ISE 460/ETM 593

Facilities Planning & Design

Dr. Laura Moody
Spring 2012

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 Chapter 1: Introduction
Background
Types of layout problems

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 Chronological list of facilities planning &
design activities
Date Event

4000 B.C. Egyptians developed expertise in finding suitable locations for

pyramids according to their astrological calculations

100 B.C. B 100 Romans developed full-fledged methods for the construction of

A.D. temples, arenas, and other buildings. Detailed planning of public

and residential buildings

1700 B 1900 Industrial revolution period

1910 First industrial engineering text book Factory Organization and

Administration published by Hugo Diemer.

1913 First moving automotive assembly line introduced by Henry

Ford.

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Chronological list of facilities planning and design
activities

1954 Quadratic assignment problem for micro- andmcro-levl location

problems introduced by Koopmans and Beckman

1955-1995 Optimal and heuristic algorithms for the quadratic assignment

problem

1959 Systematic layout planning approach introduced by Muther

1963 CRAFT (Computerized relative allocation of facilities technique)

introduced by Armour and Buffa

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Chronological list of facilities planning and design
activities
Early 1980s The flexible manufacturing system concept is introduced and

attention shifts towards achieving plant-wide flexibility via

medium-volume, medium-variety production using cellular

manufacturing techniques

Late 1980s The term automation introduced to cope with plant flexibility

requirements

1985-present Modern software for facilities design problems

1990s-present Research on new layout concepts including dynamic layouts,

robust layouts, and reconfigurable layouts introduced to support

mass customization techniques

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 Chronological list of sustainable building
design activities
Date: Event:
?? - 1000 AD Anasazi peoples build whole villages so the houses all
received solar heat in the winter to cut down on wood usage
1970s Energy crisis and environmental movement spurs the search
for more energy efficient & environmentally friendly
building practices
1989 - 1992 American Institute of Architects (AIA) forms the Committee
on the Environment, releases Environmental Resource
Guide in 1992
1992 EPA releases Energy Star guidelines; local green housing
program in Austin, TX
1993 United States Green Building Council (USGBC) founded
1998 Leadership in Energy and Environmental Design (LEED)
program launched

Source: http://www.thehistorycalendar.com/history-of-building-green.html
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 Typical design and planning problems
Type, Number of Mat'l. Determining Flow of
Facility Location
Handling Devices Products (People)

Type, Volume of
Products to be Determining Mat'l. Scheduling & planning
Manufactured or Handling Methods of Jobs (Services)
Services to be Provided

Manufacturing Layout of Equipment

(Service) Processes Overall System Design
Within Each Cell
Required

Design of Components Layout of Machine

Inventory Control
(Services) (Service) Cells

Type, Number of Determination of

Distribution of Goods
Equipment Required Machine (Service) Cells

Tooling, Fixture Quality Control &

Process Planning Customer Service
Determination

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 Levels of decisions
Strategic or Design or Long-term
o Involves most or all of the process
o Infrequent
Planning or Intermediate
o A few of the blocks (cell layout, inventory systems, etc.)
o Can happen relatively frequently (monthly/quarterly/semi-
annually/etc.)
Operational or short-term
o Involves one or two blocks at a time (e.g., scheduling, inventory
control)
o Can happen on a daily or weekly basis

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 Why is facilities layout important?

20-75% of product cost attributed to materials handling

(Sule, 1991 and Tompkins et al. 2003)
Layout of facilities affects materials handling costs
Facilities includes machines, departments, workstations,
locker rooms, service areas, etc.

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 Why is facilities layout important?
Good layout increases productivity efficiency
Reducing congestion permits smooth flow of people and
material
Space utilization is effective and efficient
Facilitates communication and supervision
Safe and pleasant working environment

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 Constraints in developing facilities layout
Some pairs of departments must be adjacent
Some pairs of departments must not be adjacent
Some departments only in specific locations
Existing building constraints
OSHA regulations, fire codes, etc.

