The Strategic Facility Layout Problem

Addressing the Strategic Facility Layout Problem within SEIPI Member Companies
Robin Owens
Managing Director, Proplanner Asia
PSCECE 2012: Philippine Semiconductor and Electronics Convention and Exhibition
22nd ASEMEP National Technical Symposium / ANTS June 6-8, 2012
The Strategic Facility Layout Problem

Barrier to More Productive SEIPI Facilities
How many hundreds of millions of PHP does your company have invested in its facilities (production equipment, warehouses, offices, etc.)?

How many hundreds of millions of PHP does your company have invested in its facilities (production equipment, warehouses, offices, etc.)?
How does your company ensure that the physical arrangement of the facilities increases operational productivity?
Proplanner
Background
Process & Industrial Engineering Software & Services Formed in 2002

USA Headquarters Iowa State University Research Park Branched off from EDS PLM Solutions
President: Dr. Dave Sly

BSIE, MSIE, MBA, PhD IE Adjunct Professor Iowa State
Software Tools
Facility Layout Analysis Time & Motion Study Assembly Line Balancing Process Planning Work Instructions Static Work Instructions Dynamic Shop Floor Electronic Kanban / Kitting
Map of Proplanner Customers
Robin Owens
Background
BSIE, MMM, MBA
Penn State University
Industrial Engineer
American Express Empire Industries Boeing
IE Consultant
Engineering Animation Inc. Japan, Korea, Malaysia, USA Amkor Technology Philippines, Taiwan, China, USA
Manufacturing Manager
Amkor Philippines Test Intel Wafer Fab Smiths Medical
Adjunct Professor
Mapua Institute of Technology
Advancing Facility Planning Published Article November 2011 Industrial Engineer Magazine

SEIPI company leased new facility in Laguna, and needed to relocate a camera chip assembly operation there.

A facility layout team (led by IE) created 3 different facility layout drawings for management selection.
Layout Option 1
Layout Option 2
Layout Option 3

Which one is the best, and should be implemented?
Layout Option 1
Layout Option 2
Layout Option 3

KEY POINT: If you dont measure the facility layouts, then you have no basis for comparison and selection.
Layout Option 1
Layout Option 2
Layout Option 3

KEY POINT: If you dont measure the facility layouts, then you have no basis for comparison and selection.
Layout Option 1
Layout Option 2
Layout Option 3

One PHL semiconductor outsourcing manufacturer spent P1.2 billion on factory, office, and warehouse layout changes (over a period of 5 years), without the use of industrial engineering tools to measure and compare facility layout alternatives.

One PHL semiconductor outsourcing manufacturer spent P1.2 billion on factory, office, and warehouse layout changes (over a period of 5 years), without the use of industrial engineering tools to measure and compare facility layout alternatives.
This is the normal practice for all SEIPI member companies

One PHL semiconductor outsourcing manufacturer spent P1.2 billion on factory, office, and warehouse layout changes Think of how much more productive (over period of 5could years), SEIPIa companies be without theifuse industrial engineering tools we of used IE analysis tools tocompare improve facility to measure and facility layouts. layout alternatives.
This is the normal practice for all SEIPI member companies

Why dont SEIPI Industrial Engineers use software to analyze and improve facility layouts?

Why dont SEIPI Industrial Engineers use software to analyze and improve facility layouts?
There are multiple reasons. But, the key reason and root cause is the lack of discussion of modern facility layout technology in facility layout textbooks.
These textbooks focus on impractical algorithms that are unused in industry.

Facility Layout Practice in Industry
In the Philippines, most often, Facility Layout IEs own the facility layout drawings. Most layout drawings are in AutoCAD. There are no IE analysis tools inside of basic AutoCAD. AutoCAD is simply a drafting / drawing tool.

In the Philippines, most often, Facility Layout IEs own the facility layout drawings. Most layout drawings are in AutoCAD. There are no IE analysis tools inside of basic AutoCAD. AutoCAD is simply a drafting / drawing tool. Without using industrial engineering software, facility layouts are designed (and billions of PHP spent) without measurement or IE analysis. Because of the perceived lack of layout engineering technology available, facility layout IEs find themselves acting as AutoCAD drafters, instead of industrial engineers.

