Announcement

• ICE #7 posted on canvas

• Exam 2 Jun 17
• Exam 2 prep section Jun 16
Production Systems Design

Tompkins Chapter 2
2
2.1,2.3,2.4
Facilities Planning

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Plan for today’s class

1. Product design: WHAT

2. Process design: HOW and WHERE

1. Make vs. buy decision
2. BOM, route-sheet, charts (assembly, operations
process, flow), precedence diagram
3. Process symbols

3. Schedule design: HOW MUCH and WHEN

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Designs of the product, process and schedule define the facility

Also known as the PP&S design

Product
Design

Facilities
Design
Process Schedule
Design Design

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A production system

Production System
Production Floor

Raw Finished Customers

Suppliers material Work-in-process
Goods
inventory inventory

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Product design --- the WHAT question?

Product
Design

Facilities
Design
Process Schedule
Design Design

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What is important on a product design?

Aesthetics – The Looks

Function – The Performance

Market segment – The right combination

Manufacturing – How will we deliver?

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Approaches and techniques for product design

QFD
(Quality
Function Deployment)
Computer Aided Design
and Manufacturing
(CAD/CAM)
Benchmarking

Concurrent
Engineering Engineering
Drawing
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What should we know after Product Design?

What the product is

What the product does

What its parts are

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Process design --- the HOW and Where
question?

Product
Design

Facilities
Design
How ?
Process Schedule
Where ? Design Design

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Fundamental question: make or buy?

No Can the item be

MAKE purchased?

Yes

No Can we make
BUY the item?

Yes

No Is it cheaper
BUY to make?

Yes
Is the capital to
No
BUY make it
available?

Yes
MAKE Cherbaka 2017 12
Other considerations?
Steps in process design

Identify required
processes

Select required
processes

Sequence required
processes

Locate required
processes
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Parts List

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BOM

A structured parts
list with
information
about assembly-
level

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BOM

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Indented BOM in text format

0 0021 Air Flow Regulator

1 1050 Pipe Plug
1 6023 Main Assembly
2 4250 Lock Nut
2 6022 Body Assembly
3 2200 Body
3 6021 Plunger Assembly
4 3250 Seat Ring
4 3251 O-Ring
4 3252 Plunger
4 3253 Spring
4 3254 Plunger Housing
4 3255 O-Ring
4 4150 Plunger retainer
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Steps in process design

Identify required
processes

Select required
processes

Sequence required
processes

Locate required
processes
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How will in-house products be produced?

Define elemental
operations

Identify alternative processes

for each operation

Analyze alternative
processes

Standardize
processes

Process Identification Evaluate alternative

processes

Output is a Route Sheet = Where Select processes

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Facility Layout
Route sheet

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Steps in process design

Identify required
processes

Select required
processes

Sequence required
processes

Locate required
processes
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Sequencing tools

• Assembly chart
– method to assemble the product

• Operations process chart (OPC)

– combines route sheet and assembly chart information
– provides information on the flow within the facility

• Flow process chart

– adds the time component to the OPC
– transportation, shortages, and delays

• Precedence diagram
– Graphical network-like or tree-like depiction of the assembly

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How is the product assembled?
Assembly Chart
Body

Plunger Housing

Spring

Plunger

O-Ring
SA-1 A-1
Seat ring

O-Ring

Plunger retainer

Lock nut
A-2

Pipe plug
A-3

I-1

Packaging materials
A-4
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Assembly Chart Construction
Begin with completed product and work back
to component level.

Circles and squares represent activities that

consume time.
SA-1 A-1

Circles – assembly
Squares – Inspection
Horizontal connection- sequential step A-2

A-3

I-1

A-4

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Symbols for basic production activities

Name Symbol
Operation
Inspection
Transportation
Storage
Delay

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And what is the sequence of operations?
Plunger retainer Seat Ring Plunger Plunger housing Plunger housing

Shape, Shape, Mill shape, Shape Cut to length

drill drill cut off,
…. cut off, inspect
inspect inspect Machine Grind to length

Drill Deburr

Drill, tap, ream,

Deburr
countersink

Operations Spring
Drill, tap, roll

Process Remove burrs

Chart O-Ring
SA1 A1

Locknut
A2
O-Ring
Pipe plug
A3

I1

Packaging
Vertical – manufactured A4
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Horizontal - purchased
Constructing an Operation Process Chart

Begin at upper right with components in first assembly.

