Operations Management 5

Process Selection and Facility Layout
(Stevenson Ch 6)

Learning Objectives




6-2

Explain the strategic importance of process
selection.
Explain the influence that process selection
has on an organization.
Describe the basic processing types.
Discuss automated approaches to
processing.
Explain the need for management of
technology.

Learning Objectives




6-3

List some reasons for redesign of layouts.
Describe the basic layout types.
List the main advantages and disadvantages
of product layouts and process layouts.
Solve simple line-balancing problems.
Develop simple process layouts.

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

6-4

Process Selection and System Design

Forecasting

Capacity
Planning

Product and
Service Design

Technological
Change
6-5

Facilities and
Equipment

Layout
Process
Selection

Work
Design

Process Strategy • Key aspects of process strategy 6-6 – 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. services. 6-7 . • Technology innovation: The discovery and development of new or improved products. or processes for producing or providing them.

Kinds of Technology • Operations management is primarily concerned with three kinds of technology: – Product and service technology – Process technology – Information technology • All three have a major impact on: – Costs – Productivity – Competitiveness 6-8 .

Technology Competitive Advantage • Innovations in – Products and services • Cell phones • Wireless computing – Processing technology • Increasing productivity • Increasing quality • Lowering costs 6-9 .

safety. space. maintenance Consultants and/or skilled employees Integration cost. cash flow.Technology Acquisition • Technology can have benefits but … • Technology risks include: – What technology will and will not do – Technical issues – Economic issues • • • • 6-10 Initial costs. time resources Training. job loss .

Process Selection • Variety Batch – How much • Flexibility – What degree • Volume Job Shop Repetitive – Expected output Continuous 6-11 .

general purpose machines.Process Types • Job shop – Small scale. low volume and high variety – Flexible. high skill • Batch – Moderate volume • Repetitive/assembly line – High volumes of standardized goods or services • Continuous – Very high volumes of non-discrete goods 6-12 .

Product and Service Processes Low Volume High Process Type Job Shop Appliance repair. Emergency room Ineffective Commercial baking Batch Classroom Lecture Automotive assembly Repetitive Automatic carwash Continuous (flow) Ineffective Steel Production Water purification 6-13 .

Product – Process Matrix Dimension Job Shop Batch Repetitive Continuous Job variety Very high Moderate Low Very low Process flexibility Very high Moderate Low Very low Unit cost Very High Moderate Low Very low Volume of output Very low Low High Very high 6-14 .

Product and Process Profiling • Process selection can involve substantial investment in – Equipment – Layout of facilities • Product profiling: Linking key product or service requirements to process capabilities • Key dimensions – – – – – 6-15 Range of products or services Expected order sizes Pricing strategies Expected schedule changes Order winning requirements .

Automation • Automation: Machinery that has sensing and control devices that enables it to operate – Fixed automation – Programmable automation 6-16 .

Automation • Computer-aided design and manufacturing systems (CAD/CAM) • Numerically controlled (NC) machines • Robot • Manufacturing cell • Flexible manufacturing systems(FMS) • Computer-integrated manufacturing (CIM) 6-17 .

with particular emphasis on movement of work (customers or materials) through the system • Product layouts • Process layouts • Fixed-Position layout • Combination layouts 6-18 .Facilities Layout • Layout: the configuration of departments. work centers. and equipment.

Minimize production time or customer service time 7. Use workers and space efficiently 3. Minimize unnecessary material handling costs 5. Facilitate attainment of product or service quality 2. Eliminate unnecessary movement of workers or materials 6. Design for safety 6-19 .Objective of Layout Design 1. Avoid bottlenecks 4.

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 6-20 .

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 6-21 .

The Need for Layout Design (Cont’d) Changes in environmental or other legal requirements Changes in volume of output or mix of products Morale problems Changes in methods and equipment 6-22 .

Basic Layout Types • Product layouts • Process layouts • Fixed-Position layout • Combination layouts 6-23 .

and workers.Basic Layout Types • Product layout – Layout that uses standardized processing operations to achieve smooth. rapid. and equipment are moved as needed – airplane. high-volume flow – for repetitive processing • Process layout – Layout that can handle varied processing requirements – for non repetitive processing • Fixed Position layout – 6-24 Layout in which the product or project remains stationary. materials. ship .

Product Layout Product Layout (sequential) Raw materials or customer Material and/or labor Station 1 Material and/or labor Station 2 Material and/or labor Station 3 Station 4 Material and/or labor Used for Repetitive or Continuous Processing 6-25 Finished item .

Advantages of Product Layout • • • • • • • 6-26 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 6-27 .

A U-Shaped Production Line In 1 2 3 4 5 Workers 6 Out 6-28 10 9 8 7 .

