Process Selection and

Facility Layout
Chapter 6

Learning Objective
• Compare the four basic processing
types
• Describe product layouts and their
main advantages and disadvantages
• Describe process layouts and their
main advantages and disadvantages
• Develop simple product layouts
• Develop simple process layouts

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

Process Selection and System
Design

Forecasting
(demand)

Capacity
Planning

Layout

Product and
Service Design

Technological
Change

Facilities and
Equipment

Process
Selection

Work
Design

Process Selection
Process choice is
demand driven:
1. Variety
– How much?

2. Volume
– Expected output?

3. Standardization
4. Equipment flexibility
– To what degree?

Process Types
• Job shop
– Small scale/high variety
– e.g., doctor, tailor

• Batch
– Moderate volume/moderate variety
– e.g., bakery

• Repetitive/assembly line
– High volumes of standardized
goods or services
– e.g., automobiles

• Continuous
– Very high volumes of non-discrete
goods
– e.g., petroleum products

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

job-shop & batch) • Process choice may change as products goes through its life-cycles 6-7 ..g.Product-Process Matrix Flexibility/Varie ty Volume • The diagonal represents the “ideal” match • Hybrid process are possible (e.

plays.g. semistandardized goods and services Promote standardiz ed goods/serv ices Promote standardiz ed goods/serv ices Scheduling Complex. launching a new products. building a bridge 6-8 . – E. publishing a book. subject to change Complex Moderately complex Routine Routine Project Job Shop Batch – used for work that is nonroutine with a unique set of objective to be accomplished in a limited time frame. building a dam.. movies.Process Choice Effects • Activity/ Function Repetiti ve Continu ous Projects Cost estimation Simple to complex Difficult Somewhat routine Routine Routine Cost per unit Very high High Moderate Low Low Equipment used Varied General purpose General purpose Special purpose Special 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 Marketing Promote capabilities Promote capabilitie s Promote capabilities.

Product and Service Profiling • Product or service profiling – Linking key product or service requirements to process capabilities – Key dimensions relate to • Range of products or services that can be processed • Expected order sizes • Expected frequency of schedule changes .

Technology • Automation – Fixed automation – Programmable automation • Computer-aided manufacturing • Numerically Controlled machines – Flexible automation • Flexible manufacturing systems (FMS): A group of machines designed to handle intermittent processing requirements and produce a variety of similar products • Computer-integrated manufacturing (CIM) – A system for linking a broad range of manufacturing activities through an integrating computer system .

. virtual. and partners.g.com & Heritage Health Prize » HBR : Using the Crowd as an Innovation Partner 3. 2. suppliers. reduce cycle times to durations previously considered impossible – Agile processes – Managers must speed the flow of information so that decisions can be made faster at all levels. mechanical turk. . TopCoder. virtual process teams must have aligned goals and support systems. innocentive. expand the scope of work managed by a company to include customers. cross-organizational teams of specialized entities that are knitted together to serve customers – To keep such a multiparty system from degenerating into chaos. from top to bottom. and – Big data analytics – Crowdsourcing.New Process Trend HBR 12/6/12 Three Examples of New Process Strategy There are three fundamental ways that companies can improve their processes in the coming decade: 1.com. target the increasing amount of knowledge work. – Shift to global. e.

. material.Facilities Layout • Layout – The configuration of departments. work centers. and equipment. and information through the system. 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.

rapid.Basic Layout Types • Product layout – – Layout that uses standardized processing operations to achieve smooth. high-volume flow. The work is divided into a series of standardized tasks. • Process layout – – Layout that can handle varied processing requirements The variety of jobs that are processed requires frequent adjustments to equipment • Fixed position layout – Layout in which the product or project remains stationary. and equipment are moved as needed • Combination layouts . permitting specialization of equipment and division of labor. and workers. materials.

rapid. high-volume flow E.Product Layouts • Product layout – – – Layout that uses standardized processing operations to achieve smooth..g. production line or assembly line How? Raw materials or customer Station 1 Station 2 Station 3 Material Material Material Material and/or labor and/or labor and/or labor and/or labor Station 4 Used for Repetitive Processing Repetitive or Continuous Finished item .

