Om Module II Layout

7/31/2019 Om Module II Layout

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AMITY GLOBAL

BUSINESS SCHOOL Bangalore

1

MBA, Semester 2

Operations Management

Ms. Aarti Mehta Sharma


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2Facility Layout


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3The configuration of departments, work centers, and

equipment, with particular emphasis on movement of

work (customers or materials) through the system

This could be for new plants or could be

Improvements in layouts already in use to introduce

new methods and improvements in manufacturing

procedures.

Facilities Layout


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4 Requires substantial investments of money and effort

Involves long-term commitments

Has significant impact on cost and efficiency of

operations

Importance of Layout Decisions


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Objectives of a good layout Provide enough production capacity Reduce material Handling costs

Reduce Congestion

Reduce accidents / hazards to personnel

Utilize labor efficiently

Provide for volume and product flexibility

Provide ease of supervision

Allow ease of maintenance

Allow high machine / equipment utilisation

The arrangement should be congruent with the flow of materials

Sequence of equipments

In addition to floor space, the vertical space should also be considered.


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Costs Cost of movement of materials from one work area to another

Cost of space

Cost of production delays, if any.

Cost of spoilage of materials Cost of labor dissatisfaction and health risks

Cost of changes, if any

Cost of customer dissatisfaction due to poor service


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7 Product layouts

Process layouts

Fixed-Position layout Cellular Manufacturing

Combination layouts

Basic Layout Types


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Product layout

Layout that uses standardized processing operations to

achieve smooth, rapid, high-volume flow

Suitable for assembling operations eg. Automobile industry

No. of equipment large

Volume of production large

Variety of products is low ; Two products ---- two product

layouts Flow of materials

Sequence of equipments


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9Raw

materialsFinished

item

Station

2

machining

Station

3Heating

Station

4Painting

Material

and/or

labor

Station

1

drilling

Material

and/or

labor

Material

and/or

labor

Material

and/or

labor

Used for Repetitive or Continuous Processing

Product Layout


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Wine mfg


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Pizza


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13 High rate of output

Low unit cost

Labor specialization not high Low material handling cost

High utilization of labor and equipment

Established routing and scheduling

Routing accounting and purchasing

Advantages of Product Layout


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14 Creates dull, repetitive jobs

Poorly skilled workers may not maintain equipment or

quality of output

Fairly inflexible to changes in volume Highly susceptible to shutdowns

Needs preventive maintenance

Individual incentive plans are impractical

Disadvantages of Product Layout


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Process Layout / Job Shop production Equipment performing similar functions is grouped together

Volume of manufacturing is low

Variety of products ( each customer is unique)

Example : Customised Cars


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Drilling

Casting Machining

Heating

Packaging

Painting

Used for Intermittent processing

Job Shop or Batch

Process Layout

(functional)

Process Layout


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Process Layout - work travelsto dedicated process centers

Milling

Assembly

& TestGrinding

Drilling Plating

Process Layout


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Gear

cutting

Mill Drill

Lathes

Grind

Heat

treat

Assembly

111

333

222

444

222

111

444

111 3331111 2222

222

3333

111

444

111


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Exhibit 8.2 Process Layout for a Machine Shop


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Can handle a variety of processing requirements

Not particularly vulnerable to equipment failures Equipment used is less costly

Possible to use individual incentive plans

Advantages of Process Layouts


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22 In-process inventory costs can be high

Challenging routing and scheduling

Equipment utilization rates are low

Material handling slow and inefficient

Complexities often reduce span of supervision

Special attention for each product or customer

Accounting and purchasing are more involved

Disadvantages of Process Layouts


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Fixed Position Layout

The position of product is

fixed

Tools, Men and materials

come to the product

Manufacture of Large

products such as

locomotives, boilers, ships,

hospital etc


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Advantages Men and machines can be used for a wide variety ofoperations producing different products

Investment on layout is very small

Worker identifies himself with the product and feels pride in it. Cost and difficulty of transporting a bulky product is avoided


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Layout in which machines are grouped into a cell

that can process items that have similar processing

requirements The grouping into part families of items with similar

design or manufacturing characteristics

A complete product or part of a product is

manufactured

Cellular Layouts


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Process Flows before the Use of GT Cells


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Process Flows after the Use of GT Cells


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One worker cell

Machine1

Machine2

Machine3

Machine4Machine

5

Materials in

Finishedgoods out


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Advantages

Key enabler of increased production velocity and flexibility

The reduction of capital requirements.

