Product and

Equipment Analysis
Data required for developing good
layouts
• Product Analysis
• Process Analysis
Input Data and Activities
• What data are critical to the facility plan?
• Muther categorizes the information as:

P – Product (what?)
Q – Quantity (how much?)
R – Routing (where?)
S – Support (with what?)
T – Timing (when?)
Product Analysis
• Bill of Materials
• Assembly Charts
• Engineering Drawing
• Operation Process Chart
• Route Sheet
Input Data and Activities
• Tompkins, White, et. al., categorize it as:
Product Design – what is to be produced?
Process Design – how is it to be produced?
Schedule Design – when and how much?

Product

Facility

Process Schedule
Product Design
• Based on
• Function
• Aesthetics Driven by market
• Costs demand
• Materials
• Manufacturing Methods
• Key point
• The product design MUST be finalized before designing the
facility. Otherwise a flexible facility is needed.
Tools Used in Product Design
• Product/Part Drawings
• 2-D, 3-D visualization

• Exploded Assembly Diagrams : digunakan untuk

mempelajari dan mengilustrasikan urutan di mana
sistem dibangun
Part drawing
Tools Used in Process Design
A partial list (dependent on product and service):
• Process Flowcharts and Process Maps
• Make vs. Buy
• Parts Lists
• Bill of Materials
• Route Sheets
• Assembly Charts
• Operations Process Charts
• Precedence Diagrams
 Process Flowcharts UPS

Active Parcel
Receiving Picking Packing Shipping
Bins Post

Reserve Mono- Next-

Storage gramming Day
UPS

Embroid-
Quality
ering
Assurance
Back to
Vendor

Hemming

Gift
Boxing
Process Maps
Customer Waiter Salad Chef Dinner Chef

N
Place order Is order
complete?

Y
Give soup or salad order to chef Prepare soup or
salad order

Give dinner order to chef Prepare dinner

order

Drink Get drinks for customer

Eat salad or Give order

soup Deliver salad or soup order to customer
to waiter

Deliver dinner to customer Give order

Eat dinner to waiter

Receives check Deliver check to customer

Gives payment
to waiter Receive payment for meal

Cash or Credit
Credit?

Cash
Collect change,
leave tip Bring change to customer

Run credit card through

Fill in tip
amount Return credit slip to customer

Collect tip
Make vs. Buy? BUY

No

Yes Can we Is it cheaper

Can item be Yes Yes Is the capital
make the for us to
purchased? available?
item? make?

No No No Yes

MAKE BUY BUY MAKE

 Parts List
• A listing of component parts.
PARTS LIST
Company: TW Inc. Prepared By: JSU
Product: Air Flow Regulator Date: 6/30/2003

Part No. Name Drwg. No. Qty/unit Material Size Make/Buy

1050 Pipe plug 4006 1 Steel 0.5" x 1.00" Buy
2200 Body 1003 1 Aluminum 2.75" x 2.5" x 1.5" Make
3250 Seat Ring 1005 1 Stainless Steel 2.97" x 0.87" Make
3251 O-Ring - 1 Rubber 0.75" diam. Buy
3252 Plunger 1007 1 Brass 0.812" x 0.715" Make
3253 Spring - 1 Steel 1.4" x 0.225" Buy
3254 Plunger Housing 1009 1 Aluminum 1.6" x 0.225" Make
3255 O-Ring - 1 Rubber 0.925" diam. Buy
4150 Plunger Retainer 1011 1 Aluminum 0.42" x 1.2" Make
4250 Lock Nut 4007 1 Aluminum 0.21" x 1.00" Buy
 Bill of Materials
• Many different types of “structured parts lists”

BILL OF MATERIALS
Company: TW Inc. Prepared By: JSU
Product: Air Flow Regulator Date: 6/30/2003

