Industrial Facility Design & Layout Planning

Facility Planning & Design - Industrial Facility By Madan Karki

Facilities & Operations Organization Facilities and Operations Architecture, Public Safety & Parking & Engineering & Security Transportation Construction Services Plant Operations Occupational Safety & -Facilities Maintenance Environmental Health -Plant Building Services -Construction Services -Utilities and Plant Engineering -Grounds and Waste Management 1

Facility Planning & Design Facilities Location Facilities Planning Facilities Design Facilities Handling Layout Systems Systems Design Design Design

Facility Planning The facilities planning approach builds on the pioneering work of Richard Muther & Knut Haganas, both of whom developed systematic layout planning (SLP) and systematic handling analysis (SHA). The figure depicts the interaction of facilities, organization, products, and processes. The understanding, design, & development of these varied elements into a functioning business system are referred to in various terms. Among these are: •manufacturing strategy, •corporate reengineering & •business architecture. Strategic Relationship

Facility Planning • A plant layout is the physical manifestation of the firm's manufacturing strategy. • During the Industrial Revolution, power sources and the movement of raw materials determined facility design. • In twentieth century, the progress of mass-production technology required facilities that optimized material flow. • In the second half of this century, information and knowledge began to dominate industrial production. • Engineers now have their desks in the manufacturing plant & not in the office. High-tech manufacturing operations demand more cleanliness than the offices. So, facilities must be open with few walls and barriers. • Layout is an integral part of reengineering and restructuring. Meaningful restructuring requires corresponding changes in the layout. Many symptoms of inappropriate business architecture appear as layout or material handling issues.

Manufacturing Facility

Socio-Technical System Socio-technical systems have always existed, although few managers recognized the phenomenon until recently. The social system includes people & their habitual attitudes, values, behavioral styles & relationships. The technical system includes machinery, processes, procedures, & their physical arrangement (layout). To be effective, the social and technical systems must integrate & assist one another. Facility planning plays a major role in this integration.

Approach to Facility Planning

Approach to Facility Planning There are many approaches to facility planning - highly organized to ad hoc. Examples are: 1. Experiential - based on what worked & what did not work in the past, planning by experience is usually unorganized. 2. Master building - Focused on construction & buildings - often impressive & sometimes a work of art, but it may not fit the operational needs of the enterprise. Using a building to display financial strength, technological prowess, or artistic accomplishment is a legitimate form of advertising. 3. Cloning - simply duplicates an existing facility or portion of it. If the existing facility is proven & if the conditions are same, this type works well. McDonald's uses cloning to build its hamburger "factories" throughout the world. But, cloning has limited use if sites, processes & people are different.

Approach to Facility Planning 4. Bottom-up: it starts with the details – How many & which machines? How many people? then departmental units & eventually, the overall facility plan are built. It is a good approach if the details are known, if there is time, and if the details will not change. Such conditions are often met for smaller facilities in stable environments. It does not lend itself to new operations strategies. Because all details have to be worked out before final design & construction, construction lead times are often too long. On large projects, the details become so overwhelming it is often difficult to maintain schedules. 5. Systematic layout planning (SLP) – It uses procedures, conventions & phases. It helps layout planners know what to do at each step of a project. This provides layout planning with system & structure, saving time & effort. However, many layouts created with systematic methodology are simply better versions of what went before. The primary concern is how to arrange blocks of space. A more fundamental issue is what blocks of space should be arranged.

Process Selection  Process selection and capacity planning influence system design  Capital intensity  Process flexibility 10

A.Technology  Refers to applications of scientific discoveries to the development and improvement of goods and services and/or the processes that produce or provide them.  3 kinds of technology (impact on costs, productivity & competitiveness): I. Product & service technology is the discovery and development of new products and services. II. Process technology includes methods, procedures, and equipment used to produce goods and provide services. III. Information technology (IT) is the science and use of computers and other electronic equipment to store, process, and send information.  Technology as a Competitive Advantage  Technoly Acquisition 11

B. Process Selection  How much variety in products or services will the system need to handle?  What degree of equipment flexibility will be needed?  What is the expected volume of output?  Process Types: 1. Job Shop 2. Batch 3. Repetitive 4. Continuous 5. Project 12

1. Job Shop a. Relatively small scale b. Low volume of high-variety goods or services c. Processing is intermittent d. High flexibility of equipment  Manufacturing example: A tool and die shop that is able to produce one-of-a-kind tools.  Service example: A veterinarian‟s office, which is able to process a variety of animals and a variety of injuries and diseases. 13

2. Batch a. Moderate volume of moderate variety products or services. b. The equipment need not be as flexible as in a job shop, but processing is still intermittent. c. The skill level of workers doesn‟t need to be as high as in a job shop because there is less variety in the jobs being processed.  Manufacturing example: Bakeries, which make bread, cakes, or cookies in batches  Service example: Movie theaters, which show movies to groups (batches) of people, and airlines, which carry planeloads (batches) of people from airport to airport. 14

3. Repetitive a. Higher volumes of more standardized goods or services b. Slight flexibility of equipment c. Skill of workers is generally low.  Manufacturing example: Automobiles, television sets, pencils, and computers.  Service example: Automatic carwash, cafeteria lines and ticket collectors at sports events and concerts. 15

4. Continuous a. Very high volume of nondiscrete, highly standardized output is desired b. No variety in output c. No need for equipment flexibility.  Manufacturing example: Petroleum products, steel, sugar, flour, and salt.  Service example: Air monitoring, supplying electricity to homes and businesses, and the Internet. 16

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5. Project a. Nonroutine work b. Unique set of objectives c. Limited time frame d. Equipment flexibility and worker skills can range from low to high.  Example: Consulting, making a motion picture, launching a new product or service, publishing a book, building a dam, and building a bridge. 19

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Product and Service Profiling  Product or service profiling can be used to avoid any inconsistencies by identifying key product or service dimensions & then selecting appropriate processes.  Key dimensions often relate to the range of products or services that will be processed, expected order sizes, pricing strategies, expected frequency of schedule changes, and order-winning requirements. 21

Automation  Automation is machine that has sensing & control devices that enable it to operate automatically.  Advantages over human labor:  Machines do not get bored or distracted, nor do they go out on strike, ask for higher wages, or file labor grievances.  Reduction of variable costs.  Fixed automation  Programmable automation  Flexible automation 22

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 Computer-aided manufacturing (CAM) refers to the use of computers in process control, ranging from robots to automated quality control.  Numerically controlled (N/C) machines are programmed to follow a set of processing instructions based on mathematical relationships that tell the machine the details of the operations to be performed.  Individual machines may have their own computer; this is referred to as computerized numerical control (CNC). Or one computer may control a number of N/C machines, which is referred to as direct numerical control (DNC). 24

Systematic Layout Planning Muther (1961) 0 - Data Collection 1 Flow 2 Activities Analysis 3 Relationship 4 Space diagram 5 Space requirements available 6 Space relationship diagram Search 7 Reasons to 8 Restrictions modify 9 Layout alternatives Selection 10 Evaluation

Systematic Layout Planning Muther (1961) 0 Data gathering 1 Flow 2 Activities Analysis 3 Relationship 4 Space diagram 5 Space requirements available 6a Space relationship diagram 6b Analytical analyses Search 7 Reasons to 8 Restrictions modify 9 Layout alternatives Selection 10 Evaluate & Select

Approach to Facility Planning 6. Strategic - The strategic approach is top-down. It sets policy first & arranges the technology, organization & facilities to support it. Starting with business & corporate strategy such as global site location, it moves to operations strategy & finishes with details like locations of equipment & furniture. A strategic approach is direct & has purpose. It allows everyone involved in the project to follow a common direction. 7. FacPlan - The FacPlan method combines the best of various approaches. It has system & structure and adds strategic dimension. It taps into the experience & knowledge of those who use the facilities. It can work from detail to general & vice versa when appropriate. FacPlan uses a hierarchy of detail levels. It focuses on strategic issues at the appropriate time and minutiae at the appropriate time, using a model project plan to guide & structure each project. Procedural flow charts guide the planner through each task & assist with decision-making. Charts, forms, & design aids contribute to the organization of information.

Fundamentals of Planning  Planning is a fundamental skill required by all managers  Planning involves a significant amount of time and effort  Planning forms a base for short-term needs and long-term vision

Fundamentals of Planning  Planning – a process of determining the appropriate allocation of precious resources to ensure facility success. Through A group of people (a Authoritarian technique (one gang in a room – man on a mountain – OMOM) AGIR)

OMOM (One man on a mountain)  One person decides everything Types of Facility Planning  Planning for existing facilities  What events and when  Planning for future facilities  If and when to build

Space Management  Growth needs (proper allocation of time and space for bookings)  Move management (to free up space)  Swing space (any space available during renovations, alterations, or realignment)  Growth space

Planning for Future Facilities  Where, what, how to build  To meet greatest current needs  To anticipate future needs  To cause the least amount of financial harm or inconvenience

Planning Process  The first step is to analyze existing internal and external constituents  Steps:  Conduct a feasibility study  Develop a potential budget  Organize various planning committees  Set realistic goals and objectives  Study political and financial marketplace  Bring in the right people before the project starts

Needs Assessment  Internal demand (future facility users, industry-driven needs)  Market assessment needs (facility standards, survey results, local competition)  Demographics (age, nationality, gender, religion, race)

Feasibility Studies  Two phases  Preliminary phase: preliminary  Study Size and Comprehensiveness  Cost and Time Required  Expanded Phase  Economic Impact Others Plans  Developing and Selling the Future Plan  Developing a Business Plan for a Facility

Site Planning  Analysis of legal and government concerns  Selection of building site location  Technical decision criteria include soil and geographical characteristics, codes & covenants, easements, setbacks & sideyards, green requirements, utility corridors, transportation access, resource & effluent flow  Political decision criteria include tax breaks, incentives, public opinion, management opinion

Site Planning  Codes & Covenants – Rules & restrictions on the use of one‟s land. May regulate hours of operation, size of building, architectural façade, types of materials that may be stored or used, and many other restrictions.  Easement - A right, such as a right of way, afforded a person to make limited use of another's real property  Transportation Access – Area allowed for flow of vehicles in to, out of, and on the property. Considerations include highway access, rail access, road width, truck aprons, truck yards, employee parking, and security restrictions.

Site Planning  Green space Requirements - Requirements imposed by communities to require land owners to leave/return land to natural environment  Utility Corridors – Land, usually an easement, set aside on one‟s own and others‟ property for the location of utility lines. These may be granted by the community or purchased by the end user.

Site Planning  Resource & Effluent Flow – The way resources are brought into the site and the way waste products are removed from the site. Major considerations are:  NPDES restrictions  Landfill availability  Clean Air requirements  Political Criteria Caveat – Incentives granted today may disappear in the future and public opinion can change quickly; therefore, political criteria must be approached very cautiously.

Financing the Facility  Decide whether to purchase, build, or lease.  Analysis of the cost of capital, lease terms, purchase price, the cost and political issues associated with borrowing money/leasing.  The Planning process entails….  examining what type of facility will meet a given need/objective and working out the justification for building or leasing.  determining what facility to build or lease and to justify the need for the facility

Facilities Master Planning  A/E perspective  The importance of stakeholders  How a FMP relates to local jurisdictions and the Growth Management Act  Physical plant and facilities management perspective for planning  Nuts and bolts of creating a good FMP  Sharing ideas, best practices and questions 41

Nuts and bolts of creating a good FMP  Why do we have a Facility Master Plan?  How to start the process  Timeline  What should be in the final product?  How to make the plan used and useful  The importance of updating the FMP  How the FMP relates to the Strategic Plan and other planning documents  What should be included in the Master Plan? 42

Why do we have a Facility Master Plan?  No surprises  Improve the relationship between programs and services  Set an overall image for the college  Establish priorities on how one spends scarce resources  Look ahead and anticipate needs for growth  Plan for disruption and mitigate impacts 43

How to start the process  A/E Selection Process – Request for qualifications  Test the water – see how others established their programs  Know your college needs and select the most qualified architect  New construction on a growing campus  Adaptive reuse of existing structures  Redevelopment and replacement  Start with a vision and integrate with the college strategic plan 44

How to start the process (cont’d)  Build an oversight committee (6-8 people)  Build a larger, more comprehensive committee to provide detail and feedback  Establish a communication network to schedule, plan sessions and post minutes and master plan drafts  Involve, communicate, set priorities and build consensus 45

Timeline  Major update every 6 to 10 years  Review the plan each biennium, starting with a review of the strategic plan and evaluation of existing programs  Review community needs based on active discussions with local businesses and the Chamber of Commerce  Involve the community in all meetings, especially if boundaries are being redrawn or traffic patterns will be affected 46

What should be in the final product?  Understanding the dynamics of enrollment  Anticipating needs – programs and services  Planning for capital construction  Relocation of programs (renovation)  Construction requirements, safety and phasing  College priorities and timing  Discussion of potential partnerships – matching funds, 2+2, Public Facilities Districts, etc. 47

How to make the plan useful  Keep the master plan current  Insert critical information  Identify changes in jurisdiction  Update utility issues  Recognize status of capital resources  Identify areas that require further study or attention  An engineering study or cost analysis may change a renovation to a replacement  Program mix changes may drive new demands  Reassessment of programs and priorities 48

How to make the plan used and useful  Include the 10-year capital plan summary  Include a copy of the latest Facility Condition Survey  Put the plan in a 3-ring binder and expect changes  Use the FMP as the framework for decision making 49

The importance of updating the FMP  New opportunities  Local initiatives  Student funded Certificates of Participation (COP) projects  College Foundation initiative  Co-location opportunities with four-year partners  Combining appropriation into a more comprehensive building  Changes in traffic patterns driven by local jurisdictions 50

The importance of updating the FMP  Turnover of administration, faculty and staff  Major changes in the community  Major corporate announcements  Changes in demographics  Significant changes in the regulatory environment  Increased competition for students  Changes in baccalaureate delivery 51

How the FMP relates to other planning documents  The key is that it relates to everything and it makes sense  It is a needs-based document  It reflects the character and direction of the college  It is the basis for initiating every capital request  It is the map to the future 52

What should be included in the Master Plan?  Executive Summary  Vision  Mission  Overview  Major Goals  Address the functional adequacy of existing plant  Accommodates growth – utilization, condition, space allocation  Defines the learning environment  Accommodates changing technology  Provides design guidelines – campus standards  Addresses safety concerns  Discusses maintenance efficiency (sustainability) 53

What should be included in the Master Plan  Strategic direction  Immediate needs – 3 to 6 years  Long range needs – 6 to 10 years  Comprehensive plan – 10 to 20 years  Setting boundaries  Planning for flexibility  Maintain sense of campus  Implementation plan  Time phased based on biennial requests  Identify fund sources and potential partnerships  Establish intermediate goals (self-financed activities)  Engineering studies (seismic, structural, infrastructural, etc.)  Predesign and design leading to COP‟s  Predesign to better understand options 54

“Whether a new campus or old, each institution deserves to be shaped by a plan that is responsive to its own realities, marked with its own distinctions, and guided by concepts that are as workable as they are attractive.” Richard P. Dober – Campus Design 1991 55

Facility Design  The organization of the company‟s physical facilities to promote the efficient use of the company‟s resources such as people, equipment, material, and energy.  It includes siting, building design, plant layout, & material handling selection.

