Plant Design Day 6-7 Lab - Resource and Space Determination

Mechanical Engineering
Day 6/7
Technical Documentation,
Resource Determination, Space Determination
A Vocational Degree programme developed by MCAST

Technical documentation
Technical documentation determines how product will be
produced
• Gives product’s physical specifications
– Example: Dimensions, shape, surface roughness,
material etc.
• Define product by mechanical drawing
• Define process plan by technological documentation
• Done often on computer
–Computer-Aided Design (CAD)
–Computer-Aided Manufacturing (CAM)
A Vocational Degree programme developed by MCAST 2

Mechanical Production Drawings
• Production drawings (sometimes called Working drawings) are
the complete set of drawings specifying the manufacture and
assembly of a product.
• Production Drawings set consists of multiple drawings, on
multiple sheets.
• Besides graphic part, production drawings may contain written
instructions.
A set of Production Drawings has three main parts:

1. Detail drawings of each non-standard part, usually one part per
sheet.
2. An assembly drawing (or subassembly drawings) showing all
parts in a single drawing.
3. A parts list called Bill of materials (BOM).

Example of detail technical drawing - Isometric

Example of detail technical drawing - Assembly section

Exploded assembly drawing of the electrical switch

Exploded subassembly drawing of the electrical switch

Detailed Part Drawing: Electrical switch

Bill of material (BOM)
The parts list provides a listing of the component parts
of a product. A parts list can include part number, part
name, number of parts per product, and drawing
references, even a make or buy decisions.

Example - Butterfly Valve
Isometric
drawing
Half-
sectioned
isometric
Exploded
assembly
drawing

Example: The technological process of bolts fabrication

One possible sequence for turning operation:

Example:
Different
variants for one
part machining
Number of
variants:
n = 3! = 6

Example: Turning sequence for complex shape production

Example: Variants of production plan
Variant I Variant II
10. Cutting 10. Cutting
20. Turning I 20. Turning I
30. Turning II 30. Turning II
40. Milling 40. Drilling
50. Handwork 50. Drilling
60. Drilling 60. Milling
70. Drilling 70. Handwork

Additional clamping system

Example: Driving shaft
working drawing

Process plan
10. CUTTING

20. MACHINING OF FACES

30. TURNING
40. TURNING

60. MILLING

70. GEAR MACHINING

80. CYLINDRICAL GRINDING

Part name: Material: Batch size: z ◼ Designed: Date:
PROCESS Driving shaft 42CrMo4 20 dr.sc.Nikola Gjeldum 10. 03. 2012.
Part number: Weight: Raw material dimension: Approved: Page/Pages:
PLAN 56-120:15 7,20 kg 55 x 3000 dr.sc. Ivica Veža 1/1

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◼  

Space Requirements
In manufacturing and office environments, space requirements

should be determined for:
• Equipment Requirements
• Employee Requirements
• Auxiliary Space Requirements
• Warehouse Requirements
Determination of space requirements should be done after:

➢ Determination of the Production Rate
➢ Determination of Economic Order Quantity (EOQ)

Determination of the Production Rate
• The production rate of a department is a major determinant of the

amount of space required.
• The production rate of a processing station is the number of units
produced per time unit.
• The production rate can be determined by customer, or can be
derived from a forecast of the finished product.

Yield (Y), is defined as the number of units coming out of a process
divided by the number of units going into that process over a
specified period of time.
𝒐𝒖𝒕 𝒔𝒄𝒓𝒂𝒑
𝒀= =𝟏−
𝒊𝒏 𝒊𝒏
Example: During the transformation of 352 semi finished parts, 347 finished parts
were produced and 5 parts were scrapped because defective. Calculate the yield
of the process Y.
𝟑𝟒𝟕
𝒀= = 𝟎, 𝟗𝟖𝟓𝟖
𝟑𝟓𝟐

Defects per Unit (DPU) is the ratio between the number of defects
and by the number of products.
𝑫𝒆𝒇𝒆𝒄𝒕𝒔
𝑫𝑷𝑼 =
𝑼𝒏𝒊𝒕𝒔 𝒊𝒏
Example: During the transformation of 352 semi finished parts, 347 finished parts
were produced and 5 parts were scrapped because defective. Calculate the yield
of the process Y.
𝟓
𝑫𝑷𝑼 = = 𝟎, 𝟎𝟏𝟒𝟐𝟎
𝟑𝟓𝟐

Production Rate Requirements – Yield
Let’s consider the ith-machine or workplace, where:
Pi – number of items worked @ WPi (input to operation i)
si – fraction of items scrapped @ WPi (it is the DPU)
Oi – number of items successfully worked @ WPi (output of
operation i)
Then the yield of the process is defined as
𝑶𝒊
𝒀𝒊 = Pi WPi Oi
𝑷𝒊
Since 𝑂𝑖 = 𝑃𝑖 − 𝑠𝑖 𝑃𝑖 = 𝑃𝑖 (1 − 𝑠𝑖 ) it can be calculated as

Pisi
𝑷𝒊 (𝟏−𝒔𝒊 )
→ 𝒀𝒊 = = 𝟏 − 𝒔𝒊
𝑷𝒊
Example 1 WP1 WP2
The operation process chart is shown
on picture.
P1s1 P2s2
The percentage of rejected parts at (4)
processes 1, 2, 3 and 4 are 7%, 4%, O
6% and 5%, respectively. WP3 WP4
(1)
P3s3 P4s4
The annual operating time is 2800 hours, and the annual demand forecast
for the product is 580000 units. Due to possible forecasting errors, 8000
additional units per year are required.
Find the production rate at each station.
Note. For assembly of one finished product, 4 parts have to be machined
on processes 1 and 2, and 1 has to be machined in process 3.

Example 1 - Solution WP1 WP2
580000 + 8000
O= = 210 pcs/hr. P1s1 P2s2
2800 (4)
O 210
O
P4 = = = 221,06 pcs/hr. WP3 WP4
(1 − s4 ) 0,95 (1)
P3s3 P4s4
For assembly of one finished product,
4 parts have to be machined on process 2
1 has to be machined in process 3
P4 221,06
P4 = O3 P3 = = = 235,16 pcs/hr.
(1 − s3 ) 0,94
O2 = 4O3 4P4 4  221,06
P2 = = = 921,08 pcs/hr.
(1 − s2 ) 0,96
P2 = O1 P2 921,08
P1 = = = 990,41 pcs/hr.
(1 − s1) 0,93
Example 2 - Processes in line
Consider a product that requires 6 processes, in line.
After the operation is performed, each unit is inspected. If the demand for
this product is 5000 units per month.
Calculate production input P1.
P1 WP1 WP2 WP3 WP4 WP5 WP6 O
P1s1 P2s2 P3s3 P4s4 P5s5 P6s6
Process Scrap Output Input

6 4% 5000 5208
5 3% 5208 5369
4 5% 5369 5652
3 4% 5652 5888
2 2% 5888 6008
1 1% 6008 6068
Example 2 - Solution 𝑂4 𝑂5 𝑂6
𝑃4 = 𝑂3 = 𝑃5 = 𝑂4 = 𝑃6 = 𝑂5 =
𝑦4 𝑦5 𝑦6
P1 WP1 WP2 WP3 WP4 WP5 WP6 O
P1s1 P2s2 P3s3 P4s4 P5s5 P6s6
Process Scrap Yield =1-s Output Input

6 4% 0.96 5000 5208
5 3% 0.97 5208 5369
4 5% 0.95 5369 5652
3 4% 0.96 5652 5888
2 2% 0.98 5888 6008
1 1% 0.99 6008 6068
𝑂 𝑝𝑐𝑠
𝑃1 = = 6068
(1 − 𝑠1 )(1 − 𝑠2 )(1 − 𝑠3 )(1 − 𝑠4 )(1 − 𝑠5 )(1 − 𝑠6 ) 𝑚𝑜𝑛𝑡ℎ
Production Rate Requirements – Processes in line
P1 1 2 ….. n-1 n On
P1s1 P2s2 Pn-1sn-1 Pnsn
𝑂𝑛 𝑂𝑛
𝑃1 = =
1 − 𝑠1 1 − 𝑠2 ⋯ (1 − 𝑠𝑛−1 )(1 − 𝑠𝑛 ) ς𝑖 𝑌𝑖
→ In a process in line the total yield is the product of the yield of each
machine/process
𝒀 = ෑ 𝒀𝒊
𝒊
Production Rate Requirements with Rework
Pi – production input to operation i

si – fraction of Pi lost (scrap)
ri – fraction of Pi back to rework
Mi – material flow between operation i and inspection j
Oi – output of process i
If we consider the red node:
𝑂𝑖 = 𝑀𝑖 − 𝑀𝑖 𝑠𝑖 − 𝑀𝑖 𝑟𝑖
MIrI
𝑂𝑖 = 𝑀𝑖 (1 − 𝑠𝑖 − 𝑟𝑖 )
𝑶𝒊
→ 𝑴𝒊 =
(𝟏−𝒔𝒊 −𝒓𝒊 )
MI If we consider the green node:
PI WPI InsI OI 𝑷𝒊 = 𝑴𝒊 (𝟏 − 𝒓𝒊 )
The Yield can be calculated as
𝑂𝑖 𝑀𝑖 (1 − 𝑠𝑖 − 𝑟𝑖 ) 𝟏 − 𝒔𝒊 − 𝒓 𝒊
MI s I 𝑌= = →𝒀=
𝑃𝑖 𝑀𝑖 (1 − 𝑟𝑖 ) 𝟏 − 𝒓𝒊
Example 3 - Rework
Consider a product that requires a single M1r1
operation. After the operation is performed,
each unit is inspected.
A unit passes inspection with probability M1
91%, is scrapped with probability 2%, or has P1 WP1 Ins1 O1
to be reworked with probability 7%.
If the demand for this product is 45000 units
per year and the annual operating time is
2800 hours, determine the production rate M1s1
at the processing station.
𝑝𝑐𝑠
45000 ൗ𝑦𝑒𝑎𝑟 𝑝𝑐𝑠
𝑂1 = = 16.07 ൗℎ𝑟 Which is the answer?
ℎ𝑟
2800 ൗ𝑦𝑒𝑎𝑟
𝑝𝑐𝑠
𝑂1 16.07 ൗℎ𝑟 𝑝𝑐𝑠
𝑀1 = → 𝑀1 = = 17.66 ൗℎ𝑟
(1 − 𝑟1 − 𝑠1 ) (1 − 0.07 − 0.02)
𝑝𝑐𝑠 𝑝𝑐𝑠
𝑃1 = 𝑀1 1 − 𝑟1 → 𝑃1 = 17.66 ൗℎ𝑟 ∙ 0.93 = 16.43 ൗℎ𝑟

Example 4 - Rework
Consider the ith operation on a line Miri
production. After the operation is performed,
each unit is inspected.
A unit is scrapped with probability 1% and M1 Ins.
has to be reworked with probability 49%. Pi WPi i Oi
If the demand for this product is 45000 units
per year and the annual operating time is
2800 hours, determine the production rate at
the processing station. Misi
Determine the demand at WPi-1. 𝑀𝑖 is the number of parts, good and bad
𝑝𝑐𝑠 produced by WPi. Among the bad ones @Ii
45000 ൗ𝑦𝑒𝑎𝑟 𝑝𝑐𝑠 some will be scrapped part reworked.
𝑂𝑖 = = 16.07 ൗℎ𝑟
2800 ℎ𝑟ൗ𝑦𝑒𝑎𝑟
𝑝𝑐𝑠
𝑂𝑖 16.07 ൗℎ𝑟 𝑝𝑐𝑠 Production rate @WPi
𝑀𝑖 = → 𝑀𝑖 = = 32.14 ൗℎ𝑟 to fulfill the demand Oi
(1 − 𝑟𝑖 − 𝑠𝑖 ) (1 − 0,49 − 0,01)
𝑝𝑐𝑠 𝑝𝑐𝑠
𝑂𝑖−1 = 𝑃𝑖 = 𝑀𝑖 1 − 𝑟𝑖 → 𝑃𝑖 = 32.14 ൗℎ𝑟 ∙ 0,51 = 16.39 ൗℎ𝑟 Demand @WPi-1

