Facility Notes Theory: 1.

Strategic Facility Planning: Strategic facility planning recognizes that every decision made in business planning has a direct impact on an organizations real estate assets and needs. The purpose of the SFP plan, therefore, is to develop a flexible and implementable plan based on the specific and unique considerations of the individual business. A strategic facility plan (SFP) is defined as a two-to-five year facilities plan encompassing an entire portfolio of owned and/or leased space that sets strategic facility goals based on the organizations strategic (business) objectives. The strategic facilities goals, in turn, determine short-term tactical plans, including prioritization of, and funding for, annual facility related projects. The SFP identifies The type, quantity and location of spaces required to fully support the organizations business initiatives and should be framed within the organizations vision. SFP includes Following primary components: o An understanding of the organizations culture and core values a o An analysis of how existing and new facilities must manifest that culture and core values within the physical space or support their change o An in-depth analysis of existing facilitiesincluding location, capability, utilization and condition o An achievable and affordable (approved) plan that translates the goals of the business plan into an appropriate facility response

2. Systematic Planning Of Industrial Planning: Systematic Planning of Industrial Facilities (SPIF): SPIF is a total approach of inter-related planning systems, ideal for new construction or major expansions. Documented in a twovolume text, SPIF provides o Procedures, checklists, and decision-aids for many common issues in new construction projects. o On major projects, SPIF is the master method, assuring integrated plans for each component of the facility the layout, material handling, communications, utilities, and the structure or building itself. S P I F Planning Model INVESTIGATE inputs and influences and clarify parameters INTERACT major elements and establish conceptual plan for the lead component INTEGRATE conceptual plan of lead component into plans for each component and develop preliminary plans MODIFY preliminary plans into specific alternative plans EVALUATE alternatives and select a plan SPIF basically target all the issue related to Setting up a new facility or expansion of the existing one it utilize following planning Pattern and few of the tools used are as follows: Systematic Planning of Manufacturing Cells (SPMC) SPMC is the world's most practical and comprehensive method for planning manufacturing cells and production lines. SPMC generates physical plans and operating procedures for single-piece or small-batch flow. SPMC also addresses motivation, training, job design, and performance measurement Systematic Handling Analysis (SHA) SHA is a companion to the well-recognized SLP and the basis for commercial software used in factory and warehouse flow studies. SHA guides equipment selection and move planning, and ensures a cost-effective material handling system. SHA includes Mag Count (and Macromag) -- a way to measure the "transportability" of materials, before knowing the method of moving them. Systematic Container Planning (SCP) A companion method to SHA, SCP guides the specification and selection of industrial containers. When the logistics plan calls for returnable containers, SCP assures an effective total system. SCP applies to all levels of container movement -- within workcells, between

cells and supermarkets within a plant, or between the plant and its external suppliers and customers Systematic Layout Planning (SLP): SLP is the world's most practical and organized method for rearranging existing or laying out new facilities. It is adaptable to factories, warehouses, offices, labs, hospitals. SLP is also available on video. SLP is the procedural basis for most commercial software used by space and layout planners.

LEANplan: LEANplan uses value stream mapping to plan for lean operations -- plant wide or across the supply chain. When used with the other Muther methods, LEANplan is the master method. SLP, SPMC, SHA, and others follow as needed to enable and support the lean operating plan. Systematic Network Planning (SNP): SNP helps to plan and manage the modeling of logistical networks. It presumes the use of mathematical optimization and software modeling tools. SNP provides standard phases, tasks and key documents for conducting network planning projects of any kind or scale. 3. Material handling Principle: A) PLANNING PRINCIPLE: All material handling should be the result of a deliberate plan where the needs, performance objectives and functional specification of the proposed methods are completely defined at the outset. B) STANDARDIZATION PRINCIPLE: Material handling methods, equipment, controls and software should be standardized within the limits of achieving overall performance objectives and without sacrificing needed flexibility, modularity and throughput. C) WORK PRINCIPLE: Material handling work should be minimized without sacrificing productivity or the level of service required of the operation. D) ERGONOMIC PRINCIPLE: Human capabilities and limitations must be recognized and respected in the design of material handling tasks and equipment to ensure safe and effective operations. E) UNIT LOAD PRINCIPLE: Unit loads shall be appropriately sized and configured in a way which achieves the material flow and inventory objectives at each stage in the supply chain. Definition: A unit load is one that can be stored or moved as a single entity at one time, such as a pallet,container or tote, regardless of the number of individual items that make up the load. F) SPACE UTILIZATION PRINCIPLE:Effective and efficient use must be made of all available space. Definition: Space in material handling is three dimensional and therefore is counted as cubic space G) SYSTEM PRINCIPLE: Material movement and storage activities should be fully integrated to form a coordinated, operational system which spans receiving, inspection, storage, production, assembly, packaging, unitizing, order selection, shipping, transportation and the handling of returns H) AUTOMATION PRINCIPLE: Material handling operations should be mechanized and/or automated where feasible to improve operational efficiency, increase responsiveness,and improve consistency and predictability, decrease operating costs and to eliminate repetitive or potentially unsafe manual labor.