Why? – L: Image source: mdcegypt. or U shape. minimize the material handling . S.Product Layouts • Although product layouts often follow a straight line. and layouts may take an L. increased communication facilitating team work.com – O: – S: – U: more compact. O. a straight line is not always the best.

and inventory control Disadvantages Creates dull. purchasing.Product Layouts Advantages • High rate of output • Low unit cost • Labor specialization • Low material handling cost per unit • High utilization of labor and equipment • Established routing and scheduling • Routine accounting. repetitive jobs Poorly skilled workers may not maintain equipment or quality of output Fairly inflexible to changes in volume or product or process design Highly susceptible to shutdowns Preventive maintenance. capacity for quick repair and spare-parts inventories are necessary expenses Individual incentive plans are impractical .

D Dept. B Dept.Non-repetitive Processing: Process Layouts • Process layouts – Layouts that can handle varied processing requirements – E. etc.. E Dept. Dept.g. grinding. F Used for Intermittent processing Job Shop or Batch . C Dept. machine shop: milling. A Dept. drilling.

Process Layouts Advantages • Can handle a variety of processing requirements • Not particularly vulnerable to equipment failures • General-purpose equipment is often less costly and easier and less costly to maintain • It is possible to use individual incentive systems Disadvantages • In-process inventories can be high • Routing and scheduling pose continual challenges • Equipment utilization rates are low • Material handling is slow and less efficient • Complicates supervision • Special attention necessary for each product or customer • Accounting. and purchasing are more complex . inventory control.

.Fixed Position Layouts • Fixed Position Layout – Layout in which the product or project remains stationary. and drilling for oil . and workers. materials. farming. road building. home building.g. remodeling and repair. and equipment are moved as needed – E. firefighting.

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 .

2. It allows us to use labor and equipment more efficiently. Operating time .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. Tasks time •. – Input •. To avoid fairness issues that arise when one workstation must work harder than another. Tasks sequencing (precedence diagram) •.

7 - d Glue rhinestones 0.1 - b Make petals 1.0 a c Select rhinestones 0.Precedence Diagram • Precedence diagram – A diagram that shows elemental tasks and their precedence requirements Task Duration Immediate (min) predecessor a Select material 0.2 d .5 b. c e Package 0.

Cycle Time • Cycle time – The maximum time allowed at each workstation to complete its set of tasks on a unit (depending on the number of workstations) • Minimum Cycle Time = longest task time = 1.5 min .0 min • Maximum Cycle time = Σt = sum of task time = 2.

Output rate of a line • Cycle time also establishes the output rate of a line Output rate = Operating time per day Cycle time • The cycle time is generally determined by the desired output. Cycle time = Operating time per day Desired output rate .

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 Nmin= ∑t Cycle time where Nmin = theoretical minimum number of stations ∑ t = sum of task times .

instead of 3. Cycle amount time You will need 4 stations to complete all tasks. each require 6 hours Nmin= A station can handle 8 hours of tasks a day. where Nmin = (6+6+6+6) / 8 = 3 Nmin = theoretical minimum number of stations ∑ t = sum of task times . • (theoretical) Minimum number of stations Example: ∑ tto finish 4 tasks.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 Q: Why this is a theoretical value? A: There are often scraps or idle times.

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.Designing Product Layouts Some Heuristic (Intuitive. .

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

2 min.• Assign tasks in order of the most number of followers Time Workstation Remaining 1 2 3 Start with CT (1. c Revised Assign Time Task Remaining Station Idle Time .2 Eligible a. in this example) 1.

• Assign tasks in order of the most number of followers Time Workstation Remaining 1 2 3 1.1 Station Idle Time .2 Eligible Revised Assign Time Task Remaining a. c a 1.

