Introduction to Facility Planning

Part 4, 5

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  Location and site selection criteria
 Equipment and utilities layout
 Latest tools and software for facility layouts, Types of
Layout
 Work cell layout and job shop layout
 Types of Production, Group / Cellular Technology
 Material Handling Systems

 Type of flows, Material Requirement Planning (MRP-II)

 Inventory Models, Just In Time (JIT) technique and its Pre-
requisites
 Single-Facility Location Problems, Multi facility Location
Problems
 Discrete Location and Layout Problems, Continuous Facility
Design and Layout, Computerized Layout Planning
 Case Projects, Case studies and problem solution
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 Part 4

 PRODUCT,
PROCESS, AND
SCHEDULE DESIGN

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 Manufacturing – F Planning Process
 1. Define the products to be manufactured
 2. Specify the manufacturing processes
and related activities required to produce
the products
 3. Determine the interrelationships among
all activities
 4. Determine the space requirements for
all activities
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 Manufacturing – F Planning Process
 5. Generate alternative facilities plans
 6. Evaluate the alternative facilities plans

 7. Select the preferred facilities plan

 8. Implement the facilities plan

 9. Maintain and adapt the facilities plan

 10. Update the products to be

manufactured and redefine the objective
of the facility
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 ALTERNATIVE FACILITY PLANS
QUESTIONS TO BE ANSWERED
1. What is to be produced? (Product)
2. How are the products to be produced? (Process)
3. When are the products to be produced? (Time)
4. How much each product will be produced? (Qty)
5. For how long will the products be Produced?
(Dur)
6. Where are the products to be produced? (Loc)

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 Facility Design - Components

Product Design – Dimensions,

Composition, Packing and Shape

Process Design – Equipment

options, Make or Buy Decision

Schedule Design – When, for

whom How much, How long

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 1. Product Design
 Decision on which products to be produce

 Detailed design of individual products

 - top management, manufacturing, and finance
concerning projected economic performance

 Detailed Operational Specifications - Pictorial

Representations, Prototypes Exploded Assembly
Drawing (Scale or Not to Scale), Exploded
Fotograph
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Example of Exploded Assy Design

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Exploded Fotograph

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Detailed Tech Drawing

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Tech Drawing

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 2. Process Design
 The process design or plan - how products made
 Who to make or “make-or-buy” decision
 4 Stage Process of evaluation
 1. Availability for purchase
 2. Manufacturing Viability
 3. Alt manufacturing Methodologies cost structure
 4. Capital deployment
 See next slide

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DETERMINING THE SCOPE OF A FACILITY
 basic decision (made early in planning Stage)
 Ex. Hospital serve the health needs of community,
No need of a burn-care clinic, specific types of x-
ray equipment, and/or psychiatric ward
 The excluded services- urgent needed of
community, may not be feasible for a particular
hospital
 Patients requiring care provided elsewhere would
be referred to other hospitals.

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 Scope of Mfg Facility
 Determine Extremes of the processes to be
included in facility
 Decide level of integration with suppliers
 Decide magnitude of work to be done
 Example: Integrate a firm vertically that gets raw
materials and proceeds through a multitude of
refining, processing, and assembly steps to
obtain a finished product Supplies to next firm
firm that purchases components and assembles
finished products

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 Scope Of Mfg Facility
 scope and magnitude of activities within a
manufacturing facility depend on the decisions
concerning the level of vertical integration or
simply “make-or-buy” decisions.
 Make-or-buy top mgt decisions - input from
finance, industrial engineering, marketing, process
engineering, purchasing, and HR, besides a form
of a parts list or a bill of material.

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 MS 18 19

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 PART LIST
 A part list includes at least the following:
 1. Part numbers.
 2. Part name.
 3. Number of parts per product.
 4. Drawing references

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20
bill of materials
 A bill of materials is a structured parts list, plus
information on the structure of the product ie a
hierarchy referring to the level of product
assembly
 Level 0 indicates the final product;
 Level 1 applies to subassemblies and components
that feed directly into the final product;
 Level 2 refers to the subassemblies and
components that feed directly into the first level,
and so on

