Spring 2016

MENG4448: Facilities Planning

Mechanical Engineering Department, AUC

A. A. Elimam

Name & ID:

80 minutes
Please write your answers neatly on this sheet. Make sure to have all what you need. You
are NOT allowed to borrow any item. ABSOLUTELY NO QUESTIONS after the first 10
minutes. Good Luck
1. a. Part Z requires machining Operation
on the same lathe type with
A
operation B following operation
B
A as shown next.

Standard
Efficiency, E
Reliability, R
Scrap
Time, min
4
92%
95 %
3%
6
85%
90 %
2%
Find the number of lathes required to produce 4000 part Z per week. Assume that the company will be
operating 5 days per week, 8 hours per day.
Operation Required Scrap Required Available Standard
E
R
# of MCs
Output
%
Input
Time
Time,
B
4000
2%
4081.633
2400
6
85% 90%
13.33867
A
4081.6327
3%
4207.869
2400
4
92% 95%
8.024158

b. What is the impact of doubling the work schedule to two shifts on the number of machines?
What is the new number of milling machines?
Operation Required Scrap Required Available
Output
%
Input
Time
B
4000
2%
4081.633
4800
A
4081.6327
3%
4207.869
4800

Standard
Time,
6
4

85%
92%

90%
95%

# of MCs
6.669334
4.012079

c. Part A is produced in machine (MC1) followed by (MC2). Part B is produced in (MC3). Parts A
and B are assembled in workstation 4 to create part C, which is painted in workstation 5. It is
required to deliver 4000 painted C parts. Given the following scrap percentages, determine the
number of units in each stage.
Stage
MC 1
MC 2
MC 3
Assembly
Painting
% scrap
0.05
0.01
0.02
0.03
0.03
Input Quantity
4520.20
4294.2
4338.01
4251.248
4123.71
Output Quantity
4294.19
4251.2
4251.25
4123.711
4000

2. a. A Musical instrument company produces a Piano with the following demand and inventory costs:
Annual Demand
= 5000 units
Setup Cost
= $ 400 per order
Holding Cost = 2 % of price per piano
Piano value
= $ 20000
Determine the Economic lot size and the corresponding total cost. What is the impact of the lot size on the
layout? [7 points]

EOQ
100
Total Cost
40000
The larger lot size would require extensive space in the layout, to accommodate the WIP as
well the finished piano inventory
b. A foundry has received an order for 15 custom designed castings. The casting process costs $
600 per unit. The additional cost of finishing (turning and grinding) the acceptable castings is $100
per unit. Only acceptable castings are finished. Parts not sold, good or bad can be recycled at a
value of $75. The customer pays $ 1200 per acceptable unit. The customer will accept the batch
1

as long as the number of acceptable quality castings is at least 10 units. If fewer than 10
acceptable castings are produced, none are purchased by the customer. However, a penalty
clause in the contract results in the foundry having to pay the customer $ 150 per unit short (below
the 15 castings). The probability distributions for the number of good castings produced in a lot of
varying sizes are given below:
Lot Size: Number of Castings Scheduled
# Good
Castings
15
16
17
18
10
0
0
0
0.05
11
0
0
0.05
0.05
12
0
0.15
0.05
0.05
13
0.2
0.15
0.05
0.05
14
0.25
0.2
0.15
0.05
15
0.3
0.25
0.2
0.15
>15
0
0.3
0.55
0.75
Sum
1
1
1
1
i. State the cost, revenue and profit functions for this foundry [14 points]
Cost: XQ for all functions
C(Q,X) = 600 Q
if
X<10
C(Q,X) = 600 Q + 100 X + 150 (15-X) if
10 X15
C(Q,X) = 600 Q + 100 (15)
if
X >15
Revenue:
R(Q,X) = 75 Q
if
X<10
R(Q,X) = 1200 X + 75 (Q-X)
if
10 X15
R(Q,X) = 1200 (15) + 75 (Q-15)
if
X >15
Profit:
P(Q,X) = -525 Q
if
X<10
P(Q,X) = 1175 X 525 Q - 2250
if
10 X15
P(Q,X) = 15375 525 Q
if
X >15
ii. Determine the expected profit for a lot size = 17 castings [5 points]
Revenue, Profit,
Cost, $
$
$
11950
12525
575
11900
13650
1750
11850
14775
2925
11800
15900
4100
11750
17025
5275
11700
18150
6450
11700
18150
6450
Expected Profit at Q
=17
5980
3 a. When and why do we use group technology to form manufacturing cells? [5 points]
Group technology is used when the varieties and amounts of similar design products are at
medium levels. It is used to form products families processed by cells of machines in order
to streamline operations including elimination of jumbled flow, improve space, machine and
labor utilization as well enhancing overall productivity.

