INTRODUCTION. LEVEL 1: Global site location. LEVEL 2: Supra-space plan

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1 INTRODUCTION RI-1504 Lecture Notes #1 Stefanus Eko Wiratno Departement of Industrial Engineering Sepuluh Nopember Institute of Technology (ITS) 2004 RI-1504/PF/SEW/2004/#1 1 Frame Work for Facilities Planning [Q. Lee, IIE Solution, 1997] Layout or space planning involves five levels - from the global maps of site location to engineering drawing tools and workstations Level 1: Global site location Level 2: Supra-space plan Level 3: Macro-space plan Level 4: Micro-space plan Level 5: Sub-micro-space plan RI-1504/PF/SEW/2004/#1 2 LEVEL 1: Global site location The firm decide where to locate facilities and determine their missions The most strategic impact Major considerations: labor rates, tax break, labor skill and attitudes, supporting services, politics,etc. Appropriate planning results in facilities optimized for the markets and located near the most important resources RI-1504/PF/SEW/2004/#1 3 RI-1504/PF/SEW/2004/#1 4 LEVEL 2: Supra-space plan Site planning, including number, size, location of buildings, as well as roads, water, gas, and rail Involve a series of drawing showing past, present and future configurations Planning still has long-term and far reaching consequences RI-1504/PF/SEW/2004/#1 5 RI-1504/PF/SEW/2004/#1 6 1

2 LEVEL 3: Macro-space plan A macro-layout, plans each building, structure, or sub-unit of the site The designers define and locate operating departments and determine overall material flow Easier to correct than site level decisions A poorly planned facility can bring high handling cost, confusion, and inflexibility RI-1504/PF/SEW/2004/#1 7 RI-1504/PF/SEW/2004/#1 8 Level 4: Micro-space plan Department or cell layout Location of specific equipment is determined Emphasis shifts from gross material flow to personal space and communication Socio-technical considerations dominate RI-1504/PF/SEW/2004/#1 9 RI-1504/PF/SEW/2004/#1 10 LEVEL 5: Sub-micro-space plan Workstation design Workstations are designed for efficiency, effectiveness, and safety Tools-jig and fixture Location of materials Appropriate material handling aids RI-1504/PF/SEW/2004/#1 11 RI-1504/PF/SEW/2004/#1 12 2

3 Facilities Planning [Tompkins, et.al. 2003] Facilities planning is a complex and broad subject that cuts across several specialized disciplines (civil, electrical, industrial, mechanical, etc) new hospital assembly department existing warehouse baggage department of an airport. Facilities planning determines how an activity s tangible fixed assets best support achieving the activity s objective. RI-1504/PF/SEW/2004/#1 13 Facilities Planning Hierarchy It is important to realize that the term facilities planning is not synonyms with facilities location, facilities design, facilities layout, or plant layout. Facilities Planning Facilities Location Facilities Design Facility System Design Layout Design Handling Systems Design RI-1504/PF/SEW/2004/#1 14 Facilities Location Facilities location - placement with respect to customer, suppliers, and other facilities with which it interfaces. Influences of Plant location : Proximity to raw material Markets Transportation systems Economic development programs (financial incentives) RI-1504/PF/SEW/2004/#1 15 Facilities Design Facilities design consists of the facility systems, the layout, and the handling system Facility system structural systems, the atmospheric systems, the enclosure system, the lighting/electrical/communication systems, the life safety system and the sanitation system. Layout consists of all equipment, machinery, and furnishings within the building envelope. Handling system consists of the mechanisms needed to satisfy the required facility interactions. Material handling is very important to the facility design activity. The choice of material handling equipment will greatly effect the appropriateness of the facility design. RI-1504/PF/SEW/2004/#1 16 Facilities Planning Facilities planning involves making strategic decisions concerning the tangible fixed assets used in the production process. The difference in the planning horizon for each of the different levels of analysis used in the production process listed in Table 1.1. Table 1.1: Planning Horizon Associated with Production Analysis Planning Horizon Months-Years Months-Years Weeks-Months Hours-Weeks Minutes-Hours Seconds-Minutes Level of Analysis Facilities Planning Product Design and Process Planning Production Planning Production control Quality control Machine-level real-time control RI-1504/PF/SEW/2004/#1 17 RI-1504/PF/SEW/2004/#1 18 3