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Selecting Required Processes
 Make decision follows decision how to make it?
Inputs needed are previous experiences, related
requirements, available equipment, production
rates and future expectations
 6 Step selection procedure used should includes:
 Step 1:Define elemental operations
 Step 2:Identify alt process for each operation
 Step 3:Analyze alt processes
 Step 4: Standardize processes
 Step 5: Evaluate alternative processes
 Step 6: Select processes
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 ROUTE SHEET
The outputs from the process selection procedure
are the processes, equipment, and raw materials
required for the in-house production of products.
Output is generally given in the form of a route
sheet. A route sheet should contain at least the data
given

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 Sequencing Required Processes
 The only process selection information not yet
documented is the method of assembling the
product.
 An assembly chart (figure 12) provides such
documentation. The easiest method of
constructing an assembly chart is to begin with
the completed product and to trace the product
disassembly back to its basic components

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 Assy Chart Construction
 Beginning - lower right-hand corner of the chart
with a finished air flow regulator.
 1. First disassembly operation is unpackage the air
flow regulator (operation A-4)
 2. Packaging is the inspection of the air flow
regulator (Circles are assembly operation; squares
inspections)
 3.The first component disassembled from the air
flow regulator is part number 1050, the pipe plug

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Sequencing .

 4. The lock nut is next disassembled,

 5. Body assembly (the subassembly made
during subassembly operation SA-1) and the
body
 6. Last steps required to complete the
assembly chart are the labeling of the circles
and lines of the seven components following
into SA-1

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OPERATION PROCESS CHART

 Route sheets provide information on

production methods and assembly charts
indicate how components are combined
 No overall understanding of the flow within
the facility
 Superimposing the route sheets on the
assembly chart, a chart results that does give
an overview of the flow within the facility. This
chart is an operation process chart.
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 To construct an operation process chart, begin at
the upper right side of the chart - the components
included in the first assembly operation
 feeding horizontally: If the components are
purchased into the appropriate assembly
operation.
 feeding vertically: components manufactured, the
production methods should be extracted from the
route sheets
 The operation process chart may be completed by
continuing in this manner through all required
steps until the product is ready for release to the
warehouse
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 The operation process chart can be complemented
with transportations, storages, and delays
(including distances and times) when the
information is available.

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 PRECEDENCE DIAGRAM
 A second viewpoint is to interpret the charts as
network representations i.e. to treat the assembly
chart and the operation process chart as special
cases of a more general graphical model, the
precedence diagram- the directed network used
in project planning; critical path diagrams PERT

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 Precedence Diagram / Network
 It shows part numbers on the arcs and denotes
Circles as operations and inspection by squares
 0100 is - procurement operation, initiation process.
 Because of the limitations of the assembly chart
and the operation process chart, a precedence
diagram be constructed first, then alternative
assembly charts and operation process charts
 (Other techniques consider the assembly
according to the relationship among parts instead
of the order in which parts will be assembled)
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 Group Technology
 Group technology is grouping of parts into
families and then making decisions on
characteristics
 Groupings based on part shapes, part sizes,
material types, and processing requirements
 Where there are 1000s of individual parts, the
number of families might be less than 100
 It is an aggregation process that achieves
standardized part numbers, standard
specifications of purchased parts
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 Schedule Design
 Basic questions when & how much to produce
 Production quantity decisions called lot size Dec
 When to produce is called scheduling Dec
 How long production will cont obtained from
market forecasts
 Schedule design decisions impact machine
selection, number of machines, number of shifts,
number of employees, space requirements,
storage equipment, material handling equipment,
personnel requirements, storage policies, unit load
design,building size etc
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 a. Market Information
 Min info req is
Ser Prod Year1 Year 2 Year 5 Year 10

1 A 2000 3000 5000 10000
2 B 4000 5000 7000 12000
3 C 5000 5000 6000 8000

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 If Mkt Info is unavailable, facilities typically
are planned using deterministic data with
assumptions of deterministic data and known
demands must be dealt with when evaluating
alternative facilities plans

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 b. Process Requirements
 Process Requirement (Proc design determines the
specific equipment and Schedule design finds
number of each equipment type) occurs in 3
phases.
 1. Det quantity of components that must be
produces, including scrap allowance, in order to
meet the market estimate
 2. Det equipment requirements for ach operation
 3. Combination of the operation requirements to
obtain overall equipment requirements

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 b. i. Scrap Estimates
 Market estimate = annual volume to be produced
The production scheduled requires amount of
product, plus a scrap estimate (material waste
generated in the manufacturing process due to
geometric or quality considerations)
 Ex. when a rectangular steel plate is used to
create circular components or when rolls of fabric
are used to make shirt
 Production capacity incls production of scrap

