ADVANCED PRODUCTION

SYSTEM DESIGN

Prof. Dr. Dr.-Ing. Yilmaz Uygun

02/05/2019
COURSE OVERVIEW

1 Introduction Feb 05
2 Basics of Production Systems Feb 05
3 Product Analysis Feb 12
4 Product Analysis II Feb 12
5 Process Analysis Feb 19
6 Process Design Feb 19
7 Resource Analysis Feb 26
8 Resource Design Feb 26
9 Floor Space Analysis Mar 05
10 Floor Space Design Mar 05
11 Layout Analysis Mar 12
12 Layout Design Mar 12
13 Work Place Design Mar 19
14 Work Place Design Mar 19
Final Exam (2:15pm) Apr 09

02/05/2019 Advanced Production System Design Page 2

Chapter 1
INTRODUCTION

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PRODUCTION

Production

Function Institution Output

Combination and transformation
of production factors to Location where factor The quantitative result of the
products according to specific combination takes place factor combination
methods

Production is the core function of industrial companies

Chapter 01 Industrial Engineering - Introduction Page 4

 SYSTEM
Operating
Environment
Peripheral System
Environmental
Element

Relations

Element
System

System Boundary

§ A System is a purposeful whole that consists of interacting parts/elements

§ Elements are the building bricks of systems and may also be (sub-)systems for their part
§ Elements of a system are connected among each other via Relations that may be material flow, information flow,
cause-effect, etc.
§ The System Boundary is the (arbitrarily) separation of the given system from the Operating Environment in which
it is embedded and may exist only intellectually
§ The Operating Environment lies beyond the system of interest (SoI) and comprises Environmental Elements and
Peripheral Systems which have an influence on SoI and are influenced by it
Page 5
YOUR TURN: PRODUCTION AS A SYSTEM

§ Elements?
§ Relations?
§ Operating Environment?
§ System Boundaries?

Page 6
SYSTEMS OF SYSTEMS

Industrial Firm

§ Subsystem is an element of the

system of interest; e.g. a
department of a firm
department § Blackbox can be a subsystem or
System element whose internal structure
(elements and relations) is not of
interest, but its function (aim),
inputs, and outputs

Work
Place 2
Work
Place 1
Subsystem
Work
Place 3

Page 7
SYSTEMS OF SYSTEMS - BREAKDOWN

Ubersystem Holding

System Industrial
… …
Firm

Subsystem of Department Department Department

the 1st order A B C

Subsystem of Work Place Work Place

the 2nd order B.1 B.2

Elements Employee Machines Tools

The stepwise break-down of a system into subsystem of subsystems reveals a System

Hierarchy where the step that is not subdivided anymore represents the Element level

Page 8
 SYSTEMS OF SYSTEMS - ASPECTS
Material flows Chain of command Information flows

§ Each system can be analyzed based on particular filters that highlight specific Aspects of a
System
§ An industrial firm may be considered by specific aspects like material flow, information flow,
paths
§ Elements of a system may be relevant as to several aspects and may appear in several
illustrations, e.g. Department is relevant as to material flow, information flow, etc.
§ The different aspects of a system serve only for temporary reduction of complexity but show
interdependencies among each other, like material and information flow
§ The insights drawn from representations are strongly influenced by the respective aspect
§ The consideration of a system through different aspects is the basis for the description of the
layered structure of a system
Page 9
SYSTEM MODELS

Environment-based Model Effect-based Model

Job Market

… Public Opinion

Financial Public
Input (I) System Output (O)
Organizations Infrastructure
Industrial Firm
Ecological Transfer Function O = f(I)
Competitors
Environment

State Customers

Suppliers

Structure-based Models
Matrix Graph
Raw material

Unfinished

Shop floor

Customer
magazine
materials
Incoming

assembly
Disposal
Supplier

Finished
storage

storage

storage

storage

storage
Quality
control
goods

goods
Final
Tool

Recyclable waste
Waste Recycling
Disposal service
service
l
from to Op eratio na
t
En viron m en
Scrap/ Disposal
Useless tools
storage
Supplier 100 Defective goods

