OPERATIONS

MANAGEMENT
TOPIC VI
Process Selection & Facility
Layout

A. Process Types
B. Operations Strategy
C. Service Layouts
 Process Strategy
• Key aspects of process strategy
– Capital intensive – equipment/labor
– Process flexibility
– Adjust to changes
– Design
– Volume
– technology
 Process Selection
Batch
• Variety
– How much
Job Shop Repetitive
• Flexibility
– What degree
Continuous
• 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
JOB SHOP Examples:
BATCH PROCESSING
Examples:
REPETITIVE PROCESS Examples:
 REPETITIVE
JOB SHOP BATCH / CONTINUOUS
ASSEMBLY

Customize Semi- Highly

Standardize
d standardize standardized
Description d goods or
goods or d goods or goods or
services
services services services

Able to
Low unit
handle Very efficient,
cost, high
Advantages a wide Flexibility very high
volume,
variety of volume
efficient
work

Slow, high
Moderate Very rigid,
cost per
cost per Low lack of variety,
unit,
Disadvantag unit, flexibility, costly to
complex
es moderate high cost of charge, very
planning
scheduling downtime high cost of
and
complexity downtime.
scheduling
 Product – Process Matrix
Figure 6.2

Process Type
Job Shop Appliance repair Not
Emergency feasible
room
Batch Commercial
bakery
Classroom
Lecture
Repetitive Automotive
assembly
Automatic
carwash
Continuous Not Oil refinery
feasible Water purification
(flow)
 Product – Process Matrix
Figure 6.2 (cont’d)

Dimension

Job variety Very High Moderate Low Very low

Process Very High Moderate Low Very low

flexibility

Unit cost Very High Moderate Low Very low

Volume of Very High Low High Very low

output
 Automation
• Automation: Machinery that has
sensing and control devices that
enables it to operate
– Fixed automation
– Programmable automation
Automation
• Computer-aided design and
manufacturing systems (CAD/CAM)
• Numerically controlled (NC) machines
• Robot
• Manufacturing cell
• Flexible manufacturing systems(FMS)
• Computer-integrated manufacturing
(CIM)
 Comparison Of Product And Process
Layouts
PRODUCT LAYOUT PROCESS LAYOUT
1. Description Sequential arrangement Functional grouping
of machines of machines

2. Type of Process Continuous, mass Intermittent, job shop

production, mainly batch production,
assembly mainly fabrication

3. Product Standardized Varied, made to order

made to stock
4. Demand Stable Fluctuating
5. VolumeHigh Low
6. Equipment Special purpose General purpose
7. Workers Limited skills Varied skills
 Comparison Of Product And Process
Layouts
PRODUCT LAYOUT PROCESS LAYOUT
8. Inventory Low in-process, High in-process,
high finished goods low finished goods
9. Storage space Small Large
10. Material Fixed path Variable path
handling (conveyor) (forklift)
11. Aisles Narrow Wide
12. Scheduling Part of balancing Dynamic
13. Layout decision Line balancing Machine location
14. Goal Equalize work at Minimize material
each station handling cost
15. Advantage Efficiency Flexibility
 Fixed Position layout

– Layout in which the product or project

remains stationary, and workers,
materials, and equipments are moved
as needed.

-Used in the Project process type which

is ideal for work which is nonroutine, with
a unique set of objectives within a limited
time frame.
Example: Building a Dam or Bridge
 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
Functional vs. Cellular Layouts
Table 6.3
Dimension Functional Cellular
Number of moves many few
between departments
Travel distances longer shorter

Travel paths variable fixed

Job waiting times greater shorter
Throughput time higher lower
Amount of work in higher lower
process
Supervision difficulty higher lower
Scheduling complexity higher lower
Equipment utilization lower higher
 Other Service Layouts
• Warehouse and storage layouts
• Retail layouts
• Office layouts
 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.

