INTRODUCTION TO

PRODUCTION
ENGINEERING

Abdirahim Khalif Ali

M.Eng (Electrical-Electronics and Telcommunications)

Universiti Teknologi Malaysia (UTM)

Email: abdirahim.kh@gmail.com
 Chapter 6
Process Selection and
Facility Layout
 Learning Objectives
• After this lecture, students will be able to
1. Compare the four basic processing types
2. Describe product layouts and their main
advantages and disadvantages
3. Describe process layouts and their main
advantages and disadvantages
4. Develop simple product layouts
5. Develop simple process layouts

3
 Process Selection
• Process selection
– Deciding on the way production of goods or
services will be organized

– Occurs when:
• Planning of new products or services
• Technological changes in product or equipment
• Competitive pressure

4
Process Selection and System
Design

5
 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
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 Process Selection
Process Types
Process choice is demand
• Job shop
driven: – Small scale
– e.g., doctor, tailor

1. Variety • Batch
– Moderate volume
– e.g., bakery
– How much?
• Repetitive/assembly line
2. Equipment flexibility – High volumes of standardized
goods or services
– To what degree?
– e.g., automobiles
3. Volume • Continuous
– Very high volumes of non-
– Expected output?
discrete goods

– e.g., petroleum products

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 Types of Processing
Repetitive/
Job Shop Batch Continuous
Assembly
Semi- Highly
Customized Standardized
standardized standardized
Description goods or goods or
goods or goods or
services services
services services
Flexibility; easy
Able to handle a to add or Low unit cost, Very efficient,
Advantages wide variety change high volume, very high
of work products or efficient volume
services
Slow, high cost Moderate cost Very rigid, lack of
per unit, per unit, Low flexibility, variety, costly
Disadvantages complex moderate high cost of to change,
planning and scheduling downtime very high cost
scheduling complexity of downtime

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 Product-Process Matrix
Flexibility/Variety

Volume

• The diagonal represents the “ideal” match

• Hybrid process are possible (e.g., job-shop & batch)

• Process choice may change as products goes through its life-cycles

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 Process Choice Effects
Activity/
Projects Job Shop Batch Repetitive Continuous
Function
Cost estimation Simple to complex Difficult Somewhat routine Routine Routine

Cost per unit Very high High Moderate Low Low

General
Equipment used Varied General purpose Special purpose Special purpose
purpose
Fixed costs Varied Low Moderate High Very high

Variable costs High High Moderate Low Very low

Labor skills Low to high High Moderate Low Low to high

Promote Promote Promote

Promote Promote capabilities; semi- standardized standardized
Marketing
capabilities capabilities standardized goods and goods and
goods and services services services
Complex, subject
Scheduling Complex Moderately complex Routine Routine
to change

Project: used for work that is none routine with a unique set of objective
to be accomplished in a limited time frame, e.g., launching a new
product, publishing a book 10
 Product and Service Profiling
 Product or service profiling
 Linking key product or service requirements to
process capabilities

 Key dimensions relate to

o Range of products or services that can be processed

o Expected order sizes

o Expected frequency of schedule changes

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 DISCUSSION
 Work with a partner and match the following products or
services with the best process

Products/Services Processes
Ice-cream manufacturer Job-shop
Automatic carwash
Batch
Steel
Repetitive
Books
Continuous
Airlines
Surgery
Movie theater
Sugar
Tips: Think in terms of those key dimensions:
Beer o Range of products or services that can be processed
o 12
Flour Expected order sizes
o Expected frequency of schedule changes
 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/or the processes that
produce or provide them

• Process technology includes methods, procedures, and

equipment used to produce goods and provide services.
– RFID, online banking, 3D printing, …

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 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

– The basic objective of layout design is to facilitate

a smooth flow of work, material, and information
through the system.
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 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

• Combination layouts
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 Repetitive Processing: Product
• Product layout
Layouts Used for
– Layout that uses standardized processing Repetitive
operations to achieve smooth, rapid, high- Processing
volume flow Repetitive or
– How? Continuous

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 Product Layouts
• Although product layouts often follow a straight line, a straight
line is not always the best, and layouts may take an L, O, S, or
U shape. Why?