Facility Design Affects Productivity  Factors that affect productivity are:  Technology  Management  Quality  Capital  How does the design affect each of these factors?

Importance of Proper Facility Design  Layout  The physical arrangement of production machines and equipment, workstations, people, location of materials of all kinds and in all stages, and material handling equipment.

Importance of Proper Facility Design  Material Handling  Material Handling is the movement, storage, control and protection of materials, goods and products throughout the process of manufacturing, distribution, consumption and disposal. The focus is on the methods, mechanical equipment, systems and related controls used to achieve these functions.

Importance of Proper Facility Design  Material Handling  Improving material flow, shortening the time spent in transit, automatically reduces costs  Material handling accounts for 40% - 80% of operating costs  Improving material flow reduces many accidents  Material handling accounts for 50% of all industrial injuries

Problem Solving & Design Tools  Cost Reduction Formula: Ask… For Every… So We Can… Why Operation Eliminate Steps Who Transportation Combine Steps What Inspection Change the Sequence of Steps Where Storage Simply the Process When Delay How

Problem Solving & Design Tools  Five Why’s to Root Cause Discovery  Formulate a good Problem Statement  Use data where possible, fully describe the current condition, indicate the gap from the correct condition  Continue asking why until a good solution is evident

Lean Thinking  Lean Manufacturing is a systematic approach to identifying and eliminating waste (non-value-added activities) through continuous improvement by flowing the product at the pull of the customer in pursuit of perfection. Focus on eliminating Muda

Green Design Requirements (Guiding Principles from MOU) I. Employ Integrated Design Principles II. Optimize Energy Performance III. Protect and Conserve Water IV. Enhance Indoor Environmental Quality (IEQ) V. Reduce Environmental Impact of Materials VI. Conformance with Local Environmental Requirements 64

I. Employ Integrated Design Principles A. Use collaborative, integrated design process in all stages (IPT) B. Establish performance goals C. Consider all stages of building life cycle including deconstruction D. Use total building commissioning practices to verify performance 65

II. Optimize Energy Performance Energy Efficiency A. Establish whole building performance target. B. Reduce energy cost budget by 30% compared with baseline rating per ASHRAE and IESNA standards. C. For renovations, reduce energy cost budget by 20% below pre-renovation Measurement and Verification A. Install building level utility meters B. Track and optimize actual performance data from first year against targets C. Enter data and lessons learned in database 66

III. Protect and Conserve Water A. Indoor water – employ strategies to reduce potable water use by 20% over calculated baseline for bldg. B. Outdoor water – use water efficient landscaping, recycle water, reduce storm water runoff and pollution. 67

IV. Enhance Indoor Environmental Quality (IEQ) A. Ventilation and Thermal Comfort – meet ASHRAE Std. 55-2004 B. Moisture Control – establish control strategy C. Daylighting – achieve specified daylight factor D. Specify low-emitting materials E. Protect indoor air quality during construction – follow recommendations of SMACC Indoor Air Quality Guidelines for Occupied Buildings Under Construction AND minimum 72-hour flush out after. 68

V. Reduce Environmental Impact of Materials A. Meet or exceed EPA recycled content recommendations http://www.epa.gov/cpg/index.htm B. Meet or exceed USDA biobased content recommendations http://ofee.gov/gp/bioprod.asp C. Increase recycling of construction waste D. Eliminate use of ozone depleting chemicals 69

VI. Conformance with Local Environmental Requirements  National Environmental Policy Act (NEPA) - design in compliance with process  Other Applicable Environmental Regulations – design/construction in compliance  Environmental Baseline Survey -Identifies Contamination concerns  Environmental Management System – Meets established goals from local EMS  Asset Management Planning - design in compliance with plan 70

Facility Layout: Manufacturing  Facility layout means planning:  for the location of all machines, utilities, employee workstations, customer service areas, material storage areas, aisles, restrooms, lunchrooms, internal walls, offices, and computer rooms  for the flow patterns of materials and people around, into, and within buildings  infrastructure services such as the delivery of line communications, energy, and water and the removal of waste water all make up basic utilities.

Locate All Areas In & Around Buildings  Equipment  Work stations  Material storage  Rest/break areas  Utilities  Eating areas  Aisles  Offices

Characteristics of the Facility Layout Decision  Location of these various areas impacts the flow through the system.  The layout can affect productivity and costs generated by the system.  Layout alternatives are limited by  the amount and type of space required for the various areas  the amount and type of space available  the operations strategy  . . . more

Characteristics of the Facility Layout Decision  Layout decisions tend to be:  Infrequent  Expensive to implement  Studied and evaluated extensively  Long-term commitments

Objectives of the Layout Strategy Develop an economical layout which will meet the requirements of:  product design and volume (product strategy)  Process equipment and capacity (process strategy)  quality of work life (human resource strategy)  building and site constraints (location strategy)

Requirements of a Good Layout A good layout requires:  an understanding of capacity & space requirements  selection of appropriate material handling equipment  decisions regarding environment and aesthetics  identification and understanding of the requirements for information flow  identification of the cost of moving between the various work areas

Inputs to the Layout Decision 1. Specification of objectives of the system in terms of output and flexibility. 2. Estimation of product or service demand on the system. 3. Processing requirements in terms of number of operations and amount of flow between departments and work centers. 4. Space requirements for the elements in the layout. 5. Space availability within the facility itself.

Facility Design  Facility layout: Arrangement of machines, storage areas, and/or work areas usually within the confines of a physical structure, such as a retail store, an office, a warehouse, or a manufacturing facility.  Factors that influence layout  Volume, weight of items to be produced.  Nature of the service to be provided.  Cost of the building to house the operation.  The product mix that must have a facility.  The fragility of the product or component. 78

A Good Layout ...  Reduces bottlenecks in moving people or material.  Minimizes materials-handling costs.  Reduces hazards to personnel.  Utilizes labor efficiently.  Increases morale.  Utilizes available space effectively & efficiently.  Provides flexibility.  Provides ease of supervision.  Facilitates coordination and face-to-face communication where appropriate. 79

Facilities Layout  Layout refers to the configuration of departments, work centers, and equipment, with particular emphasis on movement of work (customers or materials) through the system.  Layout decisions are important for three basic reasons:  require substantial investments of money and effort;  involve long-term commitments, which makes mistakes difficult to overcome; and  have a significant impact on the cost and efficiency of operations. 80

Facilities Layout  The basic objective of layout design is to facilitate a smooth flow of work, material, and information through the system. Supporting objectives generally involve the following:  To facilitate attainment of product or service quality.  To use workers and space efficiently.  To avoid bottlenecks.  To minimize material handling costs.  To eliminate unnecessary movements of workers or materials.  To minimize production time or customer service time.  To design for safety. 81

Facilities Layout  The three basic types of layout are product, process, and fixed-position.  Product layouts are most conducive to repetitive processing  Process layouts are used for intermittent processing  Fixed-position layouts are used when projects require layouts Flexible layouts  Future  Anticipate changes: 2 types of expansion:  Sizes  No. of activities 82

Production Plant Layout  Facility Layout Problem: design problem  locations of activities  dimensions  configurations  No overall algorithm exists  Restrictions:  legislation on employees working conditions  present building (columns/waterworks)  Methods:  Immer: The right equipment at the right place to permit effective processing  Apple: Short distances and short times

Production Plant Layout Design problem Greenfield Location of one new machine Reasons:  new products  changes in demand  changes in product design  new machines Product  bottlenecks  too large buffers Design  too long transfer times Layout Logistics Process

Production Plant Layout  Goals (examples):  minimal material handling costs  minimal investments  minimal throughput time  flexibility  efficient use of space  Plan for the preferred situation in the future  Layout must support objectives of the facility  No accurate data  layout must be flexible

Basic Layout Forms  Process  Product  Cellular  Fixed position  Hybrid (mixed)

Process Layout (Job Shop) All machines performing a particular process are grouped together in a processing department Low production volumes Rapid changes in the product mix High interdepartmental flow

Process Layout  Applicable to both manufacturing and non manufacturing operations.  Advantages  Flexibility: equipment and personnel can be used where they are needed.  Smaller investment in equipment: duplication is not necessary unless volume is large.  Expertise: supervisors for each department become highly. knowledgeable about their functions  Diversity of tasks: changing work assignments make work more satisfying for people who prefer variety. 88

Process Layouts - Advantages  Handle a variety of processing requirements  Not vulnerable to equipment failures  General-purpose equipment is less costly and is easier and less costly to maintain  Possible to use individual incentive systems 89

Disadvantages  Lack of process efficiency: backtracking and long movements may occur in the handling of materials.  Lack of efficiency in timing: workers must wait between tasks.  Complication of production planning and control.  Cost: workers must have broad skills and must be paid higher wages than assembly line workers.  Lowered productivity: because each job is different it requires different setups and operator training. 90

Process Layouts - Disadvantages  In-process inventory costs can be high  Routing and scheduling pose continual challenges  Equipment utilization rates are low  Material handling is slow and inefficient, and more costly per unit  Job complexities reduce the span of supervision and result higher supervisory costs  Special attention necessary for each product or customer and low volumes result in higher unit costs  Accounting, inventory control, and purchasing are much more involved 91

Process (Job Shop) Layouts  Used when the operations system must handle a wide variety of products in relatively small volumes (i.e., flexibility is necessary)  Designed to facilitate processing items or providing services that present a variety of processing requirements.  The layouts include departments or other functional groupings in which similar kinds of activities are performed.  A manufacturing example of a process layout is the machine shop, which has separate departments for milling, grinding, drilling, and so on.

Characteristics of Process Layouts  General-purpose equipment is used  Changeover is rapid  Material handling equipment is flexible  Operators are highly skilled  Technical supervision is required  Planning, scheduling and controlling functions are challenging  Production time is relatively long  In-process inventory is relatively high

Process Focus 1. A process focus allows each department to specialize in their particular process, needed by highly complex processes. 2. Advantages of process focus are elusive in practice, although it does well in certain situations. 3. Process-focus have long throughput times, hence response is slow. To counter this, some plants operate with extensive inventories, even though inventory is expensive & it hardly improves the response time on customized products. 4. A process-focused operation address a wider product variety, allocation of indirect costs is difficult. 5. Process focus is more flexible, at least in theory. But, several way exist to achieve flexibility in product-focused layouts; e.g. use of small-scale, mobile equipment allow product focused cells to form, disassemble, & re- form. 6. Process-focused space plans often require expensive automatic guided vehicle systems or even more expensive fork trucks. 7. Process focus lends itself to traditional styles & require a substantial hierarchy to deal with increased coordination & complexity.

Process Focus The distance traveled by material in process focus plants can be seen as below:

Designing Process Layouts  The main issue in designing process layouts concerns the relative positioning of the departments involved. Departments must be assigned to locations. The problem is to develop a reasonably good layout; some combinations will be more desirable than others. 96

Designing Process Layouts  Layouts can also be influenced by external factors such as the location of entrances, loading docks, elevators, windows, and areas of reinforced flooring. Also important are noise levels, safety, and the size and locations of restrooms. 97

Designing Process Layouts  A major obstacle to finding the most efficient layout of departments is the large number of possible assignments. For example, there are more than 87 billion different ways that 14 departments can be assigned to 14 locations if the locations form a single line.  Different location configurations (e.g., 14 departments in a two- by-seven grid) often reduce the number of possibilities, as do special requirements (e.g., the stamping department may have to be assigned to a location with reinforced flooring). Still, the remaining number of layout possibilities is quite large. Unfortunately, no algorithms exist to identify the best layout arrangement under all circumstances. Often planners must rely on heuristic rules to guide trial-and-error efforts for a satisfactory solution to each problem. 98

Measures of Effectiveness  One advantage of process layouts is their ability to satisfy a variety of processing requirements. Customers or materials in these systems require different operations and different sequences of operations, which causes them to follow different paths through the system. Material- oriented systems necessitate the use of variable-path material-handling equipment to move materials from work center to work center. In customer-oriented systems, people must travel or be transported from work center to work center. In both cases, transportation costs or time can be significant. Because of this factor, one of the major objectives in process layout is to minimize transportation cost, distance, or time. This is usually accomplished by locating departments with relatively high interdepartmental work flow as close together as possible.  Other concerns in choosing among alternative layouts include initial costs in setting up the layout, expected operating costs, the amount of effective capacity created, and the ease of modifying the system.  In situations that call for improvement of an existing layout, costs of relocating any work center must be weighed against the potential benefits of the move. 99

Information Requirements  The design of process layouts requires the following information:  A list of departments or work centers to be arranged, their approximate dimensions, and the dimensions of the building or buildings that will house the departments.  A projection of future work flows between the various work centers.  Distance between locations & the cost/unit of distance to move loads between locations.  The amount of money to be invested in the layout.  A list of any special considerations (e.g., operations that must be close to each other or operations that must be separated).  The location of key utilities, access and exit points, loading docks, and so on, in existing buildings.  The ideal situation is to first develop a layout and then design the physical structure around it, thus permitting maximum flexibility in design. This procedure is commonly followed when new facilities are constructed. Nonetheless, many layouts must be developed in existing structures where floor space, the dimensions of the building, location of entrances and elevators, and other similar factors must be carefully weighed in designing the layout. Note that multilevel structures pose special problems for layout planners. 100

Minimizing Transportation Costs or Distances  The most common goals in designing process layouts are minimization of transportation costs or distances traveled. In such cases, it can be very helpful to summarize the necessary data in from-to charts. 101

Example  Assign the three departments shown in table to locations A, B, and C, which are separated by the distances shown in table, in such a way that transportation cost is minimized. Note that table summarizes the flows in both directions. Use this heuristic: Assign departments with the greatest interdepartmental work flow first to locations that are closest to each other. 102

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Closeness Ratings  Although the preceding approach is widely used, it suffers from the limitation of focusing on only one objective, and many situations involve multiple criteria. Richard Muther developed a more general approach to the problem, which allows for subjective input from analysis or managers to indicate the relative importance of each combination of department pairs.  Muther suggests the following list:  Use same equipment or facilities.  Share the same personnel or records.  Sequence of work flow.  Ease of communication.  Unsafe or unpleasant conditions.  Similar work performed. 104

