Before starting production or manufacturing in a concern, space and machines
should be arranged properly depending on the type of production system and
the type of products to be manufactured or produced. Facility layout determines
the arrangement of machineries and various facilities following the ...
Before starting production or manufacturing in a concern, space and machines
should be arranged properly depending on the type of production system and
the type of products to be manufactured or produced. Facility layout determines
the arrangement of machineries and various facilities following the variety of
methods. Initially, facility layout can be classified into some basic types of layouts
such as product layout, process layout, fixed position layout, and cellular layout.
However, there are significant numbers of computerized programs that can assist
facility layout designing.
Facility layout draws concepts from various disciplines such as engineering, design, architecture, accounting, finance, and behavioral science.
Therefore, facility layout is a multidisciplinary area of study. This chapter
emphasizes mainly on the computerized facility layout design. Therefore,
various aspects of facility layout concept are discussed in this chapter in different sections.
Facility layout can be broadly categorized into the following types. In practical scenario, a mix of these layouts may be observed depending on the type118 7. Facility Layout
of production or manufacturing system and the type of products to be manufactured or produced. Each of these layouts is discussed in the following
subsections:
• Process layout
• Product layout
• Combination layout
• Fixed position layout
• Group layout
7.2.1 Process Layout
In process layout, similar types of operations are clustered together in a particular
location. For example, all the lathe machines or all the milling machines can be
grouped together so that a batch of jobs can be processed by these groups one by
one. Thus, this kind of layout is more suitable for batch production. Therefore, in
this type of layout, similar facilities are grouped together as shown in Figure 7.1.
The batch of products moves from one process to another process. Hence, the
paths travelled may be long and backtracking may happen. Sometimes, job shop
production may also adopt this type of layout, if the variety of the products is
large and the volume is comparatively low.
The advantages of process layout are:
• Better utilization of machines is possible
• Use of fewer machines is observed
• Better utilization of production facilities is certain
• Flexibility for both equipments and the personnel involved can be
observed
• Work distribution among the machines and the workers becomes
easier.
The disadvantages of process layout are listed below:
• Jobs will have to move longer paths
• Backtracking may happen
• Long movement may result in problems in material handling
• Productivity reduces because of the number of increasing setups
• Higher throughput time may be observed
• Process time is higher that results in higher work-in-process inventory
• More space and capital are required for the increasing work-in-process
inventory.
The focus of the product layout is the sequence of process required for a particular product. In this layout,
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Chapter 8: Facility location-allocation theory Le Duc Dao, PhD Department of Industrial Engineering Mechanical Faculty Ho Chi Minh City, University of Technology Phone: 0937286746 Email: [email protected] 1
Supply chain system problem 2
Problem in Supply chain Data flow management Distribution problen Product replenishment problem (fruit, Vegetable..) Location-Allocation probem 3
Factory location-allocation Affected factors for factory allocation 4 Factor Location Transportation Market Labor Power Climate condition Water Land Opponents Disposal of waste
Inside google headquaters 5 https://www.youtube.com/watch?v=D-ixbvL5y8M&t=135s
Method for Factory location-allocation Resource Location-Allocation in factory Qualitative selection method Survey Seft -defined relationship such as A-E-I-O-U Quantitative selection method The importation of affected factor Quantitative and profit-cost analysis 6 Mathematical modeling Modeling method
Algorithm: We will select the plan based on weighted factors Determine the factors and weights Determine the score of each implementation plan related to mentioned factors Determine the overall score We will choose the plan has the largest score 7 Factory location-allocation
W eighted coefficient method 8 The Manager concern three factors for building the new factory. After evaluation, the score has been listed in the table below. Factor Weight P – A P– B P – C Labor skill 0.5 70 70 50 Preparedness of material 0.3 60 40 90 Potential market 0.2 70 95 60 Which plan should be used ?