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 Let;
 Pk = percentage of scrap produced on the
kth operation,
 Ok = the desired output of non-defective
product from operation k,
 Ik = the production input to operation k.
 Ok = Ik – PkIk or Ok = Ik(1– Pk)

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 Example:
 A product has a market estimate of 97,000
components and requires three processing steps
(turning, milling, and drilling) having scrap
estimates of P1=0.04, P2=0.01, P3=0.03.
Calculate the production input to operation 1

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Summary of Inputs and Outputs

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 b.ii Equipment Fractions
 It is quantity of equipment required for an
operation, is determined by dividing the total time
required to perform the operation by the time
available to complete the operation. The total
time required to perform an operation is the
product of the standard time for the operation
and the number of times the operation is to be
performed

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Cont b.ii Equipment Fractions

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Factors effecting Equipment Requirements
 Number of shifts (one machine for more shift)
 Setup times (if machines not dedicated, the longer
the setup, the more machines needed)
 Degree of flexibility (for customers small lot sizes
of different products delivered frequently – extra
machine capacity required to handle order)
 Layout type (dedicated manufacturing cells or
factories focused to the production of product
families may require more machines)
 Total productive maintenance (increase machine
up time and quality, so need fewer machines) 52
 Example:
 A machine part has a machinery time of 2.8 min
per part on a milling machine. During an 8-hr shift
200 units are to be produced. Of the 480 min
available for production, the milling machine will
be operational 80% of the time. During the time
the machine is operational, parts are produced at
a rate equal to 95% of the standard rate.
 How many milling machines are required?

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Solution

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 Ms19. 18

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 Facilities Design
 Once the product, process and schedule
design decisions have been made, the
facilities planner organizes the information
and generates and evaluates layout,
handling, storage, and unit load design
alternatives

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 Facilities Design
 The seven management and planning tools are
1. Affinity diagram,
2. Interrelationship digraph,
3.Tree diagram,
4. Matrix diagram,
5. Contingency diagram,
6. Activity network diagram, and
7. Prioritization matrix

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 1. Affinity Diagram
The affinity diagram gathers verbal data, eg ideas
and isues, and organizes it into groups.

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 1. Affinity Diagram
The affinity diagram gathers verbal data, eg ideas
and isues, and organizes it into groups.

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2. Interrelationship Diagraph
The interrelationship diagraph is used to map the
logical links among related items, trying to identify
which items impact others the most. This graph
helps us understand the logical sequence of steps
for the facilities design

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3. Tree Diagram
The tree diagram is used to map in increasing
detail and actions that need to be accomplished in
order to achieve more general objectives
Next slide

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 4. Matrix Diagram
A matrix diagram organizes information such as
characteristics, functions, and tasks into sets of
items to be compared to provide visibility to key
contact on specific issues and helps identify
individuals who are assigned to too many teams

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 5. Contingency Diagram
The contingency diagram formally known as
Process Decision Program Chart, maps
conceivable events and contingencies that might
occur during implementation. It particularly is
useful when the project being planned consists of
unfamiliar tasks

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 6. Activity Network Diagram
 The activity network diagram is used to develop a
work schedule for the facilities design effort. This
diagram is synonymous to the critical path method
(CPM) Network Diagram. It can also be replaced
by a Gantt charts

Diagram to follow

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 7. Prioritization Matrix
In developing facilities design alternatives it is
important to consider:
 (a) Layout characteristics
 • total distance travelled
 • manufacturing floor visibility
 • overall aesthetics of the layout
 • ease of adding future business

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 7. Prioritization Matrix
In developing facilities design alternatives it is
important to consider:
 (b) Material handling equipment
 • use of current material handling equipment
 • investment requirements on new equipment
 • space and people requirements

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7. Prioritization Matrix
 (c) Unit load implied
 • impact on WIP levels
 • space requirements
 • impact on material handling equipment

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 7. Prioritization Matrix
 (d) Storage strategies
 • space and people requirements
 • impact on material handling equipment
 • human factor risk
 (e) Overall building impact
 • estimated cost of the alternative
 • opportunities for new business.

