MOTIVATION

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The P
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The P
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- t + GERUND

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- t + GERUND

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 PROCESS
SELECTION
and F A C I L I T Y
LAYOUT
INTRODUCTION

PROCESS SELECTION
Deciding on the way production of goods or services will be
organized

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INTRODUCTION

MAJOR IMPLICATIONS OF PROCESS SELECTION

▰ Capacity planning
▰ Layout of facilities
▰ Equipment
▰ Design of work systems

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PROCESS SELECTION AND SYSTEM DESIGN

Facilities and
Forecasting Capacity Equipment
Planning

Product and Layout

Service Design

Process
Selection Work
Technological
Change Design

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PROCESS STRATEGY

▰ Capital intensive – equipment/labor

▰ Process flexibility- adjust to changes
▻ Design
▻ Volume
▻ technology
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 PROCESS SELECTION

▰ How much variety in products or services

will the system need to handle?
▰ What degree of equipment flexibility will
be needed?
▰ What is the expected volume of output?
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PROCESS TYPES

JOB SHOP BATCH REPETITIVE

Small scale Moderate volume High volumes of
standardized goods
or services
i.e. veterinarian i.e. bakeries i.e. automatic
offices carwash

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PROCESS TYPES

CONTINUOUS PROJECT
Very high volumes A nonrepetitive set
of non-discrete of activities directed
goods toward a unique goal
i.e. supplying within a limited time
electricity to homes frame.
i.e. publishing a
book

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PROCESS TYPES

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AUTOMATION

Machinery that has sensing

and control devices that
enables it to operate

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 AUTOMATION

FIXED AUTOMATION PROGRAMMABLE AUTOMATION

▰ uses high-cost, specialized ▰ use of high-cost, general-
equipment for a fixed purpose equipment controlled
sequence of operations by a computer program

FLEXIBLE AUTOMATION
▰ evolved from programmable
automation
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 FACILITIES LAYOUT

Layout: the configuration of

departments, work centers, and
equipment, with particular emphasis
on movement of work (customers or
materials) through the system

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IMPORTANCE OF LAYOUT DECISIONS

Has
Requires Involves significant
substantial impact on
long-term
investments cost and
commitment efficiency of
of money
and effort short-term
operations

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 THE NEED FOR LAYOUT DECISIONS

Changes in the design The introduction of new

Inefficient operations Accidents
of products or services products or services

Changes in
Changes in volume of
environmental Changes in methods
output or mix of Morale problems
or other legal and equipment
products
requirements

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 BASIC LAYOUT TYPES

PRODUCT PROCESS FIXED-POSITION COMBINATION

LAYOUTS LAYOUTS LAYOUT LAYOUTS

uses standardized which the product or

can handle varied project remains
processing operations a combination of the
to achieve smooth,
processing stationary, and workers,
previous layouts
materials, and equipment
rapid, high-volume flow requirements are moved as needed

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 PRODUCT LAYOUT

Raw Finished
Station Station Station Station
materials 1 2 3 4
item

or customer
Material Material Material Material
and/or and/or and/or and/or
labor labor labor labor

Used for Repetitive or Continuous Processing 29

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
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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
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PROCESS LAYOUT

Process Layout
(functional)

Dept. A Dept. C Dept. E

Dept. B Dept. D Dept. F

Used for Intermittent processing 32

Job Shop or Batch
ADVANTAGES OF PROCESS LAYOUT

▰ Can handle a variety of processing

requirements
▰ Not particularly vulnerable to equipment
failures
▰ Equipment used is less costly
▰ Possible to use individual incentive plans

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DISADVANTAGES OF PROCESS LAYOUT

▰ 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
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 CELLULAR LAYOUTS

▰ Cellular Production
Layout in which machines are grouped into a
cell that can process items that have similar
processing requirements
▰ Group Technology
The grouping into part families of items with
similar design or manufacturing characteristics 35
“ LINE BALANCING is the process of
assigning tasks to workstations in
such a way that the workstations
have approximately
equal time requirements.

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“ CYCLE TIME is the maximum
time allowed at each
workstation to complete its
set of tasks on a unit.

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 𝑶𝒑𝒆𝒓𝒂𝒕𝒊𝒏𝒈 𝒕𝒊𝒎𝒆 𝒑𝒆𝒓 𝒅𝒂𝒚
𝑪𝒚𝒄𝒍𝒆 𝑻𝒊𝒎𝒆 =
𝑫𝒆𝒔𝒊𝒓𝒆 𝒐𝒖𝒕𝒑𝒖𝒕 𝒓𝒂𝒕𝒆

Example:

Suppose that the desired output rate is 480 units and the line will operate
for eight hours a day, the necessary cycle time is:

𝟒𝟖𝟎 𝒎𝒊𝒏𝒖𝒕𝒆𝒔 𝒑𝒆𝒓 𝒅𝒂𝒚

𝑶𝒖𝒕𝒑𝒖𝒕 𝑹𝒂𝒕𝒆 =
𝟒𝟖𝟎 𝒖𝒏𝒊𝒕𝒔 𝒑𝒆𝒓 𝒅𝒂𝒚

= 1.00 minute per unit

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“ PRECEDENCE DIAGRAM
Tool used in line balancing to
display elemental tasks and
sequence requirements

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 𝑶𝒑𝒆𝒓𝒂𝒕𝒊𝒏𝒈 𝒕𝒊𝒎𝒆 𝒑𝒆𝒓 𝒅𝒂𝒚
𝑶𝒖𝒕𝒑𝒖𝒕 𝑹𝒂𝒕𝒆 =
𝑪𝒚𝒄𝒍𝒆 𝒕𝒊𝒎𝒆

Example:

Assume that the line will operate for eight hours per day (480 minutes).
With a cycle time of 2.5 minute, output would be:

𝟒𝟖𝟎 𝒎𝒊𝒏𝒖𝒕𝒆𝒔 𝒑𝒆𝒓 𝒅𝒂𝒚

𝑶𝒖𝒕𝒑𝒖𝒕 𝑹𝒂𝒕𝒆 =
𝟐. 𝟓 𝒎𝒊𝒏𝒖𝒕𝒆𝒔 𝒑𝒆𝒓 𝒖𝒏𝒊𝒕

=192 units per day

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 𝜮𝒕
𝑵𝒎𝒊𝒏 =
𝑪𝒚𝒄𝒍𝒆 𝒕𝒊𝒎𝒆
Where:
Nmin =theoretical minimum number of stations
t =Sum of task times

The number of workstations that will be needed is a function of both the desired output rate and our
ability to combine elemental tasks into workstations. We can determine the theoretical minimum number
of stations necessary to provide a specified rate of output as follows:

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