We have our product designed our annual demand forecast and


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)?

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