6σ metric
First Pass Yield or first time yield (FPY) also known as Throughput
Yield (TPY), is defined as the number of units coming out of a
process without being scrapped or reworked divided by the number
of units going into that process over a specified period of time.
𝒊𝒏 − 𝒔𝒄𝒓𝒂𝒑 − 𝒓𝒆𝒘𝒐𝒓𝒌 𝒔𝒄𝒓𝒂𝒑 + 𝒓𝒆𝒘𝒐𝒓𝒌

𝑭𝑷𝒀 = =𝟏−
𝒊𝒏 𝒊𝒏
It provides more information than the classic Yield metric, which considers the
number of defective units rather than the total number of defects occurring on
those units.
The classic yield estimate also often only considers defects that are passed onto
the customer, ignoring defects that are corrected (reworked), a source of internal
waste.
6σ metric
EXAMPLE: How to calculate FPY
During the transformation of 352 semi finished parts,98 parts were
reworked, 347 finished parts were produced and 5 parts were scrapped
because defective. Calculate the Throughput Yield of the process FPY.
𝟑𝟓𝟐 − 𝟗𝟖 − 𝟓
𝑭𝑷𝒀 = = 𝟎, 𝟕𝟎𝟕𝟒
𝟑𝟓𝟐

6σ metric
The hidden factory is a

natural outgrowth of a
system’s inability to
correctly comply with
required specifications the
first time through the
process.
Here and there throughout organizations, rework and fix practices arise and
become engrained as “that’s just the way we do it” parts of the standard practices.
But if you measure yield by using the first-time yield method you naturally
objectively review and acknowledge process effectiveness.
6σ metric
Complex processes are frequently a sequence of simpler
processes.
Rolled throughput yield (RTY) is a way Six Sigma quantifies the
complexity of a system is to count the number of processes
involved.
𝑹𝑷𝒀 = ෑ 𝑭𝑷𝑰𝒊
𝒊

6σ metric
EXAMPLE: How to calculate RPY
The supply department of a company purchases goods following the
following procedure. TPY are indicated. Calculate RTY.
That means that the chance of a purchase order going through the process
the first time with no rework or scrap is only 51.8 percent! (The last
“confirmation” step in the process acts as a final test. This last step has a
90-percent yield, so you know a lot of hidden factory stuff must be going on
to drop the RTY to 51.8 percent.)
6σ metric
Even if the first time yields of the individual process steps are high, if the
overall process becomes more and more complex, the system rolled
throughput yield will continue to erode.
This charts shows how complexity

degrades RTY for different levels of
individual first time yield.
For very complex systems — such as automobiles, aircraft, data switching

systems, enterprise-level business processes, and so on — a very high
individual first time yield must be achieved in order to have any hope of an
acceptable rolled throughput yield.
6σ metric
EXAMPLE: How to calculate Yield, FPY and RTY
Consider the following layout. Calculate Yield and TPY for each process,
and determine the RTY for the entire processing line.
In order to calculate the metrics requested, we need to find the number of

parts that enter in each process. Than apply
𝒀= =𝟏−
𝒊𝒏 𝒊𝒏
𝒊𝒏 − 𝒔𝒄𝒓𝒂𝒑 − 𝒓𝒆𝒘𝒐𝒓𝒌 𝒔𝒄𝒓𝒂𝒑 + 𝒓𝒆𝒘𝒐𝒓𝒌

𝑭𝑷𝒀 = =𝟏−
𝒊𝒏 𝒊𝒏
6σ metric
EXAMPLE: How to calculate Yield, TPY and RTY
Starting from right to left
→ In3=Out3 + Scrap3→ In3= 37+9=46.
→ In2=Out3 + Scrap3, being In3=Out2 → In2= 46+0=46.
46 46
𝟒𝟔
𝒀𝟏 = = 𝟎. 𝟗𝟐𝟎
𝟓𝟎
𝟒𝟔
𝒀𝟐 = = 𝟏. 𝟎𝟎𝟎
𝒐𝒖𝒕 𝒔𝒄𝒓𝒂𝒑 𝟒𝟔
𝒀= =𝟏− 𝟑𝟕
𝒊𝒏 𝒊𝒏 𝒀𝟑 = = 𝟎. 𝟖𝟎𝟒
𝟒𝟔 Please note that:
𝟑𝟕 𝟒𝟔 𝟒𝟔 𝟑𝟕 𝟑𝟕
𝒀𝒐𝒗𝒆𝒓𝒂𝒍𝒍 = = 𝟎. 𝟕𝟒𝟎 ς𝒊 𝒀𝒊 = = = 𝟎. 𝟕𝟒𝟎
𝟓𝟎 𝟓𝟎 𝟒𝟔 𝟒𝟔 𝟓𝟎
6σ metric
EXAMPLE: How to calculate Yield, TPY and RTY
Starting from right to left
→ In3=Out3 + Scrap3→ In3= 37+9=46.
→ In2=Out3 + Scrap3, being In3=Out2 → In2= 46+0=46.
46 46
𝟓𝟎 − 𝟒 − 𝟔
𝑭𝑷𝒀𝟏 = = 𝟎. 𝟖𝟎𝟎
𝟓𝟎
𝟒𝟔 − 𝟎 − 𝟏𝟐
𝒊𝒏 − 𝒔𝒄𝒓𝒂𝒑 − 𝒓𝒆𝒘𝒐𝒓𝒌 𝑭𝑷𝒀𝟐 = = 𝟎. 𝟕𝟑𝟗
𝑭𝑷𝒀 =
𝒊𝒏
𝟒𝟔
𝟒𝟔 − 𝟗 − 𝟎
𝑭𝑷𝒀𝟑 = = 𝟎. 𝟖𝟎𝟒
𝟒𝟔
𝑹𝑻𝒀 = ς𝒊 𝑭𝑷𝒀𝒊 = 𝟎. 𝟖𝟎𝟎 ∙ 𝟎. 𝟕𝟑𝟗 ∙ 𝟎. 𝟖𝟎𝟒 = 𝟎. 𝟒𝟕𝟓
Example 5
Consider the assembly line in figure.
WPi si ri
M1r1 1 2% 6%
2 5% 14%
M1 3 2% 0
PA WP1 Ins1 M3r3
O1
M1s1 M3 O3
M2r2 WP3 Ins3
M2 O2 M3s3
PB WP2 Ins2
M2s2
The demand for this product is 750,000 units per year and the annual
operating time is 1,950 hours.
@WP3 2 parts from WP1 are assembled with 1 part from WP2.
Determine
➢ the production rate at each processing station.
➢ the number of units of A and B that need to be supplied.
M3r3
Example 5 - Rework
M3 Ins3
P3 WP3 O3
Consider WP3.
𝑘𝑝𝑐𝑠ൗ M3s3
750 𝑦𝑒𝑎𝑟 𝑝𝑐𝑠
𝑂3 = = 384.62 ൗℎ𝑟
ℎ𝑟
1950 ൗ𝑦𝑒𝑎𝑟
𝑝𝑐𝑠
𝑂3 384. 6 ൗℎ𝑟 𝑝𝑐𝑠 Production rate @WP3 to
𝑀3 = → 𝑀𝑖 = = 392. 45 ൗℎ𝑟 fulfill the demand O3
(1 − 𝑟𝑖 − 𝑠𝑖 ) (1 − 0 − 0,02)
𝑝𝑐𝑠
𝑃3 = 𝑀3 1 − 𝑟3 → 𝑠𝑖𝑛𝑐𝑒 𝑟3 = 0 → 𝑃3 = 𝑀3 = 392. 45 ൗℎ𝑟
@WP3 2 parts from WP1 are assembled with 1 part from WP2.
→ O1=2P3 and O2=P3

M1r1
Example 5 - Rework
M1 Ins1
𝑝𝑐𝑠 P1 WP1 O1
Consider WP1. O1=2P3 → 𝑂1 = 784. 90 Τℎ𝑟
M1s1
𝑝𝑐𝑠
𝑀1 = → 𝑀1 = = 853. 15 ൗℎ𝑟 fulfill the demand O1
(1 − 𝑟1 − 𝑠1 ) (1 − 0.06 − 0,02)
𝑝𝑐𝑠 𝑝𝑐𝑠 Supply required

𝑃1 = 𝑀1 1 − 𝑟1 → 𝑃𝐴 = 853. 15 ൗℎ𝑟 ∙ 0.94 = 794. 59 ൗℎ𝑟 @WP1

M2r2
Example 5 - Rework
M2 Ins2
𝑝𝑐𝑠 P1 WP2 O2
Consider WP2. O2=P3 → 𝑂2 = 392. 45 Τℎ𝑟
M2s2
𝑝𝑐𝑠
𝑀2 = → 𝑀2 = = 484. 51 ൗℎ𝑟 fulfill the demand O2
(1 − 𝑟2 − 𝑠2 ) (1 − 0.14 − 0,05)
𝑝𝑐𝑠 𝑝𝑐𝑠 Supply required

𝑃2 = 𝑀2 1 − 𝑟2 → 𝑃𝐵 = 484. 51 ൗℎ𝑟 ∙ 0.86 = 416. 68 ൗℎ𝑟 @WP2

Overall Equipment Effectiveness (OEE) is a way to monitor and
improve the efficiency of your manufacturing process.
Developed in the mid 1990’s, OEE has become an accepted management
tool to measure and evaluate plant floor productivity.
OEE is broken down into three measuring metrics of Availability,
Performance, and Quality.
𝑶𝑬𝑬 = 𝑨𝒗𝒂𝒊𝒍𝒂𝒃𝒊𝒍𝒊𝒕𝒚 ∙ 𝑷𝒆𝒓𝒇𝒐𝒓𝒎𝒂𝒏𝒄𝒆 ∙ 𝑸𝒖𝒂𝒍𝒊𝒕𝒚
Alternatively, and often easier, OEE is calculated as
minimum time needed to produce the parts under optimal conditions
𝑂𝐸𝐸 =
the by the actual time needed to produce the parts
For example:
A manufacturing process is operating 8 hr/day producing a part every 2
seconds.
Knowing that under optimal conditions the process was able to increase
the production rate to 0.75 pcs/s, calculate the OEE of the process.
ℎ𝑟 𝑠 𝑠
➢ Actually the process is working 8 ∙ 3600 = 28,800 to
𝑑𝑎𝑦 ℎ𝑟 𝑑𝑎𝑦
manufacture
𝑠 1 𝑝𝑐𝑠 𝑝𝑐𝑠
→ 𝑃𝑎𝑐𝑡𝑢𝑎𝑙 = 28,800 ∙ = 14,400
𝑑𝑎𝑦 2𝑠 𝑑𝑎𝑦
➢ Under optimal conditions the time required to manufacture the same
number of parts is
14,400 𝑝𝑐𝑠
→ 𝑡𝑜𝑝𝑡𝑖𝑚𝑢𝑚 = 𝑝𝑐𝑠 = 19,200 𝑠
0.75 𝑠
19,200 𝒔
→𝑶𝑬𝑬 =
28,800 s = 𝟎. 𝟔𝟔𝟕
Availability
The Availability portion of the OEE Metric represents the percentage of

scheduled time that the operation is available to operate.
The Availability Metric is a pure measurement of Uptime that is designed to
exclude the effects of Quality and Performance.
The losses due to wasted availability are called availability losses.
𝒐𝒑𝒆𝒓𝒂𝒕𝒊𝒏𝒈_𝒕𝒊𝒎𝒆 𝒖𝒑𝒕𝒊𝒎𝒆
𝑨𝒗𝒂𝒊𝒍𝒂𝒃𝒊𝒍𝒊𝒕𝒚 = =
𝒔𝒄𝒉𝒆𝒅𝒖𝒍𝒆𝒅_𝒕𝒊𝒎𝒆 𝒖𝒑𝒕𝒊𝒎𝒆 + 𝒅𝒐𝒘𝒏𝒕𝒊𝒎𝒆
Availability
Considering the operating time in the figure, we know that the process will
be up between failures and down during repair.
We can define the Mean Time Between Failures as