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Types of layout problems Some examples
JIT manufacturer
Relayout of an existing facility
Relayout due to increased traffic (resulting from a
merger)
Consolidation of manufacturing operations from two or
more sites to one
Leasing of office space in a multi-story building
Find a better layout in existing space
Introduction of new product lines

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 Types of layout problems
Layout of a service system
Layout of a manufacturing facility
Warehouse layout
Nontraditional layout

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 Applications

Manufacturing
Healthcare
Service
Restaurants
Banks
Airports
Entertainment
Logistics and
Distribution
Ports/Terminals
Distribution Centers
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 Types of Projects
New Facility
General Re-layout (retrofit)
o Expansion due to new product(s)
o Expansion due to sales growth in existing products
o Re-organization of work areas (evolutionary design)
o Outsourcing of logistics capability
o Addition of automation technology
o Problem elimination
o Cost reduction
o Product discontinuation

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 Service system layout Dentists office

Staff Lounge X-Ray Room Records Room

Orthodontists
Dentists Room Room

Oral Hygienists
Room
Oral Hygienists
Room

Mens Rest Room

Reception
Womens Rest
Waiting Room
Area

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 Service system layout Grocery store

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 Operations review for office layouts
(Suskind, 1989)
Is the company outgrowing its space?
Is available space too expensive?
Is building in the proper location?
How will a new layout affect the organization and
service?
Are office operations too centralized or decentralized?
Does the office structure support the strategic plan?
Is the new layout in tune with the companys image
Does customer physically participate in service delivery?

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 Office structures
Closed structure
Semiclosed structure
Open structure
Semiopen structure

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 Closed structure

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 Semiclosed structure

Teller Teller Teller

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 Open structure

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 Semiopen structure

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 Manufacturing layout
Minimize transportation cost of raw materials, sub-
assemblies, work-in-process inventory, tools, parts,
finished products, etc.
Facilitate traffic flow
Improve employee morale
Minimize or eliminate risk of injury and property
damage
Ease of supervision and face-to-face communication

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 Assembly facility layout

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 Driveway layout

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 Warehouse layout

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 Nontraditional layout
Keyboard layout
IC board layout
Computer disk storage layout
Airport gate layout

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 Chapter 2: Product and equipment analysis
Product analysis
Equipment selection
Personnel requirement analysis
Space requirement & availability

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Data required for developing good layouts
Product Analysis
Process Analysis

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 Input data and activities
What data are critical to the facility plan?
Muther categorizes the information as:

P Product (what?)
Q Quantity (how much?)
R Routing (where?)
S Support (with what?)
T Timing (when?)

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 Product analysis
Bill of Materials
Assembly Charts
Engineering Drawing
Operation Process Chart
Route Sheet

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 Product design
Based on
o Function
o Aesthetics
Driven by market
o Costs
o Materials
demand
o Manufacturing Methods
Key point
o The product design MUST be finalized before designing the
facility. Otherwise a flexible facility is needed.

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 Tools used in product design

Product/Part Drawings
o 2-D, 3-D visualization

Exploded Assembly Diagrams

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 Tools used in process design

A partial list (dependent on product and service):

Process Flowcharts and Process Maps
Make vs. Buy
Parts Lists
Bill of Materials
Route Sheets
Assembly Charts
Operations Process Charts
Precedence Diagrams

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 Process flowcharts
UPS

Active Parcel
Receiving Picking Packing Shipping
Bins Post

Reserve Mono- Next-Day

Storage gramming UPS

Embroid-
Quality
ering
Assurance
Back to
Vendor

Hemming

Gift
Boxing

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 Process maps
Customer Waiter Salad Chef Dinner Chef

N
Place order Is order
complete?

Y
Give soup or salad order to chef Prepare soup or
salad order

Give dinner order to chef Prepare dinner

order

Drink Get drinks for customer

Eat salad or Give order

soup Deliver salad or soup order to customer to waiter

Deliver dinner to customer Give order

Eat dinner to waiter

Receives check Deliver check to customer

Gives payment
to waiter Receive payment for meal

Cash or Credit
Credit?