Horizontal – purchased parts

Vertical – manufactured parts
Horizontal Connection – sequential step SA1 A1
A2
A3
I1
A4

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 Operations
Precedence
Diagram

Part numbers

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Precedence Diagrams provide alternative sequences

In project planning
• Critical Path diagrams
• PERT charts

Provides ONLY precedence relationships. Generalization

of assembly chart and operation process chart.
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To construct the diagram, begin with the final
completed product on the right-hand side.
0102
Figure 2.14
p. 45

50
32
0103
52
32
0100 0204
3254
0104 0404 SA-1
41
50 0304

0105

3251
3253
3255

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Schedule design --- the WHEN and HOW MUCH question?

Product
Design

Facilities
Design
Process Schedule
Design Design

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Scheduling questions (next fall in 4204!)
• WHEN to produce = production scheduling
• HOW MUCH to produce = lot sizing

• A critical problem in facility operation

• Several approaches proposed to address it
– Mathematical programming
– Optimal procedures
– Queuing models
– Approximation algorithms
– Meta-heuristics

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Production Systems Design
Machines

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Outline

Process Requirements

Scrap Estimates

Reject Allowances

Equipment Fractions

34
We need to know about the market

Firm
Demand data
Forecasted

Volume

Trend

Predictability
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GOAL: Determine the number of each equipment type
required to meet the production schedule.

1. How many components

are to be produced?

2. What are the equipment

requirements for each
operation?

3. Combine operation
requirements to obtain
overall equipment
requirements

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Not every input is transformed into output

Geometric Problems

SCRAP

Quality Problems

REJECTS

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1. How many components are to be produced?
What is the general equation for 𝑰𝒌 𝒂𝒏𝒅 𝑰𝟏 ? SCRAP
Pk = % of scrap at kth operation
Ok = desired output of non-defective product from operation k
Ik = Production input to operation k

I1 1 2 3 4 ….. n On

Products input Products expect to be scrap

On the average: 𝑶𝒌 = 𝑰𝒌 − 𝑷𝒌𝑰𝒌 = 𝑰𝒌 𝟏 − 𝑷𝒌

𝑶𝒌
Hence: 𝑰𝒌 =
𝟏 − 𝑷𝒌

For products with n sequential operations, the expect number of units

to start into production is:
𝑶#
𝑰" = 38
𝟏 − 𝑷" 𝟏 − 𝑷$ … (𝟏 − 𝑷# )
 Pk = % of scrap at kth operation
A quick example Ok = desired output of non-defective
product from operation k
If we want an output of 97,000 good units, how many
do we need to schedule? Ik = Production input to operation k
I2 I3
I1 = ? 1 2 3 O3 = 97,000
Pk = 0.04 0.01 0.03

97,000 100,000 101,010

I3 = = 100,000 I2 = = 101,010 I1 = = 105,219
1 – 0.03 1 – 0.01 1 – 0.04

97,000
Or… I1 = = 105,219
(1 - 0.03)(1 - 0.01)(1 – 0.04) 39
How can we reduce scrap?

Loosen tolerances
Automate processes
Certify Suppliers
Standardize processes
Training
Quality at the source
Higher grade of materials

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 What happens if we’re producing low volumes?

We need to determine the number of

additional units to produce when
rejects occur randomly

Reject Allowance Problem

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1. How many components are to be produced?
Reject Allowance Problem

X = the number of good units produced (Random variable)

p(x) = The Probability of producing x good units
Q = Quantity of units to produce
C(Q,x) = Cost of producing Q units, of which x are good units
R(Q,x) = Revenue from producing Q units, of which x are good units
P(Q,x) = Profit from producing Q units, of which x are good units
P(Q,x) = R(Q,x) – C(Q,x)

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Reject Allowance (contd.)

E[P(Q)] = Expected profit from producing Q units

E[P(Q)] = S P(Q,x) p(x)

x=0

= S { R(Q,x) – C(Q,x) } p(x)

x=0

The value of Q that maximizes expected profit should be

selected.
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Reject Allowance (textbook) Example

A MTO foundry has an order for 20 custom castings. The

casting process costs $1100 per unit scheduled. If the
casting is not sold, it has a recycle value of $200. The
customer will pay $2500 per casting for exactly 20
acceptable castings (will not buy more or less).

1. How many castings should be scheduled for production

to maximize expected profit?
2. What is the probability of losing money?

