2 Ch 9 Facility Layout Chapter Summary

2 Ch 9 Facility Layout Chapter Summary - Operations...

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Unformatted text preview: Operations Management Chapter 9 – Chapter Layout Strategies Layout 9–1 Outline Global Company Profile: Global McDonald’s McDonald’s The Strategic Importance of The Layout Decisions Layout Types of Layout Office Layout 9–2 Outline – Continued Retail Layout Servicescapes Warehousing and Storage Layouts Cross-Docking Random Docking Customizing Fixed-Position Layout 9–3 Outline – Continued Process-Oriented Layout Computer Software for ProcessOriented Layouts Work Cells Requirements of Work Cells Staffing and Balancing Work Cells The Focused Work Center and the The Focused Factory Focused 9–4 Outline – Continued Repetitive and Product-Oriented Repetitive Layout Layout Assembly-Line Balancing 9–5 Learning Objectives When you complete this chapter you should be able to: 1. Discuss important issues in office layout 2. Define the objectives of retail layout 3. Discuss modern warehouse management and terms such as ASRS, cross-docking, and random stocking 4. Identify when fixed-position layouts are appropriate 9–6 Learning Objectives When you complete this chapter, you should be able to: 1. Explain how to achieve a good processoriented facility layout 2. Define work cell and the requirements of Define a work cell work 3. Define product-oriented layout 4. Explain how to balance production flow Explain in a repetitive or product-oriented facility in 9–7 Innovations at McDonald’s Indoor seating (1950s) Drive-through window (1970s) Adding breakfast to the menu Adding (1980s) (1980s) Adding play areas (late 1980s) Redesign of the kitchens (1990s) Self-service kiosk (2004) Now three separate dining sections 9–8 Innovations at McDonald’s Indoor seating (1950s) Drive-through window (1970s) Six out of the Six Adding breakfast to the menu Adding seven are (1980s) (1980s) layout Adding play areas (lateecisions! decisions! d 1980s) Redesign of the kitchens (1990s) Self-service kiosk (2004) Now three separate dining sections 9–9 McDonald’s New Layout Seventh major innovation Redesigning all 30,000 outlets around the world Three separate dining areas Linger zone with comfortable chairs and Wi-Fi connections Grab and go zone with tall counters Flexible zone for kids and families Facility layout is a source of competitive advantage 9 – 10 Strategic Importance of Strategic Layout Decisions Layout The objective of layout strategy The is to develop a cost-effective layout that will meet a firm’s competitive needs competitive 9 – 11 Layout Design Layout Considerations Considerations Higher utilization of space, equipment, Higher and people and Improved flow of information, materials, Improved or people or Improved employee morale and safer Improved working conditions working Improved customer/client interaction Flexibility 9 – 12 Types of Layout 1. Office layout Office 2. Retail layout 2. Retail 3. Warehouse layout 3. 4. Fixed-position layout 5. Process-oriented layout 6. Work-cell layout Work-cell 7. Product-oriented layout 7. 9 – 13 Types of Layout 1. Office layout: Positions workers, Office their equipment, and spaces/offices to provide for movement of information information 2. Retail layout: Allocates shelf space Retail and responds to customer behavior 3. Warehouse layout: Addresses trade3. offs between space and material offs handling handling 9 – 14 Types of Layout 1. Fixed-position layout: Addresses Fixed-position the layout requirements of large, bulky projects such as ships and buildings buildings 2. Process-oriented layout: Deals with Process-oriented low-volume, high-variety production (also called job shop or intermittent production) production) 9 – 15 Types of Layout 1. Work cell layout: Arranges Work machinery and equipment to focus on production of a single product or group of related products group 2. Product-oriented layout: Seeks the Product-oriented best personnel and machine utilizations in repetitive or continuous production continuous 9 – 16 Good Layouts Consider 1. Material handling equipment 2. Capacity and space requirements 3. Environment and aesthetics 4. Flows of information 5. Cost of moving between various Cost work areas work 9 – 17 Layout Strategies Office Retail Examples Allstate Insurance Microsoft Corp. Kroger’s Supermarket Walgreen’s Bloomingdale’s Problems/Issues Locate workers requiring frequent contact close to one another Table 9.1 9 – 18 Warehouse (storage) Federal-Mogul’s warehouse The