1. OPERATIONS MANAGEMENT INTEGRATING MANUFACTURING AND SERVICES FIFTH EDITION Mark M. Davis Janelle Heineke Copyright ©2005, The McGraw-Hill Companies, Inc. PowerPoint Presentation by Charlie Cook, The University of West Alabama

2. CHAPTER PowerPoint Presentation by Charlie Cook The University of West Alabama Copyright © 2005 The McGraw-Hill Companies. All rights reserved. Facility Layouts 12

3. Copyright © 2005 The McGraw-Hill Companies. All rights reserved. McGraw-Hill/Irwin 12–3 CHAPTER OBJECTIVES Introduce the various facility layouts that are used in manufacturing and service operations. Present a methodology for designing a process-oriented layout. Introduce the concept of takt time and its relationship to the output capacity of a product-oriented layout. Identify the steps and elements involved in balancing an assembly line. Discuss the current trends in facility layouts given today’s shorter product life cycles and the customer’s increasing desire for customized products.

4. Copyright © 2005 The McGraw-Hill Companies. All rights reserved. McGraw-Hill/Irwin 12–4 Managerial Issues Recognizing that many factors must be considered in choosing how to layout a facility. Understanding the significant impact that choosing a particular type of layout has on the firm’s ability to compete in the market and its long-term success. Developing estimates of the investment costs of time and money associated with installing a particular layout. Attaining the goal of a smooth flow of material through the process through the choice of a layout that is both efficient and effective.

5. Copyright © 2005 The McGraw-Hill Companies. All rights reserved. McGraw-Hill/Irwin 12–5 Types of Manufacturing Layouts

6. Copyright © 2005 The McGraw-Hill Companies. All rights reserved. McGraw-Hill/Irwin 12–6 Characteristics of a Good Layout Exhibit 12.1

7. Copyright © 2005 The McGraw-Hill Companies. All rights reserved. McGraw-Hill/Irwin 12–7 Process Layout Developing a manufacturing or services process layout –Arrange departments consisting of similar or identical processes in a way that optimizes their relative placement, –Optimal placement involves placing departments with large amounts of interdepartmental traffic adjacent to one another to minimize material handling costs. –For service process, the main objective is to minimize customer and worker travel time through the process.

8. Copyright © 2005 The McGraw-Hill Companies. All rights reserved. McGraw-Hill/Irwin 12–8 Interdepartmental Flow Exhibit 12.2

9. Copyright © 2005 The McGraw-Hill Companies. All rights reserved. McGraw-Hill/Irwin 12–9 Building Dimensions and Departments Exhibit 12.3

10. Copyright © 2005 The McGraw-Hill Companies. All rights reserved. McGraw-Hill/Irwin 12–10 Interdepartmental Flow Graph with Number of Annual Movements Exhibit 12.4

11. Copyright © 2005 The McGraw-Hill Companies. All rights reserved. McGraw-Hill/Irwin 12–11 Cost Matrix—First Solution Exhibit 12.5

12. Copyright © 2005 The McGraw-Hill Companies. All rights reserved. McGraw-Hill/Irwin 12–12 Revised Interdepartmental Flowchart* Exhibit 12.6 *Only interdepartmental flow with effect on cost is depicted.

13. Copyright © 2005 The McGraw-Hill Companies. All rights reserved. McGraw-Hill/Irwin 12–13 Cost Matrix—Second Solution Exhibit 12.7

14. Copyright © 2005 The McGraw-Hill Companies. All rights reserved. McGraw-Hill/Irwin 12–14 Revised Building Layout Exhibit 12.8

15. Copyright © 2005 The McGraw-Hill Companies. All rights reserved. McGraw-Hill/Irwin 12–15 Product Layout Assembly Lines –A progressive paced assembly linked by some sort of material handling device. Assembly Line Type Differences –Material handling devices –Line configuration –Pacing (machine or human) –Product mix –Workstation characteristic –Length of line

16. Copyright © 2005 The McGraw-Hill Companies. All rights reserved. McGraw-Hill/Irwin 12–16 Illustrating Cycle Time and Throughput Time on an Assembly Line Exhibit 12.9

17. Copyright © 2005 The McGraw-Hill Companies. All rights reserved. McGraw-Hill/Irwin 12–17 Product Layout: Key Terms Product Interval Time –The time between products being completed (processed through) at a single station (process step). Also, cycle time or takt time. Product Duration (Throughput) Time. –The overall time required to entirely complete an individual product. Assembly Line Balancing –Assignment of tasks to workstations within a given cycle time and with minimum idle worker time.

