6-1

Process Selection and Facility Layout

Operations Management

William J. Stevenson

8th edition

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Process Selection and Facility Layout

CHAPTER

Process Selection and Facility Layout

McGraw-Hill/Irwin

Operations Management, Eighth Edition, by William J. Stevenson Copyright 2005 by The McGraw-Hill Companies, Inc. All rights reserved.

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Process Selection and Facility Layout

Introduction
y

Process selection
y

Deciding on the way production of goods or services will be organized

Major implications
Capacity planning y Layout of facilities y Equipment y Design of work systems
y

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Process Selection and Facility Layout

Process Selection and System Design

Figure 6.1 Facilities and Equipment

Forecasting

Capacity Planning

Product and Service Design Process Selection

Layout

Technological Change

Work Design

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Process Selection and Facility Layout

Process Strategy
Key aspects of process strategy

Capital intensive equipment/labor Process flexibility Adjust to changes

Design Volume technology

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Process Selection and Facility Layout

Process Selection
y

Variety
y

How much What degree Expected output

Job Shop

Batch Repetitive

Flexibility
y

Volume
y

Continuous

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Process Selection and Facility Layout

Process Types
y

Job shop
y

Small scale Moderate volume High volumes of standardized goods or services Very high volumes of non-discrete goods

Batch
y

Repetitive/assembly line
y

Continuous
y

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Process Selection and Facility Layout

Product Process Matrix

Figure 6.2
Process Type

Job Shop Batch

Appliance repair Emergency room Commercial bakery Classroom Lecture

Not feasible

Repetitive

Automotive assembly Automatic carwash

Continuous (flow)

Not feasible

Oil refinery Water purification

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Process Selection and Facility Layout

Product Process Matrix

Figure 6.2 (contd)
Dimension Job variety Process flexibility Unit cost Volume of output Very High Very High Very High Very High Moderate Moderate Moderate Low Low Low Low High Very low Very low Very low Very low

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Automation
y

Automation: Machinery that has sensing and control devices that enables it to operate
Fixed automation y Programmable automation
y

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Automation
Computer-aided design and manufacturing systems (CAD/CAM) Numerically controlled (NC) machines Robot Manufacturing cell Flexible manufacturing systems(FMS) Computer-integrated manufacturing (CIM)

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Facilities Layout
y

Layout: the configuration of departments, work centers, and equipment, with particular emphasis on movement of work (customers or materials) through the system

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Importance of Layout Decisions

Requires substantial investments of money and effort y Involves long-term commitments y Has significant impact on cost and efficiency of short-term operations
y

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The Need for Layout Decisions

Inefficient operations
For Example:

High Cost Bottlenecks

Changes in the design of products or services

Accidents
The introduction of new products or services

Safety hazards

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The Need for Layout Design (Contd)

Changes in environmental or other legal requirements

Changes in volume of output or mix of products Morale problems

Changes in methods and equipment

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Basic Layout Types

y y y y

Product layouts Process layouts Fixed-Position layout Combination layouts

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Basic Layout Types

y

Product layout
y

Layout that uses standardized processing operations to achieve smooth, rapid, highvolume flow Layout that can handle varied processing requirements Layout in which the product or project remains stationary, and workers, materials, and equipment are moved as needed

Process layout
y

Fixed Position layout

y

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Product Layout
Figure 6.4

Raw materials or customer

Material and/or labor

Station 1 Material and/or labor

Station 2 Material and/or labor

Station 3 Material and/or labor

Station 4

Finished item

Used for Repetitive or Continuous Processing

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Advantages of Product Layout

High rate of output y Low unit cost y Labor specialization y Low material handling cost y High utilization of labor and equipment y Established routing and scheduling y Routing accounting and purchasing
y

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Disadvantages of Product Layout

Creates dull, repetitive jobs y Poorly skilled workers may not maintain equipment or quality of output y Fairly inflexible to changes in volume y Highly susceptible to shutdowns y Needs preventive maintenance y Individual incentive plans are impractical
y

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A U-Shaped Production Line UFigure 6.6

In

4 5

Workers

6
Out

10

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Process Layout
Figure 6.7

Process Layout (functional)

Dept. A Dept. C Dept. E

Dept. B

Dept. D

Dept. F

Used for Intermittent processing Job Shop or Batch

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Product Layout
Figure 6.7 (contd)

