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  1. 1. Managing Engineering and Technology Third Edition Babcock and Morse <ul><li>Managing Production Operations </li></ul><ul><li>Chapter 11 </li></ul>
  2. 2. Advanced Organizer
  3. 3. Chapter Objectives <ul><li>Describe position of engineer in the production process </li></ul><ul><li>Describe considerations in planning manufacturing facilities </li></ul><ul><li>Be able to use production planning tools </li></ul><ul><li>Recognize different methods for production planning and control </li></ul>
  4. 4. Engineering Positions in Production Activity <ul><li>Maintenance Engineer </li></ul><ul><li>Industrial Engineer </li></ul><ul><li>Process Engineer </li></ul><ul><li>Quality Engineer </li></ul><ul><li>Test Engineer </li></ul><ul><li>Safety Engineer </li></ul><ul><li>Manufacturing Engineer </li></ul><ul><li>Environmental Engineer </li></ul>
  5. 5. Planning Manufacturing Facilities <ul><li>Area selection </li></ul><ul><li>Community selection </li></ul><ul><li>Site selection </li></ul><ul><li>Common errors </li></ul>
  6. 6. Area Selection <ul><li>Location of markets </li></ul><ul><li>Location of materials </li></ul><ul><li>Transpiration facilities </li></ul><ul><li>Labor supply </li></ul><ul><li>Location of other plants and warehouses </li></ul>
  7. 7. Community Selection <ul><li>Managerial preferences </li></ul><ul><li>Community facilities </li></ul><ul><li>Community attitudes </li></ul><ul><li>Community, government and taxation </li></ul><ul><li>Financial inducements </li></ul>
  8. 8. Site Selection <ul><li>Size of site </li></ul><ul><li>Topography </li></ul><ul><li>Utilities </li></ul><ul><li>Waste Disposal </li></ul><ul><li>Transportation facilities </li></ul><ul><li>Land costs </li></ul>
  9. 9. Common Errors in Facility Location Analysis <ul><li>Labor cost miscalculations </li></ul><ul><li>Inadequate labor reservoir </li></ul><ul><li>Lack of distribution outlets </li></ul><ul><li>Underestimated importance of taxes </li></ul><ul><li>Purchasing unsuitable building </li></ul>
  10. 10. Layout Planning Definition <ul><li>Comprised of all activities involved in selection for and transportation routes among departments, processes, work centers, machines, and service functions. </li></ul>
  11. 11. Objectives of Layout Planning <ul><li>Minimize materials-handling costs </li></ul><ul><li>Reduce congestion of personnel and material </li></ul><ul><li>Increase safety of personnel </li></ul><ul><li>Increase labor efficiency </li></ul><ul><li>Improve morale </li></ul>
  12. 12. Objectives, cont. <ul><li>Facilitate communication and coordination </li></ul><ul><li>Provide operations flexibility </li></ul><ul><li>Increase quality of working life </li></ul><ul><li>Fung shui </li></ul>
  13. 13. Tools in Production Planning <ul><li>Economic Order Quantity </li></ul><ul><li>Break-even Charts </li></ul><ul><li>Learning Curves </li></ul>
  14. 14. Production Planning and Control Systems <ul><li>Material Requirements Planning (MRP) </li></ul><ul><li>Manufacturing Resource Planning (MRP II) </li></ul><ul><li>Synchronized Manufacturing </li></ul><ul><li>Just-In-Time (JIT) </li></ul>