We have our product designed, our annual demand forecast and know our manufactur

Question

We have our product designed, our annual demand forecast and know our manufacturing processes. A vacant “green field” site has been selected. How much space do we need?

Givens:

Number of production lines = 4

Capacity of each line per hour = 25,000 units

Square footage required for machinery per line = 750

Square footage required for passage between each line = 1500

Footage required for outside perimeter 150 x 24 x 2

Square footage for raw material storage within the production area = 12,000

Break room square footage = 2200

Rest rooms = 20 ft. x 16 ft. x 2 rooms

Janitor closet = 12 ft. x 12 ft.

Maintenance shop = 40 ft. x 50 ft.

Receiving dock = 48 ft. by 65 ft.

Offices = 2100 sq. ft.

Electrical room = 22 ft. x 22 ft.

Lobby = 240 sq. ft.

Using the numbers above, what is the minimum amount of square footage required for this production operation?

How would you plan for future volume growth requirements?

What is the annual maximum output capacity for this plan (100% Equipment Effectiveness)?

Explanation / Answer

a) Minimum amount of square footage required for this production operation = 37,628 sqft

b) To plan for future growth requirements, We need to have additional open space, which could be converted to storage for raw material, finished goods and for installing additional production lines.

c) The maximum annual output capacity for this plan is = 25000 * 4 * number of hours per shift * number of shifts per day * number of days per week * number of weeks per year.

Sqft required Square footage required for 4 machinery lines 750 x 4 3,000 Square footage required for passage between lines 1500 x 3 4,500 Footage required for outside perimeter 150 x 24 x 2 7,200 Square footage for raw material storage within the production area 12,000 12,000 Break room square footage 2200 2,200 Rest rooms 20 ft. x 16 ft. x 2 rooms 640 Janitor closet 12 ft. x 12 ft. 144 Maintenance shop 40 ft. x 50 ft. 2,000 Receiving dock 48 ft. by 65 ft. 3,120 Offices 2100 sq. ft. 2,100 Electrical room 22 ft. x 22 ft. 484 Lobby 240 sq. ft. 240 Total 37,628

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