chapter7
DESCRIPTION
Industrial ApplicationsTRANSCRIPT
To Accompany Ritzman & Krajewski, Foundations of Operations Management © 2003 Prentice-Hall, Inc. All rights reserved.
Chapter 7 Chapter 7
Location Location and and LayoutLayout
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Managing Managing Global Global OperationsOperations Other LanguagesOther Languages Different Norms and Different Norms and
CustomsCustoms Workforce ManagementWorkforce Management Unfamiliar Laws and Unfamiliar Laws and
RegulationsRegulations Unexpected Cost MixUnexpected Cost Mix
To Accompany Ritzman & Krajewski, Foundations of Operations Management © 2003 Prentice-Hall, Inc. All rights reserved.
Location Decisions Location Decisions - Manufacturing- Manufacturing Favorable Labor ClimateFavorable Labor Climate Proximity to MarketsProximity to Markets Quality of LifeQuality of Life Proximity to SuppliersProximity to Suppliers Proximity to Parent CompanyProximity to Parent Company Utilities, Taxes, and Real Utilities, Taxes, and Real
Estate CostsEstate Costs
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Location Decisions Location Decisions - Services- Services
Proximity to CustomersProximity to Customers Transportation Costs and Transportation Costs and
Proximity to MarketsProximity to Markets Location of CompetitorsLocation of Competitors Site-Specific FactorsSite-Specific Factors
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LocatioLocationnHealth-WatchHealth-WatchNorth
Erie
PittsburghHarrisburg
Philadelphia
Scranton
Uniontown
State College
Example 7.1
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LocatioLocationnHealth-WatchHealth-WatchNorth
Erie
PittsburghHarrisburg
Philadelphia
Scranton
Uniontown
State College
Example 7.1
Location Factor Weight Score
Total patient miles per month 25 4Facility utilization 20 3Average time per emergency trip 20 3Expressway accessibility 15 4Land and construction costs 10 1Employee preference 10 5
To Accompany Ritzman & Krajewski, Foundations of Operations Management © 2003 Prentice-Hall, Inc. All rights reserved.
LocatioLocationnHealth-WatchHealth-Watch
Center of Gravity ApproachCenter of Gravity Approach
North
B
A CE
GFD
(2.5, 4.5) [2]
(2.5, 2.5) [5] (5, 2)
[7](7, 2) [20]
(9, 2.5) [14]
(8, 5) [10]
(5.5, 4.5) [10]
x (miles) East1 2 3 4 5 6 7 8 9 10
1
2
3
4
5
6
0
yy (m
iles)
(mile
s)
Example 7.2
To Accompany Ritzman & Krajewski, Foundations of Operations Management © 2003 Prentice-Hall, Inc. All rights reserved.
LocatioLocationnHealth-WatchHealth-Watch
Center of Gravity ApproachCenter of Gravity Approach
North
B
A CE
GFD
(2.5, 4.5) [2]
(2.5, 2.5) [5] (5, 2)
[7](7, 2) [20]
(9, 2.5) [14]
(8, 5) [10]
(5.5, 4.5) [10]
x (miles) East1 2 3 4 5 6 7 8 9 10
1
2
3
4
5
6
0
yy (m
iles)
(mile
s)
CensusCensus Population PopulationTractTract ((xx, , yy)) ((ll)) lxlx lyly
AA (2.5, 4.5)(2.5, 4.5) 22BB (2.5, 2.5)(2.5, 2.5) 55CC (5.5, 4.5)(5.5, 4.5) 1010DD (5, 2)(5, 2) 77EE (8, 5)(8, 5) 1010FF (7, 2)(7, 2) 2020GG (9, 2.5)(9, 2.5) 1414
Example 7.2
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LocatioLocationnBreak-Even AnalysisBreak-Even Analysis
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LocatioLocationnBreak-Even AnalysisBreak-Even Analysis
Fixed CostsFixed Costs Variable CostsVariable Costs Total CostsTotal CostsCommunityCommunity per Yearper Year per Unitper Unit (Fixed + Variable)(Fixed + Variable)
AA $150,000$150,000 $62$62BB $300,000$300,000 $38$38CC $500,000$500,000 $24$24DD $600,000$600,000 $30$30
Example 7.3
To Accompany Ritzman & Krajewski, Foundations of Operations Management © 2003 Prentice-Hall, Inc. All rights reserved.
