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Kultur Dokumente
Operations Management
Dr. Ron Tibben-Lembke
Break-Even Analysis
Given a fixed cost, how many do we
have to make to break even?
A: buy units @ $200
B: Make on lathe: $80,000 + $75
each
C: Machining Center: $200,000 +
$15 each
Which is the cheapest way?
Break-Even Analysis
If we only sell 1, which is cheapest?
If we sell a gazillion, which is
cheapest?
Break-Even
Total Costs
Outsource
Draw Lowest
Fixed Cost Line
Volume
Break-Even
Total Costs
Outsource
Lathe
Add Next-Lowest
Cost
Volume
Break-Even
Total Costs
Outsource
Lathe
Machining
Center
Volume
Break-Even
Total Costs
Outsource
Outsource Lathe
Lathe
Machining
Center
Machining
Center
Volume
Break-Even Analysis
When does Lathe become cheaper?
80,000 + 75*x = 200*x
80,000 = 125*x
x = 640
Break-Even Analysis
Total Costs
Outsource
Outsource Lathe
Lathe
Machining
Center
Machining
Center
640 Volume
Break-Even Analysis
When does Machining Center become
cheaper?
80,000 + 75*x = 200,000 + 15*x
120,000 = 60*x
x = 2,000
Break-Even Analysis
Total Costs
Outsource
Outsource Lathe
Lathe
Machining
Center
Machining
Center
Variety
High project
Workcenter Manufacturing
Cell
Medium Assembly
Line Continuous
Process
Low
Volume
Process Strategy
Variety
High Process Focus
(job shops)
Repetitive (cars,
Medium motorcycles)
Product Focus
(steel, glass)
Low
Volume
Process Focus (Job Shop)
Low volume, high variety, “do it all”
“Job shop” environment (e.g. Kinko’s)
High amount of flexibility
Each job is different
Relatively high cost per unit
Very high flexibility
Process Selection / Evolution
Products tend to move through the
four stages over life cycle.
Unit costs decrease as standardization
increases, and production increases.
Flexibility decreases as volume,
standardization increase
Design for Manufacturing -Before
Design for Manufacturing-After
Designing the System
How do we decide where to put
things?
Layout Types
Project or Fixed-position layout
Process-oriented layout
Product-oriented layout
Office layout
Warehouse layout
Retail/service layout
Project or Fixed-Position
© 1995
Corel Corp.
Drill Presses
Tool Room
60 ft.
There are 6! or 720 possibilities! Clearly,
we can’t look at them all.
From-to-Matrix
Department
1 2 3 4 5 6
50 100 0 0 20
1
30 50 10 0
2
20 0 100
3
Dept. 50 0
4 Number of Trips
0
5
6
Schematic Diagram & Cost
100 Dept. Dept. Cost
1 3 $ 200
1 2 $ 50
1 6 $ 40
50 30 4 2 $ 50
1 2 3
4 3 $ 40
10 4 5 $ 50
20 2 5 $ 10
50 2 3 $ 30
100 3 6 $ 100
20
4 5 6
Facility
organized around product
Design minimizes line imbalance
Delay between work stations
Types:Fabrication line; assembly line
Examples
Auto assembly line
Brewery
Paper manufacturing.
Cellular Layout (Work Cells)
Special case of process-oriented
layout
Consists of different machines brought
together to make a product
May be temporary or permanent
Example: Assembly line set up to
produce 3000 identical parts in a
job shop
Work Cell Floor Plan
Work Cell
Tool Room
Work Cell Advantages
Increases:
Equipment
utilization
Reduces: Employee
Inventory participation
Floor space Quality
Direct labor
costs
Work Cell Layout
+ Facilitates cross-training
+ Can easily adjust production volumes
+ Easy to incorporate into JIT
-- Requires higher volumes to justify
-- May require more capital for
equipment
Office Layout Example
Relationship Chart
Ordinary
1 closeness:
1 President 2 President (1)
O 3 & costing (2)
2 Costing U 4
A A
3 Engineering I
O Absolutely
4 President’s Secretary necessary:
President (1)
I = Important; U = Unimportant & secretary (4)
Relationship Chart
1
1 2
O 3
2 E 4
I O 5
3 O U 6
U I U 7
4 U
U I U 8
9
U I U
5 OA U O U 10
I U U I U
6 U U U I
E U U U
7 U
U
I
U I
A
8 E U
U U
9 A
E
10
Assembly-Line Balancing
Assembly-Line Balancing
Situation:Assembly-line production.
