Process Layout

Chapter 8
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How Process Layout fits the Operations Management Philosophy

Operations As a Competitive Weapon Operations Strategy Project Management

Process Strategy Process Analysis Process Performance and Quality Constraint Management Process Layout Lean Systems

Supply Chain Strategy Location Inventory Management Forecasting Sales and Operations Planning Resource Planning Scheduling

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Layout Planning
 Layout planning is planning that involves decisions about the physical arrangement of economic activity centers needed by a facility’s various processes.
 Layout plans translate the broader decisions about the competitive priorities, process strategy, quality, and capacity of its processes into actual physical arrangements.

 Economic activity center: Anything that consumes space -- a person or a group of people, a customer reception area, a teller window, a machine, a workstation, a department, an aisle, or a storage room.
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four questions must be addressed.Layout Planning Questions Before a manager can make decisions regarding physical arrangement. How should each center’s space be configured? 4. What centers should the layout include? 2. 1. How much space and capacity does each center need? 3. Where should each center be located? © 2007 Pearson Education .

Improving employee morale. 5. Increasing the efficient utilization of labor and equipment. Improving communication. Increasing customer satisfaction and sales at a retail store. Facilitating the flow of materials and information.Strategic Issues Impact and Implications  Layout choices can help communicate an organization’s product plans and competitive priorities. 3. Reducing hazards to workers. © 2007 Pearson Education . 2. 4.  Altering a layout can affect an organization and how well it meets its competitive priorities in the following ways: 1. 6.

 Fixed-position layout: An arrangement in which service or manufacturing site is fixed in place. employees along with their equipment. © 2007 Pearson Education . come to the site to do their work.Types of Layouts  Flexible-flow (process) layout: A layout that organizes resources (employees) and equipment by function rather than by service or product.  Line-flow (product) layout: A layout in which workstations or departments are arranged in a linear path.  Hybrid layout: An arrangement in which some portions of the facility have a flexible-flow and others have a line-flow layout.

Grinding Forging Lathes Painting Welding Drills Office © 2007 Pearson Education Milling machines Foundry .A Flexible Flow Layout A job shop has a flexible-flow layout.

Station 1 Station 2 Station 3 Station 4 © 2007 Pearson Education .Line Flow Layout A production line has a line-flow layout.

Product 4. mass production. Type of Process Continuous. mainly fabrication Varied. 7. mainly assembly Standardized made to stock Stable High Special purpose Limited skills Intermittent. job shop batch production. Demand Volume Equipment Workers © 2007 Pearson Education © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Ch 7 . 5. 6.Comparison Of Product And Process Layouts 1. made to order Fluctuating Low General purpose Varied skills 3. Description PRODUCT LAYOUT Sequential arrangement of machines PROCESS LAYOUT Functional grouping of machines 2.9 .

Material handling 11. Goal 15. low finished goods Large Variable path (forklift) Wide Dynamic Machine location Minimize material handling cost Flexibility © 2007 Pearson Education © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Ch 7 .Comparison Of Product And Process Layouts 8. Layout decision 14. Inventory 9. Aisles 12. Advantage PRODUCT LAYOUT Low in-process.10 . high finished goods Small Fixed path (conveyor) Narrow Part of balancing Line balancing Equalize work at each station Efficiency PROCESS LAYOUT High in-process. Storage space 10. Scheduling 13.

Performance Criteria          Customer satisfaction Level of capital investment Requirements for materials handling Ease of stockpicking Work environment and “atmosphere” Ease of equipment maintenance Employee and internal customer attitudes Amount of flexibility needed Customer convenience and levels of sales © 2007 Pearson Education .

multiple-machines (OWMM) cell is a one-person cell in which a worker operates several different machines simultaneously to achieve a line flow.  A One-worker. © 2007 Pearson Education .Creating Hybrid Layouts  Layout flexibility is the property of a facility to remain desirable after significant changes occur or to be easily and inexpensively adopted in response to changes.  A Cell is two or more dissimilar workstations located close together through which a limited number of parts or models are processed with line flows.

One Worker. Multiple Machines Machine 2 Machine 1 Machine 3 Materials in Finished goods out Machine 4 © 2007 Pearson Education Machine 5 .

this technique creates cells not limited to just one worker and has a unique way of selecting work to be done by the cell.Group Technology (GT)  Group Technology (GT) is an option for achieving line-flow layouts with low-volume processes. © 2007 Pearson Education .  The GT method groups parts or products with similar characteristics into families and sets aside groups of machines for their production.

Before Group Technology Jumbled flows in a job shop without GT cells Lathing Milling Drilling L L M M D D D D L L M M Grinding L L M M G G L L Assembly A A A G G Receiving and shipping © 2007 Pearson Education A G G .

Applied Group Technology Line flows in a job shop with three GT cells L L Cell 1 M Cell 2 M D G A Assembly area A Receiving L Cell 3 G G L M D Shipping © 2007 Pearson Education .