Gap’s distribution center Expose customer to high-margin items Balance low-cost storage with low-cost material handling Layout Strategies Project (fixed position) Examples Ingall Ship Building Corp. Trump Plaza Pittsburgh Airport Problems/Issues Move material to the limited storage areas around the site Table 9.1 9 – 19 Job Shop (process oriented) Arnold Palmer Hospital Hard Rock Café Olive Garden Manage varied material flow for each product Layout Strategies Work Cells (product families) Examples Hallmark Cards Wheeled Coach Standard Aero Problems/Issues Identify a product family, build teams, cross train team members Sony’s TV assembly line Toyota Scion Repetitive/ Continuous (product oriented) Equalize the task time at each workstation Table 9.1 9 – 20 Office Layout Grouping of workers, their equipment, Grouping and spaces to provide comfort, safety, and movement of information safety, Movement of Movement information is main distinction distinction Typically in state of Typically flux due to frequent technological changes changes 9 – 21 Relationship Chart Figure 9.1 9 – 22 Supermarket Retail Layout Objective is to maximize Objective profitability per square foot of floor space floor Sales and profitability vary Sales directly with customer exposure directly 9 – 23 Five Helpful Ideas for Five Supermarket Layout Supermarket 1. Locate high-draw items around the Locate periphery of the store periphery 2. Use prominent locations for high-impulse Use and high-margin items and 3. Distribute power items to both sides of Distribute an aisle and disperse them to increase viewing of other items viewing 4. Use end-aisle locations 5. Convey mission of store through careful Convey positioning of lead-off department positioning 9 – 24 Store Layout Figure 9.2 9 – 25 Retail Slotting Manufacturers pay fees to retailers Manufacturers to get the retailers to display (slot) their product their Contributing factors Limited shelf space An increasing number of new An products products Better information about sales Better through POS data collection through Closer control of inventory 9 – 26 Retail Store Shelf Space Retail Planogram Planogram Computerized tool for shelf-space management Generated from store’s scanner data on sales Often supplied by manufacturer 5 facings Shampoo Conditioner Shampoo Conditioner Shampoo Shampoo Shampoo Conditioner Shampoo 2 ft. 9 – 27 Shampoo Shampoo Shampoo Servicescapes Ambient conditions - background Ambient characteristics such as lighting, sound, smell, and temperature smell, Spatial layout and functionality - which Spatial involve customer circulation path planning, aisle characteristics, and product grouping product Signs, symbols, and Signs, artifacts - characteristics of building design that carry social significance carry 9 – 28 Warehousing and Storage Warehousing Layouts Layouts Objective is to optimize trade-offs Objective between handling costs and costs associated with warehouse space associated Maximize the total “cube” of the Maximize warehouse – utilize its full volume while maintaining low material handling costs handling 9 – 29 Warehousing and Storage Warehousing Layouts Layouts Material Handling Costs All costs associated with the transaction Incoming transport Storage Finding and moving material Outgoing transport Equipment, people, material, supervision, Equipment, insurance, depreciation insurance, Minimize damage and spoilage 9 – 30 Warehousing and Storage Warehousing Layouts Layouts Warehouse density tends to vary Warehouse inversely with the number of different items stored items Automated Storage and Automated Retrieval Systems (ASRSs) can significantly improve warehouse productivity by an estimated 500% an Dock location is a key Dock design element design 9 – 31 Cross-Docking Materials are moved directly from Materials receiving to shipping and are not placed in storage in the warehouse in Requires tight Requires scheduling and accurate shipments, bar code or RFID bar identification used for advanced shipment notification as materials are unloaded 9 – 32 Random Stocking Typically requires automatic identification Typically systems (AISs) and effective information systems systems Random assignment of stocking locations Random allows more efficient use of space allows Key tasks 1. Maintain list of open locations 2. Maintain accurate records 3. Sequence items to minimize travel, pick time 4. Combine picking orders 5. Assign classes of items to particular areas 9 – 33 Customizing Value-added activities performed at Value-added the