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Process Layout Design and Cost Analysis

This document is a design process layout for minimizing transportation costs between three departments - TRIP, WORK FLOW, and LOCATION. It recommends ranking departments by highest workflow, assigning those with greatest interaction closest together, then computing the total transportation cost based on distance and frequency of trips between locations. The three departments are assigned to locations A, B, and C with a total transportation cost of $7,600.

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79 views1 page

Process Layout Design and Cost Analysis

This document is a design process layout for minimizing transportation costs between three departments - TRIP, WORK FLOW, and LOCATION. It recommends ranking departments by highest workflow, assigning those with greatest interaction closest together, then computing the total transportation cost based on distance and frequency of trips between locations. The three departments are assigned to locations A, B, and C with a total transportation cost of $7,600.

Uploaded by

vicencio39
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

FPLANAD

2ND Term 2013-2014

Q05: Designing Process Layout


10-24-2013
SIGNATURE

NAME (SURNAME, FIRST NAME, M.I.)

EXAMPLE: Assign the three departments shown in the table to locations A, B, and C. in such a way that the
transportation cost is minimized. Transportation cost is $ per load meter.
A

SOLUTION:
Step 1: Rank the department according to highest work flow.
TRIP
1-3
2-3
1-2

WORK FLOW
170
100
30

Step 2: Assign departments with the greatest interdepartmental work flow first to locations that are closest to each other.
30
1

170

10
0

Step 3: Compute total cost


Trip
1-2
1-3
2-3

Distance
b
40
20
30

Frequency
c
30
170
100
TOTAL COST

Cost
b x c x $1
$1,200
$3,400
$3,000
$7,600

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