Chapter7

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  • 1 This presentation covers the quantitative material in Chapter 7. This slide can be used to introduce the material and basic concepts.
  • This slide presents the material on Managing Global Operations and builds on advance.
  • This slide presents the important points discussed in the section on Factors Affecting Location Decisions and builds automatically.
  • This slide presents the important points discussed in the section on Factors Affecting Location Decisions and builds automatically.
  • The first step is establish weights and scores for the important factors.
  • Instead of evaluating all possible locations, you can also find the theoretically ‘best’ location and simply select the alternative closest to it. That is what this example shows. The examples so far have assumed we had locations that we needed to evaluate. But we may be in the position of having to determine where to look for locations with none in hand. The center of gravity approach can be used in such situation. Though the map would look the same, the locations would be the population centers of the regions, not specific locations. The next series of slides presents Example 7.2.
  • Adding in a worksheet, the basic data is displayed.
  • The next series of slides presents Example 7.3. The series builds in steps to the conclusion of the Example showing the development of key equations along the way.
  • To present the break-even analysis, the basic data is displayed.
  • The data is removed for a clean view of the graph.
  • 2 The first series of slides presents the difference between relative and absolute locations based on Figure 7.4. This slide shows the initial configuration.
  • 3 This slide shows the revised layout.
  • 9 This slide completes the sequence.
  • 13 This slide completes the sequence.
  • 14 This sequence is based on Figure 7.6 and shows the basic job shop layout prior to the introduction of GT and builds automatically.
  • 17 This slide completes the sequence.
  • 21 This slide completes the sequence.
  • 26 This slide shows the basic trip matrix.
  • 27 This slide adds in the number of trips between departments.
  • 30 A list of the rating factors is added to the chart.
  • 31 The closeness factors are entered on the chart.
  • 33 The actual codes are added to the chart.
  • 35 Returning to the basic block layout, we list four decision guidelines derived from the previous analyses. This series of slides covers Example 7.5.
  • 40 This is the final layout which meets all of the decision criteria (something not always achieved in the real world).
  • 42 We return to the trip matrix for the next example. This series covers Example 7.6.
  • 46 We obtain the ld score for the new layout. The value of this analysis lies in the ability to compare alternatives. This slide advances automatically
  • 63 The final section of the presentation deals with line balancing (Examples 7.7 and 7.8) as presented in the Chapter. We will follow the Big Broadcaster example. This slide advances automatically.
  • 65 The first data is the list of the work elements, the time they require, and the required precedent elements. This is from Example 7.7.
  • Chapter7

