Exam 2 IE 4516 Plant Design and Layout Study guide

Format
1. 12 T/F = 24 points
2. 6 M/C = 18 points
3. 4 Problems = 40 points
4. 1 Case Study = 20 points
102 points total + 5 point Bonus

Topic 1 – Ch#5 Material Handling

Definition and importance of Facility planning and design

- Material handling is a means by which total manufacturing costs are

reduced through more efficient material flow control, lower inventory
and improved safety

- Materials handling and storage accounts for:

 25% of all employees
 55% of factory space
 87% of production time
 15-70% of the production cost of a product
 Damage to 3-5% of the products handled

1. Materials handling is the art and science of moving, storing, protecting, and
controlling material
2. Materials handling means providing the
◦ Right amount of the right material,
◦ In the right condition,
◦ At the right place,
◦ At the right time,
◦ In the right position,
◦ In the right sequence,
◦ For the right cost,
◦ Using the right method
 Material Handling Design: 10 MH Principles per www.mhia.org
(Not necessary to memorize but be familiar with)
1. Planning principle
◦ Prescribed course of action
◦ Material Handling plan
 What? - Material
 When & Where? - The moves
 How & Who? - Method
2. Standardization principle
◦ Less variety and customization in the methods and equipment
3. Work principle
◦ Measure of work:
 Material flow X distance moved
4. Ergonomic principle
◦ Adapt work or working conditions to suite the abilities of the worker
5. Unit Load principle
◦ Unit that can be stored or moved as a single entity at one time
6. Space Utilization
◦ Consider 3D- cubic space
7. System principle
◦ A collection of interacting and/or interdependent entities forming a
unified whole
8. Automation principle
◦ Use of technology of operate and control production
9. Environmental principle
◦ Not to waste natural resources and eliminate effects of our action on
environment
10.Life-Cycle Cost principle
◦ Consider all cash flows from planning until method and/or is replaced

Material Handling Equation

(* Not actual equation? *)
 MHS Design Process

1. Define the objectives and scope for the MHS

2. Analyze the requirements for:
◦ Moving, storing, protecting and controlling material
3. Generate alternative designs for meeting MHS requirements
4. Evaluate alternative MHS designs
5. Select the preferred design for:
◦ Moving, storing, protecting and controlling material
6. Implement the preferred design including:
◦ Selection of suppliers, training of personnel, installation, debug and
startup of equipment and periodic audits of system performance

MHS Planning Chart

(Did the best I could formatting it for word)

MHS Planning Chart with notes

 Unit Load Definition
 A central component of any materials handling system is the definition of a
unit load
 A unit load is the single item picked up and moved between two locations
 A unit load may contain many items
• Not necessarily identical
 A unit load may be different in different parts of the system

Unit Load Example

Example – Sheet metal stamping (video)
 Delivery and storage of raw material
• Unit load = A coil of steel
 Blanking operation
Unit load = Pallet of blanks. One coil generates multiple unit
loads of blanks
 Stamping operation
Unit load = A rack of stamped parts. One pallet of blanks
generates multiple unit loads of racks
 Assembly operation
Unit load = One vehicle body. One rack of parts is moved on
multiple vehicle bodies

Unit Load Measures of Performance

How do we evaluate Unit Load Design?
◦ Container Space Utilization
◦ Storage Space Efficiency
◦ Container Nesting Ratio
◦ Trailer Space Utilization
◦ Total Warehouse Area Required
◦ Warehouse Cube Utilization
◦ Highway Trailer / Container Utilization
◦ # Of Unit Loads to Move X
◦ # Of Truckloads / Containers to Move X
 Layout Planning Models and Design Algorithms
 Block layout- location, shape and size of each department
 Detailed layout- exact location of all equipment, work benches, and storage
areas within each department
* Which comes first, the block layout or the detailed layout?
ANS: Block comes first; determine space requirements and constraints. These
can be “massaged” into a detailed design later.

MH decisions impact effectiveness of a layout:

1. Centralized versus decentralized storage of work-in-process (WIP),
tooling, and supplies
2. Fixed-path versus variable-path handling
3. The unit load planned
4. The degree of automation used in handling
5. The type of level of inventory control, physical control, and computer
control of materials
…Thus Both the layout and MH should be considered simultaneous through
iterative process.

1. Production line- large, stable demand for a standardized product

◦ E.g., engine block manufacturing
EX:

2. Fixed materials location low sporadic demand awkward to move

◦ E.g., aircraft, ship, buildings
 3. Product family medium demand for a medium number of similar
components. Similar components form groups.
E.g., cellular manufacturing

4. Process- combination of workstations containing “similar” processes

E.g. metal cutting departments, gear cutting departments
The difficulty in defining process departments is in the interpretation of the word
“similar.”

Developing Layouts:
Aid facility planner in developing layout alternatives
 Two types of procedures:
Construction- “from scratch”
Improvement- seeking improvements in an existing layout
 Manual vs. Computerized
Manual- Apple’s, Reed’s, SLP, Relationship and Graph based methods
Computerized- CRAFT, BLOCPLAN, MIP, LOGIC and MULTIPLE

Apple’s Plant Layout Procedure

◦ 1. Procure the basic data.
◦ 2. Analyze the basic data.
◦ 3. Design the productive process.
◦ 4. Plan the material flow pattern.
◦ 5. Consider the general material-handling plan.
◦ 6. Calculate equipment requirements.
◦ 7. Plan individual workstations.
◦ 8. Select specific material handling equipment
◦ 9. Coordinate groups of related operations.
◦ 10. Design activity interrelationships.
◦ 11. Determine storage requirements.
◦ 12. Plan service and auxiliary activities.
◦ 13. Determine space requirements.
◦ 14. Allocate activities to total space.
◦ 15. Consider building types.
◦ 16. Construct master layout.
◦ 17. Evaluate, adjust, and check the layout with the appropriate
persons.
◦ 18. Obtain approvals.
◦ 19. Install the layout.
◦ 20. Follow up on implementation of the layout.