4 Motivation Behind Facility Planning 1. One of the most effective methods for increasing plant productivity and reducing cost is to reduce or eliminate all activities that are unnecessary or wasteful. A facilities design should accomplish this goal in terms of material handling, personnel and equipment utilization, reduced inventories, and increased quality. 2. Employee health and safety 3. Energy conservation 4. Community considerations, fire protection, security, and the ADA of 1989 RI-1504/PF/SEW/2004/#1 19 Objectives of Facilities Planning Improve customer satisfaction by being easy to do business with, conforming to customer promises, and responding to customer needs. Increase return on assets (ROA) by maximizing inventory turns, minimizing obsolete inventory, maximizing employee participation, and maximizing continuous improvement. Maximize speed for quick customer response. Reduced costs and grow the supply chain profitability Integrate the supply chain through partnership and communication. RI-1504/PF/SEW/2004/#1 20 Objectives of Facilities Planning Support the organization s vision through improved material handling, material control, and good housekeeping. Effectively utilize people, equipment, space, and energy. Maximize return on investment (ROI) on all capital expenditures Be adaptable and promote ease of maintenance. Provide for employee safety and job satisfaction. Provide flexibility to adapt to changing conditions Significance of Facility Design Material handling costs: 30-75% of a product s cost (Sule 1991) 20-50% of a manufacturing company s operating budget (Tompkins & White, 1994) Optimal Layout Design can reduce production costs RI-1504/PF/SEW/2004/#1 21 RI-1504/PF/SEW/2004/#1 22 Facilities Planning Process By applying the engineering design approach, a systematic approach can be developed Define the problem Define (or redefine) the objective of the facility Specify the primary and support activities to be performed in accomplishing the objective Analyze the problem Determine the interrelationships among all activities Determine the space requirements for all activities Generate alternative facilities plans RI-1504/PF/SEW/2004/#1 23 Facilities Planning Process Evaluate the alternatives Evaluate alternative facilities plans Select the preferred design Select a facilities plan Implement the design Implement the facilities plan Maintain and adapt the facilities plan Redefine the objective of the facility RI-1504/PF/SEW/2004/#1 24 4

5 Developing Facilities Planning Strategies Product development and design decisions Processing & Material Requirements Layout & Material Handling Production Planning & Inventory Control Human Resources & Finance Size & Design # & Location Space & Flow Storage, movement, protection & control of material RI-1504/PF/SEW/2004/#1 25 Sources of Information For Manufacturing Facilities Design All the information that is used must come from different sources. The larger the company is, the less data actually produced by the facility designer. Some companies have several sub-departments within manufacturing/industrial engineering. But, in smaller organizations you are responsible for producing the information. RI-1504/PF/SEW/2004/#1 26 Sources Of Information For Manufacturing Facilities Design Marketing Product design Management policy Marketing Selling price Volume, how many can we sell? Seasonality, summer or winter product Replacement parts, older products RI-1504/PF/SEW/2004/#1 27 RI-1504/PF/SEW/2004/#1 28 Product Design Product design blueprints bill of material (part list) indented BOM buyouts/fabricate assembly drawings Part and assembly drawings are especially helpful in visualization of how parts will fit together model shop samples (prototypes) Relationship between FD and product design is important RI-1504/PF/SEW/2004/#1 29 Management Policy Management policy - refers to the upper-level employees inventory policy (Just in Time, Kanban, WIP) lean thinking investment policy (ROI) startup schedule make or buy decision (new or old facility, capital investment, and mission) feasibility studies (what product or process proposal is the most profitable for the company RI-1504/PF/SEW/2004/#1 30 5

