SUBJECT:

OPERATION MANAGEMENT

GUIDED BY: SIR SIRAAJ KANDHRO

TOPIC :CAPACITY AND FACILITIES

TEHNIAT FATIMA SHAH: R/N 74

UROOSA FAROOQUI: R/N 79

AZRA PARVEEN: R/N 20

FARIYAL SABIR : R/N54

PRESENTED BY:

ThemeFacility PlanningCapacity PlanningEfficiency and UtilizationImportance of Capacity DecisionsFacility LayoutFactors affecting layoutTypes of layoutsService Location Strategies

CONTENTS

THEME

Time

Ag

gre

gate

d o

utp

ut

Estimate of current capacity

Forecast demand

Measure aggregate capacity and demand

Identify the alternative capacity plans

Choose the most appropriate capacity plan

CAPACITY: the capacity of an operation is the maximum level of value-added activity over a period of time that the process can achieve under normal operating conditions.

FACILITY: Facilities management involves the management and development of the workplace to integrate people and their work in the operation to achieve the objectives of the organization.

CAPACITY AND FACILITY

HOW MUCH LONG RANGE CAPACITY NEEDEDWHEN MORE CAPACITY IS NEEDEDWHERE FACILITY SHOULD BE LOCATEDHOW FACILITY SHOULD BE ARRANGED

FACILITY PLANING

approach for determining the overall capacity level of capital intensive resources, including facilities,

equipment, and overall labor force size.

Capacity planning

Design capacityMaximum obtainable output

Effective capacity, expected variationsMaximum capacity subject to planned and

expected variations such as maintenance, coffee breaks, scheduling conflicts.

Actual output, unexpected variations and demandRate of output actually achieved--cannot exceed

effective capacity. It is subject to random disruptions: machine break down, absenteeism, material shortages and most importantly the demand.

9

Various Capacities

10

Efficiency and Utilization

Actual outputEfficiency =

Effective capacity

Actual outputUtilization =

Design capacity

Best Operating Level and Size

Alternative 1: Purchase one large facility, requiring one large

initial investment Alternative 2: Add capacity incrementally in smaller

chunks as needed

facilitiesProduct

or services

operations

Human consideration

External forces

process

DETERMINANTS OF EFFECTIVE CAPACITY

Impacts ability to meet future demandsAffects operating costsMajor determinant of initial costsInvolves long-term commitmentAffects competitivenessAffects ease of management

13

Importance of Capacity Decisions

A facility layout is an arrangement of everything needed for production of goods or delivery of services. A facility is an entity that facilitates the performance of any job. It may be a machine tool, a work centre, a manufacturing cell, a machine shop, a department, a warehouse, etc

Facility Layout Definition

material

product

machinery

laborlocation

Factors affecting layout

Related to materialLess material

handling and minimum transportation cost

Less waiting time for in process-inventory

Safe working condition form the point of ventilation ,lighting etc.

Minimum movement of workers

Least chances of accidents.

Proper space for machinery,workers,tools.

Scope of facility layout

Related to work place

Process layout

Product layout

Fixed-positio

n layout

Types of layouts

Car 1

Car 2

Car 3

Process layouts, also known as

functional layouts, group similar

activities together in

departments or work centers

according to the process or

function they perform.

The specialized machines and

equipments are grouped

together one after then other in

order of sequence required in

production process

Process layout:

convyer

Product layouts, better known as assembly lines, arrange activities in a line according to the sequence of operations that need to

be performed to assemble a particular product. Each product or has its own

"line" specifically designed to meet its requirements. The flow of work is orderly

and efficient, moving from one workstation to another down the assembly line until a finished product comes off the end of the

line.

Product layout

Fixed-position layout

Fixed-position

layouts are typical

of projects in

which the product

produced is too

fragile, bulky, or

heavy to move.

Ships, houses, and

aircraft are

examples. In this

layout, the product

remains stationary

for the entire

manufacturing

cycle.

Maximize the volume of business and revenue:Purchasing power of the customer-drawing

area.Service and image compatibility with the

customer-drawing area.Competition in the area.Quality of the competition.Uniqueness of the firm’s and competitor’s

locations. Physical qualities of facilities and neighboring

businesses.Operating policies of the firm.Quality of management.

Service Location Strategies