CHAPTER 6

Process Selection
and
Facility Layout

CHAPTER 6: LEARNING OBJECTIVES

LO 6.1 Strategic importance of process selection
LO 6.2 Two main factors that influence process
selection
LO 6.3 Compare the four basic processing types
LO 6.4 Explain the need for management of
technology
LO 6.5 Describe product and process layouts and
their main advantages and disadvantages
LO 6.6 Designing Product Layouts: Solve simple line-
balancing problems
LO 6.7 Designing process layouts

6-2

2
 PROCESS SELECTION
 Process selection
 Refersto deciding on the way production
of goods or services will be organized
 It has major implications for
 Capacity planning
 Layout of facilities
 Equipment

 Design of work systems

6-3
LO 6.1

PROCESS SELECTION AND SYSTEM DESIGN

6-4
LO 6.1

4
 PROCESS STRATEGY
Key aspects of process strategy:
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
Product and service design changes
Volume changes
Changes in technology
6-5
LO 6.1

PROCESS SELECTION
Two key questions in process selection:
1. How much variety will the process need to be
able to handle?
2. How much volume will the process need to be
able to handle?
Process Types
There are five basic process types:
1. job shop,
2. batch, ongoing
3. repetitive, operations.

4. continuous, and
5. project. Limited Duration
6-6
LO 6.2

6
 TYPES OF PROCESSING
Repetitive/ Repetitive/
Continuous
Job Shop
Batch Batch Continuous
Assembly Assembly
Highly
Semi- Semi- Highly
Standardized
Customized Standardized
standardized standardized standardized
Description goods
goods or
goods or
or goods or
goods or goods or
services
services services
services services services
Flexibility; Flexibility;
Able to
Low
Very
easy unit cost, easy to add Low unit cost, Very efficient,
efficient,
to add
handle a
high
Advantages wide very
or volume,
high
change or change high volume, very high
variety
efficient
volumeor products or
products efficient volume
of work
services services
Slow,
Very high
rigid, Very rigid,
cost
lackper
Moderate of Moderate lack of
Low Low
cost variety,
unit,
per unit, cost per unit, variety,
flexibility, flexibility,
Disadvantages high
complex
costly to
cost of moderate
moderate costly to
high cost of
change,
planning
scheduling very scheduling change, very
downtime* downtime*
high andcost of complexity
complexity high cost of
scheduling
downtime downtime
6-7
LO 6.3

TYPES OF PROCESSING
Volume and variety influence process choice
Variety

V
o
l
u
m
e

6-8
LO 6.3

8
 PROJECT
A Project is used for work that is non-routine, with a
unique set of objectives to be accomplished in a
limited time frame.
 Examples range from simple to complicated,
including
 consulting,
 making a motion picture,
 launching a new product or service,
 publishing a book,
 building a dam,
 and building a bridge.
 Equipment flexibility and worker skills can range
from low to high.
6-9

PROCESS CHOICE AFFECTS NUMEROUS

ACTIVITIES/FUNCTIONS
Activity/
Job Shop Batch Repetitive Continuous Projects
Function
Somewhat
Cost estimation Difficult Routine Routine Simple to complex
routine
Cost per unit High Moderate Low Low Very high

General General Special Special

Equipment used Varied
purpose purpose purpose purpose
Fixed costs Low Moderate High Very high Varied
Variable costs High Moderate Low Very low High
Labor skills High Moderate Low Low to high Low to high

Promote
capabilities; Promote Promote
Promote semi- standardized standardized Promote
Marketing
capabilities standardized goods/servic goods/servic capabilities
goods and es es
services

Moderately Complex, subject

Scheduling Complex Routine Routine
complex to change
Work-in-process
High High Low Low Varied
inventory 6-10

10
 PROCESS SELECTION
Product and Service Profiling
 Linking key product or service requirements to process
capabilities.
 Use
 to avoid any inconsistencies by identifying key
product or service dimensions and then selecting
appropriate processes.
 Key dimensions often relate to
 the range of products or services that will be
processed,
 expected order sizes,
 pricing strategies,
 expected frequency of schedule changes, and
 order-winning requirements.
6-11

11

PROCESS SELECTION
Sustainable Production of Goods and Services
There is increasing pressure for organizations to
operate sustainable production processes
 According to the Lowell Center* for Sustainable
Production:
 “Sustainable Production is the creation of goods
and services using processes and systems that
are: non-polluting; conserving of energy and
natural resources; economically efficient; safe
and healthful for workers, communities, and
consumers; and, socially and creatively
rewarding for all working people.”

