0% found this document useful (0 votes)
15 views46 pages

Block-2

Uploaded by

Rahul Patil
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
0% found this document useful (0 votes)
15 views46 pages

Block-2

Uploaded by

Rahul Patil
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 46

Sustainable

Operations

BLOCK 2
DESIGNING OPERATIONS

51
Operations
Management –
An Overview

52
Process and Capacity
UNIT 4 PROCESS AND CAPACITY Analysis

ANALYSIS

Objectives
After studying this unit, you will be able to:
• Generate and maintain a capacity plan which is accurate
• Provide guidance and advice on all issues related to capacity and
performance.
• Make sure that the service performance achievements meet their agreed-
upon targets
• Measure and monitor capacity to support service level management.
• Provide assistance with the diagnosis and resolution of incidents and
problems.
• Analyze the impact which the changes have had on the capacity plan and
take proactive measures to improve the performance wherever it is cost-
effective.

Structure
4.1 Process and capacity analysis -- Introduction
4.1.1 Process selection
4.1.2 Process types
4.2 Capacity planning – Introduction
4.2.1 Managing a process to meet demand
4.3 Capacity decisions are strategic
4.3.1 Defining and Measuring Capacity
4.4 Developing capacity strategies
4.5 Process of capacity planning
4.6 How to perform a manufacturing capacity analysis
4.7 How To Perform A Manufacturing Capacity Analysis In Your Business
4.8 Summary
4.9 Check your progress: possible answers
4.10 Keywords
4.11 Further Readings

4.1 PROCESS AND CAPACITY ANALYSIS -


INTRODUCTION
Capacity planning is a key strategic component in designing the system. It
encompasses many basic decisions with long-term consequences for the
organization. In this unit, you will learn about the importance of capacity
decisions, the measurement of capacity, how capacity requirements are
determined, and the development and evaluation of capacity alternatives. 53
Designing Operations Capacity refers to an upper limit or ceiling on the load that an operating unit
can handle. The load might be in terms of the number of physical units
produced (e.g., bicycles assembled per hour) or the number of services
performed (e.g., computers upgraded per hour). The operating unit might be a
plant, department, machine, store, or worker. A gap between current and
desired capacity will result in capacity that is out of balance. Overcapacity
causes operating costs that are too high, while under capacity causes strained
resources and possible loss of customers.
The key questions in capacity planning are the following:
• What kind of capacity is needed?
• How much is needed to match demand?
• When is it needed?
The question of what kind of capacity is needed depends on the products and
services that management intends to produce or provide. Hence, in a very real
sense, capacity planning is governed by those choices.
Before an organization commits to ramping up its input, it is essential to
confirm that its supply chain will be able to handle related requirements.
Because of uncertainties, some organizations prefer to delay capacity
investment until demand materializes. Generally, the factors that influence
this frequency are the stability of demand, the rate of technological change in
equipment and product design, and competitive factors. Other factors relate
to the type of product or service and whether style changes are important
(e.g., automobiles and clothing). In any case, management must review
product and service choices periodically to ensure that the company makes
capacity changes when they are needed for cost, competitive effectiveness, or
other reasons.

4.1.1 Process Selection


Process selection refers to deciding on the way production of goods or
services will be organized. It has major implications for capacity planning,
layout of facilities, equipment, and design of work systems. Process selection
occurs as a matter of course when new products or services are being
planned. However, it also occurs periodically due to technological changes in
products or equipment, as well as competitive pressures.

Figure 4.1: Process selection and capacity planning influence system design
54
Figure 4.1 above provides an overview of where process selection and Process and Capacity
Analysis
capacity planning fit into system design. Forecasts, product and service
design, and technological considerations all influence capacity planning and
process selection. Moreover, capacity and process selection are interrelated,
and are often done in concert. They, in turn, affect facility and equipment
choices, layout, and work design. How an organization approaches process
selection is determined by the organization’s process strategy. Key aspects
include:
• Capital intensity: The mix of equipment and labor that will be used by
the organization.
• Process flexibility: The degree to which the system can be adjusted to
changes in processing requirements due to such factors as changes in
product or service design, changes in volume processed, and changes in
technology.

4.1.2 Process Types


There are five basic process types: job shop, batch, repetitive, continuous,
and project.

Job Shop
A job shop usually operates on a relatively small scale. It is used when a low
volume of high-variety goods or services will be needed. Processing is
intermittent; work includes small jobs, each with somewhat different
processing requirements. High flexibility using general-purpose equipment
and skilled workers are important characteristics of a job shop. A
manufacturing example of a job shop is a tool and die shop that is able to
produce one-of-a-kind tools. A service example is a veterinarian’s office,
which is able to process a variety of animals and a variety of injuries and
diseases.

Batch
Batch processing is used when a moderate volume of goods or services is
desired, and it can handle a moderate variety in products or services. The
equipment need not be as flexible as in a job shop, but processing is still
intermittent. The skill level of workers doesn’t need to be as high as in a job
shop because there is less variety in the jobs being processed. Examples of
batch systems include bakeries, which make bread, cakes, or cookies in
batches; movie theaters, which show movies to groups (batches) of people;
and airlines, which carry planeloads (batches) of people from airport to
airport. Other examples of products that lend themselves to batch production
are paint, ice cream, soft drinks, beer, magazines, and books.

Repetitive
When higher volumes of more standardized goods or services are needed,
repetitive processing is used. The standardized output means only slight
flexibility of equipment is needed. Skill of workers is generally low.
Examples of this type of system include production lines and assembly lines.
55
Designing Operations In fact, this type of process is sometimes referred to as assembly. Familiar
products made by these systems include automobiles, television sets, pencils,
and computers. An example of a service system is an automatic carwash.

Continuous
When a very high volume of non-discrete, highly standardized output is
desired, a continuous system is used. These systems have almost no variety in
output and, hence, no need for equipment flexibility. Workers’ skill
requirements can range from low to high, depending on the complexity of the
system and the expertise workers need. Generally, if equipment is highly
specialized, worker skills can be lower. Examples of non-discrete products
made in continuous systems include petroleum products, steel, sugar, flour,
and salt. Continuous services include air monitoring, supplying electricity to
homes and businesses, and the Internet.

Figure 4.2: Volume and variety influence process choice

Check Your Progress 1


Notes: a) Space is given below for your answer.
b) Check your answer with the one given at the end of this unit.
How do you understand Types of processing? Explain the types by
comparing the volume and variety (Answer in about 200 words).
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
56
Process and Capacity
4.2 CAPACITY PLANNING Analysis

Capacity planning is to be carried out keeping in mind future growth and


expansion plans, market trends, sales forecasting, etc. It is a simple task to
plan the capacity in case of stable demand. But in practice the demand will be
seldom stable. The fluctuation of demand creates problems regarding the
procurement of resources to meet the customer demand. Production managers
are more concerned about the capacity for the following reasons: Sufficient
capacity is required to meet the customers demand in time. Capacity affects
the cost efficiency of operations. Capacity affects the scheduling system.
Capacity creation requires an investment. Capacity planning is the first step
when an organization decides to produce more or new products.

4.2.1 Managing a Process to Meet Demand


Ideally, the capacity of a process will be such that its output just matches
demand. Excess capacity is wasteful and costly; too little capacity means
dissatisfied customers and lost revenue. Having the right capacity requires
having accurate forecasts of demand, the ability to translate forecasts into
capacity requirements, and a process in place capable of meeting expected
demand.

Process Variation
Variation occurs in all business processes. It can be due to variety or
variability. For example, random variability is inherent in every process; it is
always present. In addition, variation can occur as the result of deliberate
management choices to offer customers variety. Variations can be disruptive
to operations and supply chain processes, interfering with optimal
functioning. Variations result in additional cost, delays and shortages, poor
quality, and inefficient work systems. Poor quality and product shortages or
service delays can lead to dissatisfied customers and can damage an
organization’s reputation and image. It is not surprising, then, that the ability
to deal with variability is absolutely necessary for managers.

4.3 CAPACITY DECISIONS ARE STRATEGIC


For a number of reasons, capacity decisions are among the most fundamental
of all the design decisions that managers must make. In fact, capacity
decisions can be critical for an organization.

• Capacity decisions have a real impact on the ability of the organization


to meet future demands for products and services.
• Capacity decisions affect operating costs. Ideally, capacity and demand
requirements will be matched.
• Capacity is usually a major determinant of initial cost.
• Capacity decisions often involve long-term commitment of resources.
• Capacity decisions can affect competitiveness.
• Capacity affects the ease of management.
57
Designing Operations • Globalization has increased the importance and the complexity of
capacity decisions.
• Because capacity decisions often involve substantial financial and other
resources, it is necessary to plan for them far in advance.

4.3.1 Defining and Measuring Capacity


• Design capacity: The maximum output rate or service capacity an
operation, process, or facility is designed for.
• Effective capacity: Design capacity minus allowances such as personal
time, and maintenance. Design capacity is the maximum rate of output
achieved under ideal conditions.