6 Types of Layout Problems Service systems layout problems Manufacturing layout problems Warehouse layout problems Nontraditional layout problems RI-1504/PF/SEW/2004/#1 31 Service Systems Layout Problems Examples: layouts of the tables, kitchen, and cocktail lounge in licensed restaurant; an insurance office; runway at an airport; emergency facilities in a hospital and town; public library To develop service systems layout, designers must know the number of entities or facilities that are to be located, the area that will likely be occupied by each, the interaction between facilities, and special layout restrictions for any facility or pair of facilities General office structures: 1) Closed, 2) Semiclosed, 3) Open, and 4) Semiopen RI-1504/PF/SEW/2004/#1 32 Service Systems Layout Problems Service Systems Layout Problems RI-1504/PF/SEW/2004/#1 33 RI-1504/PF/SEW/2004/#1 34 Manufacturing layout problems Layout design is an important task when a manufacturing systems is redesign, expanded, or designed for the first time The layout problems involves determining the location of machines, workstations, rest areas, inspection stations, clean rooms, heat treatment station, supervisor or manager offices, tool cribs, and other facilities to achieve these five objectives: Minimize cost of transportation between facilities Manufacturing layout problems Minimize cost of transportation between facilities Facilitate the traffic flow Increase employee morale Minimize the risk of injury to personnel and damage to property Provide for supervision and face-to-face communication RI-1504/PF/SEW/2004/#1 35 RI-1504/PF/SEW/2004/#1 36 6

7 Manufacturing layout problems RI-1504/PF/SEW/2004/#1 37 Warehouse layout problems A good warehouse layout should use available storage space effectively to minimize storage and material handling cost Some factors to be considered in warehouse design are shape and size of aisles, height of the warehouse, location and orientation of the docking area, types of racks to be used for storages, and the level of automation involved in the storage and retrieval of commodities RI-1504/PF/SEW/2004/#1 38 Warehouse layout problems RI-1504/PF/SEW/2004/#1 39 Nontraditional layout problems The ability to design and operate manufacturing facilities that can quickly and effectively adapt to changing technological and market requirements is becoming increasingly important to the success of any manufacturing. organization Manufacturing facilities must be able to exhibit high levels of flexibility and robustness despite significant changes in their operating requirements. RI-1504/PF/SEW/2004/#1 40 Nontraditional layout problems Nontraditional layout problems Due to the large variety of parts usually produced in jobshops, none of traditional layouts by itself provides a satisfactory layout solution. Examples: Dynamic Layout, Flexible Layout RI-1504/PF/SEW/2004/#1 41 RI-1504/PF/SEW/2004/#1 42 7

8 Nontraditional layout problems Classification of Traditional and Non traditional Layout. RI-1504/PF/SEW/2004/#1 43 RI-1504/PF/ 44 Types of Facility Layouts Project Product Responsibility Networks Parts (Components) Remanufacturing A A Plant T Plant V Plant Combination of V, A, and/or T Plant Types of Manufacturing Focus A single product A family of products Products ordered by a single customer Products ordered by many customer (MTO) Prototypes B Linked Cells A Assembly Line Focused Factories/ Plants within Plants (PWP) Product-based Cells Point of Use Modular Multi-Channel Manufacturing RI-1504/PF/ sew@2004/#1 45 RI-1504/PF/ sew@2004/#1 46 B C Types of Manufacturing Focus Single part Family of parts with similar raw material properties Family of parts with similar geometry Family of parts with similar routings Family of parts with common tools and fixtures Dissimilar parts that can be produced in a flexible cell Identical parts in a range of sizes Rework Spare parts C Fractal Cells Hybrid Cellular Layouts Functional Layout Distributed Layout Modular Layout Holonic Layout Virtual Cells D Transfer Line Flowline Layout Cascading Flowlines Cellular Layout* Holographic Layout Classification of Flowlines * Each cell is dedicated to a part family RI-1504/PF/ sew@2004/#1 47 RI-1504/PF/ sew@2004/#1 48 8

9 D Robust Layouts suitable for Multiple Product Mixes and/or Production Periods Robust/Flexible Layout Reconfigurable/Dynamic Layout RI-1504/PF/ 49 RI-1504/PF/ 50 9

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