warehouse the Enable low cost and rapid response Enable strategies strategies Assembly of components Loading software Repairs Customized labeling and packaging 9 – 34 Warehouse Layout Traditional Layout Storage racks Customization Conveyor Staging Shipping and receiving docks 9 – 35 Office Warehouse Layout Cross-Docking Layout Shipping and receiving docks Shipping and receiving docks Office 9 – 36 Fixed-Position Layout Product remains in one place Product Workers and equipment come to site Complicating factors Limited space at site Different materials Different required at different stages of the project stages Volume of materials Volume needed is dynamic needed 9 – 37 Alternative Strategy As much of the project as possible As is completed off-site in a productis oriented facility This can This significantly improve efficiency but is only possible when multiple similar units need to be created units 9 – 38 Process-Oriented Layout Like machines and equipment are Like grouped together grouped Flexible and capable of handling a Flexible wide variety of products or services services Scheduling can be difficult and Scheduling setup, material handling, and labor costs can be high labor 9 – 39 Process-Oriented Layout ER triage room Surgery Patient A - broken leg Emergency room admissions Patient B - erratic heart pacemaker Laboratories Radiology ER Beds Pharmacy Billing/exit Figure 9.3 9 – 40 Layout at Arnold Palmer Hospital Central break Central and medical supply rooms supply Local linen Local supply supply Pie-shaped Pie-shaped rooms rooms Central nurses Central station station Local Local nursing pod nursing 9 – 41 Process-Oriented Layout Arrange work centers so as to Arrange minimize the costs of material handling handling Basic cost elements are Number of loads (or people) moving Number between centers between Distance loads (or people) move Distance between centers between 9 – 42 Process-Oriented Layout Minimize cost = ∑ ∑ Xij Cij Minimize i=1 j=1 n n where n= total number of work total centers or departments centers i, j = individual individual departments departments Xij = number of loads number moved from department i to department j department Cij = cost to move a load cost between department i and 9 – 43 Process Layout Example Arrange six departments in a factory to minimize the material handling costs. Each department is 20 x 20 feet and the building is 60 feet long and 40 feet wide. building 1. Construct a “from-to matrix” 2. Determine the space requirements 3. Develop an initial schematic diagram 4. Determine the cost of this layout Determine 5. Try to improve the layout 5. 6. Prepare a detailed plan Prepare 9 – 44 Process Layout Example Number of loads per week Department Assembly Painting (1) (2) Assembly (1) Painting (2) Machine Shop (3) Receiving (4) Shipping (5) Testing (6) Figure 9.4 9 – 45 Machine Receiving Shop (3) (4) Shipping (5) Testing (6) 50 100 30 0 50 20 0 10 0 50 20 0 100 0 0 Process Layout Example Area 1 Area 2 Area 3 Assembly Department (1) Painting Department (2) Machine Shop Department (3) 40’ Receiving Department (4) Shipping Department (5) Testing Department (6) Figure 9.5 Area 4 Area 5 60’ Area 6 9 – 46 Process Layout Example Interdepartmental Flow Graph 100 1 50 20 2 10 30 20 3 100 50 4 50 5 Figure 9.6 6 9 – 47 Process Layout Example Cost = ∑ ∑ Xij Cij Cost i=1 j=1 n n Cost = Cost + + $50 + $200 + $40 (1 and 2) (1 and 3) (1 and 6) $30 + $50 + $10 (2 and 3) (2 and 4) (2 and 5) $40 + $100 + $50 (3 and 4) (3 and 6) (4 and 5) = $570 9 – 48 Process Layout Example Revised Interdepartmental Flow Graph 30 2 50 50 10 1 20 100 3 100 50 4 50 5 Figure 9.7 6 9 – 49 Process Layout Example Cost = ∑ ∑ Xij Cij Cost i=1 j=1 n n Cost = Cost + + $50 + $100 + $20 (1 and 2) (1 and 3) (1 and 6) $60 + $50 + $10 (2 and 3) (2 and 4) (2 and 5) $40 + $100 + $50 (3 and 4) (3 and 6) (4 and 5) = $480 9 – 50 Process Layout Example Area 1 Area 2 Area 3 Painting Department (2) Assembly Department (1) Machine Shop Department (3) 40’ Receiving Department (4) Shipping Department (5) Testing Department (6) Figure 9.8 Area 4 Area 5 60’ Area 6 9 – 51 Computer Software Graphical approach only works for Graphical small problems small Computer programs are available to Computer solve bigger problems solve CRAFT ALDEP CORELAP Factory Flow 9 – 52 CRAFT Example 1 1 2 3 4 5 6 A A D C F E PATTERN 2 3 4 5 A A D C F E A A D D F E A A D D F E B B D D F E 6 B B D D D D 1 2 3 4 5 6 1 D D D C A A PATTERN 2 3 4 5 D D D C A A D D D D A A D D E E A F B B E E A F 6 B B E F F F TOTAL COST 20,100 