and rapid response Enable low cost and rapid response strategiesstrategies Assembly of componentsAssembly of components

Loading softwareLoading software

RepairsRepairs

Customized labeling and packagingCustomized labeling and packaging


Shipping and receiving docks

Office

Cu

sto

miz

atio

n

Conveyor

Storage racks

Staging

Warehouse LayoutWarehouse LayoutTraditional LayoutTraditional Layout


Warehouse LayoutWarehouse LayoutCross-Docking LayoutCross-Docking Layout


Off

ice



Fixed-Position LayoutFixed-Position Layout

Product remains in one place Product remains in one place

Workers and equipment come to siteWorkers and equipment come to site

Complicating factorsComplicating factorsLimited space at siteLimited space at site

Different materials Different materials required at different required at different stages of the projectstages of the project

Volume of materials Volume of materials needed is dynamicneeded is dynamic


Alternative StrategyAlternative Strategy

As much of the project as possible As much of the project as possible is completed off-site in a product-is completed off-site in a product-oriented facilityoriented facility

This can This can significantly significantly improve efficiency improve efficiency but is only but is only possible when possible when multiple similar multiple similar units need to be createdunits need to be created


Process-Oriented LayoutProcess-Oriented Layout

Like machines and equipment are Like machines and equipment are grouped togethergrouped together

Flexible and capable of handling a Flexible and capable of handling a wide variety of products or wide variety of products or servicesservices

Scheduling can be difficult and Scheduling can be difficult and setup, material handling, and labor setup, material handling, and labor costs can be highcosts can be high


Surgery

Radiology

ER triage room

ER Beds Pharmacy

Emergency room admissions

Billing/exit

Laboratories


Patient A - broken leg

Patient B - erratic heart pacemaker



Layout at Arnold Palmer HospitalLayout at Arnold Palmer Hospital

Central break Central break and medical and medical

supply roomssupply rooms

Local linen Local linen supplysupply

Local Local nursing podnursing pod

Pie-shaped Pie-shaped roomsrooms

Central nurses Central nurses stationstation



Arrange work centers so as to Arrange work centers so as to minimize the costs of material minimize the costs of material handlinghandling

Basic cost elements areBasic cost elements are Number of loads (or people) moving Number of loads (or people) moving

between centersbetween centers

Distance loads (or people) move Distance loads (or people) move between centersbetween centers



Minimize cost = Minimize cost = ∑ ∑∑ ∑ X Xijij C Cijij

nn

i i = 1= 1

nn

j j = 1= 1

wherewhere nn == total number of total number of work centers or departmentswork centers or departments

i, ji, j == individual individual departmentsdepartments

XXijij == number of loads number of loads moved from department i to moved from department i to department jdepartment j

CCijij == cost to move a load cost to move a load between department i and between department i and department jdepartment j


Process Layout ExampleProcess Layout Example

1.1. Construct a “from-to matrix”Construct a “from-to matrix”

2.2. Determine the space requirementsDetermine the space requirements

3.3. Develop an initial schematic diagramDevelop an initial schematic diagram

4.4. Determine the cost of this layout Determine the cost of this layout

5.5. Try to improve the layoutTry to improve the layout

6.6. Prepare a detailed plan Prepare a detailed plan

Arrange six departments in a factory to Arrange six departments in a factory to minimize the material handling costs. minimize the material handling costs. Each department is 20 x 20 feet and the Each department is 20 x 20 feet and the building is 60 feet long and 40 feet wide.building is 60 feet long and 40 feet wide.


DepartmentDepartment AssemblyAssembly PaintingPainting MachineMachine ReceivingReceiving ShippingShipping TestingTesting(1)(1) (2)(2) Shop (3)Shop (3) (4)(4) (5)(5) (6)(6)

Assembly (1)Assembly (1)

Painting (2)Painting (2)

Machine Shop (3)Machine Shop (3)

Receiving (4)Receiving (4)

Shipping (5)Shipping (5)

Testing (6)Testing (6)

Number of loads per weekNumber of loads per week

50 100 0 0 20

30 50 10 0

20 0 100

50 0

0




Area 1Area 1 Area 2Area 2 Area 3Area 3

Area 4Area 4 Area 5Area 5 Area 6Area 660’60’

40’40’


Receiving Shipping TestingDepartment Department Department

(4) (5) (6)


Assembly Painting Machine ShopDepartment Department Department

(1) (2) (3)


100100

5050

2020

5050

5050

20201010

100100

3030


Interdepartmental Flow GraphInterdepartmental Flow Graph

1 2 3

4 5 6




Cost Cost == $50$50 ++ $200$200 ++ $40$40(1 and 2)(1 and 2) (1 and 3)(1 and 3) (1 and 6)(1 and 6)