These different measures of capacity are useful in defining two measures of


system effectiveness: efficiency and utilization. Efficiency is the ratio of
actual output to effective capacity. Capacity utilization is the ratio of actual
output to design capacity.

Efficiency = Actual output _______________ Effective capacity × 100%


Utilization = Actual output _____________ Design capacity × 100%

Both measures are expressed as percentages. It is not unusual for managers to


focus exclusively on efficiency, but in many instances this emphasis can be
misleading. This happens when effective capacity is low compared to design
capacity. In those cases, high efficiency would seem to indicate effective use
of resources when it does not. The following example illustrates this point.

Example

Compared to the effective capacity of 40 units per day, 36 units per day looks
pretty good. However, compared to the design capacity of 50 units per day,
36 units per day is much less impressive although probably more meaningful.

58
Check Your Progress 2 Process and Capacity
Analysis
Notes: a) Space is given below for your answer.
b) Check your answer with the one given at the end of this unit.
Explain the determinants of effective capacity. (Answer in about 200
words).
............................................................................................................................
............................................................................................................................
............................................................................................................................
............................................................................................................................
............................................................................................................................

4.4 DEVELOPING CAPACITY STRATEGIES


There are a number of ways to enhance the development of capacity
strategies:
• Design flexibility into systems.
• Take stage of life cycle into account.
• Take a “big-picture” (i.e., systems) approach to capacity changes.
• Prepare to deal with capacity “chunks.”
• Attempt to smooth out capacity requirements.
• Identify the optimal operating level.
• Choose a strategy if expansion is involved.

The systems viewpoint includes good ideas, which can increase supply chain
capacity with minimum expenditures. The formula for actual measured
capacity of a manufacturing or service department is
C = T × E × U,
Where
C = actual measured capacity (in units converted to standard hours)
T = real time available
E = efficiency
U = utilization
In supply chain terms, benchmarking systematically compares fundamental
measures with those of contestants performing similar supply chain
functions. In the following sections, we will discuss capacity planning for an
operational department what is popularly known as aggregate production
planning.

Capacity output relationship


The system capacity is less than design capacity because of long range
uncontrollable factors. The actual output is still reduced because of short-
term effects such as, breakdown of equipment, inefficiency of labour. The
59
Designing Operations system efficiency is expressed as ratio of actual measured output to the
system capacity. System Efficiency (SE) = Actual output System capacity
• Licensed capacity: Capacity licensed by the various regulatory agencies
or government authorities. This is the limitation on the output exercised
by the government.
• Installed capacity: The capacity provided at the time of installation of the
plant is called installed capacity.
• Rated capacity: Capacity based on the highest production rate established
by actual trials is referred to as rated capacity.

4.5 PROCESS OF CAPACITY PLANNING


Capacity planning is concerned with defining the long-term and the short-
term capacity needs of an organization and determining how those needs will
be satisfied. Capacity planning decisions are taken based upon the consumer
demand and this is merged with the human, material and financial resources
of the organization. Capacity requirements can be evaluated from two
perspectives—long-term capacity strategies and short-term capacity
strategies.

• Long-Term Capacity Strategies


Long-term capacity requirements are more difficult to determine because the
future demand and technology are uncertain. Forecasting for five or ten years
into the future is riskier and more difficult. Even sometimes company’s
today’s products may not be existing in the future. Long range capacity
requirements are dependent on marketing plans, product development and
lifecycle of the product. Long-term capacity planning is concerned with
accommodating major changes that affect the overall level of output in long-
term.

• Short-Term Capacity Strategies


Managers often use forecasts of product demand to estimate the short-term
workload the facility must handle. Managers looking ahead up to 12 months,
anticipate output requirements for different products, and services. Managers
then compare requirements with existing capacity and then take decisions as
to when the capacity adjustments are needed. For short-term periods of up to
one year, fundamental capacity is fixed. Major facilities will not be changed.
Many short-term adjustments for increasing or decreasing capacity are
possible.
Check Your Progress 3
Notes: a) Space is given below for your answer.
b) Check your answer with the one given at the end of this unit.

Capacity requirements can be evaluated from two perspectives—long-


term capacity strategies and short-term capacity strategies. Comment
(Answer in about 200 words).

60
............................................................................................................................ Process and Capacity
Analysis
............................................................................................................................
............................................................................................................................
............................................................................................................................
............................................................................................................................

4.6 HOW TO PERFORM A MANUFACTURING


CAPACITY ANALYSIS
A capacity analysis can be an excellent solution for auditing a manufacturing
plant and diagnosing if there is hidden capacity waiting to be unlocked.

What is Manufacturing Capacity?


The goal of every manufacturer is to run its operations at full capacity. But
what is manufacturing capacity? The short answer is that manufacturing
capacity represents the state in which all equipment and resources within a
company are utilized at the highest operation rate for the product mix and
volume their industry requires. This means that all processes from operations
to maintenance are optimized with a set amount of resources and that no
unnecessary downtime is incurred. When this condition is reached, the
equipment has reached full capacity.

How to Perform a Manufacturing Capacity Analysis?


Companies that perform a manufacturing capacity analysis are able to reduce
downtime and waste. They can also mine the data to optimize processes and
streamline workflows. Doing so can help them understand what the existing
constraints are and make real-time decisions to solve problems as they
happen. As data support these solutions, managers can drive improvement
throughout the operation and increase capacity without additional investment
in equipment or labor. For companies looking to improve their manufacturing
capacity, here are the steps required to unlock existing capacity:

Step 1: Benchmark Data


Benchmarking includes determining existing capacity. Machine speed,
quality losses, downtime by categories – such as breakdowns, changeovers,
and performance losses – must all be measured to determine the current
capacity.

Step 2: Analyze Downtime


Once a manufacturing operation has benchmarked its data and understands its
true utilization, a downtime analysis must be conducted. This involves
managers, technicians, manufacturing engineers, operators, and others who
can help identify all the reasons for downtime and plan how to reduce or
eliminate it.

61
Designing Operations Step 3: Rollout Process Changes
Managers are now equipped with accurate and verifiable data that drives real
change at this point in the capacity analysis. These changes can be used to
tackle the most significant capacity constraints, unlock the hidden capacity to
eliminate overtime, reduce the need for capital expenditure, and hone a
maintenance program that works in sync with changeovers and other
operating conditions instead of contention with them.

Step 4: Unlocking Hidden Capacity


A capacity analysis coupled with advanced data capture and analytics can
help companies find their path to full capacity quicker than most would think,
and lead to a leveled production.

Step 5: Optimize Your Production with Accurate Capacity Planning


The overall goal of many manufacturing companies is to create an optimized
and efficient schedule to have balanced flow between supply and demand,
while minimizing waste and costs.

Capacity Limitations
It is important to understand your capacity limitations so that you can identify
areas of improvement and develop a capacity plan that is just right for your
organization.

4.7 HOW TO PERFORM A MANUFACTURING


CAPACITY ANALYSIS IN YOUR BUSINESS
Most manufacturers have experienced times where the demand for products
or services surpassed the actual available capacity to fulfill those demands.
These obstructing situations highlight the requirement for proper analysis of
the capacity you have and its usage, to recognize the root of the issues.
Manufacturing Capacity Analysis is the process of recognizing the available
capacity for your industry which contains the available inventory holding
capacity, machine capacity as well as labor capacity, etc. It also targets to
recognize how capacity usage can be optimized to improve the total available
capacity of the operations. Efficient use of manufacturing space, labor and
optimized equipment performance are vital parameters for companies to drive
systematic production and achieve the highest profitability.
Check Your Progress 4
Notes: a) Space is given below for your answer.
b) Check your answer with the one given at the end of this unit.
Illustrate your understanding about Capacity Analysis in an
Operation with examples. (Answer in about 200 words).
............................................................................................................................
............................................................................................................................

62 ............................................................................................................................
Process and Capacity
4.8 SUMMARY Analysis

Minimize non-value-adding activities - decreases cost, reduces lead time.


Non value adding activities include transport, rework, waiting, testing and
inspecting, and support activities. Redesign the product for better
manufacturability - can improve several or all process performance measures.
Flexibility can be improved by outsourcing certain activities. Flexibility also
can be enhanced by postponement, which shifts customizing activities to the
end of the process. In some cases, dramatic improvements can be made at
minimal cost when the bottleneck activity is severely limiting the process
capacity. On the other hand, in well optimized processes, significant
investment may be required to achieve a marginal operational improvement.
Because of the large investment, the operational gain may not generate a
sufficient rate of return. A cost-benefit analysis should be performed to
determine if a process change is worth the investment. Ultimately, net present
value will determine whether a process "improvement" really is an
improvement.