b. Use the Rank Order Clustering (binary) Method to form cells for the machine-part matrix shown
below. If conflicts exist propose alternative approaches for resolving the conflict (show all your
work). [10 points]
Parts

Machines
B C D
1 1
1 1
1 1
1
1
8 4 2 1

DE

A
1
2
3
4
BW

6
12
3
9

Parts
2
4
1
3
DE

Machines
B
C
D
1
1
1
1
1
1
12 10 3
5

BW

A
1
1

Parts

8
4
2
1

2
4
1
3
BW

A
1
1

Machines
B
D
C
1
1
1
1
1
1
4
2
1

DE
12
10
5
3

As shown by the yellow colors, we form two manufacturing cells:

Cell I: Machines A and B to process parts 2 and 4
Cell II: Machines D and C to process parts 1 and 3.
Two bottlenecks still exist for machine B to process part 1 & machine D to process part 4.
Two alternatives are proposed to deal with these bottlenecks:
Either schedule overtime/extra shift for machines B & D to process parts 1 & 4,
respectively
Or acquire one extra unit of machines B and D
The selection of one of these alternatives would rely on analyzing and comparing their
costs and benefits.
4. Two products are
manufactured in the next
AE stations:
five work
Product X route:
A -DB C D E
Product Y route:
A- B A C E

80
15

40

25

B C

30

50

a.

The plant produces 250 and 300 units of

products X and Y, respectively. The weight of product
X is twice that of product Y. Construct a From-to
Load matrix for X & Y. (Assume that products weights
do not vary considerably from one department to
another). Use the adjacent matrix. [8 points]
b.

A
A
B
C
D
E

300

800

300
500

500

300
500

Construct a From-to-distance matrix for all departments, using the dashed routes.[8 points]
A
A
B
C
D
E

c.

25

B
70

C
120
50

D
170
100
50

E
265
195
145
95

Calculate the total distance traveled for each product.[4 points]

Product X = 70+50+50+95 = 265
Product Y = 70+70+120+145 = 405

5. Suppose you need to decide on the number of machines to be assigned to one operator. It
takes one minute to travel between machines, 1 minute to load or unload a machine, 5 minutes of
automatic machine time and 1 minute to inspect and pack a finished part. The operator hour costs
$40/hour whereas the machine hour costs $ 25. Assume that all machines start empty. Let
a = concurrent activity loading time
Io = idle operator time during Tc
b = independent operator activity time

Im = idle M/C time during Tc

t = independent M/C activity time

Co = cost per operator-hour

n = ideal # of identical M/Cs

Cm = cost per M/C-hour

m = # of identical M/Cs assigned to

operator
Tc = repeating cycle time

TC (m) = cost/unit produced on m M/Cs

assigned to operator
If m n TC (m) = (Co +m Cm) (a + t)/m
if m > n TC (m) = (Co +m Cm) (a + b)

a. If you assign two machines per operator. Please determine

i. The Transient and steady state cycle time [6 points]
Each M/C cycle time = a + t = 2 + 5 = 7 min
Operator time for each M/C= a + b= 2 + 2 = 4 min and therefore Operator time for the
two machines = 2(4) = 8 min
TC = 8 min and Transient Time = 13 min (based on developing the chart)
ii.

The corresponding M/C and operator idle times [4 points]

n = (a + t)/ (a + b) = 7/4=1.75
Im = Tc (a + t) = 8-7=1
Io = 0
since m= 2 > n = 1.75

iii.

The production rate in number of units per minute [4 points]

Production rate = (1/8) x 2 M/Cs =.25 units / minute

iv.

The corresponding cost per unit, TC(m) [ 5 points]

Since m>n then TC (m) = (Co +m Cm) (a + b) = (40 + 2 (25))(4/60) = $6 /unit

b. Would the cost/unit decrease if three machines are assigned to one operator? Please show
your calculations [6 points]
Operator time for each M/C= a + b= 2 + 2 = 4 and therefore Operator time for the three
machines = 3(4) = 12 min
TC = 12 and Since m>n then TC (m) = (Co +m Cm) (a + b) = (40 + 3 (25))(4/60) =
$7.33 /unit and the cost per unit will go up since the M/C idle time will go up.