Reduction of over production

Products move through the manufacturing process one-piece ata time, at a rate determined by customers' needs

Shifts worker responsibilities from watching a single machine,

to managing multiple machines in a production cell.


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Service facility Layout Service facilities exist to bring together customers and

facilities ( banks, hospitals ).

Banks are designed around customer receiving and servicing

Hospitals are designed around technology( X ray / radiology /pathology machines), processing of patients (receiving

patients, settling accounts ) and operation efficiency ( surgery,

gynecological, patient recovery).

Easy entrance and parking space are an essential requirement Process Layout


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Arrangement of other facilities

Receiving Department

- raw materials (vendor oriented services)

Shipping Department

- finished goods are delivered to customersEnd of the plant

Store room

- raw materials, finished goods, partly finished goods and

supplies are stored- close to the production centre


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Inspection

- of purchased material (raw materials, parts,supplies)

- of work in process

- of finished groups

At every stage, every department

Maintenance

- of machinery / building

- heating / air conditioning

- machine and equipment installation

- safety devices / fire protection

- collection and disposal of waste / garbage / refuse


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Employee Facilities

- time clocks

- toilets

- drinking water- cafeteria

- safety measures

Other Facilities

- power generators

- water filters

- chilling plant ( close to the boiler room )


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Planning

By in house engg or planning department

Depends upon the product

Depends upon volume

Determine process Determine flow of materials

Decide upon equipment( also for material handling) and work

centres

Determine storage requirement

A G O A


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Decide upon labordirect / indirect

Draw building specifications, floor plan

Preparation of detailed layout planning

Approval from Management Preparation of work schedule

Construction starts

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Tools and Techniques Templates

Line Balancing

Analysing with Computers

Travel chart method Load Distance method

Systematic Layout Planning

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Load distance

analysis method For comparison of alternative layouts

Multiply actual distance moved and load (units)

Try to minimize the same

Illustration Two layouts A and B are given

Data consists of the facility's products, distance between

depts. and travel between depts.

Determine the best layout

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Layout A8 4 10 2 5

3 7 1 9 6

Layout B7 1 9 6 3

4 10 2 5 8

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Dept.movementcombination

Dist bet dept(ft) Deptmovementcombination

Dist bet dept

(ft)A B A B

1 5 30 30 3 9 30 20

1 7 10 10 4 5 30 30

1 9 10 10 4 7 10 10

1 - 10 10 10 4 10 10 10

2 5 10 10 5 6 10 102 6 20 20 6 9 10 10

2 10 10 10 7 8 20 50

3 - 6 40 10 8 - 10 20 30

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Products Department

ProcessingSequence

No. of products processed

per month

A 1-5-4-10 1000

B 2-6-3-9 2000C 2-10-1- 9 3000

D 1-7-8-9 1000

E 2-5-6-9 2000

F 1-7-4-10 4000

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Product Load / pm Distance per product Load * Distance

Layout A Layout B Layout A Layout B

A 1000 70 70 70,000 70,000

B 2000 90 50 1,80,000 1,00,000

C 3000 30 30 90,000 90,000D 1000 50 90 50,000 90,000

E 2000 30 30 60,000 60,000

F 4000 30 30 1,20,000 1,20,000Total 5,70,000 5,30,000

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Systematic Layout Planning Service facilities