4.9 CHECK YOUR PROGRESS: POSSIBLE


ANSWERS
Check Your Progress 1

Process Types
There are five basic process types: job shop, batch, repetitive, continuous,
and project.
Job Shop.
A job shop usually operates on a relatively small scale. It is used when a low
volume of high-variety goods or services will be needed.
Batch.
Batch processing is used when a moderate volume of goods or services is
desired, and it can handle a moderate variety in products or services.
Repetitive.
When higher volumes of more standardized goods or services are needed,
repetitive processing is used.
Continuous.
When a very high volume of non-discrete, highly standardized output is
desired, a continuous system is used. These systems have almost no variety in
output and, hence, no need for equipment flexibility.
Check Your Progress 2
Determinants Of Effective Capacity
Facilities.
The design of facilities, including size and provision for expansion, is key.
Locational factors, such as transportation costs, distance to market, labor
63
Designing Operations supply, energy sources, and room for expansion, are also important.
Product and Service Factors.
Product or service design can have a tremendous influence on capacity. For
example, when items are similar, the ability of the system to produce those
items is generally much greater than when successive items differ.
Process Factors.
The quantity capability of a process is an obvious determinant of capacity. A
more subtle determinant is the influence of output quality. For instance, if
output quality does not meet standards, the output rate will be slowed by the
need for inspection and rework activities. Productivity also affects capacity.
Human Factors.
The tasks that make up a job, the variety of activities involved, and the
training, skill, and experience required to perform a job all have an impact on
the potential and actual output.
Policy Factors.
Management policy can affect capacity by allowing or not allowing capacity
options such as overtime or second or third shifts.
Operational Factors.
Scheduling problems may occur when an organization has differences in
equipment capabilities among alternative pieces of equipment or differences
in job requirements.
Supply Chain Factors.
Supply chain factors must be taken into account in capacity planning if
substantial capacity changes are involved.
External Factors.
Product standards, especially minimum quality and performance standards
can restrict management’s options for increasing and using capacity.
Check Your Progress 3
Process of Capacity Planning
Capacity planning is concerned with defining the long-term and the short-
term capacity needs of an organization and determining how those needs will
be satisfied. Capacity planning decisions are taken based upon the consumer
demand and this is merged with the human, material and financial resources
of the organization. Capacity requirements can be evaluated from two
perspectives—long-term capacity strategies and short-term capacity
strategies.

Check Your Progress 4


When it comes to increasing the capacity of an operation, most businesses
will pursue one of three common strategies: Lead Capacity, Lag Capacity,
and Match Capacity. Each of these has their own unique advantages and
disadvantages, and which one a specific operation decides to go with will
64
depend on the specifics of their business. Process and Capacity
Analysis
• Lead Capacity
• Lag Capacity
• Match Capacity

While this desire makes sense, in practice this modular expansion often
amplifies inefficiencies and costs more over the long run to implement.

4.10 KEYWORDS
Process planning: Systematic determination of the methods by which a
product is to be manufactured economically and competitively

Factors affect process planning: Availability of machine, Delivery date,


Quantity to be produced , Quality standards

Planning: Manual Process Planning , Computer Aided Process

CAPP: Computer Aided Process Planning


Capacity: Actual or potential ability to perform, yield, or withstand
Capability: The quality of being able to do something
Quality: How good or bad something is

Benchmark: Something that serves as a standard by which others may be


measured or judged.
Downtime: Time during which a machine, especially a computer, is out of
action or unavailable for use

Parameters considered for material selection: Functional requirements,


Reliability, Service life durability, Aesthetics and appearance, Environmental
Factors

4.11 FURTHER READINGS


Operations Management THIRTEENTH EDITION William J. Stevenson
Saunders College of Business Rochester Institute of Technology
Production and Operations Management Systems Sushil Gupta and Martin
Starr
Mahadevan, “Operations Management: Theory & Practice”, 3rd Edition ©
Pearson Education, 2015.
Upendra Kachru, Production and Operations Management, Excel Books,
New Delhi.
Chan, Yupo, Location theory and Decision Analysis with Facility – Location
and Landuse Models, Cincinnati, OH: South-Western College Publishing,
2001.
Allspaw, John. The Art of Capacity Planning: Scaling Web Resources.
65
Designing Operations Sebastopol, CA: O’Reilly Media, 2008.
Goldratt, Eliyahu M. Theory of Constraints. Great Barrington, MA: North
River Press, 2000.
Gunther, Neil J. Guerrilla Capacity Planning: A Tactical Approach to
Planning for Highly ScalableApplications and Services. New York:
SpringerVerlag, 2007.
Jacobs, F. Robert, William Berry, D. Clay Whybark, and Thomas Vollman.
Manufacturing Planning and Control for Supply Chain Management. New
York: McGraw-Hill, 2011.
La Piana, David. The Nonprofit Strategy Revolution: Real Time Strategic
Planning in a Rapid Response World. St. Paul, MN: Fieldstone Alliance,
2008.
https://www.machinemetrics.com/blog/capacity-
analysis#:~:text=The%20process%20of%20capacity%20analysis,be%20chan
ged%20to%20increase%20capacity.
https://www.conveyco.com/blog/capacity-analysis/
https://www.hiotron.com/manufacturing-capacity-analysis/
https://www.invensislearning.com/blog/capacity-management/
https://www.planettogether.com/blog/capacity-analysis-in-operations-
management.

66
Design of
UNIT 5 DESIGN OF MANUFACTURING Manufacturing
Goods and Services
GOODS AND SERVICES

OBJECTIVES
After studying this unit, you will be able to:
• Improve the manufacturing feasibility of a product.
• Reduce the overall costs of the product.
• Improve the overall quality of the product.
• To design a product that is easily and economically manufactured.
• Minimize manufacturability issues so that the product can be
manufactured quicker and in a more economical way
• Create an efficient design that leaves room for potential design changes
in the later stages without a huge cost.

Structure
5.1 Manufacturing Product Design and Process Basics
5.1.1 The Phases of Product Design
5.1.2 Product Analysis and Testing
5.2 Strategies for New Product Development and Introduction
5.2.1 Process Flow Design and Process Selection
5.3 Product Life-Cycle Stages
5.3.1 Demand Prediction in Life-Cycle Stages
5.4 Design for Manufacturing - Guidelines
5.5 Competitive Advantage
5.5.1 Product Development Tradeoffs
5.6 Types of designs
5.6.1 Step in Design Process
5.7 Definition of DFM
5.7.1 Design for manufacturing and assembly
5.7.2 Factors that Affect DFM
5.8 Summary
5.9 Check your progress: possible answers
5.10 Keywords
5.11 Further Readings

5.1 MANUFACTURING PRODUCT DESIGN


AND PROCESS BASICS
Quality of Products
Because of the tangible nature quality of products can be standardized and
measured. Customers tend to measure the performance of products against
67
Designing Operations the following dimensions:
a) Confirmation to specification: Either implied in the advertisements or
specified in writing, manufacturers promise certain standard for their
products. When the customer buys or use the product, they expect the
product to contain the advertised specifications. For example, a liter of
Milky Mist Milk, or a liter and a half of a Cola. So, when the customers
buy a pack of milk, they expect the pack contains exactly 1.0 liter of
milk.

b) Value: Customers expect value in return for the money spent. Higher the
money spent for a product, the higher is the expectation of the customer.
For example, a Taka 3 Econo ball pen is expected to perform much
below a Tk 300 Parker ball pen. If the Parker pen lasts long, the
customer will feel that the purchase was worth the price. However, if it
lasts for a few weeks, the customer would feel that the value was not
there.

c) Fitness of use: A product is purchased for a specific set of purposes. The


customers would always ask whether the product is actually fit for the
purpose for which it was purchased. Fitness of use does not only include
it mechanical and chemical properties, but also include its appearance,
style, durability, reliability, craftsmanship, and serviceability.

d) After sales service: Many products are used repeatedly over a period of
time. In this process it may need maintenance. Does the seller have the
ability to service the machine? For example, computers need newer
software’s; printers need replacement ribbons etc. Are these supports
available? If not, the product cannot function to its fullest ability, and as
such, is of little use to the customers.

e) Psychological impression: People often judge a product by its ability to


project a special image for them. How the product enhances his image is
very important to the customer. A Parker ball pen peeking out of shirt
pocket looks better than an Econo pen. Products are often purchased as a
result of the image created in advertisement.

Production design
Production design is the structuring of component parts or activities so that as
a unit they can provide a specified value. It usually begins with the
development of a set of detailed specifications. New product and service
ideas come from various sources, including customers, top management, and
staff from marketing, research and development, production and engineering.
Product selection, definition and design take on a continuing basis because so
many new product opportunities exist. Mainly five factors influencing market
opportunities. These are,
• Economic change:
• Sociological and demographic change:
• Technological change:
68
• Political change: Design of
Manufacturing
• Other changes Goods and Services

5.1.1 The Phases of Product Design


To design is to formulate a plan for the satisfaction of human need. The
phases of design are described in Figure 5.1.