Cash
Collect change,
leave tip Bring change to customer

Run credit card through

Fill in tip
amount Return credit slip to customer

Collect tip

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 Make vs. Buy?
BUY

No

Yes Can we Is it cheaper

Can item be Yes Yes Is the capital
make the for us to
purchased? available?
item? make?

No No No Yes

MAKE BUY BUY MAKE

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 Parts list

A listing of component parts.

PARTS LIST
Company: TW Inc. Prepared By: JSU
Product: Air Flow Regulator Date: 6/30/2003

Part No. Name Drwg. No. Qty/unit Material Size Make/Buy

1050 Pipe plug 4006 1 Steel 0.5" x 1.00" Buy
2200 Body 1003 1 Aluminum 2.75" x 2.5" x 1.5" Make
3250 Seat Ring 1005 1 Stainless Steel 2.97" x 0.87" Make
3251 O-Ring - 1 Rubber 0.75" diam. Buy
3252 Plunger 1007 1 Brass 0.812" x 0.715" Make
3253 Spring - 1 Steel 1.4" x 0.225" Buy
3254 Plunger Housing 1009 1 Aluminum 1.6" x 0.225" Make
3255 O-Ring - 1 Rubber 0.925" diam. Buy
4150 Plunger Retainer 1011 1 Aluminum 0.42" x 1.2" Make
4250 Lock Nut 4007 1 Aluminum 0.21" x 1.00" Buy

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 Bill of Materials (BOM)
Many different types of structured parts lists

BILL OF MATERIALS
Company: TW Inc. Prepared By: JSU
Product: Air Flow Regulator Date: 6/30/2003

Level Part No. Name Drwg. No. Qty/unit Make/Buy

0 0021 Air Flow Regulator 0999 1 Make
1 1050 Pipe plug 4006 1 Buy
1 6023 Main assembly - 1 Make
2 4250 Lock Nut 4007 1 Buy
2 6022 Body Assembly - 1 Make
3 2200 Body 1003 1 Make
3 6021 Plunger Assembly - 1 Make
4 3250 Seat ring 1005 1 Make
4 3251 O-Ring - 1 Buy
4 3252 Plunger 1007 1 Make
4 3253 Spring - 1 Buy
4 3254 Plunger Housing 1009 1 Make
4 3255 O-ring - 1 Buy
4 4150 Plunger retainer 1011 1 Make

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 Route sheet

Company: ARC Inc. Part: Plunger Housing Prepared by: JSU

Produce: Air Flow Regulator Part No. 3254 Part No. 6/6/03

Oper. Operation Machine Tooling Setup Oper. Mtls.

No. Description Type (hr.) Time (hr.) Parts
0104 Shape, drill, cut Auto sc. .5 in dia coller, cir. 5 0.0057 Alum
off Machine Form tool, .45 diam 1x12
center drill
0204 Machine Slot Chucker 0.045 slot saw, turret 2.25 0.0067
and thread slot

0304 Drill 8 holes Auto dr. unit 0.078 diam twist drill 1.25 0.0038

0404 Debur and Blow Drill press Deburring tool with 0.5 0.0031
out pilot

SA 1 Enclose Dennison None 0.25 0.0100

subassembly hydraulic
press

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 Assembly chart 2200

3254
Analog model of the assembly process.
3253
Circles denote components
3252

Links denote operations/subassemblies

3251 SA-1 A-1

Squares represent inspections operation

3250

Begin with the original product and to

3255
trace the product disassembly back to its A-2

basic components. 4150

4250
A-3

1050 I-1

Pack A-4

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Symbols for 5 basic manufacturing activities

Operation

Transportation

Inspection

Storage

Delay

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 How much is required?
Volume variety charts (aka, Pareto charts)
Product Units/year Percent 16000 120%
C 14000 47% 14000
100%
F 6000 67% 12000
G 3250 78% 10000
80%

Units/yr

Percent
J 3000 88% 8000 60%
K 1120 92% 6000
40%
A 1000 95% 4000
E 650 98% 2000
20%