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•$1100 per unit scheduled
•$200 recycle value
•$2500 per casting for exactly 20 acceptable castings

Q = quantity of units to produce

x = random variable representing the number of good units produced

C(Q, x) = ? = 1100 Q

= 200 Q, x<20
R(Q, x) = ?
= 2500(20) + 200(Q-20), x>=20

= -900 Q, x<20
P(Q, x) = ?
= 46000 - 900Q, x>=20
19 Q
E[p(Q)] = ? = -å 900Q p( x) + å (46000 - 900Q ) p( x)
x =0 x = 20
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Profit, P(Q,x), from producing Q Castings with exactly x good.
Number of Castings Scheduled
20 21 22 23 24 25 26 27 28 29 30
12 -18000 -18900 -19800 -20700 -21600 -22500 -23400 -24300 -25200 -26100 -27000
13 -18000 -18900 -19800 -20700 -21600 -22500 -23400 -24300 -25200 -26100 -27000
14 -18000 -18900 -19800 -20700 -21600 -22500 -23400 -24300 -25200 -26100 -27000
15 -18000 -18900 -19800 -20700 -21600 -22500 -23400 -24300 -25200 -26100 -27000
16 -18000 -18900 -19800 -20700 -21600 -22500 -23400 -24300 -25200 -26100 -27000

# Good Castings
17 -18000 -18900 -19800 -20700 -21600 -22500 -23400 -24300 -25200 -26100 -27000
18 -18000 -18900 -19800 -20700 -21600 -22500 -23400 -24300 -25200 -26100 -27000
19 -18000 -18900 -19800 -20700 -21600 -22500 -23400 -24300 -25200 -26100 -27000
20 28000 27100 26200 25300 24400 23500 22600 21700 20800 19900 19000
21 27100 26200 25300 24400 23500 22600 21700 20800 19900 19000
22 26200 25300 24400 23500 22600 21700 20800 19900 19000
23 25300 24400 23500 22600 21700 20800 19900 19000
24 24400 23500 22600 21700 20800 19900 19000
25 23500 22600 21700 20800 19900 19000
26 22600 21700 20800 19900 19000
27 21700 20800 19900 19000
28 20800 19900 19000
29 19900 19000
30 19000

= -900 Q, x<20 46
P(Q, x) = ?
= 46000 - 900Q, 20<=x<=Q
Probability, p(x), for number of good castings, x, out of Q. (PMF)

Number of Castings Scheduled

20 21 22 23 24 25 26 27 28 29 30
12 0.05
13 0.05 0.05
14 0.05 0.05 0.05
15 0.05 0.05 0.05 0.05
16 0.1 0.05 0.05 0.05 0.05
# Good Castings

17 0.1 0.1 0.05 0.05 0.05 0.05

18 0.15 0.1 0.1 0.05 0.05 0.05 0.05
19 0.2 0.15 0.1 0.1 0.05 0.05 0.05 0.05
20 0.25 0.2 0.15 0.1 0.1 0.05 0.05 0.05 0.05
21 0.25 0.2 0.15 0.1 0.1 0.05 0.05 0.05 0.05
22 0.25 0.2 0.15 0.1 0.1 0.05 0.05 0.05 0.05
23 0.25 0.2 0.15 0.1 0.1 0.05 0.05 0.05
24 0.25 0.2 0.15 0.1 0.1 0.05 0.05
25 0.25 0.2 0.15 0.1 0.1 0.05
26 0.25 0.2 0.15 0.1 0.1
27 0.25 0.2 0.15 0.1
28 0.25 0.2 0.15
29 0.25 0.2
30 0.25

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 P(Q,x) p(x)
Number of Castings Scheduled Number of Castings Scheduled
20 21 22 23 24 25 26 27 28 29 30 20 21 22 23 24 25 26 27 28 29 30
12 -18000 -18900 -19800 -20700 -21600 -22500 -23400 -24300 -25200 -26100 -27000 12 0.05
13 -18000 -18900 -19800 -20700 -21600 -22500 -23400 -24300 -25200 -26100 -27000 13 0.05 0.05
14 -18000 -18900 -19800 -20700 -21600 -22500 -23400 -24300 -25200 -26100 -27000 14 0.05 0.05 0.05
15 -18000 -18900 -19800 -20700 -21600 -22500 -23400 -24300 -25200 -26100 -27000 15 0.05 0.05 0.05 0.05
16 -18000 -18900 -19800 -20700 -21600 -22500 -23400 -24300 -25200 -26100 -27000 16 0.1 0.05 0.05 0.05 0.05

