Introduction
Process selection
Deciding on the way production of goods or services will be organized
Major implications
Capacity planning Layout of facilities Equipment Design of work systems
Process Selection and System Design
Forecasting
Capacity Planning
Facilities and Equipment
Product and Service Design
Process Selection
Layout
Technological Change
Work Design
Process Strategy
Key aspects of process strategy
Capital intensive equipment/labor Process flexibility
Technology
Adjust to changes
Design Volume technology
Technology
Technology: The application of scientific discoveries to the development and improvement of products and services and operations processes. Technology innovation: The discovery and development of new or improved products, services, or processes for producing or providing them.
Process Selection
Variety
How much
Flexibility
What degree
Volume
Expected output
Process Types
Job shop
Small scale
Batch
Moderate volume
Repetitive/assembly line
High volumes of standardized goods or services
Continuous
Very high volumes of non-discrete goods
Product and Service Processes
Process Type
Job Shop Batch
Appliance repair Emergency room Commercial baking Classroom Lecture
Ineffective
Repetitive
Automotive assembly Automatic carwash
Continuous (flow)
Ineffective
Steel Production Water purification
Product Process Matrix
Dimension Job variety Process flexibility Unit cost Volume of output Very High Very High Very High Very High Moderate Moderate Moderate Low Low Low Low High Very low Very low Very low Very low
Facilities Layout
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 Combination layouts
Objective of Layout Design
1. Facilitate attainment of product or service quality 2. Use workers and space efficiently 3. Avoid bottlenecks 4. Minimize unnecessary material handling costs 5. Eliminate unnecessary movement of workers or materials 6. Minimize production time or customer service time 7. Design for safety
Importance of Layout Decisions
Requires substantial investments of money and effort Involves long-term commitments Has significant impact on cost and efficiency of short-term operations
The Need for Layout Decisions
Inefficient operations
For Example:
High Cost Bottlenecks
Changes in the design of products or services
Accidents
The introduction of new products or services
Safety hazards
The Need for Layout Design
(Contd)
Changes in environmental or other legal requirements
Changes in volume of output or mix of products Morale problems
Changes in methods and equipment
Basic Layout Types
Product layouts
Process layouts Fixed-Position layout Combination layouts
Basic Layout Types
Product layout
Layout that uses standardized processing operations to achieve smooth, rapid, highvolume flow Layout that can handle varied processing requirements Layout in which the product or project remains stationary, and workers, materials, and equipment are moved as needed
Process layout
Fixed Position layout
Product Layout
Figure 6.4 Raw materials or customer
Material and/or labor
Station 1 Material and/or labor
Station 2
Material and/or labor
Station 3
Material and/or labor
Station 4
Finished item
Used for Repetitive or Continuous Processing
Advantages of Product Layout
High rate of output Low unit cost Labor specialization Low material handling cost High utilization of labor and equipment Established routing and scheduling Routing accounting and purchasing
Disadvantages of Product Layout
Creates dull, repetitive jobs Poorly skilled workers may not maintain equipment or quality of output Fairly inflexible to changes in volume Highly susceptible to shutdowns Needs preventive maintenance Individual incentive plans are impractical
Product Layout
Figure 6.7 (contd)
Product Layout (sequential)
Work Station 1 Work Station 2 Work Station 3
Used for Repetitive Processing Repetitive or Continuous Processes
Product Layout
IN
OUT
A U-Shaped Production Line
IN
4 5
Workers
6
OUT
10
Process Layout
Figure 6.7
Process Layout (functional)
Dept. A Dept. B Dept. C Dept. D Dept. E Dept. F
Used for Intermittent processing Job Shop or Batch Processes
Manufacturing Process Layout
Lathe Department Milling Department Drilling Department
M M
M M
D D
D D
D D
D D
L
L L L
L
L L L
G G
G G
Grinding Department
G G
P P
Painting Department
Receiving and Shipping
A
Assembly
Advantages of Process Layouts
Can handle a variety of processing requirements Not particularly vulnerable to equipment failures Equipment used is less costly Possible to use individual incentive plans
Disadvantages of Process Layouts
In-process inventory costs can be high Challenging routing and scheduling Equipment utilization rates are low Material handling slow and inefficient Complexities often reduce span of supervision Special attention for each product or customer Accounting and purchasing are more
Fixed Position Layouts
Fixed Position Layout: Layout in which the product or project remains stationary, and workers, materials, and equipment are moved as needed. Nature of the product dictates this type of layout
Weight Size Bulk
Large construction projects
Cellular Layouts
Cellular Production
Layout in which machines are grouped into a cell that can process items that have similar processing requirements
The grouping into part families of items with similar design or manufacturing characteristics
Group Technology
Functional vs. Cellular Layouts
Table 6.3 Dimension
Number of moves between departments
Travel distances Travel paths Job waiting times Throughput time Amount of work in process Supervision difficulty Scheduling complexity Equipment utilization
Functional
many
longer variable greater higher higher higher higher lower
Cellular
few
shorter fixed shorter lower lower lower lower higher
Service Layouts
Warehouse and storage layouts Retail layouts Office layouts Service layouts must be aesthetically pleasing as well as functional
