Facilities Planning and Design

1405-332
Lec 3

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 Schedule Design
• Schedule design decisions provide answers to
questions involving how much to produce and
when to produce
• Production quantity decisions are referred to
as lot size decisions
• Determining when to produce is referred to as
production scheduling.

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 Schedule Design
How does a schedule design impact the facility design?
Schedule design decisions impact;
• Machine selection • Number of machines
• Number of shifts • Number of employees
• Space requirements • Storage equipment
• Material handling equipment
• Personnel requirements • Storage policies
• Unit load design • Building size
•And more…

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 Schedule Design
• Schedule design determines
How much to produce lot size decision
When to produce production scheduling
How long production will continue market forecast
Two sources
• Marketing Information
• Process Requirements

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 Marketing Information
• A minimum market information given in table
3.1 is needed. Preferably, information
regarding the dynamic value of demands to be
place on the facility is desired.

Table 3.1 Minimum Market Information Required for Facilities Planning

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 Marketing Information
• If such information is available, a facilities plan
can be developed for each demand state, and a
facility designed with sufficient flexibility to
meet the yearly fluctuations in product mix.
• By developing facilities plans annually and
noting the alterations to the plan, a facilities
master plan can be established.
• Dynamic layouts can be designed to
accommodate varying product demands .
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 Marketing Information
• Ideally, information of the type shown in table 3.2 would be
provided. If such information is available, a facilities plan can be
developed for each demand state and a facility designed with
sufficient flexibility to meet the yearly fluctuations in product mix.
Table 3.2 Market Analysis Indicating the Stochastic Nature o f Future Requirements
for Facilities Planning

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 Marketing Information
• In addition to the volume, trend, and predictability of
future demands for various products, the qualitative
information listed in Table 3.3 should be obtained
Table 3.3 Valuable Information That Should Be Obtained from Marketing and
Used by a Facilities Planner

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 Marketing Information
• Marketing department provides a research
function that analyzes what the world’s
consumer wants. Some of the information that
marketing provides is:
Selling price
Volume, how many can we sell?
Seasonality, summer or winter product
Replacement parts, older products
• Valuable information that should be obtained
from marketing and used by a facilities planner.
See Table 3.3 9
 Process Requirements
• Process design determines the specific equipment types
required to produce the product. Schedule design
determines the number of each equipment type
required to meet the production schedule.
• Specification of process requirements typically occurs in
three phases.
1. Determining the quantity of components that must be
produces, including scrap allowance, in order to meet
the market estimate.
2. Determining equipment requirements for ach operation.
3. Combination of the operation requirements to obtain
overall equipment requirements
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 Scrap Estimation
• The market estimate specifies the annual
volume to be produced for each product. To
produce the required amount of product, the
number of units scheduled through
production must equal the market estimate
plus a scrap estimate.
• Hence, production capacity must be planned
for the production of scrap. Otherwise, when
scrap is produced the market estimate will not
be met.
 Scrap Estimation
• Scrap is the material waste generated in the
manufacturing process due to geometric or
quality considerations. For example, scrap due
to geometry is generated when a rectangular
steel plate is used to create circular
components or when rolls of fabric are used
to make shirt.
• Total production= market estimate + scrap
estimate
• Scrap = reject - rework
 Scrap Estimation
• How is scrap calculated?
• Let dk :represent the percentage of scrap
produced on the kth operation
• Ok: the desired output of non-defective
product from operation k
• Ik: the production input to operation k.
d1

I1
O1
 Scrap Estimation
• Thus, the expected number of units to start
into production for a part having n operations
is
d d d

where On is the required production volume for the final

product
 Example
• A product has a market estimate of 97,000
components and requires three processing steps
(turning, milling, and drilling) having scrap estimates of
P1 = 0.04, P2 = 0.01, and P3 = 0.03. Calculate the
production input to operation 1.
Solution
 Example
• The amount of raw material and processing on
operation 1 is not to be based on the market estimate
of 97,000 components, but on 105,219 components,
as summarized in Table 3.4.

