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© 2004 Superfactory™. All Rights Reserved.
Cellular Manufacturing
and Plant Layout
Superfactory Excellence Program™
www.superfactory.com
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© 2004 Superfactory™. All Rights Reserved.
Disclaimer and Approved use
 Disclaimer
 The files in the Superfactory Excellence Program by Superfactory Ventures LLC
(“Superfactory”) are intended for use in training individuals within an organization. The
handouts, tools, and presentations may be customized for each application.
 THE FILES AND PRESENTATIONS ARE DISTRIBUTED ON AN "AS IS" BASIS WITHOUT
WARRANTIES OF ANY KIND, EITHER EXPRESSED OR IMPLIED.
 Copyright
 All files in the Superfactory Excellence Program have been created by Superfactory and there
are no known copyright issues. Please contact Superfactory immediately if copyright issues
become apparent.
 Approved Use
 Each copy of the Superfactory Excellence Program can be used throughout a single Customer
location, such as a manufacturing plant. Multiple copies may reside on computers within
that location, or on the intranet for that location. Contact Superfactory for authorization to
use the Superfactory Excellence Program at multiple locations.
 The presentations and files may be customized to satisfy the customer’s application.
 The presentations and files, or portions or modifications thereof, may not be re-sold or re-
distributed without express written permission from Superfactory.
 Current contact information can be found at: www.superfactory.com
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© 2004 Superfactory™. All Rights Reserved.
Outline
 Fundamentals of layout
 Process
 Product
 Fixed
 Hybrid
 Cellular Manufacturing
 Characteristics
 Implementing Cells
 Part Families
 Production Flow Analysis
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© 2004 Superfactory™. All Rights Reserved.
What is the Facility Layout Problem?
 Concerned with arrangement of machines, cells, or
departments.
 Often computationally difficult.
 A decision is both quantitative & qualitative.
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© 2004 Superfactory™. All Rights Reserved.
Why is the Layout Problem Difficult?
 It has geometric and combinational aspects.
 Jig-saw puzzle.
 Difficult picture
 No picture
 No shapes
 Goal: Minimize material handling costs.
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© 2004 Superfactory™. All Rights Reserved.
Effective Facility Layout
 Minimize material handling costs
 Utilize space efficiently & effectively
 Utilize labor efficiently & effectively
 Eliminate bottlenecks
 Eliminate wasted or redundant movement
 Incorporate safety & security measures
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© 2004 Superfactory™. All Rights Reserved.
Basic Layouts
 There are three basic types of layouts:
 Process
 Product
 Fixed-position
 There are two hybrid types of layouts
 Flexible and Mixed-Model manufacturing systems
 Cellular
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© 2004 Superfactory™. All Rights Reserved.
Process Layout
 Process layouts (functional layouts)
 Definition – A layout that groups similar activities
together in departments of work centers according to
process or functions that they perform.
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Characteristics of Process layout
 Goal – To minimize material handling cost
 Product – Varied made to order
 Demand – Fluctuates
 Production volume – low (custom products)
 Inventory – High in process
- Low in finished goods
 Storage Space – relatively large
 Aisles – tend to be wide
 Material handling – variable path (forklift)
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© 2004 Superfactory™. All Rights Reserved.
Characteristics
 Layout decision – machine location based
 Workers tend to be skilled at operating the
equipment in their departments
 Intermittent, job shop, batch production, mainly
fabrication
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Process Layout
Lathe Drill
Grind
Lathe Weld
Assembly
Drill
Mill
Warehouse
Lathe Paint
Lathe
Weld
Paint
Mill
Mill
Mill Grind
Assembly
Warehouse
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© 2004 Superfactory™. All Rights Reserved.
Process-Oriented Layout
 Department areas having similar processes located in close
proximity
 Design places departments with large flows of material or
people together
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Process Layout - Advantages
 Better utilization of machines
 Fewer machines required
 High degree of flexibility relative to equipment or manpower
allocation for specific tasks
 Comparatively low investment in machines is required
 The diversity of the task offers a more interesting and
satisfying occupation for the operator
 Specialized supervision is possible
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© 2004 Superfactory™. All Rights Reserved.
Process Layout Characteristics
 Advantages
 Deep knowledge of the process
 Common tooling and fixtures
 Most Flexible -- can produce many different part types
 Disadvantages
 Spaghetti flow -- everything gets all tangled up
 Lots of in-process materials
 Hard to control inter-department activities
 Can be difficult to automate
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© 2004 Superfactory™. All Rights Reserved.
Process Layout - Limitations
 Since longer flow lines usually result, material handling is more
expensive
 Production planning and control systems are more involved
 Total production time is usually longer
 Comparatively large amounts of in-process inventory results
 Space and capital are tied up by work-in-process
 Because of the diversity of the jobs in specialized departments, higher
grades of skill are required
 Inefficient
 Because jobs or customers do not flow through in an orderly
fashion; backtracking is common.
 Idling
 Workers may experience more “idle time” if they are waiting
around for more work to arrive from a different department.
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© 2004 Superfactory™. All Rights Reserved.
Impact of Interruptions on Flow Paths
Lathe Drill Grind
Lathe
Drill
Press Bend Drill
Mill Drill
Lathe Mill
Mill
Drill Mill
Drill
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© 2004 Superfactory™. All Rights Reserved.
Designing Process Layouts
 The main goal to keep in mind is to minimize material
handling costs
 Therefore the departments that incur the most
interdepartmental movement should be located closest
to one another
 Two types of design layouts
 Block diagramming
 Relationship diagramming
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© 2004 Superfactory™. All Rights Reserved.
Block Diagramming
 This refers to the movement of materials in existing or
proposed facility
 Information is usually provided with a from/to chart or
load summary chart
 This gives the average number of units loads moved
between departments
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© 2004 Superfactory™. All Rights Reserved.