Example  Assign the six departments in figure to a 2 3 set of locations using the heuristic rule: Assign critical departments first, because they are the most important. 105 105

Analysis of Layout By Process  Steps involved: 1. Determine the size of each department. 2. Determine the arrangement of the department with respect to one another. 3. Determine the arrangement of the equipment and people within each department. 106

Analysis of Layout By Process  Richard Muther's Systematic Layout Planning  Utilizes a grid matrix to display the ratings of the relative importance of the distance between department  Closeness ratings: C loseness R a ting D efinition A A bsolu tely necessary E E ssentially im p ortant I Im portant O O rd inary closen ess U U nim portant U U nd esirab le 107

Distance Measurements  Typically measured from department center to department center.  Euclidean distances are appropriate when the layout space is very open and movement within it can follow a direct path.  Rectilinear (sometimes called rectangular) distance is more appropriate for layouts aisles or hallways where one generally reaches a destination after making one or more right turns. 108

Load Distance Analysis  Each department is 10 feet by 10 feet, distances are rectilinear, which of the following two layouts is better? L a y out A L a y out B 3 8 4 7 7 4 10 1 1 10 2 9 9 2 5 6 6 5 8 3 109

Routing/Travel Distances P r od u ct D ep a r tm en t Q u a n ti ty P r ocessed P r ocessi n g S eq u en ce P er M on th A 1 5 4 10 1 ,0 0 0 u n it s B 2 6 3 9 2 ,0 0 0 C 2 10 1 9 3 ,0 0 0 D 1 7 8 10 1 ,0 0 0 E 2 5 6 9 2 ,0 0 0 F 1 7 4 10 4 ,0 0 0 110

Routing/Travel Distances D ista n ce Betw een D ista n ce Betw een D ep a r tm en ts (feet) D ep a r tm en ts (feet) Flow L a y out A L a y out B Flow L a y out A L a y out 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 10 2 6 20 20 6 9 10 10 2 10 10 10 7 8 20 50 3 6 40 10 8 10 20 30 111

Solution (1/2)  Compute the total travel for each product through each layout alternative. D epa r tm en t D ista nce per D ista nce per P r od uct P r ocessing P r od uct (feet) P r od uct (feet) Sequence La y out A La y out B (feet) A 1 5 4 10 30+ 30+ 1 0= 70 30+ 30+ 1 0= 70 B 2 6 3 9 20+ 40+ 3 0= 90 20+ 10+ 1 0= 50 C 2 10 1 9 10+ 10+ 1 0= 30 10+ 10+ 1 0= 30 D 1 7 8 10 10+ 20+ 2 0= 50 10+ 50+ 3 0= 90 E 2 5 6 9 10+ 10+ 1 0= 30 10+ 10+ 1 0= 30 F 1 7 4 10 10+ 10+ 1 0= 30 10+ 10+ 1 0= 30 112

Solution (2/2)  Compute total distance traveled per month by each product through each layout alternative. U n its p er D ista n ce p er P r od uct D ista n ce p er M on th P r od uct M on th L a y out A L a y out B L a y out A L a y out B A 1000 70 70 70,000 70,000 B 2000 90 50 180,00 0 100,00 0 C 3000 30 30 90,000 90,000 D 1000 50 90 50,000 90,000 E 2000 30 30 60,000 60,000 F 4000 30 30 120,00 0 120,00 0 T o tals 570,00 0 530,00 0 * 113

Computer Packages  Heuristic, improvement algorithms.  CRAFT (Computerized Relative Allocation of Facilities Techniques) is the best known of the heuristics approaches; attempts to minimize materials-handling cost by calculating cost, pair-wise interchanging departments, calculating more costs until a good solution is obtained.  ALDEP (Automated Layout Design Program) and CORELAP (Computerized Relationship Layout Planning) attempt to maximize a nearness rating within the facility dimension constraints.  PREP (Plant Re-layout and Evaluation Package) analyzes multilevel structures and is based on actual footage traveled by materials-handling equipment. 114

Nonrepetitive Processing: Process Layouts  Process layouts are designed to process items or provide services that involve a variety of processing requirements. 115

Product (Assembly Line) Layouts  Product layouts achieve a smooth & rapid flow of large volumes of products through a system.  A job is divided into a series of standardized tasks, permitting specialization of both labor & equipment.  The large volumes handled by these systems usually make it economical to invest huge amount of money in equipment and job design. Production line according to the processing sequence of the product High volume production Short distances

Product (Assembly Line) Layouts…  For instance, if a portion of a manufacturing operation required the sequence of cutting, sanding, and painting, the appropriate pieces of equipment would be arranged in that same sequence.  Operations are arranged in the sequence required to make the product  Product layouts achieve a high degree of labor and equipment utilization.

Repetitive Processing: Product Layouts  Product layouts are used to achieve a smooth and rapid flow of large volumes of goods or customers through a system. 118

Flow-Line Layout  Applicable to both manufacturing and non manufacturing operations.  Arrange machines and/or workers in accordance with the sequence of operations for a given product or service.  Advantages of flow-line layout  Reduces materials handling.  Accommodates small amounts of work in process.  Reduces transit times.  Simplifies production planning and control systems.  Simplifies tasks, enabling unskilled workers to learn task quickly. 119

Disadvantages of flow-line layout  Lack of process flexibility.  Lack of flexibility in timing: the product can not flow through the line faster than the slowest task can be accomplished unless that task is performed at several stations.  High investments: special-purpose eqp & duplication is required to offset lack of flexibility in timing.  Dependence of the whole on each part: a B/D of a machine or absence of operators to staff all work stations may stop the entire line.  Worker fatigue: workers may become bored by the endless repetition of simple tasks. 120

Product Layout-Advantages/Disadvantages Advantages: Disadvantages:  Low variable cost per unit  High volume required  Lower material handling because of large initial costs investment  Work stoppage at any  reduction in work in-process inventories point ties up the whole process  easier training and  Lack of flexibility in supervision handling variety of products or production rates

Repetitive Processing: Product Layouts  Advantages Disadvantages  A high rate of output  Morale problems and to repetitive  Low unit cost due to high volume stress injuries.  Labor specialization  Lack of maintaining equipment or  A high utilization of labor and quality of output. equipment  Inflexible for output or design  The establishment of routing &  Highly susceptible to shutdowns scheduling in the initial design of  Preventive maintenance, the the system capacity for quick repairs, and  Fairly routine accounting, spare-parts inventories are purchasing, and inventory necessary expenses control  Incentive plans tied to individual output are impractical 122

Repetitive Processing: Product Layouts  U-Shaped Layouts 123

Characteristics of Product Layouts  Special-purpose equipment are used  Changeover is expensive and lengthy  Material flow is continuous  Material handling equipment is fixed  Little direct supervision is required  Planning, scheduling and controlling functions are relatively straight-forward  Production time for a unit is relatively short  In-process inventory is relatively low

Product Focus 1. Product Layouts are advantageous in cost, coordination, material flow, mgmt/supervision, eqpt utilization, knowledge/skills, response time, flexibility, quality & organization. 2. So, Designers aim for the highest degree of product focus & use process focus only when exotic skills are necessary. 3. Product focus simplifies cost control as it pulls together a product, converts indirect costs to direct & tracking is unnecessary. 4. Product focus reduce the distances & improve the communication between operations. It enhance teamwork, needs less supervision & achieves lean organizations. 5. Teamwork & job enrichment reduce turnover. Emphasis is on products & customers rather than departmental loyalties. 6. Material flow is reduced by 80-95% in product-focused operations w.r.t process focus. Variable flow paths often become fixed upon conversion to product focus, which simplifies material handling. 7. Product focus allows to eliminate FG inventory while improving delivery performance & reliability.

Product Focus 8. In theory, product focus uses more equipment for the same output than process focus. But, due to complex scheduling, theoretical utilization of process focus is seldom realized. 9. To mitigate the apparent under-utilization of eqpt in product focus, layouts are designed maximizing the use of major equipment while sacrificing usage on less expensive peripheral equipment. 10. Product focus generally achieves high quality levels. This results from quick feedback, good communication & easy coordination. 11. Process focus sometimes may have a quality advantage for complex or technical processes. 12. Product focus is most compatible with newer approaches based on teamwork & empowerment. 13. As the product range is narrow, a small variety of issues will arise, which simplifies production control & scheduling.

Designing Product Layouts: Line Balancing  The goal of a product layout is to arrange workers or machines in the sequence that operations need to be performed.  The sequence is referred to as a production line or an assembly line. These lines range from fairly short, with just a few operations, to long lines that have a large number of operations. Automobile assembly lines are examples of long lines. At the assembly line for Ford Mustangs, a Mustang travels about nine miles from start to finish! 127

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 Line Balancing  Cycle Time 129

 Precedence Diagram 130

Line Balancing Procedure  1. Determine the cycle time and the minimum number of workstations.  2. Make assignments to workstations in order, beginning with Station 1. Tasks are assigned to workstations moving from left to right through the precedence diagram.  3. Before each assignment, use the following criteria to determine which tasks are eligible to be assigned to a workstation:  a. All preceding tasks in the sequence have been assigned.  b. The task time does not exceed the time remaining at the workstation.  If no tasks are eligible, move on to the next workstation.  4. After each task assignment, determine the time remaining at the current workstation by subtracting the sum of times for tasks already assigned to it from the cycle time.  5. Break ties that occur using one of these rules:  a. Assign the task with the longest task time.  b. Assign the task with the greatest number of followers.  If there is still a tie, choose one task arbitrarily.  6. Continue until all tasks have been assigned to workstations.  7. Compute appropriate measures (e.g., percent idle time, efficiency) for the set of assignments. 131

Example  Arrange the tasks shown in figure into three workstations. Use a cycle time of 1.0 minute. Assign tasks in order of the most number of followers. http://www.baskent.edu.tr/ 132 ~kilter

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Example  Using the information contained in the table shown, do each of the following:  Draw a precedence diagram.  Assuming an eight-hour workday, compute the cycle time needed to obtain an output of 400 units per day.  Determine the minimum number of workstations required.  Assign tasks to workstations using this rule: Assign tasks according to greatest number of following tasks. In case of a tie, use the tiebreaker of assigning the task with the longest processing time first.  Compute the resulting percent idle time and efficiency of the system. 134

0.2 0.2 0.3 0.4 0.3 0.8 0.6 1.0 135

http://www.baskent.edu.tr/ 136 ~kilter

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Other Approaches http://www.baskent.edu.tr/ 138 ~kilter

Cellular Manufacturing (CM) Layouts  Cellular manufacturing is a type of layout in which machines are grouped into what is referred to as a cell.  Groupings are determined by the operations needed to perform work for a set of similar items, or part families that require similar processing.

Cellular Manufacturing (CM) Layouts…  These relate to the grouping of equipment and include faster processing time, less material handling, less work-in-process inventory, and reduced setup time.  Used when the operations system must handle a moderate variety of products in moderate volumes

Group (Cellular) Layout Product layouts for product families  cellular layout Compromise between product & process layout For high variety & a wide range of volumes “Factory within factory” / Modular concept Based on TSS philosophy Highly flexible Highly Productive (Operator idle time – almost Nil)  Cellular Manufacturing  Characteristics C e ll  Implementing Cells  Part Families  Production Flow Analysis

Cellular Layouts  a type of layout in which workstations are grouped into what is referred to as a cell. 142

Cellular Layouts  Single-minute exchange of die (SMED) enables an organization to quickly convert a machine or process to produce a different (but similar) product type.  Right-sized equipment is often smaller than equipment used in traditional process layouts, and mobile, so that it can quickly be reconfigured into a different cellular layout in a different location. 143

Group Technology  Effective cellular manufacturing must have groups of identified items with similar processing characteristics. This strategy for product and process design is known as group technology and involves identifying items with similarities in either design characteristics or manufacturing characteristics, and grouping them into part families. 144

Group Technology Layout  Definition of Group Technology “Group technology is the technique of identifying and bringing together related or similar parts in a production process in order to utilize the inherent economy of flow production methods.” V. B. Solaja, Institute of Machine Tools, Belgrade, Yugoslavia 145

Group Technology layout is also called manufacturing cell layout. Example:  A plant producing 10,000 part numbers may be able to group the parts into 50 or 60 families. Each family would possess similar design and manufacturing characteristics.  Hence, the processing of each member of a given family would be similar, and this results in manufacturing efficiencies in the form of:  Reduced set-up,  Lower in-process inventories,  Better scheduling,  Improved tool control,  Standard process plan. 146

Concept  Many problems are similar, by grouping similar problems, a single solution can be found to a set of problems, thus saving time and effort.  A manufacturing philosophy in which similar parts are identified and grouped together to take advantage of their similarities in design and manufacturing.  A technique for identifying & bringing together related or similar components in order to take advantage of their similarities in the production process. 147

C on cep t D esign M a n ufa ctur in g M a n y p r ob lem s a r e Sim ilar Shapes Sim ilar sim ila r M anu factu ring P rocesses G r oup Sim ila r D esign F am ilies P rod uction F am ily P r ob lem s Sin gle Solution of O ne stand ard d esign O ne stand ard P r ob lem s plu s m inor process plan to a m od ification fam ily and m od ification and extension 148

Manufacturing Cell  Cellular manufacturing is the physical division of the manufacturing facilities into production cells.  Each cell is designed to produce a part family. A part family is a set of parts that require similar machinery, tooling, machine operations, and/or jigs and fixtures.  The parts within the family normally go from raw material to finished parts within a single cell.  Justification  Batch production  Only 5% of the lead time in producing a part is direct working time; 95% of the time, the part is waiting.  The 5% direct working time includes 30% actual processing and 70% for positioning, chucking, gauging, etc.  Hence, only 1.5% is accounted for actual machining.  Cellular manufacturing directs its effort towards the remaining 98.5% by organizing the plant layout according to work cell, rather than functions. A work cell is a unit that includes all of the machines required to produce a family of parts. 149

Advantages  Implied reduction of necessary control  Reduced material handling  Reduced set-up time  Reduced tooling  Reduced in-process inventory  Reduced expediting  Increase operator expertise  Improved human relations. 150

 Disadvantages  Reduced shop flexibility  Possible reduced machine utilization  Possible extended job flow times  Possible increased job tardiness.  Implementation Issues  Reorganization - machine layout need reorganization every so often.  Work cell supervision - supervisors must be expert in several field (milling, turning, grinding, etc.)  Shop floor control / production planning - cell concept leads to unbalanced workload on m/cs. 151

Fixed-Position Layouts  In fixed-position layouts, the item being worked on remains stationary, and workers, materials, and equipment are moved as needed.  Fixed-position layouts are used in large construction projects (buildings, power plants, and dams), shipbuilding, and production of large aircraft and space mission rockets.  Fixed-position layouts are widely used for farming, firefighting, road building, home building, remodeling & repair & drilling for oil.