Figure 5.1: Phases of Product Design

A. Recognition of need: Recognition of the need and phrasing the need


often constitute a highly creative act, because the need may be only an
age of discontents, a feeling of uneasiness, or a sensing that something is
not right. For example, the need to do something about a food packaging
machine may be indicated by noise label, by the variation in package
weight, and by slight but perceptible variations in the quality of the
packaging or wrap.
B. Definition of the problem: It must include all the specifications for the
product that is to be designed. Specifications are the inputs and output
quantities, the characteristics and the dimensions, and all the limitations
on these quantities.
C. Synthesis: After the problem is defined and a set of written and implied
specification has been obtained, the next step in design is the synthesis of
the optimum solution.
D. Analysis and optimization: Synthesis cannot take place without both
analysis and optimization, because the product under design must be
analyzed to determine whether the performance complies with the
specification.
E. Evaluation: It is a significant phase of the total design process.
Evaluation is the final proof of a successful design.
F. Presentation: The designer has also to sale the new idea. The designer
should not be afraid of possibilities of not succeeding in a presentation.
69
Designing Operations In fact, occasional failure should be accepted, because failure or criticism
seems to accompany every really creative idea.

5.1.2 Product Analysis and Testing


Product analysis and testing is the determination of how well the product’s
actual quality, performance, and costs conform to the design objectives. If,
for example, customers’ desires are not satisfied, the product may be doomed
to failure, even though it is of high quality and low cost. Detailed design
concerns the product’s functional, form, and production design. Functionally
the product must have the characteristics to perform the desired functions in a
reliable manner. The process relates to the physical packaging of the
products, which tends to be more critical for consumer goods than for
industrial goods. Production design is concerned with how the product is
produced. Alternative machines and sequences are typically available.
Designers must plan the assembly or production sequence in a manner such
that the specified quality is delivered within acceptable costs.

The Product Development Process

Developing a new product is a major undertaking that has various identifiable


stages. As development progresses through each phase, its risk and potential
are scrutinized, both technically and business-wise. Product development
helps a product or service attain success. This includes marketability,
manufacturability and serviceability. Product’s developments give a number
of benefits.
Strategies for New Product Development and Introduction
CheckYourProgress1
Notes: a) Space is given below for your answer.
b) Check your answer with the one given at the end of this unit.
How do you understand the phases of product design? Explain the phases
with examples (Answer in about 200 words).
............................................................................................................................
............................................................................................................................
............................................................................................................................
............................................................................................................................
............................................................................................................................
............................................................................................................................
............................................................................................................................

5.2 STAGES OF PRODUCT DEVELOPMENT


PROCESS
The product development process undergoes a number of stages. These are
shown in Figure 5.2.
70
Design of
Manufacturing
Goods and Services

Figure 5.2: Product development process

a. Needs identification: Once a product idea surfaces, it must be


demonstrative that the product fulfils some consumer need.

b. Advanced product planning (Feasibility study): The next major hurdle


for a product is its feasibility study. The purpose here is to anticipate
whether the product can be successful or not. This comprehensive review
involves
• A technical assessment of the ability to produce
• A preliminary assessment of the market
• An evaluation of the economics of the proposed product and process

c. Advanced design:

d. Detailed engineering design: This stage is a series of detailed


engineering activities to develop the product, the components, the
materials, the sizes, the shapes and so on. This process typically involves
analysis, experimentation and data collection to

e. Production process design and development: Working with the detailed


product design, engineers and manufacturing specialists prepare plans for
materials acquisitions, production, warehousing, transportation and
distribution. This stage involves planning too, for production and control
system, computer information system and human resource system.
f. Product evaluation and improvement: In this stage field performance and
failure data, technical breakthroughs in materials and equipment, and
formal research all are used to monitor, analyze and redesign the product.
g. Product use and support: An important stage of product development
considers support for the consumer who uses the product.

5.2.1 Process Flow Design and Process Selection


The Process Flow Design A process is the approach that an organization
takes to transform resources into goods and services. The objective of a
process strategy is to find a way to produce goods that meet customer
requirements and product specifications within cost and other managerial
constraints. There are mainly three types of processes. These are,
71
Designing Operations a. Process focus: Low-volume and high variety processes are process
focused. It is also known as intermittent processes. The facilities are
organized around process. The layout and supervision have a process
focus.

b. Product focus: High-volume, low-variety processes are product focused.


The facilities are organized around products. They are also called
continuous processes. They have very long, continuous production runs.
Such products include paper, tin, etc.

c. Repetitive focus: The repetitive process line is the classic assembly line.
Repetitive processes use modules. Modules are parts or components
previously prepared often in a continuous process. The repetitive process
is widely used, including the assembly of virtually all automobile and
household appliances. Comparison among Process, Repetitive is Product
focus is given in Table 5.1.

Table 5.1: Comparison among Process, Repetitive and Product focus

Check Your Progress 2


Notes: a) Space is given below for your answer.
b) Check your answer with the one given at the end of this unit.
Explain the three fundamental ways to view the new product
introduction process with few examples (Answer in about 200 words).
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................

72 .........................................................................................................................
Design of
5.3 PRODUCT LIFE-CYCLE STAGES Manufacturing
Goods and Services
Operations managers need to be aware of the timing and stages that drive the
development schedules of new products (goods and services) and the
production and delivery schedules of the company’s mature products. The
product life cycles are composed of four stages, all products and services go
through the following stages:
• Introduction to the market
• Growth of volume and share
• Maturation, where maturity is the phase of relative equilibrium
• Decline occurs, because of deteriorating sales;

Introduction and Growth of the New Product (Goods and Services)


There are two new product early phases of life-cycle stages. These are initial
introduction and sales growth of the product. The “idea” for the product and
its development precedes the introduction. The entire team works on
ascertaining the marketing feasibility of the idea, as well as the feasibility of
making it and delivering it. Research and Development (R&D) may have
made sample product so that market research can test its customer
acceptability. When it is approved, P/OM and engineering swing into action
to create the production system that can make and/ or assemble it. During this
process of bringing the idea to reality, there are many “make or buy”
analyses. None of this is easy. It takes a lot of effort and attention to detail.
There is much time and talent needed to conceptualize the product, design its
specifics, organize the process for making it, cost it out, pilot test it, and so
forth. When the product is accepted, it is released for production and
marketing. All of these take place in the introductory stage.

Maturation and Decline of the New Product (Goods and Services)


When the new product or service stops growing, it is considered mature. This
means that its volume is stabilized at the saturation level for that brand. The
competitors have divided the market, and only extraordinary events, such as a
strike at a competitor’s plant, are able to shift shares and volumes. During the
introductory phase, P/OM had to deal with producing larger and larger
quantities of product. Now the marketing–production relationship reaches
equilibrium. Marketing takes specific actions during this phase to maintain
the product’s share of the market. Prices often are lowered. Coordination
between P/OM and sales is essential to meet delivery schedules on time.
Finally, the product begins to lose share, volume drops, and, depending on
the strategy, the product is either restaged or terminated. It is expected that a
new product will have been introduced previously that has grown to a
reasonable extent. The cycle of the new product is similar to that of the one
that is replaced in that it goes through introduction, growth, maturation, and
decline. Figure 5.3 illustrates the trajectory that represents the evolution of
new product or service life-cycle stages.

73
Designing Operations

Figure 5.3: Evolution of new product or service lifecycle stages.

5.3.1 Demand Prediction in Life-Cycle Stages


Life-cycle stages provide a classification for understanding the kinds of
trends that can be expected in demand. During the introduction, the demand
is led by the desire to “fill the pipeline.” This means getting the product into
the stores, warehouses, or wherever it must be to supply the customers. When
growth starts to occur, there is a trend line of increasing sales.

5.4 DESIGN FOR MANUFACTURING -


GUIDELINES
Design for Manufacturing (DFM) and design for assembly (DFA) are the
integration of product design and process planning into one common activity.
The goal is to design a product that is easily and economically manufactured.
The importance of designing for manufacturing is underlined by the fact that
about 70% of manufacturing costs of a product (cost of materials, processing,
and assembly) are determined by design decisions, with production decisions
(such as process planning or machine tool selection) responsible for only
20%. The heart of any design for manufacturing system is a group of design
principles or guidelines that are structured to help the designer reduce the
cost and difficulty of manufacturing an item. The following is a listing of
these rules.
• Reduce the total number of parts.
• Develop a modular design.
• Use of standard components.
• Design parts to be multi-functional.
• Design parts for multi-use.
• Design for ease of fabrication.
• Minimize assembly directions.
• Maximize compliance.
74
• Minimize handling. Design of
Manufacturing
Goods and Services
5.5 COMPETITIVE ADVANTAGE
Firms innovate and develop new products for unique opportunities for
competitive advantages.
• Market Share Gain
New products introduced in the marketplace provide additional “first
mover advantages” to the company. By developing new products, a
company can quickly capture a big share of the market before
competitive products are introduced.
• Higher Profitability
During the early stages, a new product facesλ less competition than a
product in a mature market; therefore, its profitability tends to be higher.
As the market becomes saturated with several competitive products,
prices start falling, and profit margins decrease.
• Enhancement of Corporate Image and Brand Name
The developments of innovative and creativeλ new products is a very
powerful source of goodwill and creates a positive corporate image.
Brand equity measures used in marketing show that firms with more
successful new product development efforts command higher respect
from customers and profitability. .
• Faster Competitive Response
Having a systematic process for new productλ development in place can
introduce new products quickly after a competitor’s product is launched.
Sony’s Play station, Microsoft’s X-Box, and Nintendo’s Wii compete
fiercely in the video game industry. Each company tries to quickly
introduce new products to compete with others.
• Operating Cost and Capacity Utilization
The product development effort is often closely linked with process
development. New products provide theλ opportunity for enhanced sales
as the demand for older products decreases over time.