Material flow not critical

Develop a relationship chart / Richard Muthers

halfmatrix / fish diagram

Chart rates the relative importance of locating one

dep't close to another

Ratings are indicated by code letters a,e,i,o,u,x Developed by trail and error

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Reasons (optional)

Code Reason

1 Type of customer

2 Ease of supervision

3 Common personnel

4 Contact necessary

5 Share same space

6 psychology

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Value Closeness Line code

A Absolutely Necessary

E Especially ImportantI Important

O Ordinary

U Unimportant

X Undesirable

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Nearness Diagram

Credit

Toy

Wine

Camera

Candy

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5 2 4

1 3

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Assembly line balancing

Typically, sequence of tasks required to assemble a product is

dictated by its design.

For many assemblies that consist of a large number of tasks,

there are a large number of ways to group tasks together into

individual workstations while still ensuring the propersequence of work.

Assembly line balancing is a technique to group tasks among

workstations so that each work-station has, ideally, the sameamount of work.

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Example: if it took 90 seconds to assemble a pen, and the work

was divided evenly among three workstations, then each

workstation would be assigned 30 seconds of work content per

unit.

Basic assumptions:

No idle time per workstations; and the output of the first

workstation immediately becomes input to the next

workstation.

In the current example, there are no bottleneck workstations,

and the flow of pens through the line is continuous.

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Objective of assembly line balancing is to minimize the

imbalance among workstations while trying to achieve a

desired output rate.

So either, one can minimize the number of workstations for a

given production rate or maximize the production rate for agiven number of workstations.

Though typically carried out at the design stage of the

assembly line, line balancing is also required whenever there is

a change in product design and/or new product introduction.

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A bl li b l i


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Input for assembly line balancing:

1. A set of tasks to be performed and the time required toperform each task

2. The precedence relations among the tasks- that is, the

sequence in which tasks must be performed, and3. The desired output rate or forecast of demand for the

assembly line.

The first two requirements can be obtained from the productdesign documents

The third one is specified by the management.

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A bl li b l i E l


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Assembly line balancing: Example

An activity consisting of three tasks: A, B and C.

Task A is first, and takes 0.5 minutes

Task B is next, and takes 0.3 minutes

Task C is the last, and takes 0.2 minutes.

Since, all the tasks must be performed to complete one part,

total time required to complete one part is

0.5+0.3+0.2 = 1 minute.

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A bl li b l i E l


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Assembly line balancing: Example

Suppose that one worker performs all three tasks

(sequentially).

Then in an 8-hour shift, the worker could produce

480 parts/day.

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Li B l i


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Line Balancing

Assembly line study

Equally divides the work among workers

No. of employees is minimised

Most common is a moving conveyor that passes aseries of work stations in a uniform time interval

called workstation time cycle

Assembly line balancing is the assigning of tasks to aseries of workstations in such a manner that each

workstation has no more than can be done in the work

station time

Idle time across all workstations is minimized

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Precedence relationship : the order in which tasks must be

performed in the assembly process.

Precedence Diagram : circles represent tasks; arrows indicate

the order of task performance

Workstation cycle time :

= production time per day

reqd output per day (in units)

Nt (no. of workstations) = sum of task timescycle time

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Assign tasks to workstation 1, 2, 3 .

Na = actual no. of workstations

Efficiency (idle time is minimised)

= sum of task times(T)

no. of workstations(Na) workstation cycle time

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Ill t ti


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Illustration

The Model J Wagon is to be assembled on a conveyor

belt. 500 wagons are required per day. Production

time per day is 420 minutes, and the assembly steps

and times for the wagon are given in the table. Findthe balance that minimizes the number of

workstations, subject to cycle time and precedence

constraints.