σ𝑖 𝑇𝐵𝐹𝑖
𝑀𝑇𝐵𝐹 =
𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑓𝑎𝑖𝑙𝑢𝑟𝑒𝑠
And the Mean Time to Repair as
σ𝑖 𝑇𝑇𝑅𝑖
𝑀𝑇𝑇𝑅 =
𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑓𝑎𝑖𝑙𝑢𝑟𝑒𝑠
Then we can define statistically the availability of the process as

𝑴𝑻𝑩𝑭
𝑨𝒗𝒂𝒊𝒍𝒂𝒃𝒊𝒍𝒊𝒕𝒚 =
𝑴𝑻𝑩𝑭 + 𝑴𝑻𝑻𝑹
→ the availability of a process is the probability for the process to be
operating.
Performance and productivity
Also known as "process rate", the Performance portion of the OEE

Metric represents the speed at which the Work Centre runs as a
percentage of its designed speed.
𝒂𝒄𝒕𝒖𝒂𝒍 𝒔𝒑𝒆𝒆𝒅 𝒐𝒇 𝒕𝒉𝒆 𝑾𝒐𝒓𝒌 𝑪𝒆𝒏𝒕𝒓𝒆
𝜼=
𝒅𝒆𝒔𝒊𝒈𝒏 𝒔𝒑𝒆𝒆𝒅
The Performance Metric is a pure measurement of speed that is designed

to exclude the effects of Quality and Availability.
The losses due to wasted performance are also often called speed losses.
In practice it is often difficult to determine speed losses, and a common
approach is to merely assign the remaining unknown losses as speed
losses.
It can be calculated as
𝑃𝑎𝑟𝑡𝑠_𝑤𝑜𝑟𝑘𝑒𝑑 ∙ 𝑆𝑡𝑎𝑛𝑑𝑎𝑟𝑑_𝑡𝑖𝑚𝑒
𝜂=
𝑜𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔_𝑡𝑖𝑚𝑒
Example - Performance and productivity
A Work Centre is scheduled to run 5 days a week, on an 8 hour (480-

minute) daily shift with a 30 minute scheduled break.
During last week there where 300 minutes of unscheduled downtime.
The Standard production Rate for the part being produced is 40 pcs/hr.
The number of units worked (good and bad) during the week was 1228.
Calculate the performance 𝜂
𝑃𝑎𝑟𝑡𝑠_𝑤𝑜𝑟𝑘𝑒𝑑 ∙ 𝑆𝑡𝑎𝑛𝑑𝑎𝑟𝑑_𝑡𝑖𝑚𝑒
𝜂=
𝑜𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔_𝑡𝑖𝑚𝑒
1 1 𝑚𝑖𝑛
𝑡𝑠𝑡𝑎𝑛𝑑𝑎𝑟𝑑 = → 𝑡𝑠𝑡𝑎𝑛𝑑𝑎𝑟𝑑 = 𝑝𝑐𝑠 = 1.5 𝑝𝑐𝑠
𝑃𝑅𝑠𝑡𝑎𝑛𝑑𝑎𝑟𝑑 40
𝑚𝑖𝑛
𝑚𝑖𝑛 𝑚𝑖𝑛
𝑡𝑜𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 = 480 − 30 ∙ 5 − 300 = 1950
𝑤𝑒𝑒𝑘 𝑤𝑒𝑒𝑘
𝑝𝑐𝑠 𝑚𝑖𝑛
1228 ∙ 1.5
𝑤𝑒𝑒𝑘 𝑝𝑐𝑠
𝜂= = 0.945
𝑚𝑖𝑛
1950
𝑤𝑒𝑒𝑘
Quality
The Quality portion of the OEE Metric represents the yield of the process
→ Good Units produced as a percentage of the Total Units Started.
The Quality Metric is a pure measurement of Process Yield that is designed
to exclude the effects of Availability and Performance.
The losses due to defects and rework are called quality losses and quality
stops.
𝒀= =𝟏−
𝒊𝒏 𝒊𝒏
Reworked units which have been corrected are only measured

as unscheduled downtime while units being scrapped can affect both
operation time and unit count.
Example 6 - OEE
Consider the ith operation on a line production. After the operation is
performed, each unit is inspected.
The operation is performed on a machine that has a MTTB of 900min and a
MTTR of 30 min.
At inspection, 3% of the products are scrapped and 10% have to be
reworked.
Knowing that Miri
• the standard production time is 1.2 min/pcs
• the demand for this product is 300 pcs/shift
• the net available time of the shift is 430 min. Mi Ins.
Pi WPi i Oi
Determine
➢ the production rate at WPi (Mi) in pcs/min.
➢ the demand at WPi-1 that supplies WPi (Pi) in pcs/min. Misi
➢ the Overall Equipment Effectiveness (OEEi) to 3 s.f..
Example 6 - OEE
Miri
MTBFi = 900min
MTTRi = 30 min.
si = 0.03
ri = 0.10 Mi Ins.
tst_i 1.2 min/pcs Pi WPi i Oi
Oi = 300 pcs/shift
the net available time of the shift is 430 min
𝑝𝑐𝑠 Misi
300 ൗ𝑠ℎ𝑖𝑓𝑡 𝑝𝑐𝑠
𝑂𝑖 = = 0.6977 ൗ𝑚𝑖𝑛
430 𝑚𝑖𝑛 ൗ𝑠ℎ𝑖𝑓𝑡
By considering the red node → 𝑀𝑖 − 𝑀𝑖 𝑟𝑖 − 𝑀𝑖 𝑠𝑖 − 𝑂𝑖 = 0
𝑝𝑐𝑠
𝑂𝑖 0.6977 ൗ𝑚𝑖𝑛 𝑝𝑐𝑠 Production rate @WPi
𝑀𝑖 = → 𝑀𝑖 = = 0.7928 to fulfill the demand Oi
(1 − 𝑟𝑖 − 𝑠𝑖 ) (1 − 0,10 − 0,02) 𝑚𝑖𝑛
By considering the green node →𝑃𝑖 + 𝑀𝑖 𝑟𝑖 − 𝑀𝑖 = 0
𝑝𝑐𝑠 𝑝𝑐𝑠 Demand @WPi-1

𝑂𝑖−1 = 𝑃𝑖 = 𝑀𝑖 1 − 𝑟𝑖 → 𝑃𝑖 = 0.7928 ൗ𝑚𝑖𝑛 ∙ 0.80 = 0.6342
𝑚𝑖𝑛
Miri
Example 6 - OEE
Mi Ins.
Pi WPi i Oi
𝑀𝑇𝐵𝐹 900 𝑚𝑖𝑛

𝐴= →𝐴= = 0.9677
𝑀𝑇𝑇𝑅 + 𝑀𝑇𝐵𝐹 30 𝑚𝑖𝑛 + 900 𝑚𝑖𝑛 Misi
𝑝𝑐𝑠 𝑚𝑖𝑛 𝑝𝑐𝑠
𝑃𝑎𝑟𝑡𝑠𝑤𝑜𝑟𝑘𝑒𝑑 ∙ 𝑡𝑠𝑡𝑎𝑛𝑑𝑎𝑟𝑑 𝑃 [
𝑖 𝑠ℎ𝑖𝑓𝑡 ] ∙ 𝑡 [
𝑠𝑡𝑖 𝑝𝑐𝑠 ] 𝑃𝑖 𝑠ℎ𝑖𝑓𝑡 ]
[
𝜂= →𝜂= = 𝑝𝑐𝑠
𝐷𝑒𝑠𝑖𝑔𝑛 𝑡𝑖𝑚𝑒 𝑝𝑐𝑠 𝑚𝑖𝑛 𝑀
𝑀𝑖 [ ] ∙ 𝑡𝑠𝑡𝑖 [ ] 𝑖 𝑠ℎ𝑖𝑓𝑡 ]
[
𝑠ℎ𝑖𝑓𝑡 𝑝𝑐𝑠
By considering the green node →𝑃𝑖 = 𝑀𝑖 1 − 𝑟𝑖 → 𝜼 = 𝟏 − 𝒓𝒊
𝑜𝑢𝑡 𝑂𝑖
𝑌= =
𝑖𝑛 𝑃𝑖
By considering the red node →𝑂𝑖 = 𝑀𝑖 (1 − 𝑠𝑖 − 𝑟𝑖 )
𝟏−𝒓𝒊 −𝒔𝒊
By considering the green node →𝑃𝑖 = 𝑀𝑖 1 − 𝑟𝑖 → 𝒀 =
𝟏−𝒓𝒊
𝟏−𝟎.𝟏𝟎−𝟎.𝟎𝟐
𝑶𝑬𝑬 = 𝑨 ∙ 𝜼 ∙ 𝒀 → 𝑶𝑬𝑬 = 𝟎. 𝟗𝟔𝟕𝟕 𝟏 − 𝟎. 𝟏𝟎 = 𝟎. 𝟗𝟎𝟗𝟒
𝟏−𝟎.𝟏𝟎
Example 6 - OEE
OEE metric formula value
𝑀𝑇𝐵𝐹
Availability 𝐴= 0.9677
𝑀𝑇𝑇𝑅 + 𝑀𝑇𝐵𝐹
Performance 𝜂 = 1−𝑟 0.90
1−𝑟−𝑠
Quality 𝑌= 0.9778
1−𝑠
OEE 𝑂𝐸𝐸 = 𝐴 ∙ 𝜂 ∙ 𝑌 0.9094
Please note that:

➢ 100% Availability = No Down Time Losses
→ Machine has been running without any recordable stops
➢ 100% Performance = No Speed Losses

→ Machine has been running at the standard speed (with no rework)
➢ 100% Quality = No Quality Losses

