MBA 8452 Systems and Operations Management

1. MBA 8452 Systems and Operations Management Facility Layout

2. Objective: Manufacturing Design • Be able to identify and explain the different Facilities Layout • Be able to Solve Problems using Assembly Line Balancing

3. Facility Layout • The physical arrangement of everything needed for production of goods or services • equipment/machines • raw materials/finished goods storage areas • departments/workstations • aisles and common areas

4. Benefits of Good Layout • Overall, improved effectiveness and efficiency of the production system • Higher utilization of space, equipment, and people • Improved flow of information, materials, and work • More convenience to the customer • Improved employee morale and working conditions

5. Basic Production Layouts • Process Layout • Product Layout • Group Technology (Cellular) Layout • Fixed-Position Layout

6. Process Layout • Similar activities and machines/operations are grouped together by functions into departments or work centers (job shops) • Low-volume high-variety products • Inputs follow different paths for processing • Examples: department stores, universities, hospitals

7. Process Layout Example:Manufacturing Milling Department Lathe Department Drilling Department L L M M D D D D M M D D D D L L L L G G G P G G G P L L Painting Department Grinding Department L L A A A Receiving and Shipping Assembly

8. Women’s lingerie Shoes Housewares Women’s dresses Cosmetics & Jewelry Children’s department Entry & display area Men’s department Women’s sportswear Process Layout Example:Service

9. Designing Process Layout • What factors might we consider when determining the locations of process areas, or departments? • interdepartmental transportation • material handling costs • space & labor utilization • flexibility • etc.

10. Product Layout • Activities and machines/operations are arranged sequentially in order by product specifications (flow shops) • High-volume standardized products • Inputs follow the same path • Examples: assembly lines

11. IN OUT Product Layout: An Example

12. Station 1 Station 2 Station 3 1 2 3 4 5 6 5 min/unit 8 min/unit 3 min/unit task Assembly Line Balancing • The Problem: how to organize jobs or tasks such that each station has the same work load/time for processing a unit? What’s the problem here?

13. 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 Line BalancingExample • You’ve been assigned the job of setting up an electric fan assembly line with the following tasks:

14. 2 1 1 1.4 A B G H C D E F 3.25 1.2 .5 1 Step 1: Draw Precedence Diagram • Which process step defines the maximum rate of production?

15. 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 The Bottleneck

16. Step 2:Compute Required Cycle Time • If we are required to assembly 100 fans per day and we know that total production time per day is 420 mins = 7 hrs  60 min/hr, then What does this figure represent?

17. Step 3:Calculate Theoretical Minimum Number of Stations Therefore, Nt = 3 (always round up)

18. Step 4: Use Heuristic Rules to Assign Tasks to Stations • most-following task rule • Assign tasks in order of the largest number of following tasks • longest task time rule • Assign tasks in order of the longest task time Note: One of these rules can be used as the primary rule and another as the secondary tie-breaking rule

19. Step 4:Cont. • If we try the most-followers rule as the primary rule and the longest task time as tie-breaking rule

20. Step 5: Evaluate Efficiency of the Line Note: If efficiency is unsatisfactory, rebalance using another rule to improve efficiency

21. Example: Some Further Questions • What is the effective/achieved cycle time? Answer: 4.1 mins. • What is the idle time of station 1? Total idle time of the assembly line? Answer: 0.2 mins and 1.25 mins, respectively • Which station is the bottleneck? Answer: station 3

22. Product vs. Process Layouts PRODUCT LAYOUTPROCESS LAYOUT 1. DescriptionSequential arrangement Functional grouping of machines of machines 2. Process Continuous, mass prod. Intermittent, job shop 3. Product Standardized, make-to-stock Varied, make-to-order 4. Demand Stable Fluctuating 5. Volume High Low 6. Equipment Special purpose General purpose 7. Workers Limited skills Varied skills 8. Material handling Fixed path (conveyor) Variable path (forklift) 9. Goal Equalize work at Minimize material each station handling cost 10. Advantage Efficiency Flexibility

23. Retail Service Layout • Goal--maximize net profit per square foot of floor space • Humanistic considerations • Ambient Conditions • Spatial Layout and Functionality • Signs, Symbols, and Artifacts

24. Fixed Position Layout • What our our primary considerations for a fixed position layout?

25. Group Technology: Cellular Layout • Dissimilar machines are grouped into work centers (cells) to process products with similar shapes and processing requirements

26. Assembly 4 6 7 9 5 8 2 10 12 1 3 11 A B C Raw materials Cellular Layout Example:Original Process Layout

27. Cellular Layout Example:Part Routing Matrix

28. Cellular Layout Example:Cell Formation

29. Assembly 8 10 9 12 11 4 6 Cell1 Cell 3 Cell 2 7 2 1 3 5 Raw materials A C B Cellular Layout Example: Revised Layout with Three Cells