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Operat ionsManagement
Top ic 3Plan t Layou t
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Outline
Object ive of Layou t
Facto rs Inf luenc ing Layout Decis ion
Types o f Layou t
Line Balanc ing for Product Layout
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Definitions:
Plant Layout refers to the arrangement ofphysical facilities such as machineries,furniture's departments, workstations,
equipments etc. with in the factory/buildingin the conversion process.
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Plant Layout
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Object ive of Layou t
The object ive of layout strategy
is to develop a cos t-effect ive
layout that will meet a firmscompet it ive needs /requ irements
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Layout Design Considerations
Higher ut i l izat ion of space, equipment,
and peop le
Improved f low of info rmat ion, mater ials ,
or peop le
Impro ved emp loyee morale and safer
wo rk ing condi tions Improved custom er/c l ient interact ion
Flexibi l i ty
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1) Type of product / Nature of product
Concerns whether the product is a good or a service, the aspect of product design and quality
standard and whether it is for stock or made to order products. product layout is suitable for uniform products whereas process layout is more appropriate for
custom-made products.
2) Characteristics of the materials and material handling equipment.
The characteristics of materials such as size, shape, fragility, bulkiness and weight, influences
the types of material handling equipment to be used, such as cranes, conveyors and
automatic carts to deliver and store material.
3) Nature of manufacturing process
The size, number and sequences of machines required in the technology of the production
process needs to be considered.
Type of machinery: General purpose machines are often arranged as per process layout while
special purpose machines are arranged according to product layout. Repairs and maintenance: machines should be so arranged that adequate space is available
between them for movement of equipment and people required for repairing the machines.
4) Volume of production
5) Types of production/operation methods
In assembly line industries, product layout is better. In job order or intermittent manufacturingon the other hand, process layout is desirable.
6
Factors Influencing Layout Decision
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Others factors can be considered such as:
6) Fac to ry b ui ld in g: The nature and size of the building determines the floor space available for
layout. While designing the special requirements, e.g. air conditioning, dust control, humidity
control etc. must be kept in mind.
7) Hum an needs : Adequate arrangement should be made for washroom, lockers, drinking water,
toilets and other employee facilities, proper provision should be made for disposal of effluents, if
any.
8) Pl an t en v ir onmen t: Heat, light, noise, ventilation and other aspects should be duly considered,
e.g. paint shops and plating section should be located in another hall so that dangerous fumes
can be removed through proper ventilation etc. Adequate safety arrangement should also be
made.
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Factors Influencing Layout Decision
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Types of Layout
1. Off ice layout
2. Retai l layou t
3. Warehouse layout
4. Fixed-pos i tion layou t
5. Process-or iented layou t
6. Work-cel l layou t7. Product -or iented layou t
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Good Layouts Consider
1. Mater ial handl ing equ ipment
2. Capaci ty and space requ irements
3. Env i ronment and aesthet ics
4. Flows of in format ion
5. Cost of mov ing between various
work areas
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OFFICE LAYOUT
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Office Layout
1. Off ic e layou t : Posi t ions wo rkers, theirequipment, and spaces/of f ices to prov ide for
movement of in format ion
Grouping of workers, their equipment, and spaces toprovide comfort, safety, and movement of
information Movement of
information is maindistinction
Typically in state offlux due to frequenttechnologicalchanges
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Office Layout
Figure 9.1
RELATIONSHIP CHART
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RETAIL LAYOUT
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2. Retail layou t: A l locates shel f space
