1. Process Selection and Facility Layout
Chapter 6
Process Selection and Facility Layout

2. Chapter 6 Process Selection and Facility Layout
How an organization chooses to produce its goods or provide its services
Key aspects
make or buy decisions
capital intensity
process flexibility
Management 3620
Chapter 6 Process Selection and Facility Layout

3. Process Selection and System Design
Figure 6-1
Capacity
planning
Forecasting
Facilities and
Equipment
Product and
service design
Process
selection
Layout
Technological change
Work
design
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Chapter 6 Process Selection and Facility Layout

4. Process Selection and Capacity Planning
Make or Buy?
Available capacity
Expertise
Quality considerations
The nature of demand
Cost
Management 3620
Chapter 6 Process Selection and Facility Layout

5. Key Factors in Process Selection
Variety
How much
Flexibility
What degree
Volume
Expected output
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Chapter 6 Process Selection and Facility Layout

6. Chapter 6 Process Selection and Facility Layout
Basic Process Types
Continuous Processing
Repetitive/Assembly
Semicontinuous
Intermittent/Batch Processing
Job Shops
Small runs
Projects
Nonroutine jobs
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Chapter 6 Process Selection and Facility Layout

7. Chapter 6 Process Selection and Facility Layout
Job Shop
Used when processing a high-variety goods or services with low volumes
Processing requirements can differ with the job
Flow of jobs is intermittent
Processes must be highly flexible
Workers must be highly skilled and highly flexible
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Chapter 6 Process Selection and Facility Layout

8. Chapter 6 Process Selection and Facility Layout
Batch
Appropriate for moderate variety of goods or services with moderate volumes
Processing is intermittent
Process flexibility and worker skills do not need to be as high as with a job shop
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Chapter 6 Process Selection and Facility Layout

9. Repetitive (Assembly)
Used for more standardized goods and services with higher volumes
Process flexibility is small
Skill levels are generally low
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Chapter 6 Process Selection and Facility Layout

10. Chapter 6 Process Selection and Facility Layout
Continuous
Used for highly standardized goods and services with very higher volume
There is no process flexibility
Required skill levels are generally low
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Chapter 6 Process Selection and Facility Layout

11. Chapter 6 Process Selection and Facility Layout
Project
Unique effort to be accomplished with limited resources, i.e., the volume is one
Large scale effort
Process flexibility and worker skills can range from low to high
Management 3620
Chapter 6 Process Selection and Facility Layout

12. Variety, Flexibility, & Volume
Job
Shop
Batch
Repetitive
assembly
Continuous
Flow
Management 3620
Chapter 6 Process Selection and Facility Layout

13. Product-Process Life Cycle Matrix
Low
Volume
One of a
Kind
Multiple
Products,
Low
Volume
Few Major
Products,
Higher
Volume
High
Volume,
Standardization
Flexibility-
Quality
Job
Shop
Commercial
Printer
Heavy
Equipment
Batch
Assembly
Line
Automobile
Assembly
Continuous
Flow
Sugar
Refinery
Dependability
Cost
Flexibility-Quality
Dependability-Cost
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Chapter 6 Process Selection and Facility Layout

14. Chapter 6 Process Selection and Facility Layout
Automation (1 of 2)
Processes that have sensing and control devices that enable it to operate automatically
Three kinds
fixed
programmable
computer-aided design and manufacturing systems (CAD/CAM)
numerically controlled (NC) machines
robot
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Chapter 6 Process Selection and Facility Layout

15. Chapter 6 Process Selection and Facility Layout
Automation (2 of 2)
flexible
manufacturing cells
flexible manufacturing systems (FMS)
Processes and material handling controlled by computers
computer-integrated manufacturing (CIM)
Links various parts of the organization to achieve rapid response
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Chapter 6 Process Selection and Facility Layout

16. Service Process Design
Service blueprinting
A method used in service design to describe and analyze a proposed service.
Steps
Establish boundaries
Identify steps involved
Prepare a flowchart
Identify potential failure points
Establish a time frame
Analyze profitability
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Chapter 6 Process Selection and Facility Layout