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12
 PROCESS SELECTION
Sustainable Production of Goods and Services

 “Wastes and ecologically incompatible byproducts

are reduced, eliminated or recycled on-site;
 Chemical substances or physical agents and
conditions that present hazards to human health or
the environment are eliminated;
 Energy and materials are conserved, and the forms
of energy and materials used are most appropriate
for the desired ends; and
 Workspaces are designed to minimize or eliminate
chemical, ergonomic and physical hazard.

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13

PROCESS SELECTION
Sustainable Production of Goods and Services
 To achieve these goals, business organizations must
focus on a number of factors that include energy
use and efficiency,
 CO2 (carbon footprint) and toxic emissions,
 waste generation,
 lighting,

 heating, cooling, ventilation,

 noise and vibration, and
 worker health and safety.
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14
 PROCESS SELECTION
Lean Process Design
 Based on principle of waste reduction, which
relates to sustainability objectives.
 Focuses on variance reduction in workload over the
entire process to achieve level production and
thereby improve process flow.
 Results in reduced inventory and floor space;
 Quicker response times and shorter lead times;
 Reduced defects, rework, and scrap; and
 Increased productivity.
 Broad applications in diverse areas such as health
care delivery systems, manufacturing, construction
projects, and process reengineering.
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15

TECHNOLOGY

Technological innovation
 The discovery and development of new or improved
products, services, or processes for producing or
providing them.

Technology
 The application of scientific discoveries to the
development and improvement of products and
services and operations processes.

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16
 TECHNOLOGY

Process technology
Methods, procedures, and equipment used to
produce goods and provide services
 This not only involves processes within an
organization, it also extends to supply chain
processes.

Information technology
The science and use of computers and other
electronic equipment to store, process, and
send information

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17

TECHNOLOGY
The Need to Manage Technology
 Process technology benefits;
 Increased quality
 Lower cost
 Increasing Productivity
 Competitiveness

Risks
 Economic considerations (initial cost, space, cash
flow, maintenance, consultants),
 Integration considerations (cost, time, resources),
 Human considerations (training, safety, job loss).
6-18
LO 6.4

18
 TECHNOLOGY
Automation
 Machinery that has sensing and control devices
that enable it to operate automatically

 Fixed automation

 Programmable automation

 Flexible automation

6-19

19

TECHNOLOGY
Automation
Advantages
 It has low variability
 Machines do not get bored or distracted, nor do
they go out on strike, ask for higher wages, or file
labor grievances.
 Reduction of variable costs
 Both manufacturing and service organizations are
increasing their use of automation as a way to
 Reduce costs,
 Increase productivity, and
 Improve quality and consistency.
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20
 TECHNOLOGY
Automation
Disadvantages

 Technology is expensive;

 Usually it requires high volumes of output to offset

high costs.

 Automation is much less flexible than human

labor.

 Workers sometimes fear automation because it

might cause them to lose their jobs.

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21

TECHNOLOGY
Automation Types
1. Fixed Automation
 Fixed automation is the least flexible.
 It uses high-cost, specialized equipment for a
fixed sequence of operations.
 Low cost and high volume are its primary
advantages;
 minimal variety and the high cost of making major
changes in either product or process are its
primary limitations.
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22
 TECHNOLOGY
Automation Types
2. Programmable automation
 Involves the use of high-cost,
 general-purpose equipment controlled by a
computer program that provides both the
sequence of operations and specific details about
each operation
 has the capability of economically producing a
fairly wide variety of low-volume products in
small batches.
 Numerically controlled (N/C) machines
 robots are applications of programmable
automation.
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23