18. Copyright © 2005 The McGraw-Hill Companies. All rights reserved. McGraw-Hill/Irwin 12–18 Assembly Line Balancing Steps 1.Specify the sequential relationships among tasks using a precedence diagram. 2.Determine the required takt (T) time. 3.Determine the theoretical minimum number of workstations (Nt) required to satisfy the takt time constraint. 4.Select a primary rule by which tasks are to be assigned to workstations and a secondary rule to break ties.

19. Copyright © 2005 The McGraw-Hill Companies. All rights reserved. McGraw-Hill/Irwin 12–19 Assembly Line Balancing Steps (cont’d) 5.Assign tasks, one at a time, to the first workstation until the sum of the task times is equal to the takt time. Continue assigning tasks to other workstations until all tasks are assigned. 6.Evaluate the efficiency of the resulting assembly line. 7.If efficiency is unsatisfactory, rebalance the line using a different decision rule in step 4.

20. Copyright © 2005 The McGraw-Hill Companies. All rights reserved. McGraw-Hill/Irwin 12–20 Takt Time and Throughput Time on an Assembly Line Matching task time to takt time: 1.Split the task 2.Duplicate the station 3.Share the task 4.Use a more skilled worker 5.Work overtime 6.Redesign the product

21. Copyright © 2005 The McGraw-Hill Companies. All rights reserved. McGraw-Hill/Irwin 12–21 Assembly Line Balancing Formulas units)(indayperOutput dayper timeProduction Takt time (T)  Sum of task times (S) Number of workstations  Takt time (T) workstations (N a ) ofnumberActual Sum of task times (S) Efficiency  

22. Copyright © 2005 The McGraw-Hill Companies. All rights reserved. McGraw-Hill/Irwin 12–22 Assembly Steps and Times for Model J Wagon Exhibit 12.10

23. Copyright © 2005 The McGraw-Hill Companies. All rights reserved. McGraw-Hill/Irwin 12–23 Precedence Graph for Model J Wagon Exhibit 12.11

24. Copyright © 2005 The McGraw-Hill Companies. All rights reserved. McGraw-Hill/Irwin 12–24 Balance Made According to Largest Number of Following Tasks Rule Exhibit 12.12A *Denotes task arbitrarily selected where there is a tie between longest operation times.

25. Copyright © 2005 The McGraw-Hill Companies. All rights reserved. McGraw-Hill/Irwin 12–25 Precedence Graph for Model J Wagon Exhibit 12.12 (cont’d) Efficiency Calculation

26. Copyright © 2005 The McGraw-Hill Companies. All rights reserved. McGraw-Hill/Irwin 12–26 Efficiency Calculation Exhibit 12.12 (cont’d)

27. Copyright © 2005 The McGraw-Hill Companies. All rights reserved. McGraw-Hill/Irwin 12–27 Flexible Line Layouts Exhibit 12.13 Source: Robert W. Hall, Attaining Manufacturing Excellence (Homewood, IL: Dow Jones–Irwin, 1987), p. 125.

28. Copyright © 2005 The McGraw-Hill Companies. All rights reserved. McGraw-Hill/Irwin 12–28 Group Technology (Cellular) Layout Benefits –Better human relations in small work teams. –Improved operator expertise from the limited number of parts and quick production cycle. –Less work-in-process inventory and material handling due to reduced number of production stages. –Faster production setup from faster tooling changes.

29. Copyright © 2005 The McGraw-Hill Companies. All rights reserved. McGraw-Hill/Irwin 12–29 Group Technology (GT) Layout Developing a GT Layout –Grouping parts into families that follow a common sequence of steps. –Identifying dominant flow patterns of parts-families for location of processes. –Physically grouping machines and processes into cells.

30. Copyright © 2005 The McGraw-Hill Companies. All rights reserved. McGraw-Hill/Irwin 12–30 Facilities Layout for Services Goals of Service Facility Layouts –Minimize travel time for workers and customers –Maximize revenues from customers Types of Service Layouts –Process layout—emergency rooms –Product layout—cafeteria line –Fixed-position layout—automobile repair shop

31. Copyright © 2005 The McGraw-Hill Companies. All rights reserved. McGraw-Hill/Irwin 12–31 Facilities Layout for Services (cont’d) Servicescape –The aspects of the physical surroundings in a service operation that can affect a customer’s perception of the service received. –Ambient conditions Noise, lighting, and temperature –Spatial layout and functionality Minimizing employee travel time and maximizing revenue opportunities from customers –Signs, symbols, and artifacts Objects that create positive images of the firm