EST. COST REDUCTION ITERATION 0 .00 TOTAL COST 14,390 EST. COST REDUCTION ITERATION 3 70. Figure 9.9 9 – 53 (a) (b) Computer Software Three dimensional visualization software allows managers to view possible layouts and assess process, material handling, efficiency, and safety issues 9 – 54 Work Cells Reorganizes people and machines Reorganizes into groups to focus on single products or product groups products Group technology identifies Group products that have similar characteristics for particular cells characteristics Volume must justify cells Cells can be reconfigured as Cells designs or volume changes designs 9 – 55 Advantages of Work Cells 1. Reduced work-in-process inventory 2. Less floor space required 3. Reduced raw material and finished goods inventory 4. Reduced direct labor 5. Heightened sense of employee participation 6. Increased use of equipment and machinery 7. Reduced investment in machinery and equipment 9 – 56 Improving Layouts Using Improving Work Cells Work Current layout - workers in Current small closed areas. Cannot increase output without a third worker and third set of equipment. third Improved layout - cross-trained Improved workers can assist each other. May be able to add a third worker as additional output is needed. as Figure 9.10 (a) 9 – 57 Improving Layouts Using Improving Work Cells Work Current layout - straight Current lines make it hard to balance tasks because work may not be divided evenly be Improved layout - in U Improved shape, workers have better access. Four cross-trained workers were reduced. workers Figure 9.10 (b) U-shaped line may reduce employee movement and space requirements while enhancing communication, reducing the number of workers, and facilitating inspection 9 – 58 Requirements of Work Cells 1. Identification of families of Identification products products 2. A high level of training, flexibility high and empowerment of employees and 3. Being self-contained, with its own Being equipment and resources equipment 4. Test (poka-yoke) at each station in Test the cell the 9 – 59 Staffing and Balancing Staffing Work Cells Work Determine the takt time Total work time available Takt time = Units required Determine the number Determine of operators required of Total operation time required Workers required = Takt time 9 – 60 Staffing Work Cells Example 600 Mirrors per day required 600 Mirrors Mirror production scheduled for 8 hours per day Mirror From a work balance chart 60 From total operation time 50 = 140 seconds 140 40 Standard time required 30 20 10 0 Assemble Paint Test Operations Label Pack for shipment 9 – 61 Staffing Work Cells Example 600 Mirrors per day required 600 Mirrors Mirror production scheduled for 8 hours per day Mirror From a work balance chart From total operation time = 140 seconds 140 Takt time = (8 hrs x 60 mins) / 600 units (8 60 = .8 mins = 48 seconds .8 48 Total operation time required Workers required = Takt time = 140 / 48 = 2.91 9 – 62 Work Balance Charts Used for evaluating operation times in work cells Can help identify bottleneck operations Flexible, cross-trained employees can help address labor bottlenecks Machine bottlenecks may require other approaches 9 – 63 Focused Work Center and Focused Focused Factory Focused Focused Work Center Identify a large family of similar products Identify that have a large and stable demand that Moves production from a general-purpose, Moves process-oriented facility to a large work cell process-oriented Focused Factory A focused work cell in a separate facility May be focused by product line, layout, May quality, new product introduction, flexibility, or other requirements or 9 – 64 Focused Work Center and Focused Focused Factory Focused Work Cell A work cell is a temporary product-oriented arrangement of machines and personnel in what is ordinarily a processoriented facility. Focused Work Center Focused Factory A focused work center is a A focused factory is a permanent productpermanent facility to oriented arrangement of produce a product or machines and personnel component in a productin what is ordinarily a oriented facility. Many process-oriented facility. focused factories currently being built were originally part of a process-oriented facility. Example: A job shop with Example: Pipe bracket machinery and manufacturing at a personnel rearranged to shipyard. produce 300 unique control panels. Example: A plant to produce window mechanism for automobiles. Table 9.2 9 – 65 Repetitive and ProductOriented Layout Organized around products or families of