Block Diagramming
 A unit load can be a single unit, a pallet of material a bin of
material, or a crate of material
 Material is constantly moving from location to location
 The next step is to design the layout by calculating the
composite movements between departments and rank
them from most movement to least movement
 Composite movement refers to the back-and-forth
movement between each pair of departments
 Finally, trial layouts are place on a gird that graphically
represents the relative distances between departments.
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© 2004 Superfactory™. All Rights Reserved.
Relationship Diagramming
 For situations in which quantitative date is hard to
obtain it is more relevant to use a relationship
diagramming technique
 Richard Muther developed a format for displaying
manger preferences for departmental locations, know as
Muther’s grid
 Muther’s diagram uses codes and letter to represent
how close departments are to one another
 The information from Muther’s diagram can be used to
make a relationship diagram to evaluate a current
layout or proposed layouts
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© 2004 Superfactory™. All Rights Reserved.
Computerized Layout Solutions
 Several computer programs exist that assist in
designing process layouts
 The best known are CRAFT (Computerized Relative
Allocation of Facilities Technique) and CORELAP
(Computerized Relationship Layout Planning)
 Basically the computer program is given layout date
and then makes a recommendation
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© 2004 Superfactory™. All Rights Reserved.
Service Layouts
 Most Service organizations use process layouts because
of the variability in customer requests for service
 Service organizations look to maximize profits per unit of
display space, rather than minimize customer flow
 The layout must be aesthetically pleasing we well as
functional
23
© 2004 Superfactory™. All Rights Reserved.
Process in Manufacturing firms
 Process layouts require flexible material handling
equipment (such as forklifts) which can follow multiple
paths and carry large loads of in-process goods
 All areas of the facility must have timely access to the
material handling equipment
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© 2004 Superfactory™. All Rights Reserved.
The Product Layout
 Definition
 A facility layout that arranges activities in a line
according to the sequence of operations that need to be
performed to assemble a product, while minimizing
material handling costs.
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© 2004 Superfactory™. All Rights Reserved.
History of the Product Layout
 1895 - Frederick Winslow Taylor.
 Work should be broken into individual tasks.
 Those tasks can be shortened or eliminated.
 Frank Gilbreth - Time study techniques.
 Work combined led to maximum efficiency in industrial
work.
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© 2004 Superfactory™. All Rights Reserved.
History
 1909 - Henry Ford
 Boosted recognition for Taylor and Gilbreth’s ideas.
 Increased productivity on his Model T by pulling the car
through the plant at a constant speed while workers
added accumulated parts.
 Production time decreased from 12 hours and 8 minutes
to 1 hour and 33 minutes.
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© 2004 Superfactory™. All Rights Reserved.
History
 In the 1920’s manufacturers moved away from assembly
lines to gain flexibility in their products.
 The Product Layout came back into style as a form called
Flow Manufacturing emerged in the 1970’s.
 The Product Layout is still popular today.
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© 2004 Superfactory™. All Rights Reserved.
Product Layouts
 Most appropriate for continuous operations.
 Used for products with high volume and steady demand.
 Machines perform a singular, specialized task.
 Machines are organized consecutively.
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© 2004 Superfactory™. All Rights Reserved.
Product Layout
Lathe Drill Grind
Lathe
Drill
Press Bend Drill
Mill Drill
Warehouse
Assembly
Lathe Drill
30
© 2004 Superfactory™. All Rights Reserved.
Product Layout
Shipping
L L M D
L M D
G
L M G
G
A A
Receiving
Part #1
Part #3
Part #2
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© 2004 Superfactory™. All Rights Reserved.
Product Requirements
 Standardized product
 High production volume
 Stable production quantities
 Uniform quality of raw materials & components
32
© 2004 Superfactory™. All Rights Reserved.
Product-Oriented Layout - Assumptions
 Volume is adequate for high equipment utilization
 Product demand is stable enough to justify high investment
in specialized equipment
 Product is standardized or approaching a phase of its life
cycle that justifies investment in specialized equipment
 Supplies of raw materials and components are adequate
and of uniform quality ensure they will work with
specialized equipment
33
© 2004 Superfactory™. All Rights Reserved.
Product-Oriented Layout Types
Assembly Line
• Assembles fabricated parts
• Uses workstation
• Repetitive process
• Paced by tasks
• Balanced by moving tasks
Fabrication Line
• Builds components
• Uses series of machines
• Repetitive process
• Machine paced
• Balanced by physical redesign
34
© 2004 Superfactory™. All Rights Reserved.
Line Configuration
 The flow of products is continuous along a line.
 Linear pattern.
 “L” pattern.
 “U” shape.
 Snake shape.
 Shape determines workers flexibility.
35
© 2004 Superfactory™. All Rights Reserved.
Product Layout - Advantages
 Layout corresponds to the sequence of operations, smooth
and logical flow lines result
 Work from one process is fed directly into the next, small
in-process inventories result
 Total production time per unit is short
 Machines are located as to minimize distances between
consecutive operations, material handling is reduced
 Little skill is usually required by operators at the production
line; hence, training is simple, short and inexpensive
 Simple production planning and control systems are
possible
 Less space is occupied by work in transit and for temporary
storage
 Lower variable cost per unit
36
© 2004 Superfactory™. All Rights Reserved.
Product Layout - Advantages
 Stable rate of output.
 Work-in-process inventory is low.
 Total production time/unit is reduced.
 Space is effectively utilized.
 Narrow aisles.
 Labor pool is large.
 Single skilled.
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© 2004 Superfactory™. All Rights Reserved.
Product Layout - Limitations
 A breakdown of one machine may lead to complete stoppage of
the line that follows that machine
 Since the layout is determined by the product, a change in
product design may require major alterations in the layout
 The “pace” of production is determined by the slowest machine
 Supervision is general
 Comparatively high investment is required, as identical
machines (a few not fully utilized) are sometimes distributed
along the line
 Lack of flexibility
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© 2004 Superfactory™. All Rights Reserved.
Product Layout - Disadvantages
 If one machine fails the whole process stops.
 Changes in product design can render the layout obsolete.
 Bottlenecks govern the speed.
