Layout Strategy :Layout Strategy Professor Dave Blain Management Department UNLV


Outline :Outline Global Company Profile: McDonald’s Cost of Process-Oriented Layout Work-cell concept Repetitive and Product-Oriented Layout Assembly Line Balancing


McDonald’s - New Kitchen Layout :McDonald’s - New Kitchen Layout Fifth major innovation - kitchen design No food prepared ahead except patty Elimination of some steps, shortening of others New bun toasting machine (11 vs 30 seconds) Repositioning condiment containers (one motion, not two) Sandwiches assembled in order Production levels controlled by computer Savings of $100 million per year in food costs


What is Facility Layout :What is Facility Layout Location or arrangement of everything within & around buildings Objectives are to maximize Customer satisfaction Utilization of space, equipment, & people Efficient flow of information, material, & people Employee morale & safety


Cost of Process-Oriented Layout :Cost of Process-Oriented Layout (Principles of Operations Management, Heizer & Render, 5th Edition)


Interdepartmental Flow of Parts :Interdepartmental Flow of Parts (Principles of Operations Management, Heizer & Render, 5th Edition)


Interdepartmental Flow Graph Showing Number of Weekly Loads :1 Interdepartmental Flow Graph Showing Number of Weekly Loads 100 50 30 10 20 50 20 100 50 2 3 4 5 6 (Principles of Operations Management, Heizer & Render, 5th Edition) 1


Possible Layout 1 :Possible Layout 1 Room 1 Room 2 Room 2 Room 4 Room 5 Room 6 (Principles of Operations Management, Heizer & Render, 5th Edition)


Interdepartmental Flow Graph Showing Number of Weekly Loads :100 50 30 10 20 50 20 100 50 2 1 3 4 5 6 Interdepartmental Flow Graph Showing Number of Weekly Loads (Principles of Operations Management, Heizer & Render, 5th Edition)


Possible Layout 2 :Possible Layout 2 Room 1 Room 2 Room 2 Room 4 Room 5 Room 6 (Principles of Operations Management, Heizer & Render, 5th Edition)


Improving Layouts by Moving to the Work Cell Concept :Improving Layouts by Moving to the Work Cell Concept (Principles of Operations Management, Heizer & Render, 5th Edition)


Assembly Line Balancing :Assembly Line Balancing Analysis of production lines Nearly equally divides work between workstations while meeting required output Objectives Maximize efficiency Minimize number of work stations


Assembly Line Balancing Steps :Assembly Line Balancing Steps 1. Determine tasks (operations) 2. Determine sequence 3. Draw precedence diagram 4. Estimate task times 5. Calculate cycle time 6. Calculate number of work stations 7. Assign tasks 8. Calculate efficiency


Precedence Diagram Example :Precedence Diagram Example (Principles of Operations Management, Heizer & Render, 5th Edition)


Assembly Line Balancing Equations :Assembly Line Balancing Equations


Layout Heuristics for Assigning Tasks in Assembly Line Balancing :Layout Heuristics for Assigning Tasks in Assembly Line Balancing Longest task time - choose task with longest operation time Most following tasks - choose task with largest number of following tasks Ranked positional weight - choose task where the sum of the times for each following task is longest Shortest task time - choose task with shortest operation time Least number of following tasks - choose task with fewest subsequent tasks


Six Station Solution :Six Station Solution 4


Ch 9Layout :Ch 9Layout Ability to Identify/Define and Explain: How to achieve a good layout for a process facility Work cell concept How to balance production flow in a repetitive or product-oriented facility - assembly line balancing


Ch 9Layout :Q 9.8 What are the advantages and disadvantages of work cells? Advantages of work cells: Reduction in work in progress inventory Reduction in required floor space Reduced raw material and finished good inventory Reduced direct labor cost Heightened sense of employee participation Increased utilization of equipment and machinery Reduced investment in machinery and equipment Ch 9Layout


Slide 20:Disadvantages of work cells: Similar to product layout High volume is required because of the large investment needed to set-up the process There is a lack of flexibility in handling a variety of products or production rates Requires good use of group technology Requires a high level of training and flexibility on the part of employees Either considerable staff support or imaginative employees are needed for the intial development of the work cells Q 9.8 What are the advantages and disadvantages of work cells? Ch 9Layout


Chap 9 LayoutHomework :Chap 9 LayoutHomework Cross-docking means that units are never put in storage in an intermediate storage facility (warehouse). Units are accurately labeled prior to shipment with the information needed to identify the final destination so that when they arrive at an intermediate warehouse or distribution point, they are immediately moved to the shipping dock for transmittal to that final destination. Q 9.17 Explain the concept of cross docking?


Chap 9 LayoutHomework :Chap 9 LayoutHomework Cross-docking means that units are never put in storage in an intermediate storage facility (warehouse). Units are accurately labeled prior to shipment with the information needed to identify the final destination so that when they arrive at an intermediate warehouse or distribution point, they are immediately moved to the shipping dock for transmittal to that final destination. Q 9.17 Explain the concept of cross docking?