5.5.1 Product Development Tradeoffs

75
Designing Operations Check Your Progress 3
Notes: a) Space is given below for your answer.
b) Check your answer with the one given at the end of this unit.
Firms innovate and develop new products for unique opportunities for
competitive advantages. Comment (Answer in about 200 words).
............................................................................................................................
............................................................................................................................
............................................................................................................................
............................................................................................................................
............................................................................................................................
............................................................................................................................

5.6 TYPES OF DESIGNS


Original design → Innovation e.g.: Microprocessor
Adaptive design → Novel application e.g.: inkjet printing concept for rapid
prototyping
Redesign: Without any change in the concept of the original design
Variant design: changing some of the design parameters.
Selection design: Selecting the components with the needed performance,
quality and cost from the catalogues of potential vendors.
Industrial design: Appeal of product to human senses
Steps in the Design Process:
The steps followed when DFMA is used in the design process are shown in
Figure 5.4.

76 Figure 5.4: Common steps taken in a DFMA study


Advantages of applying DFMA during Product Design Design of
Manufacturing
Goods and Services
Today products are – Tending to become more complex – Made/required in
increasingly large numbers – Intended to satisfy a wide variation in user
population – Required to compete aggressively with similar products –
Required to consistently high quality

Through DFMA it is possible to produce competitively priced, high-


performance products at a minimal cost. The advantages of applying DFMA
during product design are as follows:

• DFMA not only reduces the manufacturing cost of the product but it
helps to reduce the time to market and quality of the product.
• DFMA provides a systematic procedure for analyzing a proposed design
from the point of view of assembly and manufacture.
• Any reduction in the number of parts reduces the cost as well as the
inventory.
• DFMA tools encouraged the dialogue between the designer and
manufacturing engineer during the early stages of design.

5.7 DEFINITION OF DFM


“Process of proactively designing products to optimize the manufacturing
functions, assure the best cost, quality, reliability, safety, time-to-market, and
customer satisfaction” (D. Anderson).

Design for Manufacturing or Design for Manufacturability (DFM) is the


optimization of a part, product, or component's design, to create it cheaper
and more easily.
Importance of DFM
• Design decision affects manufacturing cost and productivity
• Designers play important role not only shaping, but also in
manufacturability, cost, life cycle of products

Five principles are examined during a DFM. They are:

1. Process
2. Design
3. Material
4. Environment
5. Compliance/Testing
Ideally, DFM must occur early in the design process, well before tooling
begins. In addition, properly-executed DFM needs to include all the
stakeholders — engineers, designers, contract manufacturers, mould builders
and material suppliers. This “cross-functional” DFM intends to challenge the
design — to look at the design at all levels: component, sub-system, system,
and holistic levels — to ensure the design is optimized and does not have
unnecessary costs embedded in it. 77
Designing Operations The following chart offers an excellent visual representation of the effect of
an early DFM. As the design progresses through the product life cycle,
changes become more expensive and more difficult to implement. Early
DFM allows design changes to be executed quickly, at the least expensive
location.

Pulling stakeholders together early in the design process is easier if you're


developing a new product, but even if you're dealing with an established
product, challenging the original design is a necessary element of a thorough
DFM. Too often, mistakes in a design are repeated by replicating a previous
design.

5.7.1 Design for Manufacturing and Assembly


What is ―DFMA? The concept of DFM (Design for Manufacture) is not
new, it dates back as early as 1788 when LeBlanc, a Frenchman, devised the
concept of interchangeable parts in the manufacture of muskets which
previously were individually handmade. DFM is the practice of designing
products keeping manufacturing in mind. ―Design for manufactureǁ means
the design for ease of manufacture for the collection of parts that will form
the product after assembly. Similarly, DFA is called Design for Assembly.
DFA is the practice of designing products with assembly in mind. ―Design
for assembly means the design of the product for ease of assembly. So,
design for Manufacture and assembly is the combination of DFM and DFA
as shown in Figure 5.5

Figure 5.5: Design for Manufacture and Assembly

DFMA is used for three main activities:

• As the basis for concurrent engineering studies to provide guidance to


the design team in simplifying the product structure to reduce
manufacturing and assembly costs, and to quantify the improvements.
• As a benchmarking tool to study competitors ‘products and quantify
manufacturing and assembly difficulties.
• As a should-cost tool to help control costs and to help negotiate
suppliers’ contracts

5.7.2 Factors That Affect DFM


The goal of DFM is to reduce manufacturing costs without reducing
performance. In addition to the principles of DFM, here are five factors that
can affect design for manufacturing and design for assembly:
• Minimize Part Count
78
• Standardized Parts and Materials Design of
Manufacturing
• Design for Efficient Joining Goods and Services

• Minimize Reorientation of Parts During Assembly & Machining


• Streamline Number of Manufacturing Operations/Processes
Check Your Progress 4
Notes: a) Space is given below for your answer.
b) Check your answer with the one given at the end of this unit.
Explain the principles of DFM with examples. (Answer in about 200
words).
............................................................................................................................
............................................................................................................................
............................................................................................................................
............................................................................................................................
............................................................................................................................

5.8 SUMMARY
Designing for Manufacturing and Assembly (DFM or DFMA) is a critical
part of the product development cycle. It involves optimizing the design of
your product for its manufacturing and assembly process and merging the
design requirements of the product with its production method. Employing
DFM tactics reduces the cost and difficulty of producing a product while
maintaining its quality. Design for Manufacturing is Important for:

• Cost reduction: Around 70% of the manufacturing costs of a product


can be derived from design decisions like materials and manufacturing
method. The remaining 30% of the costs make up production decisions
like process planning and tool selection. Focusing on design optimization
reduces the cost of manufacturing.
• Streamlined Production Scale-Up: The struggle of hardware
development comes from scaling from prototype to production.
Considering DFM from the beginning of the product development cycle
reduces redesign work, improves product quality, and speeds up your
time to market.

5.9 CHECK YOUR PROGRESS: POSSIBLE


ANSWERS
Check Your Progress 1
A. Recognition of need: The designing process begins with recognition of
need and deception to do something about it.
B. Definition of the problem: It must include all the specifications for the
product that is to be designed. Specifications are the inputs and output
quantities, the characteristics and the dimensions, and all the limitations
on these quantities. 79
Designing Operations C. Synthesis: After the problem is defined and a set of written and implied
specification has been obtained, the next step in design is the synthesis of
the optimum solution.

D. Analysis and optimization: Synthesis cannot take place without both


analysis and optimization, because the product under design must be
analyzed to determine whether the performance complies with the
specification

E. Evaluation: It is a significant phase of the total design process.


Evaluation is the final proof of a successful design.

Check Your Progress 2


There are three fundamental ways to view the new product introduction
process; it may be seen as market driven, technology driven or inter-
functional in nature.

• Market driven: According to this view You should make what you can
sell. In this case, the market determines new products with little regard to
existing technology and operations processes.
• Technology driven: This approach would suggest You should sell what
you can make. Accordingly new products should be driven from
production technology, with little regard for the market.
• Inter-functional view: In this view, new product introduction is inter
functional in nature and requires co-operation among marketing,
operations, engineering, and other functions. The new product
development process is neither market driven nor technology driven but
determined by a coordinated effort between functions.

