ISyE 3104: Introduction to Supply Chain Modeling: Manufacturing and Warehousing Instructor : Spyros Reveliotis Spring 2006 Solutions for Homework #3 Problem set



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ISYE 3104 Spring 2006 Homework 3 Solution

ISyE 3104: Introduction to Supply Chain Modeling:

Manufacturing and Warehousing

Instructor : Spyros Reveliotis

Spring 2006
Solutions for Homework #3

Problem set:
A. Answer the following questions:


  1. (Pg 549 Question 6) Describe the differences among product, process, and group technology layouts. Describe the circumstances in which each type of layout is appropriate.

    1. Product Layout: Departments are placed to conform with the flow of materials required to produce a product or group of similar products.

    2. Process Layout: Similar processes (machines) are grouped together.

    3. Group Layout: Parts are grouped to form product families and individual areas are laid out to conform to the flow for a product group.

For high volume standardized parts, a product layout is probably best. Job shops that produce a wide variety of low volume parts would be best served by a process layout. A group layout would probably be the most appropriate for several high volume parts.




  1. For each situation listed below, recommend the type of layout, among the four discussed in class and listed below, that would be most suitable for an effective operation. Explain briefly the reason for each choice.

Type A Fixed location layout

Type B Product layout otherwise known as flow line

Type C Product family layout otherwise known as cellular or group layout

Type D Process layout otherwise known as functional layout or job shop





    1. General Electric (GE) dishwasher manufacturing facility. GE is the second largest manufacturer in the U.S. of this type of appliance.

B – Second largest means it has high volume production, and dishwashers use standardized parts.


    1. A large business center that serves many different customers in a major city, such as a Kinko’s Center, with fast and slow copy machines, graphic arts equipment, binding machines for report assembly, computers for word processing, etc.

D –Kinko’s customers usually route themselves through various equipments in the facility, so a process layout is appropriate.


    1. A large automobile dealer repair/maintenance facility, with services ranging from minor diagnostics and repairs to engine/transmission work to body repair.

D – Their customers can have a high variety of service needs. The volume is regarded as low because a unique process is set up for almost every car and is not repeated in another car.


    1. An electronics appliance repair shop that handles a wide variety of products, such as televisions, video recorders, stereos, short-wave radios, microwave ovens, burglar alarms, etc.

C – Appliances can be grouped into product families according to their types (one group for televisions, another group for stereos, etc), and there will be designated areas for each product family.


    1. Manufacturing a luxury cruise boat of a capacity 100,000 tons (this is more than the Titanic weighed).

A – The heavy weight mandates a fixed location for the boat.


    1. Manufacturing aluminum ladders that range from 12 to 24 ft. long that sell in the range of $200-500 each through large discount stores and through catalog retailers.

B – Ladders are rather standardized with the only variety being the length. Since there is very low variety, a product layout would be appropriate. If there is substantial variety among them with respect to the required processing and the applied material handling, then a group layout might be more appropriate.


    1. A large sporting/recreational facility that contains tennis, squash, racquetball, diving pool, lap pool, sauna, basketball court, running track, exercise room, weight training room, fitness diagnostic room, locker rooms for men and women, bathrooms, shower rooms, offices.

D – In a sporting/recreational facility, users will route themselves through the facility in the sense that they walk from one area to the next according to their needs. No standardized flow or grouping is necessary.


    1. A mail service company that prepares mass mailings for customers. Services may include: artwork, printing, printing of items, printing of envelopes, insertion of items into envelopes, sorting of envelopes by postal (zip) code, imprinting of postage meter imprint. Not all customers need all of these services.

C or D – It is a high volume, high variety activity. The high variety requires different processing for different types of mails. On the other hand, the high volume might justify the dedication of different cells to different types of mail, i.e., a group layout.
B. Solve the following problems:


  1. Pg. 547 Problem 2

The following tables show the distances between the department centroids. The table on the left shows the Euclidean distances (i.e. the direct distance between the two points), while the table of the right shows the path lengths along the arrows in the figure. The latter is a more appropriate measure because it is the actual distance traveled by the material in the material handling system indicated by the figure. Note that the Euclidean distances are symmetric, while the distances based on the paths in the material handling system are asymmetric.



Calculation of distances in the second table:


Adjacent departments connected by a direct path:

AB: = 45


AD: (552 + 702)1/2 = 89.02

BC: 25 + 20 = 45

CD: 50 + 15 = 65

DE: 65 + 15 = 80

EA: 55 + 10 = 65
Departments that have at least one department between them:

AC: AB + BC = 45 + 45 = 90

AE: AD + DE = 89 + 80 = 169

BD: BC + CD = 45 + 65 = 110

BE: BD + DE = 110 + 80 = 190

BA: BE + EA = 190 + 65 = 255

CE: CD + DE = 65 + 80 = 145

CA: CE + EA = 145 + 65 = 210

CB: CA + AB = 210 + 45 = 255

DA: DE + EA = 80 + 65 = 145

DB: DA + AB = 145 + 45 = 190

DC: DB + BC = 190 + 45 = 235

EB: EA + AB = 65 + 45 = 110

EC: EB + BC = 110 + 45 = 155



ED: EA + AD = 65 + 89 = 154


  1. Pg. 548 Problem 3






Number of trips required

Products

(Forecasted Prod./50)

1

4

2

18

3

8

4

13

Results in a matrix:













To










 

A

B

C

D

E




A

 

12

13 

18

 




B

 

 

12

 

 

From

C

 

 

 

17






D

 

 

 

 

35




E

 

 

 

 

 

    1. Cost of material handling between departments = distance * # of trips * cost


The total cost under the current layout is $17,835 per week.


    1. According to the matrix in part (a), the traffic intensity can be categorized into 4 levels: 35, 17-18, 12-13, and 8. These four levels receive ratings of A, E, I and O, respectively, which are shown in the matrix below. The blank cells can be regarded as having ratings of a U.




    1. If the areas that will stage the various departments can be physically relocated,

then, it might advantageous to try to bring activity D closer to the center of the facility, since there is a large volume of traffic between this facility and the other departments, in particular, A, C and E.
However, if the departments are already constructed and they cannot be moved, then a layout change can be to move the activities from their current location to another location. Noticing the proximity requirements in part (c) and the corresponding number of trips stated in part (a), one might be tempted to consider the following alternative:



However, the evaluation of the material handling cost for this new layout, provided above, indicates that it fails to improve the cost value resulting from the original layout, and therefore, it is not a viable alternative. In fact, it seems that, under the assumption that the physical locations available to accommodate the various departments and the interconnecting material handling equipment will not change, the original layout is a very good one.





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