Plan of the lecture

Introduction (Chapter 1)
Facilities planning defined Objectives of facilities planning Continuous facilities planning Significance of facilities planning

Product, process and schedule design (Chapter 2)

INDU 421 - FACILITIES DESIGN AND MATERIAL HANDLING SYSTEMS

Facilities planning defined

Facilities planning determines how an activitys tangible assets best support the activity's objective. Facilities planning:
Facilities location Facilities design
Facilities systems design Layout design Handling systems design

Facilities planning combines the efforts to determine location of a facility and design of it
INDU 421 - FACILITIES DESIGN AND MATERIAL HANDLING SYSTEMS

Facilities location
The placement of the facility Factors:

Closeness (to the market, to the raw materials, to the suppliers, to other facilities, to the competitors) Geographical area (zoning, transportation access, labor, demographics, climate, environmental considerations)

Fixed and recurring costs

INDU 421 - FACILITIES DESIGN AND MATERIAL HANDLING SYSTEMS

Facilities design
Facility systems design Layout design Handling system design

INDU 421 - FACILITIES DESIGN AND MATERIAL HANDLING SYSTEMS

Facility systems design

Structural systems, enclosure systems, atmospheric systems, electrical and lighting systems, communication system, life safety systems, sanitation system, etc. What systems are required Where they are required Integrating the systems into the overall facility

INDU 421 - FACILITIES DESIGN AND MATERIAL HANDLING SYSTEMS

Layout design
Layout for production areas and production-related and support areas Consists of all equipment, machinery and furnishing within the building envelope Determination of:

Block layout - relative locations and sizes of the planning departments Detailed layout - exact location of all equipment and storage areas
INDU 421 - FACILITIES DESIGN AND MATERIAL HANDLING SYSTEMS

Handling system design

The mechanisms needed to satisfy the required facility interactions It consists of materials, personnel, information and equipment-handling systems required to support production Transportation, receiving, storage, retrieval, packaging and shipping, postal system, personnel transit system

INDU 421 - FACILITIES DESIGN AND MATERIAL HANDLING SYSTEMS

Which comes first, the material handling system or the facility layout? BOTH!

The layout and the handling system should be designed simultaneously

INDU 421 - FACILITIES DESIGN AND MATERIAL HANDLING SYSTEMS

Objectives of Facilities Planning

Improve customer satisfaction Increase return on assets (ROA) Maximize speed Reduce costs Integrate the supply chain Support the organizations vision Effectively utilize resources Maximize return on investment (ROI) Be easy to adapt and to maintain Provide safety for employees
INDU 421 - FACILITIES DESIGN AND MATERIAL HANDLING SYSTEMS

Objectives of Facilities Planning

Four main issues when designing a facility:

Customers Internal efficiency Work environment Relationship with vendors

INDU 421 - FACILITIES DESIGN AND MATERIAL HANDLING SYSTEMS

Objectives of Facilities Planning

Technology Customer Government

Optimize the relationships within the organization

Suppliers and Vendors

Environment Optimize the relationships with the outside factors

To Satisfy the Customers

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Main features of facilities

Flexibility
Flexible facilities are able to handle a variety of requirements without being altered

Modularity
Modular facilities include systems that cooperate efficiently over a wide range of operating rates

Upgradeability
Upgraded facilities easily incorporate advances in equipment systems and technology

Adaptability
Considering the
Calendar Cycles Peaks

Selective operability
Understanding how each facility segment operates Allows contingency plans to be put in place
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Facilities planning as continuous activity

Constant reevaluation and replanning of facilities, and continuous improvement Why replanning facilities?

Economic considerations Employee health and safety Energy conservation Community considerations Disabilities considerations Fire protection Pilferage
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Significance of facilities planning

Facilities planning is one of the core areas in industrial engineering field Can learning facilities planning contribute to the economy?
In 1999, $320.8 billion was spent on structures in the US 93% for new structures In average 8% of GNP is spent for new facilities each year (US)

INDU 421 - FACILITIES DESIGN AND MATERIAL HANDLING SYSTEMS

Significance of facilities planning

The size of the investment in new facilities each year makes the field important Adequate facilities planning is not being performed Existing facilities cannot adapt to changes easier 20% to 50% of operating expenses are material handling cost
Facilities planning can reduce these costs by at least 10-30%. If effective facilities planning were applied the annual manufacturing productivity in the US would increase 3 times!

