FACTORY DESIGN PROCESS EFFECTIVENESS

Economies Of Scale
it costs less per unit to produce high levels of output
a. fixed costs can be spread over a larger number of units
b. production or operating costs do not increase linearly with output levels
c. quantity discounts are available for material purchases
d. operating efficiency increases as workers gain experience

Capacity Planning
Maximum capability to produce
a. Measured by: unit or dollars of output, hours of work or number of customers processed
b. Affected by: mix of products and services, choice of technology, size of facility and resources allocated

Elemen Capacity
a. Rate Capacity: Output that could be attained if a process were operating at full speed without any shortages
b. Effective Capacity: efficiency with which product/customer can be processed, and utilization of the scheduled hours or work
c. Effective Daily Capacity = (No of machines or workers) X (hours per shift) X (No of Shift) X (Utilization) X (Efficiency)

Mixed Model Assembly Line
Produce multiple models in any order on one assembly line
Issues in mixed model lines
a. Line balancing
b. U-shaped lines
c. Flexible workforce
d. Model sequencing

Flexible Manufacturing System
a. FMS consists of numerous programmable machine tools connected by an automated material handling system and controlled by a common computer network
b. FMS combines flexibility with efficien
c. FMS layouts differ based on
variety of parts that the system can process
size of parts processed
average processing time required for part completion