→ Machine has not produced any bad parts
Example 7 – Takt Time
The working schedule of a manufacturing facility is of 480 minutes per shift
(gross time) less 30 minutes lunch, 30 minutes for breaks (2 × 15 mins), 10
minutes for a team briefing and 10 minutes for basic maintenance checks.
If customer demand is 200 units a day and one shift was being run,
calculate the takt time.
Solution
Takt time is the rate at which you need to complete a product to meet
customer demand. It can be calculated as
𝑡𝑛𝑒𝑡_𝑎𝑣𝑎𝑖𝑙𝑎𝑏𝑙𝑒
𝑡𝑡𝑎𝑘𝑡 =
𝐷𝑒𝑚𝑎𝑛𝑑
Where the net available time is defined as the amount of time available for
work excluding break times and any expected scheduled activity
(meetings, scheduled maintenance, drills, team briefings, etc.).
1 𝑠ℎ𝑖𝑓𝑡 𝑚𝑖𝑛 𝑚𝑖𝑛 𝑚𝑖𝑛
𝑡𝑛𝑒𝑡_𝑎𝑣𝑎𝑖𝑙𝑎𝑏𝑙𝑒 = 480 − 30 − 2 ∙ 15 − 10 − 10 → 𝑡𝑛𝑒𝑡𝑎𝑣𝑎𝑖𝑙𝑎𝑏𝑙𝑒 = 400
𝑑𝑎𝑦 𝑠ℎ𝑖𝑓𝑡 𝑠ℎ𝑖𝑓𝑡 𝑑𝑎𝑦
𝑚𝑖𝑛
𝑡𝑛𝑒𝑡_𝑎𝑣𝑎𝑖𝑙𝑎𝑏𝑙𝑒 400𝑑𝑎𝑦 𝑚𝑖𝑛
→ 𝑡𝑡𝑎𝑘𝑡 = → 𝑡𝑡𝑎𝑘𝑡 = 𝑝𝑐𝑠 = 2.0
𝐷𝑒𝑚𝑎𝑛𝑑 200𝑑𝑎𝑦 𝑝𝑐𝑠
Example 8 – Takt Time
The demand to a manufacturing plant is 1000 units per day.
The production is scheduled on one shift having a duration f 8 hours,
during which there is a 30 minutes lunch break, a 10 minutes personal
allowances and, on average, 8 minutes scheduled activities.
Calculate the takt time and the throughput rate the plant should produce.
Solution
1 𝑠ℎ𝑖𝑓𝑡 ℎ𝑟 𝑚𝑖𝑛 𝑚𝑖𝑛 𝑚𝑖𝑛
𝑡𝑛𝑒𝑡_𝑎𝑣𝑎𝑖𝑙𝑎𝑏𝑙𝑒 = 8 60 − 30 − 10 − 8 → 𝑡𝑛𝑒𝑡𝑎𝑣𝑎𝑖𝑙𝑎𝑏𝑙𝑒 = 432
𝑑𝑎𝑦 𝑠ℎ𝑖𝑓𝑡 ℎ𝑟 𝑠ℎ𝑖𝑓𝑡 𝑑𝑎𝑦
𝑚𝑖𝑛
𝑡𝑛𝑒𝑡_𝑎𝑣𝑎𝑖𝑙𝑎𝑏𝑙𝑒 432𝑑𝑎𝑦 𝑚𝑖𝑛
1 1 𝑝𝑐𝑠
→ 𝑅𝑡ℎ𝑟𝑜𝑢𝑔ℎ𝑝𝑢𝑡 = → 𝑅𝑡ℎ𝑟𝑜𝑢𝑔ℎ𝑝𝑢𝑡 = 𝑚𝑖𝑛 = 2.31
𝑡𝑡𝑎𝑘𝑡 0.432 𝑝𝑐𝑠 𝑚𝑖𝑛
Example 9 – How many people should we hire?
The standard production time of an assembly line is 0.13898 man-hours
per part produced.
The marketing department is forecasting a sale of 2500 pcs/day.
How many people should I hire if I estimate an OEE of 75%?
Solution
The standard time is the time required by an average skilled operator, working at
a normal pace, to perform a specified task using a prescribed method. It includes
appropriate allowances to allow the person to recover from fatigue and, where
necessary, an additional allowance to cover contingent elements which may occur
but have not been observed. → this does not take into account the ineffectiveness
of the process (unavailability of the machine, reworks and defects)
The processing lead time is the time required to complete the order (this time
considering also the ineffectiveness of the process). It can be calculated as:
𝒕𝒔𝒕𝒂𝒏𝒅𝒂𝒓𝒅
𝒕𝒍𝒆𝒂𝒅 = ∙ 𝑫𝒆𝒎𝒂𝒏𝒅
𝑶𝑬𝑬
ℎ𝑟
0.13898 𝑝𝑐𝑠 𝑝𝑐𝑠 ℎ𝑟
→ 𝑡𝑙𝑒𝑎𝑑 = ∙ 2500 = 463.27
0.75 𝑑𝑎𝑦 𝑑𝑎𝑦
to complete the daily order 463.27 hours must be worked, so if we employ workers
@ 8hr/day
𝑡𝑙𝑒𝑎𝑑
→ #𝑤𝑜𝑟𝑘𝑒𝑠 = ℎ𝑟 → #𝑤𝑜𝑟𝑘𝑒𝑠 = 57.9 𝑤𝑜𝑟𝑘𝑒𝑟𝑠
8 𝑑𝑎𝑦
Personal Requirements
 n t i  Oi 
N =  
 i =1  H 
where:
Oi - aggregate number of operation type i required on all products
manufactured per day.
ti - standard time required for an average operation Oi.
H - total production time available per day.
η - assumed production efficiency of the plant.
n - number of types of operations.

Example 9b – How many people should we hire?
The standard production time of an assembly line is 0.13898 man-hours
per part produced.
The marketing department is forecasting a sale of 2500 pcs/day.
How many people should I hire if I estimate an OEE of 75%?
Solution
 n t i  Oi 
N =  
i =1  H 
ℎ 𝑝𝑐𝑠
0.13898 𝑝𝑐𝑠∙2500𝑑𝑎𝑦
→ #𝑤𝑜𝑟𝑘𝑒𝑠 = ℎ𝑟 → #𝑤𝑜𝑟𝑘𝑒𝑠 = 57.9 𝑤𝑜𝑟𝑘𝑒𝑟𝑠
0.75∙8
𝑑𝑎𝑦
Example 1X – Conveyor belt
SuperBBQ is a company that manufactures grills.
The production is organized in 1 daily shift of 8 hours, during which there is
a programmed (paid) break of 25 minutes. Additionally, a 10-minute
personal allowance (paid) is given to each worker. During the year an
average of 3.75 hours are used for training programs, team meetings, fire
drills and other activities that require the stopping of the production. The
production is running 240 days per year.
One of their new products will be assembled on a line that will be served by
a conveyor belt on which the WIP, which has a footprint of 30x30 cm,
travels from one working-station to the other.
The daily demand forecasted for the product is 240 pcs/day.
Knowing that the MTTR is 90 min and the MTBF is 6 hrs,
A. Calculate the takt time and the throughput rate.
B. The standard production rate.
C. Set the speed of the conveyor belt (consider 10 cm distance between
WIPs).

Solution
𝑚𝑖𝑛
𝑚𝑖𝑛 𝑚𝑖𝑛 ℎ𝑟 60 𝑚𝑖𝑛
𝑡𝑛𝑜𝑡_𝑎𝑣𝑎𝑖𝑙𝑎𝑏𝑙𝑒 = 25 − 10 − 3,75 ℎ𝑟 = 50
𝑠ℎ𝑖𝑓𝑡 𝑠ℎ𝑖𝑓𝑡 𝑦𝑒𝑎𝑟 𝑠ℎ𝑖𝑓𝑡 𝑑𝑎𝑦 𝑑𝑎𝑦
1 240
𝑑𝑎𝑦 𝑦𝑒𝑎𝑟
𝑚𝑖𝑛
𝑡𝑛𝑒𝑡_𝑎𝑣𝑎𝑖𝑙𝑎𝑏𝑙𝑒 = 𝑡𝑡𝑜𝑡 − 𝑡𝑛𝑜𝑡_𝑎𝑣𝑎𝑖𝑙𝑎𝑏𝑙𝑒 → 𝑡𝑛𝑒𝑡𝑎𝑣𝑎𝑖𝑙𝑎𝑏𝑙𝑒 = 430
𝑑𝑎𝑦
𝑚𝑖𝑛
𝑡𝑛𝑒𝑡_𝑎𝑣𝑎𝑖𝑙𝑎𝑏𝑙𝑒 430 𝑚𝑖𝑛
𝑑𝑎𝑦
1 1 𝑝𝑐𝑠
𝑡𝑡𝑎𝑘𝑡 1.79 𝑚𝑖𝑛
𝑝𝑐𝑠

Solution
𝑚𝑖𝑛
𝑡𝑛𝑒𝑡_𝑎𝑣𝑎𝑖𝑙𝑎𝑏𝑙𝑒 430 𝑚𝑖𝑛
𝑑𝑎𝑦
1 1 𝑝𝑐𝑠
This is the parameters required to meet the demand in an ideal case

scenario. However, to size the conveyor’s speed we must consider the
6∙60
downtime of the line (the only loss we have) → 𝐴 = = 0,80
90+6∙60
The conveyor must be faster and provide more than 0.558 pcs/min.
𝑡∗ 1 1 𝑅𝑡ℎ𝑟𝑜𝑢𝑔ℎ𝑝𝑢𝑡
→ 𝑡𝑡𝑎𝑘𝑡 = → 𝑅𝑠𝑡𝑑 = ∗ = =
𝑂𝐸𝐸 𝑡 𝑡𝑡𝑎𝑘𝑡 ∙ 𝑂𝐸𝐸 𝑂𝐸𝐸
𝑝𝑐𝑠
0,558𝑚𝑖𝑛 𝑝𝑐𝑠
→ 𝑅𝑠𝑡𝑑 = = 0.700
0,80 𝑚𝑖𝑛
This means that from a given station 42 WIPs will pass every hour. If each WIP has
a length of 30 cm + 10 cm distancing,
𝑝𝑐𝑠 𝑚𝑖𝑛 𝑚
→ 𝑣𝑐𝑜𝑛𝑣𝑒𝑦𝑜𝑟 = 𝑅𝑠𝑡𝑑 ∙ 𝑙𝑒𝑛𝑔𝑡ℎ → 𝑣𝑐𝑜𝑛𝑣𝑒𝑦𝑜𝑟 = 0.700 ∙ 60 ∙ 0.4 𝑚 = 16.8
𝑚𝑖𝑛 ℎ𝑟 ℎ𝑟
Example 1Y – Conveyor speed
As a manufacturing engineer you are asked to design Powder Coating
system of the paint department of a manufacturing company.
Parts per Quantity to
The conveyor moves the WIP trough the Part #
hook paint
tank of the powder, where parts are
coated, trough the oven, where the paint α 1 500
is cured, till the assembly department. β 4 300
The system is complicated by multiple
γ 2 1000
parts per hook and hook spacing.
On the table provided, the daily demand δ 8 2000
is reported. ε 2 100
Your study must take into consideration
the following information: φ 1 125
• the net available time for production is 430 min/day

• In order to prevent contact, the distance between hooks is 50 cm
• Parts have to be cured for 10 minutes @ 200°
• When out of the oven, before reaching the assembly department, the
parts have to cool for 15 minutes to reach room temperature.
Determine the speed of the conveyor and the lengths of the oven and of the
cooling section.
Example 1Y – Conveyor speed
Parts per Quantity to hooks per 𝒕𝒏𝒂
Part # 𝒕𝒕 =
hook paint per day day 𝑫𝒆𝒎𝒂𝒏𝒅
α 1 500 500 1.45
β 4 300 75 0.22
γ 2 1000 500 1.45
δ 8 2000 250 0.73
ε 2 100 50 0.15
φ 1 125 125 0.36
ℎ𝑜𝑜𝑘𝑠
෍ = 4.36
𝑚𝑖𝑛
Being the distance between hooks is 50 cm, the speed of the conveyor can
𝑚 ℎ𝑜𝑜𝑘 𝑚
be calculated as 𝑣 = 0.50 ∙ 4.36 = 2.18
ℎ𝑜𝑜𝑘 𝑚𝑖𝑛 𝑚𝑖𝑛
𝐿 = 𝑣 ∙ 𝑑𝑢𝑟𝑎𝑡𝑖𝑜𝑛
→ Parts have to be cured for 10 minutes @ 200° → 𝐿𝑜𝑣𝑒𝑛 = 21.8 𝑚
→Parts have to be cooled for 15 minutes @ RT → 𝐿𝑐𝑜𝑜𝑙𝑖𝑛𝑔 = 32. 7𝑚
The company does not have all this space. Any suggestions?
Example 10 – Number of machines
The standard production time of a machine is 0.400 min/pcs.
The production engineer receives an order of 2000 pcs/day.
Knowing that:
➢ The working day is made by an 8 shift; during the shift a 30 minutes
lunch break and 2 personal allowances breaks of 10 minutes each.
➢ The MTBF is 1000 min, the MTTR is 120 min; the efficiency index is
0,90 and the yield is 0,99.
A. Calculate
1. the standard production rate
2. the takt time
3. the throughput rate
4. the number of machines required to run the order
B. Consider the number of machines is A and, per shift, calculate
1. Design Capacity
2. Effective Capacity
3. Actual Capacity
4. Design utilization
5. Effective utilization
The standard production rate is the inverse of the standard time
1 1 𝑝𝑐𝑠
→ 𝑅𝑠𝑡𝑎𝑛𝑑𝑎𝑟𝑑 = → 𝑅𝑠𝑡𝑎𝑛𝑑𝑎𝑟𝑑 = 𝑚𝑖𝑛 = 2,5
𝑡∗ 0,400 𝑝𝑐𝑠 𝑚𝑖𝑛
The Takt time is the rate at which you need to complete a product to meet
customer demand. It can be calculated as
𝑡𝑛𝑒𝑡𝑎𝑣𝑎𝑖𝑙𝑎𝑏𝑙𝑒
Where the net available time is defined as the amount of time available for
work excluding break times and any expected scheduled activity.
1 𝑠ℎ𝑖𝑓𝑡 𝑚𝑖𝑛 𝑚𝑖𝑛 𝑚𝑖𝑛
𝑡𝑛𝑎 = 480 − 30 − 2 ∙ 10 → 𝑡𝑛𝑎 = 430
𝑑𝑎𝑦 𝑠ℎ𝑖𝑓𝑡 𝑠ℎ𝑖𝑓𝑡 𝑑𝑎𝑦
𝑚𝑖𝑛
𝑡𝑛𝑎 430 𝑚𝑖𝑛
𝑑𝑎𝑦
The throughput rate is the inverse of the takt time

