04/21/23 IENG 471 Facilities Planning 1

IENG 471 - Lecture 02

Strategic Facilities Planning

04/21/23 IENG 471 Facilities Planning 2

Assignments

Current Assignment: HW: 1 – Planned Facility Measures (teams of 2 – 3)

Sketch Up Dr. Strangeglove’s Facility 5+ Criteria with 5 Quantitative Measures5+ Items/things that should be housedTurn in one document per team

Next Assignment: HW: 2 – Product Definition (teams of 4 …)

Reverse engineer a product, and …Create the Indented BOM and cost roll-upCreate the OPCCreate the Precedence DiagramTurn in one document per team

04/21/23 IENG 471 Facilities Planning 3

Facilities Planning

Determines how an activity’s tangible, fixed assets should contribute to meeting the activity’s objectives (Boozer, White, et al., p. 26, 3rd Ed.)

Consists of facility location and facility designPart art, part science – (engineering!)Approach using the engineering design processContinuous process with life cycle(s)Represents a very significant opportunity for cost

reduction and productivity improvement

04/21/23 IENG 471 Facilities Planning 4

Strategic Planning

Defn: The art and science of employing resources to achieve an objectiveHigh level of planning:

Identify a process to obtain an objectiveIdentify and utilize resources (physical aspects)Identify and execute processes (time aspects)Identify and coordinate methods (control aspects)

Longer term (Strategic) vs. shorter term (Tactical)Plan a trip from Rapid City SD to Chicago IL– (map?)

ResourcesTimingControlStrategic and Tactical relationship

Objective of strategic plan doesn’t change!

04/21/23 IENG 471 Facilities Planning 5

Strategic Planning

Applied to Facilities Planning:Requires an understanding of feasibilities:

MarketingProduct developmentManufacturing / ProcessingProduction / Inventory controlHuman resourcesFinance

Impacts the performance of each, tooConcurrent design process seems bestFacilities planning occurs simultaneously

Evolving requirements Multiple alternatives Design iterations probable

04/21/23 IENG 471 Facilities Planning 6

Issues Impacting a Strategic Facilities Plan:

Number, location, sizes of warehouse/distribution centersCentralized vs. decentralized storage / manufacturingAcquire existing (brownfield) vs. build new (greenfield)Flexibility required for marketing & technologyInterfacing storage and manufacturingLevel of vertical integrationControl of materials and equipmentDistributed processing levelsInbound and outbound material movementTechnology changes for suppliers, firm, customersFinancial goals for the design of the facility

04/21/23 IENG 471 Facilities Planning 7

Steps in Engineering Design

Ideal Sequence:1. Defining the Problem2. Gathering Pertinent Information3. Generating Multiple Solutions4. Analyzing and Selecting a Solution5. Testing and Implementing the Solution

Actual process is iterative… Frequently back-track to a previous stage

04/21/23 IENG 471 Facilities Planning 8

Facilities Planning Process Steps

Defining the Problem1. Define the products to be manufactured /

processed

Gathering Pertinent Information2. Specify the manufacturing / processing &

related activities

3. Determine activity interrelationships

4. Determine activity space requirements

04/21/23 IENG 471 Facilities Planning 9

Facilities Planning Process Steps

Generating Multiple Solutions5. Generate alternative facilities plans

Analyzing and Selecting a Solution6. Evaluate the alternative plans7. Select the preferred facilities plan

Testing and Implementing the Solution

8. Implement the facilities plan9. Maintain and update the facilities plan

04/21/23 IENG 471 Facilities Planning 10

Facilities Planning Process Steps

Frequently back-track to a previous stage

10. Update the products and redefine the objective of the facility

04/21/23 IENG 471 Facilities Planning 11

Data for Strategic Facility Design

1. What are the products to be produced?

2. How are the products to be produced?

3. When are the products to be produced?

4. How much of these products are to be produced?

5. How long will the products be produced?

6. Where will the products be produced?

Substitute “value-addeds” for the word “products” in the above list, and EVERY facility design is covered!

04/21/23 IENG 471 Facilities Planning 12

Example Data for Strategic Facility Design

1. What is to be produced? 1/16 scale models of new and old tractors

2. How are the products to be produced? Die & sand casting, trimming/drilling, painting, assembling, direct

shipping

3. When are the products to be produced? Within 1/2 month prior to introduction, and 2 months after order

4. How much of the product is to be produced? Batch production runs of 100 to 1000, ~ 8 new & 20 total

models/yr

5. How long will the product be produced? 2 – 3 yrs/model, product lifecycle of 15 – 30 yrs, facility life >50 yrs

6. Where are the products to be produced? Small, rural Iowa town (~ 3000 pop.; supplied from Chicago, WI;

adjacent to rail, near major U.S. highway; OEMs in IL, WI, IA

04/21/23 IENG 471 Facilities Planning 13

Example Data for Strategic Facility Design

7. What is the production site like? Three, single-story pole-buildings (one improved, with 2 additions)

8. What utilities are available (and where)? Municipal sewer & water; regional electric, internet & natural gas

9. What transportation is available (and where)? Railroad line on South, at-grade truck on East in street ROW

10. How is the production site constrained? Rail, creek to South; streets East (access), North; open land West

11. How many people will be required? 40 – 90 people, non-union, 8% office, two 8 hr shifts, 6 days/week

12. What standards are applicable? ADA (28 CFR 36), IBC, IFC, IECC, NEC, NFPA, OSHA (29 CFR 1910),

UPC; near flood plain; no municipal/county parking regulations

04/21/23 IENG 471 Facilities Planning 14

Exercise: Data for Strategic Facility Design

1. What is to be produced?2. How are the products to be produced?3. When are the products to be produced?4. How much of the product is to be produced?5. How long will the product be produced?6. Where are the products to be produced?

How would you answer these questions for the following:I. Armadillo’sII. McDonald’sIII. Hardee’sIV. Applebee’sV. Minerva’sVI. Dakota Steak House

04/21/23 IENG 471 Facilities Planning 15

Questions & Issues

Next Class:Hands on assignment to develop:

BOMOperation Process ChartPrecedence Diagram

Team exercise (but not part of Project)3 people per team(2 people, if necessary)