Chapter 1: Introduction to Manufacturing Facilities Design and Material

Handling

The Importance of Manufacturing Facilities Design and Material Handling

The selection of the location may be influenced by economic factors such as tax
incentives, low cost land, or relaxed environmental regulations.
Factors that may influence location strategy may include raw materials, energy,
human resources and lower labor costs.
Facilities design includes plant location, building design, plant layout, and material
handling systems.
Manufacturing facilities design is the organization of the companys physical
assets to promote the efficient use resources such as people, material, equipment,
and energy.
Building design is an architectural job, thus the architectural firms expertise in
building design and construction techniques is extremely important to the facilities
design project.
Layout is the physical arrangement of production machines and equipment,
workstations, people, location of materials of all kinds and stages, and material
handling equipment.
Material handling is simply defined as moving material. Material handling
accounts for about 50% of all industrial injuries and from 40 to 80% of all operating
costs.
Facilities planners ask the six questions ( why, who, what, where, when, and how)
about everything that can happen to a part flowing through a manufacturing facility
(operation, transportation, inspection, storage, and delay) to eliminate steps,
combine steps, change sequence of steps or simplify.
The five Ss principles are:
1. Sifting (organization). Keeping the minimum of what is required will save
space, inventory, and money.
2. Sorting (arrangement). Everything has a specific place, and everything in
its place is a visual management philosophy that affects facilities layout.
3. Sweeping (cleaning). A clean plant is a result of a facility layout that has
been thought to provide room for everything.
4. Spic and Span (hygiene). A safe plant is a result of good layout planning.
5. Strict (discipline). Following the procedures and standardized methods
and making them a habit will keep the plant operating efficiently and safely.
The five whys will ensure that the solution to a problem is not a symptom of the
problem, but rather, the base cause (page 4)






Lean Thinking and Lean Manufacturing

Lean manufacturing is a concept whereby all production people work together to
eliminate waste.
Muda (waste) is defined as any expense that does not help produce value.
There are 8 kinds of muda: overproduction, waiting, transportation, processing,
inventory, motion, rework, and poor people utilization.
Kaizen is the Japanese word for continuous improvement. Every person in the
company is encouraged to search for new ideas and opportunities to further
improve the organization and its processes including reducing waste.
Kanban is a signal board that communicates the need for material and visually tells
the operator to produce another unit or quantity. With pull systems parts are
produced only when the need arises and they have been requested or there is a pull
from production operations.
Value stream mapping (VSM) is the process of assessment of each component or
the step of production to determine the extent to which it contributes to operational
efficiency or product quality. VSM can reduce or eliminate excessive material
handling, eliminate wasted space, create a better control of all types of inventory
and streamline various production steps.

The Goals of Manufacturing Facilities Design and Material Handling

A mission statement communicates the primary goals and the culture of the
organization to the facilities planner.
1. Minimize unit and project costs: It does not mean buying the cheapest machine,
because the most expensive machine may produce the lowest unit cost.
2. Optimize quality: Quality and cost are the two primary competitive fronts. You
must constantly balance cost and quality.
3. Promoting the effective use of people, equipment, space, and energy:
Providing convenient location for services like restrooms, locker rooms, cafeterias,
tool cribs and any other service will increase productivity.
4. Provide for the convenience, safety, and comfort of our employees: Drinking
fountains, parking lot design and location, employee entrances, as well as restrooms
and cafeterias must be convenient to all employees.
5. Control project costs: Budgeting and then living within the budget are two
things that successful managers and engineers learn to do early in their careers.
6. Achieve the production start date: For seasonable products, if you miss the
start date, you miss the whole season. Schedules must be met.
7. Build flexibility into the plan: Design buildings that will be able to support a
wide variety of uses.
8. Reduce or eliminate excessive inventory: Inventory costs about 35% to hold.
Minimize all forms (raw material, work in progress, finished goods) of inventory.
9. Achieve miscellaneous goals: Like using plug-in plug-out equipment to allow
operators to move equipment easily for flexibility. Goals should be measurable and
achievable.

The Manufacturing Facilities Design Procedure:

Resist jumping into the layout phase before collecting and analyzing data:
1. Determine what will be produced: for example a toolbox.
2. Determine how many will be made per unit of time: for example 1,500 per
8 hour shift.
3. Determine what parts will be made or purchased complete: some
companies but all parts, and they are called assembly plants.
4. Determine how each part will be fabricated. This is called process planning
and is usually done by a manufacturing engineer.
5. Determine he sequence of assembly: This is called assembly line balancing.
6. Set time standards for each operation. It is impossible to design a plant
layout without time standards.
7. Determine the plant rate (takt time). This is how fast the facility needs to
produce. For example to make 1,500 units in 8 hours, you have to make a
part every .32 minute (3 parts per minute).
8. Determine the number of machines needed. For example if a machine has a
time standard of .75 minutes per part, .75/.32 = 2.34 machines. So you will
need 3 machines.
9. Balance assembly lines or work cells. Try to give everyone as close to the
same amount of work as possible.
10. Study material flow patterns to establish the best (shortest distance
through the facility) flow possible.
11. Determine activity relationships. How close do departments need to be to
each other to minimize people and material movement.
12. Lay out each workstation. These layouts will lead to department layouts,
and then to the facility layout.
13. Identify the need for personal plant and services, and provide the space
needed.
14. Identify office needs and layout as needed.
15. Develop total space requirements from the above information.
16. Select material handling equipment.
17. Allocate the area according to the space needed and the activity
relationships established in 11 above.
18. Develop a plot plan and the building shape. How will the facility fit on the
property.
19. Construct a master plan. This is the manufacturing facility design the
last page of the project and the result of the data collected and the decisions
made.
20. Seek input and adjust. Ask your peers to see if they can punch holes in
your design before you present it to management for approval.
21. Seek approvals, take advice, and change as needed.
22. Install the layout.
23. Start production.
24. Adjust as needed and finalize the project report and budget performance.

Types and Sources of Manufacturing Facilities Design Projects

1. New facility: There are fewer restrictions because you do not have to be
concerned with old facilities.
2. New product: Some common equipment may be shared with an old product. A
corner of the plant is set aside for a new product.
3. Design changes: Layout may be affected by these changes.
4. Cost reduction: May find a better layout that will produce more products with
less worker effort.
5. Retrofit: Constraints include existing walls, floor pits, low ceilings, and any other
permanent fixtures that may pose an obstacle to an efficient material flow.
If designers study the flow, they can improve it by changing the facilities layout.

Computers and Simulation in Manufacturing Facilities Design


Simulation can be used to predict the behavior of a manufacturing or service
system by actually tracking the movements and interaction of the system
components and aiding in optimizing such systems.
There are a number of user friendly advanced simulation packages available for
simulating the working of a factory, inventory, warehousing, or logistics.
The simulation software generates detailed statistics describing the behavior of the
system under study.