++ $30$30 ++ $50$50 ++ $10$10(2 and 3)(2 and 3) (2 and 4)(2 and 4) (2 and 5)(2 and 5)


= $570= $570

Cost = Cost = ∑ ∑∑ ∑ X Xijij C Cijij

nn

i i = 1= 1

nn

j j = 1= 1



3030

5050

1010

5050

50502020

5050 100100

100100

Revised Interdepartmental Flow GraphRevised Interdepartmental Flow Graph

2 1 3

4 5 6




Cost Cost == $50$50 ++ $100$100 ++ $20$20(1 and 2)(1 and 2) (1 and 3)(1 and 3) (1 and 6)(1 and 6)



= $480= $480

Cost = Cost = ∑ ∑∑ ∑ X Xijij C Cijij

nn

i i = 1= 1

nn

j j = 1= 1


Area 1Area 1 Area 2Area 2 Area 3Area 3

Area 4Area 4 Area 5Area 5 Area 6Area 660’60’

40’40’


Receiving Shipping TestingDepartment Department Department

(4) (5) (6)


Painting Assembly Machine ShopDepartment Department Department

(2) (1) (3)


Computer SoftwareComputer Software

Graphical approach only works for Graphical approach only works for small problemssmall problems

Computer programs are available to Computer programs are available to solve bigger problemssolve bigger problems CRAFTCRAFT

ALDEPALDEP

CORELAPCORELAP

Factory FlowFactory Flow


CRAFT ExampleCRAFT Example

11 22 33 44 55 66

11 A A A A B B

22 A A A A B B

33 D D D D D D

44 C C D D D D

55 F F F F F D

66 E E E E E D

PATTERNPATTERN

TOTAL COST 20,100TOTAL COST 20,100EST. COST REDUCTION .00EST. COST REDUCTION .00ITERATION 0ITERATION 0

(a)(a)

11 22 33 44 55 66

11 D D D D B B

22 D D D D B B

33 D D D E E E

44 C C D E E F

55 A A A A A F

66 A A A F F F

PATTERNPATTERN

TOTAL COST 14,390TOTAL COST 14,390EST. COST REDUCTION 70.EST. COST REDUCTION 70.ITERATION 3ITERATION 3

(b)(b) Figure 9.9Figure 9.9


Computer SoftwareComputer Software

Three dimensional visualization Three dimensional visualization software allows managers to view software allows managers to view possible layouts and assess process, possible layouts and assess process, material material handling, handling, efficiency, efficiency, and safety and safety issuesissues


Work CellsWork Cells

Reorganizes people and machines Reorganizes people and machines into groups to focus on single into groups to focus on single products or product groupsproducts or product groups

Group technology identifies Group technology identifies products that have similar products that have similar characteristics for particular cellscharacteristics for particular cells

Volume must justify cellsVolume must justify cells

Cells can be reconfigured as Cells can be reconfigured as designs or volume changesdesigns or volume changes


Advantages of Work CellsAdvantages of Work Cells

1.1. Reduced work-in-process inventoryReduced work-in-process inventory

2.2. Less floor space requiredLess floor space required

3.3. Reduced raw material and finished Reduced raw material and finished goods inventorygoods inventory

4.4. Reduced direct laborReduced direct labor

5.5. Heightened sense of employee Heightened sense of employee participationparticipation

6.6. Increased use of equipment and Increased use of equipment and machinerymachinery

7.7. Reduced investment in machinery Reduced investment in machinery and equipmentand equipment


Improving Layouts Using Improving Layouts Using Work CellsWork Cells

Current layout - workers in Current layout - workers in small closed areas. small closed areas. Cannot increase output Cannot increase output without a third worker and without a third worker and third set of equipment.third set of equipment. Improved layout - cross-trained Improved layout - cross-trained

workers can assist each other. workers can assist each other. May be able to add a third worker May be able to add a third worker as additional output is needed.as additional output is needed.

Figure 9.10 (a)Figure 9.10 (a)


Improving Layouts Using Improving Layouts Using Work CellsWork Cells

Current layout - straight Current layout - straight lines make it hard to balance lines make it hard to balance tasks because work may not tasks because work may not be divided evenlybe divided evenly

Improved layout - in U Improved layout - in U shape, workers have better shape, workers have better access. Four cross-trained access. Four cross-trained workers were reduced.workers were reduced.