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Judging Relative Importance Pri Matrix
 A. Total distance  G. Space
travelled requirements
 B. Manufacturing  H. People
floor requirements
 C. Overall  I. Impact on WIP
aesthetics of the levels
layout

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Logical Sequence of 7 Tools application
1. Affinity Diagram
2. Interrelationship Diagram
3. Tree Diagram
4. Prioritization Matrix
5. Matrix Dia
6. Process Decision Program Chart
7. Activity Network
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Logical
Sequence
of 7 Tools
application

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 Part 4 Case Study

From Job Shop Chaos To

Lean Order
Material Handling Systems

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 Lean Order
 Classic lean manufacturing principles are
practically taken as gospel, but benefits can be
elusive for manufacturers that produce a variety of
parts in low volumes

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 Lean Order
 This example of a shop took a different approach
to lean—one aided by software that helped identify
a more efficient machine layout based patterns in
part routings
 Lean practices can go only so far in a job shop
without optimizing part routings. As such, these
routings might be considered the job shop's
"DNA"--that is, the primary determiner of its
essential makeup
 Case Study - Jeff Gleich 2007 - The G&G
Manufacturing Company, (a job shop founded by
his grandfather, Kurt Gleich)
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 C&G – The Case
 C&G, serves a wide variety of industries variety
of part sizes and shapes from its 30,000-square-
foot facility in Cincinnati, Ohio
 Materials machined include steel and stainless
steel; harder alloys such as titanium and Inconel;
and copper, bronze and plastic, to name a few
 Possesses an array of mills, lathes, machining
centers and screw machines
 Shop floor is home to equipment used for
secondary processes such as grinding, lapping
and honing
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 C&G ………
 The company produces approximately 1,000
different parts in batch sizes ranging from the
hundreds to the thousands for more than 120
regular customers
 Pursuing such a dynamic mix of jobs
 Faces a number of lean implementation hurdles -
foreign to a large, assembly-type operation
 Many parts share relatively few machining
resources
 Design changes are common, demand fluctuates,
and contracts can change from year to year.
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 C&G ……
 Delivery dates, lot sizes, equipment requirements
and cycle times are also highly variable
 As a result of these and other factors, dedicated
cells, “pull” production based on Kanban visual
aids and other practices designed for continuous
flow simply don’t translate easily to this
environment
 Job shops leaning efforts fail gen
 Central philosophy of lean—improving efficiency,
removing non value adding processes – not valid
for job shop - in a high-mix, low-volume operation
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 Mapping Job Shop DNA
 Dr. Shahrukh Irani, associate professor at The
Ohio State University’s Department of Integrated
Systems Engineering, has one recent project in
his job shop lean research - development of the
Production Flow Analysis and Simplification Toolkit
(PFAST) , a library of software programs designed
to evaluate and simplify material flows in order to
help manufacturers develop part families and
machine groupings

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 Mapping Job Shop DNA
 In job shop, no two parts are alike in terms of
how they proceed through the process chain
 However, all move through a relatively limited
number of work stations
 PFAST helps identify common patterns in these
routings. Paired with data regarding the frequency
of a job, its volume and the revenue it generates,
these patterns help manufacturers design efficient
shop layouts that facilitate optimum flow and
prioritize the most important work.

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 DNA and C&G Situation
 Mr. Gleich credits this software tool for helping
G&G overcome a key hurdle in its lean journey. His
meeting Dr. Irani or discovering PFAST was key to
why the shop needed such a tool. So when he
boiled down to its essence, lean is really all about
flow. If a job shop is a living organism, part routings
would be its DNA—the genetic blueprint for how it
functions. Addressing operations on this basic level
is imperative to changing a shop’s essential
makeup and getting the most out of lean. Without
optimizing routings, a shop can go only so far with
alternative efficiency-boosting strategies, useful as
they may be 84
 Implement Lean Manufacturing Principles
Manufacturing Company - Job shop leaning
1. A Kaizen program, - setup teams to be put in
place to improve spindle uptime
2. 5S and other lean programs to identify and
reduce waste
3. Count the efficiency gains (should not seem
like a step forward only to take another step
back,”)

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Implement Lean Manufacturing Principles
two key insights about the nature of lean
manufacturing and how it applies to the job shop, as
opposed to production environments (Toyota is the
classic example)
First - understanding that the vast majority of
generally accepted lean practices are designed to
optimize flow—that is, how product is routed through
the manufacturing operation
Second, (most critical) the realization that the most
effective way to streamline flow in a high-mix, low-
volume operation is to organize jobs into process
families rather than part families 87
 Featured Content - Preperation
Armed with two notions (ante) and a software
analysis tool to identify patterns in job routings
G&G realized improvements in productivity and lead
time ranging to 25 and 50 percent, respectively
Mr. Gleich called it “flexible flow cells”
The following offers a glimpse into the evolution of
G&G’s lean thinking, the challenges it faced, and the
software that propelled its transformation into an
exemplary model of how lean can be adapted to a
job shop environment