Fixed-Position Layouts  In fixed-position layouts, the item being worked on remains stationary, and workers, materials, and equipment are moved about as needed.  Fixed-position layouts are widely used in farming, firefighting, road building, home building, remodeling and repair, and drilling for oil. In each case, compelling reasons bring workers, materials, and equipment to the “product‟s” location instead of the other way around. 153

Fixed-Position Layouts 154

Fixed Position Layout  Manufacturing & non-manufacturing operations of bulky or fragile products, e.g., ships & planes.  Move machines and/or workers to the site; products normally remains in one location for its entire manufacturing period.  Advantages of fixed position layout  Reduces movement of work items; minimizes damage or cost of moving.  More continuity of the assigned work force (since the item does not go from one department to another). This reduces the problems of re-planning & instructing people each time a new type of activity is to begin. 155

Disadvantages of fixed position layout  Since the same workers are involved in more operations, skilled & versatile workers are required. The necessary combination of skills may be difficult to find & high pay levels may be necessary.  Movement of people and equipment to and from the work site may be expensive.  Equipment utilization may be low because the equipment may be left at a location where it will be needed again in a few days rather than moved to another location where it would be productive. 156

Hybrid (mixed) Layouts  Actually, most manufacturing facilities use a combination of layout types.  An example of a hybrid layout is where departments are arranged according to the types of processes but the products flow through on a product layout.

Hybrid (mixed) Layouts…  For instance, supermarket layouts are fundamentally of a process nature, however we find most use fixed- path material-handling devices such as roller-type conveyors both in the stockroom & at checkouts, and belt-type conveyors at the cash registers.  Hospitals also use the basic process arrangement, although frequently patient care involves more of a fixed-position approach, in which nurses, doctors, medicines, and special equipment are brought to the patient.

Combination Layouts  Supermarket layouts are essentially process layouts, yet we find that most use fixed-path material-handling devices such as roller- type conveyors in the stockroom and belt-type conveyors at the cash registers.  Hospitals also use the basic process arrangement, although frequently patient care involves more of a fixed-position approach, in which nurses, doctors, medicines, and special equipment are brought to the patient.  Faulty parts made in a product layout may require off-line reworking, which involves customized processing. Moreover, conveyors are frequently observed in both farming and construction activities.  Cellular manufacturing - Group technology  Flexible manufacturing systems 159

New Trends in Manufacturing Layouts  Designed for quality and flexibility  Ability to quickly shift to different product models or to different production rates  Cellular layout within larger process layouts  Automated material handling  U-shaped production lines  More open work areas with fewer walls, partitions, or other obstacles  Smaller and more compact factory layouts  Less space provided for storage of inventories throughout the layout

Designing the layout  Search phase  Alternative layouts  Design process includes  Space relationship diagram  Block plan  Detailed layout  Flexible layouts  Material handling system  Presentation  Relationship diagram + space  space relationship diagram  Different shapes Layout determines  Material handling  Utilization of space, equipment & personnel

Flexible Manufacturing Systems  A flexible manufacturing system (FMS) is a group of machines that include supervisory computer control, automatic material handling & robots or other automated processing equipment. Reprogrammable controllers enable these systems to produce a variety of similar products. Systems may range from 3 machines to more than a dozen & designed to handle intermittent processing requirements with the benefits of automation & the flexibility of individual, or stand-alone machines (e.g., N/C machines).  relatively narrow range of part variety  requires longer planning and development times  Firms prefer a gradual approach to automation & FMS represents a sizable chunk of technology. 162

Flexible Manufacturing Systems  Computer-integrated manufacturing (CIM) is a system that uses an integrating computer system to link a broad range of manufacturing activities, including engineering design, flexible manufacturing systems, purchasing, order processing, and production planning and control. 163

Service Layouts  Many service organizations use process layouts because of variability in customer processing requirements.  Unlike manufacturing layouts, service layouts must be aesthetically pleasing as well as functional. 164

Warehouse and Storage Layouts  The design of storage facilities presents a different set of factors than the design of factory layouts.  Frequency of order  Correlation between items  Width of aisles  The height of storage racks  Rail and/or truck loading and unloading  Need to periodically make a physical count of stored items. 165

Retail Layouts  The objectives that guide design of manufacturing layouts often pertain to  Cost minimization  Product flow  Traffic patterns  Traffic flow 166

Office Layouts  Office layouts are undergoing transformations as the flow of paperwork is replaced with the increasing use of electronic communications. That means there is less need to place office workers in a layout that optimizes the physical transfer of information or paperwork. Another trend is to create an image of openness; office walls are giving way to low-rise partitions. 167

Block Flow Diagram (BFD)  The overall goal of process development is to implement a conceptual design into a manufacturing scale. For this reason, chemical engineers have to consider the implications of facility design.  In facility design, the manufacturing process concept is transformed into a physical process within a facility. Hence, a detailed block flow diagram (BFD) should be created. The facility can be designed from this BFD.  This tutorial will describe a few of the aspects that should be taken into consideration when designing a facility for a pharmaceutical/biotech product.

Regulations  The main regulations for facility design comes from the US Federal Standard 209E (FED-STD-209E), which sets the standards for air handling within the facility. It defines the amount permissible per particulate size. This limit in turn determines the classification of the process rooms within the facility.  Facilities must also comply to current Good Manufacturing Processes (GMP), a system of good manufacturing procedures & techniques that ultimately protect the patient. As the name implies, the standard are periodically updated to reflect changes within the industry. For facilities, the regulations are defined in the US Code of Federal Regulations, specifically, 21 CFR 211.42 - 211.58.

Equipment  One of the main considerations for the development of facility is the equipment needed for the mfg process. One should assess what is needed based on the BFD.  For a retrofit project, consideration should be taken into what existing equipment can be utilized. If the equipment meets the specifications for the process, one should considering using them. This will save the company money & time.  However, many times equipment cannot be used for various reasons (out of spec., intrinsic problems, etc.). At this point, new equipment should be purchased and incorporated into the facility.

Equipment  When incorporating this new equipment certain consideration should be made. Can the equipment physically be moved into the building? Is the facility processing room(s) big enough for the equipment? Is construction needed to build or refurbish the facility in order to accommodate the equipment.  These are just a few of the consideration a engineer must take into account with process equipment. Other will arise pending on the specific piece of equipment. The facility should be designed around these aspects.

Utilities  One should also consider the facility utilities during conceptual design. Since the nature of the product is pharmaceutical/ biotech, many specific systems have be considered.  The systems include, but are not limited too, water for injection (WFI), clean in place/steam in place (CIP/SIP), HVAC, compressed air, etc. (Explanations and references are given in the „Information‟ section of this website). HVAC and CIP/SIP are needed to ensure human safety and minimal product contamination. Whereas WFI and compressed air are used in the manufacturing process.  Since this situation involves a retrofit, these systems may already be in place. But are they accessible for the equipment? Do they meet the specifications of the process? Will any system need to be updated or modified? These are just a few of the questions that should be considered.

Waste Systems  Once again, since this product is biological, there may be special regulations that exists to guide this process. In addition, engineers should make sure waste treatment facilities are safe for man as well as nature.  It is certain that the manufacturing process will generate significant wastes associated with fermentation and purification. The facility must be able to dispose of these wastes effectively and safely.  For biotech industries the main concern of waste treatment is the recombinant host. This organism may pose health threats if it is released untreated into the environment. Methods of disposal vary pending on the organism. This should be kept in mind when design the waste treatment facility.

Waste Systems  So, where will these wastes go? Are there facilities already existing that can handle these wastes? Are they sufficient in size and capacity? Are a few more questions that should be assessed when designing the waste treatment section of the facility.  Broad guidelines exist for waste systems as documented by the US Code of Federal Regulations (CFR). As mentioned earlier these codes include:  40 CFR Part 261  40 CFR Part 264

Storage  Storage of raw materials and products also has special consequences in the pharmaceutical/biotech context. These materials have to be quarantined when raw materials are received and after product packaging. This ensures that the materials avoid contamination while also minimizing human exposure. During this time, the new materials are properly labeled and tested before dispensing into the facility. The packaged product, on the other hand, awaits shipping.  When the facility become functional these raw materials and final products will need a place for storage. This is yet another consideration an engineer must make during facility design.  Do these storage rooms already exist? Can a existing room(s) be modified to accommodate these materials? Is there a need to build a new storage facility? An engineer should ponder these questions.

The Levels of Spatial Design/Facility Planning Space planning is done in 5 levels. Level Activity Space Output Planning Unit I Site Location Sites Global II Plot Location Plot Features Supra III Site Planning Building Macro Layout Layout IV Shop-floor Cells / lines Micro Layout Layout V Workstation Tool & Fixture Sub Micro Design Locations Layout

SITE MASTER PLAN • Access road • Municipality /Village • Electricity grid 11/33/66 kV sub-station • Drainage • Land level w.r.t. road level 3-D View

People & Material Movement – Macro Level Inbound material – Grey, Material flow inside factory – Red, Outbound material- Yellow, Workmen – Green, Staff - blue

Objectives  To be the Least Cost Manufacturer in the World.  Set up State of the Art Manufacturing Facility  Comply with the EHS Norms.  Consistently deliver value at min. response time.  Consistency in Product Quality  Consistency in meeting delivery schedules  Build-up intellectual resource base to achieve self- reliance in knowledge & expertise for future expansion & growth.

Level 4 – Micro Space Plan The location of specific equipment and furniture is determined in the micro-space plan. The emphasis shifts from gross material flow to personal space & communication. Socio-technical considerations dominate at this level. Sound micro-level space planning ensures that work flows smoothly in each SPU & promotes teamwork. It affects supervision, costs, inventory, quality, delivery, flexibility, and coordination, as well as other cost structure. It has 4 major tasks, each of which has a corresponding procedure diagram that tells the designer how to do it. The macro-space-plan's fundamental elements-SPUs, affinities, space & constraints-still apply, yet there are significant differences. The model project plan helps designers organize this work, while allowing them to look ahead & behind. Focusing on a detailed task also means stepping back to view the entire work cell design.

Level 5 – Sub Micro Space Plan Individual workstations & workers are the concern of the fifth level. Here, workstations are designed for efficiency, effectiveness & safety. Ideally, the industrial engineer plans for the correct tools in the most appropriate places, using fixtures that properly hold the work piece. Materials are introduced at optimal locations and large items are provided with appropriate material handling aids. Levels 4 & 5 are the more detailed levels of space planning; therefore, equipment & issues are more localized.

The Phasing of Space Design Ideally, design progresses from the global level to the sub-micro level in distinct, sequential phases. At the end of each phase, the design is "frozen" by consensus. This settles the more global issues first & allows smooth progress without continually revisiting unresolved issues.

The Macro Layout Project The elements of factory layout are simple; the tasks required to develop them is not. These tasks and their sequence are remarkably similar for many projects. The scope, resources, methods, formality and time required varies according to size and complexity, but each task must be addressed in some way for good results. Our methodology uses 25 standard tasks with modifications to suit particular projects. The figure below illustrates the tasks and their sequence. This is a "Model" for structuring the work in almost any macro-layout project. The initial tasks (labeled "Information") plan the project and acquire basic information. These tasks also help to gain consensus and establish a factual basis for the layout. Process Mapping is an important tool here. These initial tasks also begin the process of paradigm shift. The facts & information gathered and presented are often surprising.

The Macro Layout Project The second category ("Strategy") is only a single task. This is arguably the most important task but usually the most neglected. It determines the process & organization of the business. This is where management abandons the past & seriously re-thinks the manufacturing structure. The third task group designs the spatial layout and associated systems. This is what most people consider as "Plant Layout". While this task group appears complex, it is actually straightforward-- IF the previous task groups have been well done. This procedure produces at least several viable layouts. Each layout has advantages and disadvantages. The final task evaluates the layout options and makes a selection. The entire procedure can take as little as two weeks or as long as six months. The time depends on project complexity and the strategic orientation of management. Material Handling: It should integrate with the layout. We analyze the material movement using Equivalent Flow Units and other quantitative methods. This procedure selects the most appropriate Containers, Route Structures and Equipment.

3.01 - Planning the Project Task 03.01, "Plan Project," develops a specific project plan. The tasks & the time & resources needed for each task is defined. With the above information and the model, the designer then plans the project. Project planning software is useful for this task, although for most macro space-plans, a simple Gantt chart will suffice The deliverables are a task list, a Gantt chart, and a summary that includes the project objectives. A PERT chart is useful but not necessary. In addition to statements outlining tasks, elapsed time & responsibility, the deliverables for each task should be identified. A deliverable is a tangible output for the task. A written summary of findings is a valid deliverable, as are a material flow diagram and physical infrastructure checklist

Information Acquisition Tasks The first task is to gather information, quantitative & qualitative both, to develop macro-space-plans. It will raise awareness & build support & consensus in the organization by asking questions, which was never asked before. 1. Source: product design product design sequence of operations machines layout (assembly) line  BOM  drawings  “gozinto” (assembly) chart  redesign, standardization  simplifications

Data Collection 2. Source: Process design  make/buy  equipment used  process times 3. Operations process chart  assembly chart precedence diagram  operations 4. Source: Production schedule design  logistics: where to produce, how much  product mix  marketing: demand forecast production rate  types and number of machines  continuous/intermittent  layout  schedule

3.02 - Products & Volume Analysis 1. Review the product line/sales catalogs & interview sales team. 2. Obtain overall sales volume history (5 to 10 years) & Sales forecast (optimistic & pessimistic) 3. Plot a chart for sales histories, forecast & the regression line. 4. Group the Products under either marketing or mfg orientation, or both. 5. Prepare product profile for each group, in ranked bar chart showing sales volume (in dollars or pieces). A cumulative curve is also drawn. 6. A detailed product profile is prepared, if a product group has significant sales volume, but individual products in the group have only few.

Products & Volume Analysis The forecasts & P-V analysis become the basis for process design, space requirements, storage requirements, material flow analysis & mfg strategy.

Production volume & variety determines type of layout High vol. & low variety suggest high speed production line. Low vol. with high variety suggests a functional layout. High variety & a wide range of volumes suggest cellular mfg. Vendor sourcing is the strategy for seasonal variation in capacity. Production product group layout process layout volume layout product variety

3.03 - Current Process Analysis 1. Process & material flow charts are developed & analyzed). 2. Process charts consist only a sequence of events (operation, transport, handling, inspection, delay & storage), & not the locations (text has who, what & where information). Operation - modifies the product towards a finished state. Transport - physical movement of significant distance (>10‟). Handling - sorting, positioning, or other short movement. Inspection - quality check. Delay - that halts the process for a time (work-in-process staging). Storage - longer wait in a designated area with records. 3. Except operation, all other elements contribute only cost & time. The targeted % of value-adding elements (value added index) is 60%.