17. Chapter 6 Process Selection and Facility Layout
Facilities Layout
The arrangement or configuration of departments, work centers, and equipment within the confines of a building or area
Focuses on the movement of work (customers or material) through the system
May involve designing a completely new layout or redesigning an existing layout
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Chapter 6 Process Selection and Facility Layout

18. Importance of Layout Decisions
Requires substantial investments of money and effort
Involves long-term commitments
Has significant impact on cost and efficiency of short-term operations
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Chapter 6 Process Selection and Facility Layout

19. The Need for Layout Decisions (1 of 2)
Inefficient operations
Changes in the design
of products or services
For Example:
High Cost
Bottlenecks
Accidents
The introduction of
new products or services
Safety hazards
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Chapter 6 Process Selection and Facility Layout

20. The Need for Layout Designs (2 of 2)
Changes in
environmental
or other legal
requirements
Changes in volume of
output or mix of
products
Morale problems
Changes in methods
and equipment
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Chapter 6 Process Selection and Facility Layout

21. Chapter 6 Process Selection and Facility Layout
Basic Layout Types
Product
Process
Fixed Position
Combination
Cellular
Other service layouts
warehouse and storage
retail
office
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Chapter 6 Process Selection and Facility Layout

22. Chapter 6 Process Selection and Facility Layout
Basic Layout Types
Product (continuous, repetitive)
Process (job shop)
Fixed Position (project)
Combination
Cellular (batch)
Other service layouts
warehouse and storage
retail
office
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Chapter 6 Process Selection and Facility Layout

23. Chapter 6 Process Selection and Facility Layout
Product Layout (1 of 3)
Uses standardized processing operations to achieve smooth, rapid, high-volume flow
Work stations or areas are arranged according to the fixed sequence of tasks required to produce a product or provide a service
Examples include production lines and assembly lines
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Chapter 6 Process Selection and Facility Layout

24. Chapter 6 Process Selection and Facility Layout
Product Layout (2 of 3)
Work stations are arranged so that the output of one is an input to the next, i.e., a series connection
Raw materials
or customer
Material
and/or labor
Station 1
Station 2
Material
and/or labor
Station 3
Material
and/or labor
Station 4
Material
and/or labor
Finished item
Layout design involves assigning one or more of the tasks (time) required to make the product/service to work stations
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Chapter 6 Process Selection and Facility Layout

25. Chapter 6 Process Selection and Facility Layout
Product Layout (3 of 3)
Disadvantages
Dull, repetitive jobs
Unskilled workers
Fairly inflexible
Susceptible to shutdowns
PM, quick repairs, and spare equipment parts
Incentive plan impractical
Advantages
High rate of output
Low unit cost
Labor specialization
Specialized equipment
Low material-handling cost
High utilization of labor and equipment
Routing and scheduling designed initially
Accounting, purchasing, and inventory control fairly routine
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Chapter 6 Process Selection and Facility Layout

26. A U-Shaped Production Line
Figure 6-7
Out In
More compact than the straight production line
Permits increased communication among workers
Increased flexibility in work assignments
Materials enter at about the same place that finished products exit 10 1 9 2
Workers 8 3 7 4 6 5
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Chapter 6 Process Selection and Facility Layout

27. Chapter 6 Process Selection and Facility Layout
Process Layout (1 of 3)
Layout that can handle varied processing requirements
each product/service may require a different sequence of operations (routing)
wide variety of products/services in small volumes
Work areas are arranged according to the processes being performed, i.e., like processes are located together
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Chapter 6 Process Selection and Facility Layout 10 10 9 9 9

28. Process (Functional) Layout (2 of 3)
222
2222
22222
Mill
Drill
Grind
Assembly
111
1111
444
44444
333
3333
333333
Lathes
Heat
treat
Gear
cutting
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Chapter 6 Process Selection and Facility Layout

29. Chapter 6 Process Selection and Facility Layout
Process Layouts (3 of 3)
Advantages
Handles a variety of processing requirements
Not vulnerable to equipment failure
General-purpose equipment
Individual incentive systems possible
Disadvantages
In-process inventory can be high
Routing and scheduling challenging
Equipment utilization low
Material-handling cost high
High supervision costs
High unit cost
Accounting, purchasing, and inventory control challenging
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Chapter 6 Process Selection and Facility Layout