 Large support staff required.
 High fixed costs.
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© 2004 Superfactory™. All Rights Reserved.
Product Layouts - Now & Then
 Traditional
 Top priority: Line
balancing.
 Inventory buffers.
 Planned by admin. staff.
 “L” shaped lines.
 Conveyor movement.
 New Focus
 Top priority: flexibility.
 Preventive maintenance
 Shop supervisor designs
and adjusts.
 “U” shaped lines.
 Stations are close
together.
40
© 2004 Superfactory™. All Rights Reserved.
Designing Product Layouts
 Main Objective: Arrange workers and machines in a line
according to the operations that need to be performed.
 It isn’t always that simple.
 Line balancing.
 Line balancing software:
 COMSOAL - IBM
 ASYBL - GE
41
© 2004 Superfactory™. All Rights Reserved.
Line Balancing
 Equalizes amount of work at each station.
 Constraints in Line Balancing.
 Precedence Requirements
 The order in which operations need to take place.
 Cycle Time
 Maximum time a product can be at a station.
 A guess and check process.
42
© 2004 Superfactory™. All Rights Reserved.
Fixed-Position Layouts
 The product remains stationary for the entire manufacturing
cycle.
 Equipment, workers, materials, and other resources are
brought to the production site.
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© 2004 Superfactory™. All Rights Reserved.
Fixed-Position Layouts
When is it used?
Fixed-Position layouts are used in projects in which the product
cannot be moved.
It is typical of projects in which the product produced is:
 too fragile
 bulky
 heavy to move
44
© 2004 Superfactory™. All Rights Reserved.
Fixed-Position Layouts
 Equipment
 Low equipment utilization:
 idle equipment at location
 it will be needed again in a
few days
 Equipment is leased or
subcontracted
 it is used for limited periods
of time
 Workers
 Highly skilled at performing
special tasks
 High wage rates
 Cost breakdown for fixed-position layouts:
 Fixed Cost:
 relatively low (equipment may
not be owned by the company)
 Variable Cost
 High (due to high labor rates and
the cost of leasing and moving
equipment.
Characteristics of the process:
45
© 2004 Superfactory™. All Rights Reserved.
Fixed-Position Layout - Advantages
 Material movement is reduced
 Promotes job enlargement by allowing individuals or teams the
perform “whole job”
 Continuity of operations and responsibility results from team
 High flexibility; can accommodate changes in product design,
product mix, and production volume
 Independent of production centers allows scheduling to achieve
minimum total production time
46
© 2004 Superfactory™. All Rights Reserved.
Fixed-Position Layout - Limitations
 Increased movement of personnel and equipment
 Equipment duplication may occur
 Higher skill requirements for personnel
 General supervision required
 Cumbersome and costly positioning of material and machinery
 Low equipment utilization
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© 2004 Superfactory™. All Rights Reserved.
Factors Complicating a Fixed Position Layout
 Limited space
 Coordinating service providers in sequence, on time, on
schedule, and with other activities occurring concurrently
 Volume of materials changes often
48
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Fixed Position Layout
Lathe Grind
Drill
Press
Warehouse
Paint
Warehouse
Assembly
49
© 2004 Superfactory™. All Rights Reserved.
Hybrid Layouts
 Flexible & Mixed-Model Manufacturing
 High level of complexity
 Mathematically intensive
 Cellular Manufacturing
50
© 2004 Superfactory™. All Rights Reserved.
Cellular Manufacturing
“Cellular Manufacturing organizes the entire process for
similar products into a group of team members,
includes all the necessary equipment and is known as a
"Cell".
Merryman, Wes. Cellular Manufacturing
51
© 2004 Superfactory™. All Rights Reserved.
Cellular Manufacturing
“…The cells are arranged to easily facilitate all
operations. Parts are handed off from operation to
operation eliminating setups and unnecessary
costs between operations.”
Merryman, Wes. Cellular Manufacturing
52
© 2004 Superfactory™. All Rights Reserved.
Introduction to Cellular Manufacturing
• The cellular approach is to organize the entire manufacturing
process for particular or similar products into one group of team
members and machines known as a "Cell".
• These "cells" are arranged in a U-shaped layout to easily
facilitate a variety of operations.
• Parts or assemblies move one at a time (or in small batch
sizes).
• The parts are handed off from operation to operation without
opportunity to build up between operations.
53
© 2004 Superfactory™. All Rights Reserved.
Introduction to Cellular Manufacturing
• Fast setup and quick changeovers are essential to Cellular
Manufacturing systems since production runs are shorter.
• Setup reduction principles are used to achieve one piece flow
and mixed model synchronization.
• All cells concentrate on eliminating waste.
54
© 2004 Superfactory™. All Rights Reserved.
Group Technology / Cellular Layout
Lathe Drill Grind
Lathe
Drill
Press
Warehouse
Assembly
Lathe Drill
55
© 2004 Superfactory™. All Rights Reserved.
Work Cells - Advantages
 Increased machine utilization
 Team attitude and job enlargement tend to occur
 Compromise between product layout and process layout, with
associated advantages
 Supports the use of general purpose equipment
 Shorter travel distances and smoother flow lines than for
process layout
56
© 2004 Superfactory™. All Rights Reserved.
Work Cells - Advantages
 Reduced work-in-process inventory
 Less floor space required
 Reduced raw material and finished goods inventories required
 Reduced direct labor costs
 Heightened sense of employee participation
 Increased utilization of equipment machinery
 Reduced investment in machinery and equipment
57
© 2004 Superfactory™. All Rights Reserved.
Work Cells - Limitations
 General supervision is required
 Higher skill levels required of employees than for product layout
 Compromise between product and process layout, with
associated limitations
 Depends on balanced material flow through the cell; otherwise,
buffers and work-in-process storage are required
 Lower machine utilization than for process layout
58
© 2004 Superfactory™. All Rights Reserved.
Empowered Employees in Cells
• Goals and tracking charts are maintained and posted.