Current Process Analysis 4. Chart making is data collection; then, it is analyzed. 5. In process charts, the symbols are not locations or workstations or even machines. 6. A short horizontal line at the beginning shows supply from outside the process. 7. Vertical lines show the sequence of events. 8. Horizontal arrows indicate work product merge. 9. Text to the right of each symbol indicate the event, time or other information. 10. The text has who, what & where information. 11. The lines do not represent movement of the work product; instead, they represent only a sequence of events.

3.04 - Inventory Analysis 1. It is important for 2 reasons.  First, inventory is usually the major capital consumer.  Second, almost all difficulty, problem, or defect in the business system eventually comes to rest in inventory. 2. Inventory thus is an indicator of the efficacy of the business. 3. The first step is to obtain the data of historical annual inventory turns (total annual production divided by inventory in hand). 4. A production class profile shows inventory by raw material, purchased items, finished goods, & WIP. 5. A product class profile shows inventory by product/product group. 6. It provides valuable input to size storage areas & develop manufacturing strategy; e.g.  high inventory of RM indicate a supplier & purchasing issue,  high WIP indicate material movement scheduling issues,  high FG volume indicate scheduling, sales & marketing issues.

3.05 - Organization Analysis 1. It determines the size of support facilities like restrooms & cafeterias. For office layouts, it is essential to plan the space based on workstation requirements. 2. Organization chart is made down to the lowest level that use the facility. Then the current space plan is examined. 3. A continuous, enclosed line on the chart represent each major area on the layout, surrounding each position or department that inhabits the layout area illustrating space & organization congruity. 4. Space & organization congruity show consistency between the organization & the arrangement. 5. People & positions in the same department should occupy contiguous areas. 6. A messy diagram demonstrates people of the same units are scattered through the facility & they are inconsistent. 7. The diagram will not tell us whether the facility or the organization is correct; it shows that they are inconsistent.

3.06 – Current Space Analysis 1. The analysis begins with the drawing of current facility. 2. The space analysis reveals current space use, layout type & any imbalance in space use. 3. Value added space shall be >60% ideally. If <30%, there exists significant opportunities for improvement. 4. Large storage space indicate a need for more cellular & line production, or a need for scheduling system revisions. 5. large space for inspection/repair indicate significant quality issues. 6. Add product space class diagram, classifying space by product with a color for each product. Space used by single product group will have one color, while functional space used by many product groups will have many colors. 7. A product-focused layout has a "clean" product space diagram and a "messy'' functional space diagram. 8. A process focused (functional) layout has the opposite.

3.07 - Identifying Physical Infrastructure 1. Physical infrastructure supports operations for all the product line but does not contribute directly to the process. It seldom relates to a product/product group, so it does not appear on the process charts. 2. Infrastructure - cafeteria, maintenance, HVAC, electrical etc. 3. These elements are necessary for operations & hence essential to the space plan.

3.08 - Analyze Material & Info Flow For this, current process analysis information (Task 3.03) is superimposed on the current space plan (Task 3.06). The resulting diagrams will show material movement opportunities & provides a baseline for handling improvement for new space plan. Lines & arrows trace movement across the layout. The number of moves are counted & the movement distance is totaled. It shows long moves, crossovers & backtracking. Moves between organizational departments also indicate improvement opportunity.

3.10 – Identify Operation Strategy 1. To determine business elements; e.g. machines, information systems, people & facilities (explicit or implicit). Key manufacturing tasks & focus opportunities is identified based on it. 2. An operation strategy addresses four areas: mission, process, infrastructure & facilities (physical infrastructure). 3. The mission states the purpose, identifies customers, products, processes, key manufacturing tasks & environmental policy. 4. Non-physical infrastructure covers people, information & scheduling systems, training, tool design etc, which support the process but does not directly affect the product. 5. Physical infrastructure is synonymous to facilities; e.g. buildings, utility, roads, and docks. 6. The success of a space plan depends on the organization's ability; e.g. a cellular space plan with „Kanban‟ production control & small lot sizes needs rapid setup techniques & participative mgmt.

Operation Strategy 7. Mixed approaches; e.g. process focus for receiving/shipping etc, while other operations have a product focus. 8. From the process chart, products suitable for a plant-within-plant (PWP) are identified if enough volume exists to justify dedicated resources. A (PWP) is a self-contained production facility with its own infrastructure within the walls of a larger facility. 9. Then GT is explored for products with similar operations that can use the same resources till remaining products are too small & varied for dedicated plants or GT cells. 10. Process-focused cells are developed then for remaining items. An alternative is a job-shop department similar to a prototype shop. The design of a mfg plant is done focusing on some performance parameters, while sub-optimizing on others; e.g. Aerospace engineers can design an aircraft that flies at Mach 3.0 speed or one that carries 350 people or one that circles the globe on a few hundred gallons of fuel or one that lands on a 500-foot runway. But, they cannot design an aircraft that does all of the above.

Key Performance Indices 1. A factory with too many key parameters lacks focus. 2. An unfocused factory has too many tasks or too many products or too many process technologies or too many disparate customers. 3. This is inevitable if a factory is too large. Such a factory rarely performs any task well due to following reasons: • Larger factories have greater distances between departments. This increases material handling costs & exacerbates the isolation & coordination difficulties. • Such factories have extensive vertical integration with a wider product range & disparate processes. • A focused factory strives for a narrow range of products, customers or processes with few key manufacturing tasks. 4. The criteria to divide space, people & m/cs into manageable units may be products, processes, markets, customers etc. 5. A product-focused plant groups operations on product basis to eliminate changeovers & reduce scheduling problems.

Economy & Dis-economy of Scale 1. A wider range of products brings more variety in the process. This requires greater complexity in handling, storage, tooling, changeovers, skill requirements & every facet of operations. 2. A wider range of products often serve disparate customers & markets with varied market criteria like delivery, quality or customization leading to reduced effectiveness. 3. Economies of scale are the rationale for increasing factory size, which refers to the increase in efficiency as plants grow in size – popularized by mass production concept. Skinner coined the term "dis-economies of scale“ - Increased scale brings diseconomies like increased coordination effort, isolation of specialty departments etc. As a factory grows beyond 300-500 persons, the dis-economies of scale overcome the economies.

3.11-Define Space Planning Units (SPUs) 1. It is the most fundamental task. All subsequent work flows from this task. An omission or error invalidates all of the work that follows. 2. Every space plan has 4 fundamental elements & 2 derived elements. Space Planning Units (SPUs), Affinities, Space and Constraints are the 4 fundamental elements, that apply to any size facility and at any level. 3. To develop a space plan, SPUs are defined & identified first, that combine with Affinities to form one or more Affinity Diagrams, the first derived element & an idealized spatial arrangement that eventually becomes a layout. 4. Each SPU requires some finite space whether great or small. Space, added to the Affinity Diagram, distorts it into the Layout Primitive, which is the second derived element . 5. Constraints are conditions, assumptions, policies or edicts that restrict the design is some way. For example, "The layout must fit into the existing building." Constraints further modify the spatial arrangement and a Macro- layout results.

3.12 - Identify Non-Flow Affinities Figure 3 -27 shows a chart for recording non-flow affinities that may be used to document flow affinities, J, total affinities. Diagonals represent each SPU. When they cross, they form a diamond. In the upper half of the diamond, the affinity rating is recorded using the vowel or number scale shown in figure 2.9 The lower half of the diamond is the place to record the primary factor(s) that gave rise to the affinity.

3.12 - Identify Non-Flow Affinities 1. Non-flow affinities are independent of material flow requirements. The problem lies in capturing them. 2. In Task 03.14 they are merged with affinities for an overall or total affinity rating. A survey, consensus meeting, or personal evaluation may also be used. 3. The analyst acts as facilitator. Using the affinity chart, he or she explains the need for affinity ratings, the chart, and the desired distribution. 4. The group considers each pair of SPUs, one at a time, and discusses the relationships.

3.13 - Material Flow Analysis Material classification from the P-V analysis & process charts help to define a unit for material flow, the equivalent flow unit (EFU). In Block 3, planners choose an EFU; material-units / time- unit, e.g. pallets/day. In Block 8, the flow is calibrated using the AEIOUX conventions on a ranked bar graph with the SPU pairs along one-axis and flow rates on the other. The rating is done manually using affinity distribution only as a guide, as other factors also are involved; e.g. discontinuities in the curve naturally divide one rating from another. Affinity pairs that have zero flow between them get an "IJ" rating.

Flow & Activity Analysis  Flow analysis:  Types of flow patterns  Types of layout  flow analysis approaches  quantitative measure of movements between departments: material handling costs  Activity relationship analysis Relationship chart Qualitative factors (subjective!) Closeness rating (A, E, I, O, U or X)  Flow analysis techniques  Flow process charts  product layout  From-to-chart  process layouts

Flow Analysis - Materials & people Raw material Finished product Horizontal transport layout facilitates the flow R = receiving Types of flow S = shipping patterns R S R S S long line R

3.14 -Merging Affinities Two sets of affinities exist. A quantitative approach is used to develop flow affinities. Non-flow affinities by their nature preclude a quantitative approach. They shall be merged into a single set of affinities. Relationship Diagram  Construction of relationships diagrams: diagramming  Methods, amongst others: CORELAP  Spatial picture of the relationships between departments  Constructing a relation diagram often requires compromises; e.g.  X-rating because of noise  acoustical panels instead of distance separation  A rating because of communication requirement  computer network instead of proximity

Graph Theory Based Approach  close  adjacent  department-node  adjacent-edge graph  requirement: graph is planar (no intersections)  region-face  adjacent faces: share a common edge  Place a node in each face  Two faces which share an edge – join the dual nodes by an edge  Faces dual graph correspond to the departments in primal graph  block layout (plan)  Primal graph planar  dual graph planar  Limitations to the use of graph theory: it may be an aid to the layout designer

3.15 - Develop Configuration Diagram

3.16 - Space Calculation Methods: 1. Production center 2. Converting 3. Space Standards 4. Projection # machines per operator Space requirements # assembly operators 1. Production center  for manufacturing areas  machinespace requirements 2. Converting  e.g. for storage areas  present space requirement  space requirements  non-linear function of production quantity

Space Analysis

Space Determination 3. Space standards 4. Ratio trend and projection space  e.g. direct labor hour, unit produced factor  Not accurate!  Include space for:  Fixed areas irrespective of expansion – Engineering, Maintenance, tool rooms, offices, PPC, HR, Product Engineering, Sampling, Training, Laboratory  Pro-Rata development areas – packaging & storage areas, inspection, receiving & shipping, canteen, lavatories, parking - % of area growth with respect to qty growth may vary – depending on advance re-engineering & automation etc. Systems & People Processes to be benchmarked to the best.

Space Requirements  Building geometry / site  space available  Desired production rate, distinguish:  Engineer to order (ETO)  Production to order (PTO)  Production to stock (PTS) marketing forecast  productions quantities  Equipment requirement  Production rate  number of machines required  Employee requirements rate machines employees machine operators assembly

3.18 – Identify Constraints The factors that affect a macro-layout if do not fit the concepts of SPUs, space & affinities are constraints.

3.20 - Identify Material Handling Issues Material handling & layout are intertwined. The best handling system depends on the space plan & the best space plan depend on handling methods. A layout not viable with manual handling may be viable with automated handling. It‟s „chicken-or-the-egg‟ problem. The best approach is to design the layout assuming conventional, manual handling. This optimizes material flow & often eliminates the need for complex & expensive handling systems. A space plan is designed & selected before the handling system is finalized. To do this, a general type of handling system is assumed prior to layout design. Design in parallel with layout Use conveyor to reduce handling & manpower in work movement. Presentation  CAD templates 2/3 D  simulations  “selling” + evaluation

Graph-Based Layout Planar graphs •Primal •Dual For every primal graph, there exists one and only one dual graph, and vice versa Primal graph: Relationship between departments Dual Graph: Block Layout

Material Handling - Introduction MH – How important? •25% of all employees •55% of all factory space •87% of production time •Estimated to represent 15 – 70% of the total cost of a manufactured product •Source for: • Cost reduction • Quality improvement •Strategy: • Minimize or eliminate MH? • Smarter handling

Material Handling Definitions No unique definition of material handling 1. Material Handling is the art and science of moving, storing, protecting, and controlling material 2. Material handling means providing the right material, in the right condition, at the right place, at the right time, in the right position, in the right sequence, and for the right cost, by using the right method(s).

Material Handling Scope Three possible interpretations: 1. “conventional” – material movement from one location to another, usually within the same plant. Little attention is given to interrelationships of the individual handling tasks. 2. “contemporary” – overall flow of materials in a plant. Analysis of interrelationships between handling tasks  develop an integrated material handling plan. 3. “progressive” – systems perspective  define MH as all activities involved in MH from all suppliers, within the manufacturing facility, and distributing finished goods to customers.

Material Handling Principles •College-Industry Council on Material Handling Education (CICMHE) adopted 20 principles of material handling in 1966 •Revised in 1981 to reflect changes in industrial operations since its adoption. •Concise statements of fundamentals of material handling practice • provides guidance and perspective to MH system designers •Checklists have been developed for identifying improvement opportunities for existing systems

Material Handling System Design •Follow the same design principles 1. Define the objectives and scope for the MH system 2. Analyze the requirements for moving, storing, protecting, and controlling material 3. Generate alternative designs for meeting material handling system requirements 4. Evaluate alternative material handling system designs 5. Select the preferred design 6. Implement the preferred design

MH System Design - Questions •Continuously ask: • Why, what, where, when, how, who, and which? Alternatives Material Handling Systems Why + What Correct Materials + Why + Where + When Necessary Moves + Why + How + Who Correct methods = Why and Which Preferred Design

Material flow vs. Material handling? •Material flow: combination of material characteristics and move or flow requirements •Focus on: • material to be handled, stored, and controlled • flow or throughput requirements for the system Material method of handling, Material Flow storing, and controlling Handling the material

Material Handling  Twenty principles of material handling  Selecting material handling methods  Simplifying/eliminating material handling  Simple analysis techniques

Material Handling  Material handling adds COST, but not VALUE.  as much as 60% of total production cost  20%-30% of direct labor costs  50%-70% of indirect labor costs  What‟s the best way to handle materials? DON‟T!!  Goal: MINIMIZE COSTS OF MATERIAL HANDLING

Muther’s Material Handling Equation Yes WHY WHAT WHERE + WHEN HOW + WHO ? MAT’L MOVE METHOD No B A Q D etc. E P C Type, Sink, Source Flow; Unit Qty, Direction Flow, Volume Manpower Characteristics Type of Move, etc. Equipment

Issues in Material Handling  Use to analyze flow within and between:  Receiving  Storage  Production  Warehousing  Shipping

The Twenty Principles of Material Handling 1. Planning principle- Plan all material handling & storage activities to obtain maximum overall operating efficiency. 2. System principle- Integrate as many handling activities as is practical into a coordinated system of operations, covering vendor, receiving, storage, production, inspection, packaging, warehousing, shipping, transportation & customer. 3. Material flow principle- Provide an operation sequence & equipment layout optimizing material flow.

