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Chapter 8. Infrastructure: Technology and Facilities. Outline Technology Services and Manufacturing Technology Decision Making Break Even Analysis Facilities Decision Making Facility Location and Facility Layout Ergonomic Issues Facility Design - Systematic Layout Planning. Technology.

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chapter 8 infrastructure technology and facilities
Chapter 8. Infrastructure: Technology and Facilities
  • Outline
    • Technology
      • Services and Manufacturing
      • Technology Decision Making
      • Break Even Analysis
    • Facilities Decision Making
      • Facility Location and Facility Layout
      • Ergonomic Issues
      • Facility Design - Systematic Layout Planning

MAN 3504 - Chapter 8

technology
Technology
  • Dominates products and processes.
  • Used in services and manufacturing
  • Services
    • Share/analyze information: EDI, Decision Making Systems
    • Internet based commerce
  • Manufacturing
    • CAD/CAM, Automated Guided Vehicles
    • Scheduling and Capacity Planning Systems

MAN 3504 - Chapter 8

technology decision making
Technology Decision Making
  • Advantages of new technology
    • Cost reduction: Labor, Material, quality
    • Increased Flexibility: manage customer inputs, simplify customization
    • Higher Quality: better features, more process control
    • Increased delivery and development speed: CAD and internet
  • Risks of new technology
    • Customers or employees reject new technology
    • Technology obsolescence

MAN 3504 - Chapter 8

technology decision making break even analysis
Technology Decision Making - Break even analysis
  • A tool to support selection of technology alternatives
    • Determine payoff line for each alternative
    • Pi (W) = (Ri – VCi) x W – Fi

Where

Pi (W) = Profit for alternative i given a demand W.

Ri = Revenue generated per item for alternative i.

VCi = Variable cost per item for alternative i.

Fi = Fixed cost for alternative i.

W = Number of items.

MAN 3504 - Chapter 8

facility decision making
Facility Decision Making
  • Two types: facility location and facility layout
  • Facility Location decisions: multiple factors are considered:
    • Proximity to customers
    • Labor/Skill availability
    • Proximity to key suppliers, to existing facilities, to ports and airports
    • Taxes and incentives, Political stability
  • Factor Rating Method: simple tool to help decision making

MAN 3504 - Chapter 8

facility decision making1
Facility Decision Making
  • Facility Layout Decisions
  • Three types of layouts: Product, Process, and Cellular
  • Product
    • Layout follows the process required by a single (or very few) product(s)

MAN 3504 - Chapter 8

facility decision making layouts
Facility Decision Making - Layouts
  • Process
    • Layout is organized by functional areas.
    • Used for multiple products that require different flows

MAN 3504 - Chapter 8

facility decision making layouts1
Facility Decision Making - Layouts
  • Cellular
    • Layout is organized by product families.
    • Objective: combine the advantages of the process and product layouts

MAN 3504 - Chapter 8

ergonomic issues of facility dm
Ergonomic Issues of Facility DM

Ergonomics:

Study of the interaction between humans and machines/equipment/tools

  • Work area dimensions (space, location of the equipment)
  • Force requirements (easy to move, weight of material that must be moved)
  • Noise (limit communication, hearing damage)
  • Lighting (vision fatigue)
  • Displays (easy to read/understand)
  • Controls (location, complexity)
  • Speed of work (stress)

MAN 3504 - Chapter 8

facilities decision making systematic layout planning
Facilities Decision Making: Systematic Layout Planning
  • A Process to develop process layouts

1. Determine the functional groups

2. Determine the relationships between areas

3. Create a relationship diagram

4. Create a layout without dimensions

5. Create a layout with dimensions

6. Score the layout

7. Go back to steps 4-6 and try to create a new layout with a higher score

MAN 3504 - Chapter 8