Level Part No. Name Drwg. No. Qty/unit Make/Buy

0 0021 Air Flow Regulator 0999 1 Make
1 1050 Pipe plug 4006 1 Buy
1 6023 Main assembly - 1 Make
2 4250 Lock Nut 4007 1 Buy
2 6022 Body Assembly - 1 Make
3 2200 Body 1003 1 Make
3 6021 Plunger Assembly - 1 Make
4 3250 Seat ring 1005 1 Make
4 3251 O-Ring - 1 Buy
4 3252 Plunger 1007 1 Make
4 3253 Spring - 1 Buy
4 3254 Plunger Housing 1009 1 Make
4 3255 O-ring - 1 Buy
4 4150 Plunger retainer 1011 1 Make
Bill of Materials
12 Computer Device
11 Keyboard Assembly (Purcha sed)
10 Color Video Display Device
8 Video Panel (Purch ased)
7 Circuit Board
9 Main CPU Unit
6 Power Supply Kit (Purc hased)
5 PC Board Assembly
3 Main PC Board (Purch ased)
4 Disk Drive Unit
2 Floppy Drive
1 Hard Drive
 Route Sheet
Company: ARC Inc. Part: Plunger Housing Prepared by: JSU
Produce: Air Flow Regulator Part No. 3254 Part No. 6/6/03

Oper Operation Machine Tooling Setu Oper. Mtls.

. No. Description Type p Time Parts
(hr.) (hr.)
0104 Shape, drill, Auto sc. .5 in dia coller, 5 0.0057 Alum
cut off Machine cir. Form tool, 1”x12’
.45” diam center
drill
0204 Machine Slot Chucker 0.045” slot saw, 2.25 0.0067
and thread turret slot
0304 Drill 8 holes Auto dr. 0.078” diam 1.25 0.0038
unit twist drill
0404 Debur and Drill press Deburring tool 0.5 0.0031
Blow out with pilot
SA 1 Enclose Dennison None 0.25 0.0100
subassembly hydraulic
press
Routing sheet MASTER
MASTER ROUTING
ROUTING LIST
LIST
--PART
--PART NUMBER--
NUMBER-- ---------DE
---------DESCRIPT
SCRIPTION----
ION----------
------ DATE
DATE ALT
ALT CODE
CODE BUYER/PLANNER
BUYER/PLANNER
DRAWING
DRAWING REVISION
REVISION
H6709
H6709 HANDLE,DENSPLY
HANDLE,DENSPLY PROBE
PROBE 6/25/92
6/25/92 B
B 239
239
G
G
--------STAND
--------STANDARD--------
ARD--------
TIME
TIME MOVE
MOVE
OPER
OPER WORK
WORK OPER
OPER SETUP
SETUP CREW
CREW MACH
MACH --TOOLING
--TOOLING REF--
REF-- --SETUP-
--SETUP- -LABOR-
-LABOR- -MACHINE--
-MACHINE-- I/O
I/O
BASIS
BASIS TIME
TIME -----EFFECT
-----EFFECTIVE----
IVE----
&
& ALT
ALT CENTER
CENTER CODE
CODE CODE
CODE FACTOR
FACTOR GROUP
GROUP NUMBER
NUMBER HOURS
HOURS HOURS
HOURS HOURS
HOURS
CDE/-QTY-
CDE/-QTY- -DAYS-
-DAYS- FROM
FROM TO
TO
10
10 01226
01226 1.0
1.0 01226
01226 T9330
T9330 12.000
12.000 336.880
336.880 336.880
336.880 4
4
1000
1000 .000
.000 0/00/00
0/00/00 99/99/99
99/99/99
PARTIAL
PARTIAL AHEAD
AHEAD QTY
QTY
---------
----------ROUTING
-ROUTING DESCRIPTION
DESCRIPTIONS----------
S----------
MAKE
MAKE @ @ AUTO
AUTO 804843P
804843P
C
C 804843P
804843P B B
A
A A02247
A02247 A A
15
15 02053
02053 1.0
1.0 02053
02053 T9712
T9712 1.500
1.500 41.670
41.670 83.330
83.330 4
4
1000
1000 .000
.000 0/00/00
0/00/00 99/99/99
99/99/99
PARTIAL
PARTIAL AHEAD
AHEAD QTY
QTY
---------
----------ROUTING
-ROUTING DESCRIPTION
DESCRIPTIONS----------
S----------
DRILL
DRILL & & TAP
TAP 804843P1
804843P1
B
B 804843P1
804843P1 A A
20
20 02053
02053 1.0
1.0 02053
02053 T9713
T9713 1.500
1.500 8.330
8.330 16.670
16.670 4
4
1000
1000 .000
.000 0/00/00
0/00/00 99/99/99
99/99/99
PARTIAL
PARTIAL AHEAD
AHEAD QTY
QTY
---------
----------ROUTING
-ROUTING DESCRIPTION
DESCRIPTIONS----------
S----------
KNURL
KNURL ODOD
30
30 03029
03029 1.0
1.0 .000
.000 33.330
33.330 33.330
33.330 4
4
1000
1000 .000
.000 0/00/00
0/00/00 99/99/99
99/99/99
PARTIAL
PARTIAL AHEAD
AHEAD QTY
QTY
---------
----------ROUTING
-ROUTING DESCRIPTION
DESCRIPTIONS----------
S----------
SCOTCHBRI
SCOTCHBRITE/BELT
TE/BELT
40
40 03105
03105 1.0
1.0 03105
03105 .000
.000 3.000
3.000 3.000
3.000 4
4
1000
1000 .000
.000 0/00/00
0/00/00 99/99/99
99/99/99
PARTIAL
PARTIAL AHEAD
AHEAD QTY
QTY
---------
----------ROUTING
-ROUTING DESCRIPTION
DESCRIPTIONS----------
S----------
PASSIVATE
PASSIVATE
50
50 03005
03005 1.0
1.0 .000
.000 54.170
54.170 54.170
54.170 4
4
1000
1000 .000
.000 0/00/00
0/00/00 99/99/99
99/99/99
PARTIAL
PARTIAL AHEAD
AHEAD QTY
QTY
---------
----------ROUTING
-ROUTING DESCRIPTION
DESCRIPTIONS----------
S----------
BUFF
BUFF
60
60 03007
03007 1.0
1.0 03007
03007 .000
.000 50.000
50.000 50.000
50.000 4
4
1000
1000 .000
.000 0/00/00
0/00/00 99/99/99
99/99/99
PARTIAL
PARTIAL AHEAD
AHEAD QTY
QTY
---------
----------ROUTING
-ROUTING DESCRIPTION
DESCRIPTIONS----------
S----------
GLASSBEAD
GLASSBEAD KNURL/
KNURL/ SHIP
SHIP
 2200

