Krajweski Chapter 8-9

Process Layout
Chapter 8
L L M M D D
D D
L L M M
L L M M
G G
L L G G
A A
A A G G
© 2007 Pearson Education

How Process Layout
fits the Operations Management
Philosophy
Operations As a Competitive
Weapon
Operations Strategy
Project Management Process Strategy
Process Analysis
Process Performance and Quality
Constraint Management
Process Layout Supply Chain Strategy
Lean Systems Location
Inventory Management
Forecasting
Sales and Operations Planning
Resource Planning
Scheduling

Layout Planning
 Layout planning is planning that involves decisions

about the physical arrangement of economic activity
centers needed by a facility’s various processes.
 Layout plans translate the broader decisions about the
competitive priorities, process strategy, quality, and capacity
of its processes into actual physical arrangements.
 Economic activity center: Anything that consumes
space -- a person or a group of people, a customer
reception area, a teller window, a machine, a
workstation, a department, an aisle, or a storage
room.
Layout Planning
Questions
Before a manager can make decisions

regarding physical arrangement, four
questions must be addressed.
1. What centers should the layout include?
2. How much space and capacity does
each center need?
3. How should each center’s space be
configured?
4. Where should each center be located?
Location Dimensions
 The location of a center has two

dimensions:
1. Relative location: The placement of a
center relative to other centers.
2. Absolute location: The particular space
that the center occupies within the facility.

Absolute Locations vs.
Relative Locations
Original Frozen
foods Meats
layout Dry
groceries
Bread Vegetables
Revised layout
Meats
Frozen Four of the absolute
foods
Dry locations have
groceries changed but not the
Vegetable Bread relative locations.
s

Strategic Issues
 Layout choices can help communicate an

organization’s product plans and competitive
priorities.
 Altering a layout can affect an organization and how
well it meets its competitive priorities in the following
ways:
1. Increasing customer satisfaction and sales at a retail store.
2. Facilitating the flow of materials and information.
3. Increasing the efficient utilization of labor and equipment.
4. Reducing hazards to workers.
5. Improving employee morale.
6. Improving communication.

Performance Criteria
 Customer satisfaction
 Level of capital investment
 Requirements for materials handling
 Ease of stockpicking
 Work environment and “atmosphere”
 Ease of equipment maintenance
 Employee and internal customer attitudes
 Amount of flexibility needed
 Customer convenience and levels of sales
Types of Layouts
 Flexible-flow layout: A layout that organizes

resources (employees) and equipment by function
rather than by service or product.
 Line-flow layout: A layout in which workstations or
departments are arranged in a linear path.
 Hybrid layout: An arrangement in which some
portions of the facility have a flexible-flow and
others have a line-flow layout.
 Fixed-position layout: An arrangement in which
service or manufacturing site is fixed in place;
employees along with their equipment, come to the
site to do their work.
A Flexible Flow Layout
A job shop has a flexible-flow layout.
Grinding Forging Lathes
Painting Welding Drills
Milling
Office machines Foundry

Designing
Flexible-Flow Layouts
 Step 1: Gather information

 Space requirements by center
 Available space
 Closeness factors: which centers need to be located close
to one another.
 Closeness matrix: A table that gives a measure of
the relative importance of each pair of centers being
located close together.
 Step 2: Develop a Block plan: A plan that allocates
space and indicates placement of each department.
 Step 3: Design a detailed layout.
Gather Information
Example 8.1 Office of Budget Management
Space Requirements Current Block Plan
Department Area Needed (ft2)

3 6 4
1. Administration 3,500
2. Social services 2,600 100'
3. Institutions 2,400
4. Accounting 1,600 1 2 5
5. Education 1,500
6. Internal audit 3,400
150'
Total 15,000

3 6 4
Closeness Matrix
100'
1 2 5
150'
Example 8.1 Office of Budget Management

Trips between Departments
Department 1 2 3 4 5 6
1. Administration — 3 6 5 6 10
2. Social services — 8 1 1
3. Institutions — 3 9
4. Accounting — 2
5. Education — 1
6. Internal audit —
Departments 1 and 6 have the most interaction.
Departments 3 and 5 have the next highest.
© 2007 Pearson Education Departments 2 and 3 have next priority.
3 6 4
Proposed Block Plan

100'
1 2 5
150'
First put departments 1 and 6 close together

Next put departments 3 and 5 close together
Then put departments 2 and 3 close together
6 2 3
100'
1 4 5
© 2007 Pearson Education 150'

Applying the
Weighted- Distance Method
 Weighted-distance method: A mathematical
model used to evaluate flexible-flow layouts based
on proximity factors.
 Euclidean distance is the straight-line distance, or

shortest possible path, between two points.
 Rectilinear distance: The distance between two

points with a series of 90 degree turns, as along city
blocks.