Incoming materials storage 5 10 70 20

Tools Scrap
Tool magazine
Tool magazine 10 5 To
Returns ol Rework
s

Raw material storage 70

Raw Raw
Incoming materials Raw material materials
Supplier Manufacturing Quality control
Unfinished goods storage 100 65 10 Material Check storage Processed
Material
delivery ts goods
n en
po
m
Disposal storage Co
Purchased
components Unfinished
Final assembly
Shop floor 5 10 170 goods storage
Components Processed
goods
Spare
Quality control 155 5 10 parts
Finished
goods

Final assembly 65 Freight

Finished
goods Finished goods
Customer
forwarder storage

Finished goods storage 65

Returns

da ry
Customer System Bo un

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SYSTEM HIERARCHIES

Step A

Step B

Step C

Page 11
FACILITY & PRODUCTION SYSTEM DESIGN IN ACTION
VOLKSWAGEN PLANT CHATTANOOGA

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EXAMPLE I

Product portfolio

Sleeve & cylinder manufacturing

warehouse
One-off
production
1-step
transfer press 2-step transfer press
for for deep drawing
deep drawing

coating
Automatic
punching
press
Tool making

02/05/2019 Advanced Production System Design Page 13

02/05/2019
EXAMPLE II

Raw
Final

stock
Parts

material
products
Warehouse

Advanced Production System Design

Manufacturing line I Assembly line I

Manufacturing line II Assembly line II

Dispatch
Mass

Manufacturing line III Assembly line III

Assembly group 1
Assembly group 2
Assembly group 3
Cell 3
Cell 2
Cell 1
Series

Cell 4

Cell 5

Indiv. assembly
Individual machines
Special

Other cross-cutting areas

Page 14
IDEAL VS. ACTUAL PLAN

Fließfertigung
Flow manuf.

Warehouse

Warehouse
Insel
Cell
Reihe
Line

Lager

Lager
Werk -
Jobshop
Insel
Cell
statt
Insel
Cell Reihe
Line

• Ideal Plan
Idealplanung
Fließfertigung
Flow manuf.
• Actual plan
Realplanung

Warehouse

Warehouse
• Capacity restrictions
Kapazitätsbetrachtung
• Machines
Betriebsmittel Reihe
Line

Lager

Lager
• Workersl
Personal Cell
Insel Job- Job-
• Space
Fläche shop shop
Insel
Cell Reihe
Line

Warehouse
Lager Fließfertigung
Flow manuf.
Cell
Insel Cell
Insel

Warehouse

Warehouse
Job- -
Werk Line
Reihe
Lager

Lager
Reihe Insel shop
Cell statt Werk
Job- Flow manuf.
Fließfertigung Job- -
Warehouse

Line
Reihe
shop Job- -
Werk shop
statt
Lager

shop Cell
Insel Flow manuf.
Fließfertigung Cell
Insel
statt Insel
Cell Cell
Insel
Reihe
Line

02/05/2019 Advanced Production System Design Page 15

DESIGN PROCESS

Product

Process

Resource

Floor Space

Layout

Work Place

02/05/2019 Advanced Production System Design Page 16

CASES OF FACILITY DESIGN

Manu-
facturing Manufacturing Potential Factors
Facility Program
Design
Case

Empployees

Organization
Quantities

Production

Structure
Products

Techno-
Building
Location

logies
Means
New design

Expansion

Re-
structuring

Resize

Relocation

Exclusion

Criteria is new or needs to be adjusted

Criteria is not necessarily new or does not necessarily need to be adjusted
Criteria is not new or does not need to be adjusted

02/05/2019 Advanced Production System Design Page 17

CASES OF FACILITY DESIGN – CAUSES

Location Planning

New construction Relocation Decentralization

No possibility of expansion
Profitability
at current location

Utilities & Renovation

Laws
disposal

Availability of Transportation
Changes
workers costs
in the market

02/05/2019 Advanced Production System Design Page 18

LEVELS OF LOCATION PLANNING

Location Choice
Global location Regional location Local location

Political & economic Technical & economic Technical & geographic

Result Global area Regional area Facility area

Economic area of a country Econimic area of a city Property
Example „Germany“ „Bremen Area“ „Seehofer Str. 22“