Assembly Chart
3254

Analog model of the assembly

3253
process.
3252

• Circles denote components

3251 SA-1 A-1

• Links denote
3250
operations/subassemblies
3255
• Squares represent inspections A-2

operation 4150

• Begin with the original product 4250

A-3

and to trace the product 1050 I-1

disassembly back to its basic Pack A-4

components.
Assembly Charts
1

３ ５ ９

７
1０
８ 1２
1１
Operation process chart for 3.5 volt
halogen otoscope
TC W S B P LHS T FB LH OL LN LR PS L

Dr
Th
Mi Dr Mi

Th LA

Tu

Pl LHA A1

LPA
A2

BA A3

HO
Found by superimposing
the route sheets and the
assembly chart, a chart
results that gives an
overview of the flow within
the facility.

Operations Process Chart

 Volume Variety Charts
Product Units/year Percent
C 14000 47% 16000 120%
F 6000 67% 14000
100%
G 3250 78% 12000
J 3000 88% 10000
80%

Units/yr

Percent
K 1120 92% 8000 60%
A 1000 95% 6000
40%
E 650 98% 4000
D 450 99% 2000
20%

B 100 99% 0 0%
H 100 100% C F G J K A E D B H I

I 81 100% Products
 Volume Variety Chart
Product Units/year Percent
P 800 13%
F 766 26%
900 120%
C 600 36%
800
J 542 45% 100%
G 513 53% 700

O 498 62% 600 80%

Units/Yr
K 475 69%

Percent
500
60%
A 423 76% 400
Q 418 83% 300 40%
E 322 89% 200
D 234 93% 100
20%

B 100 94%
0 0%
H 100 96% P F C J G O K A Q E D B H N I L M
N 100 98% Products
I 81 99%
L 52 100%
M 16 100%
Production Requirements –
Yield Loss
Pi – Production input to operation i
Pi i Oi
si – Fraction of Pi lost (scrap)

