Long-Range Capacity Planning and Facility Location

Example: Maxx Superchargers

• Cell Formulation – Rows Rearranged

• 1

• 2

• 3

• 4

• 5

• 6

• X

• X

• X

• X

• X

• X

• X

• X

• X

• X

• X

• X

• X

• X

• A

• E

• D

• C

• B

• Parts

• Machines

Example: Maxx Superchargers

• Cell Formulation – Columns Rearranged

• 3

• 5

• 6*

• 1

• 2

• 4

• X

• X

• X

• X

• X

• X

• X

• X

• X

• X

• X

• X

• X

• X

• A

• E

• D

• C

• B

• Parts

• Machines

• * exceptional part

Example: Maxx Superchargers

• Cell Formulation – Summary
• 2 manufacturing cells (MC1, MC2) will be used.
• Parts 3 and 5 will be produced in MC1 on machines A and E.
• Parts 1, 2 and 4 will be produced in MC2 on machines B, C and D.
• Part 6 is an exceptional part that cannot be produced within a single cell.

• Service Facility Layouts

Characteristics of Services

• There may be a diversity of services provided
• There are three dimensions to the type of service:
• Standard or custom design
• Amount of customer contact
• Mix of physical goods and intangible services
• There are three types of service operations:
• Quasi manufacturing
• Customer-as-participant
• Customer-as-product

Characteristics of Service Facility Layouts

• The encounter between the customer and the service must be provided for.
• The degree to which customer-related features must be provided varies with the amount of customer involvement and customer contact.

Planning Service Facility Layouts

• Quasi-Manufacturing Services
• Several topics previously discussed under Manufacturing Layouts are relevant here:
• Principles of material handling
• CAD and simulation software
• Line balancing

Planning Service Facility Layouts

• Customer-as-Participant & Customer-as-Product
• An important element is providing for customer waiting lines
• Amount of space needed for service counters and waiting customers
• Placement of waiting lines in overall layout

Planning Service Facility Layouts

• For many service operations, layouts are like process layouts in manufacturing
• The departments of hospitals are grouped and located according to their processes
• In some cases, closeness ratings are used to reflect the desirability of having one department near another