Facilities Planning and Design Course code: 1704031511 Spring 2017-2018 Required Text: Tompkins et al., (2003). Facilities Planning, 3rd or later Edition, John Wiley and Sons Inc. Students are encouraged to refer to the text book, and to take notes during the lectures.

Chapter 1: Introduction Definition of Facilities Planning Significance of Facilities Planning Objectives of Facilities Planning Facilities Planning Process Strategic Facilities Planning

Definition of Facilities Planning Facility is a place, resource, or piece of equipment and other fixed assets provided for a particular purpose. Facilities planning determines how an activity’s tangible assets best support the activity's objective. Recently, facilities planning has become a strategy, and part of supply chain excellence. Facilities planning is part art and part science. Proper Facilities planning will have significant result on cost reduction and productivity improvement. Facilities planning consists of: Facilities location (macro level) Facilities design (micro level, detailed) Facilities systems design Layout design Handling systems design

Facilities location The placement of the facility with respect to customers, suppliers and other facilities, and also its orientation on a given piece of land. Factors: Closeness (to the market, to the raw materials, to the suppliers, to other facilities, to the competitors) Geographical area (zoning, transportation access, labor, demographics, climate, environmental considerations) Fixed and recurring costs

Facilities systems design Structural systems, enclosure systems, atmospheric systems, electrical and lighting systems, communication system, life safety systems, sanitation system, etc. What systems are required Where they are required Integrating the systems into the overall facility

Layout design Layout for production areas Production-related and support areas Consists of all equipment, machinery and furnishing within the building envelope Determination of: Block layout Relative locations and sizes of the planning departments equipment and storage areas

Handling systems design The mechanisms needed to satisfy the required facility interactions It consists of materials, personnel, information and equipment-handling systems required to support production. Receiving, storing, retrieval, transporting, packaging and shipping, postal system. personnel transit system.

Which should be designed first: the material handling system or the facility layout? The layout and the handling system should be designed simultaneously

Example of Detailed Layout

Main characteristics of facilities in a supply chain Proper Facilities planning ensures that a product will be manufactured and shipped to satisfy the ultimate customer needs, facilities that achieve this objective should have the following characteristics: Flexibility Flexible facilities are able to handle a variety of requirements without being altered Modularity Modular facilities include systems that cooperate efficiently over a wide range of operating rates Upgradeability Upgraded facilities easily incorporate advances in equipment systems and technology Adaptability Considering the Calendar Cycles Peaks Selective operability Understanding how each facility segment operates Allows contingency plans to be put in place

Levels of Supply Chain Excellence Process Business as usual Link Excellence Visibility Collaboration Synthesis Velocity The facilities we plan today must help an organization achieve supply chain excellence.

Fig 1.1: Continuous improvement facilities planning cycle

Figure 1-2: Facilities Planning as part of Supply chain excellence

Figure 1-3: Facilities Planning for specific types of facilities (a) Manufacturing Plant, (b) Office, (c) Hospital (d) Emergency room

Objectives of Facilities Planning Improve customer satisfaction Maximize speed Reduce costs (transportation costs, inventory costs…) Integrate the supply chain Support the organization’s vision Effectively utilize resources Maximize return on investment (ROI) Maximize return on assets (ROA) Be easy to adapt and to maintain Provide safety for employees

Four main issues when designing a facility: Customers Internal efficiency Work environment Integration into the supply chain

Figure 1-4: Winning Facilities Planning Process

Figure 1-5: The model of success “ winning circle”

Figure 1-6 a: The facilities planning process: General and manufacturing facilities

Figure 1-6 b: The facilities planning process: Hospital

Figure 1-7: Cost of design changes during a project Strategic Facilities Planning Figure 1-7: Cost of design changes during a project

Strategic Facilities Planning Figure 1-8:

Figure 1-9: Dimensions for improvement Strategic Facilities Planning Buildings, Equipment and People Space standards, materials control and productivity measures Provide enough time for planning Figure 1-9: Dimensions for improvement

Significance of Facilities Planning Material Handling costs are about 20-50% of overall operating costs (materials and manufacturing) New technology renders old machines and equipment obsolete. Employee health and safety have become a motivation for behind facilities planning studies. Energy conservation is also another motivation for facilities planning studies. Fire protection and security should be considered when designing facilities. Community rules against noise, air pollution and waste disposal. Compliance with disabilities acts. Pilferage losses should be considered when designing facilities. Table 1-1: Percentage of GNP expended on new facilities in USA (1955-2003)

Table 1-2: Explanation of Winning Facilities Planning Process

Table 1-3: Comparison of EDP, FPP and WFPP