Pisi Oi – output of process i

Oi  Pi  Pi si Oi
Pi 
Oi  Pi (1  si ) (1  si )
Production Requirements –
Series Systems
P1 1 2 ... n On

P1s1 P2s2 Pnsn

On
P1 
(1  s1 )(1  s2 ) (1  sn )
Example
• 5 processes in series
• Need 2000 units out
Process Loss Out In
5 3% 2000 2062
4 2% 2062 2104
3 1% 2104 2125
2 2% 2125 2169
1 1% 2169 2190
2000
P1   2190
(1  .01)(1  .02)(1  .01)(1  .02)(1  .03)
Production Requirements – Non Series
Part A Part B

Work backward from s1=1% 1 M1

end of the line.
s3=2% 3 M2
s2=2% 2 M2
O5 100,000
P5    104,167  O4
1  s5 .96
s4=1% 4 M3
O4 104,167
P4    105,219  O3  O2
1  s4 .99
O3 105,219 s5=4% 5 M4
P3    107,366
1  s3 .98
O2 105,219
P2    107,366  O1
1  s2 .98 100,000 units
O1 107,366
P1    108,451
1  s1 .99
Simple equipment selection model

•P desired production rate (units/day)

•t time to process one unit part (in  tP 
hours) NM   
 
•  available time (hours/day)
•  efficiency of machine
• NM Number machine
Simple equipment selection model

• Nol Number of good

units at output of stage  N ol 
Nil   
l 1  Sl 
• Nil Number of units
required at input of
stage l
• Sl Scrap at stage l
Simple example
1. Consider a simple jobshop manufacturing system that makes three
major “Class A” products requiring five types of machines. The three
products include seven parts shown in Table 2.1. Table 2.1 also
shows the time standards in units per hour.
2. Assume we an hour has only 55 minutes of productive time and that
5 minutes are lost due to operator or machine unavailability and
machine downtime.
3. Dividing the value 55 by the values in Table 2.1, we get the as well as
time per unit.
4. Determine the quantities of machines of each type required to make
the standard time per unit.
5. Assuming 12000 “representative” parts are to be made and that
only 440 minutes of productive time is available per shift, we can
find that we need 4.9 units of machine A, 5.85 units of machine B,
and 4.3 units of machine C.
6. Rounding up these numbers gives us 5, 6, and 5 units of machine
types A, B, and C, respectively.
Table 2.1
Part 1 2 3 4 5 6 7
Machine
A 2000 - 1200 1500 - 2300 1200
B 1200 1800 1200 - 1600 2000 1000
C - - 1200 2000 1200 - 1400
 Table 2.2
Part 1 2 3 4 5 6 7 Total Time
Machine
A 0.0275 - 0.0459 0.0367 - 0.0239 0.0459 0.1799
B 0.0459 0.3056 0.0459 - 0.0344 0.0275 0.0550 0.2143
C - - 0.0459 0.0275 0.0459 - 0.0393 0.1586
Calculating Equipment Requirements
How many pieces of equipment do we need?
Pi Production rate for operation i (pcs/period)
Ti Time per piece for operation i (time/pc)
Ci Time available to run operation i (time/period)
Ei Efficiency of machine while running
Ri Reliability of machine
Mj Number of type j machines required
xj Set of operations run on machine j
 pc  time 
  
Mj  
PiTi
  period  pc 
iX j Ci Ei Ri  time 
 
 period 
 Example
• Consider Machine 2
• x2={2,3}
Oper (i) Pi (pcs/yr) Ti (hr/pc) PiTi (hrs/yr) Ci (hrs/yr) Ei Ri CiEiRi (hrs/yr) No. Mach.
2 107,366 0.043 4616.7 2000 0.98 0.99 1940.4 2.38
3 107,366 0.022 2362.1 2000 0.90 0.99 1782.0 1.33
M2= 3.70