and responds to customer behavior
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Supermarket Retail Layout
Object ive is to maxim ize pro f i tabi l i ty
per square foo t of f loo r space
Sales and pro f i tabi l i ty vary d irect ly
w i th custom er exposure
Design maxim izes p roduct exposureto customers depends on;
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Five Helpful Ideas forSupermarket Layout
1. Locate high-draw i tems around the per iphery of
the sto re (most interested by customer)
2. Use prominen t locat ions fo r h igh-impu lse and
high-margini tems (high profit)
3. Dis tr ib ute power i tems to bo th sides of an ais le
and disperse them to increase view ing o f other
i tems (attractive)
4. Use end-aisle locat ions(end of rows)
5. Convey miss ion o f s to re th rough carefu l
posi t ioning of lead-of f department (in-charge)
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Store Layout
Figure 9.2
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Retail Slotting
Manufactu rers pay fees to retai lersto get the retai lers to d isp lay (slot)
thei r product
Contr ibut ing factors Lim ited shelf space
An increas ing number of new
productsBetter inform at ion about sales
through POS (point o f sales) data col lect ion
Closer con tro l of inventory
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Retail Store Shelf Space
PlanogramComputerized tool
for shelf-space
managementGenerated from
stores scanner
data on sales
Often supplied bymanufacturer
5 facingsSh
am
p
oo
Sh
am
p
oo
Sh
am
p
oo
Sh
am
p
oo
Sh
am
p
oo
Con
dition
er
Con
dition
er
Sh
am
poo
Sh
am
poo
Sh
am
poo
Sh
am
poo
Con
di
tion
er
2 ft.
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Servicescapes
Ambient condi tions - background
character is t ics such as l ight ing , sound,
sm ell , and temperature
Spat ial layout and funct ional i ty - whichinvolve cus tomer
circu lat ion path p lann ing,
ais le characterist ics , and
produc t group ing Signs, sym bo ls, and
art i facts - characterist ics
of bu i ld ing design that
carry social sign i f icance
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WAREHOUSELAYOUT
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3. Warehouse layou t: Addresses trade-
offs between space and mater ial
handl ing
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Warehouse Layout
Object ive is to op tim ize trade-offs between
handl ing costs and costs assoc iated wi th
warehouse space
Maximize the total cube of the warehouse ut i l ize its fu l l volume whi le maintain ing low
material handl ing costs
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Warehousing and Storage
Layouts
A l l costs associated with the transact ion
Incom ing transpor t
Storage
Find ing and moving material
Outgoing transpo r t
Equipment, peop le, mater ial, supervis ion ,
insurance, depreciat ion
Minim ize damage and spoi lage
Material Hand l ing Cos ts
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Warehousing and Storage
Layouts Warehouse dens i ty tends to vary
inversely w ith the number of di f ferent
i tems stored
Au tomated Storage and
Retrieval Systems (ASRSs)
can sign i ficant ly improve
warehouse product iv ity byan est imated 500%
Dock locat ion is a key
design element
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a. Cross-Docking
Mater ials are moved d irect ly from
receiv ing to sh ipping and are not
placed in storage
in the warehouse
Requ ires t ightschedu l ing and
accurate shipments,
bar code or RFID
ident i f icat ion used foradvanced shipm ent
no t i f icat ion as mater ials
are un loaded
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Warehouse LayoutCross-Dock ing Layou t
Shipping and receiv ing docks
Office
Shipping and receiv ing docks
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b. Random Stocking
Typ ically requires automat ic ident i f icat ionsystems (A ISs) and effect ive info rmation
sys tems
Random assignment of stock ing locations
al lows more ef f ic ient use of space
Key tasks
1. Main tain li st o f open locat ions
2. Main tain accurate records
3. Sequence items to m in imize t ravel , p ick t ime
4. Comb ine p ick ing o rder s
5. Ass ign c lasses of i tems to par ticu lar areas
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c. Customizing
Value-added act iv i t ies perfo rmed at
the warehouse
Enable low cost and rapid responsestrategies
Assemb ly of components
Loading sof tware
Repairs
Custom ized label ing and packaging
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10/15/2014 NY - KJP 585 2009 28Shipping and receiv ing docks
Off ice
Cus
tom
iza
tion
Conveyor
Storage racks
Staging