Organized similar high-volume, low-variety products similar 1. Volume is adequate for high equipment Volume utilization utilization 2. Product demand is stable enough to justify high Product investment in specialized equipment investment 3. Product is standardized or approaching a phase Product of life cycle that justifies investment 4. Supplies of raw materials and components are 4. Supplies adequate and of uniform quality adequate 9 – 66 Product-Oriented Layouts Fabrication line Builds components on a series of machines Machine-paced Require mechanical or engineering changes Require to balance to Assembly line Puts fabricated parts together at a series of Puts workstations workstations Paced by work tasks Balanced by moving tasks Both types of lines must be balanced so that the Both time to perform the work at each station is the same time 9 – 67 Product-Oriented Layouts Advantages 1. 2. 3. 4. 5. Low variable cost per unit Low material handling costs Reduced work-in-process inventories Easier training and supervision Rapid throughput Disadvantages 1. High volume is required 2. Work stoppage at any point ties up the Work whole operation whole 3. Lack of flexibility in product or production Lack rates rates 9 – 68 McDonald’s Assembly Line Figure 9.12 9 – 69 Disassembly Lines • Disassembly is being considered in new product designs • “Green” issues and recycling standards are important consideration • Automotive disassembly is the 16th largest industry in the US 9 – 70 Assembly-Line Balancing Objective is to minimize the imbalance Objective between machines or personnel while meeting required output meeting Starts with the precedence Starts relationships relationships 1. Determine cycle time 2. Calculate theoretical Calculate minimum number of workstations workstations 3. Balance the line by Balance assigning specific tasks to workstations tasks 9 – 71 Wing Component Example Performance Task Must Follow Time Task Listed Task (minutes) Below A 10 — B 11 A C 5 B D 4 B E 12 A F 3 C, D G 7 F H 11 E I 3 G, H Total time 66 Total 66 This means that This tasks B and E cannot be done until task A has been completed been 9 – 72 Wing Component Example Performance Task Must Follow Time Task Listed Task (minutes) Below A 10 — B 11 A C 5 B D 4 B E 12 A F 3 C, D G 7 F 10 H 11 E A I 3 G, H Total time 66 Total 66 5 11 C 4 3 7 B 12 F 11 G 3 D I E H Figure 9.13 9 – 73 Wing Component Example 480 available Performance Task Must Follow mins per day Time Task Listed Task (minutes) Below 40 units required A 10 — B 11 A Production time C 5 B available per day Cycle time = Units required per day D 4 B E 12 A = 480 / 40 5 F 3 C, D = 12 minutes per unit C G 7 F 10 11 3 7 n H 11 E i B G = Minimum A i∑1Time for taskF I 3 G, H 4 3 number of = Cycle D time Total time 66 Total 66 workstations I 12 11 = 66 / 12 E H = 5.5 or 6 stations Figure 9.13 9 – 74 WingLine-Balancing Heuristics Component Example 1. Longest task time Choose the available task with 480 Performance Task Must Follow task time available the longest mins per day Time Task Listed Task Most following tasks Below 40 units required 2. (minutes) Choose the available task with the A 10 — largest number of following 2 mins Cycle time = 1 t B 11 Aasks Minimum C 3. Ranked positional 5 B workstations = 5.5 or 6 Choose the available task for D B hich the sum of following task weight 4 w E 12 Aimes is the longest t 5 F 3 C, D Choose the available task with C G 4. Shortest task time 7 F 10 11 3 7 the shortest task time H 11 E A B G F I 5. Least number of 3 G,Choose the available task with H 4 3 f the least number ofDfollowing Totalollowing tasks Total time 66 66 I 12 11 tasks E H Table 9.4 Figure 9.13 9 – 75 Wing Component Example 480 available Performance Task Must Follow mins per day Time Task Listed Task (minutes) Below 40 units required A 10 — Cycle time = 12 mins B 11 A Minimum Station 5B C 5 workstations = 5.5 or 6 2 CB D 4 11 3 7 E 10 12 A FA B 3 C, D F G 4 3 G 7 F D E Station 3 H 11 I I 3 G, H 12 11 Station 6 Station Total time 66 Total 66 E H 1 Station 4 Station 5 Figure 9.14 9 – 76 Wing Component Example 480 available Performance Task Must Follow mins per day Time Task Listed Task (minutes) Below 40 units required A 10 — Cycle time = 12 mins B 11 A Minimum C 5 B workstations = 5.5 or 6 D 4 B E 12 A F 3 C, D G 7 F ∑ Task times Efficiency = (Actual number of workstations) x (Largest cycle time) H 11 E I 3 G, H = 66 minutes / (6 stations) x (12 minutes) Total time 66 Total 66 = 91.7% 9 – 77 ...
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