TECHNOLOGY
Automation Types
2. Programmable Automation
Computer-Aided Manufacturing (CAM)
The use of computers in process control, ranging
from robots to automated quality control
Numerically Controlled (N/C) Machines
Machines that perform operations by following
mathematical processing instructions*
Robot

A machine consisting of a mechanical arm, a

power supply, and a controller

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24
 TECHNOLOGY
Automation Types

3. Flexible automation
 FMS (Flexible Manufacturing System)
A group of machines designed to handle
intermittent processing requirements and
produce a variety of similar products
 CIM (Computer Integrated Manufacturing)
A system for linking a broad range of
manufacturing activities through an
integrated computer system

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25

TECHNOLOGY
Automation Types
3. Flexible automation
FLEXIBLE MANUFACTURING SYSTEM (FMS)

A group of machines designed to handle

intermittent processing requirements and
produce a variety of similar products
 Havesome of the benefits of automation and
some of the flexibility of individual, or stand-
alone, machines
 Includes supervisory computer control,
automatic material handling, and robots or
other automated processing equipment
6-26

26
 TECHNOLOGY
Automation Types
3. Flexible automation
COMPUTER INTEGRATED MANUFACTURING (CIM)
A system for linking a broad range of
manufacturing activities through an integrated
computer system
Activities include
 Engineering design
 FMS
 Purchasing
 Order processing
 Production planning and control 6-27

27

TECHNOLOGY
3D Printing
A process that creates a three-dimensional object by
adding successive layers of material.
 AKA additive manufacturing

Benefits
 it does offer an alternate form of production that
provides value in a wide range of applications.
 to substantially reduce the cost and/or time
Replacement occurs much faster
 Economical production of small quantities of items,
and the avoidance of shipping costs and time
when the application is not near a supplier.
 https://www.youtube.com/watch?v=Pt2epukih2k&ab_chann
6-28
el=3DPrintingNerd

28
 TECHNOLOGY
Drones
Drones are remotely-controlled unmanned aircraft,
usually small.
An “eye-in-the sky” to obtain visual detail in places
that are hazardous to humans or that are not readily
accessible.
Issues
 possibility of collisions with other drones,
 power lines, birds, or other objects
 mechanical failure or operator error, any of which
can result in failure to accomplish the intended
task.
 crashes have the potential to injure nearby
humans or cause damage to property.
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29

STRATEGIC RESOURCE ORGANIZATION:

FACILITIES LAYOUT*
Layout

The configuration of departments, work centers,

and equipment, with particular emphasis on
movement of work (customers or materials)
through the system

 Facilities layout decisions arise when:

 Designing new facilities

 Re-designing existing facilities

6-30

30
 FACILITIES LAYOUT
The Need for Layout Planning
1. Inefficient operations
i. High cost
ii. Bottlenecks
2. Accidents or safety hazards
3. Changes in product or service design
4. Introduction of new products or services
5. Changes in output volume or product mix
6. Changes in methods or equipment
7. Changes in environmental or other legal
requirements
8. Morale problems*
6-31
LO 6.5

31

FACILITIES LAYOUT
Layout Design Basic objective
 Facilitate a smooth flow of work, material, and
information through the system
 Supporting objectives
1. Facilitate product or service quality
2. Use workers and space efficiently
3. Avoid bottlenecks
4. Minimize material handling costs
5. Eliminate unnecessary movement of workers or
material
6. Minimize production time or customer service
time
7. Design for safety
6-32
LO 6.5

32
 FACILITIES LAYOUT
Basic Layout Types

 Product layouts

 Process layouts

 Fixed-position layout

 Combination layouts

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33

FACILITIES LAYOUT
Basic Layout Types
1. REPETITIVE PROCESSING: PRODUCT LAYOUTS
Layout that uses standardized processing
operations to achieve smooth, rapid, high-volume
flow
Cafeteria line
Raw materials
or customer Station Station Station Station Finished
1 2 3 4 item