• Problems are solved through daily cell meetings and problem
solving teams.
• The inventory management system is a KANBAN Demand Pull
instead of a work order/kit picking system.
• Cells are responsible for planning, scheduling and expediting
directly with vendors.
• They establish and maintain a KANBAN system with the
vendors.
59
© 2004 Superfactory™. All Rights Reserved.
Advanced Cellular Manufacturing
 The cell operates like an independent business with total
responsibility for quality, manufacturing and delivery of the
product to the customer.
 All cells have the resources within their organization to
accomplish their mission.
 The requirements are known and goals are established.
 Cell members are flexible and work in teams to accomplish
their goals including continuous improvement.
60
© 2004 Superfactory™. All Rights Reserved.
Creating Cells
 First, define the “cells” by the following criteria:
 Processes required
 Part numbers and attributes
 Market segments / customers
 Degree of automation
 Good intuition
 Careful study
 Group Technology (GT)
 Production Flow Analysis (PFA)
61
© 2004 Superfactory™. All Rights Reserved.
Creating Cells
 Team selection is crucial
 Identify important skills needed such as teamwork and
leadership skills
 Create a process map
 Develop a checklist for selecting members
62
© 2004 Superfactory™. All Rights Reserved.
Part Family Formation
 Various levels – macro and micro
 Macro – entire factories (focused factories) can specialize in a
particular type of part
 Micro – families can be based on similarities in part geometry
(group shafts, flat parts, gears, etc…), process requirements
(castings, forgings, sheet metal parts, heat-treated parts,
printed circuit boards)
 How are these groupings determined?
 Coding
63
© 2004 Superfactory™. All Rights Reserved.
Finding Part Families
 Visual Inspection of physical parts or photographs to identify similarities.
 Coding and Classification of parts by examining design and/or
manufacturing attributes.
 OPITZ System
 MICLASS System
 Here a code is assigned to specific features of the part.
 Is the part cylindrical or prismatic ?
 Does it have threads?
 Does it have through slots?
 Does it require heat treatment?
 This requires a large initial time investment in coding and classifying all
parts.
64
© 2004 Superfactory™. All Rights Reserved.
Finding Part Families
 Production Flow Analysis : Since the parts in a part family have
similar manufacturing processes, it is possible to identify similar
parts by studying the route sheets.
 Parts with similar routes can be grouped into families.
66
© 2004 Superfactory™. All Rights Reserved.
Production Flow Analysis
 PFA is a technique that uses Operation Routing Summaries
as input. It clusters the parts that require the same
processes. These parts can then be assembled into a part
family. The processes can be grouped into a cell to
minimize material handling requirements.
67
© 2004 Superfactory™. All Rights Reserved.
PFA - Organizational View
Production Flow Analysis consists of 5 different analyses:
1. Company Flow Analysis
2. Factory Flow Analysis
3. Group Analysis
4. Line Analysis
5. Tooling Analysis
68
© 2004 Superfactory™. All Rights Reserved.
Company Flow Analysis
 A Planning technique used for the division of large
companies into factory components. It aims to simplify
the flow of materials between factories.
 Uses FROM-TO charts and frequency charts and a flow
analysis (similar to the one discussed in slides 29 – 41).
 Is not a decision making model, but presents data in a
way that decisions can be made based on a company’s
goal.
69
© 2004 Superfactory™. All Rights Reserved.
Factory Flow Analysis
 An attempt is made at this stage to find major groups of
departments, and major families of components which can
be completely processed in these departments.
 The Goal is to change factories from process organization to
product organization and to minimize interdepartmental
material flow
70
© 2004 Superfactory™. All Rights Reserved.
• Study and map the existing flow system
• Identify the dominant material flows between shops (or
buildings)
• Determine the Process Route Number (PRN) for each part
• Analyze the part by PRN.
• Combine closely associated processes at departments that
complete most of the parts they make
• If parts are observed to backtrack then such flows are
eliminated by minor redeployment of equipment
Factory Flow Analysis - Methodology
71
© 2004 Superfactory™. All Rights Reserved.
Group Analysis
 The flows in each of the individual shops (identified by
FFA) are analyzed.
 Operation sequences of the parts that are being
produced in a particular shop are analyzed to identify
manufacturing cells.
 Loads are calculated for each part family to obtain the
equipment requirements for each cell
72
© 2004 Superfactory™. All Rights Reserved.
Group Analysis
 Essentially, while forming and rearranging the PFA
matrix we were performing Group Analysis.
 Those same algorithms are also employed in PFA
activities other than Group Analysis (namely CFA, FFA
etc..)
 Choice of algorithm or technique that is best suited is,
for the most part, a problem specific issue
73
© 2004 Superfactory™. All Rights Reserved.
Line Analysis
 A linear or U-layout is designed for the machines
assigned to each cell.
 The routings for each part assigned to the cell and the
frequency of use of each routing are used to develop a
cell for:
 Efficient transport
 Minimum material handling and travel by operators.
74
© 2004 Superfactory™. All Rights Reserved.
Tooling Analysis
 A Tooling Analysis helps to schedule the cell by identifying
families of parts with similar operation sequences, tooling
and setups.
 It seeks to sequence parts on each machine to sequence all
the machines in the cell to reduce setup times and batch
sizes.
 This increases available machine capacity on bottleneck
work canters in the cell.
75
© 2004 Superfactory™. All Rights Reserved.
PFA: Assumptions
 Each component is equally important in terms of cost
 Lot size & its associated cost are not directly related to
grouping procedure
 Routing is assumed to be optimal
76
© 2004 Superfactory™. All Rights Reserved.
 Reduces flow distances
 Better suited to JIT and “pull” manufacturing as the overall
flow is much straighter
 Simple and Easy to implement
 Experience: Lots of Research and Background and support
software
PFA: Advantages
77
© 2004 Superfactory™. All Rights Reserved.