In the Philippines, most often, facility Layout IEs own the facility layout Facility Layout drawings. Most layout drawings are inIEs become AutoCAD drafters, instead of engineers. AutoCAD. There are no IE analysis inside of issues are hidden, The resulttools is that layout basic AutoCAD. AutoCAD is simply a facility layouts are and inferior, inefficient drafting / drawing tool.
approved and constructed.
Without using industrial engineering software, facility layouts are designed (and billions of PHP spent) without measurement or IE analysis. Because of the perceived lack of layout engineering technology available, facility layout IEs find themselves acting as AutoCAD drafters, instead of industrial engineers.

Facility Layout Practice in Industry Useful Tools
Data to Help Determine Trip Cost & Time
Movement Methods
Product & Part Quantities
Data to Help Determine Trip Distance
Material Movement (from-to)


Is this a good SBGA Assembly layout? How do you know?




Engineering Results
Management Results







Fast & Easy Wafer Bump Layout Results 12% reduction in Distance Traveled 3% reduction in Material Handling Cost 3% Reduction in Material Handling Time

Class 100,000
Class 10

Class 100,000
Class 10





This facility became a major award winning operation, partially due to the facility layout analysis and planning performed before the construction began.
Appendices
Additional Related Information
TOYOTA / BOEING KAIZEN, SIMULATION, RICHARD MUTHERS SLP

The Toyota Method for Improving Facility Layouts
What other methods are used to improve facility layouts in the Philippines?

What other methods are used to improve facility layouts in the Philippines? Toyota Motors is well-known as the best manufacturer in the world. This includes Toyota Motor Philippines in Santa Rosa, Laguna. But, the Toyota Production System (i.e. - Lean Manufacturing) was developed before personal computers were invented.

What other methods are used to improve facility layouts in the Philippines? Toyota Motors is well-known as the best manufacturer in the world. This includes Toyota Motor Philippines in Santa Rosa, Laguna. But, the Toyota Production System (i.e. - Lean Manufacturing) was developed before personal computers were invented. You will find that Toyota embraces machine automation, but not industrial engineering software. Toyotas facility layout improvement methods are manual and paper-based. Well review a Kaizen workshop example from the Boeing Commercial Airplane Group in the USA, which was led by Shingijutsu (a Japanese consulting company founded by some of the first Toyota executives to develop Toyotas Production System).

The hard metals portion of an airplane parts factory was targeted for re-layout. Japanese Lean Mfg experts taught Boeing their official re-layout method, performed their study, and recommended moving large, expensive equipment.

This portion of the factory made 400+ different parts. Only 2 parts were selected for analysis (minimum 0.5% of parts). The routing for these parts was written down and then physically followed. The path followed was scribbled onto a piece of paper (Spaghetti Chart), and then used to estimate the material flow distance traveled.

This portion of the factory made 400+ different parts. Only 2 parts were selected for analysis (minimum 0.5% of parts). The routing for these parts was written down and then physically followed. The path followed was scribbled onto a piece of paper (Spaghetti Chart), and then used to estimate the material flow distance traveled.

This portion of the factory made 400+ RESULT: This Spaghetti Chart analysis leddifferent Boeing parts. Only 2 Mill parts were selected for to recommend moving a massive Laser analysis (minimum 0.5% of parts). workcenter to the other side of the factory. The routing for these parts was written down and then physically The construction and production delays, would have followed. cost Boeing well over $150k USD. The path followed was scribbled onto a piece of paper This would have happened.(Spaghetti Chart), and then But, a young & motivated IE got involved. used to estimate the material flow distance traveled.

An Alternative Method to the Toyota Spaghetti Chart
The young IE introduced Flow Planner software (transforms AutoCAD into an IE facility layout analysis tool), which he learned at Penn State University 5 years earlier. In 3 days (before the end of the Kaizen event), he ACCURATELY modeled and measured the flow for ALL PARTS, and considered the various production quantities over the previous year.