•Property
•Foreign and economic
•Road network and
policy •Traffic conditions
condition
•Market economy •Workforce
•Energy supply
Location factors •Political system •Climate
•Water supply
•Fiscal and tax policy •Taxes and subventions
•Sewage
•Laws •Restrictions
•Trash disposal
•Industrialization
•Neighbor facilities

02/05/2019 Advanced Production System Design Page 19

Regional Factors Local Factors
Traffic condition Road Network and Conditions
§ Distance to suppliers, customers, distribution centers, customer services, etc. § Road connections (type, condition, costs of building new roads, etc.)
§ Communication possibilities (post offices, banks, associations, research institutes, etc.) § Train connections (position, distance from train stations, costs of establishment of new stations, etc.)
§ Position in the road network (highways, etc.) § Canal connection
§ Position in railroad network (Container terminals, etc.) § Own airfield
§ Proximity to seaports and canals
§ Proximity to airports

Workforce Property
§ Number of the available workforce (population and growth rate of the community, etc.) § Property size
§ Composition of the workforce: gender, managers, blue-collar workers, etc. § Property price
§ Quality of the workforce: capabilities, work ethics in the community, etc. § Shape of the property
§ Level of Wages: regular wages, extra payments, voluntary payments § Land structure and strength
§ Working time: regular working hours, vacation, public holidays, shifts, etc. § Orientation (cardinal points)
§ Housing (new apartments available? New construction necessary? Public support for housing?) § Easements
§ Schools & executive education: universities, technical schools, Education Centers, schools, etc.) § Construction regulations
§ Culture and recreation (theaters, concerts, parks and public gardens, etc.) § Previous use (disturbing or suitable buildings)
§ Topology (flat, mountainous, etc.) § Expansion possibilities
§ Health system (physicians, hospitals, helath centers, etc.) § Ground water level
§ Cost of living § Flood risk
§ Political and religious attitude of people in the community

Climate Energy Supply

• Temperature § Electricity
• Humidity § Connection (type, voltage and power, distance to utilities, etc.)
• Rain § Service price
• Pressure § Gas
§ Connction (type: bio, regular; distance to utilities, etc.)
§ Service price (per m3)
§ Hot water, steam (connection to pipeline)
§ Oil and coal

Taxes and Suventions Sewage

• Business tax figures • own sewage and waste water treatment necessary?
• Property tax • public sewage system, connection to sewage treatment, etc.
• Financial power of the community
• Relevant subventions

Trash Dipsosal
• own or public trash disposal,
• cost

Neighbor Facilities
• Number and type of facilities
• potential cooperation, disturbance, etc.
Restrictions Water Supply
• production bans over night § Public network
• Traffic restrictions § Connection (type of connection, distance to utilities, etc.)
§ Performance of the connection
§ Water quality (hardness, average temperature, etc.)
§ Service price
§ Own water supply (well water)
§ Possibility of well drillings
§ Maximum amount of water
§ Well water quality (hardness, average temperature, etc.)

02/05/2019 Advanced Production System Design Page 20

PROCEDURE OF LOCATION PLANNING
Corporate Goals Locations

Description of Location Description of Locations

Requirements Classification System
Local location factors
Minimum- Regional location factors
requirements
Mandatory Location Factors Global location factors
requir.
> T* <T*
global
regional
local
T* Threshold Value
First Selection
Location C Location B Location A
F1 x x x F1 x x x F1 x
F2 x x x F2 x x x F2 x
F3 x x x F3 x x x F3 x x

Final Selection
Evaluation Methods
Singular Methods
Benefit-Value Analysis
Supplier 1 Customer
W1 G1 E1 N1
W2 G2 E2 N2
W3 G3 E3 N3
W4 G4 E4 N4 Supplier 2 Location
W5 G5 E5 N5
Optimization of transportation costs

Ranking
1 Location A 432 Pts.
2 Location B 408 Pts.
„best“ location
... ........ ......