Material Material Material Material

and/or and/or and/or and/or
labor labor labor labor

Used for Repetitive Processing Repetitive or Continuous

6-34
LO 6.6

34
 FACILITIES LAYOUT
Basic Layout Types
1. REPETITIVE PROCESSING: PRODUCT LAYOUTS
Advantages Disadvantages
High rate of output  Creates dull, repetitive jobs
Low unit cost  Poorly skilled workers may not
Labor specialization maintain equipment or quality
Low material handling cost of output
per unit  Fairly inflexible to changes in
High utilization of labor and volume or product or process
equipment design
Established routing and  Highly susceptible to shutdowns
scheduling  Preventive maintenance,
Routine accounting, capacity for quick repair and
purchasing, and inventory spare-parts inventories are
control necessary expenses
 Individual incentive plans are
impractical
6-35
LO 6.6

35

FACILITIES LAYOUT
Basic Layout Types
1. REPETITIVE PROCESSING: PRODUCT LAYOUTS – U SHAPED
 U-shaped line is more compact;
 it often requires approximately half the length of a
straight production line
 U-shaped line permits increased communication
among workers thus facilitating teamwork.
 Flexibility in work assignments is increased because
workers can handle not only adjacent stations but
also stations on opposite sides of the line.
 Moreover, if materials enter the plant at the same
point that finished products leave it, a U-shaped line
minimizes material handling.

6-36
LO 6.6

36
 FACILITIES LAYOUT
Basic Layout Types
2. NON-REPETITIVE PROCESSING: PROCESS LAYOUTS
 Layouts that can handle varied processing
requirements

Dept. A Dept. C Dept. E

Dept. B Dept. D Dept. F

Used for Intermittent processing

LO 6.7
Job Shop or Batch 6-37

37

FACILITIES LAYOUT
Basic Layout Types
2. NON-REPETITIVE PROCESSING: PROCESS LAYOUTS
Advantages Disadvantages
 In-process inventories can be
 Can handle a variety of high
processing requirements  Routing and scheduling pose
continual challenges
 Not particularly vulnerable to  Equipment utilization rates are
equipment failures low
 Material handling is slow and
 General-purpose equipment is inefficient
often less costly and easier  Reduced spans of supervision
 Special attention necessary for
and less costly to maintain each product or customer
 It is possible to use individual  Accounting, inventory control,
and purchasing are more
incentive systems involved
6-38
LO 6.7

38
 FACILITIES LAYOUT
Basic Layout Types
COMPARISON OF PROCESS AND PRODUCT LAYOUTS

6-39
LO 6.7

39

FACILITIES LAYOUT
Basic Layout Types

3. FIXED POSITION LAYOUT

 Layout in which the product or project remains

stationary, and workers, materials, and
equipment are moved as needed

6-40

40
 FACILITIES LAYOUT
Basic Layout Types
4. COMBINATION LAYOUTS
 Some operational environments use a combination
of the three basic layout types:
 Hospitals
 Supermarket
 Shipyards
 Some organizations are moving away from process
layouts in an effort to capture the benefits of product
layouts
 Cellular manufacturing
 Group Technology
 Flexible manufacturing systems
6-41

41

CELLULAR LAYOUTS
 Cellular production
Layout in which workstations are grouped into a
cell that can process items that have similar
processing requirements
 Groupings are determined by the operations
needed to perform the work for a set of similar
items, part families, that require similar
processing
 The cells become, in effect, miniature versions
of product layouts

6-42

42
 CELLULAR LAYOUTS
Traditional
Process
Layout

Cellular
Layout

6-43

43

GROUP TECHNOLOGY
Group technology
The grouping into part families of items with similar
design or manufacturing characteristics
 Design characteristics:
 Size
 Shape
 Function
 Manufacturing or processing characteristics
 Type of operations required
 Sequence of operations required
 Requires a systematic analysis of parts to identify
the part families

6-44

44
 FACILITIES LAYOUT
SERVICE LAYOUTS
 Service layouts can be categorized as:
 product, process, or fixed position
 Service layout requirements are somewhat different
due to such factors as:
 Degree of customer contact
 Degree of customization**
 Common service layouts:
 Warehouse and storage layouts
 Retail layouts
 Office layouts
 Restaurant Layouts
 Hospital Layouts
6-45

45

DESIGNING PRODUCT LAYOUTS:

LINE BALANCING

 The goal of a product layout is to arrange workers

or machines in the sequence that operations need
to be performed

The sequence is referred to as a production line or

an assembly line.