Distance Measures
Euclidian Distance
dAB = (xA – xB)2 + (yA – yB)2
Rectilinear Distance
dAB = |xA – xB| + |yA – yB|

Calculating the WD Score
Example 8.2 Load Distance Analysis
Current Plan Proposed Plan
Dept Closeness Distance Distance
Pair Factor, w d wd Score d wd Score
1,2 3 1 3 2 6
1,3 6 1 6 3 18
1,4 5 3 15 1 5
1,5 6 2 12 2 12
1,6 10 2 20 1 10
2,3 8 2 16 1 8
2,4 1 2 2 1 1
2,5 1 1 1 2 2
3,4 3 2 6 2 6
3,5 9 3 27 1 9
4,5 2 1 2 1 2
5,6 1 2 2 3 3
ld = 112 ld = 82
Line Flow Layout
A production line has a line-flow layout.
Station 1 Station 2 Station 3 Station 4

Designing
Line-Flow Layouts
 Line balancing is the assignment of work to

stations in a line so as to achieve the desired output
rate with the smallest number of workstations.
 Work elements are the smallest units of work that can be
performed independently.
 Immediate predecessors are work elements that must be
done before the next element can begin.
 Precedence diagram allows one to visualize immediate
predecessors better; work elements are denoted by
circles, with the time required to perform the work shown
below each circle.

Line Balancing
Example 8.3
Green Grass, Inc., a manufacturer of lawn & garden equipment,
is designing an assembly line to produce a new fertilizer spreader,
the Big Broadcaster. Using the following information, construct a
precedence diagram for the Big Broadcaster.

Work Time Immediate
Element
A
Description (sec) Predecessor(s)
Bolt leg frame to hopper 40 None
Line Balancing
B
C
Insert impeller shaft
Attach axle
30
50
A
A Green Grass, Inc.
D Attach agitator 40 B
E Attach drive wheel 6 B
F Attach free wheel 25 C
G Mount lower post 15 C
H Attach controls 20 D, E D
I Mount nameplate 18 F, G H
Total 244 B 40
20
30 E
A 6
F
40 C 25
50 I
18
G
© 2007 Pearson Education 15
Desired Output and
Cycle Time
 Desired output rate, r must be matched to the staffing or

production plan.
 Cycle time, c is the maximum time allowed for

work on a unit at each station: 1
c=
r

Theoretical Minimum
Theoretical minimum (TM ) is a benchmark or goal for the

smallest number of stations possible, where total time required
to assemble each unit (the sum of all work-element standard
times) is divided by the cycle time. It must be rounded up
Idle time is the total unproductive time for all

stations in the assembly of each unit.
Efficiency (%) is the ratio of productive time to
total time.
Balance Delay is the amount by which efficiency
falls short of 100%.
Output Rate and Cycle Time
Example 8.4
Green Grass, Inc.
 Desired output rate, r = 2400/week
Plant operates 40 hours/week
r = 2400/40 = 60 units/hour
 Cycle time, c = 1/60

1
= 1 minute/unit
r
= 60 seconds/unit

Calculations for
Example 8.4 continued
Theoretical minimum (TM ) - sum of all work-element

standard times divided by the cycle time.
TM = 244 seconds/60 seconds = 4.067

It must be rounded up to 5 stations
Cycle time: c = 1/60 = 1 minute/unit = 60 seconds/unit
Efficiency (%) - ratio of productive time to total time.
Efficiency = [244/5(60)]100 = 81.3%
Balance Delay - amount by which efficiency falls short of 100%.
(100 − 81.3) = 18.7%

