Chapter 7 capacity and facilities design. This chapter includes contents: Capacity planning, basic layouts, designing process layouts, designing service layouts, designing product layouts, hybrid layouts. | Robert S. Russell, Bernard W. Taylor III, Ignacio Castillo, Navneet Vidyarthi CHAPTER 7 Capacity and Facilities Design OPERATIONS MANAGEMENT: Creating Value Along the Supply Chain, Canadian Edition Learning Objectives 7-2 Discuss long-term capacity planning strategies. Indicate the benefits of effective facility layout. Explain the general characters of process, product, and fixed-position facility layouts. Use block diagramming and relationship diagramming to design process layouts. Describe the general considerations for service layouts. Design a simple product layout for efficiency (balance basic assembly line). Describe three types of hybrid layouts, including cellular layouts, flexible manufacturing systems, and mixed-model assembly lines. Lecture Outline Capacity Planning Basic Layouts Designing Process Layouts Designing Service Layouts Designing Product Layouts Hybrid Layouts Copyright 2014 John Wiley & Sons Canada, Ltd. 7-3 Capacity Maximum capability to produce Capacity . | Robert S. Russell, Bernard W. Taylor III, Ignacio Castillo, Navneet Vidyarthi CHAPTER 7 Capacity and Facilities Design OPERATIONS MANAGEMENT: Creating Value Along the Supply Chain, Canadian Edition Learning Objectives 7-2 Discuss long-term capacity planning strategies. Indicate the benefits of effective facility layout. Explain the general characters of process, product, and fixed-position facility layouts. Use block diagramming and relationship diagramming to design process layouts. Describe the general considerations for service layouts. Design a simple product layout for efficiency (balance basic assembly line). Describe three types of hybrid layouts, including cellular layouts, flexible manufacturing systems, and mixed-model assembly lines. Lecture Outline Capacity Planning Basic Layouts Designing Process Layouts Designing Service Layouts Designing Product Layouts Hybrid Layouts Copyright 2014 John Wiley & Sons Canada, Ltd. 7-3 Capacity Maximum capability to produce Capacity planning establishes overall level of productive resources for a firm 3 basic strategies for timing of capacity expansion in relation to steady growth in demand Lead Lag average Copyright 2014 John Wiley & Sons Canada, Ltd. 7-4 Capacity Expansion Strategies Copyright 2014 John Wiley & Sons Canada, Ltd. 7-5 Capacity Capacity increase depends on volume and certainty of anticipated demand strategic objectives costs of expansion and operation Best operating level % of capacity use that minimizes unit costs Capacity cushion % of capacity held in reserve for unexpected occurrences Copyright 2014 John Wiley & Sons Canada, Ltd. 7-6 Economies of Scale Unit cost decreases as output volume increases fixed costs can be spread over a larger number of units production or operating costs do not increase linearly with output levels quantity discounts are available for material purchases operating efficiency increases as workers gain experience Copyright 2014 John Wiley & Sons Canada, Ltd. 7-7 Best .