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ASSEMBLY STEPS AND TIMES

FOR MODEL J WAGON

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Task TaskTime

Description Tasks thatmust precede

A 45Position rear axle

B 11 Hand fasten four screws to nuts A

C 9 Tighten rear axle B

D 50 Position front axle

E 15 Tighten front axle DF 12 Position rear wheel # 1;fasten hubcap C

G 12 Position rear wheel # 2;fasten hubcap C

H 12 Position rear wheel # 3;fasten hubcap E

I 12 Position rear wheel # 4;fasten hubcap E

J 8 Position wagon handle shaft on front axleassemby

F,G,H,I

K 9 Tighten bolt and nut J

195

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P d G h


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Precedence Graph

F

A B C

G

D E H J K

I

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C = production time per day = 60 s * 420 min = 50.4

output per day 500

Convert to seconds as task time is in seconds

Minimum no. of workstations required

= 195 / 50.4 = 3.87 = 4

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Task Task time

Remaining

time

Station 1 A 45 5.4 idle

Station 2 D 50 0.4 idle

Station 3 B 11 39.4

C 9 30.4F 12 18.4

G 12 6.4

Station 4 E 15 35.4

H 12 23.4

I 12 11.4

J 8 3.4idle

Station 5 K 9 41.4 idle

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Efficiency = T = 195 = 0.77

NaC 5 * 50.4

77 %

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Quality of a good layout

Minimise materials handling cost

Effective use of available area

Minimisation of production delays

Improved Quality Control / Avoidance of unnecessary and

costly changes Minimum Equipment Investment

Avoidance of bottlenecks

Better production control

Better Supervision Improved utilisation of labor

Improved Employee Morale

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2. A company wants to add a new wing to its present

manufacturing shop to manufacture certain products. The

two alternative layouts being considered are as below :

LAYOUT A

1 2 4 5 6

3 7

LAYOUT B

2 5 6

3

1 4 7

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Trips between

departments

Distances between Departments

Layout A Layout B12 24 50

13 24 30

14 38 46

23 44 20

24 30 72

34 44 52

45 50 4056 50 44

57 50 60

6 - 7 40 40

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Sequence of processing is given below. Use load distance

analysis to determine best layoutProducts Sequence Batch size

P1 1-2-3-4-5-6-7 1400

P2 1-2-4-5-6-7 200

P3 1-3-4-5-6-7 1200

P4 1-3-4-5-7 300

P5 1-4-5-6-7 200

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3. Arrange six departments 1,2,3,4,5 and 6 in the facility

outline shown below so that the nearness priorities

shown in the TABLE are satisfied.

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Deptt 2 3 4 5 6

1. Reception 500 5 200 0 10

2.X Ray 10 300 0 83. Surgery 100 0 400

4.Examining rooms 0 15

5.Lab 3

6. Nurses station

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Department 1

Department 2

Department 3

Department 4

Department 5Department 6

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4. X Agri products is planning to set up a regional warehousein north eastern Maharashtra. M/s Shivajirao & Co..M/sPatil Farms,M/s Aras & Brothers, and M/s Jambhekar &Co.are its main clients in that area. The business volume withthe above four is roughly in the ratio 5:4:3:2 . The distancesof the clients from Lakshmipur, a town in that area :

Shivajirao 50 km North

Patil 100 km North east

Aras 75 km South West

Jambhekar 45 km east

Where, wrt Lakshmipur, should X Agri Poducts locate theirwarehouse ?

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5. Manufacturing Engineers at SunyManufacturing were working on a newremote controlled Monster Truck. They

hired a production consultant to help themdetermine the best type of productionprocess to meet the forecasted demand fothis new product. The consultant

recommended that they use an assemblyline that will produce 600 Monster Trucksper day to meet the demand forecast.

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The workers of the plant work 8 hours perday. The task information for the new

Monster Truck is given in the table :

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Task Task Time(in secs) Preceding Tasks

A 28

B 13

C 35 B

D 11 A

E 20 CF 6 D,E

G 23 F

H 25 F

I 37 G

J 11 G,H

K 27 I,J

Total 236

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Draw the precedence diagram

What is the reqd cycle time ?

Calculate Nt and Na

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C= 60 * 480 / 600 = 48 s

Nt= 236 /48 = 4.92 = 5

Na = 6

Om Module II Layout

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