Week 1

Determine how an activity’s tangible fixed assets best support achieving the activity’s objective

Number, location, size of warehouses

Centralized or decentralized storage of material

Reuse existing or build new facilities

Required flexibility w.r.t. market and technology

Interface between storage and manufacturing

Level of vertical integration

Step 1: Definition of variables

1a: decision needs to be made on? Express this by using e.g. x1, x2, etc. Clearly explain each variable.

1b: indicate valid range of all variables (integer, real, positive, negative, zero-one)

Step 2: Define Objective

2a: Choose between minimize and maximize

2b: What do you want to achieve? Express this mathematically by using variables and input data.

Step 3: Formulate all constraints

Develop mathematical relationships to describe constraints.

Use either <, >, =, ≤, or ≥

Clean up the formulas!

Proper facilities planning along the supply chain ensures that the product will follow the supply chain series buymake-move-store sell to the satisfaction of the ultimate customer.

• Flexibility

• Modularity

• Upgradability

• Adaptability

• Selective operability

• Environmental and energy friendliness

• Total integration—the integration of material and information flow in a true, top-down progression that begins with the customer.

• Blurred boundaries—the elimination of the traditional customer/supplier and manufacturing/warehousing relationships, as well as those among order entry, service, manufacturing, and distribution.

• Consolidation—the merging of similar and disparate business entities that results in fewer and stronger competitors, customers, and suppliers. Consolidation also includes the physical merging of sites, companies, and functions.

• Reliability—the implementation of robust systems, redundant systems, and fault-tolerant systems to create very high levels of uptime.

• Maintenance—a combination of preventive maintenance and predictive maintenance. Preventive maintenance is a continuous process that minimizes future maintenance problems. Predictive maintenance anticipates potential problems by sensing the operations of a machine or system.

• Economic progressiveness—the adoption of innovative fiscal practices that integrate scattered information into a whole that may be used for decision making.

• Facilities planning determines how an activity’s tangible fixed assets best support achieving the activity’s objective.

  For a manufacturing firm, facilities planning involves the determination of how the manufacturing facility best supports production

• The location of the facility refers to its placement with respect to customers, suppliers, and other facilities with which it interfaces. Also, the location includes its placement and orientation on a specific plot of land

• What is meant with the design component?

  • The design components of a facility consist of the facility systems, the layout, and the handling system

Economic considerations force a constant reevaluation and recognition of existing systems, personnel, and equipment. New machines and processes render older models and methods obsolete

• Health considerations

• Energy

• Increased need for productivity and competitiveness

• Risks for fire

• Pilferage (diefstal)

• Define

  • Define (or redefine) the objective of the facility

  • Specify the primary and support activities to be performed in accomplishing the objective.

• Analyze the problem

  • Determine the interrelationships among all activities.

• Determine the space requirements for all activities

  • Generate alternative facilities plans

• Evaluate the alternatives

  • Evaluate alternative facilities plans.

  • Evaluate alternative facilities plans

• Select the preferred design

• Implement the design

• Maintain and adapt the facilities plan

  • As new requirements are placed on the facility, the overall facilities plan must be modified accordingly

• Redefine the objective of the facility

• Vision: A description of where you are headed

• Mission: How to accomplish the vision

• Requirement of Success: The science of your business

• Guiding Principles: The values to be used while pursuing the vision

• Evidence of Success: Measurable results that will demonstrate when an organization is moving toward its vision

• Strategic facilities planning

  • There must be alignment between overall strategy and supply chain

• Use the three dimensions for improvement

  • Time is also very important

• Supply chain synthesis

• The facilities planning process should be integrated and not allow selfishness

• In the facilities planning process, everyone involved should understand the energy of change and have a desire to harness this energy for the competitive advantage of the total pipeline.

• Facilities planning should be a continuous improvement process

• A proactive rather than a reactive role for facilities planning is recommended for facility planners

Product design involves both the determination of which products are to be produced and the detailed design of individual products

The facilities planner must be aware of the degree of uncertainty that exists concerning the mission of the facility being planned, the specific activities to be performed, and the direction of those activities. Depending on the type of products being produced, the business philosophy concerning facilities, and such external factors as the economy, labor availability and attitudes, and competition, the occupants of a facility might change frequently or never change at all.

