Introduction to Operations Management Process Selection and Facility Layout (Ch.6) Hansoo Kim (金翰秀) Dept. of Management Information Systems, YUST

What you should do! Review Capacity Planning Read Chapter 6 and 6s

X X X X OM Overview Class Overview (Ch. 0) Operations, Productivity, and Strategy (Ch. 1, 2) X Project Management (Ch. 17) Strategic Capacity Planning (Ch. 5, 5S) Process Selection/ Facility Layout; LP (Ch. 6, 6S) X X Mgmt of Quality/ Six Sigma Quality (Ch. 9, 10) Queueing/ Simulation (Ch. 18) Supply Chain Management (Ch 11) Location Planning and Analysis (Ch. 8) JIT & Lean Mfg System (Ch. 15) Demand Mgmt Forecasting (Ch 3) Aggregated Planning (Ch. 13) Inventory Management (Ch. 12) MRP & ERP (Ch 14) Term Project

Key Terms 영어 중국어 Assembly line Line balancing Automation 组装线 Line balancing 生产线平衡 Automation 自动化 Numerically controlled(N/C)machines 数控机床 Balance delay 生产线闲置率 Precedence diagram 先后顺序图 Cellular production 单元制造 Process layout 工艺原则布置 Computer-aided manufacturing 计算机辅助制造 Production line 生产线 Computer-integrated manufacturing 计算机集成制造 Product layout 产品原则布置 Cycle time 节拍 Product or service profiling 产品或服务工艺 Fixed-position layout 定位布置 Project 项目 Flexible manufacturing system 柔性制造系统 Robot 机器人 Group technology 成组技术 Technological innovation 技术创新 Intermittent processing 间歇加工 technology 技术 4

Learning Objectives Explain the strategic importance of process selection. Explain the influence that process selection has on an organization. Describe the basic processing types. Discuss automated approaches to processing. Explain the need for management of technology. List some reasons for redesign of layouts. Describe the basic layout types. List the main advantages and disadvantages of product layouts and process layouts. Solve simple line-balancing problems. Develop simple process layouts.

Capacity and Process Selection Process Strategy (Key Aspects) Capital Intensity Process Flexibility

Process Selection Strategy (생산전략, 공정설계 전략) Deciding on the way production of goods or services will be organized “제품과 서비스를 어떤 방식으로 생성해 낼 것인가?”에 대한 방안 Process = Transformation 원자재에서 제품(혹 서비스)로 변화되는 과정 Objective(목적) Meet or exceed customer requirements (요구사항) Meet cost & managerial goals 최소의 비용으로 고객의 요구사항을 극대화 한다! Long-term effect (장기적인 영향력이 있다) Product & Volume Flexibility Costs & Quality

생각해 볼 문제들… 어떤 종류의 생산(or 서비스)방식이 있을까? (Which types of process strategy can exist?) 생산(or 서비스)방식을 결정하는데 고려해야 하는 요소들은 어떤 것이 있을까? Which factors should be considered to select the process strategy? 예제 홍콩반점 건강검진센타 빙천맥주공장 자동차 조립공장

S-A-S-B-S-A-S-B-S-A-S-B-S-A-S-B Machining Process Process Time (공정시간) = Setup Time (준비시간) + Machining Time (가공시간) How is the utilization of the Machine? Machine S-A-A-A-A-S-B-B-B-B S-A-S-B-S-A-S-B-S-A-S-B-S-A-S-B S = Setup Time 장단점?

Process Selection Variety Flexibility Volume Batch Job Shop Repetitive How much Flexibility What degree Volume Expected output Batch Job Shop Repetitive Continuous

Types of Processing

Product and Service Processes Figure 6.2

Volume and Variety of Products Low Volume High Variety Process (Intermittent) Repetitive Process (Modular) High Volume Low Variety (Continuous) One or very few units per lot Projects Very small runs, high variety Job Shops Modest runs, modest Disconnected Long runs, modest variations Connected Very long runs, changes in attributes Continuous Equipment utilization 5%-25% 20%-75% 70%-80% Poor Strategy (High variable costs) Mass Customization This slide resembles a slide used earlier, but adds more detail. You may wish to use this slide in review or summary, or, simply skip it and move on.

