Process Selection &

Facility Layout

2-1
PROCESS SELECTION

◦ Processes convert inputs into outputs

◦ Process selection refers to deciding on the way production of

goods or services will be organized

◦ It affects the entire organization and its ability to achieve its

mission and effective supply chain system
PROCESS SELECTION (CONTD.)

◦ Key aspects help in process selection are –

◦ Capital Intensity – The mix of equipment and labor that will be
used by the organization

◦ Process Flexibility – The degree to which the system can be

adjusted to changes in processing requirements due to such
factors as changes in product or service design, changes in
volume processed and changes in technology

How much variety

What degree of
in products or What is the
equipment
services will the expected volume
flexibility will be
system need to of output
needed
handle
PROCESS SELECTION (CONTD.)

Facilities and
Forecasting Capacity Equipment
Planning

Product and Layout

Service Design

Process
Selection
Technological Work Design
Change
PROCESS TYPES
JOB SHOP
◦ A job shop usually operates on a relatively small scale. It is
used when a low volume of high variety goods or service will
be needed.
◦ Here processing is intermittent – work includes small jobs,
each with different processing requirements
◦ High flexibility using general purpose equipment and skilled
workers are important characteristics of a job shop

Organization producing state of the art tools

Hospital medical service
PROCESS TYPES (CONTD.)
BATCH
◦ Batch processing is used when a moderate volume of goods or
services is desired. Also it can handle a moderate variety in
products or services
◦ The equipment need not be as flexible as in a job shop but
processing is still intermittent
◦ The skill level of workers does not need to be as high as in a
job shop because there is less variety in the jobs

Bakeries which make bread, cakes, cookies in batches

Plane carrying batches of people from airport to airport
Class room lecture, Concerts, Television programs
PROCESS TYPES (CONTD.)
REPETITIVE
◦ When higher volumes of more standardized goods or services
are needed, repetitive processing is used. Standardized output
means only slight flexibility of equipment is needed
◦ The requirement of skilled workers is generally low

Manufacturing plants producing pencils, television sets etc.

Automatic carwash, cafeteria lines etc.
PROCESS TYPES (CONTD.)
CONTINUOUS FLOW
◦ When a very high volume of nondiscrete, highly standardized
output is desired, a continuous system is used
◦ These systems have almost no variety in output and hence no
need for equipment flexibility
◦ Highly specialized equipment can turn down the requirement
of expert worker

Factory producing sugar, flour, steel, salt

Internet service
PROCESS TYPES (CONTD.)
PROJECT
◦ A nonrepetitive set of activities directed toward a unique goal
within limited time frame
◦ A project is used for work that is nonroutine, with a unique set
of objectives to be accomplished in a limited time frame
◦ Equipment flexibility and worker skill can range from low to
high

Building a dam, making a motion picture,

Launching a new product or service
AUTOMATION
◦ Automation is machinery that has sensing and control devices
that enable it to operate automatically
◦ Automation can range from factories that are completely
automated to a single automated operation. Now a days
service is also enjoying automation. For example, Bank ATM
system
◦ Automation offers a number of advantages over human labor
◦ It has low variability whereas it is difficult for a human to
perform a task in exactly the same way, in the same
amount of time
◦ Machines do not get bored or distracted, nor they go out
on strike, ask for higher wages or for labor grievances
AUTOMATION (CONTD.)
◦ Automation is frequently pushed as a strategy necessary for
cost competitiveness
◦ Automation also offers a number of disadvantages over
human labor
◦ Technology is very expensive, usually it requires high
volumes of output to offset high costs
◦ Automation is much less flexible. Once the process has
been automated, there is substantial reason for not
changing it

Careful planning is necessary to successfully integrate automation into

a production system
Manufacturing cell, N/C machine, FMS
TYPES OF AUTOMATION
FIXED AUTOMATION
◦ It is the most rigid type automation. Sometimes referred as
Detroit type automation

◦ It uses low cost, specialized equipment for a fixed sequence of

operations. Low cost and high volume production are its
primary advantages

◦ Minimal variety and the cost of making major changes in

either product or process are its primary limitations
TYPES OF AUTOMATION (CONTD.)
PROGRAMMABLE AUTOMATION
◦ Programmable automation involves use of high cost, general
purpose equipment controlled by a computer program. The
computer provides both the sequence of operations and
specific details about each operation

◦ It has the capability of economically producing a fairly wide

variety of low volume products in small batches

Robot is a machine consisting of a mechanical arm, a

power supply and a controller. Robots can handle a wide
variety of tasks including welding, assembly, loading and
unloading of machines, painting and testing.
TYPES OF AUTOMATION (CONTD.)
FLEXIBLE AUTOMATION
◦ Flexible Manufacturing System (FMS): A FMS is a group of
machines that include supervisory computer control,
automatic material handling and robots. This system can
produce a variety of similar products. Systems can range from
three or four machines to more than a dozen

◦ It has the capability of reducing labor cost and maintain the

quality constantly
◦ It requires less capital investment and offers high flexibility
than fixed automation
◦ FMS helps to achieve both the flexibility of job shop
processing and productivity of repetitive process systems
FACILITIES 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 s i ons
c i
a y o ut de ong
◦ Combination layouts L lve l
invo rm
te
i t m ent
comm
OBJECTIVE OF LAYOUT DESIGN
◦ Facilitate attainment of product or service quality
◦ Use workers and space efficiently
◦ Avoid bottlenecks
◦ Minimize unnecessary material handling costs
◦ Eliminate unnecessary movement of workers or materials
◦ Minimize production time or customer service time
◦ Design for safety
PRODUCT LAYOUT
◦ Layout that uses standardized processing operations to
achieve smooth, rapid, high-volume output

o od for
G i ve &
ti t
repe nuous
i
cont ess
proc

PROCESS LAYOUT
◦ Layout that can handle varied processing requirements

fo r job
d
Goo b a tch
&
shop cess
pro
FIXED POSITION LAYOUT
◦ Layout in which the product or project remains stationary, and
workers, materials, and equipment are moved as needed

◦ Line Balancing is the process of assigning tasks to

workstations in such a way that the workstations have
approximately equal time requirements.
◦ Precedence diagram Tool used in line balancing to display
elemental tasks and sequence requirements.
◦ Cycle time is the maximum time allowed at each workstation
to complete its set of tasks on a unit.
◦ Layout in which machines are grouped into a cell that can
process items that have similar processing requirements is
cellular layout.