B Dept. F Used for Intermittent processing Job Shop or Batch Processes 6-29 . C Dept. E Dept. D Dept. A Dept.Process Layout Process Layout (functional) Dept.

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 6-30 .

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 involved 6-31 .

• Nature of the product dictates this type of layout – Weight – Size – Bulk • Large construction projects 6-32 .Fixed Position Layouts • Fixed Position Layout: Layout in which the product or project remains stationary. and equipment are moved as needed. materials. and workers.

Cellular Layouts • Cellular Production – Layout in which machines are grouped into a cell that can process items that have similar processing requirements • Group Technology – • 6-33 The grouping into part families of items with similar design or manufacturing characteristics Each cell becomes a miniature product layout .

Functional vs. Cellular Layouts Dimension Functional Cellular Number of moves between departments many few Travel distances longer shorter Travel paths variable fixed Job waiting times greater shorter Throughput time higher lower Amount of work in process higher lower Supervision difficulty higher lower Scheduling complexity higher lower Equipment utilization lower higher 6-34 .

Service Layouts • • • • 6-35 Warehouse and storage layouts Retail layouts Office layouts Service layouts must be aesthetically pleasing as well as functional .

6-36 .Design Product Layouts: Line Balancing Line Balancing is the process of assigning tasks to workstations in such a way that the workstations have approximately equal time requirements.

Cycle Time Cycle time is the maximum time allowed at each workstation to complete its set of tasks on a unit. 6-37 .

Determine Maximum Output OT Output rate = CT OT  operating time per day D = Desired output rate 6-38 OT CT = cycle time = D .

Determine the Minimum Number of Workstations Required N= (  t) CT  t = sum of 6-39 task time .

5 min.2 min.1 min. e 0.Precedence Diagram Precedence diagram: Tool used in line balancing to display elemental tasks and sequence requirements 0.7 min. .0 min. a b c 0. 1. 6-40 A Simple Precedence Diagram d 0.

– – 6-41 Use a cycle time of 1.0 minute Assign tasks in order of the most number of followers .Example 1: Assembly Line Balancing • Arrange tasks shown in earlier slide into three workstations.

3 Time Workstation Remaining 1 Station Idle Time 0.2 2 1.5 6-42 .5 0.9 0. c c none a c - 0.3 d e - d e - 0.0 0.0 b b 0.0 3 1.0 0.Example 1 Solution Eligible Revised Assign Time Task Remaining 1.2 a.0 0.3 0.5 0.9 0.2 0.

Calculate Percent Idle Time Idle time per cycle Percent idle time = (N)(CT) Efficiency = 1 – Percent idle time 6-43 .

Line Balancing Rules Some Heuristic (intuitive) Rules: • Assign tasks in order of most following tasks. – 6-44 Positional weight is the sum of each task’s time and the times of all following tasks. . –Count the number of tasks that follow • Assign tasks in order of greatest positional weight.

3 .6 c d f g h 1.3 a b e 0.Example 2 6-45 0.2 0.2 0.0 0.4 0.8 0.

Solution to Example 2 Station 1 a b Station 2 Station 3 e f c 6-46 Station 4 d g h .

30/hr. 30/hr. 2 min. 1 min. 30/hr.Bottleneck Workstation 1 min. Bottleneck 6-47 30/hr. . 1 min.

1 min. .Parallel Workstations 30/hr. 2 min. 30/hr. 1 min. 1 min. 60/hr. 30/hr. 2 min. Parallel Workstations 6-48 30/hr. 60/hr.

List of departments 2.Designing Process Layouts Information Requirements: 1. Distance between locations 4. Location of key utilities 6-49 . List of special considerations 6. Amount of money to be invested 5. Projection of work flows 3.

Example 3: Interdepartmental Work Flows for Assigned Departments 30 1 A 6-50 170 B 3 100 C 2 .

work travels to dedicated process centers 6-51 .Process Layout Milling Assembly & Test Grinding Drilling Plating Process Layout .

Functional Layout 222 444 Mill 111 333 111 333 6-52 Lathes 222 111 444 222 Drill Grind 3333 1111 2222 Heat treat Assembly 111 Gear cutting 111 444 .

Cellular Manufacturing Layout Mill Heat treat Gear cut -1111 222222222 Mill Drill Heat treat Grind .4444 Assembly -1111 Lathe .3333 Drill Gear cut 44444444444444 6-53 Drill Mill .2222 3333333333 Lathe Mill Heat treat Grind .

Master your semester with Scribd & The New York Times

Special offer for students: Only $4.99/month.

Master your semester with Scribd & The New York Times

Cancel anytime.