• Do similar calculation for other machines

• Other factors to consider
• Number of shifts
• Setup times
• Customer lot sizes (smaller require more setups)
• Layout type
• Maintenance activities
Operator-Machine Charts
ONE MACHINE
• Tool for showing activity of Time Operator M1
both operator and machine 0.5 U1 UNLOAD
1 U1 UNLOAD
along a time line 1.5 L1 LOAD
2 L1 LOAD
• Also called “multiple activity 2.5 I&P RUN
3 RUN
chart” 3.5 RUN
4 RUN
Example: 4.5 RUN
5 RUN
1 minute to load 5.5 IDLE RUN
6 RUN
1 minute to unload 6.5 RUN
7 RUN
6 minute run cycle 7.5 RUN
8 RUN
0.5 minute to inspect and pack
Cycle Time 8 min
0.5 minute to travel to another Oper Idle 5.5 min
machine Mach. Idle 0 min
Prod. Rate 0.125 pc/min
Operator Machine Charts
TWO MACHINES THREE MACHINES
Time Operator M1 M2 Time Operator M1 M2 M2
0.5 U1 UNLOAD RUN 0.5 U1 UNLOAD RUN RUN
1 U1 UNLOAD RUN 1 U1 UNLOAD RUN RUN
1.5 L1 LOAD RUN 1.5 L1 LOAD RUN RUN
2 L1 LOAD RUN 2 L1 LOAD RUN RUN
2.5 I&P RUN RUN 2.5 I&P 1 RUN IDLE RUN
3 T-2 RUN RUN 3 T-2 RUN IDLE RUN
3.5 U2 RUN UNLOAD 3.5 U2 RUN UNLOAD RUN
4 U2 RUN UNLOAD 4 U2 RUN UNLOAD RUN
4.5 L2 RUN LOAD 4.5 L2 RUN LOAD RUN
5 L2 RUN LOAD 5 L2 RUN LOAD RUN
5.5 I&P RUN RUN 5.5 I&P 2 RUN RUN IDLE
6 T-1 RUN RUN 6 T-3 RUN RUN IDLE
6.5 RUN RUN 6.5 U3 RUN RUN UNLOAD
7 RUN RUN 7 U3 RUN RUN UNLOAD
7.5 IDLE RUN RUN 7.5 L3 RUN RUN LOAD
8 RUN RUN 8 L3 RUN RUN LOAD
8.5 I&P 3 IDLE RUN RUN
Cycle Time 8 min 9 T-3 IDLE RUN RUN
Oper. Idle 2 min
Mach Idle 0 min Cycle Time 9 min
Prod Rate 0.25 pc/min Oper. Idle 0 min
Mach Idle 1 min
Prod Rate 0.333333 pc/min
Parameters for an LP equipment
selection model
• Oi Operation type i, i=1,2,...,o
• Mi Production equipment type i, i=1,2,...,m
• Pi Part type i, i=1,2,...,p
• MHi Material handling system type i, i=1,2,...,n
• cij cost of performing operation Oi on production equipment type Mj
• hij cost of handling part type Pi using material handling system type MHj
• tij time required to perform operation Oi on production equipment type
Mj
• sij time required to transport part type Pi using material handling carrier
type MHj
• τj time available on production equipment type Mj
• σj time available on material handling carrier type MHj
• NOi number of operations Oi to be performed
• NPi number of units of part type Pi to be manufactured
• Cj cost of production equipment type Mj
• Hj cost of material handling system MHj
• B total budget available
Decision Variables for LP equipment
selection model
• xij number of operations Oi to be performed on
production equipment type Mj
• yij number of units of part type Pi to be
transported on material handling system type
MHj
• NMj number of units of production equipment
type Mj selected
• NMHj number of units of material handling
system type MHj selected
 LP equipment selection model
o m p n m n
• Min  c x  h y  C NM   H NMH
i 1 j 1
ij ij
i 1 j 1
ij ij
j 1
i i
i 1
i i

m
• Subject to x
j 1
ij  NOi i =1,2,...,o
o

t x
i 1
ij ij   j NM j j =1,2,...,m

y j 1
ij  NPi i =1,2,...,p

s
i 1
ij yij   j NMH j j =1,2,...,m
LP equipment selection model (cont)