Warehouse LayoutTradit ional Layou t
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FIXED - POSITION
LAYOUT
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Fixed-Position Layout
4. Fixed-pos i tion layout: Addresses thelayout requ irements of large, bu lky
pro jects such as ships and bui ld ings
Product remains in one place
Workers and equipment come to site
Complicating factors
Limited space at site
Different materials
required at differentstages of the project
Volume of materialsneeded is dynamic
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PROCESS ORIENTEDLAYOUT
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5. Process -or ien ted layou t: Deals w ith
low -vo lume, high -variety product ion
(also cal led job shop o r interm it tent
product ion)
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Process Orien ted Layou t
Like machines and equipment are grouped
together
Flexible and capable of hand l ing a wide
var iety of products or services
Disadvantages-Schedul ing can be di f ficul t
and setup , mater ial hand l ing , and labor co sts
can be high
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Surgery
Radio logy
ERtr iageroom
ER Beds Pharmacy
Emergency room admiss ions
Bil l ing/exit
Laborator ies
Process Oriented Layout
Patient A - brok en leg
Patient B - errat ic h eartpacemaker
Figure 9.3
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Process-Oriented Layout
Arrange work centers so as tom inim ize the cos ts o f mater ial
handl ing
Basic cost elements are
Number of loads (or peop le) moving
between centers
Distance loads (or peop le) movebetween centers
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Process-Oriented Layout
Minim ize cos t = Xi jCi jn
i = 1
n
j = 1
where n = total number of wo rk centers or
departments
i , j = ind ividual departments
Xi j= number of loads moved fromdepartment i to department j
Ci j= cos t to move a load between
department i and department j
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Process Layout Example
1. Construct a from-to matrix
2. Determine the space requ i rements
3. Develop an in it ial schematic d iagram4. Determ ine the cos t o f th is layou t
5. Try to improve the layou t
6. Prepare a detai led p lan
Arrange six departments in a factor y to
m inim ize the mater ial hand l ing costs.
Each department is 20 x 20 feet and the
bu i lding is 60 feet long and 40 feet w ide.
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Department Ass embly Paint ing Machine Receiv ing Shipping Test ing
(1) (2) Sho p (3) (4) (5) (6)
Ass embly (1)
Paint ing (2)
Machin e Shop (3)
Receiving (4)
Shipping (5)
Testi ng (6)
Number of loads per week
50 100 0 0 20
30 50 10 0
20 0 100
50 0
0
Process Layout Example
Figure 9.4
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Area 1 A rea 2 A rea 3
Area4 A rea 5 A rea 6
60
40
Process Layout Example
Receiving Shipp ing Test ing
Department Department Department(4) (5) (6)
Figure 9.5
Ass embly Paint ing Machine ShopDepartment Department Department
(1) (2) (3)
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100
50
50
10
100
30
Process Layout Example
Interdepartmental Flow Graph
1 2 3
4 5 6
Figure 9.6
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Process Layout Example
Cost = $50 + $200 + $40(1 and 2) (1 and 3) (1 and 6)
+ $30 + $50 + $10(2 and 3) (2 and 4) (2 and 5)
+ $40 + $100 + $50(3 and 4) (3 and 6) (4 and 5)
= $570
Cost = Xi jCi jn
i = 1
n
j = 1
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Process Layout Example
30
50
50
50 100
100
Revised Interdepartmental Flow Graph
2 1 3
4 5 6
Figure 9.7
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Process Layout Example
Cost = $50 + $100 + $20(1 and 2) (1 and 3) (1 and 6)
+ $60 + $50 + $10(2 and 3) (2 and 4) (2 and 5)
+ $40 + $100 + $50(3 and 4) (3 and 6) (4 and 5)
= $480
Cost = Xi jCi jn
i = 1
n
j = 1
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Area 1 A rea 2 A rea 3
Area4 A rea 5 A rea 6
60
40
Process Layout Example
Receiving Shipp ing Test ing
Department Department Department(4) (5) (6)
Figure 9.8
Paint ing Ass embly Machine ShopDepartment Department Department
(2) (1) (3)
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Computer Software
Graph ical app roach only works for
smal l prob lems
Compu ter programs are available to
so lve bigger prob lems
CRAFT
ALDEP
CORELAP
Facto ry Flow
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CRAFT Example
1 2 3 4 5 6
1 A A A A B B
2 A A A A B B
3 D D D D D D
4 C C D D D D
5 F F F F F D
6 E E E E E D
PATTERN
TOTAL COST 20,100EST. COST REDUCTION .00ITERATION 0
(a)
1 2 3 4 5 6
1 D D D D B B
2 D D D D B B
3 D D D E E E