1 Eligible a. c c.1 Station Idle Time . b Revised Assign Time Task Remaining a 1.Time Workstation Remaining 1 2 3 1.2 1.

2 1. c c.1 Station Idle Time . b a b 1.1 0.1 Eligible Revised Assign Time Task Remaining a.Time Workstation Remaining 1 2 3 Break tie using greatest positional weight 1.

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

b c a b - Station Idle Time 1.1 .Time Workstation Remaining 1 1.1) to complete c (0.1 2 3 Can’t assign c to this workstation because the workstation doesn’t have enough time (0.1 0. Eligible Revised Assign Time Task Remaining a.7).2 1.1 0.1 0. c c.

c c.1 a.2 1.2 c c 0. b c a b - 1.5 Time Workstation Remaining 1 2 3 Start with CT (1.1 0.1 .2 min.1 0.1 1.Eligible Revised Assign Time Task Remaining 1. in this example) Station Idle Time 0.

Eligible Revised Assign Time Task Remaining 1. c c.2 0. b c a b - 1.5 0 Time Workstation Remaining 1 2 3 Station Idle Time 0.2 1.1 0 .1 0.1 a.1 1.5 c d c d 0.1 0.

1 1.1 0.Eligible Revised Assign Time Task Remaining 1. in this example) .5 c d c d 0.2 1.1 0.5 0 1.0 1.2 0.0 Start with CT (1. c c.2 min. b c a b - 1.1 a.2 e e 1 Time Workstation Remaining 1 2 3 Station Idle Time 0.1 0.

5 c d c d 0.1 0.5 0 1.2 e e 1 Time Workstation Remaining 1 2 3 Station Idle Time 0.1 1.1+0.0+1.0=1.1 a.2 0.Eligible Revised Assign Time Task Remaining 1.2 1. c c. b c a b - 1.1 0.0 1.1 .1 0.0 Idle time per cycle =0.

7+0.1 - b Make petals 1.5 b.2) Task Duration Immediate (min) predecessor a Select material 0.Layout a&b c&d e (0.5) (0.0 a c Select rhinestones 0.1+1.0) (0.7 - d Glue rhinestones 0. c e Package 0.2 d .

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

1 a.0) ÷ (3 × 1.1 0.0 1.5 c d c d 0.0 Time Workstation Remaining 1 2 3 Station Idle Time 0.1 0. b c a b - 1.1 + 0 + 1.2 0.0 Percentage of idle time = [(0.2 1.1 0.Example: Measuring Effectiveness Eligible Revised Assign Time Task Remaining 1.55% = 69.2 e e 1.55% Efficiency = 100% – 30. c c.5 0 1.2)] × 100% = 30.1 1.45% .

In case of a tie. 5. 3. use the tiebreaker of assigning the task with the longest processing time first. Compute the resulting percent idle time and efficiency of the system . Determine the minimum number of workstations required. Assign tasks to workstations using this rule: Assign tasks according to greatest number of following tasks. 2. compute the cycle time needed to obtain an output of 400 units per day. Assuming an eight-hour workday.Exercise (Textbook page 267) Using the information contained in the table shown. Draw a precedence diagram. 4. do each of the following: 1.

Draw a precedence diagram .Solution 1.

compute the cycle time needed to obtain an output of 400 units per day Cycle time = Operating time per day Desired output rate = 480 minutes per day 400 units per day = 1.2 minutes per cycle .Example: Measuring Effectiveness 2. Assuming an eight-hour workday.

17 stations = Cycle time 1.8 minutes per unit Nmin= = 3.2 minutes per cycle ( round to 4) time per station where Nmin = theoretical minimum number of stations ∑ t = sum of task times .Example: Measuring Effectiveness 3. Determine the minimum number of workstations required ∑t 3.

Assign tasks to workstations using this rule: Assign tasks according to greatest number of following tasks. use the tiebreaker of assigning the task with the longest processing time first. In case of a tie.Example: Measuring Effectiveness 4. .

= 4 × 1.2 min. Compute the resulting percent idle time and efficiency of the system Percent idle time = Idle time per cycle Nactual × Cycle time 1.Example: Measuring Effectiveness 5.0 min. = 20.83% × 100% .

