Agenda of Week IX. Capacity and Process Capacity planning Midterm exam Capacity planning Review of week 8 12 Approaches Purposes : Finishing the capacity planning Understanding the selection of process type Process selection 3 Jobshop Batch Repetitive Continuous Facility layout 3 Product layout Process layout Cellular layout

Review of Week VIII. Capacity Purposes : Understanding the capacity planning Capacity planning 1 Three planning areas Definitions Approaches Midterm exam 2 Two of four candidate questions

Capacity Planning (Ch.5) o Design capacity vs. effective capacity Table 5.1 Efficiency vs. utilization: Template o Determinants of effective capacity Table 5.2 o Processing requirements: Template Accurate forecast, standard processing time/unit, # of machines needed

Capacity Planning (Ch.5) o Make or Buy? Produce a good by itself or buy it from outside Available capacity, expertise, quality Nature of demand, cost, risk o Right before construction … Flexibility, product life cycle, bottleneck, capacity chunks, smoothing, optimal operating level …

Process Selection (Ch.6) o Implication: Figure 6.1 o Key questions Variety in products and services Degree of equipment flexibility Expected volume

Process Types (Ch.6) o Job shop Small scale Low volume of high variety goods Intermittent processing General purpose equipment and skilled workers Die shop, hospitals

Process Types (Ch.6) o Batch Moderate scale Moderate volume of moderate variety goods Intermittent processing General purpose equipment and somewhat skilled workers Bakeries, cinemas, airlines, icecream, books etc.

Process Types (Ch.6) o Repetitive Somewhat large scale High volume of standardized goods Repetitive processing Slightly flexible equipment and lowly skilled workers Assembly lines: Automobiles, pencils, automatic car wash

Process Types (Ch.6) o Continuous Largest scale High volume of nondiscrete, highly standardized goods Continuous processing No flexible equipment and various skilled workers Refinery, steel, sugar, Internet o P.230, Table 6.1, Figure 6.2, Table 6.2

Facility Layout (Ch.6) o Configuration of departments, work centers, and equipment Substantial investments Long term commitment Significant impact on cost and efficiency

Facility Layout (Ch.6) o Objectives Smooth flow of work, material, and information Attainment of product quality Use of workers and space efficiently Avoidance of bottleneck Minimization of production cost and time Elimination of wastes

Facility Layout (Ch.6) o Product layouts For repetitive processing Standardized processing operations Smooth, rapid, high volume flow Standardized layout arranged according to a fixed sequence of tasks Figure 6.4, 6.5

Facility Layout (Ch.6) Preventive maintenance Advantages and disadvantages: p.240 U-shaped layouts

Facility Layout (Ch.6) o Process layouts For nonrepetitive processing Intermittent flexible processing Functional grouping and machine shop General-purpose equipment Figure 6.7 Advantages and disadvantages: p.242

Facility Layout (Ch.6) o Fixed position layouts Construction sites o Cellular layouts Process layout consisting of cells Cell processes items that have similar requirements Each cell is a miniature of product layouts Table 6.3