Check Your Progress 3


• It Redefines The Problem
Sometimes the real issue at hand isn’t immediately obvious...or worse,
the problem we try to address is really the symptom of a larger problem.
Design thinkers always question the brief, because sometimes the real
issue isn’t seen at face value.
• It’s Collaborative
Design thinking calls for collaboration, creating a positive environment
that’s great for growth and experimenting.
• It Solves The Same Old Problem In A Different Way
It’s important to create and consider many options for similar problems,
even when the solution seems obvious. Having multiple perspectives can
lead to innovative approaches.
• It Puts The User First
Design thinking helps shift focus away from a ‘features-first’ approach
to a ‘user-first’ mentality. By observing and speaking directly to users,
you can solve the problems that real people face.
80 • It Leads To Simpler Solutions
Design perspectives don’t just address challenges, they rethink them Design of
Manufacturing
entirely. This tendency to reshape problems leads to innovations that Goods and Services
seem deceptively simple.
Check Your Progress 4
• PROCESS
The manufacturing process chosen must be the correct one for the part or
product. You wouldn't want to use a highly capitalized process like
injection moulding, which involves building tools and dies to make a
low-volume part that could have been manufactured using a lower-
capitalized method, such as thermoforming.
• DESIGN
Design is essential. The actual drawing of the part or product has to
conform to good manufacturing principles for the manufacturing process
you’ve chosen.
Be sure to discuss the design with your contract manufacturer, who can
ensure that your design conforms to good manufacturing principles for
the selected process.
• MATERIAL
It's important to select the correct material for your part/product
Again, be sure to discuss the material with your contract manufacturer,
who might have access to existing materials in their portfolio, allowing
you to secure lower material pricing.
• ENVIRONMENT
Your part/product must be designed to withstand the environment it will
be subjected to. All the form in the world won’t matter if the part can’t
function properly under its normal operating conditions.
• COMPLIANCE/TESTING
All products must comply with safety and quality standards. Sometimes
these are industry standards, others are third-party standards and some
are internal, company-specific standards.

5.10 KEYWORDS
Design for Manufacturing: It involves optimizing the design of your product
for its manufacturing.

Cost reduction: Focusing on design optimization reduces the cost of


manufacturing.

Design Simplicity: Simplifying your design cuts down on the time and
inventory needed to make your product, which correlates to its cost

Prototypes: 3D printing allows for rapid iteration so you can test out many
different designs early and often

Process: a series of actions that you do for a particular purpose.


81
Designing Operations Design: the process and skill of making drawings that show how something
should be made, how it will work, etc.
COMPLIANCE/TESTING: Compliance testing is basically a kind of an
audit which is done on the system to check if all the specified standards are
met or not.

5.11 FURTHER READINGS


Mahadevan (2015), “Operations Management: Theory & Practice”, Pearson
Education
Upendra Kachru, Production and Operations Management, Excel Books,
New Delhi.
Allspaw, John. The Art of Capacity Planning: Scaling Web Resources.
Sebastopol, CA: O’Reilly Media, 2008.
Goldratt, Eliyahu M. Theory of Constraints. Great Barrington, MA: North
River Press, 2000.
Gunther, Neil J. Guerrilla Capacity Planning: A Tactical Approach to
Planning for Highly ScalableApplications and Services. New York: Springer,
2007.
Jacobs, F. Robert, William Berry, D. Clay Whybark, and Thomas Vollman.
Manufacturing Planning and Control for Supply Chain Management. New
York: McGraw-Hill, 2011.
Operations Management THIRTEENTH EDITION William J. Stevenson
Saunders College of Business Rochester Institute of Technology
Production and Operations Management Systems Sushil Gupta and Martin
Starr
https://www.unm.edu/~bgreen/ME101/dfm.pdf
https://www.conveyco.com/blog/capacity-analysis/
https://www.hiotron.com/manufacturing-capacity-analysis/
https://www.invensislearning.com/blog/capacity-management/

82
Computerized Layout
UNIT 6 COMPUTERIZED LAYOUT Design Algorithms

DESIGN ALGORITHMS

OBJECTIVES
After studying this unit, you will be able to:
• To provide optimum space to organize equipment, facilitate the
movement of goods, and create a safe and comfortable work
environment.
• To promote order in production towards a single objective.
• To reduce the movement of workers, raw materials, and equipment
• To promote the safety of the plant as well as its workers.
• To facilitate extension or change in the layout to accommodate new
product lines or technology upgradation.
• To increase the production capacity of the organization

STRUCTURE
6.1 Automation - Introduction
6.1.1 Computerized Layout Planning
6.1.2 Need for using computer programs
6.2 Classification of computer programs of plant layout
6.3 Computerized relative allocation of facilities technique
6.3.1 Input requirements of CRAFT
6.3.2 Steps Involved in CRAFT:
6.4 Automated layout design program (ALDEP)
6.4.1 Input requirements of ALDEP:
6.4.2 Step-by-step procedure of ALDEP
6.5 Computerized relationship layout planning (CORELAP)
6.5.1 Input requirements of CORELAP
6.5.2 Step-by-step procedure of CORELAP:
6.6 Summary
6.7 Check your progress: possible answers
6.8 Keywords
6.9 Further Readings

6.1 AUTOMATION - INTRODUCTION


Automation means the use of automatic equipment and machines to do work
previously done by men. Automation issues are more related and important to
the manufacturing process. Think of a cutting machine in a garment factory.
This machine cuts a huge amount of cloth at a time. In all sectors, machines
make work easy and short. Technology is a powerful tool for developing
competitive advantage via both product and process strategy. The firms that 83
Designing Operations achieve the most success at using technology as a competitive advantage are
organizations that:
• Plan for a more distant time horizon
• Have a narrow product line, i.e., they stick to their knitting and know
their product and customer exceedingly well.
• Have strong internal technical capabilities that are tied to their strategic
analysis.
• Have consistent and stable strategic management, i.e., they seem to be
better at implementing the changes necessary for the effective use of
technology.

Now the question is what degree of technological change, mechanization, and


automation is strategically better for any organization? Responding correctly
to this question is often critical to the survival of the business. It takes
experience and wisdom to make such a decision. However, some of the
mechanization alternatives that business face today are:
A. Flexible Manufacturing systems (FMS)
B. Computer aided design (CAD) & Computer aided manufacturing (CAM)
C. Robotics
D. Automated Guided Vehicles (AGVs)
E. Computer integrated manufacturing (CIM).
A. Flexible manufacturing systems (FMS) An FMS is a process technology
that can produce a moderate variety of products in modest volumes, and
can do so quickly and with high quality. Operating costs and tools can be
reduced with an FMS. But an FMS requires very large capital
investments in equipment, planning and control system and human
resources. A flexible manufacturing system (FMS) is an arrangement of
machines interconnected by a transport system. The transporter carries
work to the machines on pallets or other interface units so that work-
machine registration is an accurate, rapid and automatic system. A
central computer controls both machines and transport. CAD and CAM
systems have provided the means to design and plan the physical
processes that will be needed to manufacture the product. This is carried
out on the factory floor in a way which gives raise to minimum cost and
maximum flexibility, by using the technology called Flexible
Manufacturing Systems (FMS).

B. Computer aided design (CAD) and Computer aided manufacturing


(CAM) The CAD or CAM is use of a computer to develop the geometry
of a design. Product design is greatly enhanced through the use of
Computer Aided design (CAD). CAD techniques are now used in
mechanical engineering and electrical engineering. Where CAD is used,
a design engineer starts by developing a rough sketch. The designer then
utilizes a graphic display to construct the geometry of a design. When a
geometric definition is completed, a sophisticated CAD system will
allow the designer to determine various kinds of engineering data, such
84
as strength or heat transfer. CAD will also allow the designer to ensure Computerized Layout
Design Algorithms
that parts fit together so there will be no interferences when parts are
subsequently assembled.

C. Robotics A robot is a programmable machine, which means that a


sequence of move scan be preset to be repeated time after time, then
reset again to perform another set of moves. When robots are part of a
transformation system, they usually provide the movement of material
between machines, They may also be used effectively to perform tasks
that are especially monotonous or dangerous, or where the task can be
enhanced by the substitution of mechanical for human effort. This would
be the case where consistency, accuracy, speed or the necessary strength
or power can be enhanced by the substitution of machines for people.

D. Automated Guided Vehicles (AGVs) Automated guided vehicles are


electronically guided and controlled carts used in manufacturing to move
parts and equipment. They are also used in offices to move mail and in
hospitals and in jails to deliver meals.

E. Computer Integrated Manufacturing (CIM) Computer integrated


manufacturing is an important and effective means of achieving
productivity improvements which must be seriously considered by
manufacturing companies wishing to become and remain competitive,
and which should be encouraged in the national interest so that
application of appropriate technology can improve our ability to compete
in international markets and against cheaper, high quality imports in the
domestic market.
Check Your Progress 1
Notes: a) Space is given below for your answer.
b) Check your answer with the one given at the end of this unit.
What degree of technological change, mechanization, and automation is
strategically better for any organization? (Answer in about 200 words).
............................................................................................................................
............................................................................................................................
............................................................................................................................
............................................................................................................................
............................................................................................................................

6.1.1 Computerized Layout Planning


A recent trend has been the development of computer programme to assist
the layout planner in generating alternative layout designs. Computerized
layout planning can improve the search of the layout design process by
quickly generating a large number of alternative layouts.