Designing Process Layouts • The main issue in designing process layouts concerns the relative placement of the departments • Measuring effectiveness – key objectives in designing process layouts are to minimize: • transportation cost • distance • time .

access and exit points. A list of any special considerations 6. .and the cost per unit of distance to move loads between them 4. The amount of money to be invested in the layout 5. The location of key utilities. the following information is required: 1.Information Requirements • In designing process layouts. A projection of future work flows between the pairs of work centers 3. etc. A list of work stations (departments) to be arranged and their dimensions 2. The distance between locations .

C in a way that minimizes transportation costs. A B C • Heuristic: – Assign departments with the greatest interdepartmental work flow first to locations that are closet to each other. 2. 3 to locations A.• Goal: Designing Process Layouts Minimize Transportation Costs – Assign departments 1. . B.

1&3 in A&B Work flow Department A Pair Work flow 1-3 170 2-3 100 1-2 30 Highest work flow C .Example: Minimize Transportation Costs Distance Location From\To A A - B B 40 Trip C A-B 20 20 40 B-C 30 - 30 A-C 40 C Closest - From\To 1 2 3 1 - 30 170 - 100 2 3 - 20 B 30 Place dept.

Example: Minimize Transportation Costs 40 • Place departments 1&3 in A&B (2 options) 11 A 33 B 33 C A 11 B C • 2&3 have higher work flow than 1&2 (100>30) • 2&3 should be located closer than 1&2 • C closer to B than to A (30<40) • Solution: 30 1 A 170 3 B 100 2 C A 20 Trip B 30 C Pair Work flow A-B 20 1-3 170 B-C 30 2-3 100 A-C 40 1-2 30 .

Muther’s grid . • Indicates the relative importance of each combination of department pairs. • Input from management or subjective analysis.Closeness Ratings (Relationship Diagramming) • Allows the considerations of multiple qualitative criteria.

Closeness Ratings Production Offices Stockroom Shipping and receiving Locker room Toolroom O U A U O A O U O I X O AA EE II OO UU XX E U Absolutely Absolutelynecessary necessary Very Veryimportant important Important Important Ordinary Ordinaryimportance importance Unimportant Unimportant Undesirable Undesirable A .

Dept 3.Closeness Ratings : Example Dept. Dept 4. Dept. 1 Dept 2. A E X O A A U A A X I X U A O Assign department using the heuristic: Assign critical departments first (they are most important) . 5 Dept 6.

5 Dept 6. 1 A X 12 1-4 Dept 2. A A E X U U X O I A A O X A A . Dept. 13 3-6 Dept 3.Closeness Ratings : Example 1. List critical departments (either A or X): Dept. 3-4 26 35 46 56 Dept 4.

A E X U U X O I A A O X A A 4 2 1 6 5 3 .Closeness Ratings : Example 2. Dept. Dept 3. Take the remaining A links in 5order and add them to this cluster 6 where possible (rearranging as necessary) Form separate clusters for departments that do not link with the main cluster. Form a cluster of A links (beginning with the department that appears most frequently) 4 2 6 5 A 12 13 26 35 46 3. Dept 4. 5 Dept 6. Dept. 1 A Dept 2.

Graphically portray the X links 1 3 X 1-4 Dept. (in this case. Dept 4. Adjust A cluster as necessary. the A cluster also satisfies the X cluster). Dept.Closeness Ratings : Example 4. 1 3-6 Dept 2. 5 Dept 6. A 4 2 1 6 5 3 . E X U U X O I A A O X A A 5. 3-4 4 6 A Dept 3.

1 6 1 5 1 3 3 4 6 6. Check for possible improvements Dept 2. Dept 4. 2x3) may require some trial and error.g.Closeness Ratings : Example 4 2 Dept. Dept 3. A A E X U U X O I A A O X A A . Departments are considered close not only when they touch side to side but also when they touch corner to corner. Dept. Fit cluster into arrangement (e. 1 2 6 3 5 4 7.. 5 Dept 6.