4 C C D E E F
5 A A A A A F
6 A A A F F F
PATTERN
TOTAL COST 14,390EST. COST REDUCTION 70.ITERATION 3
(b)Figure 9.9
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Computer Software
Three dimensional visualization software
allows managers to view possible
layouts and assess process, material
handling,
efficiency,
and safety
issues
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WORK CELL LAYOUT
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Work Cel l Layou t
6. Work cel l layout: Arranges mach ineryand equ ipment to focus on
product ion of a s ing le product or
group of related p roduc ts
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Work Cells
Reorganizes peop le and mach ines
in to groups to focu s on s ing le
products or product groups
Group techno logy ident i f ies
products that have sim i lar
character ist ics for part icular cel ls
Volume must jus t i fy cel ls
Cel ls can be reconf igured as
des igns or volume changes
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Advantages of Work Cells
1. Reduced work-in-process inventory2. Less floor space required
3. Reduced raw material and finishedgoods inventory
4. Reduced direct labor5. Heightened sense of employee
participation
6. Increased use of equipment and
machinery7. Reduced investment in machinery and
equipment
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Improving Layouts Using
Work Cells
Current layou t - workersin sm all closed areas.Cannot increase output
wi thou t a third work er andthird set of equipm ent. Imp roved layou t - cross -t ra inedwork ers can assist each other.May be able to add a third wo rkeras addi t ional outpu t is needed.
Figure 9.10 (a)
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Improving Layouts Using
Work Cells
Current layout - stra ightl ines make it hard to b alancetasks b ecause work may no tbe div ided evenly
Imp roved layout - in Ushape, wo rkers have betteraccess. Four c ross-t ra ined
work ers were reduced.
Figure 9.10 (b)
U-shaped l ine may redu ce employ ee movement
and space requirements whi le enhancing
communicat ion, reduc ing the num ber of
wo rkers, and faci l i tat ing inspect ion
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Requirements of Work Cells
1. Ident if icat ion of fam i lies of products
2. A h igh level of t rain ing, f lex ib i l ity
and empowerment of employees
3. Being sel f-con tained, w i th i ts own
equ ipment and resources
4. Test (poka-yoke) at each stat ion inthe cell
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Staffing and Balancing Work
CellsDeterm ine the takt t ime
Takt tim e =
Total work t ime avai lable
Uni ts required
Determ ine the numberof operators requ ired
Workers requ ired =Total operat ion time requ ired
Takt tim e
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Staffing Work Cells Example
600 Mirrors per day requiredMir ror prod uct ion s cheduled for 8hours per dayFrom a work balance chart
total operat ion tim e
= 140second s
Stand
ard
timerequ
ire
d
Operat ions
Ass emble Paint Test Label Pack forsh ipment
60
50
40
30
20
10
0
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Staffing Work Cells Example
600 Mirrors per day requiredMir ror prod uct ion s cheduled for 8hours per dayFrom a work balance chart
total operat ion tim e
= 140second s
Takt time = (8hrs x 60mins) / 600uni ts= .8mins = 48second s
Workers required =Total operat ion tim e requ ired
Takt tim e
= 140 / 48 = 2.91
W k B l Ch
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Work Balance Charts
Used for evaluating operation times inwork cells
Can help identify bottleneck
operations Flexible, cross-trained employees can
help address labor bottlenecks
Machine bottlenecks may requireother approaches
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Focused Work Center andFocused Factory
Focused Work Center
Ident i fy a large fam i ly of sim i lar pro duc ts
that have a large and s table demand
Moves product ion from a general-pu rpose,
pro cess -or iented faci l i ty to a large work cel l
Focused Factory
A focused wo rk cell in a separate faci l i ty
May be focused by produc t l ine, layou t,
qual ity, new produc t intro du ct ion, f lexibi l i ty,
or o ther requirements
C
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Focused Work Center andFocused Factory
Table 9.2
Work Cell Focused Work Center Focused Factory
A work cell is a temporary
product-oriented
arrangement of
machines andpersonnel in what is
ordinarily a process-
oriented facility
A focused work center is a
permanent product-
oriented arrangement of
machines and personnelin what is ordinarily a
process-oriented facility.