ISO 9000 and Facilities Planning

A large number of corporations demand their vendors be registered under ISO
9000 or other quality standards.
Management must continually monitor operations for improvement opportunities.
All procedures and processes must tie back to achieving customer satisfaction.
Systems should be developed to identify, document, evaluate, and segregate
nonconforming occurrences.














Summary

Facilities design includes plant location, building design, plant layout, and material
handling systems.
Manufacturing facilities design is the organization of the companys physical
assets to promote the efficient use resources such as people, material, equipment,
and energy.
Material handling is simply defined as moving material. Material handling
accounts for about 50% of all industrial injuries and from 40 to 80% of all operating
costs.
Facilities planners ask the six questions ( why, who, what, where, when, and how)
about everything that can happen to a part flowing through a manufacturing facility
(operation, transportation, inspection, storage, and delay) to eliminate steps,
combine steps, change sequence of steps or simplify.
Muda (waste) is defined as any expense that does not help produce value. There
are 8 kinds of muda: overproduction, waiting, transportation, processing,
inventory, motion, rework, and poor people utilization.
Kaizen is the Japanese word for continuous improvement. Every person in the
company is encouraged to search for new ideas and opportunities to further
improve the organization and its processes including reducing waste.
Value stream mapping (VSM) is the process of assessment of each component or
the step of production to determine the extent to which it contributes to operational
efficiency or product quality. VSM can reduce or eliminate excessive material
handling, eliminate wasted space, create a better control of all types of inventory
and streamline various production steps.
A mission statement communicates the primary goals and the culture of the
organization to the facilities planner.
Resist jumping into the layout phase before collecting and analyzing data (25 steps).
If designers study the flow, they can improve it by changing the facilities layout.
Simulation can be used to predict the behavior of a manufacturing or service
system by actually tracking the movements and interaction of the system
components and aiding in optimizing such systems.
A large number of corporations demand their vendors be registered under ISO
9000 or other quality standards.












Chapter 2: Sources of Information for Manufacturing Facilities Design


The Marketing Department:

The marketing department provides a research function that analyzes what the
worlds consumers want and need.
The selling price has a direct influence on the number of units the company sells.
The lower the price is, the more customers will choose the product. Volume also
comes down to how many units the company wants to build per day.
If 250,000 units will be needed, if the plant works 250 days a year (50 weeks times 5
days per week) then 1,000 units will be needed every day.
The number of units per day is a very important number for the facility designer
because it determines the number of machines and people for which he needs to
provide space.

Determining Takt Time or Plant Rate

The rate of production is called takt time (German word) or production rate.
For example, suppose you need to produce 1,000 units in a 8 hour shift.
Suppose the plant is operating at 90% efficiency.
Thirty minutes for lunch, 10 minutes for break, and 8 minutes for team
meeting every shift.
8 hour shift X 60 minutes = 480 minutes 30 min for lunch 10 min for
breaks 8 min for meetings = 432 min effective time x 90% efficiency = 389
min.
Takt time or R = 389 min / 1000 units = .389 min per unit.
Units per minute = 1 unit/ ,389 = 2.57 units per minute

Calculating Scrap and Rework Rates

Scrap and rework result in an inefficient and wasteful use of the facilities and
resources.
In determining the plant rate you must include scrap and rework rates in your
calculation.
For the previous example if you had 3 percent scrap, for 1000 good parts you
would need to produce: 1000 / (1-.03) = 1,031 units.
The plant rate is used to calculate the number of machines and workstations, the
conveyor speed, and the number of employees required for the facilities design.







The Product Design Department

The product design department is the source for blueprints, bill of materials,
assembly drawings, and model shop examples.
There will be drawings for each individual part of the product.
These drawings tell you the size, shape, material, tolerances, and finish.
The parts list or bill of materials lists all the parts that make up a finished product.
The list includes part #s, part names, the quantity of each part, and may include
make or buy decisions.

The Intended Bill of Material

The bill of material provides a hierarchical structure of the product by identifying
each assembly, subassembly, and the parts of each subassembly.
The highest level of the product, or the finished assembly, appears on the top of the
list and is given the number zero (fig 2-5, page 36).
Under this are listed the major sub assemblies and each is assigned a level of one
(.1). The period before the numeral 1 indents the major sub assembly from the main
assembly.
Under each subassembly, the required components are listed and numbered level
two (..2). The purpose of the periods before each level number is to offset or indent
each level in order to enhance readability.
The parts that are purchased complete are called buyouts and can be fabricated
cheaper by someone else.
Companies that purchase every part from outside are called assembly plants.

Management Policy Information

Management refers to upper level employees who are responsible for the financial
performance of a company.
Inventory policy: The companys inventory policy could be as simple as provide
space for one month supply of raw material, work in process, and finished goods.
JIT and Kanban philosophies reduce inventory and therefore space, facilities, and
cost.
Lean Thinking and Muda as Part of Management Philosophy: Muda means
waste. Mistakes that require rectification and rework is a good indication of muda.
Investment Policy: Facilities design projects might be approved with a 33% ROI.
33% is a 3 year pay back period.
Startup Schedule: All the work needed to accomplish the task will be backdated
from the production start date (page 42).
Make or Buy Decisions: The cheapest way to provide the part to the assembly
department is the best source.
Organizational Relationships: The number of employees determines the size of
many areas such as cafeterias, restrooms, office space, and medical facilities.
Feasibility Studies: Out of many feasibility studies only a small number of projects
(1 in 4) are typically approved.
Summary

The marketing department provides a research function that analyzes what the
worlds consumers want and need.
The number of units per day is a very important number for the facility designer
because it determines the number of machines and people for which he needs to
provide space.
The rate of production is called takt time or production rate.
Scrap and rework result in an inefficient and wasteful use of the facilities and
resources.
The plant rate is used to calculate the number of machines and workstations, the
conveyor speed, and the number of employees required for the facilities design.
The product design department is the source for blueprints, bill of materials,
assembly drawings, and model shop examples.
The bill of material provides a hierarchical structure of the product by identifying
each assembly, subassembly, and the parts of each subassembly.
The parts that are purchased complete are called buyouts and can be fabricated
cheaper by someone else.
Companies that purchase every part from outside are called assembly plants.
Management refers to upper level employees who are responsible for the financial
performance of a company.
Feasibility Studies: Out of many feasibility studies only a small number of projects
(1 in 4) are typically approved.























Chapter 3: Time Study

Time Standards:

A time standard is defined as the time required to produce a product at a
workstation with the following three conditions: (1) a qualified, well trained
operator, (2) working at a normal pace, and (3) doing a specific task.
Experience is usually what makes a qualified well trained operator, and time on
the job is the best indicator of experience.
Normal pace is the pace at which a trained operator, under normal conditions
performs a task with a normal level of effort.
A specific task is a detailed description of what must be accomplished.

