Module 6: Line Balancing in Production

Line Balancing

• In a product layout, the flow of inventory from one station to the next is crucial to prevent inventory pileup.
• The objective of line balancing is to minimize the imbalance between machines or personnel while meeting the required output.
• Strategies for balancing the production line load:
  • Start with precedence relationships
  • Determine cycle time
  • Calculate the theoretical minimum number of workstations
  • Balance the line by assigning specific tasks to workstations
• Line balancing heuristics: a method of solving a problem using a mental shortcut or a rule of thumb.
• Measuring the efficiency of line balancing: a method to evaluate the effectiveness of line balancing.

Factors in Choosing Facility Location

• Factors to consider when choosing a facility location:
  • Proximity to customers
  • Business climate
  • Total costs
  • Infrastructure
  • Quality of labor
  • Suppliers
  • Other facilities
  • Free trade zones
  • Political risk
  • Government barriers
  • Trading blocs
  • Environmental regulation
  • Host community
  • Competitive advantage

Locational Break-Even Analysis

• Locational break-even analysis: a method of cost-volume analysis used for industrial locations.
• Three steps in the method:
  1. Determine fixed and variable costs for each location.
  2. Plot the cost for each location.
  3. Select the location with the lowest total cost for the expected production volume.
• Total cost = fixed cost + (variable cost x volume)
• Selling price = $120
• Expected volume = 2,000 units
• Graph locational break-even analysis: a graphical representation of the total cost for each location.

Factor Rating Method

• Criteria used to evaluate sourcing locations:
  • The factor-rating method: a method used to evaluate outsourcing by assigning a weight to each factor reflecting its relative importance.
• Steps in developing a factor-rating method:
  1. Develop a list of relevant factors (key success factors).
  2. Assign a weight to each factor.
  3. Develop a scale for each factor.
  4. Management scores each factor.
  5. Multiply the score by its weight and get the total.
  6. Make a recommendation.

Centroid Method

• Centroid method: a technique for locating single facilities that considers the existing facilities, distance between them, and the volume of goods to be shipped.
• The formula for solving for the centroid: Cx = ∑ dixVi / ∑Vi, Cy = ∑diyVi / ∑Vi
• Where:
  • Cx = coordinate of the centroid
  • Cy = coordinate of the centroid
  • dix = x coordinate of the ith location
  • diy = y coordinate of the ith location
  • Vi = Volume of goods moved to or from the ith location
• Application of the centroid method: locating intermediate or distribution warehouses, communication towers in urban areas.