Page 42 - Facility Management (All Chapter)

FACILITES DESIGN FOR VARIOUS FACILITIES FUNCTION

increases the likelihood of product damage. Finally, moving materials requires a
corridor of space for movement and there are costs associated with building and

maintaining aisle space. Basically, the longer material stays in the plant the more
costly the product will be since no value is added to the product while material is

moved and/or stored.

5. Pre positioning material
It has two aspects to be considered. First, parts should be propositioned to
facilitate automatic load/unload, insertion, inspection, and so on. Second, when

material is delivered to a workstation and/or machine center, it should be placed in a
prespecified location with a designated orientation. Too often, direct labor personnel
need to spend non-value-adding time to preposition the material for machine loading.

The application of the rules of thumb discussed above can be used to improve
operations so that non-value-adding time is reduced and consequently the manu-
facturing cycle time is shortened. Reduction in wasted time increases available
machine time. Reducing cycle time means that products are completed early and
therefore the company can receive revenue dollars earlier. Thus, the turnover of capital

is increased, resulting in lower capital costs and higher profits to the company.

Figure 4.3: Inventories in the manufacturing cycle

4.1.4 Just-In-Time Manufacturing

The just-in-time (JIT) production system was developed more than three
decades ago by Ohno Taiichi at the Toyota Motor Company in Japan. "Just-in-time

means having the right part at the right place in the right amount at the right time.”
Just-in-time divide waste into the following seven categories:

1. Waste arising from overproduction

This mean that as the production lot increases, the unit production cost will
decrease. The classic economic order quantity lot-sizing model is an example. To

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