By Ram Naresh Roy
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Extra info for A Modern Approach to Operations Management
The net loss or gain is found by listing the unit costs associated with each cell (which is used as a corner in the evaluation path) and then summing over the path to find the net effect. Signs alternate from + to – depending upon whether shipments are being added or reduced at a given point. A negative sign on the net results indicates that cost can be reduced by making the change. The total savings are limited to the least number of units available for reallocation at any negative cell on the path.
To decide about the closeness ratings, it is a good idea to involve all the stake-holders in future layout. They can be asked to give ratings and finally an average closeness rating can be decided. 3. Step 3 consists of using the information generated in Steps 1 and 2 to prepare a string diagram showing near optimal placement of the facilities without considering the space constraints. The placement is done by trial and error. Usually, the areas with an A closeness are shown first and are connected with 4 straight lines, then E with 3 straight lines, and so on.
Bottlenecks and point of congestion are eliminated (by line balancing) so that raw material and semi-finished goods move faster from one workstation to another. • Overall satisfaction & simplification which will result in full utilization, minimum delay and congestion, ease in maintenance, and low manufacturing time. • Increased production, safer working conditions, well ventilated rooms, clean environment, • Increased flexibility for changes in product design, future expansion, and optimal use of space.