• Major Obstacle: Difficulty of
forming task bundles that have
the same duration
– The difference among the
elemental task lengths can not be
overcome by grouping task.
– A required technological
sequence prohibit the desirable
task combinations
 Cycle Time

Cycle time is the maximum time

allowed at each workstation to
complete its set of tasks on a unit.
Minimum cycle time: longest task
time by assigning each task to a
workstation
Maximum cycle time: sum of the task
time by assigning all tasks to a
workstation
0.1 min 0.7 min 1.0 min 0.5 min 0,2 min

Minimum Cycle Time = 1.0 minute

Maximum Cycle Time = 2.5 minutes
( .1+ 0.7+1.0+0.5+0.2 = 2.5 minutes)

Output rate = Operating Time per day

Cycle Time
• Assume that the line will operate for 8
hours per day with a cycle time of 1.0
minute.
• Using Minimum Cycle Time
480 min per day
480 units per day
1.0 min per unit
• Using Maximum Cycle Time
480 min per day
192 units per day
2.5 min per unit
*Range of output of the line :
192 units to 480 units per day
Cycle Time= Operating time per day
Desired output rate
Suppose : Desired Output Rate= 480 units
480 min per day
1.0 min per unit
480 units per day

Nmn = ∑ t Nmn= Theoretical

Cycle time Minimum number of

stations
∑t = Sum of task
times
• Suppose desired rate of output
(maximum) = 480 per day;
• Required cycle time = 1.0 minute

Nmn =_ 2.5 minutes per unit

1.0 min per unit per station

= 2.5 stations
 Example 1: Precedence Diagram

Precedence diagram: Tool used in line

balancing to display elemental tasks and
sequence requirements

0.1 min. 1.0 min.

a b

c d e
0.7 min. 0.5 min. 0.2 min.
 Example 1 Solution
Revised
Time
Workstatio Remaining Assign Time Station
n Eligible Task Remaining Idle Time

1.0 a, c a
0.9
1 0.9 c c
0.2
0.2 none - 0.2

2 1.0 b b 0.0 0.0

1.0 d d
0.5
3 0.5 e e 0.3
0.3
0.3 - - 0.5
 Percentage of Idle Time
Sum of idle times at stations during a cycle
Percent idle time =
(N)(CT)  Total station ti me
0.2  0  0.3
Percentage idle time =  0.167  16.7%
(3)(1)

Efficiency of the Line

Efficiency=1-percent idle time

=1-0.167
=0.833 or 83.3%
 Line Balancing Rules

Some Heuristic (intuitive) 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.
 Example 2
TASK IMMEDIATE TASK TIME
FOLLOWER (minutes)
A B 0.2

B E 0.2

C D 0.8

D F 0.6

E F 0.3

F G 1.0

G H 0.4

H end 0.3

t= 3.8
1.Draw a Precedence Diagram

0.2 0.2 0.3

a b e

0.8 0.6

c d f g h
1.0 0.4 0.3
2. 8 hour work day ; output= 400 units per
day ; Cycle time = ?
Cycle Time= Operating time per day
Desired output rate

= 480 min per day = 1.2 min per

400 units per day cycle

3. Minimum number of workstations required

Nmn= ∑ t = 3.8 mins per unit

Cycle time 1.2 mins per cycle per day

= 3.17 stations ( round to 4)

4. Assign tasks to workstations. Assign tasks according to
greatest number of following tasks. In case of tie, use the
tiebreaker of assigning the task with the longest
processing time first.
Revise
Time Assign
d Time Idle
Station Remain Eligible Will Fit (task
Remain Time
ing time)
ing

1 1.2 a,c a,c a (0.2) 1.0

1.0 c,b c,b c (0.8) 0.2

0.2 b,d b b( 0.2) 0.0

0.0 e,d none - 0.0

2 1.2 e,d e,d d(0.6) 0.6

0.6 e e e(0.3) 0.3

0.3 f none - 0.3

 Revised
Time Assign
Time Idle
Station Remaini Eligible Will Fit (task
Remaini Time
ng time)
ng

3 1.2 f f f(1.0) 0.2

0.2 g none - 0.2

4 1.2 g g g(0.4) 0.8

0.8 h h h(0.3) 0.5

0.5 - - - 0.5

1.0 min
Station 1 Station 2 Station 3 Station 4

a b e

f g h

c d
5. Percentage of idle time; efficiency of
the system

Percentage Idle Time = 1.0 min 100

4 x1.2 min
= 20.83%

Efficiency = 100% -20.83%

= 79.17%
 Designing Process Layouts

Information Requirements:
1. List of departments
2. Projection of work flows
3. Distance between locations
4. Amount of money to be invested
5. List of special considerations
6. Location of key utilities
 Example 3: Interdepartmental Work Flows
for Assigned Departments

Figure 6.13

30

170 100
1 3 2

A B C
 Example 3
Department No. of loads Location Distance to: Loads x
between distance

1 2:30 A C:40 30x40=1200

3:170 B:20 170x20=

3400

2 3:100

3 B C:30 100x30=3000

7600
Thank You. 