    1. 1. Chapter 7 Location and Layout
    2. 2. Managing Global Operations <ul><li>Other Languages </li></ul><ul><li>Different Norms and Customs </li></ul><ul><li>Workforce Management </li></ul><ul><li>Unfamiliar Laws and Regulations </li></ul><ul><li>Unexpected Cost Mix </li></ul>
    3. 3. Location Decisions - Manufacturing <ul><li>Favorable Labor Climate </li></ul><ul><li>Proximity to Markets </li></ul><ul><li>Quality of Life </li></ul><ul><li>Proximity to Suppliers </li></ul><ul><li>Proximity to Parent Company </li></ul><ul><li>Utilities, Taxes, and Real Estate Costs </li></ul>
    4. 4. Location Decisions - Services <ul><li>Proximity to Customers </li></ul><ul><li>Transportation Costs and Proximity to Markets </li></ul><ul><li>Location of Competitors </li></ul><ul><li>Site-Specific Factors </li></ul>
    5. 5. Location Health-Watch North Example 7.1 Erie Pittsburgh Harrisburg Philadelphia Scranton Uniontown State College
    6. 6. Location Health-Watch North Example 7.1 Location Factor Weight Score Total patient miles per month 25 4 Facility utilization 20 3 Average time per emergency trip 20 3 Expressway accessibility 15 4 Land and construction costs 10 1 Employee preference 10 5 Erie Pittsburgh Harrisburg Philadelphia Scranton Uniontown State College
    7. 7. Location Health-Watch Center of Gravity Approach Example 7.2 North B A C E G F D (2.5, 4.5) [2] (2.5, 2.5) [5] (5, 2) [7] (7, 2) [20] (9, 2.5) [14] (8, 5) [10] (5.5, 4.5) [10] x (miles) East 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 0 y (miles)
    8. 8. Location Health-Watch Center of Gravity Approach Census Population Tract ( x , y ) ( l ) lx ly A (2.5, 4.5) 2 B (2.5, 2.5) 5 C (5.5, 4.5) 10 D (5, 2) 7 E (8, 5) 10 F (7, 2) 20 G (9, 2.5) 14 Example 7.2 North B A C E G F D (2.5, 4.5) [2] (2.5, 2.5) [5] (5, 2) [7] (7, 2) [20] (9, 2.5) [14] (8, 5) [10] (5.5, 4.5) [10] x (miles) East 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 0 y (miles)
    9. 9. Location Break-Even Analysis
    10. 10. Location Break-Even Analysis Fixed Costs Variable Costs Total Costs Community per Year per Unit (Fixed + Variable) A $150,000 $62 B $300,000 $38 C $500,000 $24 D $600,000 $30 Example 7.3
    11. 11. Location Break-Even Analysis Q (thousands of units) 0 200 400 600 800 1000 1200 1400 1600 2 4 6 8 10 12 14 16 18 20 22 A best B best C best Break-even point 6.25 14.3 A D B C (20, 1390) (20, 1200) (20, 1060) (20, 980) Annual cost (thousands of dollars) Break-even point Figure 7.1
    12. 12. Absolute Locations Figure 7.4 Frozen foods Dry groceries Bread Vegetables Meats (a) Original layout
    13. 13. Absolute Locations (b) Revised layout Figure 7.4 Frozen foods Dry groceries Bread Vegetables Meats
    14. 14. Layout Types Foundry Milling machines Lathes Grinding Painting Drills Office Welding Forging (a) Layout of a job shop Figure 7.5
    15. 15. Layout Types Station 1 Station 2 Station 3 Station 4 (b) Layout of a production line Figure 7.5
    16. 16. Group Technology Figure 7.6 Drilling D D D D Grinding G G G G G G Milling M M M M M M Assembly A A A A Lathing Receiving and shipping L L L L L L L L
    17. 17. Group Technology (a) Jumbled flows in a job shop without GT cells Figure 7.6 Source: Mikell P. Groover. Automation, Production Systems, and Computer-Aided Manufacturing . Upper Saddle River, NJ: Prentice Hall, 1980, pp. 540–541. Used by permission. Drilling D D D D Grinding G G G G G G Milling M M M M M M Assembly A A A A Lathing Receiving and shipping L L L L L L L L
    18. 18. Group Technology (b) Line flows in a job shop with three GT cells Figure 7.6 Source: Mikell P. Groover. Automation, Production Systems, and Computer-Aided Manufacturing . Upper Saddle River, NJ: Prentice Hall, 1980, pp. 540–541. Used by permission. Cell 3 L M G G Cell 1 Cell 2 Assembly area A A L M D L L M Shipping D Receiving G
    19. 19. Longhorn Machine 60' 90' 2 4 3 6 5 1 Trips between Departments Department 1 2 3 4 5 6 1. Burr and grind — 2 .NC equipment — 3. Shipping and receiving — 4. Lathes and drills — 5. Tool crib — 6. Inspection —
    20. 20. Longhorn Machine 60' 90' 2 4 3 6 5 1 Trips between Departments Department 1 2 3 4 5 6 1. Burr and grind — 20 20 80 2. NC equipment — 10 75 3. Shipping and receiving — 15 90 4. Lathes and drills — 70 5. Tool crib — 6. Inspection —
    21. 21. Longhorn Machine Closeness Rating between Departments Department 1 2 3 4 5 6 1. Burr and grind — 2. NC equipment — 3. Shipping and receiving — 4. Lathes and drills — 5. Tool crib — 6. Inspection — 60' 90' 2 4 3 6 5 1 Closeness Rating Rating Definition A Absolutely necessary E Especially important I Important O Ordinary closeness U Unimportant X Undesirable
    22. 22. Longhorn Machine Closeness Rating between Departments Department 1 2 3 4 5 6 1. Burr and grind — E U I U A 2. NC equipment — O U E I 3. Shipping and receiving — O U A 4. Lathes and drills — E X 5. Tool crib — U 6. Inspection — 60' 90' 2 4 3 6 5 1 Closeness Rating Rating Definition A Absolutely necessary E Especially important I Important O Ordinary closeness U Unimportant X Undesirable
    23. 23. Longhorn Machine Closeness Rating between Departments Department 1 2 3 4 5 6 1. Burr and grind — E U I U A (3,1) (2,1) (1) 2. NC equipment — O U E I (1) (1) (6) 3. Shipping and receiving — O U A (1) (1) 4. Lathes and drills — E X (1) (5) 5. Tool crib — U 6. Inspection — 60' 90' 2 4 3 6 5 1 Explanation Codes Code Meaning 1 Materials handling 2 Shared personnel 3 Ease of supervision 4 Space utilization 5 Noise 6 Employee attitudes
    24. 24. Longhorn Machine <ul><li>Departments 3 and 6 close together </li></ul><ul><li>Departments 1 and 6 close together </li></ul><ul><li>Departments 2 and 5 close together </li></ul><ul><li>Departments 4 and 5 close together </li></ul>Figure 7.7 60' 90' 2 4 3 6 5 1 60' 90' 2 4 3 6 5 1
    25. 25. Longhorn Machine <ul><li>Departments 3 and 6 close together </li></ul><ul><li>Departments 1 and 6 close together </li></ul><ul><li>Departments 2 and 5 close together </li></ul><ul><li>Departments 4 and 5 close together </li></ul>6 1 5 2 Figure 7.8 60' 90' 2 4 3 6 5 1 60' 90' 4 3
    26. 26. Longhorn Machine Example 7.6 60' 90' 2 4 3 6 5 1 Trips between Departments Department 1 2 3 4 5 6 1. Burr and grind — 20 20 80 2. NC equipment — 10 75 3. Shipping and receiving — 15 90 4. Lathes and drills — 70 5. Tool crib — 6. Inspection —
    27. 27. Longhorn Machine Example 7.6 60' 90' 2 4 3 6 5 1 Load Distance Analysis Current Plan Proposed Plan Dept Closeness Distance Distance Pair Factor, l d ld Score d ld Score 1,2 20 3 60 1 20 1,4 20 2 40 1 20 1,6 80 2 160 1 80 2,3 10 2 20 3 30 2,5 75 2 150 1 75 3,4 15 1 15 1 15 3,6 90 3 270 1 90 4,5 70 1 70 1 70 ld = 785 ld = 400
    28. 28. Line Balancing Green Grass, Inc. Big Broadcaster
    29. 29. Line Balancing Big Broadcaster Example 7.7 A Bolt leg frame to hopper 40 None B Insert impeller shaft 30 A C Attach axle 50 A D Attach agitator 40 B E Attach drive wheel 6 B F Attach free wheel 25 C G Mount lower post 15 C H Attach controls 20 D, E I Mount nameplate 18 F, G Total 244 Work Time Immediate Element Description (sec) Predecessor(s)

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