The Twenty Principles of Material Handling 4. Simplification principle- Simplify handling by reducing, eliminating, or combining unnecessary movement and/or equipment. 5. Gravity principle- Utilize gravity to move material wherever practical. 6. Space utilization principle- Make optimum utilization of building cube. 7. Unit size principle. Increase the quantity, size, or weight of unit loads or flow rate. 8. Mechanization principle. Mechanize handling operations.

The Twenty Principles of Material Handling 9. Automation principle. Provide automation to include production, handling & storage functions. 10. Equipment selection principle. In selecting handling equipment, consider all aspects of the material being handled-the movement & the method to be used. 11. Standardization principle. Standardize handling methods as well as types & sizes of handling equipment. 12. Adaptability principle. Use methods & equipment that can best perform a variety of tasks & applications where special purpose equipment is not justified.

The Twenty Principles of Material Handling 13. Dead weight principle. Reduce ratio of dead weight of mobile handling equipment to load carried. 14. Utilization principle. Plan for optimum utilization of handling equipment & manpower. 15. Maintenance principle. Plan for preventive maintenance & scheduled repairs of all handling equipment. 16. Obsolescence principle. Replace obsolete handling methods & equipment when more efficient methods or equipment will improve operations.

The Twenty Principles of Material Handling 17.Control principle. Use material handling activities to improve control of production inventory and order handling. 18.Capacity principle. Use handling equipment to help achieve desired production capacity. 19.Performance principle. Determine effectiveness of handling performance in terms of expense per unit handled. 20.Safety principle. Provide suitable methods & equipment for safe handling.

Unit Load Principle  Follows traditional thinking $/unit Quantity The greater the amount moved per trip, the less the cost per unit moved Maximize Unit Load

Unit Load Principle • But: – Creates more inventory – Requires expensive, heavy-duty material handling equipment – Increases lag time between operations ->poor process communication, slower reaction to quality problems – Requires more floor space WASTE!

Example

Selecting Material Handling Methods Systematic Approach 1. Define the problem

Selecting Material Handling Methods 2. Analyze the problem • Observe activities • Obtain layouts, flow patterns, schedules, etc. • Obtain information on existing material handling equipment • Analyze situation by Twenty Principles of Material Handling, and/or forms • Can activities be combined, simplified, eliminated???

Selecting Material Handling Methods 3. Identify possible solutions Organize meeting with: • material handlers • machine operators • supervisors • support engineers 4. Evaluate alternatives Meet again to rate alternatives

Improvement of MH Systems  Cellular Manufacturing  Eliminate Handling  Eliminate Storage  Eliminate Inventory  Eliminate waste due to poor quality KEYS:  Efficient layout, scheduling, problem prevention

Conveyor Systems • Reduce handling costs • Better coordination of product thru processes • Design WIP level into material handling system

Conveyors

Advantages of Conveyors

Disadvantage of Conveyer

Close-Loop Conveyers A basic closed-loop conveyor is a nonreversible, continuous-operating system with carriers such as hooks, trays, and clamps attached to the conveyor that are not removed during normal operations.

Example The parts with their fixtures are loaded at one station, and the final assemblies are unloaded at the same station or in its very close vicinity. Other stations in the assembly process are placed along the conveyor and perform their tasks as the conveyor is moved at a constant speed. The carriers are uniformly spaced, and the distance between them is controlled by the size of the family of parts that is scheduled for production.

An Abstraction of Closed-loop Conveyers

Advantages of Closed-loop Conveyer  Material handling is reduced considerably by depositing the parts fixtures at the starting point, conveniently allowing the operators to use them in reloading the conveyor.  Workers are paced by the speed of the conveyor as they work off it.  Material handling between the stations by operators is eliminated.  The speed of the conveyor can be adjusted to suit different production rates and various products.  The conveyor speed can be adjusted to compensate for the learning curve effect on the line, allowing it to run more slowly initially and at an increased speed as learning takes place.  Conveyors can be (and often are) used as temporary storage.  In the case of job changeover, the conveyor speed is the slower of the two job speeds until the old job is completely replaced by the new job on the line.

Operational Problems  At a loading station, no empty carriers were available when a loading operation was to be performed.  At an unloading station, no loaded carriers were available when an unloading operation was to be performed.

Principles of Conveyor Design  Uniformity principle: Materials should be uniformly distributed over the conveyor.  Capacity principle: The carrying capacity of the conveyor must be greater than or equal to the system throughput requirements.  Speed principle: The speed of the conveyor (in terms of the number of carriers per unit time) must be within the permissible range, defined by loading and unloading station requirements and the technological capability of the conveyor.

A Conveyer with Hooks

Illustration 1 1st Cycle 2nd Cycle 1~100 101~200 201~300 301~400 1~100 101~200 201~300 301~400 Illustration 2

Simple Analysis Techniques Queuing Analysis  Mathematical analysis of queues (waiting lines which occur whenever the current demand for service exceeds the current capacity to provide that service).

Simple Analysis Techniques Queuing Analysis  Suitable for “quick and dirty” evaluations when a high degree of detail is not necessary. System Arrivals Server (s) Departure Arrival Rate Service Rate

FORMULAS For M/M/1 Model = avg. arrival rate = avg. service rate U = utilization = 1 W = avg. wait time in system = Wq = avg. wait time in queue = Lq = avg. length of queue = L = avg. number of “customers” in system = Pn = probability that there are n customers in the system n Pn = 1- P0 = 1-

Waiting Cost Type I. Internal Customers Example: Forklift truck drivers Cost: Lost productivity of drivers Type II. External customers Example: People waiting for cabs Cost: ?? E[WC] = CW[E(n)] SERVICE COSTS Total Cost: S(server cost) = S(CS) THUS TC = CW[E(n)] + S(CS)

Cost Function E[TC] = E[WC] + E[SC] E[SC] E[TC] Cost E[WC] No. of servers

Example #1 Tool Crib Storage Service Time Inter-arrival time 60 sec/arr. 50 sec/service

Example #1 = 1/60 = 1 arrivals/min. = 1/50 = 1.2 services/min. Idle Time of Server = P0 = 1 - / = 1-1/1.2  16.7% Assume:1. Service Attendant Paid $12.00/hour 2. Customers (machine oper) paid $16.00/hour Cost of Servers E[SC] = 8 hrs/day $12.00/hour = $96.00/day Cost of Machine Operators Waiting for Service plus Service) L = /( - ) = 1/(1.2-1) = 5 E[WC] = $16.00/hr (5 people) (8 hrs/day) = $640.00/day

Example #1 E[SC] 640 $ 96 E[WC] 1 Number of Servers

MH Cost Justification of Cellular Manufacturing Compare: I. Functional Layout --Fork truck Maint. Labor: $10,000/yr Parts: $1,000/yr Driver: $30,000/yr Truck Cost: $4,000/yr ($20,000/5 yrs) $45,000/yr *1 yr = 2000 hrs

MH Cost Justification of Cellular Manufacturing Compare: II. Cellular Layout --Fork truck --Cart/Basket Cart Cost: $40/yr ($200/5 yr) 4 Baskets Cost: $24/yr ($120/5 yrs) $64/yr

Automatic Guided Vehicles (AGV‟s)  Unmanned vehicle for in-plant transportation on manufacturing & assembly areas  Two types of guidance  free ranging  dead reckoning + lasers or transponders  path restricted  induction wires in the floor  AGV  fork lift truck with RF-communication

Design & operational control of AGV  AGV system  track layout  number of AGVs max. throughput capacity  operational control  Traffic control: zones Track layout  infrastructure  location of pick-up & drop-off stations  buffer sizes  congestion/blocking  tandem configuration

Operational Transportation Control  Job control: (routing & scheduling of transportation tasks)  Traffic control: Traffic rules  Goal: minimize empty travel + waiting time  Single load:  Production control  transportation control  flow shop  job shop  Centralized control, or  all tasks are concurrently considered  Decentralized control  FEFS: AGV looks for work (suited for tandem configuration)  Think-ahead, or  combine tasks to routes Performance indicators:  No think-ahead •Throughput •Throughput times

Combination 1: Separated/no think-ahead Centralized Control  On-line priority rules: 1. transportation task assignment (tasks wait), or 2. idle vehicle assignment (idle vehicles wait) Ad 1: push/pull (JIT), e.g. FCFS, MOQRS Push  sometimes “shop locking” Ad 2: NV, LIV Combination 2: Integrated/think-ahead AGV‟s ~ parallel machines empty travel time ~ change-over time transportation time ~ machine time Shop floor Scheduling

Combination 3: Separated/think-ahead  Centralized control a. Without time windows  Only routing  Minimize empty travel time by simulated annealing: Options available:  determine optimal route each time a new task arrives problem: a task may stay at the end of the route  Periodic control time horizon (length?) b. With time horizons  Simulated annealing

Combination 3: Separated/think-ahead machine 1 loaded trip machine 2 empty trip machine 3 machine 1 machine 2 loaded trip empty trip machine 3 machine 1 loaded trip machine 2 empty trip machine 3

3.21 -Evaluate & Select the Best Space Plan Selection & implementation  Best layout  cost of installation + operating cost  compare future costs for both the new & the old layout  Other considerations  selling the layout  assess and reduce resistance  anticipate amount of resistance for each alternative  Causes of resistance:  inertia  uncertainty selection detailed design  loss of job content or  … detailed design selection  Minimize resistance by  participation Alternative layouts/ block plans with  stages columns, m/c positions etc

Micro Space Plan - Work cells Micro-space-plan SPUs are work cells, which are small, self-contained work units with several machines/ operations, usually 2 to 10 in quantity. The equipment & people are situated together in a compact, sequential arrangement. Cells are effective wherever coordination of sequential operations dominates a process. Cells are classified by their range of products & processes; which are: Dedicated Cell - A work cell that produces only a single product with multiple, sequential processes. Dedicated cells have a high degree of product focus. Group Technology (GT) Cell - GT cells produce a family of related products. They have similar, but not necessarily identical, processes. GT cells have a moderate degree of product focus. Functional Cell - these cells use a single process, such as heat treat, that operates on a wide variety of unrelated products. Functional cells are process focused.

Micro Space Plan - Work cells Project Cell - these cells produce a wide variety of unrelated products using multiple processes. A small tool-and-die shop is, effectively, a project work cell. Project cells have neither product nor process focus. Project and functional cells are outside the common notion of cellular operations. Nevertheless, they can achieve some of the advantages of traditional cells. They use the same design approach. The approach follows the pattern of macro-layouts. It has 4 sequential tasks as shown. Each task has a procedure diagram that shows the design steps & the sequences.

4.01 - Analyze & Select Products This determines the focus for the cell by deciding which products each SPU will process. The deliverable for this task is a list of products for each cell & a design production volume for each product. To allow product focus, the groups should consist of similar products that use a similar process & sequence. To 4.02

4.02 – Designing the Process It is similar to Task 03.11; it redesigns the production process by reviewing the type, size, & capacity of equipment. It often result in process improvement & elimination of process elements that add no value. In Block 1, the equipment required is selected. Block 2 refines the process by eliminating Non-value-added elements exploring & other options. Blocks 3 through 6 estimates set-up, equipment, process, & personnel times.

Designing the Process Traditional time study assumes that personnel, process, & machine times are the same. This assumption comes from an underlying supposition that one person operates a single machine, which often is invalid. The figure shows that, after an initial set up, a person loads the machine & is then idle while the machine operates. That person then unloads the machine & inspects the part. The machine is idle during the inspection. The process time is the total throughput time. Disparities between person & machine times can generate huge productivity increases, as people can load a machine & then move to another process while the machine operates. Longer the process time, more advantageous this becomes. Explore the possibilities for improving set-up times thru‟ SMED etc.

4.02 – Designing the Process Process time is the time a part spends in process, & do not include queuing time. If a process has a curing time, then it is the part of the process time. Block 7 uses the time estimates to calculate the number of equipment & people needed. Block 8 selects the external lot size, which is the volume produced after a changeover of the cell & is different from internal lot size. Selecting an appropriate lot size requires balancing of 3 cost factors: set-up costs, inventory costs & piece costs. If set-up costs were the only factor, infinitely large lots would be the result. Inventory costs limit the maximum lot size. Larger lots call for more inventories, which consumes resources like space, working capital & insurance. It requires tracking & support systems & bears the risk of becoming. Piece costs are those costs that remain constant regardless of lot size. They include direct labor, material & overhead. The more valuable the material & labor, the faster inventory costs rise.

4.02 – Designing the Process Set-up reduction can have dramatic effects on the shape of the total cost curve. It may become so flat that the lot size issue becomes irrelevant.

4.03 - Planning Cell Infrastructure Infrastructure support Process without directly contributing to product creation, which may or may not be tangible. The following infrastructure are elements: 1. External Containers 2. Internal Containers; 3. External Material Handling; 4. Internal Material Handling; 5. External Production Control; 6. Internal Production Control 7. Internal Lot Size (Transfer Batch); 8. Equipment Balance Method; 9. People Balance Method; 10. Quality Assurance; 11. Supervision; 12. Compensation System; & 13. Operator Assignments & Skills.

External/Internal Containers Materials & products move to & from the cell in external containers. Containers protect the product & improve handling characteristics by converting small units to larger handling units. They also assist in visual control of materials. Containers should never be larger than the lot size. Thus, large /medium containers should not be specified for a small lot size. After the container selection, the structure of its route & the type of handling equipment that will be used are specified in Block 2. Handling must accommodate smaller loads & more frequent moves if switched over to cellular layout from functional layout. This affects the container route structure & the type of equipment employed. Block 9 identifies internal containers, based on the conventions mentioned previously. While internal containers have a somewhat different role than the external containers, their purpose is the same. If the internal lot size is greater than single-piece, the container should match it. This facilitates transfer & makes it easy to track internal lots.

External production control Five basic methods - direct link, broadcast, kabana, material requirements planning (MRP), & re order point (ROP) - are available for coordinating production at above hierarchy. Direct link - In this, processes have a physical link. Product moves from 1st to the 2nd process without queues, buffers, or delays. The processes start & stop together. They operate with identical lot sizes, usually single- piece. There is no WIP between them. It is feasible only if processes are balanced & have same cycle time. They must be synchronized, have the same products, & be co-located. Broadcast - It is slightly flexible than direct link. In this system, a schedule dictates the rate & product mix for the final operation. The same schedule is applied to upstream operations, which make their components in the same order (the line set order) as the final operation. They deliver these components just ahead of the scheduled assembly time. Co-location is not necessary; however, the capability to make the same lot size - usually a single piece - is. These are seen on subassembly lines feeding assembly lines.

