Facility planning and Design Lecture 1 A– introduction

Dr. Husam Arman

Outline Syllabus Course contents ILOsText bookGradingSubjects detail

Introduction to the course

Syllabus

This course covers various areas related to facility planning and design. The materials covered include mainly three parts; facility location, plant layout and material handling. The first two parts will be discussed extensively, while little emphasis on the materials handling part (see detail subjects).

ILOs

1. Understand the importance of facility planning as an IE.

2. Be able to formulate quantitative and qualitative models to address facilities planning problems

3. Be able to analyze practical problems considering the fundamental principles of material handling

4. Be able to design a factory layout incorporating product, process, and schedule.

5. Be able to work in a team and confident in presenting and defending his work

Text book

• Text book: • Facilities Planning, J.A. Tompkins et al., John Wiley

& Sons, Inc., New York, 2010• Additional references; • Facility layout and location, Francis, McGinnis &

White, Prentice Hall NJ, 1992.• Facilities Planning and Design , Alberto Garcia-Diaz

and J. MacGregor Smith, Prentice Hall, 2007•

Assessment criteria

Midterm Exams 40 %

Project 20 %

Final Exam 40 %

Subjects detail Week Subject1 Introduction to Facilities Planning2 Strategic Facilities Planning3 Rectilinear-Distance Facility Location Problems

(Single and Multi-facility)45 Euclidean-Distance Facility Location Problems

(Single and Multi-facility)67 Product, Process and schedule design 8 Flow systems, activity relationships and space requirements 9 Layout planning models 1011 Locations and Layout using computer 12 Product layout 13 Material Handling14 Personnel requirements15 Selecting the facility plan 16 Manufacturing systems

Group Project

Study a real location or layout problem and try to improve upon the current situation using analytical tools developed in the course.

You are free to suggest a project that interests you

More information will be provided duly!

Project Planning

• Group Project will incorporate:–Course content –Teamwork–Data collection and analysis (will use

software)–Project Presentation–Project Report

Our ground rules

• Please switch off/silent our phones when in class.

• Arrive on time• Keep our presentations to agreed upon

lengths• In general be courteous to others • …. • Do you want to add anything!

Ok, shall we start now!

Facility location and plant layout

The location of facilities and also determination of the configuration at certain types of facilities Also called Facilities planning! Facilities planning is complex and broad subject cuts across several disciplines (engineering, civil, electrical, architecture, etc) However, here we’ll focus on industrial engineer’s role in developing effective and efficient facilities plans.

Facilities Planning Viewpoints

• Civil engineering• Electrical• Mechanical engineering• Architectural• Real estate• Urban planning• Industrial engineering• What is the role of each in facility planning?

IE Viewpoint of Facilities Planning

• IEs are focusing on requirements, resource allocation, and efficient use of resources.– Facilities are the integration of many lower level

systems• Space requirements with respect to flow and operations

control• Personnel requirements• Equipment requirements• System design/layout with respect to flow and operations

control• The use of information systems and technology to increase

effectiveness• Movement within a facility• Movement between facilities – Location• …

Definitions

Facility location refers to the choice of region and the selection of a particular site for setting up a business or factory

Plant layout Plant layout refers to the arrangement of physical facilities such as machinery, equipment, furniture etc. within the factory building in such a manner so as to have quickest flow of material at the lowest cost and with the least amount of handling in processing the product from the receipt of material to the shipment of the finished product

• Facilities Planning determines how an activity’s tangible, fixed assets should contribute to meeting the activity’s objectives .

• This course will focus on facilities planning.– Emphasis on location and layout.– Some coverage of materials handling.

Definitions

Facilities planning

Facilities planning

Facilities location

Facilities design

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Why matters? To stimulate your thought, think of the following

questions:1. What impact does facilities planning have on handling

and maintenance costs?2. What impact does facilities planning have on employee

moral?3. What impact does facilities planning have on

management of a facility?4. What impact does facilities planning have on a facility’s

capability to adapt to change and satisfy future requirements?

Why matters?

Why matters?

Corporate strategy

Business strategy

.

Facility Location in Location Strategy

PLAN

NIN

G

ORG

ANIZ

ING

CON

TRO

LLIN

G

Transport Strategy• Transport fundamentals• Transport decisions

Customer service goals

• The product• Logistics service• Ord . proc. & info. sys.

Inventory Strategy• Forecasting• Inventory decisions• Purchasing and supply

scheduling decisions• Storage fundamentals• Storage decisions

Location Strategy• Location decisions• The network planning process

PLAN

NIN

G

ORG

ANIZ

ING

CON

TRO

LLIN

G

Transport Strategy• Transport fundamentals• Transport decisions

Customer service goals

• The product• Logistics service• Ord . proc. & info. sys.

Inventory Strategy• Forecasting• Inventory decisions• Purchasing and supply

scheduling decisions• Storage fundamentals• Storage decisions

Location Strategy• Location decisions• The network planning process

All the facilities in the supply chain should have the following characteristics:

Flexibility Modularity …

Why matters?

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f01_07Why matters?

Strategic Planning• Def.:

– High level of planning:• Identify a process to obtain an objective

– Identify 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 Nablus to London – (map?)

– Resources– Timing– Control– Strategic and Tactical relationship

» Objective of strategic plan doesn’t change!

Strategic Planning

• Applied to Facilities Planning:– Requires an understanding of feasibilities:

– Marketing– Product development– Manufacturing / Processing– Production / Inventory control– Human resources– Finance

– Impacts the performance of each, too– Concurrent design process seems best– Facilities planning occurs simultaneously

» Evolving requirements » Multiple alternatives» Design iterations probable

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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

Facilities Planning Process Steps

• Defining the Problem1. Define

• Gathering Pertinent Information2. Specify

3. Determine4. .

Facilities Planning Process Steps

• Generating Multiple Solutions5. Generate …

• Analyzing and Selecting a Solution6. Evaluate …7. Select …

• Testing and Implementing the Solution8. Implement the facilities plan9. Maintain and update the facilities plan

Facilities Planning Process Steps

• Frequently back-track to a previous stage10. Update the products and redefine the objective

of the facility

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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?

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

shipping3. When are the products to be produced?

Within 1/2 month prior to introduction, and 2 months after order4. How much of the product is to be produced?

Batch production runs of 100 to 1000, ~ 8 new & 20 total models/yr5. How long will the product be produced?

2 – 3 yrs/model, product lifecycle of 15 – 30 yrs, facility life >50 yrs6. 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

Issues Impacting a Strategic Facilities Plan:

– Number, location, sizes of warehouse/distribution centers– Centralized vs. decentralized storage / manufacturing– Acquire existing (brownfield) vs. build new (greenfield)– Flexibility required for marketing & technology– Interfacing storage and manufacturing– Level of vertical integration– Control of materials and equipment– Inbound and outbound material movement– Technology changes for suppliers, firm, customers– Financial goals for the design of the facility

HW – next time