m n

 C NM   H NMH
i 1
i i
i 1
i i B

xij  0 and integer i  1, 2,..., o; j  1, 2,..., m

yij  0 and integer i  1, 2,..., o; j  1, 2,..., m

NMH j  0 and integer j  1, 2,..., m
NM j  0 and integer j  1, 2,..., m
Example
An automobile engine cylinder manufacturing company
that supplies high precision engines to a multinational
car manufacturer plans to manufacture several models of
cylinder.
For planning purposes, it uses the following pseudo
products - a standard engine cylinder, a high-technology
model, an engine cylinder for sports cars and a luxury car
cylinder.
The marketing department has demand forecast figures
which have been aggregated for the four pseudo models.
It has been determined that 2000, 1500, 1800 and 1000
units of the basic, high-tech, sports and luxury models
will be demanded during the next six months.
Example
The models require one or more of three operations, referred to as
O1, O2, and O3.
Three machine types and two material handling systems available
for performing the three operations and transporting the models.
These are denoted as M1, M2, M3 and MH1, MH2, respectively.
Each machine and handling system may be assumed to be available
for 90 percent of the time.
The cost of machines M1, M2, and M3 are $230,000; $250,000;
$310,000
The cost of material handling carriers MH1, MH2 are $90,000 and
$130,000
The available budget is $10,000,000.
The following two matrices show the cij's and hij's - that is, the cost
of performing operation Oi on production equipment type Mj and
cost of handling part type Pi using material handling system type
MHj, respectively.
Data for example

6 12 8 10 5
[cij]= 4 20 4 [hij]= 12 6
12 10 5 18 9
6 3
LP Model for example
• MIN 90000 NMH1 + 130000 NMH2 + 230000 NM1 + 250000 NM2
• + 310000 NM3 + 6 X11 + 12 X12 + 8 X13 + 4 X21 + 5 X22
• + 4 X23 + 12 X31 + 5 X32 + 5 X33 + 10 Y11 + 5 Y12 + 12 Y21
• + 6 Y22 + 18 Y31 + 9 Y32 + 6 Y41 + 3 Y42
• SUBJECT TO
• C1) X11 + X12 + X13 >= 200
• C2) X21 + X22 + X23 >= 200
• C3) X31 + X32 + X33 >= 150
• C4) - 300 NM1 + 1.67 X11 + 2.5 X21 + 0.83 X31 <= 0
• C5) - 300 NM2 + 0.833 X12 + 2 X22 + 2 X32 <= 0
• C6) - 300 NM3 + 1.25 X13 + 2.5 X23 + 2 X33 <= 0
• C7) Y11 + Y12 >= 2000
• C8) Y21 + Y22 >= 1500
• C9) Y31 + Y32 >= 1800
• C10) Y41 + Y42 >= 1000
• C11) - 300 NMH1 + 0.1 Y11 + 0.0833 Y21 + 0.056 Y31 + 0.167 Y41 <= 0
• C12) - 300 NMH2 + 0.2 Y12 + 0.167 Y22 + 0.11 Y32 + 0.33 Y42 <= 0
• C13) 90000 NMH1 + 130000 NMH2 + 230000 NM1 + 250000 NM2
• + 310000 NM3 <= 1000000
• END
• GIN 5
LP Model Solution
• VARIABLE VALUE REDUCED COST
• NMH1 2.000000 90000.000000
• NMH2 .000000 105454.546875
• NM1 2.000000 228562.875000
• NM2 1.000000 248353.593750
• NM3 .000000 308353.593750
• X11 200.000000 .000000
• X12 .000000 2.571524
• X13 .000000 .860030
• X21 59.880245 .000000
• X22 140.119751 .000000
• X23 .000000 1.744012
• X31 140.119751 .000000
• X32 9.880246 .000000
• X33 .000000 .000000
• Y11 2000.000000 .000000
• Y12 .000000 11.363637
• Y21 1500.000000 .000000
• Y22 .000000 7.663636
• Y31 1800.000000 .000000
• Y32 .000000 .000000
• Y41 1000.000000 .000000
• Y42 .000000 24.000002
Parameters for LP equipment
selection model
• rik number of times operation Oi is to be
performed on part type Pk
• cijk cost of performing operation Oi using
production equipment type Mj on part type Pk
• tijk time required to perform operation Oi using
production equipment type Mj on part type Pk
• xijk number of units of operation Oi performed
using production equipment type Mj on part
type Pk
• Cj purchase cost of production equipment type
Mj prorated over the planning period
LP equipment selection model
o m p m