External production control Kanban – Small stock is kept at each work unit. Users of these items pull small quantities from the stock frequently with a slip/card, which acts as a signal to the work unit to replenish the stock. Kanban systems sense & respond to changing demand very quickly. They operate with very low inventories, short set-ups & small lot sizes. It makes production coordination redundant. Material requirements planning has database of BOM, routings, lead times for each operation & inventory; & use computers to produce a schedule for each work center, track production, plan capacity, collect costs etc based on forecast of end-product demand. In theory, a modern MRP system is almost the ultimate in scheduling, but not in practice as the database are rarely perfect. Reorder point (ROP) systems maintain a significant stock of each item. As users withdraw items, the stock declines & when it reaches a level, (reorder point – that lasts till the replacement arrives) signal is raised to replace the stock. It can be manual or computerized. When demand is steady, ROP systems work well.

External production control ROP systems are superficially similar to kanban. They differ in the following ways: 1. ROP system generate a replenishment signal only at the reorder point, usually days/weeks. Kanban systems generate a replenishment signal with each withdrawal, often minutes/hours. 2. Compared to ROP systems, kanban systems operate with frequent replenishments & small lot sizes. 3. ROP systems usually have a separate warehouse or scheduling system. Shop floor usually operate on a kanban system. 4. ROP works well for small/low-cost items; simplicity of operation overcomes the inherent inefficiency of the system. When conditions allow, direct link is the most desirable method. ROP is the least desirable. Work cells generally work best with direct link, broadcast, & kanban systems. In a facility, several of these systems may exist at the same time; e.g. Kanban might be used internally & MRP for purchased items.

Internal production control Internal production control method is linked to balancing method. Several production control methods may be used for different parts of the cell. Some of external production control applies here also. Direct link, broadcast, & kanban work well within cells. MRP & ROP usually work only in functional or process focused work cells. Circulation is also a viable option. This method uses mobile operators to carry a product or transfer a batch through each operation. If the cell requires several operators, they follow each other around the cell. Circulation also balances people. Because each operator does every job, he or she always has the same workload. Guidelines for internal production control: 1. Use direct link for balanced & synchronized operations. 2. Use kanban where the cell has short process times, heavy equipment use, or long distances between operations. 3. Use circulation for portable products where distances are short. There also should be inherent equipment balance or excess capacity on some equipment.

Internal Lot Size After the internal production control, the internal lot size is identified. This is Block 6. The internal lot size, also known as the transfer batch size, is the number of units processed at each operation before transfer to the next operation. It is smaller than the external lot size in a work cell. This has many advantages: work flows more quickly, less WIP, quick response & quality feedback. The smallest internal lot size consistent with certain limiting factors is desirable. The ideal internal lot size is one-piece. Equipment batching is one factor that might limit selection of a small or one-piece internal lot size. Cycle time & transfer time also may be limiting factors for this.

Balancing The Work In Work cells Work balance within a manufacturing cell or workcell is a primary determinant of the cell's efficiency and one of several design issues. Work balance is a lot more involved than most people recognize. This page introduces the topic and the downloadable paper addresses these issues in considerable detail. Production Line Balance Henry Ford's highly balanced assembly line has been the dominant production model for almost 80 years. But such lines have significant problems. Most short-cycle lines that appear to be balanced actually have significant balance losses that exceed 20%. The Effects of Imbalance Excess Inventory Idle Equipment Idle People Team Dissension Individual Frustration Production lines can have perfect average or static balance and yet be highly unbalanced from cycle-to-cycle (dynamic balance). Understanding these factors is important when selecting balance methods.

Balancing Methods - People & Equipment In Cellular Manufacturing it is important to divorce people from machines or workstations. This is often a difficult paradigm shift but it is necessary for three reasons: 1. The time required for a person at a given workstation may differ from the machine time. 2. The workstations in a workcell or production line rarely have perfect balance and therefore most workstations have idle periods. 3. People are more flexible than machines and can utilize balance methods that are unavailable for equipment. Equipment Balancing equipment is often unnecessary or even counterproductive. There are important advantages from excess equipment capacity in a work cell. The methods available for equipment balance are: Inherent Balance Queuing Surplus Capacity

Equipment Balance 1. The workload on equipment in a cell must be balanced to improve cell productivity, equipment utilization & work flow. Block 8 identifies the equipment balance method; static or dynamic. 2. Static balance means that equipment time of each operation is same to avoid a bottleneck. It is crucial if a cell contains a high-cost or critical equipment. 3. Dynamic balance is the balance between operations from work piece to work piece. The process time for operations may vary. Differences in product may cause this, or the process may vary inherently. 4. Dynamic imbalance can reduce throughput of the entire cell because of interference between operations; e.g. operation 1 has completed a work piece but operation 2 cannot accept it immediately. At other times, operation 2 may be ready for the next work piece but operation 1 is not finished. This reduces capacity of the cell & can occur even when the average balance appears good.

Equipment Balance 5. There are three methods for correcting static or dynamic imbalance: queuing, inherent, & excess equipment. 6. Queuing uses short queues between operations. This ensures that downstream operations always have a work supply & that upstream operations always have a destination for their work. Queuing can compensate for dynamic imbalance, but it cannot compensate for long-term static imbalance. 7. The inherent method employs processes with low process time variability & identical process times. Thus, the balance is inherent in process selection & does not need a compensating mechanism. Inherent balance usually is difficult to achieve. 8. Excess equipment uses surplus capacity to compensate for imbalance. The work cell is designed around high-cost or critical equipment. Low cost or secondary equipment with surplus capacity is sized & selected. The consequence of imbalance, idle equipment, then can do little harm. This method is useful if utilization of people is more important than equipment utilization.

People Balance Methods 1. In cell design, operators are assigned to tasks (Block 14). Task assignments may be fixed, floating, or circulatory. 2. A fixed system assigns an operator to a workstation; a traditional “1 person-1 machine" approach. If the entire cell has fixed assignments, there must be inherent balance. Fixed assignment is used with queuing for equipment balance & production control. 3. The floating system assigns an operator a primary & a secondary set of tasks. As the workload fluctuates & signal is given, the operator will move from the primary to the secondary, which may be a primary task for a neighboring operator. Operator mobility & multi-skill are integral to a floating assignment. 4. It needs a mechanism to signal the task change, which may be a verbal call from next operator who is falling behind; e.g. Operator 1 have a set of tasks that occupy 80% of his/her time. Operator 2, immediately adjacent, has a primary set of tasks that overload him/her by 10%. So, operator1 is given a secondary assignment to assist operator2.

People Balance 5. When several tasks are assigned to the same person, that person must have the ability to move between them on the layout. 6. Each person in a cell should have same work time & effort level, else people perceive a work imbalance as unfair, which may cause frustration & dissension in the team. In addition, an idle person costs more than most idle machines. 7. The methods available for balancing people are: Queuing Circulation Fixed Assignment Floating Balance Surplus Capacity Inherent Balance 8. Queuing not only balances equipment, it also balances people. It works well for short process times & varied product mix; can be used with fixed or floating task assignments. 9. Queues can be an effective signal. A queue that is too short or too long is the signal to move people to their secondary tasks. It needs skilled people, teamwork, & team spirit; & will be highly satisfying for the team members.

People Balance 10. Circulation applies if internal idle time is very short or very long & is based on the difference between the person time & the equipment time. If the internal idle time is 15 Sec or more, the person initiates the process for a particular piece, picks up the previous piece, & then moves to the next process. It is a "leapfrog" procedure. 11. The next person to arrive substitutes a new work piece for that just completed & moves on with it. Circulation also works well when there is excess capacity on secondary equipment. Here, the secondary equipment may remain idle for much of the time. 12. To be effective, circulation must have short travel distances & people who are competent in all the processes. The circulation method not only balances equipment & people within the cell, but it also tells the operator which task to perform. 13. The method of assigning tasks to operators is selected based on refined process chart & the element time‟s spreadsheet after analyzing each operation for whether a person's time or the process's time will govern.

People Balance 14. A large differential that allows a person to move to another operation should use the former. These times are noted on the process chart. 15. Next, divide the total time for all elements by the number of workers. This is the time of work for each person if the work is perfectly balanced & is used as a target for assigning tasks. Then, max. work for a person is determined. This is the available time in a day divided by the design volume. It is also avg cycle time for the cell. 16. The tasks that occupy more than one person's time are divided, & those that occupy less than one person's time are combined. While doing this, designers look first at adjacent tasks & then for those that might occur on opposite sides of a U-shaped cell. 17. Each person must have compatible tasks. One way is to concentrate special skills such as welding capability. While full cross training is the ideal, there will be occasions when the cell will have to work without a full set of cross-trained people.

Quality Assurance 1. Deciding which quality assurance method(s) to employ is done in Block 12. Quality assurance to be an integral part of the process. 3 approaches are available: inherent, inspect/reject, & SPC/TQM. 2. The inherent approach ensures quality by selecting processes that inherently produce few or no defects. There is little point in elaborate quality inspection when defects are negligible & inconsequential. This situation is rare, but it does occur. The inspect/reject method introduces a formal inspection for quality. When defects occur, the product is repaired or scrapped. This is often used with a separate inspection department & a policing approach. 3. The preferred quality assurance methods: use TQM combined with SPC, in which, workers monitor their own processes & quality with the emphasis on prevention & process control. TQM/SPC works well in a cellular layout. Inspection points, procedures, & quality standards to be specified, which is an integral part of cell design & shall not be assigned to an outside quality department.

Supervision 1. The final step in Task 04.03 is identifying the methods of supervision & compensation, which can enhance or disrupt the cell's performance. 2 methods of supervision are: command & control & self-managed teams. 2. command & control is the traditional thought: „Supervisors think & give orders; workers follow the orders without question‟, which works well in army. But industries use some level of empowerment & participation by self-managed work team, also referred to as a cybernetic work team. Such teams organize & execute their own activities, but it requires experience, training, appropriate management & teamwork for maximum effectiveness. So, the cell layout must enhance teamwork & the feeling of team responsibility of cybernetic work teams. 3. Management sometimes assigns supervisors with no training & little temperament for teamwork. Even with proper training & coaching, it takes a team 3 to 18 months to mature fully. 4. If an organization is unwilling to dedicate the resources & patience required for team-based cells then the cells shall be designed to function with conventional supervision approaches.

Supervision 5. Compensation affects quality, productivity, & teamwork. Most common compensation systems comprise salary, individual incentives, group incentives, pay-for-knowledge, & hybrid systems. 6. Salary is the traditional compensation system. It works well in most situations depending on other motivation factors like team spirit, self- actualization, job enrichment & fear of punishment. 7. A salary system with incentives for incremental cell output, productivity & quality thru‟ teamwork & self-actualization is best. 8. Individual incentive systems reward output quantity, but often inhibit teamwork & usually have a negative impact on quality. They reward job knowledge only for the task at hand. Individual incentive systems work well only where narrow jobs require a single worker. They require a process with high intrinsic quality or a product that is easily inspected for quality. 9. The difficulties of individual incentives disappear with a group incentive system, where team members receive the same pay on the team's output.

Supervision 10. Group incentive system encourages teamwork & enhance job knowledge. But, group incentives rarely promote quality, rather they encourage conspiratorial behavior. 11. If the job requires significant skills, a pay-for-knowledge system is appropriate, in which people receive salary based on skills & knowledge. This system fits well in many cellular environments where team efforts & cross-functional skills are required. Pay-for-knowledge systems are not easy to implement. Such systems can cause teamwork dysfunction as members vie for job experience that will enhance their pay. Productivity & quality may become secondary considerations. 12. Some adopt hybrid systems: a baseline pay rate on seniority or position basis along with incentives for productivity, quality & skills. Such systems are complex, often generate consequences like people manipulating the system to maximize their pay. 13. a team-based cellular structure is unlikely to work well in an individual incentive environment. Pay-for-knowledge systems have little purpose in a functional facility.

4.04 – Layout the Cell  SPUs - workstations/ equipment  Affinities -there will be many A & E affinities & few I & O affinities  straight line, serpentine, U & inverted- U are most common shapes.

Straight Line Cells 1. Multiple Material Entry Points 2. Good Material Flow 3. Short Distances 4. Difficult People Balance 5. Poor Flexibility 6. Poor Communication 7. Difficult Macro Layout Ford devised straight assembly line to improve material flow, where a product moves from one end to the other in a straight line, passing/stopping at each workstation. It is well-suited if large no. of people work at short-cycle tasks. Straight-line hinder communication & Balance is difficult as the opportunity to float is limited. Once balanced, it is difficult to maintain if the line speed or product mix changes. Long, thin line arrangements are often difficult to fit into existing buildings & macro-layouts.

1. Several Entries 4. Accommodates Many Processes 2. Good Material Flow 6. Easy to Balance 3. Short Distances within Zones 7. Good Flexibility 4. Easy Macro Layout 8. Fair Communication Incoming Material Serpentine cells take long lines & weave them back & forth to fit building & layout features. It is more compact than Incoming Material & subassembly the straight-line cell. It allows better communication & zone floating; Incoming Material sacrifices the ideal material flows of the straight-line arrangement & offer less storage at Incoming Material the line.

1. High People Flexibility 2. Easy Balance/Rebalance U-Shaped Cells 3. Good Communication 4. Good Material Flow 5. Short Distances 6. Single Material Entry Point 7. Good Quality Feedback 8. Multi-skilled Operators U cells allow people to rearrange their work patterns with the change of volume or product mix & hence highly flexible. They work with floating assignments, circulation & fixed assignments. It makes communication easy. Bringing of material to the interior of the U is difficult. This may not work well for intensive assembly work with many different parts & significant on-line storage. U-shape cells are limited in size. As the U becomes larger, communication between people diminishes.

Inverse U-Shaped Cells Features 1. Good Communication 2. Good Material Flow 3. Short Distances 4. Multiple Material Entry Point The inverse U is a variation that allows more line storage & reasonably good communication but is less flexible than U-shaped cell. Actual cells can have many variations & combinations of these basic shapes.

Group Technology Workcells The popularity of Cellular Manufacturing & workcells has grown, fueled by the adoption of the Toyota Production System (TPS) & it's namesake, Lean Manufacturing. The developers of TPS, Taichi Ohno & Shigeo Shingo, were pragmatists. The evolution of TPS was by trial & error-- long on practice; short on theory. It is in the form of rules & edicts that reflect what worked & what did not, which helped to propagate the system throughout Toyota & the supplier base. But, without a strong theoretical underpinning, it is difficult to know if the rules apply in dissimilar situations. The really big problem involves volume & variety. Toyota's U-shaped, balanced workcells do not work when orders are unpredictable, routings vary & work balance changes. Load leveling is all very well, but customers are not interested in your takt time. Group Technology workcells manufacture many products that are similar, but not identical. In job shop situations a cell may produce hundreds of different parts. Demand is often erratic & no single part has enough volume for its own cell.

