1. 10/12/2015 IENG 471 Facilities Planning 1 IENG 471 - Lecture 02 Strategic Facilities Planning

2. 10/12/2015IENG 471 Facilities Planning 2 Agenda Assignments Facilities Planning Defined Strategic Planning Concept of Strategic Planning Relationship between Strategic & Tactical Considerations in Strategic Facilities Planning Facilities Planning Process Steps in Engineering Design Process (review) Steps in the Facilities Plan Design Process Data for Facilities Planning Design Questions & Issues

3. 10/12/2015IENG 471 Facilities Planning 3 Potential Projects Redesign of O’Harra Business Offices (basement) Basement areas except for Office of Sponsored Programs CICMHE Competition 5 weeks, Distribution Center, TBA Reconfigurable MIL Lab/SIFE Production Center It’s a lab, no – it’s a class room, no – it’s a production facility SDSM&T Recreation Center If you’re gonna pay for it, why not have some suggestions? Brownfield Sand Casting Job Shop If my wife’s gonna pay for it, why not have some suggestions? Others?

4. 10/12/2015IENG 471 Facilities Planning 4 Assignments Current Assignment: HW: 1 – Planned Facility Measures (teams of 3 – 4) Collect data and Sketch Up Collaboration space 5+ Criteria with 5 Quantitative Measures 5+ Items/things that should be housed Under $ 4 000 budget Turn in one document per team Next Assignment: HW: 2 – Product Definition (teams of 2 – 3) Reverse engineer a product, and … Create the Indented BOM and cost roll-up Create the OPC Create the Precedence Diagram Turn in one document per team

5. 10/12/2015IENG 471 Facilities Planning 5 Facilities Planning Determines how an activity’s tangible, fixed assets should contribute to meeting the activity’s objectives (Boozer, White, et al., p. 26, 3 rd Ed.) Consists of facility location and facility design Part art, part science – (engineering!) Approach using the engineering design process Continuous process with life cycle(s) Represents a very significant opportunity for cost reduction and productivity improvement

6. 10/12/2015IENG 471 Facilities Planning 6 Strategic Planning Defn: The art and science of employing resources to achieve an objective 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 Rapid City SD to Chicago IL– (map?) Resources Timing Control Strategic and Tactical relationship Objective of strategic plan doesn’t change!

7. 10/12/2015IENG 471 Facilities Planning 7 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

8. 10/12/2015IENG 471 Facilities Planning 8 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 Distributed processing levels Inbound and outbound material movement Technology changes for suppliers, firm, customers Financial goals for the design of the facility

9. 10/12/2015IENG 471 Facilities Planning 9 Steps in Engineering Design Ideal Sequence: 1. Defining the Problem 2. Gathering Pertinent Information 3. Generating Multiple Solutions 4. Analyzing and Selecting a Solution 5. Testing and Implementing the Solution Actual process is iterative… Frequently back-track to a previous stage

10. 10/12/2015IENG 471 Facilities Planning 10 Facilities Planning Process Steps Defining the Problem 1. Define the products to be manufactured / processed Gathering Pertinent Information 2. Specify the manufacturing / processing & related activities 3. Determine activity interrelationships 4. Determine activity space requirements

11. 10/12/2015IENG 471 Facilities Planning 11 Facilities Planning Process Steps Generating Multiple Solutions 5. Generate alternative facilities plans Analyzing and Selecting a Solution 6. Evaluate the alternative plans 7. Select the preferred facilities plan Testing and Implementing the Solution 8. Implement the facilities plan 9. Maintain and update the facilities plan

12. 10/12/2015IENG 471 Facilities Planning 12 Facilities Planning Process Steps Frequently back-track to a previous stage 10. Update the products and redefine the objective of the facility

13. 10/12/2015IENG 471 Facilities Planning 13 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?

14. 10/12/2015IENG 471 Facilities Planning 14 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 shipping 3. When are the products to be produced? Within 1/2 month prior to introduction, and 2 months after order 4. How much of the product is to be produced? Batch production runs of 100 to 1000, ~ 8 new & 20 total models/yr 5. How long will the product be produced? 2 – 3 yrs/model, product lifecycle of 15 – 30 yrs, facility life >50 yrs 6. 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

15. 10/12/2015IENG 471 Facilities Planning 15 Example Data for Strategic Facility Design 7. What is the production site like? Three, single-story pole-buildings (one improved, with 2 additions) 8. What utilities are available (and where)? Municipal sewer & water; regional electric, internet & natural gas 9. What transportation is available (and where)? Railroad line on South, at-grade truck on East in street ROW 10. How is the production site constrained? Rail, creek to South; streets East (access), North; open land West 11. How many people will be required? 40 – 90 people, non-union, 8% office, two 8 hr shifts, 6 days/week 12. What standards are applicable? ADA (28 CFR 36), IBC, IFC, IECC, NEC, NFPA, OSHA (29 CFR 1910), UPC; near flood plain; no municipal/county parking regulations

16. 10/12/2015IENG 471 Facilities Planning 16 Exercise: 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? How would you answer these questions for the following: I. Armadillo’s II. McDonald’s III. Hardee’s IV. Applebee’s V. Minerva’s VI. Corn Exchange

17. 10/12/2015IENG 471 Facilities Planning 17 Questions & Issues Next Class: Hands on assignment to develop: BOM Operation Process Chart Precedence Diagram Team exercise (but not part of Project) 3 people per team (2 people, if necessary)

18. 10/12/2015IENG 471 Facilities Planning 18 Assignments New Assignment: Reading: CH 2 (2.1 – 2.3) HW: 2 – Product Definition (also a Project Task) Identify & define the purpose of your facility Draft a strategic plan for the facility (2 + paragraphs / person and flow diagram for major product(s) & sub-products) Next Assignment: Reading: CH 2 (2.4 – 2.6) HW: 3 – Product / Process Documentation BOM, Ops Chart, Precedence Diagram for Toy Tractor