 PFA is suitable mostly for small-sized applications, but it
has difficulties coping with some large cell formation
problems when the Machine-Part Matrix becomes more
complex because of problem size
PFA: Weakness

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Cell_Manufacturing.ppt

  • 1. 1 © 2004 Superfactory™. All Rights Reserved. Cellular Manufacturing and Plant Layout Superfactory Excellence Program™ www.superfactory.com
  • 2. 2 © 2004 Superfactory™. All Rights Reserved. Disclaimer and Approved use  Disclaimer  The files in the Superfactory Excellence Program by Superfactory Ventures LLC (“Superfactory”) are intended for use in training individuals within an organization. The handouts, tools, and presentations may be customized for each application.  THE FILES AND PRESENTATIONS ARE DISTRIBUTED ON AN "AS IS" BASIS WITHOUT WARRANTIES OF ANY KIND, EITHER EXPRESSED OR IMPLIED.  Copyright  All files in the Superfactory Excellence Program have been created by Superfactory and there are no known copyright issues. Please contact Superfactory immediately if copyright issues become apparent.  Approved Use  Each copy of the Superfactory Excellence Program can be used throughout a single Customer location, such as a manufacturing plant. Multiple copies may reside on computers within that location, or on the intranet for that location. Contact Superfactory for authorization to use the Superfactory Excellence Program at multiple locations.  The presentations and files may be customized to satisfy the customer’s application.  The presentations and files, or portions or modifications thereof, may not be re-sold or re- distributed without express written permission from Superfactory.  Current contact information can be found at: www.superfactory.com
  • 3. 3 © 2004 Superfactory™. All Rights Reserved. Outline  Fundamentals of layout  Process  Product  Fixed  Hybrid  Cellular Manufacturing  Characteristics  Implementing Cells  Part Families  Production Flow Analysis
  • 4. 4 © 2004 Superfactory™. All Rights Reserved. What is the Facility Layout Problem?  Concerned with arrangement of machines, cells, or departments.  Often computationally difficult.  A decision is both quantitative & qualitative.
  • 5. 5 © 2004 Superfactory™. All Rights Reserved. Why is the Layout Problem Difficult?  It has geometric and combinational aspects.  Jig-saw puzzle.  Difficult picture  No picture  No shapes  Goal: Minimize material handling costs.
  • 6. 6 © 2004 Superfactory™. All Rights Reserved. Effective Facility Layout  Minimize material handling costs  Utilize space efficiently & effectively  Utilize labor efficiently & effectively  Eliminate bottlenecks  Eliminate wasted or redundant movement  Incorporate safety & security measures
  • 7. 7 © 2004 Superfactory™. All Rights Reserved. Basic Layouts  There are three basic types of layouts:  Process  Product  Fixed-position  There are two hybrid types of layouts  Flexible and Mixed-Model manufacturing systems  Cellular
  • 8. 8 © 2004 Superfactory™. All Rights Reserved. Process Layout  Process layouts (functional layouts)  Definition – A layout that groups similar activities together in departments of work centers according to process or functions that they perform.
  • 9. 9 © 2004 Superfactory™. All Rights Reserved. Characteristics of Process layout  Goal – To minimize material handling cost  Product – Varied made to order  Demand – Fluctuates  Production volume – low (custom products)  Inventory – High in process - Low in finished goods  Storage Space – relatively large  Aisles – tend to be wide  Material handling – variable path (forklift)
  • 10. 10 © 2004 Superfactory™. All Rights Reserved. Characteristics  Layout decision – machine location based  Workers tend to be skilled at operating the equipment in their departments  Intermittent, job shop, batch production, mainly fabrication
  • 11. 11 © 2004 Superfactory™. All Rights Reserved. Process Layout Lathe Drill Grind Lathe Weld Assembly Drill Mill Warehouse Lathe Paint Lathe Weld Paint Mill Mill Mill Grind Assembly Warehouse
  • 12. 12 © 2004 Superfactory™. All Rights Reserved. Process-Oriented Layout  Department areas having similar processes located in close proximity  Design places departments with large flows of material or people together
  • 13. 13 © 2004 Superfactory™. All Rights Reserved. Process Layout - Advantages  Better utilization of machines  Fewer machines required  High degree of flexibility relative to equipment or manpower allocation for specific tasks  Comparatively low investment in machines is required  The diversity of the task offers a more interesting and satisfying occupation for the operator  Specialized supervision is possible
  • 14. 14 © 2004 Superfactory™. All Rights Reserved. Process Layout Characteristics  Advantages  Deep knowledge of the process  Common tooling and fixtures  Most Flexible -- can produce many different part types  Disadvantages  Spaghetti flow -- everything gets all tangled up  Lots of in-process materials  Hard to control inter-department activities  Can be difficult to automate
  • 15. 15 © 2004 Superfactory™. All Rights Reserved. Process Layout - Limitations  Since longer flow lines usually result, material handling is more expensive  Production planning and control systems are more involved  Total production time is usually longer  Comparatively large amounts of in-process inventory results  Space and capital are tied up by work-in-process  Because of the diversity of the jobs in specialized departments, higher grades of skill are required  Inefficient  Because jobs or customers do not flow through in an orderly fashion; backtracking is common.  Idling  Workers may experience more “idle time” if they are waiting around for more work to arrive from a different department.
  • 16. 16 © 2004 Superfactory™. All Rights Reserved. Impact of Interruptions on Flow Paths Lathe Drill Grind Lathe Drill Press Bend Drill Mill Drill Lathe Mill Mill Drill Mill Drill
  • 17. 17 © 2004 Superfactory™. All Rights Reserved. Designing Process Layouts  The main goal to keep in mind is to minimize material handling costs  Therefore the departments that incur the most interdepartmental movement should be located closest to one another  Two types of design layouts  Block diagramming  Relationship diagramming
  • 18. 18 © 2004 Superfactory™. All Rights Reserved. Block Diagramming  This refers to the movement of materials in existing or proposed facility  Information is usually provided with a from/to chart or load summary chart  This gives the average number of units loads moved between departments
  • 19. 19 © 2004 Superfactory™. All Rights Reserved. Block Diagramming  A unit load can be a single unit, a pallet of material a bin of material, or a crate of material  Material is constantly moving from location to location  The next step is to design the layout by calculating the composite movements between departments and rank them from most movement to least movement  Composite movement refers to the back-and-forth movement between each pair of departments  Finally, trial layouts are place on a gird that graphically represents the relative distances between departments.