30. Fixed-Position Layout
Layout in which the product or project remains stationary, and workers, materials, and equipment are moved as needed
Used in large construction projects
Scheduling of resources is an issue in this type of layout
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Chapter 6 Process Selection and Facility Layout

31. Chapter 6 Process Selection and Facility Layout
Combination Layout
Most real-world layouts are some combination or variation of product and process layouts
The mix that makes up the combination is determined by the needs of the customer
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Chapter 6 Process Selection and Facility Layout

32. Chapter 6 Process Selection and Facility Layout
Cellular Layout (1 of 2)
Layout in which processes are grouped into a cell that can process items that have similar processing requirements
A hybrid between a process and product layouts
Group technology identifies a family of items that have similar processing requirements
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Chapter 6 Process Selection and Facility Layout

33. Chapter 6 Process Selection and Facility Layout
Cellular Layout (2 of 2)
The processes shared by the members of a family form a small product layout
Volume of the entire family justifies the dedication of resources
Requires a high level of training and flexibility on the part of the employees
Management 3620
Chapter 6 Process Selection and Facility Layout

34. Cellular Manufacturing Layout
Figure 6-9
Heat
treat
Gear
cut
-1111
Lathe
Mill
Drill
-1111
Heat
treat
Mill
Drill
Grind
- 2222
Assembly
Heat
treat
Lathe
Mill
Grind
- 3333
Gear
cut
- 4444
Mill
Drill
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Chapter 6 Process Selection and Facility Layout

35. Cellular Layouts — Some Advantages
Reduced work-in-process inventory
Less floor space required
Reduced raw material and finished goods inventories required
Reduced direct labor costs
Heightened sense of employee participation
Increased utilization of equipment machinery
Reduced investment in machinery and equipment
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Chapter 6 Process Selection and Facility Layout

36. Chapter 6 Process Selection and Facility Layout
Service Layouts
Warehouse and storage layouts
frequency of order an important factor
number and width of aisles
height of storage racks
material-handling methods
Retail layouts
an objective is to maximize profitability per square foot of shelf space
traffic patterns, traffic flow and product placement are important factors
Office layouts
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Chapter 6 Process Selection and Facility Layout

37. Information Needed to Design a Good Layout (1 of 2)
An understanding of capacity of the area and the space and other requirements for processes
Identification of the cost of moving materials between the various work areas
Selection of appropriate material handling equipment
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Chapter 6 Process Selection and Facility Layout

38. Information Needed to Design a Good Layout (2 of 2)
Identification and understanding of the requirements for information flow to support the flow of work
Decisions regarding environment and aesthetics
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Chapter 6 Process Selection and Facility Layout

39. Designing Product Layouts (1 of 3)
The tasks required to make the product are distributed or assigned to the work stations
The objective when making these assignments is to minimize the workers’ idle time therefore idle time costs, and meet the required production rate for the line
Raw materials
or customer
Finished item
Station 2 3 4
Material
and/or labor 1
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Chapter 6 Process Selection and Facility Layout

40. Designing Product Layouts (2 of 3)
Ideally, each work station would be assigned the same amount of work (time), i.e., the required work would be balanced among the work stations
all workers would complete their assigned tasks at the same time (assuming they start their work simultaneously)
this would result in no idle time
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Chapter 6 Process Selection and Facility Layout

41. Designing Product Layouts (3 of 3)
Unfortunately there are conditions that can prevent the achievement of a perfectly balanced line
The estimated times for tasks
The precedence relationships for the tasks
The combinatoric nature of the problem
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Chapter 6 Process Selection and Facility Layout

42. Inputs Needed To Design a Product Layout (1 of 2)
The production rate required from the product layout or the cycle time.
The cycle time is the reciprocal of the production rate and visa versa
All of the tasks required to make the product
It is assumed that these tasks can not be divided further
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Chapter 6 Process Selection and Facility Layout

43. Inputs Needed To Design a Product Layout (2 of 2)
The estimated time to do each task
The precedence relationships between the tasks
determined by the technical constraints imposed by the product design
displayed as a network known as a precedence diagram
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Chapter 6 Process Selection and Facility Layout