Areas of Technology Machine technology Automatic identification systems (AIS) Bar-code, RFID Process control Vision system Robot Automated storage and retrieval systems (ASRS) Flexible manufacturing systems (FMS) Computer-integrated manufacturing (CIM)

FMS에 의한 생산라인의 개념도 1 6 4 5 7 2 3 8

FMS 예

FMS 예 머시닝센터 준비작업장 중앙관제실 자동창고 공구저장소 차팔렛트 반송 컨베이어라인 공구무인반송차 세정실 작업물 무인운반차 준비작업장

FMS 예

Types of Robot Cylindrical Polar Cartesian Joint Arm

FMS Machine

ASRS (자동창고)

AGV (무인운반차)

AGVS (무인운반차 시스템) http://www.steinbockus.com/AGVs/animation.gif

Computer Integrated Manufacturing (CIM)

Facility Layout Design

Objectives of Facility Layout Develop an economical layout which will meet the requirements of: product design and volume (product strategy) process equipment and capacity (process strategy) quality of work life (human resource strategy) building and site constraints (location strategy) 사내물류비용의 최소화 공간의 효율적 활용 노동력의 효율적 활용 불필요한 움직임을 최소화함 병목현상을 완화 제조 및 서비스 시간 단축

What is Facility Layout Location or arrangement of everything within & around buildings Objectives are to maximize Customer satisfaction Utilization of space, equipment, & people Efficient flow of information, material, & people Employee morale & safety In addition to discussing what facility layout is, you might also raise some of the issues that may make it problematic.

Types of Layouts Product-oriented layout Process-oriented layout Fixed-position layout Office layout Retail layout Warehouse layout Give a brief description of each. You might also ask students for an example of each.

Product Oriented Layout Used for Repetitive or Continuous Processing Product Oriented Layout Layout that uses standardized processing operations to achieve smooth, rapid, high-volume flow

Product Oriented Layout 장단점 장점 Lower variable cost per unit (낮은 변동비) Lower but more specialized labor skills Easier production planning and control (생산계획 및 통제의 용이성) Higher equipment utilization (70% to 90%) (설비의 높은 가동율) 단점 Lower product flexibility (제품 종류가 한정) More specialized equipment (전용설비) Usually higher capital investment (높은 초기투자비용)

Process Oriented Layout (job shop) 설비 배치 Milling Department Lathe Department Drilling Department M M D D D D L M M D D D D G G G P G G G P Grinding Department Painting Department A A A Receiving and Shipping Assembly

Process Oriented Layout Facilities(설비) are organized by process Similar processes are together Example: All drill presses are together Low volume, high variety products (다품종 소량) ‘Jumbled’ flow (뒤범벅 흐름)

Process Oriented Layout 장단점 장점 Greater product flexibility (다양한 제품을 생산) More general purpose equipment (범용성이 높은 설비 사용) Lower initial capital investment (낮은 초기 설비 투자) 단점 High variable costs (높은 변동비) More highly trained personnel (다기능공) More difficult production planning & control (생산계획 및 통제의 어려움) Low equipment utilization (5% to 25%) (낮은 설비 효율성) Select one of the examples you have presented of process-focused strategy, and ask students to identify the sources of advantage and disadvantage.

Emergency Room Layout (Process-Oriented Layout) Surgery Radiology E.R. beds Pharmacy Billing/exit E.R.Triage room E.R. Admissions Patient B - erratic pacemaker Patient A - broken leg Hallway Students may be asked to evaluate alternative layouts for an emergency room. Perhaps a visit to view a local emergency room might be helpful.

Steps in Developing a Process-Oriented Layout Construct a “from-to matrix” Determine space requirements for each department Develop an initial schematic diagram Determine the cost of this layout By trial-and-error (or more sophisticated means), try to improve the initial layout Prepare a detailed plan that evaluates factors in addition to transportation cost The criterion for this methodology is basically a number-of-parts (or people)-times-distance measure. Is this always useful or appropriate?

Cost of Process-Oriented Layout Now that cost can be determined, ask students (1) whether this is an appropriate criteria, and (2) how they would go about minimizing cost.

Interdepartmental Flow of Parts 1 2 3 4 5 6 50 100 20 30 10 Note that the matrix above basically measures the flow between sites, direction is immaterial. We can also develop entries for the remainder of the matrix if a different cost or route applies depending upon whether one is coming or going.