• Min  c
i 1 j 1 k 1
x   C j NM j
ijk ijk
j 1

m
• Subject to x j 1
ijk  rik NPk i =1,2,...,o; k =1,2,...,p
o p

 t
i 1 k 1
x   j NM j
ijk ijk j =1,2,...,m

xijk  0 and integer i  1, 2,..., o; j  1, 2,..., m; k  1, 2,..., p

NM j  0 and integer j  1, 2,..., m

Queuing Model
Manufacturing engineers at the Widget Manufacturing
Company recently convinced their manger to purchase a
more expensive, but flexible machine that can do
multiple operations simultaneously.
The rate at which parts arrived at the machine that was
replaced by the flexible machines follows a Poisson
process with a mean of 10 parts per hour.
The service rate of the flexible machine is 15 units parts
per hour compared with the 11 units per hour service
rate of the machine it replaced. (All service times follow
an exponential distribution.)
Queuing Model
The engineers and manager were convinced that the company
would have sufficient capacity to meet higher levels of demand, but
just after a two months of purchasing the machines it turned out
that the input queue to the flexible machine was excessively long
and part flow times at this station were so long, that the flexible
machine became a severe bottleneck.
The engineers noticed that more parts were routed through this
machine, and that the parts arrival rate to the flexible machines had
increased from 10 per hour to about 20 per hour, but were puzzled
why the part flow time at this station doubled from 30 minutes to
one hour and the work-n-process (WIP) inventory increased nearly
threefold from 5 o 14 when the arrival rte only increased 40%.
Use a queuing model to justify the results observed at Widget
Manufacturing Company.
M/M/1 Model Solution
Parameters Replaced Machine Flexible Machine
Arrival rate 10 14
Service Rate 12 15
Machine Utilization
0.83 0.93

WIP 5 14
Flow Time 0.5 1
Personnel requirements analysis
• n number of types of n
Ti Oi
operations
N 
i 1  H
• Oi aggregate number of
operation type i required on
all the pseudo (or real)
products manufactured per
day
• Ti standard time required
for an average operation Oi
• H total production time
available per day
• η assumed production
efficiency of the plant
Queuing Model
The American Automobile Drivers’ Association (AADA) is the only
office serving customers in New York’s greater capital district area.
Ahead of the busy summer season, the office manager wants to hire
additional staff members to help provide these services to members
effectively - summer travel planning, membership renewal,
disbursing traveler’s checks, airline, hotel, and cruise booking, and
other travel related services.
It is anticipated that each customer typically requires 10 minutes of
service time and customers arrive at the rate of one customer every
three minutes.
The arrival process is Poisson and the service times are
exponentially distributed.
Determine how many staff members are required if the average
wages and benefits per staff member are $20 per hour and the
“cost” to AADA for every hour that a customer waits to be served is
$40.
M/M/m Model Solution
Number of staff members (m) 4 5 6
Arrival rate 20 20 20
Service Rate 6 6 6
Machine Utilization 0.83 0.67 0.56
Time in queue 0.1447 0.0261 0.0075
Hourly Cost $195.74 $120.85 $126.01
Production space requirement sheet

Departme Work Work Lengt Width Area Auxiliar Operato Materia Sub- Allowanc Total Number Total
nt Name Center Center h (feet) (feet2 ) y Area r Space l Space Total e (feet2) space per of Space
Name Code (feet) (feet 2) (feet2 ) (feet 2) (feet2 ) machine Machine Machine
(feet2 ) s Type
(feet2 )

General Vertical 1202 15 15 225 70 30 50 375 150% 565 2 1130

Machining Milling

Planer 2005L 25 5 125 40 20 40 225 125% 290 1 290

Punch 3058 10 10 100 30 20 20 170 140% 240 2 480

Press

Injection 6078 20 10 200 60 50 100 410 150% 615 3 1845

Molding

Otoscope NC- 9087 20 8 160 50 30 30 270 125% 340 2 680

Cell Machine

Lathe 1212 15 8 120 40 20 30 210 150% 315 1 315

Auto- 2056 5 5 25 10 5 5 45 125% 60 1 60

Chucker