Facility Location

Process Design and Facility Layout

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Introduction
Process selection
Deciding on the way production of goods or services will be organized

Major implications
Capacity planning Layout of facilities Equipment, Capital-equipment or labor intensive Design of work systems

New product and service, technological changes, and competitive pressures

Process Types
Job Shops: Small lots, low volume, general equipment, skilled workers, high-variety. Ex: tool and die shop, veterinarians office Batch Processing: Moderate volume and variety. Variety among batches but not inside. Ex : paint production , Repetitive/Assembly: Semi continuous , high volume of standardized items, limited variety. Ex: auto plants, cafeteria Continuous Processing: Very high volume , no variety. Ex: steel mill, chemical plants Projects: Non routine jobs. Ex: preparing metro rail
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Product Process Matrix

Dimension Job variety Process flexibility Unit cost Volume of output Job Shop Very High Very High Very High Very low Batch Moderate Moderate Moderate Low Repetitive Low Low Low High Continuous Very low Very low Very low Very high

Product Process Matrix

Process Type High variety Low variety

Job Shop

Appliance repair Emergency room Commercial bakery Classroom Lecture

Batch

Repetitive

Automotive assembly Automatic carwash

Continuous (flow)

Oil refinery Water purification

Automation: Machinery that has sensing

and control devices that enables it to operate
Fixed automation: Low production cost and high volume but with minimal variety and high changes cost
Assembly line

Programmable automation: Economically producing a wide variety of low volume products in small batches
Computer-aided design and manufacturing systems (CAD/CAM) Numerically controlled (NC) machines / CNC Industrial robots (arms)

Flexible automation: Require less changeover time and allow continuous operation of equipment and product variety
Manufacturing cell Flexible manufacturing systems: Use of high automation to achieve repetitive process efficiency with job shop process
Automated retrieval and storage Automated guided vehicles

Computer-integrated manufacturing (CIM)

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Robot

Show wafer_handler_web
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Flexible Manufacturing System

Group of machines that include supervisory computer control, automatic material handling, robots and other processing equipment
Advantage:

reduce labor costs and more consistent quality lower capital investment and higher flexibility than hard automation relative quick changeover time
Disadvantage

used for a family of products and require longer planning and development times

Computer-integrated manufacturing
Use integrating computer system to link a broad range of manufacturing activities, including engineering design, purchasing, order processing and production planning and control Advantage: rapid response to customer order and product change, reduce direct labor cost, high quality

Layout
Layout: the configuration of departments, work centers, and equipment,
Whose design involves particular emphasis on movement of work (customers or materials) through the system

Importance of layout
Requires substantial investments of money and effort Involves long-term commitments Has significant impact on cost and efficiency of shortterm operations

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The Need for Layout Decisions

Inefficient operations
For Example:

High Cost Bottlenecks

The introduction of new products or services

Changes in the design of products or services

Accidents

Safety hazards
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The Need for Layout Design (Contd)

Changes in environmental or other legal requirements Changes in volume of output or mix of products Morale problems Changes in methods and equipment

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Basic Layout Types

Product Layout

Process Layout

Layout that uses standardized processing operations to achieve smooth, rapid, high-volume flow Auto plants, cafeterias Layout that can handle varied processing requirements Tool and die shops, university departments Layout in which the product or project remains stationary, and workers, materials, and equipment are moved as needed Building projects, disabled patients at hospitals
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Fixed Position Layout

Combination Layouts

A Flow Line for Production or Service

Flow Shop or Assembly Line Work Flow

Raw materials or customer Material and/or labor

Station 1 Material and/or labor

Station 2 Material and/or labor

Station 3 Material and/or labor

Station 4

Finished item

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A U-Shaped Production Line

Advantage: more compact, increased communication facilitating team work, minimize the material handling
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Process Layout

Milling Assembly & Test Grinding

Drilling

Plating

Process Layout - work travels to dedicated process centers

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Layout types: Product or Process Make your pick

A B B A

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Process vs Layout types

Job Shop Project Repetitive
Match ?

Product Process Fixed-point

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Product layout
Advantages
High volume Low unit cost Low labor skill needed Low material handling High efficiency and utilization Simple routing and scheduling Simple to track and control Disadvantages
Lacks flexibility
Volume, design, mix

Boring for labor

Low motivation Low worker enrichment

Can not accommodate partial shut downs/breakdowns Individual incentive plans are not possible

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Cellular Layouts
Cellular Manufacturing
Layout in which machines are grouped into a cell that can process items that have similar processing requirements. A product layout is visible inside each cell.

Group Technology
The grouping into part families of items with similar design or manufacturing characteristics. Each cell is assigned a family for production. This limits the production variability inside cells, hence allowing for a product layout.

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A Group of Parts

Similar manufacturing characters

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Process Layout

222 444

Mill

Drill
1111 2222

22 22 2

222 111 444

3 33 33 33 33

222

Grind

3333

111

33 33 33

111 333

Assembly
111 444

4 44 44

333 Lathes

Heat treat

111

Gear cutting

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Cellular Manufacturing Layout

Heat treat Heat treat Heat treat Drill Gear -1111 cut Grind - 2222

-1111

Lathe

Mill

Drill

3333333333

Lathe

Mill

Grind - 3333 Gear - 4444 cut

44444444444444

Mill

Assembly
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222222222

Mill

Drill

Basic Layout Formats

Part Family W

Part Family X

Part Family Z

Assemble Y,W
Part Family Y

Assemble X,Z

Final Product

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Fixed-Position and combination Layout

Fixed-Position Layout: item being worked on remains stationary, and workers, materials and equipment are moved as needed.
Example: buildings, dams, power plants

Combination Layouts: combination of three pure types.

Example: hospital: process and fixed position.
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Location Decision Location decision requires when1.A new unit to be set up 2.Poor selection earliar 3.Change of govt. policy 4.Growth of business makes it advisable

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Location decision

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Techniques for location decision Quantitative

Centre of gravity model Median Model Brown and Gibson Model Dimensional Analysis

Qualitative

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