The Importance and Uses of Time Study:

An operation that is not working toward time standards typically works 60 % of the
time.
Those working with time standards work at 85% of normal performance.
Industrial plants on incentive pay plans have an average performance of 120%.

How Many Machines Do We Need?

The answer depends on two questions:
1. How many pieces need to be manufactured per shift?
2. How much time does it take to make one part (time standard)?
If the time standard is .400 minute per unit, and the plant rate is .161
minute per unit (see pages 55, 56) then you need .400/.161 = 2.48
machines = 3 machines (always round up).

How Many People Should We Hire?

See the operations chart in figure 3-3, page 57.
In the operation of casting the handle, the 05 indicates the operation number (first
operation of each part), the 500 is the pieces per hour standard, and the 2.0 is the
hours required to produce a 1,000 pieces.
At 500 pieces per hour it would take 2 hours to make 1,000 pieces.
If the efficiency is 75 % then we need 2 hours per 1,000 pieces / 75% = 2.67 hours
for 1,000 pieces.
# of hours / 8 hours per employee = # of employees needed.

How Much will our Product Cost?

Product costs may include the following:
Manufacturing costs (50%): Direct labor (8%), direct materials (25%), overhead
(17%).
Front end costs (50%): Sales and distribution costs (15%), advertising (5%),
administrative overhead (20%), engineering (3%), profit (7%).
Direct labor cost is the most difficult component of product cost to estimate.
Time standards must be set prior to any equipment purchase or material
availability. Time standards are set using predetermined time standards or
standard data from blueprints and workstation sketches.
Material cost is estimated by calling vendors for a bid price.
Overhead costs are all expenses of running a factory, except direct labor and direct
material.

How Much Work Can We Handle with the Equipment and People we have?

One scheduling philosophy is that operating departments are compared to buckets
of time.
The size of the bucket is the number of hours that each department can produce in a
24 hour day (see example on page 61).
Inventory is a huge cost in manufacturing, so knowledge of time standards will
reduce inventory requirements, which will reduce cost.

How Do We Balance the Work Cells?

The objective of assembly line balancing is to give each operator as close to the same
amount of work as possible.
If a person has extra time, he could be given some work from a busier workstation.
There will always be a workstation or cell that has more work than others. This
station is defined as the 100 % loaded station, or bottleneck station, and will limit
the output of the whole plant.
If you have 200 people on an assembly line and only one 100% station, you can save
the equivalent of 2 people by reducing the 100% station by just 1 %. You can use
this multiplier to help justify spending large sums of money to make small changes.

How Do We Measure Productivity?

Productivity is measured as output divided by input.
For example:
output = 1,000 units per day / Input = 50 people @ 8 hours per day
= 1000 / 400 = 2.5 units per work hour.
A performance control system will improve performance by an average of 42
percent over performance with no control system.
Companies without performance control system typically operate at 60 % of
standard. Companies with performance control system typically operate at 85 % of
standard.
Productivity improvement is accomplished by:
1. Identifying non productive time and eliminating it.
2. Identifying poorly maintained equipment and fixing it.
3. Identifying causes for downtime and eliminating them.
4. planning ahead for the next job.

How Can We Pay Our People for Outstanding Performance?

Every supervisor knows whom to count on to get the job done.
Stage 1: Plants with no standards operate at 60% performance.
Stage 2: Plants with standards and performance control systems operate at 85%
performance.
Stage 3: Plants with incentive systems operate at 120 % performance.
A National Science Foundation study found that when workers pay was tied to
their efforts, productivity improved, cost was reduced, workers pay increased, and
workers morale improved.

How Can We Select the Best Method or Evaluate Cost Reduction Ideas?

A basic rule of production management is , All expenses must be cost justified.
A basic rule of life is, Everything changes.
Planners must keep improving or become obsolete.
The return on investment (ROI) is the amount of return divided by the investment.
See example on pages 64 and 65.

How do we Develop a Personnel Budget

Budgeting is one of the most important management tools.
Budgeting is a part of the cost estimating process.
Labor is only one part of the budget, but is one of the most difficult to estimate and
control.
Without time standards it would be a very expensive guess.

Techniques of Time Study

Predetermined time standard system (PTSS) methods of time measurement
(MTM) must be used if you are building a new plant.
Once a machine or workstation has been operational for a while, the stopwatch
technique is used.
Other methods are work sampling, standard data, and expert opinion standard and
historical data.

Predetermined Time Standards System

The technologist would design a workstation for each step of the new product-
manufacturing plan, develop a motion pattern, measure each motion and assign a
time value.
The total of these time values would be the time standard.
This time standard would be used to determine the equipment, space, and people
needs of the new product and its selling price.
Stopwatch Time Study

Stopwatch time study is the method that most manufacturing employees think of
when talking about time standards.
Time study is defined as the process of determining the time required by a skilled,
well-trained operator working at a normal pace doing a specific task.
Digital watches and computers are much more accurate and many have memory
functions that improve recording data.

Time Study Procedure & Step-by-Step Form

The time study procedure has been reduced to 10 steps (fig 3-7, page 72):
1. Select the job to study: Requests for time study can come from many
directions unions, supervisors, new jobs, new products, new machinery,
and job changes. The person to be time studied should be a qualified, well-
trained operator.
2. Collect the information about the job: Operation description, & drawing
blueprint (parts description & material specification).
3. Divide the job into elements: Time study elements should be as small as
possible.
4. Do the actual time study: Step-by-step recording of time for each element.
Continuous reading (R) or elemental (E) where watch is reset after each
reading.
5. Extend the time study: For continuous time study subtract the beginning
time from end time to give elemental time.
6. Determine the number of cycles to be timed: As a rule of thumb, 20 to 25
observations should provide sufficient accuracy.
7. Rate, level, and normalize the operators performance: Technologists
opinion of operator performance.
8. Apply allowances: Allowances make the time standard practical.
9. Check for logic: Check normal time for one unit, and see if it is practical.
10. Publish the time standard: Placed on operations sheet, production route
sheet, or computer to communicate time standard to everyone.

Rating, Leveling, and Normalizing

Rating the operator includes 4 factors: skill, consistency, working conditions, and
effort (which is most important).
Time study only people that are skilled. If an operator shows lack of skill, the
technologist should find someone else to time study.
Operators are consistent when they run the elements of the job in the same time.
If the employees are asked to work in hot, cold, dusty, dirty, noisy environments,
their performance will suffer.
Effort is measured based on the normal operator working at 100 percent defined as
walking 3 miles per hour.

