EIN4364: FACILITIES PLANNING & MATERIAL HANDLING

Introduction to Facility Planning

Definitions

Facilities planning: How an activitys tangible fixed assets best support achieving the activitys objectives.
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must help an organization to achieve Supply Chain Excellence

Location of a facility: Its placement with respect to customers, suppliers and other facilities. Components of a facility: The structure, the layout and the material handling system

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Facility location vs. Facility design

Facilities Location: Determining how the location of an activity supports meeting the activitys objective. Facilities Design: Determining how the components of an activity support achieving the objective.

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Facilities Planning (FP)

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Example: Manufacturing Facilities Planning

Plant Design (micro) :

Plant facility system: power, light, gas, heat, water etc. Plant layout : manufacturing areas, support areas, personnel areas within the building Material handling: the materials, equipment, personnel, information handling systems required to support production

Plant Location (macro) :

its placement with respect to customers, suppliers, and other facilities

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Design example

Floor plan of a house with:

2 bedrooms 1 bathroom 1 living room 1 dining room 1 kitchen

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Why should we study FP?

Discussion questions: What impact does facilities planning have on

handling and maintenance costs? employee morale and consequently the operating costs? the capital and how convertible is the capital once invested? the management of a facility? a facilitys capability to adapt to change and satisfy future requirements?

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Objectives of FP
Support the organizations mission through improved material handling, materials control and good housekeeping. Effectively utilize people, equipment, space and energy Minimize capital investment Improve speed for quick customer response Be flexible and promote ease of maintenance Provide for employee safety and job satisfaction.

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FP Process (Design cycle)

Formulate Analyze Search Select Specify

Design process

Reactivation Implementation

Sell Install

Evaluate Observe
Follow-up

Redesign

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Define the problem

Define the objectives of the facility

Demand forecasting the number of units of each type to be produced Capacity requirement people, machines, space, etc.

Multiple criteria for evaluation

Cost Quality Pollution Flexibility Budget Materials Equipment Technicians

Resource availability

Design milestones
Who will do what by when
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Generate alternative designs

Multiple feasible solutions Comments: Dont be limited by constraints. Try for optimum solution and dont be satisfied easily. Example: Seek a variety of assembly sequences, layouts, fixtures, hand tools, unit/hour, etc. Then select the best combination.

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Select the preferred designs

Specify solution in detail Sell solution to management Interactive process between planner and client Presentation with block plans, 3-D models, report Accept partial solution rather than nothing

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Implement the design

Implementation plan Work with other teams in the implementation process Follow up to see if design is implemented as designed and the design reduces problem

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Some questions

What are
Product throughputs? Space needs? o Relative usages of I/O points by products?
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What is the current storage policy? What is the estimated MH cost of current product movement? Is dedicated storage feasible?

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Example

Cost Analysis:
Cost of purchasing the land Construction cost Operating cost Design cost

Model Formulation and Validation:

Select possible locations by examining regions on a local map such that the selection criteria are satisfied. Formulate mathematical models to determine the optimal location. In many cases, you will end up with multiple choices of potential locations.

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Example

Presentation to Management:
Formal design report 3-D models Computer animation

Implementation:
Drawings Implementation plan Follow-up plan

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