6-46
LO 6.8

46
 DESIGNING PRODUCT LAYOUTS
LINE BALANCING
 The process of assigning tasks to workstations in
such a way that the workstations have
approximately equal time requirements
 Goal:
 minimizes idle time along the line and results
in a high utilization of equipment and labor
 Why is line balancing important?
1. It allows us to use labor and equipment more
efficiently
2. To avoid fairness issues that arise when one
workstation must work harder than another

6-47
LO 6.8

47

DESIGNING PRODUCT LAYOUTS

LINE BALANCING
CYCLE TIME
 Themaximum time allowed at each workstation
to complete its set of tasks on a unit
 Cycle time also establishes the output rate of a
line

6-48
LO 6.8

48
 EXAMPLE
Suppose that the line will operate for 8 hrs (480min)
and the desired output rate is 480 units, what is cycle
time?

Assume that the line will operate for eight hours per
day (480 minutes). output would be
• With a cycle time of 1.0 minute,
• With a cycle time of 2.5 minutes,
6-49
LO 6.8

49

HOW MANY WORKSTATIONS ARE

NEEDED?
 The required number of workstations is a function of
 Desired output rate
 Our ability to combine tasks into a workstation
 Theoretical minimum number of stations

6-50
LO 6.8

50
 EXAMPLE
Suppose that the work required to fabricate a certain
product can be divided up into five elemental tasks,

 The task times govern the range of possible cycle times.

 The minimum cycle time is equal to the longest task
time (1.0 minute),
 and the maximum cycle time is equal to the sum of the
task times (0.1 + 0.7 + 1.0 + 0.5 + 0.2 = 2.5 minutes).
 The minimum cycle time would apply if there were five
workstations.
 The maximum cycle time would apply if all tasks were
performed at a single workstation.
 The minimum and maximum cycle times are important
because they establish the potential range of output for
LO 6.8 the line,
6-51

51

EXAMPLE
Suppose that the work required to fabricate a certain
product can be divided up into five elemental tasks,

6-52
LO 6.8

52
 DESIGNING PRODUCT LAYOUTS
LINE BALANCING
 Precedence diagram
A diagram that shows elemental tasks and their
precedence requirements

6-53
LO 6.8

53

DESIGNING PRODUCT LAYOUTS

LINE BALANCING

ASSIGNING TASKS TO WORKSTATIONS

 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

6-54
LO 6.8

54
 ASSIGNING TASKS TO WORKSTATIONS
EXAMPLE 1 - Assigning Tasks According to Greatest
Number of Following Tasks
Arrange the tasks shown in Figure into three
workstations. Use a cycle time of 1.0 minute.
Solution

6-55
LO 6.8

55

ASSIGNING TASKS TO WORKSTATIONS

EXAMPLE 1 - Assigning Tasks According to Greatest
Number of Following Tasks
Arrange the tasks shown in Figure into three
workstations. Use a cycle time of 1.0 minute.
Solution
1. Begin with task a; it has the most following tasks.
Assign it to workstation 1.
2. Next, tasks b and c each have two following tasks,
but only task c will fit in the time remaining at
workstation 1, so assign task c to workstation 1.
3. Task b now has the most followers, but it will not fit at
workstation 1, so assign it to workstation 2.
4. There is no time left at workstation 2, so we move on
to workstation 3, assigning task d and then task e to
that workstation. 6-56
LO 6.8

56
 ASSIGNING TASKS TO WORKSTATIONS
Revised Station
Time Assign Time Idle
Workstation Remaining Eligible Task Remaining Time
1 1.0 a, c a 0.9
0.9 b, 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
The initial “time remaining” for each workstation is equal to the cycle
time. For a task to be eligible, tasks preceding it must have been
assigned, and the task’s time must not exceed the station’s remaining
time.
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LO 6.8