Allowances

Allowances are extra time added to normal time to make the time standard practical
and attainable.
Allowances fall into 3 categories: personal, fatigue, and delay.
Personal allowance is the time that is allowed for personal activities such as: talking
to friends, going to the bathroom, getting a drink, or any other operator controlled
reason for not working. An appropriate amount of time has been defined as about
5% of the workday or 24 minutes per day.
Fatigue allowance time is given to employees in the form of work breaks (coffee
breaks). A 5% fatigue allowance is given for every 10 pound increase in exertion
required of the employee. If an employee has to pick up a 50 pound part, fatigue
allowance is 5 x 5 = 25% allowance.
Delay allowance are unavoidable because they are out of the operators control.
Personal, fatigue and delay allowances are added together, and the total allowance
is added to the normal time. Normal time + allowance = standard time.

Methods of Applying Allowances

Method 1: 18.5 hours per 1000
This method is based on a constant allowance of 10 percent.
Method 2: Constant Allowance added to Total Normal Time
This method is used in this text and is the most common used in industry. An
explanation of what makes up the allowance must be included (page 87).
Method 3: Elemental Allowances Technique
The theory behind this technique is that each element of a job can have different
allowances (page 88).
Method 4: The PF&D Elemental Allowance Technique
The personal fatigue and delay (PD&F) method shows exactly how the allowance
was developed (page 88). It is very descriptive, but the cost is too high for most
companies.

Work Sampling

Work sampling is the same scientific process used in Nielsen ratings, Gallup polls,
attitude surveys, and federal unemployment statistics.
You could walk through a plant of 250 people one time and count people who are
working and those who are not working and calculate the performance of that plant
within +/- 10%.
Consultants expect 60% performance in plants without standards and 70 to 75% in
plants with better management.
Ten percent extra time for personal time, fatigue, and delay is considered normal




Standard Data

Machines like welders have simple formulas, such as 12 inches per minute.
The machine manufacturers are a good source of standard data.
Metal cutting machines are examples of the need for and use of formulas. Feeds and
speeds can be looked up in the Machinery Handbook and substitute the information
into 3 simple formulas to determine the time standard.

Time Standards for Manufacturing Facilities Design

Time standards are used for 5 main purposes in facilities design:
1. Determining the number of workstations and machines.
2. Determining the number of people.
3. Determining conveyor line speeds.
4. Balancing assembly and pack out lines.
5. Loading work cells.






























Summary

A time standard is defined as the time required to produce a product at a
workstation with the following three conditions: (1) a qualified, well trained
operator, (2) working at a normal pace, and (3) doing a specific task.
How many machines do we need? The answer depends on two questions: 1. How
many pieces need to be manufactured per shift? 2. How much time does it take to
make one part (time standard)?
How many people should we hire? At 500 pieces per hour it would take 2 hours to
make 1,000 pieces. If the efficiency is 75 % then we need 2 hours per 1,000 pieces /
75% = 2.67 hours for 1,000 pieces. # of hours / 8 hours per employee = # of
employees needed.
Product costs may include the following: Manufacturing costs (50%): Direct
labor (8%), direct materials (25%), overhead (17%). Front end costs (50%): Sales
and distribution costs (15%), advertising (5%), administrative overhead (20%),
engineering (3%), profit (7%).
Inventory is a huge cost in manufacturing, so knowledge of time standards will
reduce inventory requirements, which will reduce cost.
There will always be a workstation or cell that has more work than others. This
station is defined as the 100 % loaded station, or bottleneck station, and will limit
the output of the whole plant.
Productivity is measured as output divided by input. For example: output = 1,000
units per day / Input = 50 people @ 8 hours per day = 1000 / 400 = 2.5 units per
work hour.
Productivity improvement is accomplished by: 1. Identifying non productive time
and eliminating it. 2. Identifying poorly maintained equipment and fixing it. 3.
Identifying causes for downtime and eliminating them. 4. planning ahead for the
next job.
A National Science Foundation study found that when workers pay was tied to
their efforts, productivity improved, cost was reduced, workers pay increased, and
workers morale improved.
A basic rule of production management is , All expenses must be cost justified.
Budgeting is one of the most important management tools.
Rating the operator includes 4 factors: skill, consistency, working conditions, and
effort (which is most important).
Allowances fall into 3 categories: personal, fatigue, and delay.










Chapter 4: Process Design

Introduction:

The process designer determines how the products and all its components will be
made. It would include the following:
1. The sequence of operations to manufacture every part in the product.
2. The needed machinery, equipment, tools, fixtures, and so on.
3. The sequence of operations in assembly and packaging.
4. The time standard for each element of work.
5. The determination of conveyor speeds for cells, assembly and pack out
lines, and paint and other finishing systems.
6. The balance of workloads of assembly and pack out lines.
Load work cells.
8. The development of workstation drawing for each operation using the
principles of motion economy and ergonomics.

Fabrication: Making the Individual Parts

The sequence of steps required to produce (manufacture) a single part is referred to
as routing.
The form used to describe this routing is called a route sheet.
A route sheet is required for each individual fabricated part of the product.
The route sheet lists the operations required to make that part in the required
sequence (fig 4-1,2 page 98).
A copy of the route sheet would be issued by the production and inventory control
department showing the order quantity.
This order would then be given to the stores department where the raw material
would be pulled and transported to the first operation (according to the route
sheet).
The route sheet would accompany the material from operation to operation telling
the operator what to do.
The route sheet ends with the last operation prior to being assembled with other
parts.

The Number of Machines Needed

The questions of how many machines you should buy can be answered only when
you know:
1. How many finished units are needed per day.
2. Which machines run what parts.
3. What is the time standard for each operation.
The marketing department decides how many products to produce (manufacture)
per day.
Once all the machine requirements for each operation have been calculated, total
similar machine requirements and round up recommending the purchase of enough
machines (fig 4-4, page 102).
This information on the number of machines required will be used later to
determine the number of square feet of floor space needed in the fabrication
department.

Work Cell Load Chart

Group technology takes advantage of similarity in parts or features in a group or
family of parts so that these parts can be processed as a group.
A work cell is a collection of equipment required to make a single part or a family of
parts with similar characteristics.
This equipment is placed in a circle around an operator or operators (fig 4-5, page
103).
The work cell concept considers operator utilization to be more important than
machine utilization.
Work cell load charts list the operators time, machine time, and walking time
required to run a work cell to produce one part per cycle using many machines (fig
4-6, 7 page105, 106).
The work cell load charts show the total cycle time, operator utilization, and
machine utilization.

