Manufacturing facilities design and material handing

Manufacturing

Facilities Design and

Material Handling

FIFTH Edition

Matthew P. Stephens

Fred E. Meyers

Purdue University Press

West Lafayette, Indiana

Credits and acknowledgments borrowed from other sources and reproduced, with permission, in this

textbook appear on appropriate page within text. Unless otherwise stated, all figures and tables belong

to the authors.

Copyright © 2013 by Matthew P. Stephens. All rights reserved. Manufactured in the United States of

America. This publication is protected by Copyright, and permission should be obtained from the pub￾lisher prior to any prohibited reproduction, storage in a retrieval system, or transmission in any form or

by any means, electronic, mechanical, photocopying, recording, or likewise.

Many of the designations by manufacturers and sellers to distinguish their products are claimed as

trademarks. Where those designations appear in this book, and the publisher was aware of a trade￾mark claim, the designations have been printed in initial caps or all caps.

This book was previously published by: Pearson Education, Inc.

Cataloging-in-Publication data on file at the Library of Congress.

ISBN-13: 978-1-55753-650-1

ISBN-10: 1-55753-650-3

To my son Ethan

v

Preface

The fifth edition of Manufacturing Facilities Design and Material Handling

embraces the same practical approach to facilities planning as the previous edi￾tions. Building on the same systematic approach, it expands upon an important

and relevant topic of lean manufacturing. In addition to a rich collection of

discussion questions and problems that follow each chapter, a comprehensive

case study has been added. This case study is presented as an Appendix and

clearly illustrates the step-by-step approach in facilities planning as explained

in the textbook, leading to the development of a complete example of a facility

design and layout.

Layout-iQ, a state-of-the-art facilities planning and simulation software package

is introduced in this edition, and access to the software is included for purchasers

of the book.

The goals of this project-oriented facilities design and material handling

textbook are to provide students and practitioners with a practical resource that

describes the techniques and procedures for developing an efficient facility layout,

and to introduce some of the state-of-the-art tools such as computer simulation.

This how-to book leads the reader through the collection, analysis, and develop￾ment of vital and relevant data to produce a functional plant layout. Our systematic

and methodical approach allows the novice to follow along step-by-step. However,

the textbook has been structured so that it may also be used easily and productively

by more experienced planners and serve as a useful guide and reference.

The mathematical background and requirements have been intentionally kept

at the level of high school algebra. Although quantitative analyses and the manipu￾lation of numbers are extremely important for planning an efficient facility, these

skills can be developed without confusing the process with obscure mathematical

procedures.

Some experience with computers and computer-aided design (CAD) software

packages will prove beneficial for the facilities planner and for other professionals

in manufacturing and technology. Those techniques are discussed and emphasized.

On the average, a manufacturing facility will undergo some layout modification

and change once every 18 months. Furthermore, the efficiency, productivity, and

profitability of any given enterprise are directly correlated with the efficiency of the

layout and the material handling systems. Thus, individuals with skills in this area

are in demand and are well compensated.

The design of the facility and material handling systems starts with collecting

data from various departments. Chapter 2 describes the sources and the significance

of this information. The marketing department provides data on various customer

requirements that determine production volume and various manufacturing capa￾bilities. The product engineering department supplies engineering drawings and

bills of materials, and assists with equipment requirement determination. Inventory

and investment policies are determined according to management policies which

in turn dictate space requirements, make or buy decisions, production start dates,

and so on.

Among the most basic and fundamental data are principles of time and motion

economy and time standards. On the basis of this information, machine and per￾sonnel requirements are calculated, assembly lines are balanced, and workload in

manufacturing cells are leveled. Chapter 3 introduces the reader to the concepts of

motion and time study.

Chapter 4 describes the development of route sheets, the sequence of opera￾tions, assembly charts, assembly line balancing, and fraction equipment calculation.

Use of computer simulation has also been added. Chapter 5 analyzes material flow

to ensure proper placement of machines and departments to minimize costs. Seven

techniques are discussed in the chapter, as well as the use of computer-aided flow

design and analysis.

Chapter 6 describes the activity relationship diagram. The importance of rela￾tionships among departments, people, offices, and services, and their effect on the

layout is explored. The activity relationship leads to the creation of the dimension￾less block diagram.

Space calculation and ergonomic considerations are major and significant

aspects of facilities planning. Chapter 7 discusses workstation design, Chapter 8 cov￾ers auxiliary services’ space requirements, Chapter 9 discusses employee services’

space requirements, and Chapter 12 covers office layout techniques and space

requirements.

The dimensionless block diagram, which was developed in Chapter 6, is used as

a guide to area allocation and is discussed in Chapter 13. The area allocation proce￾dure results in an area allocation diagram. At this point, a plot plan and a detailed

layout are created. Chapter 14 discusses various layout construction techniques.

Many other functions require space. Some of these areas need as much space

as the production department. The stores and warehouse departments are good

examples. Good analysis and knowledge of design criteria can save much space and

promote efficiency of both personnel and equipment. Other functions and spaces

such as receiving, shipping, lunchroom, restrooms, first-aid rooms, and offices need

careful consideration by the facilities planner. The location and size of each activity

can have an effect on the overall operational efficiency. Chapters 8, 9, and 12 are

dedicated to these topics.

Material handling systems are discussed in Chapters 10 and 11. The reader

is introduced to new and exciting material handling concepts and equipment.

Application of automatic identification and data capture (AIDC) and ergonomic

considerations are emphasized. The reader is encouraged to integrate material

handling with other functions to increase productivity and efficiency.

vi preface

Chapter 15 discusses the concept of simulation and introduces the reader to

various applications and the power of computer simulation in the facilities plan￾ning arena. Some state-of-the-art simulation software packages are introduced to

the reader, and case studies are discussed. As stated earlier, access to Layout-iQ is

provided for hands-on application and use of layout design software.