Many tasks must be performed, and
the sequence is flexible
Parts at each station same time
Tasks take different amounts of time
How to give everyone enough, but not
too much work for the limited time.
Product-Oriented Layout
Operations
Belt
Conveyor
Precedence Diagram
Draw precedence graph
(times in seconds)
B
A G
5
20 15
E I J
C D 8
12 7
H
5 10 F 12
3
Cycle Time
The more units you want to produce per hour, the
less time a part can spend at each station.
Cycle time = time spent at each spot
B
A G
5
20 15
E I J
C D 8
12 7
H
5 10 F 12
3
Number of Following Tasks
Nodes # after
A 4
B,E,F 3 A could not be added to first
station, so a new station must
G,H 2 be
I 1 created with A.
B
A G
5
20 15
E I J
C D 8
12 7
H
5 10 F 12
3
Precedence Diagram
Next priority B can be added to A.
B
A G
5
20 15
E I J
C D 8
12 7
H
5 10 F 12
3
Precedence Diagram
Next priority B can be added to A.
Next priority F can’t be added to either.
B
A G
5
20 15
E I J
C D 8
12 7
H
5 10 F 12
3
Number of Following Tasks
Nodes # after
G,H 2
G and H tie on number coming
I 1 after.
G takes 15, H is 12, so G goes
first.
Precedence Diagram
G can be added to F.
H cannot be added.
B
A G
5
20 15
E I J
C D 8
12 7
H
5 10 F 12
3
Precedence Diagram
I is next, and can be added to H, but J
cannot be added also.
B
A G
5
20 15
E I J
C D 8
12 7
H
5 10 F 12
3
Calculate Efficiency
We know that at least 4 workstations
will be needed. We needed 5.
Sum of task times (T)
Efficiencyt =
Actual # WS * Cycle Time
= 97 / ( 5 * 25 ) = 0.776
We are paying for 125 minutes of
work, where it only takes 97.
Precedence Diagram
Try choosing longest activities first.
A is first, then G, which can’t be added to A.
B
A G
5
20 15
E I J
C D 8
12 7
H
5 10 F 12
3
Precedence Diagram
H and I both take 12, but H has more
coming after it, then add I.
B
A G
5
20 15
E I J
C D 8
12 7
H
5 10 F 12
3
Precedence Diagram
D is next, followed by E, so we combine them, but we could
have combined E&G. We’ll try that later.
B
A G
5
20 15
E I J
C D 8
12 7
H
5 10 F 12
3
Precedence Diagram
J is next, all alone, followed by C and B.
B
A G
5
20 15
E I J
C D 8
12 7
H
5 10 F 12
3
Precedence Diagram
F is last. We end up with 6 workstations.
B
A G
5
20 15
E I J
C D 8
12 7
H
5 10 F 12
3
Precedence Diagram
Go back and try combining G and E
instead of D and E.
B
A G
5
20 15
E I J
C D 8
12 7
H
5 10 F 12
3
Precedence Diagram
J is next, all alone. C is added to D, and
B is added to A.
B
A G
5
20 15
E I J
C D 8
12 7
H
5 10 F 12
3
Can we do better?
B
A G
5
20 15
E I J
C D 8
12 7
H
5 10 F 12
3
Precedence Diagram
F can be added to C&D. Five WS again.