1 1 𝑝𝑐𝑠
This means that, with the time constrains we have (work schedule) to run
the order on time we must manufacture each part in 0,215 min.
But our machine, with can produce at fastest in 0,400 min.
In reality the machine takes more, as there are losses due to unavailability
of the machine, inefficiencies and yield loss. The real production time has
to take into consideration these losses.
𝑀𝑇𝐵𝐹 1000
𝑂𝐸𝐸 = 𝐴𝜂𝑌 = 𝜂𝑌 → ∙ 0,90 ∙ 0,95 = 0,763
𝑀𝑇𝐵𝐹+𝑀𝑇𝑇𝑅 1000+120
𝑚𝑖𝑛
𝑡∗ 0,400 𝑝𝑐𝑠 𝑚𝑖𝑛
→ 𝑡𝑟𝑒𝑎𝑙 = → 𝑡𝑟𝑒𝑎𝑙 = = 0,524
𝑂𝐸𝐸 0,904 𝑝𝑐𝑠
Now let N be the number of machines. If to producing a part on 1

machine requires 3 minutes (real time) and I need to make it in 1 minute
(takt time), then I will make it if I use 3 machines. Let’s put this in a formula.
𝑡∗
→ 𝑁 ∙ 𝑡𝑡𝑎𝑘𝑡 = 𝑡𝑟𝑒𝑎𝑙 =
𝑂𝐸𝐸
𝒕∗ 0,400
→𝑵 = → N = 0,904∙0,215 = 2,44 → N=3
𝑶𝑬𝑬∙𝒕𝒕𝒂𝒌𝒕

1. Design Capacity → during a shift of 8 hours = 480 minutes the machine
can produce
𝐶𝑑𝑒𝑠𝑖𝑔𝑛 = 𝑅𝑠𝑡𝑛𝑑 ∙ 𝑇𝑖𝑚𝑒 → 𝐶𝑑𝑒𝑠𝑖𝑔𝑛 = 2,5 ∙ 480 = 1200
𝑚𝑖𝑛 𝑠ℎ𝑖𝑓𝑡 𝑠ℎ𝑖𝑓𝑡
2. Effective Capacity→ due to scheduled activities the capacity is reduced
to
𝐶𝑒𝑓𝑓𝑒𝑐𝑡𝑖𝑣𝑒 = 𝑅𝑠𝑡𝑛𝑑 ∙ 𝑇𝑖𝑚𝑒 → 𝐶𝑒𝑓𝑓𝑒𝑐𝑡𝑖𝑣𝑒 = 2,5 ∙ 430 = 1075
3. Actual Capacity
𝐶𝑎𝑐𝑡𝑢𝑎𝑙 = 𝑅𝑠𝑡𝑛𝑑 ∙ 𝑇𝑖𝑚𝑒 ∙ 𝑂𝐸𝐸 → 𝐶𝑎𝑐𝑡𝑢𝑎𝑙 = 2,5 ∙ 430 0,763 = 820,2
4. Design utilization 𝑝𝑐𝑠
𝐶𝑎𝑐𝑡𝑢𝑎𝑙 820,2
𝑠ℎ𝑖𝑓𝑡
𝑈𝑑𝑒𝑠𝑖𝑔𝑛 = → 𝑈𝑑𝑒𝑠𝑖𝑔𝑛 = 𝑝𝑐𝑠 = 0,684
𝐶𝑑𝑒𝑠𝑖𝑔𝑛 1200
𝑠ℎ𝑖𝑓𝑡
4. Effective utilization
𝑝𝑐𝑠
820,2
𝑠ℎ𝑖𝑓𝑡
𝑈𝑒𝑓𝑓𝑒𝑐𝑡𝑖𝑣𝑒 = 𝑝𝑐𝑠 = 0,763 which is the OEE!
1075 𝑠ℎ𝑖𝑓𝑡

Equipment Requirements – Number of machines
Given the production demand in a certain time-frame, the required number
of machines is:
𝒏
𝟏 𝑷𝒊𝒋 ⋅ 𝒕∗ 𝒊𝒋
𝑵𝒋 = ෍
𝑨𝒋 𝜼𝒋 𝒀𝒋 𝒕𝑵𝑨𝒊𝒋
𝒊=𝟏
where:
Pij - production demand for product i on machine j [pcs],
tij - standard processing time for product i on machine j [min/pcs],
𝑡𝑁𝐴𝑖𝑗 - time net available per period for the processing of product i on
machine j [min],
Nj - number of machines of type j required,
n - number of products
𝐴𝑗 - Availability of machine j
𝜂𝑗 - performance of machine j
𝑌𝑗 - yield of machine j

Spiner SC650 work-centres are used to produce four types of parts.

Production demand and unit processing times for the different items are
given in the following table:
Item type Production rate Pi Standard processing
i [pcs/day] time 𝒕∗ 𝒊 [min/pcs]
1 40 9
2 120 11
3 60 12
4 75 15
The facility operates two shift of 8 hours per day having a total of 900
min/day net available time.
Calculate the number of work-centres required to meet the demand
(suppose OEE=1).

Example 11 – Number of machines - Solution
We can simplify the formula in the following way

𝒏 𝟒
𝟏 𝑷𝒊𝒋 ⋅ 𝒕∗ 𝒊𝒋 𝑷 𝒊 ⋅ 𝒕∗ 𝒊
𝑵𝒋 = ෍ 𝑁=෍
𝑨𝒋 𝜼𝒋 𝒀𝒋 𝒕𝑵𝑨𝒊𝒋 𝒕𝑵𝑨𝒊
𝒊=𝟏 𝒊=𝟏
Item type Production rate Pi Standard processing 𝑷𝒊 ⋅ 𝒕∗ 𝒊 𝑷𝒊 ⋅ 𝒕∗ 𝒊

i [pcs/day] time 𝒕∗ 𝒊 [min/pcs] [min/day] 𝒕𝑵𝑨𝒊
1 40 9 360 0.400
2 120 11 1320 1.467
3 60 12 720 0.8000
4 75 15 1225 1.361
Σ=3525 Σ=3.92
𝟒
𝑷𝒊 ⋅ 𝒕∗ 𝒊 40 ⋅ 9 + 120 ⋅ 11 + 60 ⋅ 12 + 75 ⋅ 15
𝑁=෍ = = 3,92 ≅ 4
𝒕𝑵𝑨𝒊 900
𝒊=𝟏

Example 11 – Number of machines - Solution
Please note that in this example we considered that the OEE=1 → there
are no losses due to unavailability, to bad performance (rework) or yield
loss.
In reality, to be able to fulfil the demand in a real case scenario, the
number of machines is greater than what we calculated.
Another observation, in this case the net time available for the work-centre
is the same for all the operations. This might not be always true, but is a
good simplification.

ITEM is an assembly of 6 different parts produced on a job shop
manufacturing system which requires four types of machines. The table
𝑝𝑐𝑠
below shows the part number the relative standard production rate in .
ℎ𝑟
Determine the number of machines required to satisfy the demand of 200
pcs per shift.
Machine\Part 1 2 3 4 5 6
A - 70 30 25 25 40
B 80 20 - 25 - 58
C 35 55 - - 28 -
D 42 21 70 - - 33
Assume that in an hour 6 minutes are lost due to scheduled activities.
In the table below the values of availability, effectiveness and yield.
Machine 𝒕𝑵𝑨𝒊𝒋 [min] 𝑨𝒋 𝜼𝒋 𝒀𝒋
A 432 0,95 0,97 0,90
B 432 0,94 0,96 0,92
C 432 0,97 0,96 0,91
D 432 0,96 0,95 0,89
We must first know calculate the standard times as the inverse of the
𝟏
standard production rates. → 𝒕∗ 𝒊𝒋 = ∗
𝑷𝑹 𝒊𝒋
𝑚𝑖𝑛
In the following table the standard times are shown in
𝑝𝑐𝑠
Machine\Part 1 2 3 4 5 6
A - 0,87 2.00 2.40 2.40 1.50
B 0.75 3.00 - 2.40 - 1.03
C 1.71 1.09 - - 2.14 -
D 1.43 2.86 14.3 - - 1.82
We are now ready to apply the formula:

𝒏
𝑵𝒋 = ෍
𝒊=𝟏

➢ to manufacture 200 pcs, we need to produce 200 of each component
→ 𝑃1𝑗 = 𝑃2𝑗 = 𝑃3𝑗 = 𝑃4𝑗 = 𝑃5𝑗 = 𝑃6𝑗 = 200 𝑝𝑐𝑠
➢ the net available time is the same for all the machines and products
𝑃𝑖𝑗 1 200 𝑝𝑐𝑠/𝑠ℎ𝑖𝑓 𝑝𝑐𝑠
→ = = = 0.463
𝑡𝑁𝐴𝑖𝑗 𝑡𝑡𝑎𝑘𝑡 432 𝑚𝑖𝑛/𝑠ℎ𝑖𝑓𝑡 𝑚𝑖𝑛
Part i → 𝑷𝒊𝒋 ⋅ 𝒕∗ 𝒊𝒋
𝒕∗ 𝟏𝒋 𝒕∗ 𝟐𝒋 𝒕∗ 𝟑𝒋 𝒕∗ 𝟒𝒋 𝒕∗ 𝟓𝒋 𝒕∗ 𝟔𝒋 ෍
𝒕𝑵𝑨𝒊𝒋
Machine j ↓
A - 0,87 2.00 2.40 2.40 1.50 4.43
B 0.75 3.00 - 2.40 - 1.03 3,32
C 1.71 1.09 - - 2.14 - 2,29
D 1.43 2.86 0.87 - - 1.82 3.23
We are now ready to apply the formula:

𝒏
𝑵𝒋 = ෍
𝒊=𝟏
Then, we consider the losses due to OEE.
𝒏
𝑷𝒊𝒋 ⋅ 𝒕∗ 𝒊𝒋 𝟏 𝑷𝒊𝒋 ⋅ 𝒕∗ 𝒊𝒋
Machine 𝑨𝒋 𝜼𝒋 𝒀𝒋 𝑵𝒋 = ෍
𝒕𝑵𝑨𝒊𝒋 𝑨𝒋 𝜼𝒋 𝒀𝒋 𝒕𝑵𝑨𝒊𝒋
𝒊=𝟏
A 4.43 0,95 0,97 0,90 3,67
B 3.32 0,94 0,96 0,92 2,76
C 2.29 0,97 0,96 0,91 1,94
D 3.23 0,96 0,95 0,89 2,62
Real number of required machines has to be rounded on bigger integer.