A focused factory is a
permanent facility to
produce a product or
component in a product-oriented facility. Many
focused factories
currently being built
were originally part of a
process-oriented facility.
Example: A job shop withmachinery and
personnel rearranged to
produce 300 unique
control panels.
Example: Pipe bracketmanufacturing at a
shipyard.
Example: A plant toproduce window
mechanism for
automobiles.
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PRODUCT ORIENTED
LAYOUT
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Produc t Orien ted Layout
7. Product-o r ien ted layout: Seeks thebest personnel and machine
u t i l izat ion s in repet i t ive or
cont inuous p roduct ion
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Repetitive and Product-Oriented Layout
1. Vo lume is adequate fo r h igh equ ipmentut i l izat ion
2. Produc t demand is s tab le enough to jus t if y h igh
investment in special ized equipment
3. Product is standard ized or approach ing a phaseof l i fe cycle that just i f ies investment
4. Suppl ies o f raw mater ials and components are
adequate and of uni form qual i ty
Organized around products or fami l ies o f
s im i lar high -vo lume, low -var iety products
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Product-Oriented Layouts
Fabric at ion l ine
Bu i lds components on a ser ies of machines
Machine-paced
Requ ire mechanical or engineering changes to
balance Assembly l ine
Puts fabricated parts to gether at a series o f
works ta t ions
Paced by work tasks
Balanced by moving tasks
Bo th types o f l ines must be balanced so that the
t ime to perform the wo rk at each stat ion is the same
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McDonalds Assembly Line
Figure 9.12
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Disassembly Lines
Disassembly is being considered in new
product designs
Green issues and recycling standards are
important consideration
Automotive
disassembly is
the 16thlargestindustry in
the US
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Assembly-Line Balancing
Object ive is to min im ize the imbalancebetween mach ines or personnel whi le
meet ing required ou tput
Starts with the precedence relat ionsh ips
1. Determ ine cyc le time
2. Calcu late theoret ical
min imum number of
workstat ions
3. Balance the line byassigning speci f ic
tasks to wo rkstat ions
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Example: Developing a precedence
diagram.
We want to develop a precedence
diagram for an electrostatic copier thatrequires a total assembly time of 66
minutes. The table below gives the tasks,
assembly times, and sequencerequirements for the copier.