9 Factor PA – A PA – B PA – C Score W-score Score W-score Score W-score Labor skill (0.5) 70 35 70 35 50 25 Preparedness of material (0.3) 60 18 40 12 90 27 Potential market (0.2) 70 14 95 19 60 12 Overall Score 67 66 64 Overall Score = score of P-A Weighted factor score W eighted coefficient method
10 Factor PA – A PA – B PA – C Score W-score Score W-score Score W-score Labor skill 70 31.5 70 31.5 50 22.5 Preparedness of material 60 24 40 16 90 36 Potential market 70 10.5 95 14.25 60 9 Labor skill 66 61.75 67.5 The plan has been evaluated subjectively based on the weighted scores, thus easily causing the in-correct chosen . W eighted coefficient method What happen if we change the weighted score of factors, for example , 0.45 (Labor ), 0.4 (material preparedness), 0.15 potential market
Given the table below, could you recommend for managers the plan 11 Factor P – A P– B P – C Score W-score Score W-score Score W-score H1 (0.2) 50 80 45 H2 (0.35) 70 60 75 H3 (0.15) 60 50 70 H4 (0.3) 40 70 85 Plan ? W eighted coefficient method 2 min
Financial analysis If the fixed cost and variable cost of each production plan has been determinized, we will select the plan having the lowest cost https://www.youtube.com/watch?v=f640XIT7ZgA 12
Financial analysis The company considers three production plan with variable cost and fixed cost shown in the table Production plan Fixed cost Variable cost (unit) A 10.000.000 250 B 25.000.000 150 C 60.000.000 50 13
Financial analysis Total production cost = (fix cost ) + (variable cost ) x (Production quantity plan – A: Total cost= 10.000.000 + 250 x 250.000 = 72.500.000 plan – B: Total cost = 25.000.000 + 150 x 250.000 = 62.500.000 Plan – C: Total cost = 60.000.000 + 50 x 250.000 = 72.500.000 Plan B is the optimal Plan when production is under 250000 units/years What happen if production changed 14
Financial analysis Production cost changed according to the production quantity Total cost Production quantity 15
In class exercises – 15 min Plan A B C Fix cost 500 300 600 Variable cost 2 3 1 Unit million VND We will make plan to build the distribution center. Recommend for the manager according to production quantity 16
Has been applied in a lots of field Hospital allocation School/University Allocation Warehouse allocation Canteen Allocation 17 Factory location-allocation model 17
Decide the distance based on Rectilinear distance: 18 Factory location-allocation model Decide the distance based Euclidean distance:
Factory location-allocation model Objective function Distance Với : 19 New location Current location Weight which is used to present the relationship between new machine/department with the current one Distance between new machine/department with the current one
We can solved it using two approach 20 Factory location-allocation model Minisum approach We minimize the weighted distance between the new machine/department with the current one Minimax approach We minimize the maximum distance from new machine/department to the current one be
Minisum approach Objective X-coordinate of the new machine will be the same with the X-coordinate of one of current machine/department 21
Algorithm Define X-coordinate Arrange X-coordinate of current machine/department by increasing order Calculate the cumulative addition of weighted If cumulative addition is larger the ½ of total , this location will be the X-coordinate of new machine/ department Similar for Y-coordinate 22 Minisum approach
If we cannot locate the new machine to the best location, the optimal location will be determined based on the objective function by choosing the min f( x,y ) 23 Minisum approach
EX: Define the new supplied warehouse for 5 firm having the coordinate (X,Y) in the table below 24 Minisum approach
Coordinate Weighted number Minisum approach 25 define x coordinate : Current Warehouse i Coordinate Weighted number Current Warehouse i
26 i Relationship between New- define y coordinate : Coordinate Minisum approach
Minisum approach Optimal location will be x=5 và y=4 Objective value 27
LINGO model 28 Result Minisum approach
Minisum approach Suppose we cannot locate the machine to the best choice, Which location (O1-O7) should be used to put the new machine 29
Minisum –exercises 10 min Current equipment has been listed below Find the optimal location for new equipments and Obj Define the optimal location for new machine if we only have three potention location (6,4), (4,7), (3,8) 31 Equipment x y Weight of new-current A 1 3 6 B 2 5 8 C 1 7 3 D 8 2 4 E 6 9 3 F 5 4 1
Minimax approach Minimax approach We minimize the maximum distance from the new machine/department to the current one be Algorithm We calculate 5 optimal value 32 The optimal location will be located in the line between With The objective value c 5 /2
33 We want to locate fire station between 8 departments. Fire station should be put near all departments. You may use the minimax approach to give us the optimal location Minimax approach
Minimax approach 34 Optimal location should be ?
Minimax approach 35
Minimax Approach Lingo model Result X = 4.45 Y = 3.55 The line will be formed by A and B and it includes point (4.45, 3.55) 36
In class exercises 10 min Given the department A-K with the coordinate X,Y below. Use the minimax approach to locate the health care center to support all of departments 37 Department X Y A 3 B 9 2 C 1 6 D 5 4 E 3 3 F 7 4 G 8 2 H 9 9 K 6 6
Model for N factories/resources How can we define more than one machine/ department Objective function min f(x) = total distribution cost (the sum of transportation cost between new machine + the sum of transportation cost between new machine and current machine ) 38 Location of new machine/department Location of current machine/department Transportation cost of 1/unit form j to Transportation cost of 1/unit form j to i Distance from j to k Distance from j và i
Rectilinea r: Euclidean: 39 Model for N factories/resources
We want to locate 2 new machines to support three current machines A=(1,5), B=(4,10) and C=(10,3). The flow of machine has been listed below Build the objective function based on Rectilinear distance 40 Model for N factories/resources
41 Model for N factories/resources Rectilinear distance
Rectilinear distance lingo model Kết quả : 42 Model for N factories/resources
43 Model for N factories/resources Modeling based Euclidean distance- Answers