1. Process Selection and Facility Layout6
Process Selection and Facility Layout

2. 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.

3. Learning Objectives 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.

4. Introduction Process selection Major implications
Deciding on the way production of goods or services will be organized
Major implications
Capacity planning
Layout of facilities
Equipment
Design of work systems

5. Process Strategy Key aspects of process strategy
Capital intensive – equipment/labor
Process flexibility
Technology
Adjust to changes
Design
Volume
technology

6. Technology
Technology: The application of scientific discoveries to the development and improvement of products and services and operations processes.
Technology innovation: The discovery and development of new or improved products, services, or processes for producing or providing them.

7. Kinds of Technology
Operations management is primarily concerned with three kinds of technology:
Product and service technology
Process technology
Information technology
All three have a major impact on:
Costs
Productivity
Competitiveness

8. Technology Competitive Advantage
Innovations in
Products and services
Cell phones
PDAs
Wireless computing
Processing technology
Increasing productivity
Increasing quality
Lowering costs

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

10. Process Types Job shop Batch Repetitive/assembly line Continuous
Small scale
Batch
Moderate volume
Repetitive/assembly line
High volumes of standardized goods or services
Continuous
Very high volumes of non-discrete goods

11. Product and Service Processes
Figure 6.2
Process Type
Job Shop
Appliance repair Emergency room
Batch
Commercial baking Classroom Lecture
Repetitive
Automotive assembly Automatic carwash
Continuous (flow)
Steel Production Water purification

12. Product – Process Matrix
Figure 6.2 (cont’d)
Dimension
Job variety
Process flexibility
Unit cost
Volume of output

13. Product and Process Profiling
Process selection can involve substantial investment in
Equipment
Layout of facilities
Product profiling: Linking key product or service requirements to process capabilities
Key dimensions
Range of products or services
Expected order sizes
Pricing strategies
Expected schedule changes
Order winning requirements

14. Automation
Automation: Machinery that has sensing and control devices that enables it to operate
Fixed automation
Programmable automation

15. Automation Computer-aided design and manufacturing systems (CAD/CAM)
Numerically controlled (NC) machines
Robot
Manufacturing cell
Flexible manufacturing systems(FMS)
Computer-integrated manufacturing (CIM)

16. Facilities Layout
Layout: the configuration of departments, work centers, and equipment, with particular emphasis on movement of work (customers or materials) through the system
Product layouts
Process layouts
Fixed-Position layout
Combination layouts

17. Objective of Layout Design
Facilitate attainment of product or service quality
Use workers and space efficiently
Avoid bottlenecks
Minimize unnecessary material handling costs
Eliminate unnecessary movement of workers or materials
Minimize production time or customer service time
Design for safety

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

19. The Need for Layout Decisions
Inefficient operations
For Example:
High Cost
Bottlenecks
Changes in the design
of products or services
The introduction of new products or services
Accidents
Safety hazards

20. The Need for Layout Design (Cont’d)
Changes in
environmental
or other legal
requirements
Changes in volume of
output or mix of
products
Changes in methods
and equipment
Morale problems

21. Basic Layout Types Product layout Process layout Fixed Position layout
Layout that uses standardized processing operations to achieve smooth, rapid, high-volume flow
Process layout
Layout that can handle varied processing requirements
Fixed Position layout
Layout in which the product or project remains stationary, and workers, materials, and equipment are moved as needed
Combination layouts

22. Product Layout Figure 6.4 Raw materials or customer
Station 1
Station 2
Station 3
Station 4
Finished item
Material
and/or labor
Material
and/or labor
Material
and/or labor
Material
and/or labor
Used for Repetitive or Continuous Processing

23. Advantages of Product Layout
High rate of output
Low unit cost
Labor specialization
Low material handling cost
High utilization of labor and equipment
Established routing and scheduling
Routing accounting and purchasing