Finally, the number of machines needed is:
A 4
B 3
C 2
D 3

Example 13 – Number of machines – General Case

Example 13 – Number of machines – General Case

Example 14 – How much will it cost
A feasibility study shows the profitability of a new venture.
The production cost include the following:
Factory costs 50% Front-end costs 50%

Direct Labour 8% Sales and Distribution 15%
Direct Materials 25% Advertising 5%
Overhead Costs 17% Amministrative Overhead 20%
50% Engineering 3%
Profit 7%
Knowing that the standard production man-time required to produce 1000

units is 138.94 hours, and that the manufacturing line has a OEE of 0.85,
Calculate the unit cost of the item.
(Consider a Cost of labour 7.50 €/hr)

Example 14 – How much will it cost
The manufacturing time that is paid is the available time
ℎ𝑟
𝑡∗ 138.94 𝑘𝑝𝑐𝑠 ℎ𝑟 ℎ𝑟
→ 𝑡𝑎𝑐𝑡𝑢𝑎𝑙 = → 𝑡𝑎𝑐𝑡𝑢𝑎𝑙 = = 163.46 = 0.16346
𝑂𝐸𝐸 𝑂𝐸𝐸 𝑘𝑝𝑐𝑠 𝑝𝑐𝑠
ℎ𝑟 € €
→ 𝐶𝐿𝑎𝑏𝑜𝑢𝑟 = 𝑡𝑎𝑐𝑡𝑢𝑎𝑙 ∙ 𝑐𝐿𝑎𝑏𝑜𝑢𝑟 → 𝐶𝐿𝑎𝑏𝑜𝑢𝑟 = 0.16346 ∙ 7.50 = 1.23
𝑝𝑐𝑠 ℎ𝑟 𝑝𝑐𝑠
Try it. Using this information it could be possible to calculate the number of
workers required to satisfy the demand if the net time available is the 90%
of the total working time (included scheduled activities).
Direct Labour 8% 1.23 Sales and Distribution 15% 2.12

Direct Materials 25% 3.84 Advertising 5% 0,77
Overhead Costs 17% 2.61 Amministrative Overhead 20% 3.08
50% Engineering 3% 0.42
Profit 7% 1.08
The total cost is therefore 14.56€/pcs.
Example 15 – Cost Analysis
A manufacturing company has the following costs.
Rent of building 15000 €/month
Rent of machines 4000 €/month
Direct labour 5 €/h
Indirect Labour 5000 €/month
Raw materials 2 €/kg
Energy 10 c€/kWh
General Expenses 2000 €/month
Knowing that to produce each unit are required 2 hr of direct labour, 10 kg
of raw materials and 100 kWh, considering a year period:
• plot the Cost/volume diagram and
• calculate,
A. The unitarian cons for a production of 700 pcs/month;
B. The number of units to be sold to break even if the price is 100 €/pcs
The selling price to BE in 9 months.
Rent of building 15 k€/month Direct
5 €/h 2 h/pcs 10 €/pcs
Rent of machines 4 k€/month labour
5 k€/month Raw
Indirect Labour 2 €/kg 10 kg/pcs 20 €/pcs
materials
General Expenses 2 k€/month
Energy 10 c€/kWh 100 kWh/pcs 10 €/pcs
Fixed costs total 26 k€/month
Variable unitarian costs 40 €/pcs
→ 312000 €/year


Revenue
k€
Total costs
400
312
Fixed costs total 312000 €/year
10 V [kpcs]
Fixed costs total 312000 €/year
€ 𝑝𝑐𝑠 𝑚𝑜𝑛𝑡ℎ €
312000𝑦𝑒𝑎𝑟+700𝑚𝑜𝑛𝑡ℎ∙12 𝑦𝑒𝑎𝑟 ∙40𝑝𝑐𝑠 €
𝑐𝑢 = 𝑝𝑐𝑠 𝑚𝑜𝑛𝑡ℎ = 77.14
700 ∙12 𝑝𝑐𝑠
𝑚𝑜𝑛𝑡ℎ 𝑦𝑒𝑎𝑟
The BE point is defined as the interception between the revenue line and
the total cost line
€
𝐶𝐹 312000 𝑦𝑒𝑎𝑟 𝑝𝑐𝑠
→ 𝑝𝑋 = 𝐶𝐹 + 𝑐𝑉 𝑋 → 𝑋 = 𝑝−𝑐𝑉
→𝑋= € = 5200
𝑦𝑒𝑎𝑟
100 −40 𝑝𝑐𝑠
In 9 months the company sells 6300 pcs

564000 €
→ 6300 ∙ 𝑝 = 312000 + 40 ∙ 6300 → 𝑝 = = 89.52
6300 𝑝𝑐𝑠

Suggest the manufacturing system for a demand of 70 kpcs.
When is profitable to use a transfer line?
k€ Revenue Job Shop
100k€
FMS
Transfer Line
10k
A B C D E F V [kpcs]
Relevant data for new design and restructuring
Product structure Production Area

• Representativeproducts; • Production process • Area structure
product groups (development plan, topology,
• Increase in value transport links)
• ABC-categories along the process chain • Building structure
• Product tree (bill of material) • Logistic parameters (floor plan, land quality,
column grids, gates, etc.)
(lead time, stocks)
• Variant tree (location of
• Area structure
variant formation)
• Cost structure (the main cost
• Resources (space (qualitative and quantitative)
requirements, performance levels)
driver, %-share material, personnel, • Machine installation
depreciation)
• Personnel (shift system,
• Foreign/self-manufacturedworking hours)
parts

Area categorisation
Building area
Structure area
Net story area

Production floor space
Free area
Storage area
Administrative area
Divisional area Additional area
Transport area
Auxiliary area Sanitary area
Social area
Functional area
Source: Pfeffer, IPA Stuttgart

Production area and its constituent parts
Area for
Area for production control
interin storage and management
Area for
transport
Area for Area for

supply and quality assurance
disposal
Production area floor spaces

Source: Pfeffer, IPA Stuttgart

Production area and floor space and its constituent parts
Machine footprint
Area for
turnings,
chips and
waste
Area for
repairs and
assembly
Staging area for jigs
and fixtures, tools,
Area for Operating area testing equipment
material and
tools

Ergonomic work (place) design
Work design Workplace design

under consideration of ... under consideration of...
- Work physiology Workplace dimensions

Stress - Body dimensions
Load (gender, age)
- Work psychology - Working posture
Acceptability, (sitting, standing, alternating)
Personality conducive etc. * Work object
- Work environment (weight, type and size of
Lighting the workpiece and the tool)
Colour * Work task
Sound (accuracy, type / frequency
Mechanical vibrations the movement, speed)
Climate
Pollutants
Radiation

Picking-height and -depth

Production area
Production area
Ap
Net production Transport area Interim storage Auxiliary area

area At area Aa
An Ai
Effective
Production area Additional production area
Ap = An + At + Ai + A a

Space Requirements
• A workstation consists of the fixed assets needed to perform a specific
operation(s).
• The equipment space consists of space for
- The equipment
- Machine maintenance
- Machine travel
- Plant services
General Guidelines for Design of Workstations:

➢ The operator should be able to pick up and discharge materials
without walking or making long or awkward reaches.
➢ The operator should be utilized efficiently and effectively.
➢ The time spent during manually handling materials should be
minimized.
➢ The safety, comfort and productivity of the operator must be
maximized.
➢ Hazards, fatigue and eye strain must be minimized.

Space Requirements

Equipment space requirements are available from machinery data sheets
(provided by the supplier). If this data is not available, the following
information must be obtained for each machine:
- Machine manufacturer and type
- Machine model and serial number
- Allowable location of machine
- Static depth at maximum point
- Floor loading requirement
- Static height at maximum point
- Maintenance requirements and areas
- Static width at maximum point
- Plant service requirements and areas

➢ Area requirements for a machine:
Total width = (static width) + (max. travel to left) + (max. travel to right)
Total depth = (static depth) + (max. travel toward operator) + (max.
travel away from operator)
Area (machine + machine travel) = (total width) * (total depth)
• The materials areas consists of space for

– Receiving and storing materials
– In-process materials
– Storing and shipping materials
– Storing and shipping waste and scrap
– Tools, fixtures, jigs, dies, and maintenance materials

Department Specification
• Department area requirements are not simply the sum
of the areas of the individual workstations included in
each department.
• Machine maintenance, plant services, incoming and
outgoing materials, and operator ingress and egress
areas for various workstations must be combined.
• Additional space is required for material handling within
the department. Space requirements for aisles can be
approximated since the relative sizes of the loads to be
handled are known.

Tables for Aisle Allowance
Recommended Aisle Widths Aisle Allowance Estimates

for Various Types of Flow
Aisle Width Aisle Allowance
Type of Flow
(m) If the Largest Load is (Percentage of
Tractors 3,6 Net Area
3-ton Forklift 3,2 Required)
2-ton Forklift 3 Less than 0,5 m2 5 – 10
1-ton Forklift 2,7
Between 0,5 and 1 m2 10 – 20
Narrow Aisle Truck 1,8
Manual Platform Truck 1,5 Between 1 and 1,5 m2 20 – 30
Greater than 1,5 m2 30 - 40
For example 1,2:

1,2 − 1
20 +  (30 − 20) = 24 %.
1,5 − 1

Size of building
Shape Step Range L (m)

e (m) 12 18 24 30 36
One 6 ++ + ++ + + - - ++ ++ ++ - - + + - + ++
ship
More 6 - + - ++ - - - + ++ - - - - - + - +
ships
- 12 + + + ++ ++ - - + ++ ++ - - + + ++ - +
Height 4,8 6 4,8 6 7,2 9,6 12 4,8 6 7,2 9,6 12 6 7,2 9,6 12 12

• The personnel areas consists of space for
– The operator
– Material handling
– Operator ingress and egress
• Space requirement for the operator and for the material
handling
– depend on the method of performing the operation.
– A motion and ergonomic studies are needed.
• Space for operator travel (recommendations)
– A minimum of 0,9 m aisle past stationary objects
– A minimum of 1,8 m with doors opening into the aisle from one side
– A minimum of 2,4 m with doors opening into the aisle from two
sides
– A minimum of 1,1 m aisle for travel between stationary object and
operating machine
– A minimum of 1,3 m aisle for travel between two operating
machines

Example - Production activity space requirements
Machine centre
Dimensions per Total process
Process Equipment No.
machine (mm) Area per area (m²)
Depth Width machine (m²)
“Prvomajska”
Saw 4 1800 2200 4 16
Hack saw
“Prvomajska”
Consol mill 4 1590 2140 3.5 14
Mill
“Wotan”
Horizontal mill 2 5250 4925 26 52
2 Spindle avey 2 2440 2130 5 10

Drill 1 Spindle delta 2 2285 1370 3 6
6 Spindle delta 1 2270 3200 7.5 7.5
“Prvomajska”
Turn 4 1050 3400 3.5 14
Universal turn

Machine centre
Camut
Sander 3 2300 3730 8,5 25,5
Horizontal
Form Gas furnace 1 2440 2130 5 5
Clean Tumble 1 2133 1830 4 4
Bench 1 2440 2130 5 5

Assemble
Hand drill 2 2440 1828 4 8
Dip tank 2 2133 3657 8 16

Paint
Spray booth 1 2743 3352 9 9

Machine centre
Packaging Bench 1 2440 2130 5 5
Total area required (m²) 197
Aisle space (40%) 79
Production space requirements 276

Example - Nonproduction activity space requirements
Activity Area (m2)
Storage
Warehouse 16
Other 16
Office
Main Office 46
Hallway 12
Rest rooms 10
Locker rooms
Men 21
Women 16
Foreman
Desk 2
Maintenance
Desk 2
Parts 10
Tool crib 6
Receiving and shipping 16
Total space required 173

Example solution:
To the 276 square meters of floor for production, the

173 square meters must be added to give an
estimate of 450 square meters of floor space required
in total.