Group Technology Workcells Unlike Henry Ford, manufacturers cannot just make any color today. Fragmented markets, competition & sophisticated customers have created dizzying product variety-- often with lower volume. Numerous firms have choked on this diversity. Increasing inventory, slower product introductions, confusion & declining quality indicate an inability to deal with increasing variety. Group Technology (GT) tames this variety beast. Group Technology examines products, parts & assemblies. It then groups similar items to simplify design, manufacturing, purchasing & other business processes. Process planning for the remaining parts is easier & more consistent. Computer Aided Process Planning (CAPP) is an important tool for this. It uses the coded similarities to plan consistently, standardize & accurately estimate costs. It then assigns the part to a GT Mfg. cell. Group Technology cells reduce throughput time & WIP. They simplify schedules, reduce transportation & ease supervision.

GT & Manufacturing Some of the more dramatic and tangible savings come from improved setups & tooling cost. Setup time reductions bring smaller lot sizes & smaller queues which mean faster throughput, shorter lead times & decreased inventory. GT sometimes eliminates the need for expensive NC equipment. Combined with NC, GT simplifies programming, fixturing & tooling. Group Technology is the most effective technique available for addressing the variety demanded by today's customers. It allows customization of product with standardization of process. A more fundamental approach to cell design is necessary and the results may look very different than the Toyota model. Group Technology can: Enable Cellular Manufacturing Reduce Engineering Cost Accelerate Product Development Improve Costing Accuracy Simplify Process Planning Reduce Tooling Cost Simplify Purchasing Help With Value Stream Mapping

Workflow In a GT cell operations & sequence often vary. The average work time at each machine varies. Work times also change from part number to part number. Process Technology GT workcells usually favor smaller-scale, less automated process technologies that changeover easily & fit the lower volumes. Machine shops are an exception. CNC machining fits very well with GT cells. CNC technology does not really cut metal faster, it reduces setup & combines operations. Batch Size As in the Toyota system, small batches are better. But the high variety may not allow the kind of setup reductions that we can achieve with only a few products. Moreover, customers often order in lots & the batch size must reflect this. As a result, production batches tend to be larger & more varied than in a Toyota cell, but, still, much smaller than in functional arrangements.

Transfer Batch The transfer batch or internal lot size also tends to be larger than in Toyota cells. This is the number of pieces moved together between operations. The inventory in the transfer batch must be large enough to balance operations within the cell. GT cells are often larger than Toyota cells. The greater distances between workstations require a larger transfer batch to amortize travel time over more pieces. One piece flow may not work. Layout Toyota strongly favors U-shaped layouts that give direct material flow & allow operators to balance their work in several ways. This is very sensible when the routes are all identical. GT cells should be designed around the most common workflow routes but they must also accommodate less common routings. This gives rise to unusual arrangements such as L-shapes and X-shapes.

GT and Other Departments GT produces savings & benefits in almost every area of the business. It combines tasks, equipment, gages, tooling & schedules into larger groups of similar elements for similar solutions. Purchasing can group similar parts & achieve quantity discounts. For non-standard purchased parts, grouping helps suppliers achieve savings & reduce price. Accounting is simpler in a GT environment. Here costs are collected by cell & family rather than individual part. A simple allocation procedure assigns costs accurately within families.

Communication & Teamwork If number of workstations are high, it is best to link a series of cells, where each cell feeds the next so that advantages of the smaller, self-contained operation is maintained. Enhanced communication due to freewheeling structure of team based micro-space plan pool the knowledge of members, which can replace monetary motivation by intrinsic motivation & fulfills the higher needs of Maslow's Hierarchy: social, self-esteem, & self-actualization. Cross-functional teams bring people together from different parts of functionally. Problem- solving teams assemble to resolve problems. Work teams function together in their daily tasks. A space plan can promote or inhibit teamwork. If tasks & people are isolated & independent, team building is not possible. Conversely, team building must support a space plan, else, the space plan will not be effective. The features of work cells that promote teamwork are: freedom of movement between tasks, visual control, visual freedom, conversational proximity, & bulletin boards.

Communication & Teamwork Cellular operations is best suited for self-managed work teams (SMWT) of 2-10 persons. SMWT need coaching on interpersonal & managerial skills. When they become effective after going thru‟ a dynamic, but predictable, growth cycle, they plan & conduct their work at minimal supervision. Till then, patience from management is needed. Conveyors, walls & equipment can hinder movement. Without free movement, members fall back on a one-person, one-task mentality. Visual control of inventory & resources in the form of kanban boards, queues & personnel locations will help team members to see delays & unbalanced work, anticipate upcoming jobs, identify & correct quality problems, so that each member can take appropriate action to correct imbalances or variations. Visual Controls: kanban flags, warning lights & queues built into the work cell design with clear lines of sight. Visual communications build trust, & a clear view of the total operation helps to control overall process. Partitions, walls, & large equipment interfere with both teamwork & process control.

Generating Layout Alternatives  Objective  Develop a good or optimal block layout  Block layout  A two dimensional top down view arrangement of departments in a facility  Departments are represented as rectangles (or shapes constructed from rectangles) with the relative area of the department captured by the size of the rectangle Office Fab Paint Stores Maint Assembly Sup 311

Generating Layout Alternatives  Procedures  Construction procedures • “Greenfield” layout, the layout of a new facility  Improvement procedures • Changes/ improvements to existing facilities  Not a critical distinction 312

Computer-Aided Layout  Computer-aided layout supports layout design  Generate many layout alternatives in a short time  Helps conduct what if and sensitivity analysis  Modeling the problem helps understand the system perspective  Commercial software  Most algorithms have not yet been commercialized although they are available as research code and used by consultants  Educational software is available • We will use one package 313

Computer-Aided Layout  Inputs 1.From-To chart and/or 2.Activity relationship chart  You may have the flexibility to map the A,E,I,O,U,X scale to different numerical scales  Can change results by changing the scaling  Can have negative values for relationships (e.g., X) 3.Usually, the building footprint  May be restricted to a rectangular footprint 314

Computer-Aided Layout  Layout development criteria  When constructing a layout, an algorithm implemented on a computer needs specific criteria to compare alternative layouts  These criteria may differ depending on the form of input data characterizing flow/relationships  The criteria must be computable (quantitative) and is referred to as the objective function of the layout problem 315

Computer-Aided Layout  From-to chart as input data  The objective will be to construct a layout to minimize required movement costs over a specific time period N otation: m T he num ber of departm ents in the layout. f ij T he departm ent i to departm ent j flow (fro m -to data). c ij T he cost of m oving a load one distance unit from departm ent i to departm ent j . d ij T he distance from departm ent i to departm ent j . z T otal m ovem ent cost per tim e period (th e objective function value). 316

Computer-Aided Layout  The objective function can be expressed as: m m z f ij c ij d ij i 1 j 1  This is called a distance-based objective function  The fij and cij are input data  If the cij= 1 for all i and j, z= total travel distance per time period 317

Distance Measure  The dij’s are normally rectilinear centroid to centroid distance  The dij’s change as a function of department location and shape  Rectilinear distance’s If the centroid of department 1 is located at ( x1 , y1 ) and the centroid of department 2 is located at ( x 2 , y 2 ) then d 12 | x1 x2 | | y1 y2 | 318

Example 319

Example 320

Example 321

Example:  Four depts. are to be located on a 600’ x 1000’ bldg. The expected personnel traffic flows and area requirements for departments are shown in the tables below a. Develop a block layout design using SLP Dept. A B C D Dept. Dimen. A 0 250 25 240 A 200’x200’ B 125 0 400 335 B 400’x400’ C 600’x600’ C 100 0 0 225 D 200’x200’ D 125 285 175 0 322

“Optimizing” a Layout  Finding the optimal layout that minimizes either of the objective functions described is a very difficult problem (computationally)  General methods for exploring the space of layouts have been applied  Pairwise exchange method • A general approach used to improve an existing layout  Graph-based method  Other methods • “Metaheuristics” (IE 425) – Employed in a software application we will use 323

Pairwise Exchange Method  This is a heuristic search procedure  Not guaranteed to find the optimal layout (except under certain circumstances)  In general, this is a method that should be computerized but is applicable by hand in small examples  We will examine an example with the cost of material movement used as a criteria to evaluate layouts (distance based objective)  If all costs are the same (=1), this is total distance  Activity relationship charts and adjacency based objectives can be used 324

Pairwise Exchange Method  Algorithm 1. “Layout” = Initial layout. “Cost” = Distance based cost for “Layout” 2. For each possible pairwise exchange of departments in “Layout”, calculate the total distance based cost 3. If the lowest cost from the pairwise exchanges is > “Cost”, go to 4  Else “Layout” = Layout with the lowest cost “Cost” = Lowest cost from step 2  Go to 2 4. End with “Layout” and “Cost” as the final layout and cost 325

Pairwise Exchange Method  Example from text  Assume distances are centroid to centroid  Assume travel from dept i to j is symmetric Flow-between chart Department 1 2 3 4 1 - 10 15 20 Dept. 2 - 10 5 3 - 5 4 - Distances Department 1 2 3 4 1 - 1 2 3 Dept. 2 - 1 2 3 - 1 4 - 326

Pairwise Exchange Method (a) Iteration 0 1 2 3 4 TC2134(1-2) = 10(1) + 15(1) + 20(2) + 10(2) + 5(3) + 5(1) = 105 TC3214(1-3) = 10(1) + 15(2) + 20(1) + 10(1) + 5(2) + 5(3) = 95 TC4231(1-4) = 10(2) + 15(1) + 20(3) + 10(1) + 5(1) + 5(2) = 120 TC1324(2-3) = 10(2) + 15(1) + 20(3) + 10(1) + 5(1) + 5(2) = 120 TC1432(2-4) = 10(3) + 15(2) + 20(1) + 10(1) + 5(2) + 5(1) = 105 TC1243(3-4) = 10(1) + 15(3) + 20(2) + 10(2) + 5(1) + 5(1) = 125 327

Pairwise Exchange Method (b) Iteration 1 3 2 1 4 TC3124(1-2) = 10(1) + 15(1) + 20(2) + 10(1) + 5(1) + 5(3) = 95 TC1234(1-3) = 10(1) + 15(2) + 20(3) + 10(1) + 5(2) + 5(1) = 125 TC3241(1-4) = 10(2) + 15(3) + 20(1) + 10(1) + 5(1) + 5(2) = 110 TC2314(2-3) = 10(2) + 15(1) + 20(1) + 10(1) + 5(3) + 5(2) = 90 TC3412(2-4) = 10(1) + 15(2) + 20(1) + 10(3) + 5(2) + 5(2) = 105 TC4213(3-4) = 10(1) + 15(1) + 20(2) + 10(2) + 5(1) + 5(3) = 105 328

Pairwise Exchange Method (b) Iteration 2 2 3 1 4 TC3214(1-2) = 10(1) + 15(2) + 20(1) + 10(1) + 5(2) + 5(3) = 95 TC1324(1-3) = 10(2) + 15(1) + 20(3) + 10(1) + 5(1) + 5(2) = 120 TC3421(1-4) = 10(1) + 15(3) + 20(2) + 10(2) + 5(1) + 5(1) = 125 TC2134(2-3) = 10(1) + 15(1) + 20(2) + 10(2) + 5(3) + 5(1) = 105 TC3142(2-4) = 10(2) + 15(1) + 20(1) + 10(3) + 5(1) + 5(2) = 100 TC4123(3-4) = 10(1) + 15(2) + 20(1) + 10(1) + 5(2) + 5(3) = 95 329

Graph-based Method  Often applied when using an adjacency-based objective  A method that uses a graph (nodes connected by arcs) to represent departments and their adjacencies to other departments  Departments = nodes  If an arc connects two departments, they are adjacent • Arcs have values that represent adjacency relationships  Finding the best layout amounts to finding the best graph 330

Graph-based Method 331

Graph-based Method  Procedure for generating an adjacency graph 1.Find the highest valued adjacency relationship as the starting nodes connected by an arc (break ties randomly) 2.The third department selected will have the largest total relationship value with the two departments selected in step 1 3.The next departments to enter are selected one at a time based on the highest total relationship values added when the department is placed on the “face” of the existing graph  A face is a region bounded by arcs of the graph 332

Graph-based Method 333

Graph-based Method (2)  A department block layout still needs to be constructed from the graph in a manner similar to SLP 334

4.05 - Selecting the Best Plan Ongoing interaction is integral to teamwork. Members must be able to converse during their work. This calls for an area small enough for effective conversation. It also requires a reasonable ambient noise level. While hand signals & electronic communications are partial substitutes, face-to-face conversation is far better. Effective teams use bulletin boards for many purposes. Bulletin boards help a team communicate with itself, & with the outside world. Prominent space for a bulletin board should be provided. At micro-level, design iteration is more straightforward & simpler than at the higher levels as the material flow is more obvious. Normally, socio- technical considerations, material flow analysis & financial methods dominate the selection. The selection tools are: Simplified cost estimates; PNI analysis; Simulation; & Weighted factor analysis.

Selecting the best plan A simplified cost estimate & PNI analysis bring strong consensus. Simulation tests proposed changes on existing systems & predicts the performance of new systems. It condenses lengthy processes & most useful when actual physical experimentation is not viable. Computer simulation create a model of proposed system using animation software to depict system operation visually, which is then subjected to various inputs & constraints to study the results. Unlike statistical methods, animation reveals problems effectively. Simulation cannot model creativity, teamwork, & motivation, which are among the most important benefits of work cells. Weighted factor analysis can assist with more difficult decisions & is probably the most universal & versatile decision tool. The evaluation procedure is the same as that for Task 03.2L at the macro-level  Installation  planning Implementation  Periodic checks after installation

Planning Safe Facilities  Pedestrian Traffic Flow  Requiring people to walk through activity areas in order to reach their desired destination  Proper Storage  #1 complaint from facility managers is a lack of adequate storage space  Supervision  Design for ease of supervision  CCTV 337

Proper Materials Miscellaneous  Floors  ADA, OSHA, Fire, Health  Walls codes  Ceilings  Humidity control  Glass  Lighting  Fixtures  Signage 338

A Safe Facility is:  Well planned, designed, constructed  Built with minimal hazardous conditions  Well managed  Active risk management program 339

Thank You!!!!!!!!

Industrial Facility Design & Layout Planning

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