Product Layout (sequential)

Work Station 1 Work Station 2 Work Station 3

Used for Repetitive Processing Repetitive or Continuous

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Advantages of Process Layouts

y

Can handle a variety of processing requirements y Not particularly vulnerable to equipment failures y Equipment used is less costly y Possible to use individual incentive plans

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Disadvantages of Process Layouts

In-process inventory costs can be high y Challenging routing and scheduling y Equipment utilization rates are low y Material handling slow and inefficient y Complexities often reduce span of supervision y Special attention for each product or customer y Accounting and purchasing are more involved
y

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Cellular Layouts
y

Cellular Production
y

Layout in which machines are grouped into a cell that can process items that have similar processing requirements The grouping into part families of items with similar design or manufacturing characteristics

Group Technology
y

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Functional vs. Cellular Layouts

Table 6.3 Dimension
Number of moves between departments Travel distances Travel paths Job waiting times Throughput time Amount of work in process Supervision difficulty Scheduling complexity Equipment utilization

Functional
many longer variable greater higher higher higher higher lower few shorter fixed shorter lower lower lower lower higher

Cellular

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Other Service Layouts

y

Warehouse and storage layouts y Retail layouts y Office layouts

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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.

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Cycle Time

Cycle time is the maximum time allowed at each workstation to complete its set of tasks on a unit.

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Determine Maximum Output

OT Output capacity = CT OT ! operating time per day D = Desired output rate OT CT = cycle time = D

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Determine the Minimum Number of Workstations Required

N =

(D)( t) OT = sum of task times

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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 c
0.7 min.

b d
0.5 min.

A Simple Precedence Diagram

e
0.2 min.

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Example 1: Assembly Line Balancing

y

Arrange tasks shown in Figure 6.10 into three workstations.

Use a cycle time of 1.0 minute y Assign tasks in order of the most number of followers
y

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Example 1 Solution
Time Remaining
1.0 0.9 0.2 1.0 1.0 0.5 0.3

Workstation
1

Eligible
a, c c none b d e -

Assign Task
a c b d e -

Revised Time Remaining

0.9 0.2

Station Idle Time

0.2 0.0 0.5 0.3 0.0 0.3 0.5

2 3

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Calculate Percent Idle Time

Idle time per cycle Percent idle time = (N)(CT)

Efficiency = 1 Percent idle time

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Line Balancing Rules Some Heuristic (intuitive) Rules:

y

Assign tasks in order of most following tasks.

y

Count the number of tasks that follow

Assign tasks in order of greatest positional weight.

y

Positional weight is the sum of each tasks time and the times of all following tasks.

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Example 2

0.2

0.2

0.3

a
0.8

b
0.6

f
1.0

g
0.4

h
0.3

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Solution to Example 2

Station 1

Station 2

Station 3

Station 4

a c

e f d g h

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Parallel Workstations
1 min. 30/hr. 1 min. 30/hr. 2 min. 30/hr. 1 min. 30/hr.

Bottleneck
30/hr. 1 min. 60/hr. 1 min. 30/hr. 1 min. 30/hr. 1 min. 30/hr. 1 min. 60/hr.

Parallel Workstations

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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

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Figure 6.12

Example 3: Interdepartmental Work Flows for Assigned Departments

30 1 170 3 10 0 2

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Authors note:
y

The following three slides are not in the 8e, but I like to use them for alternate examples.

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Process Layout
Milling Assembly & Test Grinding

Drilling

Plating

Process Layout - work travels to dedicated process centers

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Functional Layout

222 444

Mill

222 111 444

222

Drill
1111 2222

Grind

3333

111 333 111 333

Assembly
111

Lathes

Heat treat

Gear cutting

111 444

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Cellular Manufacturing Layout

-1111 Lathe Mill Drill Heat treat Heat treat Heat treat Drill Gear -1111 cut Assembly Grind - 2222

222222222

Mill

Drill

3333333333

Lathe Mill

Grind - 3333

44444444444444

Mill

Gear - 4444 cut

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Flexible Manufacturing

VD7 Process at Trek Bikes

6-48 Process Selection and Facility Layout

Location/Criteria

PS11 Guitar site location

6-49 Process Selection and Facility Layout

Process Overview

AB2 Aluminum tubing, suppliers at Hillerich & Bradsby