02/05/2019 Advanced Production System Design Page 21

SELECTION PROCESS OF LOCATIONS
Location S3
Location S2
Location S1
Factor Characteristic

Selection of Potential Locations

Comparison of requirement profile with
characteristics of the location
Location
Requirements
All mandatory req. Fi no
Mandatory
Requirements Fi met ?

F1 ,F2 ,...,Fn Location

yes unsuitable
Minimum
Requirements Mi
no
M1,M2,....,Mn all threshold values of minimum req.
Mi met ?

Yes
Location S4
Location S2
Factor Characteristic

02/05/2019 Advanced Production System Design Page 22

EXAMPLES OF REQUIREMENTS
Mandatory Minimum

•stable political system

•free market economy •GDP-share of industry > 40%
Global •Free market interactions •Share of blue-collar workers > 10%
•Free flow of goods •Working hours per year > 1,550 hours
•Avg. wage per month < 3,500 €

Regional •Subventions > 15%

•Road network
•Share of blue-collar workers > 10%
•Railroad network •Avg. wages of white-collar workers < 35 €/h
•Availability of properties
•Avg. Wages of skill workers < 25 €/h
•Availability of skilled
•Ratio of skilled and unskilled workers > 1
workforce on short notice
•Property price < 40 €/m2

•Road connection
Local •Position in industrial
•Property price < 40 €/m2
district
•Ground water level > 4m
•Water connection
•Property gradient < 1%
•sewage
•Elektricity: voltage > 10kV; power > 8 MW
•Property size
> 100.000 m2

02/05/2019 Advanced Production System Design Page 23

EXAMPLE OF A BENEFIT-VALUE ANALYSIS
Bv Benefit value Ideal Option Option Option
Bvij = Wi * Fi Fi = [1...10] Option 1 2 3
Criteria Group Overall Weight Criterion Ci Weight Wi Fi Bvij Fi Bvij Fi Bvij Fi Bvij
Property size 3.5% Property size 3.5% 7 24.5 5 17.5 4 14.0 2 7.0
Property price 10.9% Property price 10.9% 7 76.3 6 65.4 5 54.5 5 54.5
Traffic conditions 12.6% Canals 5.1% 7 35.7 6 30.6 5 25.5 3 15.3
Railroads 4.9% 6 29.4 6 29.4 6 29.4 6 29.4
Roads 2.6% 7 18.2 2 5.2 3 7.8 3 7.8
7.3% Soil bearing capacity 2.2% 4 8.8 6 13.2 3 6.6 1 2.2
Quality of property
Planarity 2.3% 4 9.2 5 11.5 7 16.1 7 16.1
Form 2.8% 7 19.6 6 16.8 4 11.2 4 16.8
9.2% Electricity 4.0% 5 20.0 5 20.0 5 20.0 3 15.0
Energy and
water supply Gas 2.0% 6 12.0 3 6.0 5 10.0 5 10.0
Other energy 1.9% 5 9.5 2 3.8 3 5.7 1 1.9
Water 1.3% 7 9.1 6 7.8 6 7.8 7 9.1
17.4% Sales market 6.6% 7 46.2 5 33.0 4 26.4 4 26.4
Proximity to markets
Supply / Component market 10.8% 7 75.6 5 54.0 6 64.8 5 54.0
Workforce 19.0% Job market condition 8.0% 7 56.0 5 40.0 1 8.0 1 8.0
Housing 4.8% 4 19.2 6 28.8 2 9.6 2 9.6
Training opportunities 2.5% 3 7.5 6 15.0 7 17.5 4 10.0
Social conditions 2.3% 5 11.5 4 9.2 4 9.2 4 9.2
Cultural richness 1.4% 4 5.6 2 1.8 2 1.8 3 3.2
Other costs 20.1% Investments 9.2% 3 27.6 1 9.2 7 64.4 2 18.4
Operating costs 10.9% 5 54.5 4 43.6 4 43.6 4 43.6
Sum 100% 100% 572.0 461.8 453.9 358.4
Ranking 1 2 3 4