D 450 99% 0 0%
B 100 99% C F G J K A E D B H I

H 100 100% Products

I 81 100%

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 Production requirements yield loss

Pi Production input to operation i

Pi i Oi
si Fraction of Pi lost (scrap)

Pisi Oi output of process i

Oi Pi Pi si Oi
Pi
Oi Pi (1 si ) (1 si )

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Production requirements series systems

P1 1 2 ... n On

P1s1 P2s2 Pnsn

On
P1
(1 s1 )(1 s2 ) (1 sn )
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 Example
5 processes in series
Need 2000 units out

Process Loss Out In

5 3% 2000 2062
4 2% 2062 2104
3 1% 2104 2125
2 2% 2125 2169
1 1% 2169 2190

2000
P1 2190
(1 .01)(1 .02)(1 .01)(1 .02)(1 .03)

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 Simple equipment selection model

tP
NM

P desired production rate

t time (in hours)to process one part
machine time available (in hours)
machine efficiency
NM Number of units of the machine required

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 Simple equipment selection model

Nol
Nil
1 Sl

Nol Number of good units at output of stage l

Nil Number of units reqd at input of stage l
Sl Scrap at stage l

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 Simple example
1. Consider a simple jobshop manufacturing system that makes three
major Class A products requiring five types of machines. The three
products include seven parts shown in Table 2.1. Table 2.1 also shows
the time standards in units per hour.
2. Assume we an hour has only 55 minutes of productive time and that 5
minutes are lost due to operator or machine unavailability and
machine downtime.
3. Dividing the value 55 by the values in Table 2.1, we get the as well as
time per unit.
4. Determine the quantities of machines of each type required to make
the standard time per unit.
5. Assuming 12000 representative parts are to be made and that only
440 minutes of productive time is available per shift, we can find that
we need 4.9 units of machine A, 5.85 units of machine B, and 4.3 units
of machine C.
6. Rounding up these numbers gives us 5, 6, and 5 units of machine types
A, B, and C, respectively.

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 Table 2.1
Part 1 2 3 4 5 6 7
Machine
A 2000 - 1200 1500 - 2300 1200
B 1200 1800 1200 - 1600 2000 1000
C - - 1200 2000 1200 - 1400

Table 2.2
Part 1 2 3 4 5 6 7 Total Time
Machine
A 0.0275 - 0.0459 0.0367 - 0.0239 0.0459 0.1799
B 0.0459 0.3056 0.0459 - 0.0344 0.0275 0.0550 0.2143
C - - 0.0459 0.0275 0.0459 - 0.0393 0.1586

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Parameters for an LP equipment selection model
Oi Operation type i, i=1,2,...,o
Mi Production equipment type i, i=1,2,...,m
Pi Part type i, i=1,2,...,p
MHi Material handling system type i, i=1,2,...,n
cij cost of performing operation Oi on production equipment type Mj
hij cost of handling part type Pi using material handling system type MHj
tij time required to perform operation Oi on production equipment type Mj
sij time required to transport part type Pi using material handling carrier
type MHj
j time available on production equipment type Mj
j time available on material handling carrier type MHj
NOi number of operations Oi to be performed
NPi number of units of part type Pi to be manufactured
Cj cost of production equipment type Mj
Hj cost of material handling system MHj
B total budget available

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Decision Variables for LP equipment selection
model
xij number of operations Oi to be performed on
production equipment type Mj
yij number of units of part type Pi to be transported on
material handling system type MHj
NMj number of units of production equipment type Mj
selected
NMHj number of units of material handling system type
MHj selected

