2.Design a factory layout Choose a layout type and explain the reasons for your choice. It must be consistent with your chosen process strategy. Draw a diagram showing your layout and explain the reasons for the design. This must be specific to the case study, not generic, be detailed where possible. Critically discuss your layout.

MYDRONE Drones are being developed to provide personal assistance in a variety of ways. MYDRONE has developed a drone that can both take photos like an extension of a selfie capability, and also hold an umbrella that is integrated with the drone. The drone stays appropriately positioned to shield the owner from the weather, sunshade or rain protection. The photo capability means there are far more possibilities for selfie photos than are possible when a camera device is held by the owner, an aid to provide interesting and creative photos. The notion of selfie is being redefined, the drone is an extension of self. The umbrella function is possible because the drone carries an umbrella folded and ready to be deployed when required. Opening the Mydrone umbrella takes a few seconds. The umbrella can be erected as soon as rain starts, a great advantage in changeable Auckland weather, but not limited in usefulness to Auckland users. The drone has a sensor device that not only senses the rain but also the wind velocity so the drone can position itself over the owner taking account of the angle of the rain and therefore providing maximum shelter. Also, the drone is able to sense the position of the sun and provide shade. Either function can be deployed depending on the weather situation. The drone also senses where there are obstructions such as trees and is able to adjust its flight path as needed. The owner keeps a proximity device with them at all times so the drone is fully aware of the exact position of its owner, including sensing when the owner changes speed, enters a car or building, or makes any change of direction, in this way providing maximum protection, or folding down the umbrella as appropriate. Very precise GPS technology is required. The drones fold down to be only a little larger than a mobile phone and can therefore be carried in a small bag when not in use and then deployed rapidly as required. The better models will unfold themselves when required. The drones are designed to fly a variety of distances, some up to 20km so they can stay with you for a long period of time. Models vary depending on the size of the umbrella, functionality, and colour/design of the umbrella. The drones must have very precise navigation. A high level of robustness is required so that the drone can cope with gusts, hail and objects that suddenly arrive in its flightpath. It is accepted that in extreme weather, such as hurricanes the drones may need to be grounded in the interests of public safety. Speed and noise level will also be important elements of the specification. Mydrone, a New Zealand company, intends to import the component parts for drones from either China or Europe, assemble them in New Zealand and then supply the New Zealand and Australian market with personal camera/umbrella drones. The proposal is to import the main components of the drones from a mix of the three manufacturers that are located in Germany, Italy and China. This will mean there are significant transit times. Purchasing strategies and processes will need to be carefully thought through, as well as supply and storage strategies for raw materials, components and finished goods. Mydrone are manufacturers of the drones and also run a hiring service as a way of demonstrating the full potential of the products, to help sceptical customers develop confidence in the product. There are a variety of service and distribution aspects to the hiring part of the business that require thoughtful design. There is some maintenance required for the drones to ensure a high level of reliability. A regular testing programme is needed to ensure that the drones are in good condition at all times so that the service delivery is reliable. There are also some civil aviation requirements that need to be complied with. Mydrone are working closely with the civil aviation authorities on codes of practice for drone activity. It is against the trend to initiate manufacturing in NZ (most manufacturing is being outsourced to Asia) but the owners of the business are confident that with excellent operation management skills and appropriate levels of automation requiring small numbers of employees it will be possible to have a competitive manufacturing facility in NZ. The facility will need to be well designed and well managed, operations management will be the key. Each of the overseas manufacturers has several different quality levels available for the core components appropriate to meet the requirements of the various market segments in NZ and Australia. It is likely that several of the minor components, collectively representing a significant proportion of the total drone, will be available from New Zealand manufacturers at competitive prices. The Managing Director is concerned that the product launched on the local market is of a consistent and high quality, but he is also concerned that the price points will position the product within the grasp of the market segments selected. The models to be assembled locally will vary as discussed above in size, features, speed, noise level, and capacity. There will be a variety of models to suit different types of business. Each market will require different key product features. It is expected that other opportunities for the use of this type of drone will quickly be identified in industries other than drink deliveries. The price of components is important, but there are other criteria that need careful assessment before entering into relationships with suppliers. The drones will have different price points in the different markets that reflect the different products with features designed to meet the requirements of the different customer groups. In addition to the technical features referred to above it will also be important that the branding on the drone is clearly visible as the drone will also effectively be a flying billboard. Some customers may pay a premium to have the branding not visible. Some interesting opportunities exist for the drones to be lit during night flying. The larger the quantities of parts ordered the better the discounts that can be negotiated. However since the technologies involved are changing quite rapidly there is a real risk of obsolescence. Also, if large quantities of parts are stored, storage costs and damage are a concern. There are other disadvantages of buying in bulk. Some of the components are both high value and easily damaged so special security and care will be needed