Group Members

•Muhammad Rizwan Younas

•Muhammad Abdullah
•Waqas Hussain
 Presentation Title

Process
Process Selection
Selection and
and
Facility
Facility Layout
Layout
 Process Selection
 Process selection
 Deciding on the way production of goods or
services will be organized
 Major implications
 Capacity planning
 Layout of facilities
 Equipment
 Design of work systems
 Process Selection and
Figure 6.1
System Design
Facilities and
Forecasting Capacity Equipment
Planning

Product and Layout

Service Design

Process
Technological Selection Work
Change Design
 Process Strategy
• Key aspects of process strategy
– Capital intensive – equipment/labor
– Process flexibility
– Technology
– Adjust to changes
– Design
– Volume
– technology
 Technology
 Technology: The application of scientific
discoveries to the development and
improvement of products and services and
operations processes.
 Technology innovation: The discovery and
development of new or improved products,
services, or processes for producing or
providing them.
 Kinds of Technology
 Operations management is primarily
concerned with three kinds of technology:
 Product and service technology
 Process technology
 Information technology
 All three have a major impact on:
 Costs
 Productivity
 Competitiveness
Technology Competitive Advantage
 Innovations in
 Products and services
 Cell phones
 PDAs
 Wireless computing
 Processing technology
 Increasing productivity
 Increasing quality
 Lowering costs
 Technology Acquisition
 Technology can have benefits but …
 Technology risks include:
 What technology will and will not do
 Technical issues
 Economic issues
 Initial costs, space, cash flow, maintenance
 Consultants and/or skilled employees
 Integration cost, time resources
 Training, safety, job loss
 Process Selection
 Variety Batch
 How much
 Flexibility
 What degree
Job Shop Repetitive
 Volume
 Expected output

Continuous
 Process Types
 Job shop
 Small scale
 Batch
 Moderate volume
 Repetitive/assembly line
 High volumes of standardized goods or services
 Continuous
 Very high volumes of non-discrete goods
 Product and Service
Figure 6.2 Processes
Process Job Shop Batch Repetitive Continuous
Type (flow)
Job Shop Appliance Ineffective
repair
Emergency
room
Batch Commercial
baking
Classroom
Lecture
Repetitive Automotive
assembly
Automatic
carwash
Continuous Ineffective Steel Production
Water purification
(flow)
 Product – Process Matrix
Figure 6.2 (cont’d)

Dimension Job Shop Batch Repetitive Continuous

(flow)
Job variety Very High Moderate Low Very low
Process Very High Moderate Low Very low
flexibility

Unit cost Very High Moderate Low Very low

Volume of Very High Low High Very low
output
 Product and Process Profiling
 Process selection can involve substantial investment
in
 Equipment
 Layout of facilities
 Product profiling: Linking key product or service
requirements to process capabilities
 Key dimensions
 Range of products or services
 Expected order sizes
 Pricing strategies
 Expected schedule changes
 Order winning requirements
 Automation
 Automation: Machinery that has sensing
and control devices that enables it to
operate
 Fixed automation
 Programmable automation
 Automation
• Computer-aided design and
manufacturing systems (CAD/CAM)
• Numerically controlled (NC) machines
• Robot
• Manufacturing cell
• Flexible manufacturing systems(FMS)
• Computer-integrated manufacturing (CIM)
 Facilities Layout
 Layout: the configuration of
departments, work centers, and
equipment, with particular emphasis on
movement of work (customers or
materials) through the system
 Product layouts
 Process layouts
 Fixed-Position layout
 Combination layouts
 Objective of Layout Design
1. Facilitate attainment of product or service
quality
2. Use workers and space efficiently
3. Avoid bottlenecks
4. Minimize unnecessary material handling costs
5. Eliminate unnecessary movement of workers
or materials
6. Minimize production time or customer service
time
7. Design for safety
Importance of Layout Decisions
 Requires substantial investments of
money and effort
 Involves long-term commitments
 Has significant impact on cost and
efficiency of short-term operations
 Basic Layout Types
 Product layouts
 Process layouts
 Fixed-Position layout
 Combination layouts
 Basic Layout Types
 Product layout
 Layout that uses standardized processing
operations to achieve smooth, rapid, high-
volume flow
 Process layout
 Layout that can handle varied processing
requirements
 Fixed Position layout
 Layout in which the product or project
remains stationary, and workers, materials,
and equipment are moved as needed
Figure 6.4
Product Layout

Raw Finished
Station Station
Station Station
Station Station
Station
materials 1 22 33 44 item
or customer
Material Material Material Material

and/or and/or and/or and/or

labor labor labor labor

Used for Repetitive or Continuous Processing

 Advantages of Product Layout
 High rate of output
 Low unit cost
 Labor specialization
 Low material handling cost
 High utilization of labor and equipment
 Established routing and scheduling
 Routing accounting and purchasing
 Disadvantages of Product Layout
 Creates dull, repetitive jobs
 Poorly skilled workers may not maintain
equipment or quality of output
 Fairly inflexible to changes in volume
 Highly susceptible to shutdowns
 Needs preventive maintenance
 Individual incentive plans are
impractical
 A U-Shaped Production Line
Figure 6.6

