Design in Operations Management Operations Management Session 2

Objectives By the end of this session, student will be able to: Understand the design function Know the stages involved in the design of products and designs Appreciate the importance of the design function in the production of products or services Use simple flow charts, process flow charts, customer processing framework and method study techniques Identify a manufacturing or service operation by it’s production type Understand the procedure of a facilities layout decision Identify the type of layout(s) within a given operation

Topics Product and Service Design Process Design Layout Design

Definition To satisfy needs of the customer Applies to both products and services The design activity is a transformation process Starts with concept and ends in a created product or service Provide products and services which will Satisfy customers’ wants and needs In a cost effective and efficient manner

Product Designers Seek to create things that:- satisfy needs meet expectations are aesthetically pleasing perform well are reliable are easy to manufacture and deliver Operations Managers focus on the design of the transformation process

Elements of Design Quality Speed Dependability Flexibility Cost Why Important Involves a lot of money Decision process happens infrequently Sets limits of operation’s capability

Good Design Meets customer requirements Is simple to make Can be rapidly developed into production Few modifications are required during the development phase

Design As a Transformation Process High Quality Speedily Produced Dependably Delivered Flexibly Low Cost Input Transformed Resources Materials Information Customers The Design Process Output Input Input Transforming Resources Facilities Staff

The Design Process Concept Generation Screening Preliminary Design Evaluation and Improvement Prototyping and Final Design

Product or Service Concept Generation Internal Sources External Sources Customer needs analysis Marketing Surveys Customer suggestions Research departments Suggestions from staff Competitors Concept Generation Concept generation

Concept Screening Marketing Operations Finance Feasibility Is the market big enough? Do we have the capabilities to produce it? Do we have sufficient finance? Acceptability How much market share could we gain? How much reorganisation is involved? How much return on investment? Vulnerability What is the risk of failing in the market? What is the risk of not being able to produce to standard? How much could we lose?

Preliminary Design Reducing complexity: - Standardisation – restrict variety to that which has real value for the customer Commonality – use common elements in a product or service Modularisation – sub-components that can be assembled in different ways

Concurrent Design Integrated product and process design Simultaneous decision making by design teams Design function needs to be more de-centralised Needs careful control - Project Management

Design for Manufacturing If a product is easy to make it will be economical to produce It is important to consider the manufacturability early in the design phase Integrate product design with process planning and design

Characteristics of Service Intangible High customer contact Easily copied Perishable Not able to store or stock De-centralised Each delivery is unique

PERFORMANCE SPECIFICATION DELIVERY SPECIFICATION Service Design PERFORMANCE SPECIFICATION DESIGN SPECIFICATION DELIVERY SPECIFICATION

A Well Designed Service system Customer friendly Flexible Easy to maintain Cost effective Robust Quick to respond Consistent with the company’s strategy

Case Study Design Principles at Braun AG

Facilities Layout Decision Procedure Volume and variety Decision 1 Project process Jobbing process Batch process Mass process Continuous process Process type Strategic performance objectives Decision 2 Fixed position layout Process layout Cell layout Product layout Basic layout type Decision 3 Detailed design of layout The physical position of all transforming resources Flow of transformed resources

What is Layout & Flow? Layout – deciding where to put all the facilities, machines, equipment & staff in an operation Flow – the way in which transformed resources travel through the operation

Why is Layout Design Important? Requires substantial investments of resources Involves long term commitments – not easily changed Impact on the cost & efficiency of short term operations

Fixed Position Layout Transformed resources remain stationary Transforming resources move as necessary Effectiveness is governed by:- Scheduling of transforming resources Reliability of transforming resources Examples: shipbuilding construction projects some surgery Restaurant Highway construction

Process Layout Similar processes (or with similar needs) are located together Utilisation of transforming resources is improved Transformed resources move through the operation according to their needs Different products  different needs  different routes May be very complex Supermarkets Some machine manufacture

Cell Layout Machines or services grouped into cells Cells determined by the process requirements of the family of product/services they transform Could be considered mini product layouts Can simplify a functional/process layout Flexible Duplicates some resources Buffet restaurant Disco

Cell Layout Office Tool Room Work Cell Saws Drills

Product Layout Locates the transforming resources entirely for the convenience of the transformed resources Transformed resources follow a specified route Flow is clear, predictable, easy to control car assembly paper manufacture self-service cafe

Comparison of Main Layouts Fixed Process Cell Product Position Advantages Very high product and mix flexibility Product/customer not moved High variety of tasks for staff High product and Can give good mix flexibility. compromise. Low unit costs for high volume. Relatively robust Fast throughput. in the case of Opportunities for disruptions. Group work can specialization of result in good equipment. Easy to supervise. motivation. Disadvantages Can have low mix Very high unit costs Low utilization. Can be costly to flexibility. rearrange existing Can have very high work in progress layout. Not very robust to Scheduling space disruption. and activities can Can need more be difficult. Complex flow. plant. Work can be very repetitive.

What Makes a Good Layout? Safety Length of flow Clarity of flow Staff comfort Management coordination Accessibility Space utilisation Long term flexibility

General Process Layout Design Method Gather data on work centres & the flow between them Design schematic of work centres & flows Adjust schematic for spatial constraints Draw layout showing actual work centre areas & distances resources/people must travel. Calculate effectiveness measure Attempt to improve effectiveness, through relocating work centres

Detail Design - Fixed Position Design a layout to maximise the effectiveness of the transforming resources Resource location Define site & available locations Define resource centres & their requirements Devise evaluation criteria Match resource centres to available locations Preliminary allocation on site criteria Amend allocation using relative-location criteria

Detailed Design - Process Layout Complex due to large number of options possible Flow charts & relationship charts - balancing Some of the information requirements Area required by each work centre Constraints on the shape of work area allocated Degree & direction of flow between work areas Desirability of work centres proximity to each other or to fixed points in the layout

Detail Design – Cell Layout Cells are a compromise between the flexibility of process layout & the simplicity of product layout Requires decisions as to Extent & nature of cells to adopt Resources to allocate to cells Product Flow Analysis

Process vs Cell Layout Process Layout Work Cell 1 2 2 5 4 3 1 6 LATHE SAW 2 SAW PRESS LATHE 2 SAW 5 4 LATHE HEAT TREAT LATHE GRINDER 3 1 PRESS GRINDER HEAT TREAT 6 PRESS GRINDER

Detail Design – Product Layout Arranging the stages Long-thin or short-fat? Shape of the line Staffing flexibility & balance Rework Handling Passage Teamwork

Long-Thin or Short-Fat? (1) 30 mins 30 mins 30 mins 30 mins 60 mins 60 mins 60 mins 60 mins 120 mins 120 mins 120 mins 120 mins

Long-Thin or Short-Fat? (2) Advantages of Long-Thin Layouts Controlled flow Simple materials handling Lower capital requirements More efficient operation Advantages of Short-Fat Layouts Higher mix flexibility Higher volume flexibility Higher robustness Less monotonous work

Case Study Delhaize De Leeuw supermarket