Possible Layout 1 Assembly Department (1) Printing (2) Machine Shop (3) Receiving (4) Shipping (5) Testing (6) Room 1 Room 2 Room 3 Room 4 Room 5 Room 6 60’ 40’

Interdepartmental Flow Network Showing Number of Weekly Loads 100 1 1 2 3 50 30 20 100 50 20 10 4 5 6 50 근접운반비 (Adjacent Cost) = $1, 비근접운반비 (Non-Adjacent C.) = $2 Total Cost = 50+200+40+30+50+10+40+100+50 = $570

Possible Layout 2 Painting Department (2) Assembly (1) Machine Shop (3) Receiving (4) Shipping (5) Testing (6) Room 1 Room 2 Room 2 Room 4 Room 5 Room 6 60’ 40’

Interdepartmental Flow Graph Showing Number of Weekly Loads 30 2 1 3 50 100 100 20 50 20 10 4 5 6 50 근접운반비(Adjacent Cost)= $1, 비근접운반비(Non-Adjacent C.)=$2 Total Cost = 50+100+20+60+50+10+40+100+50=$480

Computer Programs to Assist in Layout CRAFT SPACECRAFT CRAFT 3-D MULTIPLE CORELAP ALDEP COFAD FADES - expert system It is probably useful to note that these programs operate on the basis of heuristics - and do not necessarily produce the optimal answer.

Fixed Position Layout Layout in which the product or project remains stationary, and workers, materials, and equipment are moved as needed 비행기, 선박 등의 생산방식

Cellular Layout - Work Cells A temporary product-orient arrangement of machines and personnel in what is ordinarily a process-oriented facilities Students should be asked to comment upon the technology required to implement the concept of work cells. Under what conditions is such a cellular arrangement possible?

Work Cell Floor Plan Office Tool Room Work Cell Saws Drills

Improving Layouts by Moving to the Work Cell Concept

Work Cell Advantages Inventory Equipment utilization Floor space Direct labor costs Equipment utilization Employee participation Quality

Office Layout Design positions people, equipment, & offices for maximum information flow Arranged by process or product Example: Payroll dept. is by process Relationship chart used Examples Insurance company Software company

Relationship Chart (부문상호관계표) 1 Ordinary closeness: President (1) & Costing (2) 1 President 2 O 3 2 Costing U 4 A A 3 Engineering I Absolutely necessary: President (1) & Secretary (4) O 4 President’s Secretary

Office Relationship Chart 1 President 2 Chief Technology Officer 3 Engineer’s Area 4 Secretary 5 Office entrance 7 Equipment cabinet 8 Photocopy equipment 9 Storage room U I A O E X Val. Closeness A Absolutely necessary E Especially important I Important O Ordinary OK U Unimportant X Not desirable

Retail /Service Layout - Grid Design Office Carts Check- out Grocery Store Meat Bread Milk Produce Frozen Foods

Store Layout - with Dairy, Bread, High Drawer Items in Corners Students should be asked to identify differences between this and the previous slide.

Warehouse Layout Design balances space (cube) utilization & handling cost Similar to process layout Items moved between dock & various storage areas Optimum layout depends on Variety of items stored Number of items picked

An Assembly Line Layout

Line Balancing Precedence diagram Cycle time Network showing order of tasks and restrictions on their performance Cycle time Maximum time product spends at any one workstation

Line Balancing Precedence diagram Cycle time Cycle time example Cd = Network showing order of tasks and restrictions on their performance Cycle time Maximum time product spends at any one workstation Cycle time example Cd = production time available desired units of output Cd = (8 hours x 60 minutes / hour) (120 units) Cd = = 4 minutes 480 120

Flow Time vs Cycle Time Cycle time = max time spent at any station Flow time = time to complete all stations

Cycle time = max (4, 4, 4) = 4 minutes Flow Time vs Cycle Time Cycle time = max time spent at any station Flow time = time to complete all stations 1 2 3 4 minutes Flow time = 4 + 4 + 4 = 12 minutes Cycle time = max (4, 4, 4) = 4 minutes

Minimum number of workstations Efficiency of Line  i i = 1 ti nCa E = Cd N = Efficiency Minimum number of workstations where ti = completion time for element i j = number of work elements n = actual number of workstations Ca = actual cycle time Cd = desired cycle time

Line Balancing Process 1. Draw and label a precedence diagram. 2. Calculate the desired cycle time required for the line. 3. Calculate the theoretical minimum number of workstations. 4. Group elements into workstations, recognizing cycle time and precedence constraints. 5. Calculate the efficiency of the line. 6. Stop if theoretical minimum number of workstations on an acceptable efficiency level reached. If not, go back to step 4.