LocatioLocationnBreak-Even AnalysisBreak-Even Analysis
Q (thousands of units)
0
200
400
600
800
1000
1200
1400
1600
2 4 6 8 10 12 14 16 18 20 22
A best B best C best
Break-even point
6.25 14.3
A
DBC
(20, 1390)
(20, 1200)
(20, 1060)
(20, 980)
An
nu
al c
ost
(th
ou
san
ds
of
do
llars
)
Break-even point
Figure 7.1
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Absolute Absolute LocationsLocations
Frozen foods
Dry groceries
Bread Vegetables
Meats
(a) Original layout
Figure 7.4
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Absolute Absolute LocationsLocations
(b) Revised layout
Frozen foods
Dry groceries
BreadVegetables
Meats
Figure 7.4
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Layout TypesLayout Types
FoundryMilling
machines
LathesGrinding
Painting Drills
Office
Welding
Forging
(a) Layout of a job shopFigure 7.5
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Layout TypesLayout Types
Station 1 Station 2 Station 3 Station 4
(b) Layout of a production line
Figure 7.5
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Group Group TechnologyTechnology
Figure 7.6
Drilling
D D
D D
Grinding
G G
G G
G G
Milling
M M
M M
M M
Assembly
A A
A A
Lathing
Receiving and shipping
L
L L
L L
L L
L
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Group Group TechnologyTechnology
(a) Jumbled flows in a job shop without GT cells
Drilling
D D
D D
Grinding
G G
G G
G G
Milling
M M
M M
M M
Assembly
A A
A A
Lathing
Receiving and shipping
L
L L
L L
L L
L
Figure 7.6
Source: Mikell P. Groover. Automation, Production Systems, and Computer-Aided Manufacturing. Upper Saddle River, NJ: Prentice Hall, 1980, pp. 540–541. Used by permission.
To Accompany Ritzman & Krajewski, Foundations of Operations Management © 2003 Prentice-Hall, Inc. All rights reserved.
Group Group TechnologyTechnology
(b) Line flows in a job shop with three GT cells Figure 7.6
Source: Mikell P. Groover. Automation, Production Systems, and Computer-Aided Manufacturing. Upper Saddle River, NJ: Prentice Hall, 1980, pp. 540–541. Used by permission.
Cell 3
L M G G
Cell 1 Cell 2
Assembly area
A A
L M DL
L MShipping
D
Receiving
G
To Accompany Ritzman & Krajewski, Foundations of Operations Management © 2003 Prentice-Hall, Inc. All rights reserved.
60'
90'
2 4 3
6 5 1
Longhorn Longhorn MachineMachine
Trips between Departments
Department 1 2 3 4 5 6
1. Burr and grind —
2 .NC equipment —
3. Shipping and receiving —
4. Lathes and drills —
5. Tool crib —
6. Inspection —
To Accompany Ritzman & Krajewski, Foundations of Operations Management © 2003 Prentice-Hall, Inc. All rights reserved.
60'
90'
2 4 3
6 5 1
Longhorn Longhorn MachineMachine
Trips between Departments
Department 1 2 3 4 5 6
1. Burr and grind — 20 20 80
2. NC equipment — 10 75
3. Shipping and receiving — 15 90
4. Lathes and drills — 70
5. Tool crib —
6. Inspection —
To Accompany Ritzman & Krajewski, Foundations of Operations Management © 2003 Prentice-Hall, Inc. All rights reserved.