Project work example
Design plant layout for given annual production plan
Overall
Part Part We. Quantity Batch Workstation
No. dimens. No. C/O t1
name number (kg) (pcs/yr) size (machine)
(mm)
10 GU-2 30 32
Cast
20 SB-3 20 8
1 Jaw 132-19 100×31× 0,3 510 30
30 SB-3 20 4
12
40 Handwork 10 7
10 Painting 20 15
20 MCV 32 30 18
Cast
30 RAPID 1R 40 24
2 Glider 900-200:01 240×72× 1,5 510 30
40 Handwork 20 8
80
50 BRB-4 30 12
60 Painting 20 13
10 Painting 20 5
Housing Cast 20 D-420/1500 30 30
3 800-100:01 11 720 30
2 Ø62×75,5 30 D-420/1500 50 24
40 MCV 32 90 7
Note. These are only some of the components that are
manufactured. The complete list could be found in the IBOM, while …..
the operations done on each part could be found on the route sheet.
Calculation of the number of machines
Zn Zg SELECT-O-MAT 320 3451B SB-3 GU-2

No. Part name Part number pcs / pcs / C/O t1 tn tg C/O t1 tn tg C/O t1 tn tg C/O t1 tn tg
btc year min min min h min min min h min min min h min min min h
1 Working shaft 322-725-37/1 30 720 20 10 7680 128,00 50 19 14880 248,00 0 0 0 0,00 80 13 11280 188,00
2 Jaw 132-19 30 510 0 0 0 0,00 0 0 0 0,00 0 0 0 0,00 0 0 0 0,00
3 Glider 900-200:01 30 510 0 0 0 0,00 0 0 0 0,00 0 0 0 0,00 0 0 0 0,00
4 Housing 2 800-100:01 30 720 15 4 3240 54,00 0 0 0 0,00 0 0 0 0,00 20 3 2640 44,00
5 Bar 1 900-100:02 30 510 15 1 765 12,75 0 0 0 0,00 0 0 0 0,00 30 2 1530 25,50
6 Bar 3 900-100:03 30 600 15 2 1500 25,00 0 0 0 0,00 0 0 0 0,00 40 7 5000 83,33
7 Axle with gear 55-200:09/4 30 510 0 0 0 0,00 0 0 0 0,00 40 18 9860 164,33 30 18 9690 161,50
8 Base plate 132-08 30 600 0 0 0 0,00 0 0 0 0,00 0 0 0 0,00 0 0 0 0,00
9 Lever 3 93-146-03 30 810 0 0 0 0,00 0 0 0 0,00 40 35 29430 490,50 30 24 20250 337,50
10 Movable jaw 132-21 30 510 0 0 0 0,00 0 0 0 0,00 0 0 0 0,00 30 15 8160 136,00
11 Angle body 800-100:02 30 900 0 0 0 0,00 0 0 0 0,00 0 0 0 0,00 0 0 0 0,00
12 Paralel guide 900-200:02 30 510 0 0 0 0,00 0 0 0 0,00 0 0 0 0,00 30 15 8160 136,00
13 Shaft 114-100:03/3 30 510 20 6 3400 56,67 30 50 26010 433,50 0 0 0 0,00 90 110 57630 960,50
14 Gear 348-100:03/4 30 810 20 7 6210 103,50 0 0 0 0,00 0 0 0 0,00 0 0 0 0,00
15 Groved axle 55-132:09/4 30 810 15 2 2025 33,75 90 35 30780 513,00 0 0 0 0,00 0 0 0 0,00
Σ tg (h/yr) 413,67 Σtg (h/yr) 1194,50 Σ tg (h/yr) 654,83 Σtg (h/yr) 2072,33
tfs (h/yr) 1800 tfs (h/yr) 1800 tfs (h/yr) 1800 tfs (h/yr) 1800
Σtg/tfs 0,23 Σtg/tfs 0,66 Σtg/tfs 0,36 Σt g/tfs 1,15
n 1 n 1 n 1 n 2
◼ ◼ ◼ ◼◼
…..
prvomajska
select-o-mat-320-s
Spline grinding machine

STANKO 3451B

Calculation of the number of machines
Zn Zg SELECT-O-MAT 320 3451B SB-3 GU-2

No. Part name Part number pcs / pcs / C/O t1 tn tg C/O t1 tn tg C/O t1 tn tg C/O t1 tn tg
btc year min min min h min min min h min min min h min min min h
1 Working shaft 322-725-37/1 30 720 20 10 7680 128,00 50 19 14880 248,00 0 0 0 0,00 80 13 11280 188,00
2 Jaw 132-19 30 510 0 0 0 0,00 0 0 0 0,00 0 0 0 0,00 0 0 0 0,00
3 Glider 900-200:01 30 510 0 0 0 0,00 0 0 0 0,00 0 0 0 0,00 0 0 0 0,00
4 Housing 2 800-100:01 30 720 15 4 3240 54,00 0 0 0 0,00 0 0 0 0,00 20 3 2640 44,00
5 Bar 1 900-100:02 30 510 15 1 765 12,75 0 0 0 0,00 0 0 0 0,00 30 2 1530 25,50
6 Bar 3 900-100:03 30 600 15 2 1500 25,00 0 0 0 0,00 0 0 0 0,00 40 7 5000 83,33
7 Axle with gear 55-200:09/4 30 510 0 0 0 0,00 0 0 0 0,00 40 18 9860 164,33 30 18 9690 161,50
8 Base plate 132-08 30 600 0 0 0 0,00 0 0 0 0,00 0 0 0 0,00 0 0 0 0,00
9 Lever 3 93-146-03 30 810 0 0 0 0,00 0 0 0 0,00 40 35 29430 490,50 30 24 20250 337,50
10 Movable jaw 132-21 30 510 0 0 0 0,00 0 0 0 0,00 0 0 0 0,00 30 15 8160 136,00
11 Angle body 800-100:02 30 900 0 0 0 0,00 0 0 0 0,00 0 0 0 0,00 0 0 0 0,00
12 Paralel guide 900-200:02 30 510 0 0 0 0,00 0 0 0 0,00 0 0 0 0,00 30 15 8160 136,00
13 Shaft 114-100:03/3 30 510 20 6 3400 56,67 30 50 26010 433,50 0 0 0 0,00 90 110 57630 960,50
14 Gear 348-100:03/4 30 810 20 7 6210 103,50 0 0 0 0,00 0 0 0 0,00 0 0 0 0,00
15 Groved axle 55-132:09/4 30 810 15 2 2025 33,75 90 35 30780 513,00 0 0 0 0,00 0 0 0 0,00
Σ tg (h/yr) 413,67 Σtg (h/yr) 1194,50 Σ tg (h/yr) 654,83 Σtg (h/yr) 2072,33
tfs (h/yr) 1800 tfs (h/yr) 1800 tfs (h/yr) 1800 tfs (h/yr) 1800
Σtg/tfs 0,23 Σtg/tfs 0,66 Σtg/tfs 0,36 Σt g/tfs 1,15
n 1 n 1 n 1 n 2
◼ ◼ ◼ ◼◼
…..
Warehouse of raw material 1/2

No P art name P art number Z n Zg D imens ions Zk Z k / Z n Quantity Quantity L eng ht
pcs/btc pcs/yr pcs/qua ser/qua palets/yr Palets/qua (m)
1 Jaw 132-19 30 510 100 x 31.2 x 12.2(mm) 128 4.25 2 1 1.20
2 Glider 900-200:01 30 510 240 x 72 x 80 128 4.25 4 1 1.20
3 Housing 2 800-100:01 30 720 ø62 x 75,5 (mm) 180 6 24 6 7.20
4 Base plate 132-08 30 600 146 x 200 x 27,4 150 5 2 1 1.20
5 Lever 3 93-146-03 30 810 66 x 30 x 27 203 6.75 7 2 2.40
6 Movable jaw 132-21 30 510 97 x 91 x 43,2 128 4.25 3 1 1.20
7 Angle body 800-100:02 30 900 160 x 140 x 110 225 7.5 15 4 4.80
Σ L (total leng ht) 19.20
T ype of c abinet NP 2500
L r (us able leng ht) 10.40
Σ L /L r 2.00
n 2
(reqired number of cabinets ) ◼◼
T otal area of all c abinets (m2) 5.72
C abinet T ype Number of lev els Depth L eng ht Dimens ions

Palet holder NP 2500 4 700 mm 2600 mm h = 3m l = 2,6m w = 1,1m
T rans portation T ype C apac ity width Weig ht Dimens ions
…..
Forklift (elec.) VD-2502 25000 N 3m 4280 kg h = 3m l = 3,1m w = 1,3m

Warehouse of raw material 2/2
Zn Zg Zk Quantity Weight Capacity Required

No Part name Part number Dimensions
pcs/btc pcs/yr pcs/qua (L=3 m) (kg) (kg)
1 Working shaft 322-725-37/1 30 900 ø100 x 268 (mm) 225 21 4000,91 700 5,72
2 Bar 1 900-100:02 30 510 40 x 20 x 1755 128 74 1436,78 700 2,05
3 Bar 3 900-100:03 30 600 20 x 10 x 455 150 23 117,22 700 0,17
4 Axle with gear 55-200:09/4 30 510 ø45 x 214 128 9 347,22 700 0,50
5 Paralel guide 900-200:02 30 510 60 x 100 x 835 128 35 5096,70 700 7,28
6 Shaft 114-100:03/3 30 510 ø65 x 765 (mm) 128 32 2575,82 700 3,68
7 Gear 348-100:03/4 30 810 ø95 x 36 (mm) 203 3 515,83 700 0,74
8 Groved axle 55-132:09/4 30 810 ø28 x 226 (mm) 203 16 238,99 700 0,34
Σnp (total number) 20,47
Type of cabinet KR 3250
Number of levels per cabinet 3
Σ np / n p 6,82
n 7
(reqired number of cabinets) ◼◼◼◼◼◼◼
Total area (m2) 11,38
Cabinet Type Levels Height Length Dimensions

Cantilevered KR 3250 3 500 mm 3250 mm h = 2,7m l = 3,25m w = 0,5m
…..
Warehouse of finished products
No Part name Part number Zn Zg Dimensions Zk Zk / Zn Quantity Quantity Lenght
pcs/btc pcs/yr pcs/qua ser/qua palets/yr Palets/qua
1 Working shaft 322-725-37/1 30 720 ø100 x 268 180 6 24 6 7,20
2 Jaw 132-19 30 510 100 x 31.2 x 12.2 128 4,25 2 1 1,20
3 Glider 900-200:01 30 510 240 x 72 x 80 128 4,25 4 1 1,20
4 Housing 2 800-100:01 30 720 ø62 x 75,5 180 6 24 6 7,20
5 Bar 1 900-100:02 30 510 40 x 20 x 1755 128 4,25 17 5 6,00
6 Bar 3 900-100:03 30 600 20 x 10 x 455 150 5 40 10 12,00
7 Axle with gear 55-200:09/4 30 510 ø45 x 214 128 4,25 9 3 3,60
8 Base plate 132-08 30 600 146 x 200 x 27,4 150 5 2 1 1,20
9 Lever 3 93-146-03 30 810 66 x 30 x 27 203 6,75 7 2 2,40
10 Movable jaw 132-21 30 510 97 x 91 x 43,2 128 4,25 3 1 1,20
11 Angle body 800-100:02 30 900 160 x 140 x 110 225 7,5 15 4 4,80
12 Paralel guide 900-200:02 30 510 60 x 100 x 835 128 4,25 17 5 6,00
13 Shaft 114-100:03/3 30 510 ø65 x 765 128 4,25 17 5 6,00
14 Gear 348-100:03/4 30 810 ø95 x 36 203 6,75 14 4 4,80
15 Groved axle 55-132:09/4 30 810 ø28 x 226 203 6,75 5 2 2,40
ΣL (total lenght) 67,20
Type of cabinet NP 2600
Lr (usable lenght) 10,40
ΣL / Lr 7,00
n 7
(reqired number of cabinets) ◼◼◼◼◼◼◼
Total area of all cabinets (m2) 20,02
Cabinet Type Number of levels Depth Lenght Dimensions