Line Balancing WORK ELEMENT PRECEDENCE TIME (MIN) A Press out sheet of fruit — 0.1 B Cut into strips A 0.2 C Outline fun shapes A 0.4 D Roll up and package B, C 0.3 Desired unit of output : 6,000 units Available working hour a day : 40 Hrs

Line Balancing D B C A WORK ELEMENT PRECEDENCE TIME (MIN) A Press out sheet of fruit — 0.1 B Cut into strips A 0.2 C Outline fun shapes A 0.4 D Roll up and package B, C 0.3 0.1 0.2 0.4 0.3 D B C A

Line Balancing D B C A WORK ELEMENT PRECEDENCE TIME (MIN) A Press out sheet of fruit — 0.1 B Cut into strips A 0.2 C Outline fun shapes A 0.4 D Roll up and package B, C 0.3 0.1 0.2 0.4 0.3 D B C A Cd = = = 0.4 minute 40 hours x 60 minutes / hour 6,000 units 2400 6000 N = = = 2.5 workstations 1.0 0.4 0.1 + 0.2 + 0.3 + 0.4

Line Balancing D B C A WORK ELEMENT PRECEDENCE TIME (MIN) A Press out sheet of fruit — 0.1 B Cut into strips A 0.2 C Outline fun shapes A 0.4 D Roll up and package B, C 0.3 0.1 0.2 0.4 0.3 D B C A Cd = = = 0.4 minute 40 hours x 60 minutes / hour 6,000 units 2400 6000 N = = = 2.5 workstations 1.0 0.4 0.1 + 0.2 + 0.3 + 0.4 3 workstations

Line Balancing D B C A WORK ELEMENT PRECEDENCE TIME (MIN) A Press out sheet of fruit — 0.1 B Cut into strips A 0.2 C Outline fun shapes A 0.4 D Roll up and package B, C 0.3 Cd = 0.4 N = 2.5 0.1 0.2 0.4 0.3 D B C A

Line Balancing D B C A REMAINING REMAINING WORKSTATION ELEMENT TIME ELEMENTS Cd = 0.4 N = 2.5 0.1 0.2 0.4 0.3 D B C A

Line Balancing D B C A REMAINING REMAINING WORKSTATION ELEMENT TIME ELEMENTS 1 A 0.3 B, C Cd = 0.4 N = 2.5 0.1 0.2 0.4 0.3 D B C A

Line Balancing D B C A REMAINING REMAINING WORKSTATION ELEMENT TIME ELEMENTS 1 A 0.3 B, C B 0.1 C, D Cd = 0.4 N = 2.5 0.1 0.2 0.4 0.3 D B C A

Line Balancing D B C A REMAINING REMAINING WORKSTATION ELEMENT TIME ELEMENTS 1 A 0.3 B, C B 0.1 C, D 2 C 0.0 D Cd = 0.4 N = 2.5 0.1 0.2 0.4 0.3 D B C A

Line Balancing D B C A REMAINING REMAINING WORKSTATION ELEMENT TIME ELEMENTS 1 A 0.3 B, C B 0.1 C, D 2 C 0.0 D 3 D 0.1 none Cd = 0.4 N = 2.5 0.1 0.2 0.4 0.3 D B C A

Line Balancing D B C A REMAINING REMAINING WORKSTATION ELEMENT TIME ELEMENTS 1 A 0.3 B, C B 0.1 C, D 2 C 0.0 D 3 D 0.1 none A, B C D Work station 1 Work station 2 Work station 3 0.3 minute 0.4 minute Cd = 0.4 N = 2.5 0.1 0.2 0.4 0.3 D B C A

Line Balancing D B C A REMAINING REMAINING WORKSTATION ELEMENT TIME ELEMENTS 1 A 0.3 B, C B 0.1 C, D 2 C 0.0 D 3 D 0.1 none A, B C D Work station 1 Work station 2 Work station 3 0.3 minute 0.4 minute 0.1 0.2 0.4 0.3 D B C A Cd = 0.4 N = 2.5 E = = = 0.833 = 83.3% 0.1 + 0.2 + 0.3 + 0.4 3(0.4) 1.0 1.2

Announcement Next week HW (제출하지 않음) Mid Term Exam Example 1, 2 Solved Problem 1

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