Line Balancing Big Broadcaster
c = 60 seconds/unit
TM = 5 stations D
Efficiency = 81.3% H
B 40
20
S1 30 E
S3 6
A S2 Cumm Idle
F Station Candidate Choice Time Time
40 C 25 S1 A A 40 20
50 S2 B,C C
I 50 10
S3 B,F,G B 30 30
E,F,G 18
F 55 5
G
15
The goal is to cluster the work elements Green Grass, Inc.
into 5 workstations so that the number of
work-stations is minimized, and the cycle Line Balancing Solution
time of 60 seconds is not violated. Here
we use the trial-and-error method to find
a solution, although commercial software
packages are also available.
D
H
B 40
20
S1 30 E
S3
A S4 6
S2
F S5
40 C 25
50 I
c = 60 seconds/unit
TM = 5 stations 18
G
Efficiency = 81.3%
© 2007 Pearson Education 15
Other Considerations
In addition to balancing a line, managers must also

consider four other options:
1. Pacing: The movement of product from one station

to the next as soon as the cycle time has elapsed.
2. Behavioral factors of workers.
3. Number of models produced: A mixed-model line
produces several items belonging to the same
family.
4. Cycle times depend on the desired output rate, and
efficiency varies considerably with the cycle time
selected.

Creating Hybrid Layouts
 Layout flexibility is the property of a facility to

remain desirable after significant changes occur or to
be easily and inexpensively adopted in response to
changes.
 A One-worker, multiple-machines (OWMM) cell is
a one-person cell in which a worker operates several
different machines simultaneously to achieve a line
flow.
 A Cell is two or more dissimilar workstations located
close together through which a limited number of
parts or models are processed with line flows.
Group Technology (GT)
 Group Technology (GT) is an option for

achieving line-flow layouts with low-volume
processes; this technique creates cells not
limited to just one worker and has a unique
way of selecting work to be done by the cell.
 The GT method groups parts or products

with similar characteristics into families and
sets aside groups of machines for their
production.
Before Group Technology
Jumbled flows in a job shop without GT cells
Lathing Milling Drilling
L L M M D D
D D
L L M M
Grinding
L L M M
G G
L L Assembly
G G
A A
Receiving and A A G G
shipping

Applied Group Technology
Line flows in a job shop with three GT cells
L L M D G Assembly
area
Cell 1 Cell 2 A A
Receiving L M G G
Cell 3
L M D
Shipping

Warehouse Layouts
Out-and-back Pattern
 The most basic warehouse layout is the out-and-back pattern.
The numbers indicate storage areas for same or similar items.
Storage area
3 5 5 6 4 2 7
Dock Aisle
1 5 5 4 4 2 7
Storage area
Warehouse Layouts
Zone System
Zones Zones Control

station Shipping
Click to add title doors
Tractor
trailer
Tractor
trailer
Feeder Feeder
lines lines Overflow
Office Layouts
 Most formal procedures for designing office layouts

try to maximize the proximity of workers whose jobs
require frequent interaction.
 Privacy is another key factor in office design.
 Four common office layouts:
1. Traditional layouts
2. Office landscaping (cubicles/movable partitions)
3. Activity settings
4. Electronic cottages (Telecommuting)
Lean Systems
Chapter 9

How Lean Systems
fits the Operations Management
Philosophy
Operations As a Competitive
Weapon
Operations Strategy
Project Management Process Strategy
Process Analysis
Process Performance and Quality
Constraint Management
Process Layout Supply Chain Strategy
Lean Systems Location
Inventory Management
Forecasting
Sales and Operations Planning
Resource Planning
Scheduling

Toyota Production System
(TPS)
 Toyota Production System (TPS) is one of the most admired

lean manufacturing systems in existence.
 They have a process of continuous improvement.
 Work is completely specified as to content, sequence, timing,
and outcome.
 Services and goods do not flow to the next available person or
machine, but to a specific person or machine.
 Employees are stimulated to experiment to find better ways to
do their jobs.
 Improvements to the system must be made in accordance with
the scientific method, under the guidance of a teacher, at the
lowest possible organizational level.

Lean Systems
 Lean systems are operations systems that

maximize the value added by each of a company’s
activities by paring unnecessary resources and
delays from them.
 Just-in-time (JIT) philosophy The belief that
waste can be eliminated by cutting unnecessary
capacity or inventory and removing non-value-
added activities in operations.
 JIT system: A system that organizes the
resources, information flows, and decision rules
that enable a firm to realize the benefits of JIT
principles.
Characteristics
of Lean Systems
 Pull method of work flow

 Quality at the source
 Small lot sizes
 Uniform workstation loads
 Standardized components & work methods
 Close supplier ties
 Flexible workforce
 Line flows
 Automation
 Five S
 Preventive maintenance
Push and Pull
Systems of Work Flow
 Push method: A method in which
production of the item begins in advance of
customer needs.
 Example: A buffet where food is prepared in
advance.
 Pull Method: A method in which customer
demand activates production of the service
or item.
 Example: A restaurant where food is only
prepared when orders are placed.
 Lean systems use the pull method of work
flow.
Characteristics
of Lean Systems
 Pull method of materials flow