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 Task- The Journey of a Thousand Miles…
 …begins with a single step, G&G - since its first
tentative steps toward lean implementation in
1998, ref book “Lean Thinking” by James T.
Womack and Daniel T. Jones
 Demand to “get lean or else.” read the book, took
some training material and started the shop’s lean
journey

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 Step 1
 G&G moved away from departmentalizing
machines and other equipment by type and
toward its first cellular layouts
 Organized new cells, to complete specific
jobs as efficiently as possible
 Cells lacked the flexibility required to
accommodate inevitable changes in demand
and in the shop’s product mix. If a contract
wasn’t renewed, the cell became useless and
would be broken up

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 Step 2 - The Job Shop Difference
 The cellular production - “one-size-fits-all” appch
 A high-mix, low-volume operation unlike Toyota -
World War II to streamline the auto production
developed Toyota Production System (TPS), -
basis of today’s lean thinking, is geared toward
large assembly plants dedicated to high-
production processing of a relatively limited
number of parts or part families.
 In contrast, job shop apch “all things to all people,”

91
 Step 2 -The Job Shop Difference


 As such, it’s no wonder so many job shops have

floundered in their attempts at lean. This is not to
say that the central philosophy of lean—improving
efficiency by doing away with all processes or
practices that don’t add value for the customer—
doesn’t apply to the job shop. Rather, the issue is
a lack of well-defined methods for implementing
that philosophy in a high-mix, low-volume
operation.

92
 Step 2
 The Job Shop Difference
 These initial efforts with cellular production
illustrate the difficulty of applying a “one-size-fits-
all” approach to lean practices. A high-mix, low-
volume operation like G&G isn’t exactly what
Toyota engineers had in mind when they
developed their famous production system in the
wake of World War II to streamline the production
of automobiles. Rather, the Toyota Production
System (TPS), which forms the basis for much of
today’s lean thinking, is geared toward large
assembly plants dedicated to high-production 93
 Routing – A job Shop DNA
 This image, illustrates a key point: lean practices
can go only so far in a job shop without optimizing
part routings. As such, these routings might be
considered the job shop's "DNA"--that is, the
primary determiner of its essential makeup.

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 RUNNERS, REPEATERS AND STRANGERS
Sampling of Parts
 This sampling of parts illustrates the diversity of
work G&G takes on from year to year. Depending
on their annual volume, parts are classified as
“runners,” “repeaters” or “strangers.”

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 "hybrid cell"
 This Cell enables the
shop’s smaller turning and
milling work to flow in and
out at any point, based on
the job. Including multiple
machines of the same
type, located within a
compact space to
minimizes walking time
and help ensure that a
machine will be open if
others are occupied.
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 "DEDICATED CELL"
 Even in a job shop
dedicated resources are
justified for parts
produced in sufficiently
high volumes throughout
the year. Consisting of
VMCs from Miyano and
Mori Seiki as well as a
lathe from Intertech, this
traditional, U-shaped cell
is dedicated solely to
“runners.” 97
 "5S Organization"
5S (Sort, set in order, shine
Stdize, & Sustain), board
implemented after the shop’s
lean project with Definity to
ensure that lean efforts are
driven from the bottom up
rather than the top down.
Employees use these boards
to document waste, downtime
and other issues, which are
then discussed by mgmt at
weekly meetings 98
 "barstock"
In addition to an
assortment of part
geometries and
sizes, G&G
contends with the
challenge of
machining
materials ranging
from plastic to all
types of metals and
alloys.
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 "Flexible Manufacturing Cell"
It is no accident that the
sign shown here is light
and easy to move, nor
that the rack behind it is
on wheels. This
illustrates the flexibility
of G&G’s hybrid cells,
which facilitate work
flowing in and out at
any point according to
the requirements of a
given job. 100
Ꝙ 101
 ‫‪Thanks‬‬

‫دنبہ‪‬‬ ‫پہ مخہ‬

‫‪102‬‬