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    four types of potential layouts: product-based, functional, cellular and fixed-position layouts

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    ManyChip Corp., having identified the appropriate location for its major production facility, now wants to determine the optimal internal layout for the facility based on the following criteria:

    ? The facility will manufacture several lines of memory chips, some with compatible components and some that do not have compatible components
    ? The facility will also house an administrative support workgroup that will receive and process orders, bill customers, and provide payroll/HR support for the local workforce.
    ? The facility will also be responsible for shipping to national, international, and local customer locations.

    1. There are four types of potential layouts: product-based, functional, cellular and fixed-position layouts. Define each layout (using the criteria above) and specify how it might apply to Manychip's facility.

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    ManyChip Corp., having identified the appropriate location for its major production facility, now wants to determine the optimal internal layout for the facility based on the following criteria:
    · The facility will manufacture several lines of memory chips, some with compatible components and some that do not have compatible components
    · The facility will also house an administrative support workgroup that will receive and process orders, bill customers, and provide payroll/HR support for the local workforce.
    · The facility will also be responsible for shipping to national, international, and local customer locations.
    Answer (3-4 Pages):
    1. There are four types of potential layouts: product-based, functional, cellular and fixed-position layouts. Define each layout (using the criteria above) and specify how it might apply to Manychip's facility.

    Product-based
    The term product-based refers to the fact that the ManyChip Corp layout model considers relationship weight variations with respect to each line of memory chips. In other words it is not a memory chip line invariant static model. The product layout model assumes availability of the following data to ManyChip Corp:
    (i) Memory chip demand forecast by period (the period will be user defined, e.g. it can be monthly or quarterly).
    (ii) Associated memory chip demand probabilities for the above (it is suggested that demands and probabilities for three scenarios be given - optimistic, pessimistic and most likely scenarios).
    (iii) Bill-of-material showing the relationship of the constituent parts to a finished product and part routing through equipment.
    (iv) Relationship of parts to equipment capacity (this relationship can be established through a common metric, e.g. time, namely equipment capacity expressed in chip placements/hr or parts manufactured /hr).
    (v) Dimensions of available floorspace.
    (vi) Equipment or cell dimensions.
    (vii) Relationship matrix between cells:
    --- (a) material flow based,
    --- (b) everything else based, e.g. convenience, noise level, cleanliness, vibration, ease of supervision etc.
    (viii) Fixed cell locations
    (ix) Material flow station locations within cells
    In addition the product-based model assumes availability of the following data to ManyChip Corp for determining the cost of layout equipment ownership:
    (i) Floor space utilization cost function
    (ii) Infrastructure cost function (e.g. technology 1 (compressed air chip shooter) vs. technology 2 (manual assembly))
    (iii) Maintenance cost function
    (iv) Platform familiarity function (e.g. associated retraining costs)
    (v) Vendor reputation cost function
    Product-Oriented Layout Advantages for ManyChip Corp
    1. Lower variable cost per unit
    2. Lower material handling costs
    3. Lower work-in-process inventories
    4. Easier training & supervision

    Product-Oriented ...

    Solution Summary

    This job features product-based, functional, cellular and fixed-position layouts.

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