 Small lot sizes
 Line flows
 Automation
 Five S
Quality at the Source
 Quality at the source is an organization-wide effort

to improve the quality of a firm’s products by having
employees act as their own quality inspectors, and
never pass defective units to next stage.
 One approach for implementing quality at the source
is to use poka-yoke, mistake-proofing methods
aimed at designing fail safe systems that minimize
human error.
 Another approach for implementing quality at the
source is a practice the Japanese call jidoka, and
andon, which gives machines and machine
operators the ability to detect when an abnormal
condition has occurred.
Characteristics
of Lean Systems

 Small lot sizes
 Line flows
 Automation
 Five S
Small Lot Sizes
 Lot: A quantity of items that are

processed together.
 Setup: The group of activities needed
to change or readjust a process
between successive lots of items.
 Single-digit setup: The goal of having
a setup time of less than 10 minutes.

Characteristics
of Lean Systems

 Small lot sizes
 Line flows
 Automation
 Five S
Uniform
Workstation Loads
 A lean system works best if the daily load on

individual workstations is relatively uniform.
 Service processes can achieve uniform
workstation loads by using reservation systems
(e.g., scheduled surgeries) and differential pricing
to manage the demand.
 For manufacturing processes, uniform loads can
be achieved by assembling the same type and
number of units each day, thus creating a uniform
daily demand at all workstations.
 Mixed-model assembly produces a mix of models
in smaller lots.
Characteristics
of Lean Systems
 Small lot sizes
 Line flows
 Automation
 Five S
Line Flows
and Automation
 Line Flows: Managers of hybrid-office and back-

office service processes can organize their
employees and equipment to provide uniform work
flows through the process and, thereby, eliminate
wasted employee time.
 Another tactic used to reduce or eliminate setups is
the one-worker, multiple-machines (OWMM)
approach, which essentially is a one-person line.
 Automation plays a big role in lean systems and is
a key to low-cost operations.
Characteristics
of Lean Systems

 Small lot sizes
 Line flows
 Automation
 Five S
Five S (5S)
 Five S (5S) A methodology consisting of five workplace

practices conducive to visual controls and lean production.
1. Sort: Separate needed from unneeded items (including tools, parts,
materials, and paperwork), and discard the unneeded.
2. Straighten: Neatly arrange what is left, with a place for everything and
everything in its place. Organize the work area so that it is easy to find
what is needed.
3. Shine: Clean and wash the work area and make it shine.
4. Standardize: Establish schedules and methods of performing the
cleaning and sorting. Formalize the cleanliness that results from
regularly doing the first three S practices so that perpetual cleanliness
and a state of readiness is maintained.
5. Sustain: Create discipline to perform the first four S practices, whereby
everyone understands, obeys, and practices the rules when in the plant.
Implement mechanisms to sustain the gains by involving people and
recognizing them via a performance measurement system.
Continuous Improvement
with Lean Systems

The Single-Card Kanban System
 Kanban means “card” or “visible record” in Japanese &
refers to cards used to control the flow of production
through a factory.
 General Operating Rules:
Ø Each container must have a card.
Ø The assembly line always withdraws materials from fabrication
(pull system).
Ø Containers of parts must never be removed from a storage area
without a kanban being posted on the receiving post.
Ø The containers should always contain the same number of good
parts. The use of nonstandard containers or irregularly filled
containers disrupts the production flow of the assembly line.
Ø Only nondefective parts should be passed along.
Ø Total production should not exceed the total amount authorized on
©
© 2007 the kanbans
2007 Pearson
Pearson Education in the system.
Education
Determining the
Number of Containers
Example 9.1 Westerville Auto Parts Company
produces rocker-arm assemblies for use in the
steering and suspension systems of four-wheel-drive
trucks.
A typical container of parts spends 0.02 day in
processing and 0.08 day in materials handling and
waiting during its manufacturing cycle.
Daily demand for the part is 2,000 units.
Management believes that demand for the rocker-
arm assembly is uncertain enough to warrant a
safety stock equivalent of 10 percent of inventory.
Calculations for
Example 9.1
Westerville Auto Parts

