Alaa Abouali Operation Management

………..

Operation Management

Processing & Layout

Group: 2WF
Presented by:

Alaa Abdelhameed Abouali

Presented to:

Prof. Dr. Essam Khedr

0
Alaa Abouali Operation Management

Introduction
In planning a manufacturing system, many basic system design decisions are required. Included
are selecting a manufacturing technology for each product type (process selection), determining
maximum production levels of each product type (capacity planning), and locating production
resources and routing of products to required resources (facility layout). In this paper, we
examine the importance of integrating these decisions. Advantages of the integrated approach are
illustrated. A mixed-integer mathematical formulation for the integrated model is suggested. The
structure of the model shows how the overall problem can be decomposed as well as the
interactions between the decision problems. A heuristic is proposed for the mathematical
program and its performance is examined on several test problems. The quadratic assignment
problem is shown to be a simple case of the integrated model.

Process selection refers to deciding on the way production of goods or services will be organized.
Processes convert inputs to outputs; they are the core of operations managemen ,it affects the entire
organization and its ability to achieve its mission, and affects the organization’s supply chain.

Basic processing types are:

a)      Job Shop: Usually operates on a relatively small scale. It is used when a low volume of
high-variety goods or services will be needed. High flexibility and skilled workers are
necessary. Example: Veterinarian Office
b)      Batch: Used when a moderate volume of goods or services are needed. The skill level
of workers need not be as high, and equipment need not be as flexible. Examples:
Bakeries, movie theaters, and airlines.
c)      Repetitive: Used when high volumes of standardized goods or services are needed.
Slight flexibility of equipment is needed. Skill of workers is relatively low. This process
type is often referred to as an assembly. Examples: TVs, automobiles, and computers.
d)      Continuous: Used when a high volume of nondiscrete, highly standardized output is
desired. These systems have almost no variety in output and need no equipment
flexibility. Skill of workers can range from high to low depending on the complexity of
the system. Examples: process to make steel, salt, sugar, and flour. 
e)      Project: Used for work that is non routine, with a unique set of objectives to be
accomplished in a time frame. Examples: putting on a play, publishing a
book, and building a bridge.

1
Alaa Abouali Operation Management

Selecting the Right Manufacturing Process Type.

Selecting the right manufacturing process largely depends on three factors. The first
factor to consider is product variety. For example, what is the range of products to be
processed? And, will design changes occur in the near future?  The second factor to
consider is the degree of equipment flexibility needed. For instance, a great variety in
products will require a more flexible system than a single standardized product. The last
factor to take into consideration is the expected volume of output. E.g. a large volume of
standardized goods might require a fully automated production line.

Strategic importance of layout Decisions.

The Objective of layout strategy is to develop an effective and efficient layout that will meet the
Firm’s competitive requirements.

Layout Design consideration.

 Higher utilization of space, equipment and People.
 Improved flow of information, materials or people.
 Improved employee morale and safer working conditions.
 Improved customer/client interaction.
 Flexibility.

Different types of layouts.

1. Office layout: positions workers their Equipment, and space /offices to provide for movement of
information.
2. Retail Layout: Allocate shelf space and responds to customers behavior.
3. Warehouse layout: addresses offs between space and material information.
4. Fixed-position layout: Address the layout requirement of large, bulky projects such as ships,
planes and building (Production).
5. Process-oriented (Job Shop/intermittent production): Deals with low-volume, high- Variety
Production.
6. Work Cell layout: Arranges Machinery and equipment to focus on production of single product
or group of related products.
7. Product -Oriented: Seeks he best personnel and machine utilization in repetitive or continuous
production.

2
Alaa Abouali Operation Management

Good Layout should consider.

 Material Handling Equipment.
 Capacity and space Requirements.
 Environment and aesthetics.
 Flow of information.
 Cost of moving between work area.

Service Spaces
Ambient conditions: background, characteristics such as lightening, sound, smell, and temperature.
Spatial layout and functionality: which involve customer circulation path planning Aisle characteristic,
and product grouping.
Sign, symbols, and artifacts: characteristics of building design that carry social significance.

Product Layouts Advantages:

o high output
o low unit cost due to volume
o labor specialization reduces training costs and time
o high utilization of labor and equipment
o routing and scheduling are part of initial design, therefore not requiring much time
once the operation has begun.
o Accounting, purchasing, and inventory control are fairly routine

Product Layouts Disadvantages:

o intensive division of labor
o poorly skilled workers show little interest in maintaining equipment.
o System is inflexible
o System is highly susceptible to shutdowns 
o Preventative maintenance quick repairs and spare parts inventories are necessary
expenses. 
o Incentive plans cause variations among outputs of workers.

 Processes Layouts Advantages:

o Systems can handle a variety of processing requirements
o Systems are not vulnerable to equipment failures
3
Alaa Abouali Operation Management

o General-purpose equipment is less costly than specialized equipment

o It is possible to use individual incentive plans 

Processes Layouts Disadvantages:

o In-process inventory costs can be high if batch processing is used
o routing and scheduling pose continual challenges
o equipment utilization rates are low
o material handling is slow and inefficient 
o job complexities often reduce the span of supervision and result In higher supervisory costs
o Special attention necessary for each product or customer
o Accounting, inventory control and purchasing are much more involved

Conclusion:

Layouts Make a substantial difference in operations efficiency.

Different types of operations Require Different Approaches to layout design

Refences:

https://www.youtube.com/watch?v=e2rzEcnm6Nw

https://www.youtube.com/watch?v=XWeVn6Tt1Ag&t=533s

R.L. Francis et al.,Facility Layout and Location: An Analytical Approach(1974)