B
A G
5
20 15
E I J
C D 8
12 7
H
5 10 F 12
3
Reduced CT
Efficiency = 97/100 = 0.97. Much
better.
If we set CT = 20, we can produce 3
units per hour.
Goal of 32 units can be produced in 20
* 32 = 640 minutes.
Significant savings over original 800
minutes.
Can we do better?
If we have to use 5 stations, we can get a
solution with CT = 20.
B
A G
5
20 15
E I J
C D 8
12 7
H
5 10 F 12
3
Calculate Efficiency
With 5 WS at CT = 20
= 97 / ( 5 * 20 ) = 0.97
We are paying for 100 minutes of
work, where it only takes 97.
Output and Labor Costs
With 20 min CT, and 800 minute workday
Output = 800 min / 20 min/unit = 40
Don’t need to work 800 min
Goal 25 units: 25 * 20 = 500 min/day
5 workers * 500 min = 2,500 labor min.
We were trying to achieve
4 stations * 800 min = 3,200 labor min.
Significant labor cost savings
Handling Long Tasks
Long tasks make it hard to get efficient
combinations.
Consider splitting tasks, if physically
possible.
If not:
Parallel workstations
use skilled (faster) worker to speed up
Warehouse Layout
Design balances space (cube)
utilization & handling cost
Similar to process layout
Items moved between dock
& various storage areas
Optimum layout depends on
Variety of items
stored
No. items picked
Receiving Shipping
Warehouse Layout
Check-
Office Carts
out
Retail/Service Layout
Free-Flow Design
Apparel Store
Feature Trans.
Counter
Display
Table
Retail Store
Flow Guidelines
Frequently purchased
Meat
items at far sides of stores
so you have to go through
entire store (produce or
meat).
Profitable sections like
produce placed where you
keep running into them
Milk
Produce
Retail Store Flow Guidelines
Cereal
Retail Store
Flow Guidelines
Cereal
Quality of produce
section important in
customer decisions
about which stores to
visit, so produce is often
prominently displayed Peanut
upon entrance Butter
People like to see what
they’re looking for, not
read signs produce
Retail Store
Flow Guidelines
© 1995
Corel
Corp.
Retail Store
Flow Guidelines
Eliminate cross-over
aisles:
less wasted floor
space,
you have to look at
more items,
the more time you
spend in the store, the
more you will buy.
Shelf Space Planogram
PERT
PERT
PERT
PERT
PERT
management
Generated from
store’s scanner data
on sales
SUAVE
SUAVE
VO-5
VO-5
VO-5
Often supplied by
VO-5
VO-5
manufacturer
Example: P&G
2 ft.
Shelf Placement
Companies prefer to be at eye-level or
at child-reaching level
Close to leading brands or high-draw
items: snack foods next to the peanut
butter or across from the cereal:
Lots of kids visit the area
Slotting Fees
Manufacturer pays retailer to get a product into a
store
35,000 new grocery products per year
Grocery stores often stock 30,000 items
Impossible to evaluate all new products to choose
the best new ones
Slotting fees guarantee grocer profits on a product,
help balance risk of trying unknown product.
Grocery is a narrow margin business, slotting fees
can represent a significant revenue source.
Slotting Fees
Senate Small Business Committee held
hearings on them in 2000.
Industry refused to cooperate with GAO.
Growers of produce (not just brand names)
now getting involved and complaining.
Small businesses claim they can’t afford the
big payments big companies can make.
Advocates say small companies can “put
their money where their mouths are” just like
anyone else
Perimeter Items
People follow perimeter pattern
Sale items on end – everyone sees
Half of a store’s profit comes from items on
the perimeter
Breakfast cereal brings in the most dollars
per square foot
Manufacturer incentives increase
profitability of soft drinks
“Anchors” at ends of a section: milk and
butter at opposite ends of dairy case