• Use a Quality Function Deployment

• Benchmarking (looking at competition

• Using CAD, designers are able to make very detailed designs per part and test with these

• With concurrent engineering, a simultaneous consideration in the design phase of lifecycle factors such as product, function, design, materials, manufacturing processes, testability, serviceability, quality, and reliability. As a result of this analysis, a less expensive but functionally equivalent product design might be identified.

• The process planner addresses who should do the processing; namely, should a particular product, subassembly, or part be produced in-house or subcontracted to an outside supplier or contractor? The “make-or-buy” decision is part of the process planning function.

The scope and magnitude of activities within a manufacturing facility are dependent on the decisions concerning the level of vertical integration. Such decisions are often referred to as “make or-buy” decisions or “sourcing” decisions

The input to the facilities planner is a listing of the items to be made and the items to be purchased. The listing often takes the form of a parts list or a bill of materials.

Such decisions are based on previous experiences, related requirements, available equipment, production rates, and future expectations. Therefore, it is not uncommon for different processes to be selected in different facilities to perform identical operations.

Process identification consists of a description of what is to be accomplished. For a manufactured product, process identification consists of (a) a parts list indicating what is to be manufactured, (b) component part drawings describing each component, and (c) the quantities to be produced.

• Computer aided process planning (CAPP) can be used to automate the manual planning process [8]. There are two types of CAPP systems:

  • variant

    • In a variant CAPP, standard process plans for each part family are stored within the computer and called up whenever required.

    • Less expensive

  • generative

    • In generative process planning, process plans are generated automatically for new components without requiring the existing plans.

• Step 1 of the procedure involves the determination of the operations required to produce each component

• Step 2 involves the identification of various equipment types capable of performing elemental operations.

• Step 3 includes the determination of unit production times and equipment utilizations for various elemental operations and alternative equipment types.

• The utilizations are inputs into step 4 of the procedure

• Step 5 involves an economic evaluation of alternative equipment types

• The results of the economic evaluation along with intangible factors such as flexibility, versatility, reliability, maintainability, and safety serve as the basis for step 6.

• Use and assembly chart

  • The easiest method of constructing an assembly chart is to begin with the completed product and to trace the product disassembly back to its basic components.

  • Gives an overview of whats needed when

• Operation process chart

  • Gives overview of flow in facilityT

    • The operation process chart can also include materials needed for the fabricated components. Just like operations times

    • The operation process chart can be complemented with transportations, storages, and delays (including distances and times) when the information is available. Such a chart is referred to as a flow process chart by some and a process chart by others

• Precedence diagram

  • The precedence diagram is a directed network and is often used in project planning.

  • It establishes the precedence relationships that must be maintained in manufacturing and assembling a product. No additional constraints are implicitly imposed; no assumptions are made concerning which parts move to which parts; no material handling or layout decisions are implicit in the way the precedence diagram is constructed.

• Affinity Diagram

  • Brainstorming with post its

• Interrelationship Digraph

  • map the logical links among related items

• Tree Diagram

  • The tree diagram is used to map in increasing detail the actions that need to be accomplished in order to achieve a general objective.

• Matrix Diagram

  • The matrix diagram organizes information such as characteristics, functions, and tasks into sets of items to be compared.

  
  

• Contingency Diagram

  • The contingency diagram, also known as the process decision program chart, maps conceivable events and contingencies that might occur during implementation.

• Activity Network Diagram

  • The activity network diagram is used to develop a work schedule for the facilities design effort. This diagram is synonymous with the critical path method (CPM) graph.

• Prioritization Matrix

  • The prioritization matrix can be used to judge the relative importance of each criterion as compared to the others.

If (x1 <3 and x3 < x2), then (x1 < x4 and x4 < x2)

x3 - x1 <= Ma

x2 - x3 <= Mb

a+b <= 1+c