  • 20. 20 © 2004 Superfactory™. All Rights Reserved. Relationship Diagramming  For situations in which quantitative date is hard to obtain it is more relevant to use a relationship diagramming technique  Richard Muther developed a format for displaying manger preferences for departmental locations, know as Muther’s grid  Muther’s diagram uses codes and letter to represent how close departments are to one another  The information from Muther’s diagram can be used to make a relationship diagram to evaluate a current layout or proposed layouts
  • 21. 21 © 2004 Superfactory™. All Rights Reserved. Computerized Layout Solutions  Several computer programs exist that assist in designing process layouts  The best known are CRAFT (Computerized Relative Allocation of Facilities Technique) and CORELAP (Computerized Relationship Layout Planning)  Basically the computer program is given layout date and then makes a recommendation
  • 22. 22 © 2004 Superfactory™. All Rights Reserved. Service Layouts  Most Service organizations use process layouts because of the variability in customer requests for service  Service organizations look to maximize profits per unit of display space, rather than minimize customer flow  The layout must be aesthetically pleasing we well as functional
  • 23. 23 © 2004 Superfactory™. All Rights Reserved. Process in Manufacturing firms  Process layouts require flexible material handling equipment (such as forklifts) which can follow multiple paths and carry large loads of in-process goods  All areas of the facility must have timely access to the material handling equipment
  • 24. 24 © 2004 Superfactory™. All Rights Reserved. The Product Layout  Definition  A facility layout that arranges activities in a line according to the sequence of operations that need to be performed to assemble a product, while minimizing material handling costs.
  • 25. 25 © 2004 Superfactory™. All Rights Reserved. History of the Product Layout  1895 - Frederick Winslow Taylor.  Work should be broken into individual tasks.  Those tasks can be shortened or eliminated.  Frank Gilbreth - Time study techniques.  Work combined led to maximum efficiency in industrial work.
  • 26. 26 © 2004 Superfactory™. All Rights Reserved. History  1909 - Henry Ford  Boosted recognition for Taylor and Gilbreth’s ideas.  Increased productivity on his Model T by pulling the car through the plant at a constant speed while workers added accumulated parts.  Production time decreased from 12 hours and 8 minutes to 1 hour and 33 minutes.
  • 27. 27 © 2004 Superfactory™. All Rights Reserved. History  In the 1920’s manufacturers moved away from assembly lines to gain flexibility in their products.  The Product Layout came back into style as a form called Flow Manufacturing emerged in the 1970’s.  The Product Layout is still popular today.
  • 28. 28 © 2004 Superfactory™. All Rights Reserved. Product Layouts  Most appropriate for continuous operations.  Used for products with high volume and steady demand.  Machines perform a singular, specialized task.  Machines are organized consecutively.
  • 29. 29 © 2004 Superfactory™. All Rights Reserved. Product Layout Lathe Drill Grind Lathe Drill Press Bend Drill Mill Drill Warehouse Assembly Lathe Drill
  • 30. 30 © 2004 Superfactory™. All Rights Reserved. Product Layout Shipping L L M D L M D G L M G G A A Receiving Part #1 Part #3 Part #2
  • 31. 31 © 2004 Superfactory™. All Rights Reserved. Product Requirements  Standardized product  High production volume  Stable production quantities  Uniform quality of raw materials & components
  • 32. 32 © 2004 Superfactory™. All Rights Reserved. Product-Oriented Layout - Assumptions  Volume is adequate for high equipment utilization  Product demand is stable enough to justify high investment in specialized equipment  Product is standardized or approaching a phase of its life cycle that justifies investment in specialized equipment  Supplies of raw materials and components are adequate and of uniform quality ensure they will work with specialized equipment
  • 33. 33 © 2004 Superfactory™. All Rights Reserved. Product-Oriented Layout Types Assembly Line • Assembles fabricated parts • Uses workstation • Repetitive process • Paced by tasks • Balanced by moving tasks Fabrication Line • Builds components • Uses series of machines • Repetitive process • Machine paced • Balanced by physical redesign
  • 34. 34 © 2004 Superfactory™. All Rights Reserved. Line Configuration  The flow of products is continuous along a line.  Linear pattern.  “L” pattern.  “U” shape.  Snake shape.  Shape determines workers flexibility.
  • 35. 35 © 2004 Superfactory™. All Rights Reserved. Product Layout - Advantages  Layout corresponds to the sequence of operations, smooth and logical flow lines result  Work from one process is fed directly into the next, small in-process inventories result  Total production time per unit is short  Machines are located as to minimize distances between consecutive operations, material handling is reduced  Little skill is usually required by operators at the production line; hence, training is simple, short and inexpensive  Simple production planning and control systems are possible  Less space is occupied by work in transit and for temporary storage  Lower variable cost per unit
  • 36. 36 © 2004 Superfactory™. All Rights Reserved. Product Layout - Advantages  Stable rate of output.  Work-in-process inventory is low.  Total production time/unit is reduced.  Space is effectively utilized.  Narrow aisles.  Labor pool is large.  Single skilled.
  • 37. 37 © 2004 Superfactory™. All Rights Reserved. Product Layout - Limitations  A breakdown of one machine may lead to complete stoppage of the line that follows that machine  Since the layout is determined by the product, a change in product design may require major alterations in the layout  The “pace” of production is determined by the slowest machine  Supervision is general  Comparatively high investment is required, as identical machines (a few not fully utilized) are sometimes distributed along the line  Lack of flexibility
  • 38. 38 © 2004 Superfactory™. All Rights Reserved. Product Layout - Disadvantages  If one machine fails the whole process stops.  Changes in product design can render the layout obsolete.  Bottlenecks govern the speed.  Large support staff required.  High fixed costs.