Step-By-Step Procedure for Preparing a Work Cell Load Chart

1. Operation No: This is a numerical sequence of steps like 1, 3, 5, 7. This will allow
the insertion of new operations without having to renumber everything.
2. Operation Description: This will include machine names and operations being
performed.
3. Manual: The time it takes the operator to load, unload, inspect and do anything
else the operator is supposed to do.
4. Machine: This machine time is calculated using feed and speed formulas.
5. Walk: The time it takes the operator to move form one machine or operation to
the next. The time standard is .005 minute per foot.
6. Operation accumulation time graph (fig 4-6, page 105): The time data are plotted
on the chart using 3 standard symbols: solid line for manual or operator time,
dotted line for machine time, and zigzag line for walk time to next operation.
With analysis and imagination, improvements can be attained.








Assembly and Packout Process Analysis

The Assembly Chart (fig 4-8, page 108): The assembly chart shows the sequence
of operations in putting together the product. Time standards are required to decide
which sequence is best. The process is known as assembly line balancing.
Time Standards for Every Task (fig 4-9, page 108): The task should be as small as
possible, so that the layout designer has the flexibility of giving the task to several
different assemblers.
Plant Rate and Conveyor Speed: Conveyor speed is dependent on the number of
units needed per minute. Conveyor belt speed is recorded in feet per minute. The
size of the part, plus the space between parts (measured in feet) times the number
of parts needed in one minute equals feet per minute (see example on page 109).

Assembly Line Balancing

The objective of assembly line balancing is to give each operator as close to the
same amount of work as possible.
In an assembly line mode, the operations are slowed to the rate of the slowest
activity.
Packout work is considered the same as assembly work as far as assembly line
balancing is concerned.
Many other jobs may be performed on or near the assembly line, but they are
considered as subassemblies. Their time standards stand on their own merit.

Step-By-Step Procedure for Completing the Assembly Line Balance Form

The assembly line balancing form (fig 4-14, page 116) includes the following:
1. Product No.: The product drawing or product part number.
2. Date: The completion date of the development of this solution.
3. By I.E.: The name of the industrial engineer doing the assembly line
balance.
4. Product Description: The name of the product being assembled.
5. Number of Units Required per Shift: Given by the sales department.
6. Takt time: The plant rate (R value). Existing products have 85% efficiency.
New products average 70% efficiency during the first year.
7. No.: This is the sequential operation number.
8. Operation/Description: A few well chosen words can communicate what
is being done at this workstation.
9. Takt Time: The takt time is calculated for each operation.
10. Cycle Time: The cycle time is the time standard for a job.
11. No. of Stations: The number of stations is calculated by dividing the takt
time into the cycle time and rounding up.
12. Average Cycle Time: The average cycle time is found by dividing the
cycle time by the number of workstations. It is the speed at which the
workstation produces parts.
13. % Load: The % load tells how busy each workstation is compared to the
busiest workstation.
14. Hrs./1000 Line Balance: The hours per unit can be calculated by
dividing the average cycle time by by 60 minutes per hour.
15. Pcs./Hr. Line Balance: Divide the hours per unit into 1.
16. Total Hours per Unit: Add the number of hours from all the operations.
17. Average Hourly Wage Rate: This would come from the payroll
department.
18. Labor Cost per Unit: The lower the cost, the better the line balance.
19. Total Cycle Time: Tells the exact work content of the whole assembly.

Calculating the Efficiency of the Assembly

Remember not all stations are performing at their maximum capacity.
A operator can only work as fast as the slowest member of the team.
Line efficiency = (sum of 1 cycle time/ total cycle time) * 100

Use of Computer Simulation

Computer simulation and modeling are powerful tools in designing work cells
and aiding with balancing lines and work cell loads.
Computer simulation packages such as ProModel (fig 4-15, page 120) allow the
designer to play with various scenarios in order to optimize the cell.

Layout Orientation

Mass production is product oriented and follows a fixed path through the plant.
The job shop orientation layout is process oriented (built around machine centers).
A work cell is a group of machines dedicated to making one complicated part. One
or two operators may run 6 to 10 machines.
















Summary

The process designer determines how the products and all its components will be
made.
The sequence of steps required to produce (manufacture) a single part is referred to
as routing.
The route sheet lists the operations required to make that part in the required
sequence.
The questions of how many machines you should buy can be answered only when
you know:
1. How many finished units are needed per day.
2. Which machines run what parts.
3. What is the time standard for each operation.
A work cell is a collection of equipment required to make a single part or a family of
parts with similar characteristics.
The assembly chart shows the sequence of operations in putting together the
product.
The objective of assembly line balancing is to give each operator as close to the
same amount of work as possible.
Computer simulation and modeling are powerful tools in designing work cells
and aiding with balancing lines and work cell loads.
Mass production is product oriented and follows a fixed path through the plant.
The job shop orientation layout is process oriented (built around machine centers).
A work cell is a group of machines dedicated to making one complicated part. One
or two operators may run 6 to 10 machines.





















Chapter 5: Flow Analysis Techniques

Introduction:

Flow analysis considers the path that every part takes through the plant and tries
to minimize:
1. distance travelled (measured in feet)
2. backtracking
3. cross traffic and
4. cost of production.
Flow analysis will assist the manufacturing facilities designer in the selection of the
most effective arrangement of machines, facilities, workstations and departments.
When designing the flow pattern, keep in mind that the employee walking time is a
nonproductive time.

Fabrication of Individual Parts

To establish the best arrangement of equipment, facilities designers use four
techniques:
1. String Diagram: In a string diagram, circles represent the equipment and
the lines between circles indicate flow (fig 5-3, page 140). If the flow is
backwards, the flow line is drawn under the circles. If there are many lines
between two circles, the circles must be kept close to each other.
2. Multicolumn Process Chart: shows the flow of each part right next to but
separate from each other (fig 5-5, page 142).
3. From-To Chart: Designers can develop an efficiency that considers the
importance of the parts (fig 5-9, page 145). Up until now, we have considered
each part as equal in importance. Minimizing the total cost of production is
the ultimate goal of flow analysis.
4. Process Chart: The process chart is used for just one part (fig 5-12, page
148). Symbols are used to describe what happens (page 146). Process
charting lends itself to standard forms.

Step-by-Step Description for the Description for the Process Chart

The step-by-step procedure accompanies fig 5-12, page 148:
1. Present Method or Proposed Method: A good practice is to record the present
method so that the proposed improved method can be compared.
2. Date_Page_of_: Always date your work. Page numbers are important on big jobs.
3. Part Description: Everything else would be useless if you did not record the part
number. The part description also includes the name and specification of the part.
4. Operation Description: Limits of the study.
5. Summary: For the proposed solution. Cost reduction information.
6. Analysis: Why, what, where, when, how, and who if you do not have a good
reason for a step, you can eliminate it and save 100% of the cost. Combine steps to
spread the cost. Improve flow to save on travel.
7. Flow Diagram Attached (Important): Process charting is used in conjunction
with flow diagramming.
8. Details of Process: One chart can be used for 42 steps (front and back). Each step
is independent and stands alone.
9. Method: How the material was transported fork truck, by hand how material
is stored can also be placed here.
10. Symbols: The analyst should shade the proper symbol to indicate what this step
is.
11. Distance in feet: Used with transportation symbol. Sum of this column is
distance travelled.
12. Quantity: Operation how many pieces per hour were produced.
Transportation how many pieces were moved at a time, etc.
13. Time in hours per unit: This step is for labor cost. Cost of storage and delay will
be counted in inventory carrying cost. This column is for operations, transportation,
and inspection.
14. Cost per Unit: Hours per unit multiplied by the labor rate per hour equals cost
per unit. The cost per unit is the backbone of the processing chart.
15. Time/Cost Calculations: This space is to record the formulas developed to
determine costs.