Heuristics For Plant Layout:


When there is no method which guarantees an optimal solution with reduced
computational effort, in such situation we aim at a solution which is not 85
Designing Operations necessarily optimal but which is near optimal. The method to get such a
solution is known as heuristic method. Here an attempt is made to strike a
compromise between the computational effort and the quality of the solution.
The numbers of heuristics to solve the layout problems are as follows.
• Computerized Relative Allocation of Facilities technique (CRAFT)
• Automated design layout design program (ALDEP)
• Computerized Relationship Layout Planning (CORELAP)
• Computerized Facilities and Design (COFAD)
• Plant Layout Evaluation Technique (PLANET)

6.1.2 Need for Using Computer Programs:


Generally, plant layout problems are conjunctional problems which take
more time for evaluating the best design layout by using many
interchangeable departments with different locations using analytical
methods. In order to reduce time consumption, computer programs are used,
which performs as many evaluations of interchangeable departments with
locations in a very short period of time. Thus the need of software programs
in plant layout is very advantageous.

6.2 CLASSIFICATION OF COMPUTER


PROGRAMS OF PLANT LAYOUT
The computer programs can be classified based on two perceptions.
• Construction of Algorithms
• Improvement of Algorithms

Construction of Algorithms: Computer programs help in constructing the


algorithms. A construction algorithm includes the proper selection and
placement of activities (departments), thus helps in obtaining successive
design layout.
Improvement of Algorithms: This perception of computer program provides
an idea about improvement in the quality of layout problem. In order to
improve the quality design layout, the activities (departments) are
interchanged from the initial existing layout. The following computer
programs are most commonly used in designing a plant layout.
i) Computerized Relative Allocation of Facilities Technique (CRAFT)
ii) Automated design layout design program (ALDEP)
iii) Computerized Relationship Layout Planning (CORELAP)
iv) Computerized Facilities and Design (COFAD)
v) Plant Layout Evaluation Technique (PLANET)
• Models ii, and iii are construction algorithms which generate layout by
successive addition of facilities to locations. Model is an improvement
algorithm which takes, an input and improves to the optimal solution in a
86 number of iterations
Computerized Layout
6.3 COMPUTERIZED RELATIVE Design Algorithms
ALLOCATION OF FACILITIES
TECHNIQUE (CRAFT):
Computerized relative Allocation of Facility Technique (CRAFT) is the first
improvement algorithm which is most widely used in plant layout design.
This algorithm minimizes the material handling cost between the
departments. CRAFT not only help[s in designing layout by considering
material handling cost, but also provide advancement in designing layout by
considering the interpretation not material flow. Initially CRAFT performs
the evaluation of given layout, hence considers the effects on design layout
by interchanging the departments. Pairwise exchange criteria give optimum
results, to minimize the transportation cost between the departments. The
interchanging of the departments continues to an extreme limit, where no
further improvements can be made. In these locations are exchanged w.r.t
similar are or with a common border. It allows some departments to be fixed
in position so that there is no chance of exchanging the locations.

6.3.1 Input Requirements of CRAFT


CRAFT requires input requirement in terms of
• Total number of Departments
• Number of interchangeable departments
• Number of fixed departments with their location
• Location of those departments.
• Area of each department.
• Initial Layout
• Flow data (matrix which shows no of unit loads moving between all
depts.
• Cost per unit distance ( cost matrix )

6.3.2 Steps Involved In CRAFT:


The steps involved in CRAFT are as follows.

Step-1: Provide input requirements in terms of


• Total number of Departments
• Number of interchangeable departments
• Number of fixed departments with their location.
• Location of those departments.
• Area of each department.
• Initial Layout
• Flow data (matrix which shows no of unit loads moving between all
departments.
• Cost per unit distance ( cost matrix ) 87
Designing Operations Step-2: compute the centroids of all the departments in the present layout.
Step-3: Form the distance matrix by using centroids.

Step-4: Given data on flow, distance, and cost, compute the total handling
cost of the present layout.

Step-5: Find all the possible pairwise interchanges of departments based on


the concept of the common border or equal area. For each possibility,
interchange the corresponding centroids and compute approximate costs.

Step-6: Find the pair of departments corresponding to the minimum handling


cost from among all the possible pairs of interchanges.

Step-7: Is the cost in the previous is less than the total cost of the present
layout? If yes, go to step 8. If not go to step-11.

Step-8: Interchange the selected pair of departments. Call this the NEW-
LAYOUT. Compute centroids, distance matrix and total cost.

Step-9: Is the cost of the new layout less than the cost of the present layout?

If yes go to step-10. If not go to step-11.

Step-10: The new layout is hereafter considered as the present layout. The
data on centroids, layout matrix and the total cost is retained. Go to step-5.
Step-11: Print the present layout as the FINAL LAYOUT.

Step-12: Stop the process.


Check Your Progress 2
Notes: a) Space is given below for your answer.
b) Check your answer with the one given at the end of this unit.
Computerized relative Allocation of Facility Technique (CRAFT) is the first
improvement algorithm which is most widely used in plant layout design.
Comment (Answer in about 200 words).
............................................................................................................................
............................................................................................................................
............................................................................................................................
............................................................................................................................
............................................................................................................................

6.4 AUTOMATED LAYOUT DESIGN


PROGRAM (ALDEP)
ALDEP belongs to the construction type program, which builds the layout
without using the existing layout. It is also considered as an improvement
program due to the evaluation process of accepting or rejecting the given
layout. It builds the layout by placing the most related departments, size
required and based on the closeness rating (A or E ) of A, E, I, O, U, X. It
88
adds continuously the other departments till the placement of all activities has Computerized Layout
Design Algorithms
been completed. This process is continued till all the departments are placed
in the layout and no department should be available for placing with a high
closeness rating. At this stage, the score is computed for layout in terms of
numerical values. This procedure is repeated several times and evaluates the
best layout with the maximum layout score.

6.4.1 Input Requirements Of ALDEP


The basic information required for the ALDEP algorithm is summarized
below.
• The number of departments in the layout.
• Area of each department.
• Length and width of the layout
• The values of closeness for the pairs of departments based on the
Relationship chart.
• Minimum Department Preference (MDP) value
• Sweep width.
• The least possible score for an acceptable layout.
• Total number of layouts to be generated.
• Building outline and scale of layout printout.
• The location and size of each prohibited area (if present)

6.4.2 Step-by-Step Procedure Of ALDEP


ALGORITM: The procedure for executing the ALDEP program is
described below.

Step-1: Give the input in the following manner.


• The number of departments in the layout.
• Area of each department.
• Length and width of the layout
• The values of closeness for the pairs of departments based on the
Relationship chart.
• Minimum Department Preference (MDP) value
• Sweep width.
• Number of iterations to be carried out (N)
• Current iteration number (I)
• Location and size of fixed department (if present)
• Score of the current layout.
• The least possible score for an acceptable layout.
• Total number of layouts to be generated.
• Building outline and scale of layout printout. 89
Designing Operations • The location and size of each prohibited area if present

Step-2: Consider an appropriate scale for one unit square and calculate no of
squares for all the departments. Consider an appropriate scaled layout such
that the total no of squares is within the layout area.

Step-3: Select a department randomly and place it in the layout: Perform


placement of departments considering sweep width criteria starting from top
left corner by filling equitant no of squares.

Step-4: After placing the randomly selected department in the layout, scan
the relationship chart and divide the non-selected departments into category-
A and category-B. scan the relationship chart following the condition.

check for the availability of a non-selected department in category –B If it is


non-empty, then choose a non-selected department in the category –B itself
corresponding to the maximum. REL value and place that dept in the layout.
If it is empty, then select a department randomly from category –A, and place
it in the layout.

Step-5: check for e placement of all departments n the layout. If a department


is found to be unplaced, follow the Step-3, otherwise determine the score for
the layout.

Step-6: check whether the computed score of the layout is higher than the
current best layout If yes, call the new layout as the current best layout and
save the corresponding score.

Step-7: check for the current iteration number i.e. I=N. If yes, print the
current best layout as the final layout and its corresponding score as a final
score.

If no, increase the iteration number as (I=I+1) and follow step-2.


Check Your Progress 3
Notes: a) Space is given below for your answer.
b) Check your answer with the one given at the end of this unit.
ALDEP belongs to the construction type program, which builds the layout
without using the existing layout. Comment (Answer in about 200 words).
............................................................................................................................
............................................................................................................................
............................................................................................................................
............................................................................................................................
............................................................................................................................
............................................................................................................................
90
Computerized Layout
6.5 COMPUTERIZED RELATIONSHIP LAYOUT Design Algorithms
PLANNING (CORELAP)
The computerized Relationship Layout Planning algorithm is a chart for the
construction of the layout. The layout in CORELAP can be generated by
locating the rectangular-shaped departments, if the departmental area and
layout scale allow their representation in a rectangular form. CORELAP has
the capacity to manage up to 70 departments.

6.5.1 Input Requirements Of CORELAP


The Input requirements of the CORELAP algorithm are as follows:
• The number of departments in the layout.
• Area of each department.
• Length and width of layout.
• The closeness Relationship value based on the Relationship chart (REL
chart).
• Scale of output.
• Building length-to-width ratio.
• Department pre-assignment.