– U: more compact, increased communication facilitating team work,

minimize the material handling
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 Non-repetitive Processing:
Process Layouts
Used for
• Process layouts Intermittent
processing
– Layouts that can handle varied Job Shop or
Batch
processing requirements

Dept. A Dept. C Dept. E

Dept. B Dept. D Dept. F

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 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 of

• Low material handling cost per output

unit  Fairly inflexible to changes in volume

• High utilization of labor and or product or process design

equipment  Highly susceptible to shutdowns

• Established routing and  Preventive maintenance, capacity for

scheduling quick repair and spare-parts

• Routine accounting, purchasing, inventories are necessary expenses

and inventory control  Individual incentive plans are

impractical
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 Process Layouts
Advantages Disadvantages

• Can handle a variety of • In-process inventories can be high

processing requirements • Routing and scheduling pose

continual challenges
• Not particularly vulnerable
• Equipment utilization rates are low
to equipment failures
• Material handling is slow and less
• General-purpose equipment
efficient
is often less costly and
• Complicates supervision
easier and less costly to
• Special attention necessary for
maintain
each product or customer
• It is possible to use • Accounting, inventory control, and
individual incentive systems purchasing are more complex

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21
 Fixed Position Layouts

• Fixed Position Layout

– Layout in which the product or project
remains stationary, and workers,
materials, and equipment are moved as
needed

– E.g., farming, firefighting, road building,

home building, remodeling and repair,
and drilling for oil 22
 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
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 Line Balancing
 Line balancing
 The process of assigning tasks to workstations in such a way that the

workstations have approximately equal time requirements

 Goal:

 Obtain task grouping that represent approximately equal time requirements

since this 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.

– Input

• Tasks sequencing (precedence diagram)

• Tasks time

• Operating time 24
 Precedence Diagram
• Precedence diagram
– A diagram that shows elemental tasks and their
precedence requirements
Duration Immediate
Task
(min) predecessor
a Select material 0.1 -
b Make petals 1.0 a
Select
c 0.7 -
rhinestones
Glue
d 0.5 b, c
rhinestones
e Package 0.2 d
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 Cycle Time
• Cycle time
– The maximum time allowed at each workstation to
complete its set of tasks on a unit
• Minimum Cycle Time = longest task time = 1.0 min

• Maximum Cycle time = Σt = sum of task time = 2.5 min

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 Output rate of a line

• Cycle time also establishes the

output rate of a line
Operating time per day
Cycle time =
Desired output rate

Operating time per day

Output rate =
Cycle time

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 How Many Workstations are
Needed?
• The required number of workstations is a function
of:
– Desired output rate

– The ability to combine tasks into a workstation

• (theoretical) Minimum number of stations

∑t
Nmin=
Cycle time
where
Nmin = theoretical minimum number of stations
∑ t = sum of task times
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How Many Workstations are
Needed?
• The required number of workstations
is a function of:
Q: Why this is a theoretical value?
– Desired output rate
A: There are often scraps or idle times.
– The ability to combine tasks into a
workstation
Example:
∑ tto finish
4 tasks, each require 6 hours
Nmin=
A station can handle 8 hours
Cycle amount
time of tasks a day.
•You
(theoretical)
will need 3 stations
where Minimum number
to complete all of
tasks, instead of 4.
Nmin = (6+6+6+6) / 8 = 3
stationsNmin = theoretical minimum number of stations
∑ t = sum of task times
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 Designing Product Layouts

 Some Heuristic (Intuitive, may not

result in optimal solution) 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.

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Example 1

31
Solution 1

32
Solution 1

33
Solution 1

34
 Example:
Assembly Line Balancing
• Arrange tasks (shown in the figure) into three
workstations
– Assume the cycle time of each workstation is 1.2 min.
– Assign tasks in order of the most number of followers
– Break tie using greatest positional weight

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• Assign tasks in order of the most number of
followers

Revised
Time Assign Time Station
Workstation Remaining Eligible Task Remaining Idle Time
1 1.2 a, c

2
3

Start with CT
(1.2 min. in this
example)
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• Assign tasks in order of the most number of
followers

Revised
Time Assign Time Station
Workstation Remaining Eligible Task Remaining Idle Time
1 1.2 a, c a 1.1