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 LP equipment selection model

o m p n m n
Min c x h y C NM H NMH
ij ij ij ij i i i i
i 1 j 1 i 1 j 1 j 1 i 1
m
Subject to xj 1
ij NOi i =1,2,...,o
o

t x
i 1
ij ij j NM j j =1,2,...,m

yj 1
ij NPi i =1,2,...,p

si 1
ij yij j NMH j j =1,2,...,m

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 LP equipment selection model (cont)

m n

C NM H NMH
i 1
i i
i 1
i i B

xij 0 and integer i 1, 2,..., o; j 1, 2,..., m

yij 0 and integer i 1, 2,..., o; j 1, 2,..., m

NMH j 0 and integer j 1, 2,..., m

NM j 0 and integer j 1, 2,..., m

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 Queuing model

Manufacturing engineers at the Widget Manufacturing

Company recently convinced their manger to purchase a
more expensive, but flexible machine that can do multiple
operations simultaneously.
The rate at which parts arrived at the machine that was
replaced by the flexible machines follows a Poisson
process with a mean of 10 parts per hour.
The service rate of the flexible machine is 15 units parts per
hour compared with the 11 units per hour service rate of
the machine it replaced. (All service times follow an
exponential distribution.)

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 Queuing model
The engineers and manager were convinced that the
company would have sufficient capacity to meet higher
levels of demand, but just after a two months of purchasing
the machines it turned out that the input queue to the
flexible machine was excessively long and part flow times
at this station were so long, that the flexible machine
became a severe bottleneck.
The engineers noticed that more parts were routed through
this machine, and that the parts arrival rate to the flexible
machines had increased from 10 per hour to about 20 per
hour, but were puzzled why the part flow time at this
station doubled from 30 minutes to one hour and the work-
n-process (WIP) inventory increased nearly threefold from
5 o 14 when the arrival rte only increased 40%.
Use a queuing model to justify the results observed at
Widget Manufacturing Company.
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 M/M/1 model solution

Parameters Replaced Machine Flexible Machine

Arrival rate 10 14
Service Rate 12 15
Machine Utilization
0.83 0.93

WIP 5 14
Flow Time 0.5 1

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 Personnel requirements analysis

n
Ti Oi
N
i 1 H

n number of types of operations

Oi aggregate number of operation type i required on all
the pseudo (or real) products manufactured per day
Ti standard time required for an average operation Oi
H total production time available per day
assumed production efficiency of the plant

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 Queuing model
The American Automobile Drivers Association (AADA) is
the only office serving customers in New Yorks greater
capital district area. Ahead of the busy summer season, the
office manager wants to hire additional staff members to
help provide these services to members effectively - summer
travel planning, membership renewal, disbursing travelers
checks, airline, hotel, and cruise booking, and other travel
related services.
It is anticipated that each customer typically requires 10
minutes of service time and customers arrive at the rate of
one customer every three minutes.
The arrival process is Poisson and the service times are
exponentially distributed.
Determine how many staff members are required if the
average wages and benefits per staff member are $20 per
hour and the cost to AADA for every hour that a customer
waits to be served is $40.
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 M/M/m model solution

Number of staff members (m) 4 5 6

Arrival rate 20 20 20
Service Rate 6 6 6
Machine Utilization 0.83 0.67 0.56
Time in queue 0.1447 0.0261 0.0075
Hourly Cost $195.74 $120.85 $126.01

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 Production space requirement sheet

Departme Work Work Lengt Width Area Auxiliar Operato Materia Sub- Allowanc Total Number Total
nt Name Center Center h (feet) (feet2 ) y Area r Space l Space Total e (feet2) space per of Space
Name Code (feet) (feet 2) (feet2 ) (feet 2) (feet2 ) machine Machine Machine
(feet2 ) s Type
(feet2 )

General Vertical 1202 15 15 225 70 30 50 375 150% 565 2 1130

Machining Milling

Planer 2005L 25 5 125 40 20 40 225 125% 290 1 290

Punch 3058 10 10 100 30 20 20 170 140% 240 2 480

Press

Injection 6078 20 10 200 60 50 100 410 150% 615 3 1845

Molding

Otoscope NC- 9087 20 8 160 50 30 30 270 125% 340 2 680

Cell Machine

Lathe 1212 15 8 120 40 20 30 210 150% 315 1 315

Auto- 2056 5 5 25 10 5 5 45 125% 60 1 60

Chucker

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HOMEWORK: Due at the beginning of lesson 2
Chapter 1
o 1
o 5

Chapter 2
o 2
o 6
o 7
o 10
o 11

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