Table 3.4. Summary of production requirements

 Calculations with Rework
• Allowing for rework involves a modification of the
procedure for sequential operations. The graphical
representation for operations with rework is shown
in Figure 3.16. As in the previous example, we
assume that 100% inspection is performed at each
operation, including the rework operation.
 Calculations with Rework
• The calculation of I1 based on the required output of
O 3 is as follows
• O1 = (1 - d 1) I1
• I12= d1 I1
• where I12 is the number of defective items from the
first operation
• O2 = (1 – d 2) I2
• I3 = O1 + O 2 = (1 – d1) I1 + (1 - d2) I2
Calculations with Rework
 Example
The end product requirement is 100,000 pieces.
Given that rework is performed based on the
assumption above, calculate the number of
units required for processing at the first
operation. Assume that the defective rates (in
decimal) are d1 = 0.03, d2 = 0.40, and d3 = 0.02.
Solution
• I1= 100,000/0.98 [0.97 + 0.03 (0.60)] = 103,280
• The initial input required is 103,280.
 Equipment Fractions
• The quantity of equipment required for an operation
is referred to as the equipment fraction. The
equipment fraction may be determined for an
operation by dividing the total time required to
perform the operation by the time available to
complete the operation.
• The total time required to perform an operation is
the product of the standard time for the operation
and the number of times the operation is to be
performed.
 Equipment Fractions
where;
F = number of machines required per shift
S = standard time (minutes) per unit produced
Q = number of units to be produced per shift
E = actual performance, expressed as a percentage of
standard time (Efficiency)
H = amount of time (minutes) available per machine
R = reliability of machine, expressed as percent “up time”
 Equipment Fractions
Equipment requirements are a function of the following factors:
• Number of shifts (the same machine can work in more than one
shift).
• Setup times (if machines are not dedicated, the longer the setup,
the more machines needed).
• Degree of flexibility (customers may require small lot sizes of
different products delivered frequently – extra machine
capacity will be required to handle these requests).
• Layout type (dedicating manufacturing cells or focused factories
to the production of product families may require more
machines).
• Total productive maintenance (will increase machine up time and
improve quality, thus fewer machines will be needed).
 Example
A machined part has a standard machinery time of 2.8 min per
part on a milling machine. During an 8-hr shift 200 units are to
be produced. Of the 480 min available for production, the
milling machine will be operational 80% of the time. During
the time the machine is operational, parts are produced at a
rate equal to 95% of the standard rate. How many milling
machines are required?
Solution
S = 2.8 min per part Q = 200 units per shift
H = 480 min per shift (8X60) E = 0.95 R = 0.80
Thus,
 Specifying Total Machine Requirements
• The next step in determining machine requirements
is to combine the machine fractions for identical
equipment types. Such a determination is not
necessarily straightforward.
• Even if only one operation is to be performed on a
particular equipment type, overtime and
subcontracting must be considered.
• If more than one operation is to be run on a
particular equipment type, several alternatives must
be considered.
Example
• The machine fractions for an ABC drill press are given
in Table 3.6- No drill press operator, overtime, or
subcontracting is available for any operation on the
ABC drill press. It may be seen that a minimum of
four and a maximum of six machines are required.
How many should be purchased? The answer is
either four, five, or six.
 FACILITIES DESIGN
• Once the product, process and schedule
design decisions have been made, the
facilities planner needs to organize the
information and generate and evaluate layout,
handling, storage, and unit load design
alternatives.
 7 management and planning tools
The seven management and planning tools are
1. The affinity diagram,
2. The interrelationship digraph,
3. The tree diagram,
4. The matrix diagram,
5. The contingency diagram,
6. The activity network diagram, and
7. The prioritization matrix.
 7 management and planning tools
1- Affinity Diagram
The affinity diagram is used to gather verbal data, such as ideas
and issues, and organize it into groupings.

Figure 3.17 Affinity diagram for reducing manufacturing lead time

 7 management and planning tools
2- Interrelationship Digraph
The interrelationship diagraph is used to map the
logical links among related items, trying to identify
which items impact others the most. This graph helps
us understand the logical sequence of steps for the
facilities design.

Figure 3.18. Interrelationship diagraph for facilities design

 7 management and planning tools
3-Tree Diagram
• The tree diagram is used to map in increasing detail the
actions that need to be accomplished in order to achieve a
general objective.

Figure 3.19. Tree diagram for the formation of product families

 7 management and planning tools
4- Matrix Diagram.
• The matrix diagram organizes information such as
characteristics, functions, and tasks into sets of items to be
compared. This tool provides visibility to key contact on
specific issues and helps identify individuals who are assigned
to too many teams.

Table 3.7 Matrix diagram for team participation

 7 management and planning tools
5- Contingency Diagram
• The contingency diagram formally known as process decision
program chart, maps conceivable events and contingencies that
might occur during implementation. It particularly is useful
when the project being planned consists of unfamiliar tasks.
• The benefit of preventing or responding effectively to
contingencies makes it worthwhile to look at these possibilities
during the planning phase.
 7 management and planning tools
6- Activity Network Diagram
• The activity network diagram is used to develop a work schedule
for the facilities design effort. This diagram is synonymous to the
critical path method (CPM) graph. It can also be replaced by a
Gantt chart.
 7 management and planning tools
6- Activity Network Diagram

Figure 3.20 Activity network diagram for a production line expansion facilities design project
 7 management and planning tools
7- Prioritization Matrix
In developing facilities design alternatives it is important to consider:
(a) Layout characteristics
• total distance travelled
• manufacturing floor visibility
• overall aesthetics of the layout
• ease of adding future business
(b) Material handling equipment
• use of current material handling equipment
• investment requirements on new equipment
• space and people requirements
 7 management and planning tools
7- Prioritization Matrix
(c) Unit load implied
• impact on WIP levels
• space requirements
• impact on material handling equipment
(d) Storage strategies
• space and people requirements
• impact on material handling equipment
• human factor risk
(e) Overall building impact
• estimated cost of the alternative
• opportunities for new business.
The prioritization matrix can be used to judge the relative
importance of each criterion as compared to each other.
 7 management and planning tools
7- Prioritization Matrix
The prioritization matrix can be used to judge the relative importance
of each criterion as compared to each other.
A. Total distance travelled G. Space requirements
B. Manufacturing floor visibility H. People requirements
C. Overall aesthetics of the layout I. Impact on WIP levels
D. Ease of adding future business J- Human factor risks
E. Use of current MH equipment K. Estimated cost of alternative
F. Investment in new MH equipment
The weights typically used to compare the importance of each pair of
criteria are
1 = equally important 1/5 = significantly less important
5 = significantly more important 1/10 = extremely less important
10 = extremely more important
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7- Prioritization Matrix

Table 3.9. Prioritization matrix for the evaluation of facilities design alternatives
How the seven management and planning tools
facilitate the planning of a
facilities design project
Facilities Design
Thank you