44. The Precedence Diagram Problem 2, page 263
0.5
1.4
0.5
0.6 c f a b
0.5
0.7 h d
1.0 g
0.8 e
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Chapter 6 Process Selection and Facility Layout

45. Line Balancing Procedure
If not provided, find the cycle time. Remember the cycle time is the reciprocal of the production rate. The cycle time is expressed in the same time units as the estimated task times
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Chapter 6 Process Selection and Facility Layout

46. Line Balancing Relationships
Management 3620
Chapter 6 Process Selection and Facility Layout

47. Chapter 6 Process Selection and Facility Layout
Problem 2, page 263
Management 3620
Chapter 6 Process Selection and Facility Layout 29 27 27 27

48. Line Balancing Procedure
Determine the selection heuristic (rule of thumb) that may be used to help with the assignments
Examples of heuristic (intuitive) rules
Assign tasks in order of longest task time
Assign tasks in order of most following tasks
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
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Chapter 6 Process Selection and Facility Layout

49. Chapter 6 Process Selection and Facility Layout
Design Procedure
Cycle time = 60/33.33 = 1.8 minutes/unit
Selection heuristic: positional weight (part b)
Open the first work station with the full cycle time remaining unassigned
Management 3620
Chapter 6 Process Selection and Facility Layout

50. The Precedence Diagram Problem 2, page 263
0.5
1.4
0.5
0.6 c f a b
2.3
2.2
1.6
1.0
1.5
0.5
6.0
4.6
0.7 h d
0.5
Positional Weight
1.0 g
0.8 e
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Chapter 6 Process Selection and Facility Layout

51. Line Balancing Procedure
Determine which unassigned tasks are eligible, i.e., can be assigned to this work station at this time
For a task to be eligible, two conditions must be met
All tasks that precede that task must have already been assigned
The estimated task time must be equal to or less than the remaining cycle time for that work station
Management 3620
Chapter 6 Process Selection and Facility Layout

52. Chapter 6 Process Selection and Facility Layout
Design Procedure
If there is only one eligible task, assign it to the work station.
If there is more than one eligible task, use the selection heuristic (step 2) to determine which eligible task to assign.
Management 3620
Chapter 6 Process Selection and Facility Layout

53. Chapter 6 Process Selection and Facility Layout
Design Procedure
Reduce the station’s remaining cycle time by the estimated time for the assigned task. Return to step 4.
Management 3620
Chapter 6 Process Selection and Facility Layout

54. Chapter 6 Process Selection and Facility Layout
Design Procedure
If there are no eligible tasks, assignments to that work station are complete. Open the next work station and go back to step 4.
Management 3620
Chapter 6 Process Selection and Facility Layout

55. Chapter 6 Process Selection and Facility Layout
Design Procedure
Management 3620
Chapter 6 Process Selection and Facility Layout

56. Parallel Workstations
1 min.
2 min.
30/hr.
Bottleneck
1 min.
2 min.
60/hr.
30/hr.
Parallel Workstations
1 min.
Management 3620
Chapter 6 Process Selection and Facility Layout

57. Designing Process Layouts
Determine the relative positioning of the departments or work centers
Arrangement can be influenced by external factors
Typically when one department is moved at least one other department will have to move
This results in a combinatoric problem, i.e., a large number of possible arrangements
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Chapter 6 Process Selection and Facility Layout

58. Measures of Effectiveness
A major objective is to find an arrangement which minimizes material-handle cost, distance traveled, or time
Other concerns include
cost of changing an existing layout
expected operating costs
amount of effective capacity created
ease of modifying the system
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Chapter 6 Process Selection and Facility Layout

59. Information Requirements
Dimensions of departments; dimension of building
Forecast of flows between each pair of work centers
Distance between locations and material-handling cost/unit of distance
Financial resources
Special considerations
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Chapter 6 Process Selection and Facility Layout

60. Interdepartmental Work Flows for Assigned Departments30
170
100 1 3 2 A B C
Figure 6-14
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Chapter 6 Process Selection and Facility Layout

61. Alternative Approaches
Closeness ratings
ranks the importance that each pair of departments be close together
rating can incorporate qualitative and quantitative information
allows the consideration of areas not in the flow of “material”
Computer analysis
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Chapter 6 Process Selection and Facility Layout