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FACILITY PLANNING AND LAYOUTBY DR NAWAR KHAN

PhD Engineering Management, MSc Production Engineering, MBA (HRM), BSc Mechanical EngineeringEngineering Management DepartmentCollege of Electrical & Mechanical Engineering (E&ME)Peshawar Road Rawalpindi, Pakistane-mail: nwr_khan@yahoo.comNational University of Sciences & TechnologyCollege of Electrical and Mechanical EngineeringDepartment of Engineering Management (EM)Subject:MEM- 806 FACILITY PLANNING AND LAYOUT Credit Hours:3 hours per weekContact Hours:3 hours per weekInstructor:Professor Dr Nawar KhanRecommended Books1. Production and Operation Management, 8Th Edition by Norman Gaither and Greg Fazier, South-Western College Publishing2. Production and Operation Management, 6Th Edition by Alan Muhlemann, John Oakland and Keith Lockyer 1995 reprint Pitman Publishing London 3. Hand Book of Industrial Engineering, Edited by Gavriel Salvendy, John Willey & Sons New York 4. Modern Production and Operation Management by Elwood S. Buffn, 7th Edition John Willey and Sons 5. Operation Management by Roger G. Schroeder 3rd edition McGraw HillMODE OF TEACHING:Lecture/ DiscussionGRADING:a.Quiz:2- 3 / Cr Hr (10%)b.Sessional Exams: (02) (30%)c.Home Assignments / Term Proj: (10%)d.Final Comprehensive Exam:(50%)S/NoMain TopicsHours1Location and site selection criteria032Equipment and utilities layout033Latest tools and software for facility layouts, Types of Layout064Work cell layout and job shop layout065Types of Production, Group / Cellular Technology036Material Handling Systems067Type of flows, Material Requirement Planning (MRP-II)068Inventory Models, Just In Time (JIT) technique and its Pre-requisites069Single-Facility Location Problems, Multi facility Location Problems0310Discrete Location and Layout Problems, Continuous Facility Design and Layout, Computerized Layout Planning 0311Case Projects, Case studies and problem solution03 Total 48BUSINESS STRATEGYUnderstand the business dynamics before selecting and start of a business based on the following factors;Own business interest and knowledge / expertiseBusiness types manufacturing or serviceTypes of industry primary, secondary or tertiaryCheck growth rate of business as well as productOwnership, joint venture, franchise.Target market national or internationalTarget populationSingle or multiple locationsSingle product or product mixStrategy; Make to order or make to stock

LOCATION AND SITE SELECTION CRITERIA

Understand the supply - distribution system because the way the inputs are obtained and outputs are distributed has an effect on;The total cost of the product or serviceThe number of customers that can be reachedThe location of the organization and its unitsThe design of the plant or operational facilities

LOCATION STRATEGY

The following factors have an influence on the choice of a facility location;Proximity to the marketIntegration with other parts of the organizationAvailable of labour and skillsAvailable of amenities (housing, shops, community services and communication)Available of transportAvailable of inputs

LOCATION STRATEGY

Available of services (gas, electricity, water, drainage, disposal of waste and communication)Suitability of land and climateRegional regulationsRoom for expansionSafety requirementSite costPolitical, culture and economic situationSpecial grants, regional taxes, and import / export barriers

LOCATION EVALUATION METHODS RANKING TECHNIQUEFactorWeightageScale: 0-10

Location ARelative Scale: 0-5Location BRelative Scale: 0-5Location C Relative Scale: 0-5Location DRelative Scale: 0-5Location ERelative Scale: 0-5Proximity 63/183/182/125/301/6Integration000000Labour91/95/454/362/183/27Amenities61/62/124/245/303/18Transport45/204/163/122/81/4Inputs44/161/42/83/125/20Services51/52/102/105/254/20Land and climate24/82/45/103/61/2Regional regulations85/402/164/323/241/8Expansion23/64/82/45/101/2Safety000000Cost15/51/12/23/34/4Politics /culture000000Special grants etc22/41 / 25/104/83/6Total137136160174117FURTHER EVALUATION METHODS FOR LOCATION SELECTIONLinear Programming this can be used to further minimization of total cost; that is, from source to facility and facility to market called feeder and fed. Typical example is transportation method.Stepping stone method is also used for the purposeSINGLE AND MULTI FACILITY LOCATION(NOT SINGLE AND MULTIPLE STOREY)The following factors are considered by operation manager related to distribution centres; (and not manufacturing facility)NumberLocationSizeAllocation by customerAllocation by manufacturing or service centresQuantity involvedMode of transportationSINGLE AND MULTI FACILITY LOCATION(NOT SINGLE AND MULTIPLE STOREY)One of the most powerful application of computerized location and distribution planning system is the simulation of potential changes in environment, policies, controllables and others. This will give combined effect of; The market and demand factorPlant capacityproduct, service and their mixPricesMaterial costFuel costLabour costTransport costDistribution centresweather

FACTORS AFFECTING THE DESIGN OF PLANT OR PREMISE / FACILITY

SUMMARY Accommodation required , both immediate and potentialLatest possible completion dateLife of the plant or facilityProposed siteMaximum costFACTORS AFFECTING THE DESIGN OF PLANT OR PREMISE / FACILITY

DETAILED DESIGNThe following factors have an influence on the choice of a facility location;SizeNumber of floorsAccessServicesHeadroom requiredLoad to be carriedlightingHeating and ventilationDisposal of wasteSpecial process requirements