24. Disadvantages of Product Layout
Creates dull, repetitive jobs
Poorly skilled workers may not maintain equipment or quality of output
Fairly inflexible to changes in volume
Highly susceptible to shutdowns
Needs preventive maintenance
Individual incentive plans are impractical

25. A U-Shaped Production Line
Figure 6.6 1 2 3 4 5 6 7 8 9 10 In
Out
Workers

26. Used for Intermittent processing Job Shop or Batch Processes
Process Layout
Figure 6.7
Process Layout
(functional)
Dept. A
Dept. B
Dept. D
Dept. C
Dept. F
Dept. E
Used for Intermittent processing
Job Shop or Batch Processes

27. Advantages of Process Layouts
Can handle a variety of processing requirements
Not particularly vulnerable to equipment failures
Equipment used is less costly
Possible to use individual incentive plans

28. Disadvantages of Process Layouts
In-process inventory costs can be high
Challenging routing and scheduling
Equipment utilization rates are low
Material handling slow and inefficient
Complexities often reduce span of supervision
Special attention for each product or customer
Accounting and purchasing are more involved

29. Fixed Position Layouts
Fixed Position Layout: Layout in which the product or project remains stationary, and workers, materials, and equipment are moved as needed.
Nature of the product dictates this type of layout
Weight
Size
Bulk
Large construction projects

30. Cellular Layouts Cellular Production Group Technology
Layout in which machines are grouped into a cell that can process items that have similar processing requirements
Group Technology
The grouping into part families of items with similar design or manufacturing characteristics

31. Functional vs. Cellular Layouts
Table 6.3
Dimension
Functional
Cellular
Number of moves between departments
Travel distances
Travel paths
Job waiting times
Throughput time
Amount of work in process
Supervision difficulty
Scheduling complexity
Equipment utilization

32. Service Layouts Warehouse and storage layouts Retail layouts
Office layouts
Service layouts must be aesthetically pleasing as well as functional

33. Design Product Layouts: Line Balancing
Line Balancing is the process of assigning
tasks to workstations in such a way that the workstations have approximately equal time requirements.

34. Cycle Time Cycle time is the maximum time
allowed at each workstation to
complete its set of tasks on a unit.

35. Determine Maximum Output

36. Determine the Minimum Number of Workstations Required

37. Precedence Diagram a b c d e
Figure 6.11
Precedence diagram: Tool used in line balancing to display elemental tasks and sequence requirements
A Simple Precedence
Diagram a b c d e
0.1 min.
0.7 min.
1.0 min.
0.5 min.
0.2 min.

38. Example 1: Assembly Line Balancing
Arrange tasks shown in Figure 6.10 into three workstations.
Use a cycle time of 1.0 minute
Assign tasks in order of the most number of followers

39. Example 1 Solution Workstation Time Remaining Eligible Assign Task
Revised Time Remaining
Station Idle Time 1
1.0
0.9
0.2
a, c c
none a - 2 b
0.0 3
0.5
0.3 d e

40. Calculate Percent Idle Time
Efficiency = 1 – Percent idle time

41. Line Balancing Rules Some Heuristic (intuitive) Rules:
Assign tasks in order of most following tasks.
Count the number of tasks that follow
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.

42. Example 2
0.2
0.2
0.3 a b e
0.8
0.6 c d f g h
1.0
0.4
0.3

43. Solution to Example 2 a b e f d g h c Station 1 Station 2 Station 3

44. Bottleneck Workstation
1 min.
2 min.
30/hr.
Bottleneck

45. Parallel Workstations
1 min.
2 min.
60/hr.
30/hr.
Parallel Workstations

46. Designing Process Layouts
Information Requirements:
List of departments
Projection of work flows
Distance between locations
Amount of money to be invested
List of special considerations
Location of key utilities

47. Example 3: Interdepartmental Work Flows for Assigned Departments
Figure 6.13 1 3 2 30
170
100 A B C