1. Design of Operations

2. Types of Design Problems
1. Product/Service Design *
Process Design *
Layout
4. Job Design
Supply Chain Design
Facility Location
* Together Often Called Production Design.

3. General Principles of Production Design
1. Plan Ahead Carefully (5-20 Year Life Span)
Check Constraints (Capacity Planning)
Interface with All Related Disciplines:
Marketing * Finance * Accounting * Engineering
4. Analyze, Test, and Debug Preliminary Designs
5. Describe System Being Designed

4. Recording Preliminary Designs
Memos
Engineering Drawings (pages 199, 213)
Bill of Materials (page 246)
Assembly Charts(p 247)
Operations Process Sheets (page 248)
Process Flow Chart (page 249)

5. Improving Production Design
Multi-Functional Design Teams
Concurrent Product and Process Design
Designing for Manufacturing and Assembly (DFM)
Designing for Environment
Measuring Design Quality
Quality Function Deployment
Designing for Robustness

6. Improving Service Design
Consistency with Strategic Focus and Mission
User Friendliness
Robustness
Sustainability
Linkage of Front and Back Office
Cost-Effectiveness
Visibility to Consumer

7. Process Design: Types of Processes
Projects
Batch Production – Job Shops and Work Cells
Mass Production – Assembly Lines
Continuous Production
Breakeven Analysis Can Be Used for Selection of Process Type. Fixed vs. Variable Costs

8. Work Cells • Intermediate to Job Shops & Assembly Lines
• Group of Machines to Make Set of Parts
• Minimizes Distances, Related Handling Costs
• Minimizes Inventories

9. Work Cell Example

10. Newer Process Technologies
• Computer Numerically Controlled Tools
• Automated Material Handling
• Flexible Manufacturing Systems (FMS)
• Robotics
• Computer Integrated Manufacturing (CAD/CAM)

11. Before Performing Layout, We Must
1. Complete Production (Product, Process) Design
2. Complete Reports, Drawings
Equipment Selection
Personnel Requirements
Space Requirements

12. Layout: Preliminaries
Data Required for Layout:
Flow of Materials Between Facilities
Shape and Size of Facilities
Total Floor Space Available
Location Restrictions
Adjacency Requirements between Pairs of Facilities

13. Layout Criteria
Total Handling Cost = TC = i j cij fij dij for All i’s and j’s
cij = Cost of Moving One Load One Unit Distance
fij = Number of Loads (Load Summary or Relationship Chart)
dij = Distance

14. Supply Chain Design and Management
Interrelated
Organizations
Resources
Processes
Create and Deliver Products & Services to Customers
Firm’s Suppliers & Distributors Included in Supply Chain

15. Supply Chain Tools Linkages Internet
Enterprise Resource Planning – ERP and SAP
Single Sourcing

16. Facility Location (AKA Logistics Management)
Rationale for Decisions:
• Expand Markets
Depletion of Resources at Existing Locations
Expansion of Existing Facilities Difficult
Costs, Obsolescence, at Existing Locations -Increase Proximity to Suppliers, Distributors

17. Location Options • Expand Existing Facilities
• Add New Locations, Retain Old Ones
• Shut Down Old Operations & Move to Another
• Do Nothing

18. Location Decision Steps
Decide on Criteria to Use in Evaluation: What Are Relevant Objectives & Costs?
2. Gather Data on Important Factors: Potential Markets, Constraints, Sources of Raw Materials, Etc.
Develop Location Alternatives.
4. Evaluate Alternatives & Make Selection.