2
3

37
 Revised
Time Assign Time Station
Workstation Remaining Eligible Task Remaining Idle Time
1 1.2 a, c a 1.1
1.1 c, b

2
3

38
 Revised
Time Assign Time Station
Workstation Remaining Eligible Task Remaining Idle Time
1 1.2 a, c a 1.1
1.1 c, b b 0.1

2
3

Break tie using

greatest
positional weight

39
 Revised
Time Assign Time Station
Workstation Remaining Eligible Task Remaining Idle Time
1 1.2 a, c a 1.1
1.1 c, b b 0.1
0.1 c
2
3

40
 Revised
Time Assign Time Station
Workstation Remaining Eligible Task Remaining Idle Time
1 1.2 a, c a 1.1
1.1 c, b b 0.1
0.1 c - 0.1
2
3

Can’t assign c to this

workstation because the
workstation doesn’t have
enough time (0.1) to
complete c (0.7).
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 Revised
Time Assign Time Station
Workstation Remaining Eligible Task Remaining Idle Time
1 1.2 a, c a 1.1
1.1 c, b b 0.1
0.1 c - 0.1
2 1.2 c c 0.5

Start with CT
(1.2 min. in this
example)

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 Revised
Time Assign Time Station
Workstation Remaining Eligible Task Remaining Idle Time
1 1.2 a, c a 1.1
1.1 c, b b 0.1
0.1 c - 0.1
2 1.2 c c 0.5
0.5 d d 0 0
3

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 Revised
Time Assign Time Station
Workstation Remaining Eligible Task Remaining Idle Time
1 1.2 a, c a 1.1
1.1 c, b b 0.1
0.1 c - 0.1
2 1.2 c c 0.5
0.5 d d 0 0.0
3 1.2 e e 1
1.0

Start with CT
(1.2 min. in this
example)
44
 Revised
Time Assign Time Station
Workstation Remaining Eligible Task Remaining Idle Time
1 1.2 a, c a 1.1
1.1 c, b b 0.1
0.1 c - 0.1
2 1.2 c c 0.5
0.5 d d 0 0.0
3 1.2 e e 1
1.0

Idle time per cycle

=0.1+0.0+1.0=1.1

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 Layout

a&b c&d e
(0.1+1.0) (0.7+0.5) (0.2)

Duration Immediate
Task
(min) predecessor
Select
a 0.1 -
material
b Make petals 1.0 a

Select
c 0.7 -
rhinestones
Glue
d 0.5 b, c
rhinestones
e Package 0.2 d

46
 Measuring Effectiveness
• Balance delay (percentage of idle
time)
– Percentage of idle time of a line
Idle time per cycle
Balance Delay = × 100%
Nactual × Cycle time
where
Nactual = actual number of stations

• Efficiency
– Percentage of busy time of a line
Efficiency = 100% − Balance Delay
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 Example:
Measuring Effectiveness
Revised
Time Assign Time Station
Workstation Remaining Eligible Task Remaining Idle Time
1.2 a, c a
1.1
1 1.1 c, b b
0.1
0.1 c - 0.1
1.2 c c 0.5
2
0.5 d d 0 0.0

3 1.2 e e 1.0
1.0

Percentage of idle time = [(0.1 + 0 + 1.0) ÷ (3 × 1.2)] × 100% = 30.55%

Efficiency = 100% – 30.55% = 69.45%

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Example 2

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Solution 2

50
Solution 2 (cont..)

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 Solution 2 (cont..)

2. Assuming an eight-hour
workday, compute the cycle time
needed to obtain an output of 400
units per day

Operating time 480 minutes

per day per day
Cycle time = = = 1.2 minutes per cycle
Desired output 400 units per
rate day

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 Solution 2 (cont..)
3. Determine the minimum number of workstations required

∑t 3.8 minutes per unit

Nmin= = = 3.17 stations
Cycle time 1.2 minutes per cycle ( round to 4)
where time per station
Nmin = theoretical minimum number of stations
∑ t = sum of task times
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 Solution 2 (cont..)
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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 Solution 2 (cont..)

5. Compute the resulting percent idle time and efficiency of the

system
Idle time per cycle 1.0 min.
Percent idle time = = × 100%
Nactual × Cycle time 4 × 1.2 min.

= 20.83%

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