Flow Diagrams

Flow diagrams show the path traveled by each part from receiving to stores to
fabrication of each part to subassembly to final assembly to pack out to warehousing
to shipping.
These paths are drawn on a layout of the plant (fig 5-13, 5-14 pages 152, 153).
The flow diagram will point out problems with such factors as cross traffic,
backtracking, and distance travelled.
Cross Traffic: is where flow lines cross. Cross traffic is undesirable because of
congestion and safety considerations.
Backtracking: Backtracking costs 3 times as much as flowing correctly.
Distance Traveled: The less distance traveled the better. The sequence of steps
should be changed to meet the layout if possible because that requires only a
paperwork change. Moving equipment may be necessary.

Step-by-Step Procedure for Developing a Flow Diagram

1. The flow diagram starts with an existing or proposed scaled layout.
2. From the route sheet, each step in the fabrication of each part is plotted and
connected with a line, and color codes or other methods of distinguishing between
parts are used.
3. At the assembly line, all flow lines join together and travel to pack out, warehouse,
and shipping. A well thought out flow diagram will be the best technique for
developing a plant layout.
Using several plastic overlays will simplify the analysis
The industrial engineer can always find ways to improve the flow of material.

The Operations Chart

The operations chart (fig 5-15, 5-16, page 156) has a circle for each operation
required to fabricate each part, to assemble each part to the final assembly, and to
pack out the finished product.
On one piece of paper, every product operation, every job, and every part are
included.
Operations charts show the introduction of raw materials at the top of the page.
A vertical line connects circles (steps in the fabrication of the raw material into
finished products).
The operations chart is different for every product, so a standard form is not
practical.

Step-by-Step Procedure for Preparing an Operation Chart:

1. Identify the parts that are going to be manufactured and those that are going to be
purchased complete.
2. Determine the operations required to fabricate each part and the sequence of
these operations.
3. Determine the sequence of assembly for both buyout and fabricated parts.
4. Find the base part. This is the first part that starts the assembly process. Put that
part name on a horizontal line in the upper right of the chart. On a vertical line
extending down from the right side of the horizontal line, place a circle for each
operation. Beginning with the first operation, list all operations down to the last
operation.
5. Place the second part to the left of the first part and the third part to the left of the
second part and so on. All the fabrication steps are listed below the parts with a
circle representing each operation.
6. Draw a horizontal line from the bottom of the last operation of the second part to
the first part just below its final fabrication operation and just above the first
assembly operation (fig 5-17, page 158). Repeat for parts three, four and so on.
7. Introduce all buyout parts on horizontal lines above assembly operation circles
where they are placed on the assembly.
8. Put time standards, operation numbers, and operation descriptions next to and in
the circle as explained earlier (fig 5-15, page 156).
9. Sum the total hours per unit and place these total hours at the bottom right under
the last assembly or pack out operation.



Flow Process Chart:

The flow process chart combines the operations chart with the process chart.
The operations chart uses only one symbol the circle or operations symbol.
The flow process chart uses all 5 process chart symbols (fig 5-18, page 158).
The flow process chart is the most complete of all techniques.

Step-by-Step Procedure for Preparing a Flow Process Chart

1. Start with the operations chart.
2. Complete the process chart for each part.
3. Combine the operations chart and the process chart, working in all the buyouts.

Computer Aided Flow Design and Analysis

Computers and software packages can aid in the design and analysis of material
flow in the manufacturing facility.
FactoryFLOW is a powerful layout analysis tool capable of integrating the actual
facilities drawings with the material flow paths and the production and material
handling data.
Facility planners have to obtain the input data such as time standards, route sheets,
and process and equipment requirements.
Factory CAD can be used to prepare a sketch of the facilities showing existing or
proposed location of various activity centers.
Critical paths, bottlenecks, and flow efficiency can be readily determined.
Optimal dock, storage, and equipment locations can be quickly and easily
determined (fig 5-20, 5-21, page 163).



















Summary

Flow analysis considers the path that every part takes through the plant and tries
to minimize: 1. distance travelled (measured in feet) 2. backtracking 3. cross traffic
and 4. cost of production.
To establish the best arrangement of equipment, facilities designers use four
techniques: 1. String Diagram 2. Multicolumn Process Chart 3. From-To Chart
and 4. Process Chart.
String Diagram: In a string diagram, circles represent the equipment and the lines
between circles indicate flow.
Multicolumn Process Chart: shows the flow of each part right next to but separate
from each other.
From-To Chart: Designers can develop an efficiency that considers the importance
of the parts.
Process charting lends itself to standard forms.
Flow diagrams show the path traveled by each part from receiving to stores to
fabrication of each part to subassembly to final assembly to pack out to warehousing
to shipping.
The flow process chart combines the operations chart with the process chart.
Computers and software packages can aid in the design and analysis of material
flow in the manufacturing facility.
Factory FLOW is a powerful layout analysis tool capable of integrating the actual
facilities drawings with the material flow paths and the production and material
handling data.
Factory CAD can be used to prepare a sketch of the facilities showing existing or
proposed location of various activity centers.




















Chapter 6: Activity Relationship Analysis

Introduction:

Activity relationship analysis will help the facilities planner to place each
department, office, and service area in the proper location.
The objective is to create the most efficient layout possible.

Activity Relationship Diagram

The activity relationship diagram, also called affinity analysis diagram, shows the
relationship of every department, office, or service area with every other
department and area (fig 6-1, page 177).
Closeness codes are used to reflect the importance of each relationship:
A - Absolutely necessary that these two departments be next to each other.
E - Especially important
I Important
O Ordinary importance
U Unimportant
X Closeness undesirable
The A code should be restricted to the movement of massive amounts of material
between departments for example steel receiving to the steel storeroom. It will be
difficult to handle more than eight A codes.
Use E code if there is any doubt that it is an A code.
Use I and O codes where some level of importance is desired.
U codes are useful because they tell you no activity or interface is needed between
two departments.
X codes are as important as A codes, but for opposite reason. Noise, smell, heat, dust,
clod are good reasons for an X code.