  • 39. 39 © 2004 Superfactory™. All Rights Reserved. Product Layouts - Now & Then  Traditional  Top priority: Line balancing.  Inventory buffers.  Planned by admin. staff.  “L” shaped lines.  Conveyor movement.  New Focus  Top priority: flexibility.  Preventive maintenance  Shop supervisor designs and adjusts.  “U” shaped lines.  Stations are close together.
  • 40. 40 © 2004 Superfactory™. All Rights Reserved. Designing Product Layouts  Main Objective: Arrange workers and machines in a line according to the operations that need to be performed.  It isn’t always that simple.  Line balancing.  Line balancing software:  COMSOAL - IBM  ASYBL - GE
  • 41. 41 © 2004 Superfactory™. All Rights Reserved. Line Balancing  Equalizes amount of work at each station.  Constraints in Line Balancing.  Precedence Requirements  The order in which operations need to take place.  Cycle Time  Maximum time a product can be at a station.  A guess and check process.
  • 42. 42 © 2004 Superfactory™. All Rights Reserved. Fixed-Position Layouts  The product remains stationary for the entire manufacturing cycle.  Equipment, workers, materials, and other resources are brought to the production site.
  • 43. 43 © 2004 Superfactory™. All Rights Reserved. Fixed-Position Layouts When is it used? Fixed-Position layouts are used in projects in which the product cannot be moved. It is typical of projects in which the product produced is:  too fragile  bulky  heavy to move
  • 44. 44 © 2004 Superfactory™. All Rights Reserved. Fixed-Position Layouts  Equipment  Low equipment utilization:  idle equipment at location  it will be needed again in a few days  Equipment is leased or subcontracted  it is used for limited periods of time  Workers  Highly skilled at performing special tasks  High wage rates  Cost breakdown for fixed-position layouts:  Fixed Cost:  relatively low (equipment may not be owned by the company)  Variable Cost  High (due to high labor rates and the cost of leasing and moving equipment. Characteristics of the process:
  • 45. 45 © 2004 Superfactory™. All Rights Reserved. Fixed-Position Layout - Advantages  Material movement is reduced  Promotes job enlargement by allowing individuals or teams the perform “whole job”  Continuity of operations and responsibility results from team  High flexibility; can accommodate changes in product design, product mix, and production volume  Independent of production centers allows scheduling to achieve minimum total production time
  • 46. 46 © 2004 Superfactory™. All Rights Reserved. Fixed-Position Layout - Limitations  Increased movement of personnel and equipment  Equipment duplication may occur  Higher skill requirements for personnel  General supervision required  Cumbersome and costly positioning of material and machinery  Low equipment utilization
  • 47. 47 © 2004 Superfactory™. All Rights Reserved. Factors Complicating a Fixed Position Layout  Limited space  Coordinating service providers in sequence, on time, on schedule, and with other activities occurring concurrently  Volume of materials changes often
  • 48. 48 © 2004 Superfactory™. All Rights Reserved. Fixed Position Layout Lathe Grind Drill Press Warehouse Paint Warehouse Assembly
  • 49. 49 © 2004 Superfactory™. All Rights Reserved. Hybrid Layouts  Flexible & Mixed-Model Manufacturing  High level of complexity  Mathematically intensive  Cellular Manufacturing
  • 50. 50 © 2004 Superfactory™. All Rights Reserved. Cellular Manufacturing “Cellular Manufacturing organizes the entire process for similar products into a group of team members, includes all the necessary equipment and is known as a "Cell". Merryman, Wes. Cellular Manufacturing
  • 51. 51 © 2004 Superfactory™. All Rights Reserved. Cellular Manufacturing “…The cells are arranged to easily facilitate all operations. Parts are handed off from operation to operation eliminating setups and unnecessary costs between operations.” Merryman, Wes. Cellular Manufacturing
  • 52. 52 © 2004 Superfactory™. All Rights Reserved. Introduction to Cellular Manufacturing • The cellular approach is to organize the entire manufacturing process for particular or similar products into one group of team members and machines known as a "Cell". • These "cells" are arranged in a U-shaped layout to easily facilitate a variety of operations. • Parts or assemblies move one at a time (or in small batch sizes). • The parts are handed off from operation to operation without opportunity to build up between operations.
  • 53. 53 © 2004 Superfactory™. All Rights Reserved. Introduction to Cellular Manufacturing • Fast setup and quick changeovers are essential to Cellular Manufacturing systems since production runs are shorter. • Setup reduction principles are used to achieve one piece flow and mixed model synchronization. • All cells concentrate on eliminating waste.
  • 54. 54 © 2004 Superfactory™. All Rights Reserved. Group Technology / Cellular Layout Lathe Drill Grind Lathe Drill Press Warehouse Assembly Lathe Drill
  • 55. 55 © 2004 Superfactory™. All Rights Reserved. Work Cells - Advantages  Increased machine utilization  Team attitude and job enlargement tend to occur  Compromise between product layout and process layout, with associated advantages  Supports the use of general purpose equipment  Shorter travel distances and smoother flow lines than for process layout
  • 56. 56 © 2004 Superfactory™. All Rights Reserved. Work Cells - Advantages  Reduced work-in-process inventory  Less floor space required  Reduced raw material and finished goods inventories required  Reduced direct labor costs  Heightened sense of employee participation  Increased utilization of equipment machinery  Reduced investment in machinery and equipment
  • 57. 57 © 2004 Superfactory™. All Rights Reserved. Work Cells - Limitations  General supervision is required  Higher skill levels required of employees than for product layout  Compromise between product and process layout, with associated limitations  Depends on balanced material flow through the cell; otherwise, buffers and work-in-process storage are required  Lower machine utilization than for process layout
  • 58. 58 © 2004 Superfactory™. All Rights Reserved. Empowered Employees in Cells • Goals and tracking charts are maintained and posted. • Problems are solved through daily cell meetings and problem solving teams. • The inventory management system is a KANBAN Demand Pull instead of a work order/kit picking system. • Cells are responsible for planning, scheduling and expediting directly with vendors. • They establish and maintain a KANBAN system with the vendors.