# Good Castings

# Good Castings
17 -18000 -18900 -19800 -20700 -21600 -22500 -23400 -24300 -25200 -26100 -27000 17 0.1 0.1 0.05 0.05 0.05 0.05
18 -18000 -18900 -19800 -20700 -21600 -22500 -23400 -24300 -25200 -26100 -27000 18 0.15 0.1 0.1 0.05 0.05 0.05 0.05
19 -18000 -18900 -19800 -20700 -21600 -22500 -23400 -24300 -25200 -26100 -27000 19 0.2 0.15 0.1 0.1 0.05 0.05 0.05 0.05
20 28000 27100 26200 25300 24400 23500 22600 21700 20800 19900 19000 20 0.25 0.2 0.15 0.1 0.1 0.05 0.05 0.05 0.05
21 27100 26200 25300 24400 23500 22600 21700 20800 19900 19000 21 0.25 0.2 0.15 0.1 0.1 0.05 0.05 0.05 0.05
22 26200 25300 24400 23500 22600 21700 20800 19900 19000 22 0.25 0.2 0.15 0.1 0.1 0.05 0.05 0.05 0.05
23 25300 24400 23500 22600 21700 20800 19900 19000 23 0.25 0.2 0.15 0.1 0.1 0.05 0.05 0.05
24 24400 23500 22600 21700 20800 19900 19000 24 0.25 0.2 0.15 0.1 0.1 0.05 0.05
25 23500 22600 21700 20800 19900 19000 25 0.25 0.2 0.15 0.1 0.1 0.05
26 22600 21700 20800 19900 19000 26 0.25 0.2 0.15 0.1 0.1
27 21700 20800 19900 19000 27 0.25 0.2 0.15 0.1
28 20800 19900 19000 28 0.25 0.2 0.15
29 19900 19000 29 0.25 0.2
30 19000 30 0.25

Sumproduct
Q

E[P(Q)] = S P(Q,x) p(x)

x=0
Number of Castings Scheduled
20 21 22 23 24 25 26 27 28 29 30
Expected Profit -6500 1800 7800 11500 15200 16600 18000 19400 20800 19900 19000

48
1. How many castings should be scheduled for production to
maximize expected profit?

E[P(Q)] = S P(Q,x) p(x)

x=0
Number of Castings Scheduled
20 21 22 23 24 25 26 27 28 29 30
Expected Profit -6500 1800 7800 11500 15200 16600 18000 19400 20800 19900 19000

Maximize expected profit

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 2. What is the probability of losing money?
Number of Castings Scheduled
20 21 22 23 24 25 26 27 28 29 30
12 0.05
13 0.05 0.05
14 0.05 0.05 0.05
15 0.05 0.05 0.05 0.05
16 0.1 0.05 0.05 0.05 0.05
# Good Castings

17 0.1 0.1 0.05 0.05 0.05 0.05

18 0.15 0.1 0.1 0.05 0.05 0.05 0.05
19 0.2 0.15 0.1 0.1 0.05 0.05 0.05 0.05
20 0.25 0.2 0.15 0.1 0.1 0.05 0.05 0.05 0.05
21 0.25 0.2 0.15 0.1 0.1 0.05 0.05 0.05 0.05
22 0.25 0.2 0.15 0.1 0.1 0.05 0.05 0.05 0.05
23 0.25 0.2 0.15 0.1 0.1 0.05 0.05 0.05
24 0.25 0.2 0.15 0.1 0.1 0.05 0.05
25 0.25 0.2 0.15 0.1 0.1 0.05
26 0.25 0.2 0.15 0.1 0.1
27 0.25 0.2 0.15 0.1
28 0.25 0.2 0.15
29 0.25 0.2 50
30 0.25
So, how many units of equipment do we need?

Basic Model for the Machine Fraction

F = No. of machines required per shift
S = Standard time (in minutes) per unit produced
Q = No. of units to be produced per shift (desired production)
E = Actual performance, a percentage of standard time
H = Amount of time (in minutes) available per machine
R = Reliability of machine, a percent of “uptime”
What you need

𝑺𝑸 Total time required to perform per shift

𝑭=
𝑬𝑯𝑹
The total time that one machine is “available” per shift
What you have

* Rounded up to the next integer Þ “Equipment Required” 51

Calculate how many milling
machines are needed

2.8 minutes per part. 8 hr shift, 200 units to be

produced.

Machine operational 80% of time. Parts are produced at

95% the standard rate. How many machines are required?

52
Let’s calculate how many milling
machines do we need
S H Q
2.8 minutes per part. 8 hr shift, 200 units to be
produced.
R
Machine operational 80% of time. Parts are produced at
E F
95% the standard rate. How many machines are required?

𝑺𝑸
𝑭=
𝑬𝑯𝑹

2.8 (200)
F= = 1.535 machines (2)
0.95 (480) (0.80)

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Basic Approach…

• Advantage:
– Simple, and easy to implement
• Disadvantage:
– It is difficult to handle the case when more than one product is
processed at a given machine or workstation
– Do not consider budget, overtime, floor space and other constraints.

If necessary build a linear programming model!

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