In 1 2 3 4

Workers

Out 10 9 8 7
Figure 6.7
Process Layout
Process Layout
(functional)

Dept. A Dept. C Dept. E

Dept. B Dept. D Dept. F

Used for Intermittent processing

Job Shop or Batch Processes
 Product Layout
Figure 6.7 (cont’d)
Product Layout
(sequential)

Work Work Work

Station 1 Station 2 Station 3

Used for Repetitive Processing

Repetitive or Continuous Processes
 Advantages of Process Layouts
 Can handle a variety of processing
requirements
 Not particularly vulnerable to equipment
failures
 Equipment used is less costly
 Possible to use individual incentive
plans
 Disadvantages of Process Layouts
 In-process inventory costs can be high
 Challenging routing and scheduling
 Equipment utilization rates are low
 Material handling slow and inefficient
 Complexities often reduce span of supervision
 Special attention for each product or customer
 Accounting and purchasing are more involved
 Fixed Position Layouts
 Fixed Position Layout: Layout in which the
product or project remains stationary, and
workers, materials, and equipment are
moved as needed.
 Nature of the product dictates this type of
layout
 Weight
 Size
 Bulk
 Large construction projects
 Cellular Layouts
 Cellular Production
 Layout in which machines are grouped into
a cell that can process items that have
similar processing requirements
 Group Technology
 The grouping into part families of items with
similar design or manufacturing
characteristics
 Functional vs. Cellular Layouts
Table 6.3

Dimension Functional Cellular

Number of moves many few
between departments
Travel distances longer shorter
Travel paths variable fixed
Job waiting times greater shorter
Throughput time higher lower
Amount of work in higher lower
process
Supervision difficulty higher lower
Scheduling complexity higher lower
Equipment utilization lower higher
 Service Layouts
 Warehouse and storage layouts
 Retail layouts
 Office layouts
 Service layouts must be aesthetically
pleasing as well as functional
 Design Product Layouts:
Line Balancing

Line Balancing is the process of assigning

tasks to workstations in such a way that
the workstations have approximately
equal time requirements.
 Cycle Time

Cycle time is the maximum time

allowed at each workstation to
complete its set of tasks on a unit.
Determine Maximum Output
OT
OT
Output rate =
Output rate =
CT
CT

OT operating
OT operating time
timeper
per day
day

D
D== Desired
Desired output
output rate
rate

OT
OT
CT
CT==cycle
cycletime
time==
DD
Determine the Minimum Number
of Workstations Required

(  t)
N=
CT

 t = sum of task time

 Precedence Diagram
Figure 6.10

Precedence diagram: Tool used in line balancing to

display elemental tasks and sequence requirements
0.1 min. 1.0 min.
A Simple Precedence
a b Diagram

c d e
0.7 min. 0.5 min. 0.2 min.
 Example 1:
Assembly Line Balancing
 Arrange tasks shown in Figure 6.10
into three workstations.
 Use a cycle time of 1.0 minute
 Assign tasks in order of the most number
of followers
 Example 1: Solution
Revised
Time Assig Time Station
Workstatio Remainin Eligible n Remaining Idle Time
n g Task
1 1.0 a, c a 0.9
0.9 c c 0.2
0.2 none - 0.2
2 1.0 b b 0.0 0.0
3 1.0 d d 0.5
0.5 e e 0.3 0.3
0.3 - - 0.5
Calculate Percent Idle Time

I
dlet
imeperc
yc
le
P
er
cen
tid
le
tim
e=
(
N)(
CT)

Efficiency = 1 – Percent idle time

 Line Balancing Rules
Some Heuristic (intuitive) Rules:
 Assign tasks in order of most following
tasks.
 Count the number of tasks that follow
 Assign tasks in order of greatest
positional weight.
 Positional weight is the sum of each task’s
time and the times of all following tasks.
 Example 2

0.2 0.2 0.3

a b e

0.8 0.6
c d f g h
1.0 0.4 0.3
 Solution to Example 2

Station 1 Station 2 Station 3 Station 4

a b e
f g h
c d
 Bottleneck Workstation

30/hr. 30/hr. 30/hr. 30/hr.

1 min. 1 min. 2 min. 1 min.

Bottleneck
 Parallel Workstations

30/hr. 2 min. 30/hr.

60/hr. 60/hr.
1 min. 1 min. 1 min.
30/hr.
2 min. 30/hr.

Parallel Workstations
 Designing Process Layouts
Information Requirements:
1. List of departments
2. Projection of work flows
3. Distance between locations
4. Amount of money to be invested
5. List of special considerations
6. Location of key utilities
 Example 3:
Interdepartmental Work Flows
Figure 6.12 for Assigned Departments

30

170 100
1 3 2

A B C
Any Question.????