  • 59. 59 © 2004 Superfactory™. All Rights Reserved. Advanced Cellular Manufacturing  The cell operates like an independent business with total responsibility for quality, manufacturing and delivery of the product to the customer.  All cells have the resources within their organization to accomplish their mission.  The requirements are known and goals are established.  Cell members are flexible and work in teams to accomplish their goals including continuous improvement.
  • 60. 60 © 2004 Superfactory™. All Rights Reserved. Creating Cells  First, define the “cells” by the following criteria:  Processes required  Part numbers and attributes  Market segments / customers  Degree of automation  Good intuition  Careful study  Group Technology (GT)  Production Flow Analysis (PFA)
  • 61. 61 © 2004 Superfactory™. All Rights Reserved. Creating Cells  Team selection is crucial  Identify important skills needed such as teamwork and leadership skills  Create a process map  Develop a checklist for selecting members
  • 62. 62 © 2004 Superfactory™. All Rights Reserved. Part Family Formation  Various levels – macro and micro  Macro – entire factories (focused factories) can specialize in a particular type of part  Micro – families can be based on similarities in part geometry (group shafts, flat parts, gears, etc…), process requirements (castings, forgings, sheet metal parts, heat-treated parts, printed circuit boards)  How are these groupings determined?  Coding
  • 63. 63 © 2004 Superfactory™. All Rights Reserved. Finding Part Families  Visual Inspection of physical parts or photographs to identify similarities.  Coding and Classification of parts by examining design and/or manufacturing attributes.  OPITZ System  MICLASS System  Here a code is assigned to specific features of the part.  Is the part cylindrical or prismatic ?  Does it have threads?  Does it have through slots?  Does it require heat treatment?  This requires a large initial time investment in coding and classifying all parts.
  • 64. 64 © 2004 Superfactory™. All Rights Reserved. Finding Part Families  Production Flow Analysis : Since the parts in a part family have similar manufacturing processes, it is possible to identify similar parts by studying the route sheets.  Parts with similar routes can be grouped into families.
  • 65. 66 © 2004 Superfactory™. All Rights Reserved. Production Flow Analysis  PFA is a technique that uses Operation Routing Summaries as input. It clusters the parts that require the same processes. These parts can then be assembled into a part family. The processes can be grouped into a cell to minimize material handling requirements.
  • 66. 67 © 2004 Superfactory™. All Rights Reserved. PFA - Organizational View Production Flow Analysis consists of 5 different analyses: 1. Company Flow Analysis 2. Factory Flow Analysis 3. Group Analysis 4. Line Analysis 5. Tooling Analysis
  • 67. 68 © 2004 Superfactory™. All Rights Reserved. Company Flow Analysis  A Planning technique used for the division of large companies into factory components. It aims to simplify the flow of materials between factories.  Uses FROM-TO charts and frequency charts and a flow analysis (similar to the one discussed in slides 29 – 41).  Is not a decision making model, but presents data in a way that decisions can be made based on a company’s goal.
  • 68. 69 © 2004 Superfactory™. All Rights Reserved. Factory Flow Analysis  An attempt is made at this stage to find major groups of departments, and major families of components which can be completely processed in these departments.  The Goal is to change factories from process organization to product organization and to minimize interdepartmental material flow
  • 69. 70 © 2004 Superfactory™. All Rights Reserved. • Study and map the existing flow system • Identify the dominant material flows between shops (or buildings) • Determine the Process Route Number (PRN) for each part • Analyze the part by PRN. • Combine closely associated processes at departments that complete most of the parts they make • If parts are observed to backtrack then such flows are eliminated by minor redeployment of equipment Factory Flow Analysis - Methodology
  • 70. 71 © 2004 Superfactory™. All Rights Reserved. Group Analysis  The flows in each of the individual shops (identified by FFA) are analyzed.  Operation sequences of the parts that are being produced in a particular shop are analyzed to identify manufacturing cells.  Loads are calculated for each part family to obtain the equipment requirements for each cell
  • 71. 72 © 2004 Superfactory™. All Rights Reserved. Group Analysis  Essentially, while forming and rearranging the PFA matrix we were performing Group Analysis.  Those same algorithms are also employed in PFA activities other than Group Analysis (namely CFA, FFA etc..)  Choice of algorithm or technique that is best suited is, for the most part, a problem specific issue
  • 72. 73 © 2004 Superfactory™. All Rights Reserved. Line Analysis  A linear or U-layout is designed for the machines assigned to each cell.  The routings for each part assigned to the cell and the frequency of use of each routing are used to develop a cell for:  Efficient transport  Minimum material handling and travel by operators.
  • 73. 74 © 2004 Superfactory™. All Rights Reserved. Tooling Analysis  A Tooling Analysis helps to schedule the cell by identifying families of parts with similar operation sequences, tooling and setups.  It seeks to sequence parts on each machine to sequence all the machines in the cell to reduce setup times and batch sizes.  This increases available machine capacity on bottleneck work canters in the cell.
  • 74. 75 © 2004 Superfactory™. All Rights Reserved. PFA: Assumptions  Each component is equally important in terms of cost  Lot size & its associated cost are not directly related to grouping procedure  Routing is assumed to be optimal
  • 75. 76 © 2004 Superfactory™. All Rights Reserved.  Reduces flow distances  Better suited to JIT and “pull” manufacturing as the overall flow is much straighter  Simple and Easy to implement  Experience: Lots of Research and Background and support software PFA: Advantages
  • 76. 77 © 2004 Superfactory™. All Rights Reserved.  PFA is suitable mostly for small-sized applications, but it has difficulties coping with some large cell formation problems when the Machine-Part Matrix becomes more complex because of problem size PFA: Weakness