a. If each container contains 22 parts, how many containers
should be authorized?
d = 2000 units/day p = 0.02 day  = 0.10

w = 0.08 day c = 22 units
d( w + p )( 1 +  )
k=
c
2000( 0.08 + 0.02 )( 1 + 0.10 )
k=
22
k = 10 containers
Calculations for
Example 9.1
Westerville Auto Parts

b. A proposal to revise the plant layout would cut materials
handling and waiting time per container to 0.06 day. How many
containers would be needed?
d = 2000 units/day p = 0.02 day  = 0.10

w = 0.06 day c = 22 units
d( w + p )( 1 +  )
Proposed k=
change c
from 0.08 2000( 0.06 + 0.02 )( 1 + 0.10 )
k=
22
k = 8 containers
Value Stream Mapping
Product
family  Value stream mapping (VSM) is a
qualitative lean tool for eliminating
waste (or muda) that involves a
Current state current state drawing, a future state
drawing drawing, and an implementation
plan.
Future state
drawing  Value stream mapping (VSM)
spans the entire value chain, from
the firm’s receipt of raw materials
Work plan & to the delivery of finished goods to
implementation the customer.

Selected Set of
Value Stream Mapping Icons

A Representative Current State
Map for a Family of Retainers at a
Bearings Manufacturing Company

Organizational
Considerations
 The human costs: Lean system implementation

requires a high degree of regimentation, and
sometimes it can stress the workforce.
 Cooperation & Trust: Workers and first-line
supervisors must take on responsibilities formerly
assigned to middle managers and support staff.
 Reward systems and labor classifications must
often be revamped when a lean system is
implemented.
 Existing layouts may need to be changed.

Process Considerations
Inventory & Scheduling
 Schedule Stability: Daily production schedules in

high-volume, make-to-stock environments must be
stable for extended periods.
 Setups: If the inventory advantages of a lean

system are to be realized, small lot sizes must be
used.
 Purchasing and Logistics: If frequent, small

shipments of purchased items cannot be arranged
with suppliers, large inventory savings for these
items cannot be realized.

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Process Layout

© 2007 Pearson Education

© 2007 Pearson Education

 Layout planning is planning that involves decisions

Before a manager can make decisions

 The location of a center has two

© 2007 Pearson Education

© 2007 Pearson Education

 Layout choices can help communicate an

© 2007 Pearson Education

 Flexible-flow layout: A layout that organizes

A job shop has a flexible-flow layout.

Grinding Forging Lathes

Painting Welding Drills

© 2007 Pearson Education

 Step 1: Gather information

Example 8.1 Office of Budget Management

Space Requirements Current Block Plan

Department Area Needed (ft2)

© 2007 Pearson Education

Example 8.1 Office of Budget Management

Proposed Block Plan

First put departments 1 and 6 close together

© 2007 Pearson Education 150'

 Euclidean distance is the straight-line distance, or

 Rectilinear distance: The distance between two

© 2007 Pearson Education

dAB = (xA – xB)2 + (yA – yB)2

dAB = |xA – xB| + |yA – yB|

© 2007 Pearson Education

A production line has a line-flow layout.

Station 1 Station 2 Station 3 Station 4

© 2007 Pearson Education

 Line balancing is the assignment of work to

© 2007 Pearson Education

© 2007 Pearson Education

 Desired output rate, r must be matched to the staffing or

 Cycle time, c is the maximum time allowed for

© 2007 Pearson Education

Theoretical minimum (TM ) is a benchmark or goal for the

Idle time is the total unproductive time for all

 Cycle time, c = 1/60

© 2007 Pearson Education

Theoretical minimum (TM ) - sum of all work-element

TM = 244 seconds/60 seconds = 4.067

Cycle time: c = 1/60 = 1 minute/unit = 60 seconds/unit

Efficiency (%) - ratio of productive time to total time.

Efficiency = [244/5(60)]100 = 81.3%

Balance Delay - amount by which efficiency falls short of 100%.

(100 − 81.3) = 18.7%

In addition to balancing a line, managers must also

1. Pacing: The movement of product from one station

© 2007 Pearson Education

 Layout flexibility is the property of a facility to

 Group Technology (GT) is an option for

 The GT method groups parts or products

Lathing Milling Drilling

© 2007 Pearson Education

© 2007 Pearson Education

Zones Zones Control

Click to add title doors

 Most formal procedures for designing office layouts

© 2007 Pearson Education

© 2007 Pearson Education