Determining The Relationship Code:

The relationship or affinity code states the desired degree of closeness between
two activity centers.
A rule of thumb is that you should not exceed the following percentages for a given
code: A 5%, E 10%, I 15%, and O 25%.
The total number of relationships, N between all possible pairs of work centers (n)
can be determined by: N = n (n-1) / 2
For example with 25 different departments or work centers there will be N =
25 (25-1) / 2 = 300 relationship codes.
The facilities designer should have no more than 15 A relationships (300 x
5% = 15).



Worksheet

The worksheet can serve as an interim step between the activity relationship
diagram and the dimensionless block diagram.
Step-by-step procedure for the worksheet (fig 6-2, page 180):
1. List all the activities down the left hand side of a sheet of paper.
2. Make six columns to the right of the activity column and title them
A,E,I,O,U, and X (relationship codes).
3. Taking one activity at a time, list the activity numbers under the proper
relationship codes. Be sure each activity number appears on each line.

Dimensionless Block Diagram

The dimensionless block diagram is the first layout attempt.
It will be the basis for the master layout and plot plan.
Step by step procedure (fig 6-3, page 181):
1. Cut up a sheet of paper into 2 x 2 inch squares.
2. Place an activity number in the center of each square.
3. Taking one square at a time, make a template for that activity by placing
the relationship codes in the following positions: A relationship in the top left
hand corner. E relationship in the top right hand corner. I relationship in the
bottom left corner. O relationship in the bottom right corner. U relationships
omitted. X relationship at the center under the activity number.
4. Each activity center is represented by one square.
5. Once the templates are ready, you place them in the arrangement that will
satisfy as many codes as possible.
All As should have a full side touching. All Es should have at least one corner
touching. No X relationship should be touching (fig 6-4, page 182).

Flow Analysis

Flow analysis is now performed on the dimensionless block diagram.
Start with receiving and show the movement of materials to stores, to fabrication, to
welding, to paint, to assembly and pack out, to the warehouse, and to shipping (fig 6-
4, page 182).
You would not want shipping or receiving to be located in the middle of the building.
You would not want material to jump over one or more departments.

Computer Generated Activity Relationship Chart

Software packages are available to aid facility planners in achieving solution to a
layout problem.
FactoryPLAN via a series of interactive menus and on-screen prompts assists the
user in arranging a layout based on the closeness ratings between pairs of activity
centers or work areas.
The analysis is performed in 3 steps:
1. Create a data file containing activity center names.
2. Once the list is complete, the user is prompted to enter the affinity code
and reason code between pairs of work centers.
3. The third step of the analysis is the generation of the activity relationship
chart and the flow path diagrams.
The software will generate an optimized layout based on the data that are entered
by the user (fig 6-7, page 186).


Summary

Activity relationship analysis will help the facilities planner to place each
department, office, and service area in the proper location.
The activity relationship diagram, also called affinity analysis diagram, shows the
relationship of every department, office, or service area with every other
department and area.
The relationship or affinity code states the desired degree of closeness between
two activity centers.
The worksheet can serve as an interim step between the activity relationship
diagram and the dimensionless block diagram.
The dimensionless block diagram is the first layout attempt.
Flow analysis is now performed on the dimensionless block diagram.
Software packages are available to aid facility planners in achieving solution to a
layout problem.

Chapter 7: Ergonomics and Workstation Design Space Requirements

Workstation Design:

The result of ergonomics and workstation design is a workstation layout, and the
workstation layout determines the space requirements.
The manufacturing department total space requirements are a total of individual
space requirements plus a contingency factor.
Ergonomics is the science of preventing musculoskeletal injuries in the work place.
Design the workstation so that the task fits the person rather than forcing the
human body to fit the job.
Improper workstation design costs the American industry millions of dollars
annually in lost productivity, health, and job related injuries and accidents.

Ergonomics and the Principles of Motion Economy

Effectiveness is doing the right job.
Efficiency is doing the job right.
Safety and efficiency should be the goals of every workstation designer.
Ergonomics and the principles of motion economy should be considered for every
job.





Principle 1: Hand Motions

First of all hand motions should be eliminated as much as possible. Let a machine do
it.
If hand tools are used they must be designed ergonomically, and they must be easily
adapted to both left handed and right handed people. Over 10% of the people are
left handed.
Combine motions to eliminate other motions.
Make motions as short as possible, and eliminate leaning.
Locate frequently used tools and materials closer to point of use. Place heavy
materials closer to the point of use.

Principle 2: Basic Motion Types

Ballistic motions are fast motions created by putting one set of muscles in motion,
and not trying to stop those motions by using other muscles.
Controlled restricted motions require more control especially at the end of the
motion. Controlled motions are to be considered first for elimination because they
are costly, fatiguing, and unsafe.
Continuous motions are curved motions. When the body has to change direction,
speed is reduced.

Principle 3: Location of Parts and Tools

Have a fixed place for all parts and tools and have everything as close to the point of
use as possible.
Looking for parts wastes time.
Reaching for something is fatiguing.
You can place parts in two or three tiers to make them visible.

Principle 4: Freeing the Hands From as Much Work as Possible

Fixtures and jigs are designed to hold parts so that the worker can use both hands.
Foot operated control devices can be designed to activate equipment to relieve
hands from work.
Fixtures can be electric, air, hydraulic or manually activated.
A hex nut can be placed in a hex shaped hole that has no clamping need, but it will
be held firm because of the part and fixture shape.
Many tooling vendors would love to supply you with fixture building material and
devices (fig 7-12, page 205).






Principle 5: Gravity

Gravity is free power.
Gravity can move parts closer to the operator.
Large boxes of parts can be moved into and out of workstations using gravity rollers
and skate wheel conveyors.
Slide chutes can carry punch press parts away from the die without operator
assistance by using jet blasts of air, mechanical wipers, or even the next part
pushing the finished part from the die.

Principle 6: Operator Safety and Health Considerations

Keep safety hazards in mind and anticipate emergency action requirements while
designing the workstation.
The correct work height is elbow height. Light work can be 2 inches above elbow
height, whereas heavy work should be 2 inches below elbow height.
To maintain correct work height have adjustable workstations. Design the station
for the tallest person and provide platforms for the shorter people, or adjust the
work height on the top of the workstation.
The closer the work is, the more need there is for light. The best place for the light is
over the work and slightly over the back, but not casting a shadow.
Operator space should be 3 x 3 feet. Three feet off the aisle is adequate for safety
and 3 feet from side to side allows parts to be placed comfortably next to the
operator. If machines need maintenance and cleanup, a 2 foot access should be
allowed around the machine.