Line Balancing - Example
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Line Balancing - Example
This means thattasks B and Ecannot be don eunt i l task A hasbeen com pleted
Performance Task Must Fol lowTime Task Listed
Task (m inutes) Below
A 10 B 11 A
C 5 BD 4 BE 12 AF 3 C, DG 7 FH 11 EI 3 G, H
Total tim e 66
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Line Balancing - Example
Performance Task Must Fol lowTime Task Listed
Task (m inutes) Below
A 10 B 11 A
C 5 BD 4 BE 12 AF 3 C, DG 7 FH 11 EI 3 G, H
Total tim e 66I
GF
C
D
H
B
E
A
10
1112
5
43
711 3
Figure 9.13
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I
GF
C
D
H
B
E
A
10
1112
5
43
711 3
Figure 9.13
Performance Task Must Fol lowTime Task Listed
Task (m inutes) Below
A 10 B 11 A
C 5 BD 4 BE 12 AF 3 C, DG 7 FH 11 EI 3 G, H
Total tim e 66
Line Balancing - Example
480availablem ins per day
40 un its required
Cycle t ime =
Product ion t ime
available per dayUnits required per day
= 480 / 40= 12m inutes per uni t
Min imumnumber of
workstat ions=
Time for task i
Cycle t ime
n
i = 1
= 66 / 12= 5.5or 6stat ions
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Wing Component Example
I
GF
C
D
H
B
E
A
10
1112
5
43
711 3
Figure 9.13
Performance Task Must Fol lowTime Task Listed
Task (m inutes) Below
A 10 B 11 A
C 5 BD 4 BE 12 AF 3 C, DG 7 FH 11 EI 3 G, H
Total tim e 66
480availablem ins per day
40 un its required
Cycle t ime = 12mins
Min imum
workstat ions= 5.5or 6
Line-Balancing Heuris t ics
1. Longest task time Choose the available task withthe longest task time
2. Most following tasks Choose the available task withthe largest number of followingtasks
3. Ranked positionalweight
Choose the available task forwhich the sum of following tasktimes is the longest
4. Shortest task time Choose the available task withthe shortest task time
5. Least number offollowing tasks
Choose the available task withthe least number of followingtasks
Table 9.4
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480availablem ins per day
40 un its required
Cycle t ime = 12mins
Min imum
workstat ions= 5.5or 6
Performance Task Must Fol lowTime Task Listed
Task (m inutes) Below
A 10 B 11 A
C 5 BD 4 BE 12 AF 3 C, DG 7 FH 11 EI 3 G, H
Total tim e 66
Line Balancing - Example
I
GF
H
C
D
B
E
A
10 11
12
5
4
3 7
11
3
Station1
Station
2
Stat ion4
Stat ion5
Stat ion 3
Stat ion 6
Figure 9.14
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Performance Task Must Fol lowTime Task Listed
Task (m inutes) Below
A 10 B 11 A
C 5 BD 4 BE 12 AF 3 C, DG 7 FH 11 EI 3 G, H
Total tim e 66
Line Balancing - Example
480availablem ins per day
40 un its required
Cycle t ime = 12mins
Min imum
workstat ions= 5.5or 6
Eff ic iency = Task times
(Actual number of wo rkstat ions ) x (Largest cyc le t ime)
= 66minutes/ (6stat ions) x (12m inutes)
= 91.7%
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Layout Strategies
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Layout Strategies
Table 9.1
Office Retail Warehouse (storage)
Examples
Allstate Insurance
Microsoft Corp.
Krogers
Supermarket
Walgreens
Bloomingdales
Federal-Moguls
warehouse
The Gapsdistribution center
Problems/Issues
Locate workersrequiring frequent
contact close to one
another
Expose customer tohigh-margin items
Balance low-coststorage with low-cost
material handling
Layout Strategies
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Layout Strategies
Table 9.1
Project
(fixed position)
Job Shop
(process oriented)
Examples
Ingall Ship Building
Corp.
Trump Plaza
Pittsburgh Airport
Arnold Palmer Hospital
Hard Rock Caf
Olive Garden
Problems/Issues
Move material to the limited
storage areas around the
site
Manage varied material
flow for each product
Layout Strategies
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Layout Strategies
Work Cells
(product families)
Repetitive/ Continuous
(product oriented)
Examples
Hallmark Cards
Wheeled Coach
Standard Aero
Sonys TV assembly
line
Toyota Scion
Problems/Issues
Identify a product family, buildteams, cross train team
members
Equalize the task time at eachworkstation