Professional Documents
Culture Documents
Chapter 6
Chapter 6
PROCESS
SELECTION AND
FACILITY LAYOUT
PROCESS SELECTION
• Refers to deciding the way production of goods and services will be
organized.
• Has major implications for capacity planning layout of facilities,
equipment and design of works systems.
• Occurs when a new product or services are being planned.
• However, it occurs periodically due to technological changes in
products or equipment as well as competitive pressures.
Capacity and Process Selection are INTERRELATED and often done in concert
How an organization approaches process
selection is determined by the
organizations’ process strategy – key
aspects include:
• CAPITAL INTENSITY – mix of equip and labor that will be used by the
organization
• PROCESS FLEXIBILITY – degree to which the system can be adjusted to
changes in processing requirements due to such factors as changes in
product / services design, changes in volume processed and changes
in technology.
Process choice is demand
driven. The 2 questions are:
1.How much variety will the process
need to be able to handle?
2.How much volume will the process
need to be able to handle?
Volume and Variety are
INVERSELY RELATED
5 BASIC PROCESS TYPES
JOB SHOP
• Operates on a relatively small scale.
• Uses when a low volume of high variety goods or services will be
needed.
• Make specific products for one customer at a time.
• It specializes in small quantities of tailor – made or custom – built
part.
BATCH
• Moderate volume of goods/services is desired and it can handle
moderate variety in product/service
REPETITIVE
• When higher volumes of more standardized goods/services are
needed.
CONTINUOUS
• A very high volume of nondiscrete, highly standardized output is
derived.
• These systems have almost no variety in output and no need for
equipment flexibility.
VOLUME AND VARIETY INFLUENCE
PROCESS CHOICE
HIGH VARIETY MODERATE VARIETY LOW VARIETY VERY LOW VARIETY
New Facilities
Layout
Redesigning Existing Facilities
Reasons for Redesigning Layouts
• Inefficient operations (e.g. high cost, bottlenecks, and etc.)
• Accidents or safety hazards
• Changes in the design of products or services
• Introduction of new products and services
• Changes in the volume of output or mix of outputs
• Changes in methods or equipment
• Changes in environmental or other legal requirements
• Moral problems (e.g. lack of face-to-face contact)
Objective of Layout
- Facilitate a smooth flow of work, material, and information through
system.
1. To facilitate attainment of product or service quality
2. To use workers and space efficiently
3. To avoid bottlenecks
4. To minimize material handling costs
5. To eliminate unnecessary movements of workers or material
6. To minimize production time or customer service time
7. To design for safety