57

ASSIGNING TASKS TO WORKSTATIONS

6-58
LO 6.8

58
 MEASURING EFFECTIVENESS
 Balance delay (percentage of idle time)
 Percentage of idle time of a line

 Efficiency

 Percentage of busy time of a line

6-59
LO 6.8

59

MEASURING EFFECTIVENESS
 Alternate Efficiency Formula

6-60
LO 6.8

60
 DRAWING A PRECEDENCE DIAGRAM,
COMPUTING CYCLE TIME AND THE
MINIMUM NUMBER OF WORKSTATIONS NEEDED, AND
ASSIGNING TASKS USING GREATEST NUMBER OF
FOLLOWING TASKS
Using the information contained in the table shown, do
each of the following:
1. Draw a precedence diagram.
2. Assuming an eight-hour workday, compute the
cycle time needed to obtain an output of 400 units
per day.
3. Determine the minimum number of workstations
required.
4. Assign tasks to workstations using this rule: Assign
tasks according to greatest number of following
tasks. In case of a tie, use the tiebreaker of assigning
the task with the longest processing time first.
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LO 6.8

61

EXAMPLE 2: DRAWING A PRECEDENCE DIAGRAM,

COMPUTING CYCLE TIME AND THE
MINIMUM NUMBER OF WORKSTATIONS NEEDED, AND
ASSIGNING TASKS USING GREATEST NUMBER OF
FOLLOWING TASKS
Immediate Task Time
Task Predecessor (in minutes)
a — 0.2
b a 0.2
c — 0.8
d c 0.6
e b 0.3
f d, e 1.0
g f 0.4
h g 0.3
Σt = 3.8
5. Compute the resulting percent idle time and
efficiency of the system. 6-62
LO 6.8

62
 EXAMPLE 2: DRAWING A PRECEDENCE DIAGRAM,
COMPUTING CYCLE TIME AND THE
MINIMUM NUMBER OF WORKSTATIONS NEEDED, AND
ASSIGNING TASKS USING GREATEST NUMBER OF
FOLLOWING TASKS

6-63
LO 6.8

63

DESIGNING PROCESS LAYOUTS

 The main issue in designing process layouts
concerns the relative placement/positioning of the
departments

 Departments must be assigned to locations.

 Layouts can also be influenced by external factors;

 the location of entrances,
 loading docks, elevators, windows, and areas of
reinforced flooring
 noise levels, safety, and the size and locations of
restrooms.
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LO 6.9

64
 DESIGNING PROCESS LAYOUTS
 Measuring effectiveness
 A major objective in designing process layouts is to
minimize transportation cost, distance, or time
 PL has the ability to satisfy a variety of processing
requirements.
 Customers or materials in these systems require
different operations and different sequences of
operations, which causes them to follow different
paths through the system.
 Material-oriented systems necessitate the use of
variable-path material-handling equipment to move
materials from work center to work center.
 In customer-oriented systems, people must travel or
be transported from work center to work center.
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LO 6.9

65

DESIGNING PROCESS LAYOUTS

INFORMATION REQUIREMENTS
1. A list of departments to be arranged and their
dimensions
2. A projection of future work flows between the
pairs of work centers
3. The distance between locations and the cost per
unit of distance to move loads between them
4. The amount of money to be invested in the
layout
5. A list of any special considerations
6. The location of key utilities, access and exit
points, etc.
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LO 6.9

66
 PROCESS LAYOUT PROBLEM
Distance between locations in
meters
Locations
To A B C
A 20 40
From

B 30
C
Interdepartmental work flows (loads
per day)
Departments
To 1 2 3
1 30 170
From

2 100
LO 6.9 3 6-67

67

PROCESS LAYOUT PROBLEM (CONT.)

30

170 100
1 3 2
A B C
Dept. Loads Location Distance Load Distance
(meters) Score
1 to 3 170 A to B 20 170 x 20 =
3,400
1 to 2 30 A to C 40 30 x 40 = 1,200
2 to 3 100 B to C 30 100 x 30 =
3,000
Total 7,600
6-68
LO 6.9

68