Chapter 16 covers selling the layout through a project report and oral presenta￾tion, an important part of any project.

The resultant facility design is only as good as the data and the data analyses

upon which the plan has been based. Probably no single factor affects the opera￾tional efficiency and safety of an enterprise more than its layout and material han￾dling system.

Matthew P. Stephens

Fred E. Meyers

Preface vii

I would like to express my gratitude to the reviewers and the wonderful staff at

Purdue University Press whose generous help, efforts, and guidance has made the

fifth edition of the Manufacturing Facilities Design and Material Handling a reality.

A very special note of gratitude goes to Mr. Nelson E. Lee and Rapid Modeling

Corporation for generously and kindly providing the users of this edition with links

to Layout-iQ, a state-of-the-art simulation and planning software. I would like to

acknowledge and thank Manny Cuevas, Michael Thoma, Bryan Orozco, Jarrett

Hullinger, and Ben Unger for their hard work and efforts in developing the S. S.

Turbo Manufacturing case study. I would like to express a heartfelt “thank-you” to

Mr. Shaharyar Masood for his tireless and invaluable assistance with the necessary

research and development of this edition.

Matthew P. Stephens

Acknowledgments

ix

C Chapter Title ontents xi

Matthew P. Stephens, Ph.D., CQE, is a Professor and Faculty Scholar in the

Department of Technology Leadership and Innovation at Purdue University, where

he teaches graduate and undergraduate courses in facilities planning, statistical

quality control, and total productive maintenance (TPM). Dr. Stephens holds

undergraduate and graduate degrees from Southern Illinois University and the

University of Arkansas, with specialization in operations management and statistics.

Prior to joining academe, Dr. Stephens spent 9 years with several manufactur￾ing and business enterprises, including flatbed trailer, and washer and dryer manu￾facturers. He has been extensively involved as a consultant with a number of major

manufacturing companies.

Dr. Stephens has numerous publications in the areas of simulation, quality

and productivity, and lean production systems. He has served various professional

organizations, including the Association of Technology, Management, and Applied

Engineering (ATMAE) and the American Society for Quality (ASQ), where he

obtained his Certified Quality Engineering and Six Sigma Black Belt training.

Dr. Stephens is also the author of the Productivity and Reliability-Based Maintenance

Management textbook (Purdue University Press, 2010).

Fred E. Meyers, PE, is president of Fred Meyers and Associates, an industrial engi￾neering management consulting company. Mr. Meyers is a registered professional

industrial engineer and a senior member of the Institute of Industrial Engineers. He

is a Professor Emeritus in the College of Engineering at Southern Illinois University–

Carbondale.

About the Authors

xi

Contents

Chapter 1 Introduction to Manufacturing Facilities Design

and Material Handling 1

Objectives 1

The Importance of Manufacturing Facilities Design and Material Handling 1

Lean Thinking and Lean Manufacturing 4

The Goals of Manufacturing Facilities Design and Material Handling 6

The Manufacturing Facilities Design Procedure 12

Types and Sources of Manufacturing Facilities Design Projects 14

Computers and Simulation in Manufacturing Facilities Design 15

ISO 9000 and Facilities Planning 16

Glossary of Some Major Terms and Concepts in Facilities Planning 18

Questions 21

Chapter 2 Sources of Information for Manufacturing

Facilities Design 22

Objectives 22

The Marketing Department 23

Determining Takt Time or Plant Rate 24

Calculating Scrap and Rework Rates 25

The Product Design Department 27

The Indented Bill of Material 32

Management Policy Information 36

Inventory Policy 36

Lean Thinking and Muda as Part of Management Policy 36

Investment Policy 37

Startup Schedule 37

Make or Buy Decisions 38

Organizational Relationships 39

Feasibility Studies 39

Conclusion 40

Questions 41

xiii

xiv contents

Chapter 3 Time Study 42

Objectives 42

What is a Time Standard? 43

The Importance and Uses of Time Study 44

1. How Many Machines Do We Need? 46

2. How Many People Should We Hire? 47

3. How Much Will Our Product Cost? 50

4. When Should We Start a Job, and How Much Work Can We Handle with the

Equipment and People We Have? Or, How Do We Schedule and Load Machines, Work

Centers, Departments, and Plants? 51

5. How Do We Determine the Assembly Line Balance and the Conveyor Belt Speed,

Load the Work Cells with the Correct Amount of Work, and Balance the

Work Cells? 52

6. How Do We Measure Productivity? 53

7. How Can We Pay Our People for Outstanding Performance? 54

8. How Can We Select the Best Method or Evaluate Cost Reduction

Ideas? 55

9. How Do We Evaluate New Equipment Purchases to Justify Their

Expense? 57

10. How Do We Develop a Personnel Budget? 57

Techniques of Time Study 57

Predetermined Time Standards Systems 58

Stopwatch Time Study 58

Time Study Procedure and the Step-by-Step Form 62

Rating, Leveling, and Normalizing 71

Allowances 73

Types of Allowances 73

Methods of Applying Allowances 77

Work Sampling 80

Standard Data 81

Expert Opinion Time Standards and Historical Data 82

Time Standards for Manufacturing Facilities Design 83

Questions 84

Chapter 4 Process Design 86

Objectives 86

Fabrication: Making the Individual Parts 87

Route Sheets 87

The Number of Machines Needed 91

Work Cell Load Chart 92

Step-by-Step Procedure for Preparing a Work Cell Load Chart 94