Abstract

One of the most important factors to consider in building a new manufacturing system within a new plant is finding an effective layout.  Laying out a plant involves deciding where to locate all the machines, work stations, and other equipment in the manufacturing operation. Many processes and activities like material handling, loading, unloading, and flow-through operation could be affected by machine layout. Small changes in the position of a machine in a plant can affect the efficiency and the cost of overall manufacturing operations. Simulation optimization studies were performed to examine different kinds of CNCs, equipment, configurations, and set up by using Arena software to simulate four different scenarios.                                                                                                                                      

      Results showed that scenario 4 (automated system with single spindle machines and cooling tunnel) was the optimal configuration. In addition, significant improvement on profit, rate of return, and overall system efficiency has been achieved as follows:

• Increase in net profit from $18.3M to $20.9 M per year (14.2%)
• Increase in rate of return from 20% to 33% per year (65 %)
• Reduce operation expenses and total cost