02/05/2019 Advanced Production System Design Page 24

PROCEDURE OF BENEFIT-VALUE ANALYSIS

Definition of the
decision problem

Finding
alternatives

Collecting decision
criteria

Calculation of
weighting factors

Scoring of
alternatives

Calculation of the
benefit score

02/05/2019 Advanced Production System Design Page 25

CORRELATION WITHIN A BENEFIT-VALUE ANALYSIS

Procedure Measures Example

Property
• Defining overall evaluation objects (e.g., property)
Defining A Position
Criteria • Grouping criteria with same degree of detail per B Form
Groups evaluation object C Soil bearing capacity
D Supply

Criteria Impact on Property

• Analysis of impact of criteria on evaluation object low medium high
ABC Analysis A
of Criteria • Selection of most important criteria per group B
per Group C
D

• Development of a correlation matrix Correla- Criteria

tion % A B C D
Defining • Determining dependencies btw. criteria A - 30 - 70

Criteria
Correlations B 30 - - 20
• Determining correlations C - - - -
D 70 20 - -

• Calculation of average correlation per criteria Criteria Weight. Correl.

Weighting of A 0,33 0,145
Criteria B 0,22 0,825
• Linking average correlation with weighting per criterion C 0,11 0
Groups D 0,33 0,1375

Relat.
Group Benefit # of Benefit
• Calculation of benefit value per criteria group value criteria
Weighting of 1 400 4
value
100
Criteria • Calculation of relative benefit value per criteria group 2 520 10 52
per Group 3 315 5 63

02/05/2019 Advanced Production System Design Page 26

PAIR-BY-PAIR COMPARISON

wi Wi

1 Property price -2 3 0.12

- Normali-
2 Road connection - +2 7 0.28
zation
= =
3
Qualification of + = +2 +5 7 0.28
workers
+ =
4 Energy supply = -3 2 0.08
-
5 Infrastructure +1 6 0.24

25 1.00
Criterion n is + more important than criterion n+1
= equally important as criterion n+1 wi Weighting factors (absolute)
- Less important than criterion n+1 Wi Weighting factor (normalized)

02/05/2019 Advanced Production System Design Page 27

EXERCISE A

§ Consider the location selection for a supplier

of aircrafts components, i.e. wings
§ Following cities are taken into consideration
§ Bremen
§ Berlin
§ Munich

§ Conduct a benefit-value analysis to find the

best location by using spreadsheet S0
§ Define 5-7 decision criteria
§ Calculate the weighting factors
§ Score the alternatives
§ Calculate the individual benefit scores

02/05/2019 Advanced Production System Design Page 28

EXERCISE A (CONT´D)
Following information were put together
§ Traffics conditions:
§ All three cities have airports; Munich has the biggest one; new airport in Berlin is still in progress
§ Only Bremen has a convenient access to seaports
§ Bremen and Berlin have logistics centers (“Güterverkehrszentrum - GVZ”), Bremen GVZ is the biggest
§ Number of customers located in the cities are as follows: Bremen 5, Munich 5, and Berlin 5
§ Workforce:
§ the Universities in Bremen and Munich have specialized aerospace engineering programs
§ Level of wages is the highest in Munich, followed by Berlin
§ Apartments are scarce and expensive in Munich, Bremen being the least expensive city
§ Cost of living is the highest in Munich, followed by Berlin
§ Taxes & Subventions
§ The Economic Development Agency in Bremen has the most attractive financial support program for aerospace,
followed by Munich
§ Property
§ Property rental fees are as follows; Munich 8 €/m2, Berlin 7 €/m2 and Bremen 6 €/m2
§ Ground water level in Bremen is the highest, followed by Berlin
§ Energy supply
§ Berlin offers the most attractive electricity prices for industrial customers (4 Cents/kWh), followed by Bremen (4.5
Cents/kWh) and Munich (5 Cents/kWh)
§ Neighbor facilities
§ Bremen has a dense cluster of aerospace companies and research institutions
§ Munich has prestigious research facilities and companies in the defense industry
02/05/2019 Advanced Production System Design Page 29
THANK YOU!