IENG4445 & IENG6908 – FACILITIES DESIGN

ASSIGNMENT 01 – 17/01/2020
Full Name: Banner Number: B00

INSTRUCTIONS

• This assignment must be done individually.

• A scanned or soft copy of your solutions must be uploaded to Brightspace. Please make
sure to have only ONE file uploaded. A printed copy should be dropped off in the IE
Department drop-off box on the 2nd Floor of the Morroy Academic Building
DUE DATE: JANUARY 27TH – 5:00PM.

Problem 1 (40) – Sketch a typical layout for each of the following retail store types:
a) Department store
b) Fast food outlet
c) A bank’s customer banking centre (branch)
d) A supermarket style grocery store.
Answer:

Problem 2 (10) – Consider a simple three-step manufacturing process as illustrated in the given
figure. Assuming that demand is 1,000 units, what is the required input to meet demand? Assume
that the unit scrap cost is $5 at process 1, $10 at process 2, and $15 at process 3. The defective
rates are 3%, 5% and 7% respectively. Compute the total scrap cost for the given system.

Answer:

Problem 3 (10) – Part X requires machining on a milling machine (operations A and B are
required). Find the number of milling machines required to produce 3,000 parts per week. Assume
the company will be operating five days per week, 8 hours per day. The following information is
known:
 IENG4445 & IENG6908 – FACILITIES DESIGN
ASSIGNMENT 01 – 17/01/2020
Standard Defect
Operation Efficiency Reliability
Time Rate
A 3 min 95% 95% 2%
B 5 min 95% 90% 5%

Note: The milling machine requires tool changes and preventive maintenance after every lot of
500 parts. These changes require 30 minutes. Think of setup as an activity that reduces
equipment availability.
Answer:

Problem 4 (10) – A part requires three processing steps on two machines in the sequence A-B-
A. The demand for this part is 10,000 units per week. The company operates six days per week,
eight hours per day. Given the following performance data, find the number of each machine
needed to meet the demand.

Standard Defect
Operation Machine Efficiency Reliability
Time Rate
1 A 5 min 90% 95% 3%
2 B 3 min 95% 98% 2%
3 A 3 min 90% 95% 1%
Answer:

Problem 5 (10) – Given the following, what are the machine fractions for machines A, B, and C
to produce parts X and Y?

Machine A B C
Part X standard time 0.15 hr 0.25 hr 0.10 hr
Part Y standard time 0.10 hr 0.10 hr 0.15 hr
Part X defect estimate 5% 4% 3%
Part Y defect estimate 5% 4% 3%
Historical efficiency 85% 90% 95%
Reliability factor 95% 90% 85%
Equipment availability
not accounting for 8760 8760 8760
efficiency or reliability hrs/yr hrs/yr hrs/yr
Part X routing is machine A, then B, and then C; 100,000 parts are to be produced per year. Part
Y routing is machine B, then A, and then C; 200,000 parts are to be produced per year. Setup
times for parts X and Y are 20 minutes and 40 minutes, respectively. Think of setup as an activity
that reduces equipment availability. For both X and Y, a setup occurs every 200 parts on each
machine.
 IENG4445 & IENG6908 – FACILITIES DESIGN
ASSIGNMENT 01 – 17/01/2020
Problem 6 (20) - It takes 3 minutes to load and 2 minutes to unload a machine and both machine
and operator are required. Inspection, packing, and travel between machines totals one minute.
Machines run automatically for 20 minutes. Operators cost $18 per hour; the opportunity cost of
the machine is $30 per hour.
a) What is the maximum number of machines that can be assigned to an operator without creating
machine idle time during a repeating cycle? Create a multiple activity chart using excel. (4)
b) What assignment minimizes the cost per unit produced? (4)
c) If four machines are assigned to an operator, what will be the cost per unit produced? (4)
d) For what range of values for concurrent activity is the optimum assignment equal to four? (8)