Space Determination

The space determination for most production departments starts with the
workstation design.
Multiplying the total workstation design square feet by 150% allows for extra space
for the aisle, work in process, and a small amount of miscellaneous extra room.
It does not include restrooms, lunchrooms, first aid, tool rooms, maintenance,
offices, stores, warehouse, shipping or receiving.

Summary:

Ergonomics is the science of preventing musculoskeletal injuries in the work place.
Design the workstation so that the task fits the person.
First of all hand motions should be eliminated as much as possible. Let a machine do
it.
If hand tools are used they must be designed ergonomically, and they must be
easily adapted to both left handed and right handed people. Over 10% of the people
are left handed.
Controlled restricted motions require more control especially at the end of the
motion. Controlled motions are to be considered first for elimination because they
are costly, fatiguing, and unsafe.
Have a fixed place for all parts and tools and have everything as close to the point
of use as possible.
The correct work height is elbow height. Light work can be 2 inches above elbow
height, whereas heavy work should be 2 inches below elbow height.
Operator space should be 3 x 3 feet. Three feet off the aisle is adequate for safety
and 3 feet from side to side allows parts to be placed comfortably next to the
operator. If machines need maintenance and cleanup, a 2 foot access should be
allowed around the machine.
Multiplying the total workstation design square feet by 150% allows for extra space
for the aisle, work in process, and a small amount of miscellaneous extra room.
It does not include restrooms, lunchrooms, first aid, tool rooms, maintenance,
offices, stores, warehouse, shipping or receiving.


Chapter 8: Auxiliary Services Space Requirements

Introduction:

Manufacturing departments need support services and these services need space.
Major services are receiving and shipping, storage, warehousing, maintenance and
tool room, utilities, heating, and air conditioning.

Receiving and Shipping:

Receiving and shipping are two separate departments, but they have very similar
people, equipment, and space requirements.
The receiving department is the start of the material flow, whereas the shipping
department is the end of the material flow.
Receiving and shipping could be placed next to each other or across the plant from
each other.

Advantages and Disadvantages

Loading and unloading trucks are very similar functions, so the facilities are similar.
Dock doors, dock plates, fork trucks, and aisles are needed for both receiving and
shipping.
Responsible people who know the value of proper counts, proper identification, and
control of the companys most valuable assets are receiving and shipping clerks.
The disadvantages of centralized shipping and receiving are space congestion and
material flow.
Material flow is more efficient if the material could flow straight through the plant:
receiving on one side of the plant and shipping on the other side.

The Trucking Industrys Effect on Receiving and Shipping

The trucking industry is organized nationally to deliver raw materials and parts to
industry in the morning and pick up shipments in the afternoon.
The trucks are unloaded at a local companys warehouse.
The materials are sorted by company to be delivered the next morning.
The first stop is loaded last and the last stop loaded first.
In the afternoon the same truck could return and pick up shipments.
One truck could pick up 50,000 pounds of shipment.

Functions of a Receiving Department

Receiving Trailers are backed up to the receiving dock doors, the tires are chocked,
the trailer doors are opened, a dock board or dock plate is positioned between the
trailer and the floor of the plant, and the driver gives the receiving clerk a manifest
that tells the receiving clerk what to unload.
Unloading: The material is removed from the trailer and placed in the holding area.
The receiving clerk signs the truckers manifest acknowledging receipt of containers
and the truck leaves. Visible carton damage should be noted on the drivers
paperwork.
Recording Receipts: When material is unloaded it is checked on a log. A number is
stamped on the Bates log, the packing slip, and the receiving report. The Bates log is
a 6 digit number (For example: July 3 is the 185 day of the year and 21
st
truck
arriving would give a Bates number of 185021).
Opening, Separating, Inspecting, and Counting: Before the day is complete,
everything received today must be opened, separated, inspected, and counted. A
quality check must be made to see if this is what the company ordered. The quantity
must also be checked.
Preparing Overage, Shortage, and Damage Report (OS&D): Each problem
becomes a project for the purchasing department which has to work it out with the
supplier, but the eyes and ears are within the receiving department (OS&D report).
Preparing Receiving Reports: After checking quality and quantity , the receiving
department sends the receiving report to accounting. The accounting department
(accounts payable) collects copies of the purchase order, receiving report, and
invoice. Only after all 3 documents are received is the bill paid for only what
receiving said they received. Errors can be very costly.
Sending to stores or Production: A significant portion of problems associated with
manual operations of identification, counting, sorting, routing, and inventory
management and the resulting human errors can be alleviated through the use of
automatic identification and capture (AIDC) technology such as PDF417, a two
dimensional bar code. The use of AIDC technology can increase efficiency and
throughput and reduce human errors.
Door Docks: The number of door docks depends on the arrival rate (trucks per
hour) at peak time, and the service rate (unloading time). For example, if 12 trucks
arrive during a peak hour, and it takes 15 minutes to unload an average truck, three
dock doors would be needed (4 trucks per hour per door).
Door Plates, Dock Levelers, and Door Boards: These are tools to bridge the gap
between the floors of buildings and the floors of trailers, so the material can be
moved on and off the trailer easily.
Aisles: Generally aisles into trailers are 8 feet wide because that is the width of the
trailer.
Outside Areas (fig 8-1, page 216): Trailer parking alone can take up 65 feet out
from the plant wall. Maneuvering space is usually about 45 feet. Roadways are 11
feet one way or 22 feet for two way traffic.
Offices: Depending on the number of people assigned to the receiving area, 100
square feet per clerk is necessary.


Functions of a Shipping Department

Packaging Finished Goods for Shipping: The package may be a box, a pallet, or a
cargo container. Packaging must include careful placement of individual items so
that they are not damaged in shipment.
Addressing Cartons or Containers: Some systems use a computer generated
shipping label.
Weighing Each Container: The trucking company will charge by the pound, so you
have to know the weight to determine trucking costs. If a container does not weigh
enough, something must have been left out. When customers receive the shipment
and claim shortage, you can check the weight to verify shortage. Pounds shipped per
person is also good indicator of performance.
Collecting Orders for Shipping: All day long as orders are filled and packed, the
finished packing is placed in the proper staging area for the proper truck line.
Spotting Trailers: Some big shippers may talk the trucking company into leaving a
trailer at the plant all day. Then you can stage the shipment on the trailer and save
plant space.
Loading Trailers: Loading the trailer can be done very quickly if pallets are used.
Most trailers will hold 18 pallets, 36 if stacked two high.
Creating Bills of Lading: A bill of lading lists every order and the weight of the
product. It will eventually come back as a bill for the trucking service.
Space Requirements for the Shipping Department: Use of a bar code can simplify
the item tracking process and ensure that relevant and accurate information
accompanies the shipment. Space for shipping must include areas for packaging,
staging, aisles, trailer parking, roadways, and offices (fig 8-7, page 223).