26 The XYZ Company is planning a new product line and a new

2.6 The XYZ Company is planning a new product line and a new factory to produce and assemble the final products The product line will include 10 different models. Annual production of each model is expected to be 1 300 ,000 units Each product will be assembled of components, but 65% of these will be purchased parts (not made in the new There is each processing step takes 30 sec (including an allowance for setup time and part handling) Each final unit of product takes 48 formed at work cells that include a production machine and a human worker. Products are factory). an average of 8 processing operations required to produce each component, and min to assemble. All processing operations are per- assembled at single workstations consisting of one worker each plus assembly fixtures and tooling. Each work cell and each workstation require 25 m2 of floor space and an additional allowance of 45% must be added to the total production area for aisles, workin-process storage, shipping and receiving, rest rooms, and other utility space. The factory will operate one shift (the day shift, 2,000 hrlyr). Determine (a) how many processing and assembly operations, (b) how many workers (direct labor only), and (c) how much total floor space will be required in the plant.

Solution

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(A) N_af = P * Q * n_a * n_o

= 10 * 1000 * ( 300 * ( 1 - 0.65 ) * 8

= 8400000 number of processing operation in the factory per year.

N_pf = P * Q * n_p * n_o

= 10 * 1000 * 300 * 8

= 24000000 number of assembling operations in the factory per year.

(b.) Operation time = Total number of assembling operations * each processing step time taken

= 24000000 * (1/60)

= 400000 hr/yr

At 2000 hr/yr per worker , w = 200 workers

(C) Total floor space = 200 workers * ( 25 ) * (1 + 0.45 ) m² /worker

= 7250 m²