There exists a significant opportunity for improvement of facilities planning process!

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Product, process and schedule design I.

Chapter 2 of the textbook

Product design Process design Schedule design

INDU 421 - FACILITIES DESIGN AND MATERIAL HANDLING SYSTEMS

Product, process and schedule design

Before we start developing alternative facility plans, we should have answers for the following questions
1. What is to be produced? 2. How are the products to be produced?
Answer for the first 5 questions can be obtained from: Product design Process design Schedule design

3. When are the products to be produced?

4. How much of each product will be produced?

5. For how long will the product be produced?

6. Where will the products be produced?

Answer for the last question might be searched outside of the company global sourcing effect

Answers to these questions will help develop the first part of your term projects!
Product design Market analysis Vendors selection Equipment and personnel requirements Location selection Plant layouts designs (using CAD) and selection of the best Materials handling Life cycle analysis of both product and facility

INDU 421 - FACILITIES DESIGN AND MATERIAL HANDLING SYSTEMS

Product, process and schedule design

Product design: Process design:

Product designers determine:

Product specifications (dimensions, material, packaging, etc.)

Process designers determine:

How the product will be produced

Schedule design:

Production planners determine:

Production quantities The schedules for the equipment

WHERE DOES THE FACILITY PLANNER COME IN?

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Facility planner is dependent on timely and accurate input from product, process and schedule designers The need for close coordination among the four groups
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Product Design

Determination of a product to be produced Detailed design of the product

Product Design Product Determination

Based on input from:

Marketing Manufacturing Finance Etc.

Most of the time final decisions are made by the top management
INDU 421 - FACILITIES DESIGN AND MATERIAL HANDLING SYSTEMS

Product Design Product Determination

Uncertainty regarding the mission of the facility The occupants of the facility may change frequently or may never change at all

If changes are likely a high degree of flexibility and a very general space If a high degree of confidence about the products the facility design should optimize the production of those products

INDU 421 - FACILITIES DESIGN AND MATERIAL HANDLING SYSTEMS

Product Design Detailed Design

The detailed design of the product is influenced by aesthetics, function, materials and manufacturing considerations

Quality Function Deployment translation of the customers desires into product design, and subsequently into parts characteristics, process plans and production requirements.

Benchmarking used to identify the approach of the competition

INDU 421 - FACILITIES DESIGN AND MATERIAL HANDLING SYSTEMS

Product Design Detailed Design

Finally, detailed designs take place (CAD designs, prototypes, assembly designs, 2D drawings and dimension determinations)
Concurrent Engineering is a systematic way of enabling communication between all the related units during the product development
The aim is to minimize the changes in design parameters once the design is finalized 70% of the manufacturing cost is set during the design phase Changing the design later in the process costs significantly more
INDU 421 - FACILITIES DESIGN AND MATERIAL HANDLING SYSTEMS

Cost of design changes

100

Life-cycle cost committed

Total Cost (%)

80

Product Life-Cycle Includes

60

Cost incurred

40

20

Ease of change

Design Phase Manufacturing Phase Product usage phase Disposal phase

0 Conceptu al Design Detailed

Design

Manufacturing

Prototype

Distribution, service, and disposal

Design phase determines the most of the costs associated with delivering a product. Typically, 70-80% of the cost of a product is fixed at the design stage.
INDU 421 - FACILITIES DESIGN AND MATERIAL HANDLING SYSTEMS

Sequential development method

Concurrent development method

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Product Design - Documentation

Once the product design is completed, usually following documents are provided for the facilities planning process as inputs
Exploded assembly drawing omits specifications and dimensions Exploded parts photographs Component part drawing - detailed

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Next lecture
Process design Schedule design

INDU 421 - FACILITIES DESIGN AND MATERIAL HANDLING SYSTEMS