6.5.2 Step-By-Step Procedure Of CORELAP:


The step-by-step procedure of the CORELAP algorithm is as follows.

Step-1: Provide basic input data in the following manner.


• The number of departments in the layout.
• Area of each department.
• Length and width of layout.
• The closeness Relationship values based on the Relationship chart. (REL
chart).
• Scale of output.
• Building length-to-width ratio.
• Department pre-assignment.

Step-2: consider scale as 1 square = 600 sq.m Compute no. of square units
for all the departments. no of squares = dept. area /Area per square in layout

Step-3: By using the REL chart, compute the total closeness rating for all the
departments.

91
Designing Operations

Step-4: Select the department with the highest TCR value. The selected
department occupy 1 square and it is placed in the centre of the layout matrix.

Step-5: Check the close relationship of the first selected dept with other
departments. And note the corresponding closeness value. now select the
maximum REL value dept

Select that department which has maximum REL Value as 3rdseleced dept.
Step-6: Repeat the above procedure with unassigned departments.

Check Your Progress 4


Notes: a) Space is given below for your answer.
b) Check your answer with the one given at the end of this unit.
Explain the list of input requirements of CORELAP algorithm (Answer in
about 200 words).
............................................................................................................................
............................................................................................................................
............................................................................................................................
............................................................................................................................
............................................................................................................................
............................................................................................................................

92
Computerized Layout
6.6 SUMMARY Design Algorithms

CORELAP
It begins by calculating which of the activities in the layout is the busiest or
most related. The sums of each activity’s closeness relationships with all
other activities are compared and the activity with the highest total closeness
relationship (TCR) count is selected and located first in the layout matrix.
This activity is named Winner. Next, an activity which must be close to the
winner is selected and placed as adjacent as possible to winner: This activity
is denoted as A (closeness absolutely necessary) and is named Victor. A
search of winner’s remaining relationships for more A-related victors is then
made. These are placed, again, as close to each other as possible. If no more
A’s can be found, the victors become potential winners and their
relationships are searched for A’s. If an A is found, the victor becomes the
new winner, and the procedure is repeated. When no A’s are found, the same
procedure is repeated for E’s (closeness Especially important), I’s (closeness
important), and 0’s (Ordinary closeness o.k.) until all activities have been
placed in the layout. CORELAP also puts a value on the U (closeness
Unimportant) and X (closeness not desirable) relationship.

ALDEP
It uses a preference table of relationship values in matrix form to calculate the
scores of a series of randomly generated layouts. If for example, activities 11
and 19 are adjacent, the value of the relationship between the two would be
added to that layout’s score. A modified random selection technique is used
to generate alternate layouts. The first activity is selected and located at
random. Next, the relationship data are searched to find an activity with a
high relationship to the first activity. This activity is placed adjacent to the
first. If none is found, a second activity is selected at random and placed next
to the first. This procedure is continued until all activities are placed. The
entire procedure is repeated to generate another layout. The analyst specifies
the number of layouts wanted which must satisfy a minimum score.

CRAFT
It is the only one which uses flow of materials data as the sole basis for
development of closeness relationships. Material flow, in terms of some unit
of measurement (pounds per day, in terms of skid-loads per week), between
each pair of activity areas, forms the matrix to the programme.
A second set of input data allows the user to enter cost of moving in terms of
cost per unit moved per unit distance. In many cases this cost input is
unavailable or inadequate, in which case it can be neutralized by entering 1.0
for all costs in the matrix.
Space requirements are the third set of input data for CRAFT. These take the
form of an initial or an existing layout. For new area layouts, hest guess or
even completely random layouts can be used. In any case, activity
identification numbers, in a quantity approximate to their space requirements,
are entered in an overall area of continuation. The location of any activity can 93
Designing Operations be fixed in the overall area through control cards CRAFT limits the number
of activities involved in the layout to 40.

6.7 CHECK YOUR PROGRESS: POSSIBLE


ANSWERS
Check Your Progress 1
Responding correctly to this question is often critical to the survival of the
business. It takes experience and wisdom to make such a decision. However,
some of the mechanization alternatives that business face today are:

A. Flexible Manufacturing systems (FMS)


B. Computer-aided design (CAD) & Computer-aided manufacturing
(CAM)
C. Robotics
D. Automated Guided Vehicles (AGVs)
E. Computer integrated manufacturing (CIM).

Check Your Progress 2


Computerized relative Allocation of Facility Technique (CRAFT) is the first
improvement algorithm which is most widely used in plant layout design.
This algorithm minimizes the material handling cost between the
departments. CRAFT not only help[s in designing layout by considering
material handling cost, but also provide advancement in designing layout by
considering the interpretation not material flow. Initially CRAFT performs
the evaluation of given layout, hence considers the effects on design layout
by interchanging the departments. A pair wise exchange criteria gives an
optimum results, to minimize the transportation cost between the
departments. The interchanging of the departments continues to extreme
limit, where no further improvements can be made. In this locations are
exchanged w.r.t similar are or with common border. It allows some
departments to be fixed in position so that there is no chance of exchanging
the locations.

Check Your Progress 3


ALDEP belongs to the construction type program, which builds the layout
without using the existing layout. It also considered as an improvement
program due to the evaluation process of accepting or rejecting the given
layout. It builds the layout by placing the most related departments, size
required and based on the closeness rating (ir A or E ) of A, E, I, O, U, X. it
adds continuously the other departments till the placement of all activities has
been completed. This process is continued till all the departments are placed
in he layout and no department should be available for placing with high
closeness rating. At this stage , score is computed for layout in terms of
numerical values. This procedure is repeated for several times and evaluates
the best layout with maximum layout score.

94
Computerized Layout
Check Your Progress 4 Design Algorithms
The Input requirements of CORELAP algorithm is as follows
• The number of departments in the layout.
• Area of each department.
• Length and width of layout.
• The closeness Relationship value based on the Relationship chart (REL
chart)
• Scale of output
• Building length to width ratio
• Department pre-assignment.

6.8 KEYWORDS
Layout: A layout defines the structure for a user
Facility layout: an arrangement of different aspects of manufacturing in an
appropriate manner as to achieve desired production results
Heuristic algorithms: used to solve NP problems and decrease the time
Product line: A product line is a group of related products all marketed
complexity of problems by giving quick solutions under a single brand name
that is sold by the same company
Material flow: Material flow, a model used in supply chain management,
represents the transportation of raw materials, parts, work-in-progress
inventory
Iterations: the act of repeating; a repetition. a different form or version of
something:
Systematic: methodical in procedure or plan

6.9 FURTHER READINGS


Upendra Kachru, Production and Operations Management, Excel Books,
New Delhi.
Chan, Yupo, Location theory and Decision Analysis with Facility – Location
and Landuse Models, Cincinnati, OH: South-Western College Publishing,
2001.
Allspaw, John. The Art of Capacity Planning: Scaling Web Resources.
Sebastopol, CA: O’Reilly Media, 2008.
Goldratt, Eliyahu M. Theory of Constraints. Great Barrington, MA: North
River Press, 2000.
Gunther, Neil J. Guerrilla Capacity Planning: A Tactical Approach to
Planning for Highly ScalableApplications and Services. New York:
SpringerVerlag, 2007.
Jacobs, F. Robert, William Berry, D. Clay Whybark, and Thomas Vollman.
95
Designing Operations Manufacturing Planning and Control for Supply Chain Management. New
York: McGraw-Hill, 2011.
La Piana, David. The Nonprofit Strategy Revolution: Real Time Strategic
Planning in a Rapid Response World. St. Paul, MN: Fieldstone Alliance,
2008.
Capacity Management and Aggregate Production Planning
Buxey, G., Production Planning for Seasonal Demand, International Journal
of Operations and Production Management, 13(7), July 1993, pp. 4–21.
Malhotra, M.K., and Ritzman, L.P., Scheduling Flexibility in the Service
Sector: A Postal Case Study, Production and Operations Management, 3,
Spring 1994, pp. 100–117.
Plambeck, E.L., and Taylor, T.A., Sell the Plant? The Impact of Contract
Manufacturing on Innovation, Capacity, and Profitability, Management
Science, 51(1), January 2005, pp. 133–150.
Smith-Daniels, V., Scheweikhar, S., and Smith-Daniels, D., Capacity
Management in Health Care Services: Review and Future Research
Directions, Decision Sciences, 91, 1988, pp. 889–919.
IARE_PLMH_LECTURE_NOTES%20(%20computerised%20layouts).pdf
https://www.unm.edu/~bgreen/ME101/dfm.pdf
https://www.conveyco.com/blog/capacity-analysis/
https://www.hiotron.com/manufacturing-capacity-analysis/
https://www.invensislearning.com/blog/capacity-management/

96

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy