INTI COLLEGE MALAYSIA

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1 EGR 285 (F) / Page 1 of 7 INTI COLLEGE MALAYSIA DIPLOMA IN INDUSTRIAL ENGINEERING PROGRAMME EGR285: MATERIAL HANDLING & FACILITY LAYOUT FINAL EXAMINATION: AUGUST 2002 SESSION This paper consists of SEVEN (7) questions. Answer any FIVE (5) questions in the answer booklet provided. All questions carry equal marks. 1. a) Define the learning curve theory and state the concepts of learning curve. b) Briefly explain the useful applications of learning curve. c) Explain how changes in a process, once it is underway, can cause scallops in a learning curve. d) Dynamo Manufacturing Company manufactures optical scanning and sorting equipment. This year Dynamo introduced a new product, the Dyno V scanner. It manufactured and sold 400 of these scanners during the year. Dynamo collected data in the production hours for each 100 scanners made (Dynamo uses 100 scanners as its unit of measure); this information is given in the table below. It cost Dynamo $250,000 per year to keep the production line operating (fixed cost), plus $2,250 per scanner for materials and $20 per person-hours for variable labor expense. Person-Hr of Labor First 100 scanners 71,000 Second 100 scanners 60,200 Third 100 scanners 54,950 Fourth 100 scanners 51,900 i) Estimate the approximate learning rate based on 100 scanners as one unit of production. Dynamo sold the 400 scanners this year at a price of $12,500 per scanner. Compute Dynamo s total net profit (or loss) on the Dyno V scanner this year.

2 EGR 285 (F) / Page 2 of 7 i Dynamo must decide whether or not to keep producing the Dyno V. Because of competitive pressures, Dynamo does not believe it can raise its price for the scanner, but believes that it can sell 600 scanners more next year at $12,500 each. Compute Dynamo s expected profit next year, assuming that it can sell 600 scanners and assuming that the material cost per scanner, labor cost per person-hour and fixed cost per year stay the same as they are this year. Should Dynamo keep producing Dyno V scanners next year? 2. a) i) Why might practicing managers and industrial engineers be skeptical about job enrichment and sociotechnical approaches to job design? What is job design, and why is it important? i iv) Define job environment, job simplification, job enlargement and job enrichment. Define automation and give the advantages and limitations of it. b) Define material handling and material handling system. State the main principle in designing the material handling system. c) Explain any five material handling principles. d) Briefly describe the scope of material handling system. (2.5 marks) e) Explain the important factors in selecting the material handling equipments. (2.5 marks)

3 EGR 285 (F) / Page 3 of 7 3. a) What are the three factors that complicate a fixed-position layout? b) What is the objective of assembly line balancing? How would you deal with the situation where one worker, although trying hard, is 20 percent slower than the other 10 people on a line? c) How do you determine the idle-time percentage from a given assembly line balance? d) An assembly line is to be designed to operate hours per day and supply a steady demand of 300 units per day. Here are the tasks and their performance times: Task Preceding Tasks Time (seconds) a - 70 b - 40 c - 45 d a 10 e b 30 f c 20 g d 60 h e 50 i f 15 j g 25 k h,i 20 l j,k 25 i) Draw the precedence diagram. What is the workstation cycle time? i iv) What is the theoretical minimum number of workstations? Assign tasks to workstations using the longest operating time. v) What is the efficiency of your balance line?

4 EGR 285 (F) / Page 4 of 7 vi) Suppose demand increases by 10 percent. How would you react to this? 4. a) List factors which might attract companies to relocate their plants from one town to another b) How do facility location decisions differ for service facilities and manufacturing plants? c) List those factors, other than globalization, that affect the location decision. d) A chain of home health care firms in Louisiana needs to locate a central office from which to conduct internal audits and other periodic reviews of its facilities. These facilities are scattered throughout the state, as detailed in the table below. Each site, except for Houma, will be visited three times each year by a team of workers, who will drive from the central office to the site. Houma will be visited five times a year. What coordinates represent the distance-minimizing central location for this office? What other factors might influence the office location decision? Where would you place this office? Explain. Map Coordinates City X Y Covington Donaldsonville Houma Monroe Natchitoches New Iberia Opelousas Ruston (8 marks) 5. a) List some common reasons for redesigning layouts.

5 EGR 285 (F) / Page 5 of 7 b) Briefly describe the main layout types? c) What are the main advantages and disadvantages of product layout and process layout? d) Name some ways that a layout can hinder or help productivity. e) Consider the layout of five departments. The material flow is given below. i) Develop a block layout design using SLP Develop a block layout design using Relationship Diagramming. A B C D E A (200 x 200) B (300 x 400) C (300 x 100) D (200 x 200) E (100 x 100) a) Many factors can cause task times to vary. Describe briefly the more common reasons for causes of production randomness. (7 marks) b) Describe briefly about the conveyors. c) How material Transport equipment types are distinguished from one another? d) Briefly describe the following types of material handling equipment:

6 EGR 285 (F) / Page 6 of 7 i. Straddle truck ii. Forklift iii. Belt conveyor iv. Side shifter v. Screw conveyor 7. a) What is cellular manufacturing? What are its main benefits and limitations? b) Describe briefly the three factors of staffing job design and technological improvement. (6 marks) c) Eight work centers must be arranged in a L-shaped building. The locations of centers 1 and 3 are assigned as shown in the accompanying diagram. Assuming transportation costs are $ 5 per load per meter, develop a suitable layout that minimizes transportation costs using the given information. Compute the total cost. Justify your answer with another arrangement. A 1 B C D E 3 F G H DISTANCE (METERS)

7 EGR 285 (F) / Page 7 of 7 From / To A B C D E F G H A B C D E F G - 40 H - LOADS PER DAY From / To (9 marks) -The End- EGR285AUG 02F/Christy