Reed's Plant Layout Procedure

◦ 1. Analyze the product or products to be produced.
◦ 2. Determine the process required to manufacture the product.
◦ 3. Prepare layout-planning charts.
◦ 4. Determine workstations.
◦ 5. Analyze storage area requirements.
◦ 6. Establish minimum aisle widths.
◦ 7. Establish office requirements.
◦ 8. Consider personnel facilities and services.
◦ 9. Survey plant services.
◦ 10.Provide for future expansion.

Muther’s Systematic Layout Planning (SLP) Procedure

 o Foundation- activity relationship chart
o Objective-proximity
o Outcome- block layouts

1) Based on Input Data

o Qualitative data- relationship chart
o Quantitative data- from-to-chart
o Both qualitative and quantitative data

2) Based on Layout Representation

Discrete- area of the department is rounded off to the nearest integer number of
grids

Continuous- no underlying grid

Department Shapes
 Shapes affect:
Efficiency & Effectiveness of detailed layout
Design of main aisles
 3 measures:
1. SER / Dept. Area
Smallest Enclosing Rectangle (SER)
2. Long Side of SER / Short Side of SER
3. Shaper Factor = Perimeter / [4 x (SqRoot Area)]
If ideal shape is a square
Reasonable values are 1.0 <= F <= 1.4
 SER / Dept. Area
 Long Side of SER / Short Side of SER
 Shaper Factor = Perimeter / [4 x (SqRoot Area)]
 Warehouse Operations

Importance of Warehousing Operations

 JIT (Just-in-time)- more frequent shipments
 Quick response- same day or next day delivery
 Quest for quality- increased shipping accuracy
 Customer service- increase in the number of value adding activities at the
warehouse including kitting, special packaging, label application, etc.
 SKU (stock-keeping units) proliferation- wider variety of products available
to customers

Warehousing
 Part of a firm’s logistics system that stores products at and between point of
origin and point of consumption.
 Term “Warehousing” is referred as transportation at zero miles per hour
 Warehousing provides time and place utility for raw materials, industrial
goods, and finished products, allowing firms to use customer service as a
dynamic value-adding competitive tool.

Purpose of a Warehouse
1. Hold inventory- to balance & buffer between the variation between
production schedules and demand
Located near the point of manufacture
2. Accommodate & Consolidate products- from various points of manufacture
within a single firm or from several firms
Combined shipment to common customers
Located central to production locations
3. Rapid response- to customer demand by shorten transportation distance to
permit

Warehouse Functions
1. Receiving
2. Inspection & Quality Control
3. Repackaging
4. Putaway
5. Storage
6. Replenishment
7. Postponement
8. Order Picking
9. Sortation
10. Packing & Shipping
11. Cross-docking
Cont…
 Storage Operations
 Storage & Warehousing Resources are:
Space, Equipment & Personnel
Maximize:
 Space Utilization (e.g., through planning)
Space is the largest capital cost
 Equipment Utilization (e.g., through adequate selection)
Material handling equipment is the second largest capital cost
 Labor Utilization (e.g., providing necessary personnel requirements)
Labor is the largest operating cost
 Material Accessibility (e.g., through layout design)
 Material Protection (e.g., through personnel training, adequate combination
of space, equipment & layout).

Storage Operations:
Space Planning
 Storage Analysis Chart (SAC)
Type (bundle, pallet)
Capacity
Size & Weight
Expected Volume / Amount
Max; use if materials received together
Average; use if materials received over time
Storage Method, Specifications & Space Requirements (W, H & D)
 Method Assignment: Fixed or Random

Method Assignment; two philosophies:

 Fixed or Assigned Location Storage
 Each SKU is stored in a specific location
 May result in larger space needs
 Needs space for max expected quantity
 Storage can be optimized by SKU activity
 Random or Floating Location Storage
 SKUs assigned to available space
 Needs space for average expected quantity
 Superior for seasonal or dynamic conditions
Hybrid: Class-based dedicated storage w/ randomization
 Storage Layout Planning: Considerations
 Popularity
Pareto’s law
The Pareto principle (also known as the 80/20 rule, the law of the
vital few, or the principle of factor sparsity) states that, for many
events, roughly 80% of the effects come from 20% of the causes.
Most active products should be closer
 Similarity
Commonly received / shipped together
 Size
Heavy, bulky, hard-to-handle close to point of use
 Characteristics
Perishability, Crushable, Odd Shapes, Hazardous, Security, Compatibility
 Space Utilization
Space Conservation, Space Limitations, Accessibility

Storage Layout Planning: Stock Location

 Point-of-use Storage
Inventory stored close to where it will be used
JIT and Repetitive Manufacturing Systems
Advantages:
Materials are readily accessible to users
Material handling is reduced or eliminated
Central storage costs are reduced
Material is accessible all the time
 Central Storage
Inventory stored in one location
Advantages:
Ease of control
Inventory record accuracy is easier to maintain
Specialized storage can be used
Reduced safety stock, since users do not need to carry their own safety stock

Warehouse Space Estimation

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