Closeness Rating between Departments
Department 1 2 3 4 5 6
1. Burr and grind —
2. NC equipment —
3. Shipping and receiving —
4. Lathes and drills —
5. Tool crib —
6. Inspection —
60'
90'
2 4 3
6 5 1
Longhorn Longhorn MachineMachine
Closeness Rating
Rating Definition
A Absolutely necessaryE Especially importantI ImportantO Ordinary closenessU UnimportantX Undesirable
To Accompany Ritzman & Krajewski, Foundations of Operations Management © 2003 Prentice-Hall, Inc. All rights reserved.
Closeness Rating between Departments
Department 1 2 3 4 5 6
1. Burr and grind — E U I U A
2. NC equipment — O U E I
3. Shipping and receiving — O U A
4. Lathes and drills — E X
5. Tool crib — U
6. Inspection —
60'
90'
2 4 3
6 5 1
Longhorn Longhorn MachineMachine
Closeness Rating
Rating Definition
A Absolutely necessaryE Especially importantI ImportantO Ordinary closenessU UnimportantX Undesirable
To Accompany Ritzman & Krajewski, Foundations of Operations Management © 2003 Prentice-Hall, Inc. All rights reserved.
Closeness Rating between Departments
Department 1 2 3 4 5 6
1. Burr and grind — E U I U A(3,1) (2,1) (1)
2. NC equipment — O U E I(1) (1) (6)
3. Shipping and receiving — O U A(1) (1)
4. Lathes and drills — E X(1) (5)
5. Tool crib — U
6. Inspection —
60'
90'
2 4 3
6 5 1
Longhorn Longhorn MachineMachine
Explanation Codes
Code Meaning
1 Materials handling2 Shared personnel3 Ease of supervision4 Space utilization5 Noise6 Employee attitudes
To Accompany Ritzman & Krajewski, Foundations of Operations Management © 2003 Prentice-Hall, Inc. All rights reserved.
60'
90'
2 4 3
6 5 1
Longhorn Longhorn MachineMachine
60'
90'
2 4 3
6 5 1
Departments 3 and 6 close together Departments 1 and 6 close together Departments 2 and 5 close together Departments 4 and 5 close together
Figure 7.7
To Accompany Ritzman & Krajewski, Foundations of Operations Management © 2003 Prentice-Hall, Inc. All rights reserved.
60'
90'
2 4 3
6 5 1
Longhorn Longhorn MachineMachine
60'
90'
4 3
Departments 3 and 6 close together Departments 1 and 6 close together Departments 2 and 5 close together Departments 4 and 5 close together
61
5
2
Figure 7.8
To Accompany Ritzman & Krajewski, Foundations of Operations Management © 2003 Prentice-Hall, Inc. All rights reserved.
60'
90'
2 4 3
6 5 1
Longhorn Longhorn MachineMachine
Example 7.6
Trips between Departments
Department 1 2 3 4 5 6
1. Burr and grind — 20 20 80
2. NC equipment — 10 75
3. Shipping and receiving — 15 90
4. Lathes and drills — 70
5. Tool crib —
6. Inspection —
To Accompany Ritzman & Krajewski, Foundations of Operations Management © 2003 Prentice-Hall, Inc. All rights reserved.
60'
90'
2 4 3
6 5 1
Longhorn Longhorn MachineMachine
Load Distance Analysis
Current Plan Proposed Plan
Dept Closeness Distance DistancePair Factor, l d ld Score d ld Score
1,2 20 3 60 1 201,4 20 2 40 1 201,6 80 2 160 1 802,3 10 2 20 3 302,5 75 2 150 1 753,4 15 1 15 1 153,6 90 3 270 1 904,5 70 1 70 1 70
ld =785 ld = 400
Example 7.6
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Line BalancingLine Balancing
Green Grass, Inc.Big Broadcaster
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Line BalancingLine BalancingBig Broadcaster
A Bolt leg frame to hopper 40 NoneB Insert impeller shaft 30 AC Attach axle 50 AD Attach agitator 40 BE Attach drive wheel 6 BF Attach free wheel 25 CG Mount lower post 15 CH Attach controls 20 D, EI Mount nameplate 18 F, G
Total 244
Work Time ImmediateElement Description (sec) Predecessor(s)
Example 7.7