IE0414-Lean Management

Principles and Practice

2022-2023 Fall Term
Manufacturing Facility Design
• Facility Design
• Material Flow
• Product Selection
• Activity Relationships
• Capacity Planning – Demand
Forecasting • Layout
• Make – Buy Decisions • Service Area
• Process Planning • Office Are
• Time Standards
• Space Requirement
• Takt Time
• Material Handling Equipment
• Number of machines
• Plat and Master Plan
• Assembly Line Balancing

Meyers F. & Stephens M.P.,2005, Manufacturing Facilities Design and Materials Handling, 3rd edition, Prentice Hall. 1
Takt Time
• Takt time or R value, is determined on the basis of the periodic production
requirements and the amount of operating time during the period.
• Setting takt time for each process is the key to bringing all the different
parts together at all stages of assembly at exactly the right time.
• Every Workstation in the plant needs to keep up with the takt time.
• If each process makes thing according to its takt time, production will
amount to exactly what is needed when is needed.
• Producing by takt time ensures that all production will be matched to the
final assembly process.

Meyers F. & Stephens M.P.,2005, Manufacturing Facilities Design and Materials Handling, 3rd edition, Prentice Hall. 2
Takt Time
• To meet the production goal or a persent volume every machine and
operation must keep a certain pace.
• The rate of production is called takt time or production rate.
• Example: production of 1500 grill per day or per shift

Meyers F. & Stephens M.P.,2005, Manufacturing Facilities Design and Materials Handling, 3rd edition, Prentice Hall. 3
Takt Time
• To calculate Takt Time the following information is required;
• Production goal
• Amount of time alloted for the production of units (one 10-hour shift, or two
8-hour shitfs etc.)
• Nonproductive time (breaks,team meetings, lunch etc.)
• Plant efficiency (inventory stock-out, abseentism, etc.)

𝑇𝑜𝑡𝑎𝑙 𝐷𝑎𝑖𝑙𝑦 𝑂𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 𝑇𝑖𝑚𝑒

𝑇𝑎𝑘𝑡 𝑇𝑖𝑚𝑒 =
𝑇𝑜𝑡𝑎𝑙 𝐷𝑎𝑖𝑙𝑦 𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛 𝑅𝑒𝑞𝑢𝑖𝑟𝑒𝑚𝑒𝑛𝑡

Meyers F. & Stephens M.P.,2005, Manufacturing Facilities Design and Materials Handling, 3rd edition, Prentice Hall. 4
Takt Time
Example: It is needed to product and ship 1,000 units of production
from the plant in an 8-hour shift.
• 30 min. for lunch,
• 10 min. for break,
• 8 min. for team meeting alloted during each shift.
• Plant is operating at 90 percent efficiency.

How much time do you have to produce one unit of product

Meyers F. & Stephens M.P.,2005, Manufacturing Facilities Design and Materials Handling, 3rd edition, Prentice Hall. 5
Takt Time
8 hour* 60 min. = 480 min production time
Total production time – nonproductive time
480- 30-10-8= 432 min actual work time
432*%90= 389 min effective (productive) time

Takt Time = 389min/1000units=.389 min per unit

Units per min= 1unit/.389=2,57 units per min

Of course, this rate assumes no scrap part or rework

Meyers F. & Stephens M.P.,2005, Manufacturing Facilities Design and Materials Handling, 3rd edition, Prentice Hall. 6
Calculating Scrapt or Rework Rates
• Altough undesirable, it cannot ignore demand of scrapt an rework
rates on production time.
• Quality and production departments have historical data that indicate
the level or rework and scrap for each operation.
• In determining the plant rate, or takt time, you must include scrap
and rework rates into calculations.

Meyers F. & Stephens M.P.,2005, Manufacturing Facilities Design and Materials Handling, 3rd edition, Prentice Hall. 7
Calculating Scrap or Rework Rates
• Assume scrap rate is 3 percent. Therefore, to end up with 1000 units
of product (output); you can calculate the input as;

• Keep in mind that, if additional operations are performed, each

operation produce scarp. For example; if two more steps are
performed with scarp rates 2,5 percent and 0,5 percent, then you
calculate input as;

Meyers F. & Stephens M.P.,2005, Manufacturing Facilities Design and Materials Handling, 3rd edition, Prentice Hall. 8
Calculating Scrap or Rework Rates
• General formula is stated as;

• Takt time is now calculated on the basis of 1063 units:

Meyers F. & Stephens M.P.,2005, Manufacturing Facilities Design and Materials Handling, 3rd edition, Prentice Hall. 9
Assembly and Packout Process Analysis
• Once all parts are produced by the fabrication departments or
received from the suppliers and available for assembly, new analytical
tools are needed.
• Subassembly, welding, painting, final assembly, and packout are all
functions included in this area of the plant.

Meyers F. & Stephens M.P.,2005, Manufacturing Facilities Design and Materials Handling, 3rd edition, Prentice Hall. 10
The Assembly Chart
• The assembly chart (Figure 4-8) shows the sequence of operations in
putting together the product.
• Using the exploded drawing (Figure 2-3a) and the parts list (Figure 2-
4), the layout designer will diagram the assembly process.
• The sequence of assembly may have several alternatives. Time
standards are required to decide which sequence is best. This process
is known as assembly line balancing.

Meyers F. & Stephens M.P.,2005, Manufacturing Facilities Design and Materials Handling, 3rd edition, Prentice Hall. 11
Meyers F. & Stephens M.P.,2005, Manufacturing Facilities Design and Materials Handling, 3rd edition, Prentice Hall. 12
Meyers F. & Stephens M.P.,2005, Manufacturing Facilities Design and Materials Handling, 3rd edition, Prentice Hall. 13
Time Standards for Every Task
• The tasks should be as small as possible (see Figure 4-9). The time
standard setting techniques used for assembly line design are from
either a predetermined time standard system or standard data.

Meyers F. & Stephens M.P.,2005, Manufacturing Facilities Design and Materials Handling, 3rd edition, Prentice Hall. 14
Assembly Line Balancing
• The purposes of the assembly line balancing technique are
• To equalize the workload among the assemblers
• To identify the bottleneck operation
• To establish the speed of the assembly line
• To determine the number of workstations
• To determine the labor cost of assembly and packout
• To establish the percentage workload of each operator
• To assist in plant layout
• To reduce production cost

Meyers F. & Stephens M.P.,2005, Manufacturing Facilities Design and Materials Handling, 3rd edition, Prentice Hall. 15
Assembly Line Balancing
• The objective of assembly line balancing is to give each operator as
close to the same amount of work as possible.
• The workstation (or stations) with the largest time requirement is
designated as the 100 percent station and limits the output of the
assembly line.
• If engineers want to improve the assembly line (reduce costs), they
concentrate on the 100 percent station.

Meyers F. & Stephens M.P.,2005, Manufacturing Facilities Design and Materials Handling, 3rd edition, Prentice Hall. 16
Calculating the Efficiency of the Assembly Line

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Assembly Line Balance

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