1 THIS SOLUTION MAY ONLY BE USED FOR IE 1055/2025 SPRING 2017. IE 1055/2025 Homework 8 Due March 22, 2017 1. (20 Pts)Use the department size data and flow-between data from problem 6.29 in the text and use Excel CRAFT to find the best layout that you can that minimizes the flow between department centroids. Assume that the cij values are all 1. Solution (20 pts): Input:2 THIS SOLUTION MAY ONLY BE USED FOR IE 1055/2025 SPRING 2017. Initial Facility:3 THIS SOLUTION MAY ONLY BE USED FOR IE 1055/2025 SPRING 2017. Optimal Facility using Traditional Craft:4 THIS SOLUTION MAY ONLY BE USED FOR IE 1055/2025 SPRING 2017. After massaging: Department Area X Y A/1 4 3.2 1.25B/2 8.05 1.15 4.25C/3 6 1.2 1.25D/4 5.95 3.05 4.25E/5 8 5 2F/6 4 5 5 Flow Distances Cost A‐C 2 8 A‐E 2.55 4 B‐D 1.9 5 B‐F 4.6 2 C‐E 4.55 1 D‐E 4.2 6 E‐F 3 4 Total 86.655 6 3 1 2 45 THIS SOLUTION MAY ONLY BE USED FOR IE 1055/2025 SPRING 2017. Other Initial Layouts and solutions: Additional Layout_1 After massaging: Department Area X Y A/1 4 3.2 4.75B/2 8.05 1.15 1.75C/3 6 3.15 1.75D/4 5.95 1.2 4.75E/5 8 5 4F/6 4 5 1 Flow Distances Cost A‐C 3.05 8 A‐E 2.55 4 B‐D 3.05 5 B‐F 4.6 2 C‐E 4.1 1 D‐E 4.55 6 E‐F 3 4 Total 102.455 6 3 1 2 46 THIS SOLUTION MAY ONLY BE USED FOR IE 1055/2025 SPRING 2017. Additional Layout_2 After massaging: Same as Initial solution layout. Total cost = 86.65. 2. (15 pts) The definition of material handling provided in class includes providing the right amount of the right material in the right place, at the right time, in the right sequence, in the right condition, in the right orientation, and at the right cost by using the right methods. The Just-in-Time system addresses which of these rights? Choose all that apply from the list below and briefly explain why they apply. Amount Condition Material Orientation Place Cost Time Methods Sequence 5 6 3 1 2 47 THIS SOLUTION MAY ONLY BE USED FOR IE 1055/2025 SPRING 2017. Solution (15 pts): - Amount: JIT is based on reducing inventories so the right amount is crucial. - Material: JIT uses the minimal amount of inventory so, if you don't have the right material at the right quantity, delays may occur until the right material is supplied. - Place: In JIT the incoming material to the plant is delivered directly to the department where it will be used. Therefore, right place is one of the key issues in JIT. - Sequence: In JIT the parts are received just before they are used in the operations so parts supplied in the wrong sequence result in delays and increased WIP inventories. - Time: In JIT the material handling system delivers a part at the time when it will be used not before and not later. Hence, timing is very important in JIT. - Issues related to cost, orientation, method and condition in material handling are not among the primary issues in JIT (though they are all important in M.H.). 3. (14 pts) Suppose you are the IE in charge of designing the MH system for an automotive assembly line. You are considering two main design options. The first will use a large conveyor that pulls cars through the entire assembly line as parts are placed on the cars. The second will use AGVs (similar to the truck example that we saw in the slides.) Discuss some of the advantages and disadvantages of each design and then discuss what might motivate you to choose one versus the other. Solution (14 pts): Advantages of the AGVs - Permits asynchronous movement in the line (meaning that if one station requires a few additional seconds then it does not hold up the entire line because the car can remain at that station while the other cars index forward.) - May facilitate variable production rates by controlling how many AGVs are in the line. - May facilitate mixed model production also. - Easier to change routing or travel movement. However, you may not need to do this for a stable product like an auto.8 THIS SOLUTION MAY ONLY BE USED FOR IE 1055/2025 SPRING 2017. Disadvantages of AGVs - More costly to purchase and maintain - Limited benefits in automotive production - May have reliability problems Advantages of the conveyor - Cheaper - Forces stations to remain synchronized. However, this is generally only an advantage if the workers are undisciplined. Generally, the potential flexibility of asynchronous movement would outweigh this. However, in the case of automotive assembly since the product’s design options are known it is often possible to create good line balance and minimize some of the disadvantages of synchronous movement. Disadvantages of the conveyor - Does not permit asynchronous movement. 4. (12 pts) List and discuss the major components of the life cycle cost of a material handling system. Solution (12 pts): The Total Life Cycle Cost is comprised of - Initial Costs - Annual costs. Either the Net Present Value of the Sum of the Annual Costs or the Total Annual Cost over the Project's Lifetime. The total annual cost will be impacted by the number of periods considered and the assumed interest rate. Some of the initial costs include: - Investment in equipment - Investment in training - Investment in documentation - Investment in spares - Management and coordinator costs - Start up maintenance Costs Some of the annual costs include: - Annual costs for handling - Annual costs for corrective maintenance - Cost for preventive system maintenance - Cost for preventive item maintenance - Annual system downtime costs9 THIS SOLUTION MAY ONLY BE USED FOR IE 1055/2025 SPRING 2017. - Annual cost for energy consumption - Annual cost for consumption of life limited item 5. (12 pts) What are some of the functions that Material Handling Systems provide in addition to material transportation? Explain briefly. Solution (12 pts): - Material Storage: provides storage for raw materials, WIP inventory, and finished goods inventory. Also it is a buffer between operations facilitating the efficient use of machines and people. - Material Control: keeps track of where every item is and how it has moved. Also includes the control of orientation, sequence and space between materials. - Material Protection: Material handling systems should be designed to provide safe transport and storage of the materials. It includes the packaging, packing and the unitizing done to protect against