Figure 9.10 (b)Figure 9.10 (b)

U-shaped line may reduce employee movement and space requirements while enhancing communication, reducing the number of workers, and facilitating inspection


Requirements of Work CellsRequirements of Work Cells

1.1. Identification of families of productsIdentification of families of products

2.2. A high level of training, flexibility A high level of training, flexibility and empowerment of employeesand empowerment of employees

3.3. Being self-contained, with its own Being self-contained, with its own equipment and resourcesequipment and resources

4.4. Test (poka-yoke) at each station in Test (poka-yoke) at each station in the cellthe cell


Staffing and Balancing Staffing and Balancing Work CellsWork Cells

Determine the takt timeDetermine the takt time

Takt time =Takt time =Total work time availableTotal work time available

Units requiredUnits required

Determine the number Determine the number of operators requiredof operators required

Workers required =Workers required =Total operation time requiredTotal operation time required

Takt timeTakt time


Staffing Work Cells ExampleStaffing Work Cells Example

600 600 Mirrors per day requiredMirrors per day requiredMirror production scheduled for Mirror production scheduled for 88 hours per day hours per dayFrom a work balance chart From a work balance chart

total operation time total operation time = 140= 140 seconds seconds

Sta

nd

ard

tim

e re

qu

ired

Sta

nd

ard

tim

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qu

ired

OperationsOperations

AssembleAssemble PaintPaint TestTest LabelLabel Pack forPack forshipmentshipment

6060

5050

4040

3030

2020

1010

00


Staffing Work Cells ExampleStaffing Work Cells Example

600 600 Mirrors per day requiredMirrors per day requiredMirror production scheduled for Mirror production scheduled for 88 hours per day hours per dayFrom a work balance chart From a work balance chart

total operation time total operation time = 140= 140 seconds seconds

Takt timeTakt time = = (8(8 hrs hrs x 60x 60 mins mins) / 600) / 600 units units = .8= .8 mins mins = 48= 48 seconds seconds

Workers requiredWorkers required ==Total operation time requiredTotal operation time required

Takt timeTakt time

= 140 / 48 = 2.91= 140 / 48 = 2.91


Work Balance ChartsWork Balance Charts

Used for evaluating operation Used for evaluating operation times in work cellstimes in work cells

Can help identify bottleneck Can help identify bottleneck operationsoperations

Flexible, cross-trained employees Flexible, cross-trained employees can help address labor bottleneckscan help address labor bottlenecks

Machine bottlenecks may require Machine bottlenecks may require other approachesother approaches


Focused Work Center and Focused Work Center and Focused FactoryFocused Factory

Focused Work CenterFocused Work Center Identify a large family of similar products Identify a large family of similar products

that have a large and stable demandthat have a large and stable demand

Moves production from a general-purpose, Moves production from a general-purpose, process-oriented facility to a large work cellprocess-oriented facility to a large work cell

Focused FactoryFocused Factory A focused work cell in a separate facilityA focused work cell in a separate facility

May be focused by product line, layout, May be focused by product line, layout, quality, new product introduction, flexibility, quality, new product introduction, flexibility, or other requirementsor other requirements


Focused Work Center and Focused Work Center and Focused FactoryFocused Factory

Table 9.2Table 9.2

Work CellWork Cell Focused Work CenterFocused Work Center Focused FactoryFocused Factory

A work cell is a A work cell is a temporary product-temporary product-oriented arrangement oriented arrangement of machines and of machines and personnel in what is personnel in what is ordinarily a process-ordinarily a process-oriented facility.oriented facility.

A focused work center is A focused work center is a permanent product-a permanent product-oriented arrangement oriented arrangement of machines and of machines and personnel in what is personnel in what is ordinarily a process-ordinarily a process-oriented facility.oriented facility.

A focused factory is a A focused factory is a permanent facility to permanent facility to produce a product or produce a product or component in a component in a product-oriented product-oriented facility. Many focused facility. Many focused factories currently factories currently being built were being built were originally part of a originally part of a process-oriented process-oriented facility.facility.

Example: A job shop Example: A job shop with machinery and with machinery and personnel rearranged personnel rearranged to produce 300 unique to produce 300 unique control panels.control panels.

Example: Pipe bracket Example: Pipe bracket manufacturing at a manufacturing at a shipyard.shipyard.

Example: A plant to Example: A plant to produce window produce window mechanism for mechanism for automobiles.automobiles.


