Long-Range Capacity Planning and Facility Location


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Materials Handling

  • A materials-handling system is the entire network of transportation that:
    • Receives material
    • Stores material in inventories
    • Moves material between processing points
    • Deposits the finished products into vehicles for delivery to customers

Materials Handling

  • Material-Handling Principles
    • Move directly (no zigzagging/backtracking)
    • Minimize human effort required
    • Move heavy/bulky items the shortest distances
    • Minimize number of times same item is moved
    • MH systems should be flexible
    • Mobile equipment should carry full loads

Materials Handling

  • Material-Handling Equipment
    • Automatic transfer devices
    • Containers/pallets/hand carts
    • Conveyors
    • Cranes
    • Elevators
    • Pipelines
    • Turntables
    • AGVS

Basic Layout Forms

  • Process
  • Product
  • Cellular
  • Fixed-Position
  • Hybrid

Process (Job Shop) Layouts

  • Equipment that perform similar processes are grouped together
  • Used when the operations system must handle a wide variety of products in relatively small volumes (i.e., flexibility is necessary)

Characteristics of Process Layouts

  • General-purpose equipment is used
  • Changeover is rapid
  • Material flow is intermittent
  • Material handling equipment is flexible
  • Operators are highly skilled
  • . . . more

Characteristics of Process Layouts

  • Technical supervision is required
  • Planning, scheduling and controlling functions are challenging
  • Production time is relatively long
  • In-process inventory is relatively high

Product (Assembly Line) Layouts

  • Operations are arranged in the sequence required to make the product
  • Used when the operations system must handle a narrow variety of products in relatively high volumes
  • Operations and personnel are dedicated to producing one or a small number of products

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