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facility and capacity planning

facility and capacity planning. By: Drowel M. Valeros. Facility and capacity planning. Is the process of determining the type, amount, and timing of resources and capacity decision.

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facility and capacity planning

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  1. facility and capacity planning By: Drowel M. Valeros

  2. Facility and capacity planning • Is the process of determining the type, amount, and timing of resources and capacity decision. • The objective is to specify the proper mix facilities, equipment, and labor required to meet both current and future product demand.

  3. Factors influencing facility and capacity changes

  4. Key concept of facilities and capacity planning • Involves three basic question: • What will be done at the facility? facility charters- it defines the focus of a facility, that is, the area of expertise in which the facility specializes. • How much capacity is needed? • When should capacity be changed?

  5. Definition of Facility Planning Facility Planning determines how an activity’s tangible fixed assets best support achieving the activity’s objectives. 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.

  6. Facility Planning Structural Design Facility Location Facility Design Layout Design Hierarchy of Facility Planning Location: is the placement of a facility with respect to customers, suppliers, and other facilities with which it interfaces. Structure: consists of the building and services (e.g., gas, water, power, heat, light, air, sewage). Layout: consists of all equipment, machinery, and furnishings within the structure. Handling System: consists of the mechanism by which all interactions required by the layout are satisfied (e.g., materials, personnel, information, and equipment handling systems). Handling System Design

  7. Facility planning objectives 1.Support the organization's mission through improved material handling, materials control, and good housekeeping. 2.Effectively utilize people, equipment, space, and energy. 3.Minimize capital investment. 4.Be flexible and promote ease of maintenance. 5.Provide for employee safety and job satisfaction.

  8. Material Handling Systems • Material handling – moving materials and products through a facility • 2 types of material handling: • Fixed path device – • Items always travel on the same path • Assembly lines • Examples: pipes, chutes, conveyors, etc. • Variable path device • Can be steered and move in various directions • Examples: forklifts, overhead cranes, tractors, trucks, etc.- they require an operator

  9. What Is Facility Layout Planning • Location or arrangement of everything within & around buildings • Objectives are to maximize • Customer satisfaction • Utilization of space, equipment, & people • Efficient flow of information, material, & people • Employee morale & safety

  10. Types of Layout • Fixed-position layout • large bulky projects such as ships and buildings • Process-oriented layout • deals with low-volume, high-variety production (“job shop”, intermittent production) • Office layout • positions workers, their equipment, and spaces/offices to provide for movement of information • Retail/service layout • allocates shelf space and responds to customer behavior • Warehouse layout • addresses trade-offs between space and material handling • Product-oriented layout • seeks the best personnel and machine use in repetitive or continuous production

  11. Fixed Position Layout • Design is for stationary project • Workers and equipment come to site • Usually used because product movement is difficult (ship building) or for convenience (on-site repair). • This is often managed through Project Management.

  12. Process Oriented Layout • Similar processes/functions are grouped together (job shop) • Department areas having similar processes located in close proximity • Primary advantages • flexibility, utilization of machinery/equipment. • Disadvantages • greater handling of materials/customers, more complex scheduling, WIP/waiting lines, departmental boundaries

  13. Office layout • Design positions people, equipment, & offices for maximum information flow • Arranged by process or product • Example: Payroll dept. is by process • Relationship chart used • Examples • Insurance company • Software company

  14. Accounting Finance Fin. Acct. Manager Brand X Office layout

  15. Video Retail/service layout • Design maximizes product exposure to customers • Decision variables • Store flow pattern • Allocation of (shelf) space to products • Types • Grid design • Free-flow design

  16. Grocery Store Bread Meat Produce Milk Frozen Foods Check-out Carts Office Retail/service layout- grid design

  17. Apparel Store Trans.Counter Feature Display Table Retail/service layout- free-flow design

  18. Warehouse layout • Design balances space (cube) utilization & handling cost • Similar to process layout • Items moved between dock & various storage areas • Optimum layout depends on • Variety of items stored • Number of items picked

  19. Conveyor Truck Order Picker Zones Warehouse layout

  20. Product Layout • Processes/work stations arranged in sequence of activities required to produce the product/service (Assembly Line). • Use for high volume, standardized products and services • WIP and handling of materials/customers is minimized • Equipment is specialized, capital intensive • Output is dependent on the slowest work station • The “line” must be balanced for effectiveness.

  21. Product Layouts Product A Step 1 Step 2 Step 3 Step 4 Product B Step 1 Step 2 Step 3 Step 4 Product C Step 1 Step 2 Step 3 Step 4 7-14

  22. Facility Factor • Shop location • Shop layout • Shop Si z e • Warehouse Si z e • Warehouse layout • In USA • Operating in 5 0 states • 4,3 0 0 facilities for all sort of outlets • Around the globe • 14 countries • 4 0 81 stores

  23. Facility Factor • Shop location • Shop layout • Shop Size • Warehouse Size • Warehouse layout • New layout for customer experience. Shop layouts has been classified based on Wal-Mart's operation • Wal-Mart supercenters • a full-service supermarket • Discount stores • discount department stores • Neighborhood Markets • Shop for daily necessary goods • Sam’s Club warehouses • membership based stores

  24. Facility Factor • Shop location • Shop layout • Shop Size • Warehouse Size • Warehouse layout • Wal-Mart U.S. 602.9 million sft. • Wal-Mart international 269.9 million sft • Sam’s club79.4 million sft • Total Size 952.2 million sft. • Average size of each outlet • Wal-Mart supercenters • Varies between 51,000 sft to 51,000 sft. • Average size 102,000 sft. • Discount stores • Varying from 98,000 to 261,000 square with an average of 197,000 sft. • Neighborhood Markets • Averages about 42,000 sft. • Sam’s Club warehouses • Average club size of 133,000  sft.

  25. Facility Factor • Shop location • Shop layout • Shop Size • Warehouse Size • Warehouse layout • Single large warehouse for a single state. • Covers all stores of a state • Also has warehouse for Sam’s club which is a membership based store.

  26. Facility Factor • Shop location • Shop layout • ShopSi z e • Warehouse Si z e • Warehouse layout • Data warehousing layout • A networked connection with store inventory with suppliers for inventory supply when needed.

  27. thank you very muchThe end

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