Module 6: Line Balancing in Production

Study Notes

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.

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.

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: 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.