© 2007 Pearson Education .Classification and Coding System Source: Organization for Industrial Research Inc.

Original Process Layout Assembly 4 6 7 9 5 2 10 8 12 1 3 11 A © 2007 Pearson Education © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e B C Raw materials Ch 7 .34 .

37 .Cellular Layout Solution Assembly 8 10 9 12 11 4 Cell1 Cell 2 6 Cell 3 7 2 Raw materials © 2007 Pearson Education © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e 1 A 3 C B 5 Ch 7 .

Storage area 3 Dock 5 5 6 Aisle 4 2 7 1 5 5 4 4 2 7 Storage area © 2007 Pearson Education . The numbers indicate storage areas for same or similar items.Warehouse Layouts Out-and-back Pattern  The most basic warehouse layout is the out-and-back pattern.

Warehouse Layouts Zone System Zones Zones Control station Shipping doors Click to add title Tractor trailer Tractor trailer Feeder lines © 2007 Pearson Education Feeder lines Overflow .

 Four common office layouts: 1. Office landscaping (cubicles/movable partitions) 3. Activity settings 4.Office Layouts  Most formal procedures for designing office layouts try to maximize the proximity of workers whose jobs require frequent interaction. Electronic cottages (Telecommuting) © 2007 Pearson Education .  Privacy is another key factor in office design. Traditional layouts 2.

 Work elements are the smallest units of work that can be performed independently. work elements are denoted by circles.  Precedence diagram allows one to visualize immediate predecessors better. © 2007 Pearson Education .Designing Line-Flow Layouts  Line balancing is the assignment of work to stations in a line so as to achieve the desired output rate with the smallest number of workstations. with the time required to perform the work shown below each circle.  Immediate predecessors are work elements that must be done before the next element can begin.

construct a precedence diagram for the Big Broadcaster. Using the following information. a manufacturer of lawn & garden equipment.3 Green Grass. is designing an assembly line to produce a new fertilizer spreader. © 2007 Pearson Education .Line Balancing Example 8. the Big Broadcaster. Inc..

G 244 Line Balancing Green Grass. Inc. D B 30 H 20 E 40 6 A 40 C 50 F 25 I G 18 © 2007 Pearson Education 15 . E Mount nameplate 18 F.Work Element A B C D E F G H I Total Time Immediate Description (sec) Predecessor(s) Bolt leg frame to hopper 40 None Insert impeller shaft 30 A Attach axle 50 A Attach agitator 40 B Attach drive wheel 6 B Attach free wheel 25 C Mount lower post 15 C Attach controls 20 D.

r must be matched to the staffing or production plan. c is the maximum time allowed for work on a unit at each station: 1 c= r © 2007 Pearson Education .  Cycle time.Desired Output and Cycle Time  Desired output rate.

© 2007 Pearson Education . Efficiency (%) is the ratio of productive time to total time.Theoretical Minimum Theoretical minimum (TM ) is a benchmark or goal for the smallest number of stations possible. It must be rounded up Idle time is the total unproductive time for all stations in the assembly of each unit. where total time required to assemble each unit (the sum of all work-element standard times) is divided by the cycle time. Balance Delay is the amount by which efficiency falls short of 100%.

Output Rate and Cycle Time Example 8. Inc.  Desired output rate. r = 2400/week Plant operates 40 hours/week r = 2400/40 = 60 units/hour  Cycle time.4 Green Grass. c = 1/60 = 1 minute/unit = 60 seconds/unit 1 r © 2007 Pearson Education .

ratio of productive time to total time.4 continued Theoretical minimum (TM ) .067 It must be rounded up to 5 stations Cycle time: c = 1/60 = 1 minute/unit = 60 seconds/unit Efficiency (%) . Efficiency = [244/5(60)]100 = 81.sum of all work-element standard times divided by the cycle time. TM = 244 seconds/60 seconds = 4.amount by which efficiency falls short of 100%.Calculations for Example 8. (100 − 81.3% Balance Delay .3) = 18.7% © 2007 Pearson Education .

Inc. and the cycle time of 60 seconds is not violated. Green Grass.The goal is to cluster the work elements into 5 workstations so that the number of work-stations is minimized. although commercial software packages are also available. Line Balancing Solution D B H 20 E 40 6 S5 S1 A 40 c = 60 seconds/unit TM = 5 stations Efficiency = 81.3% © 2007 Pearson Education 30 S3 S2 C 50 F 25 S4 I G 15 18 . Here we use the trial-and-error method to find a solution.

Cycle times depend on the desired output rate. 4. © 2007 Pearson Education . Pacing: The movement of product from one station to the next as soon as the cycle time has elapsed. Thus exploring a range of cycle times makes sense. managers must also consider four other options: 1. 2. Number of models produced: A mixed-model line produces several items belonging to the same family. Behavioral factors of workers. 3. and efficiency varies considerably with the cycle time selected.Other Considerations In addition to balancing a line.

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