Transportatio Type Capacity Width Weight Dimensions

Forklift (elec.) VD-2502 25000 N 3m 4280 kg h = 3m l = 3,1m w = 1,3m
…..
Production space requirements
POW-
DIMENSIONS WEIGHT AREA Num.
TYPE MANUFACTURER ER Total area
l (mm) w (mm) h (mm) P (kW) m (kg) Ao,i (m2) fRM ARM,i (m2) n
SELECT-O-MAT 320 Prvomajska 2200 1800 1440 3,85 1150 3,96 4 15,84 1 15,84
3451B Stankoimport Moskva 1500 1000 1750 2,8 6200 1,50 5 7,50 1 7,50
SB-3 Prvomajska Dalstroj 850 570 840 1,8 780 0,48 6 2,91 1 2,91
GU-2 Prvomajska 2140 1590 1950 14,5 3680 3,40 4 13,61 2 27,22
MCV32 Prvomajska Dalstroj 1600 1300 300 11,3 8300 2,08 4,5 9,36 1 9,36
BRB-4 Prvomajska 2200 1500 2700 4 2240 3,30 4 13,20 1 13,20
D-420/1500 Prvomajska 3400 1050 1300 11 2180 3,57 4 14,28 2 28,56
3A130 Stankoimport Moskva 3060 2000 1550 7,5 3780 6,12 3 18,36 1 18,36
VR2-1500 Camut Torino 3730 2300 2800 9,7 6100 8,58 3 25,74 1 25,74
RAPID 1R Wotan 4925 5250 4520 7,7 6300 25,86 2 51,71 2 103,43
BG01 LŽT 1500 1000 1750 2,8 6200 1,50 5 7,50 1 7,50
OFA 16 Strojimport Prag 1990 1640 1665 5,5 3550 3,26 4 13,05 1 13,05
SS-30-X MAAG Zurich 2590 1200 1790 1,4 3450 3,11 3 9,32 1 9,32
SOK-110 Prvomajska 4800 2000 1800 19,2 4000 9,60 3 28,80 1 28,80
H-85-A TOS 3200 1400 1800 8 4800 4,48 4 17,92 1 17,92
Handwork - 3000 3000 2000 - - - - 9 1 9,00
painting - 3000 3000 2000 - - - - 9 1 9,00
Heat treatment - 3000 3000 2000 - - - - 9 1 9,00
ΣARM,n (production area) 355,71
kt (transport factor) 0,25
ko (warehouse factor) 0,25
nr (number of workers) 21
Total production space (m2)
(ΣARM,n + ΣARM,n × kt +ΣARM,n × ko + nr × 15)
848,56
…..
Raw material warehouse requirements
D imens ions Weig ht Area Num. T otal
Model T ype
d (mm) š (mm) v (mm) m (kg) Ao,i (m2) fR M AR M,i (m2) n area
NP 2600 C abinet 2600 1100 3000 - 2.86 1 2.86 2 5.72
NP 3800 C abinet 3800 1300 3000 - 4.94 1 4.94 0 0.00
K R 3250 C antilevered 3250 500 2700 - 1.63 1 1.63 7 11.38
V D -2502 F orklift (elec .) 3100 1300 3000 4280 4.03 1 4.03 1 4.03
Σ A R M,n (warehous e area) 21.13
kt (trans port factor) 0.50
ko (warehous e factor) 0.50
nr (number of workers ) 3
T otal warehous e area (m2)
87.25
Warehouse of finished parts requirements
D imens ions Weig ht Area Num. T otal
Model T ype
d (mm) š (mm) v (mm) m (kg) Ao,i (m2) fR M AR M,i (m2) n area
NP 2600 C abinet 2600 1100 3000 - 2.86 1 2.86 7 20.02
NP 3800 C abinet 3800 1300 3000 - 4.94 1 4.94 0 0.00
V D -2502 F orklift (elec .) 3100 1300 3000 4280 4.03 1 4.03 1 4.03
Σ A R M,n (warehous e area) 24.05
kt (trans port factor) 0.50
ko (warehous e factor) 0.50
nr (number of workers ) 3
T otal warehous e area (m2)
93.10
…..
Total space requirements
R aw material warehous e area 87.25
Warehous e of finis hed parts 93.10
produc tion area 848.56
R es trooms 25
Offic e 9
T ools area 9
Ins pec tion 9
T O T AL AR E A (m2) 1080.91
Plant layout
R ang e (m) 12 12, 18, 24, 30 or 36 m
S tep (m) 6 6 or 12 m
H eig ht (m) 6.00
R as ter (m2) 72.00
R eqired ras ters 15.01
C hos en number of ras ters 18
L ay out area (m2) 1296.00

Exercise Evaluation of area
The following equipment has to be allocated in a new manufacturing facility.
POW-
DIMENSIONS WEIGHT Num.
TYPE MANUFACTURER ER
l (mm) w (mm) h (mm) P (kW) m (kg) n
SELECT-O-MAT 320 Prvomajska 2200 1800 1440 3,85 1150 1
3451B Stankoimport Moskva 1500 1000 1750 2,8 6200 1
SB-3 Prvomajska Dalstroj 850 570 840 1,8 780 1
GU-2 Prvomajska 2140 1590 1950 14,5 3680 2
MCV32 Prvomajska Dalstroj 1600 1300 300 11,3 8300 1
BRB-4 Prvomajska 2200 1500 2700 4 2240 1
D-420/1500 Prvomajska 3400 1050 1300 11 2180 2
3A130 Stankoimport Moskva 3060 2000 1550 7,5 3780 1
VR2-1500 Camut Torino 3730 2300 2800 9,7 6100 1
RAPID 1R Wotan 4925 5250 4520 7,7 6300 2
BG01 LŽT 1500 1000 1750 2,8 6200 1
OFA 16 Strojimport Prag 1990 1640 1665 5,5 3550 1
SS-30-X MAAG Zurich 2590 1200 1790 1,4 3450 1
SOK-110 Prvomajska 4800 2000 1800 19,2 4000 1
H-85-A TOS 3200 1400 1800 8 4800 1
Handwork - 3000 3000 2000 - - 1
painting - 3000 3000 2000 - - 1
Heat treatment - 3000 3000 2000 - - 1

A. Estimate the total production area Ap = An + At + Ai + Aa by:

➢ Using the Method of discontinuous coefficient to calculate the Net
Production Area An and the Transportation area At (the unit load has
the size of a ISO pallet 1200mmx800mm).
➢ The Interim Storage area Ai will require 3 m2 for every working
station.
➢ The Auxiliary Area will be made by the following facilities:
➢ Offices 50 m2
➢ Testing Labs 16 m2
➢ Rest rooms 50 m2
➢ Storage 20 m2
Aisle Allowance
If the Largest Load is (Percentage of
Net Area
Required)
Less than 0,5 m2 5 – 10
Between 0,5 and 1 m2 10 – 20
Between 1 and 1,5 m2 20 – 30
POW-
DIMENSIONS WEIGHT AREA Num.
TYPE MANUFACTURER ER Total area
l (mm) w (mm) h (mm) P (kW) m (kg) Ao,i (m2) fRM ARM,i (m2) n
SELECT-O-MAT 320 Prvomajska 2200 1800 1440 3,85 1150 3,96 4 15,84 1 15,84
3451B Stankoimport Moskva 1500 1000 1750 2,8 6200 1,50 5 7,50 1 7,50
SB-3 Prvomajska Dalstroj 850 570 840 1,8 780 0,48 6 2,91 1 2,91
GU-2 Prvomajska 2140 1590 1950 14,5 3680 3,40 4 13,61 2 27,22
MCV32 Prvomajska Dalstroj 1600 1300 300 11,3 8300 2,08 4,5 9,36 1 9,36
BRB-4 Prvomajska 2200 1500 2700 4 2240 3,30 4 13,20 1 13,20
D-420/1500 Prvomajska 3400 1050 1300 11 2180 3,57 4 14,28 2 28,56
3A130 Stankoimport Moskva 3060 2000 1550 7,5 3780 6,12 3 18,36 1 18,36
VR2-1500 Camut Torino 3730 2300 2800 9,7 6100 8,58 3 25,74 1 25,74
RAPID 1R Wotan 4925 5250 4520 7,7 6300 25,86 2 51,71 2 103,43
BG01 LŽT 1500 1000 1750 2,8 6200 1,50 5 7,50 1 7,50
OFA 16 Strojimport Prag 1990 1640 1665 5,5 3550 3,26 4 13,05 1 13,05
SS-30-X MAAG Zurich 2590 1200 1790 1,4 3450 3,11 3 9,32 1 9,32
SOK-110 Prvomajska 4800 2000 1800 19,2 4000 9,60 3 28,80 1 28,80
H-85-A TOS 3200 1400 1800 8 4800 4,48 4 17,92 1 17,92
Handwork - 3000 3000 2000 - - - - 9 1 9,00
painting - 3000 3000 2000 - - - - 9 1 9,00
Heat treatment - 3000 3000 2000 - - - - 9 1 9,00
ΣARM (net production area) 355,71
kt (transport factor) 0,20
Transport area 71,14
as (storage per WS) [m2] 3,00
nr WS 21
Interim Storage Area 63
Auxiliary Area 136
Total production space (m2)
(ΣARM + ΣARM × kt + nr × as )
625,85

Home Work Evaluation of area
B. Calculate the total warehouse area Awh required by

➢ calculating the inbound storage area Awh_in using the optimal order
quantity (aisle allowance should be considered) using the following
figures:
Aisle Allowance
Annual Product Flow D 1000 sku/yr If the Largest Load is (Percentage of
Net Area
Order Cost k 400 €/order Required)
Holding Cost h 300 €/sku yearly Less than 0,5 m2 5 – 10
Purchasing Cost c 1200 €/sku Between 0,5 and 1 m2 10 – 20
Between 1 and 1,5 m2 20 – 30
➢ Consider the 50% of Awh_in to calculate Awh_out.
C. Determine the minimal cost of inventory.

D. Provide a sketch of your work floor indicating the basic areas.

Plant Design Day 6-7 Lab - Resource and Space Determination

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A Vocational Degree programme developed by MCAST

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A Vocational Degree programme developed by MCAST 12

A Vocational Degree programme developed by MCAST 13

A Vocational Degree programme developed by MCAST 14

A Vocational Degree programme developed by MCAST 15

A Vocational Degree programme developed by MCAST 16

A Vocational Degree programme developed by MCAST 17

A Vocational Degree programme developed by MCAST 19

A Vocational Degree programme developed by MCAST 20

A Vocational Degree programme developed by MCAST 21

A Vocational Degree programme developed by MCAST 23

A Vocational Degree programme developed by MCAST 24

A Vocational Degree programme developed by MCAST 25

A Vocational Degree programme developed by MCAST 26

In manufacturing and office environments, space requirements

Determination of space requirements should be done after:

A Vocational Degree programme developed by MCAST 27

• The production rate of a department is a major determinant of the

A Vocational Degree programme developed by MCAST 28

A Vocational Degree programme developed by MCAST 29

A Vocational Degree programme developed by MCAST 30

Since 𝑂𝑖 = 𝑃𝑖 − 𝑠𝑖 𝑃𝑖 = 𝑃𝑖 (1 − 𝑠𝑖 ) it can be calculated as

A Vocational Degree programme developed by MCAST 34

P1 WP1 WP2 WP3 WP4 WP5 WP6 O

P1s1 P2s2 P3s3 P4s4 P5s5 P6s6

Process Scrap Output Input

P1 WP1 WP2 WP3 WP4 WP5 WP6 O

P1s1 P2s2 P3s3 P4s4 P5s5 P6s6

Process Scrap Yield =1-s Output Input

P1s1 P2s2 Pn-1sn-1 Pnsn

Pi – production input to operation i

A Vocational Degree programme developed by MCAST 40

A Vocational Degree programme developed by MCAST 41

𝒊𝒏 − 𝒔𝒄𝒓𝒂𝒑 − 𝒓𝒆𝒘𝒐𝒓𝒌 𝒔𝒄𝒓𝒂𝒑 + 𝒓𝒆𝒘𝒐𝒓𝒌

A Vocational Degree programme developed by MCAST 43

The hidden factory is a

A Vocational Degree programme developed by MCAST 45

This charts shows how complexity

For very complex systems — such as automobiles, aircraft, data switching

In order to calculate the metrics requested, we need to find the number of

𝒊𝒏 − 𝒔𝒄𝒓𝒂𝒑 − 𝒓𝒆𝒘𝒐𝒓𝒌 𝒔𝒄𝒓𝒂𝒑 + 𝒓𝒆𝒘𝒐𝒓𝒌

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𝑝𝑐𝑠 𝑝𝑐𝑠 Supply required

A Vocational Degree programme developed by MCAST 53

𝑝𝑐𝑠 𝑝𝑐𝑠 Supply required

A Vocational Degree programme developed by MCAST 54

The Availability portion of the OEE Metric represents the percentage of

We can define the Mean Time Between Failures as

Then we can define statistically the availability of the process as

Also known as "process rate", the Performance portion of the OEE

The Performance Metric is a pure measurement of speed that is designed