I) ENVIRONMENTAL PRINCIPLE: Environmental impact and energy consumption should be considered as criteria when designing or selecting alternative equipment and material handling systems. J) LIFE CYCLE COST PRINCIPLE: A thorough economic analysis should account for the entire life cycle of all material handling equipment and resulting systems. Definition: Life cycle costs include all cash flows that will occur between the time the first dollar is spent to plan or procure a new piece of equipment, or to put in place a new method, until that method and/or equipment is totally replaced.

4. Warehouse Activity profiles and their applications Warehouse activity profiles give an idea as to the characteristics which are important to take an decision regarding any issues related to performance and capacity utilization of warehouse of a firm and it enables us to predict corrective actions in case of any problems at warehouse level or at storage level. A comprehensive profile based on historical and current data reveals characteristics that allow you to make decisions on storage and handling alternatives, slotting options, pick line requirements, system requirements, pick methods, and order releasing strategies . With more detailed analysis you can even predict how your warehouse will operate, providing you the invaluable opportunity of being able to prepare for the future.
Two main categories of profiles make up a basic warehouse profiling set: customer order profiles and item activity profiles. Customer order profiles represent the outbound activity, i.e., how the customers are ordering the products. Item activity profiles provide insight into viable storing and slotting options for each item within the warehouse. Customer Order profile:

A) Order Mix Distribution: These distributions answer warehouse zoning questions such as
Should my fast, medium, and slow movers be zoned separately in the warehouse?The goal is to determine what percentage of your customers is ordering full and broken carton quantities of the same item, before investing time and money in changing the current storage strategy. B) Order Increment Distribution: The order line distribution of the percent of a full carton ordered is beneficial when evaluating if the current packaging is in logical increments for the customer C) Order Lines Distribution:This distribution of the number of lines contained on each order is important when evaluating operating strategies.

Item Activity Profile: There are several types of item profiles, the three most basic are defined next. A) Popularity profile- is a ranking of the items based on how often they are ordered or picked (frequency). B) Volume profile is a ranking of the items based on how much is ordered (cube movement). C) The item order completion profile displays the items ranked from most to least popular against the order set. This profile reveals the percentage of the orders that will be completed by a subset of the items and is valuable when conducting cost benefit analysis for improved productivity. The chart in following figure shows that 30% of the items complete 90% of all orders. This information is useful because it allows operations to make improvements, such as automation of a smaller area, yet still benefit 90% of all orders.

5. Types of facility Location Problems: Location Problems: involves determining the location of one or more new facilities in one or more of several potential sites. The cost of locating each new facility at each potential site is assumed to be known. It is fixed cost of locating a new facility at a particular site plus the operating and transportation cost of servicing customers from this facilitysite combination. Allocation problems: assume that the number and location of facilities are known a priori and attempt to determine how each customer is to be served. In other words, given the demand for goods at each customer center, the production or supply capacities at each facility, and the cost of serving each customer from each facility, the allocation problem determines how much each facility is to supply each customer center. A) Single Facility Location Problem i. Minisum location problem(total covering prob to locate bank with constraints <=2km, travelling expense and fund) ii. Minimax location problem (Fire station location) iii. Partial covering problem B) Multiple Facility Location Problem i. Interaction between new facilities, location of existing facilities fixed ii. No interaction between new facilities, location of existing facilities fixed ( Linear Assignment Problem). Identical, independent iii. Interaction between new facilities, location of existing facilities not fixed ( Quadratic assignment Problem) iv. Try to locate potential sites, number of sites more than number of locations 6. Compare the following a. Drive-in-rack and Drive through rack b. Push back and Mobile Rack c. Single Deep rack and Double Deep rack d. Pallet truck and platform truck e. Reach truck and Turret truck f. Walki stacker and Straddle truck