Repetitive and Product-Repetitive and Product-Oriented LayoutOriented Layout

1.1. Volume is adequate for high equipment Volume is adequate for high equipment utilizationutilization

2.2. Product demand is stable enough to justify high Product demand is stable enough to justify high investment in specialized equipmentinvestment in specialized equipment

3.3. Product is standardized or approaching a phase Product is standardized or approaching a phase of life cycle that justifies investment of life cycle that justifies investment

4.4. Supplies of raw materials and components are Supplies of raw materials and components are adequate and of uniform qualityadequate and of uniform quality

Organized around products or families of Organized around products or families of similar high-volume, low-variety productssimilar high-volume, low-variety products


Product-Oriented LayoutsProduct-Oriented Layouts Fabrication lineFabrication line

Builds components on a series of machinesBuilds components on a series of machines Machine-pacedMachine-paced Require mechanical or engineering changes Require mechanical or engineering changes

to balanceto balance Assembly lineAssembly line

Puts fabricated parts together at a series of Puts fabricated parts together at a series of workstationsworkstations

Paced by work tasksPaced by work tasks Balanced by moving tasksBalanced by moving tasks

Both types of lines must be balanced so that the Both types of lines must be balanced so that the time to perform the work at each station is the sametime to perform the work at each station is the same


Product-Oriented LayoutsProduct-Oriented Layouts

1.1. Low variable cost per unitLow variable cost per unit

2.2. Low material handling costsLow material handling costs

3.3. Reduced work-in-process inventoriesReduced work-in-process inventories

4.4. Easier training and supervisionEasier training and supervision

5.5. Rapid throughputRapid throughput

AdvantagesAdvantages

1.1. High volume is requiredHigh volume is required

2.2. Work stoppage at any point ties up the Work stoppage at any point ties up the whole operationwhole operation

3.3. Lack of flexibility in product or production Lack of flexibility in product or production ratesrates

DisadvantagesDisadvantages


McDonald’s Assembly LineMcDonald’s Assembly Line



Disassembly LinesDisassembly Lines

• Disassembly is being considered in Disassembly is being considered in new product designsnew product designs

• ““Green” issues and recycling Green” issues and recycling standards are important considerationstandards are important consideration

• Automotive Automotive disassembly is disassembly is the 16the 16thth largest largest industry in industry in the USthe US


Assembly-Line BalancingAssembly-Line Balancing

Objective is to minimize the imbalance Objective is to minimize the imbalance between machines or personnel while between machines or personnel while meeting required outputmeeting required output

Starts with the precedence Starts with the precedence relationshipsrelationships

1.1. Determine cycle timeDetermine cycle time

2.2. Calculate theoretical Calculate theoretical minimum number of minimum number of workstationsworkstations

3.3. Balance the line by Balance the line by assigning specific assigning specific tasks to workstationstasks to workstations


Wing Component ExampleWing Component Example

This means that This means that tasks B and E tasks B and E cannot be done cannot be done until task A has until task A has been completedbeen completed

PerformancePerformance Task Must FollowTask Must FollowTimeTime Task ListedTask Listed

TaskTask (minutes)(minutes) BelowBelow

AA 1010 ——BB 1111 AACC 55 BBDD 44 BBEE 1212 AAFF 33 C, DC, DGG 77 FFHH 1111 EEII 33 G, HG, H

Total time Total time 6666






Total time Total time 6666 I

GF

C

D

H

B

E

A

10

1112

5

4 3

711 3

Figure 9.13


I

GF

C

D

H

B

E

A

10

1112

5

4 3

711 3

Figure 9.13





Wing Component ExampleWing Component Example480 available

mins per day40 units required

Cycle time =

Production time available per day

Units required per day

= 480 / 40= 12 minutes per unit

Minimum number of

workstations=

∑ Time for task i

Cycle time

n

i = 1

= 66 / 12= 5.5 or 6 stations



I

GF

C

D

H

B

E

A

10

1112

5

4 3

711 3

Figure 9.13





480 available mins per day

40 units required

Cycle time = 12 mins

Minimum workstations = 5.5 or 6

Line-Balancing Heuristics

1. Longest task time Choose the available task with the longest task time

2. Most following tasks Choose the available task with the largest number of following tasks

3. Ranked positional weight

Choose the available task for which the sum of following task times is the longest

4. Shortest task time Choose the available task with the shortest task time

5. Least number of following tasks

Choose the available task with the least number of following tasks

Table 9.4


480 available mins per day

40 units required








I

GF

H

C

D

B

E

A

10 11

12

5

4

3 7

11

3

Station 1

Station 2

Station 4

Station 5

Station 3

Station 6

Figure 9.14






Wing Component ExampleWing Component Example480 available

mins per day40 units required



Efficiency =∑ Task times

(Actual number of workstations) x (Largest cycle time)

= 66 minutes / (6 stations) x (12 minutes)

= 91.7%

Heizer 09

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Transcript of Heizer 09