The thicker the flow line, the higher the flow between 2 points
(measured down the millimeter)

The young IE found that moving the Laser Mill would have increased material handling distance, cost, and time. The IE found that this was the wrong thing to do. Instead, he found 3 other workcenters that should be moved, and then performed that analysis in 15 minutes using a computer and software.
Current Flow:
E C
L B
Proposed Flow:
C E L
B
I
Current Flow:
E C
Moving these 3 workcenters E, I, & B (instead of the Laser Mill - L) would reduce material flow by 30%, which was 365 miles per year Euclidean.
L B
Proposed Flow:
C E L
B
I
Current Flow:
E C
In the end, Boeing did not move the Laser Mill.

I
Also, the young IE was promoted to the 737 Final Assembly facility.
Proposed Flow:
C E L
B
I

Facility Layout Practice in Industry Useful Concepts
SLP, Systematic Layout Planning (1961)

Applies to any environment Relationship-based Thick lines = strong relationships Weighted factor layout scores Manual Method
SHA, Systematic Handling Analysis (1969)

Applies to any flow-centric environment Material flow-based Thick lines = intense material flow Weighted factor layout scores Manual Method
Facilities Planning 2010 heavily supports SLP and doesnt mention SHA.

Facility Layout Practice in Industry Useful Concepts
Though still applicable today, use of Muthers SLP and SHA methods in industry is very low. These manual methods are very time consuming, and cannot handle large amounts of data.
Lean Manufacturing: measure the process before making a change.

How to measure & compare facility layout alternatives (without layout engineering tools, and with limited time)? Lean spaghetti chart? Dynamic simulation (DES)?
Facility layout IEs in industry require tools to visualize & measure layout relationships (flow and non-flow), to support evaluation & team discussion.

Value A E I O
Closeness Absolutely Necessary Especially Important Important Ordinary Closeness OK
U
X
Unimportant
Not Desirable
Automated Muthers SLP (inside of AutoCAD) permits IEs to use this method quicker & more frequently. Automated scoring and diagramming tools drastically reduce the time required to perform a study.

Static Simulation is More Appropriate
Dynamic Simulation
Model the performance of a system as it changes over time (4 pages of content). Variables change during the day (e.g. arrival rate of jobs, number of jobs in process, waiting time for resources). Complex data and models. Random number generation and probability distributions. Time consuming data, modeling, validation.
Static Simulation
Model the performance of a system over a fixed period of time (1 page of content). Variables are not time based (e.g. equipment location, unloading time for a forklift, tasks assigned to a station). Simple data and models. No random numbers or probability distributions. Quick data, modeling, validation.
Stochastic: queuing models, throughput and WIP analysis, detailed capacity analysis. Facility Layout: Possible for use. Lengthy & costly. Re-build the facility layout (duplicate effort). Create & build logic for model.
Deterministic: facility layout, material handling analysis, assembly line balancing. Facility Layout: Global standard for use. Utilize the data within the AutoCAD layout design. Commercial software exists for this function.

Call to Action
16 industrial engineering schools are customers (including all CHED schools). Our long-term vision of facility layout improvement in the Philippines starts with the universities. Lets begin to engineer facility layouts, instead of just drawing them. If your company is building a new facility, or re-laying out an existing facility, then it is very important to properly evaluate the new design(s).
Contact us to learn more:

Presentation / Demonstration Software Training Consulting
Proplanner Asia
Contact Information
Stand-alone Software Tools:

Facility Layout Time & Motion Study Assembly Line Balancing
Call:
(+63) 49-801-5691 or 0922-849-3948
Email:
robin@proplanner.com
Parent Website:
www.proplanner.com
LinkedIn:
http://ph.linkedin.com/in/proplannerasia

The Strategic Facility Layout Problem - Asia

Enviado por

Dados do documento

Direitos autorais

Compartilhar este documento

Compartilhar ou incorporar documento

Opções de compartilhamento

Você considera este documento útil?

Este conteúdo é inapropriado?

Direitos autorais:

The Strategic Facility Layout Problem - Asia

Enviado por

Direitos autorais:

Addressing the Strategic Facility Layout Problem within SEIPI Member Companies

PSCECE 2012: Philippine Semiconductor and Electronics Convention and Exhibition

22nd ASEMEP National Technical Symposium / ANTS June 6-8, 2012