in the handling of some components. Often it is not practical to repair the damage so much stock could be wasted if the appropriate management is not in place. Any damage and consequent disposal of components will be costly and will need to be minimised. Some components used in the drones are a little bulky so it may not be cost effective to air freight them. The lead time from order to receipt is important allowing for manufacture and then shipping to New Zealand. This has been one reason Chinese rather than German or Italian manufacturers are preferred; the lead time on delivery is less from Asia than from Europe. Unfortunately the quality from some of the Asian suppliers has been quite variable during the product trials and this could lead to customer dissatisfaction. The components will be delivered to the Mydrone factory in boxes within standard shipping containers. It is expected that some models will be produced in low volume. Market research has indicated that there will be a reasonable volume required of the core products. There will need to be several different models. Wherever possible, a base model will be used and then variations added to meet the specific requirements. Because of the nature of the technology there will be some specialised processes that will be needed in the building of the drones. The owners of Mydrone are determined to ensure that the factory is designed to be ergonomically friendly. They want to create a positive business culture to develop a good reputation that Mydrone is a great place to work. High quality and high quotas of output will be expected. The business is expected to be highly competitive, and there will be competitor product that are entirely made overseas with lower labour costs than is possible in NZ. It will be essential that a good reputation in the market is quickly established. When designing the business processes it will be necessary to remember that there will be a significant transit time to ship parts to New Zealand. This will mean it is important to think through storage issues and purchasing arrangements to ensure that the NZ factory does not run out of components during manufacture nor have excessive stock to store. The Managing Director is very concerned that the storage costs are kept to a minimum at all points in the supply chain; the supply of finance is limited so the level of working capital is lower than the Managing Director would like. It is expected that the largest New Zealand market will be in the Auckland area, though there are significant market opportunities outside of Auckland. Initially, it is intended to establish the market in New Zealand (probably Auckland) and then expand in about two years to the east coast of Australia focusing on the Sydney area. It is hoped to have the first product into the New Zealand market within nine months. There are issues to be considered about where stocks of finished product should be held. There is a need to make the product available for prospective customers to view and in some cases trial. This is because of the novel nature of the product at this stage in the product life-cycle; the new technology needs to be operated to build confidence. There is a concern about how a product that has been trialled should be stored and maintained when it is returned and held for subsequent customer trials. It is important for Mydrone to move quickly to ensure a first mover advantage in the market. Because the competitors have existing manufacturing capability it is expected that they will be able to achieve a very competitive cost base. Mydrone currently has property in Wiri South Auckland quite close to the southern motorway that has been developed around an existing business of building recreational model aircraft. This business venture (drones) represents diversification from their existing business. There are three large sheds in good condition on the site, one that is 20m wide and 50 m long, and the other two are approximately 18m wide and 25m long. Some or all of these sheds could be converted into an initial factory, though there may need to be additional buildings. Some of the existing building will still be needed by the model aircraft business. If this site is used there are concerns that the dust etc that is inevitably associated with the model aircraft manufacturing business may be a problem in trying to establish the very clean environment needed to produce drones. This issue would need to be addressed. There is an alternative greenfields site available at a very low cost that is located very close to the major shipping port of Tauranga. This site is more central for transporting product throughout New Zealand but further from the main Auckland market. The Tauranga site offers the opportunity of constructing a purpose-built facility that may lead to greater production efficiencies in the long run than modifying and partly fitting within the constraints of the existing buildings in Auckland. In total, the Tauranga option will be more expensive initially. This is a concern for a business with very little capital. Damage to the imported parts may occur in transportation and also in the warehouses especially if warehouse space is not suitably designed for storage and handling of the drone components. Some warehouses being considered for initial use are available in the market at a low cost which is highly attractive. Because the low cost warehouses are old, the floor levels are uneven, the roofs leak in some places, and security is a concern. Good truck turning areas and docking space are important. The business must consider future expansion when making decisions related to locations. Finding stock in poorly designed warehouses is difficult and wastes time. Poor stock management systems will result in stock being frequently moved, this adds cost to the operation, and will probably result in damage. Having selected the site it will be important to design the factory layout to minimise the labour requirement but also create a good working environment. It is necessary to minimise the materials handling within the factory, shifting sub-assemblies unnecessarily is expensive and can lead to damage. It is expected that the drone components will be delivered to your factory in boxes from the various suppliers. The engines will be provided in one piece. There will be about five mechanical subassemblies and ten separate electrical components from the overseas source plus components sourced from within NZ. It will be necessary to paint the drones. The internet is going to be important as an advertising medium and also as a means for prospective customers to view technical data, view pictures of the product, and place orders. The Operations Manager is focused on ensuring the overall effectiveness of the business.