1. System Design: Process Selection and Facility Layout Pertemuan 07 Mata kuliah: J0444 - Manajemen Operasional Tahun: 2010

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

5. Forecasting Product and Service Design Technological Change Capacity Planning Process Selection Facilities and Equipment Layout Work Design Process Selection and System Design

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

7. 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.

8. 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

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

10. Technology Acquisition Technology can have benefits but … Technology risks include: –What technology will and will not do –Technical issues –Economic issues Initial costs, space, cash flow, maintenance Consultants and/or skilled employees Integration cost, time resources Training, safety, job loss

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

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

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

14. Automation: Machinery that has sensing and control devices that enables it to operate –Fixed automation –Programmable automation Computer-aided design and manufacturing systems (CAD/CAM) Numerically controlled (NC) machines Robot Manufacturing cell Flexible manufacturing systems(FMS) Computer-integrated manufacturing (CIM) Automation

15. 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

16. Strategic Importance of Layout Proper layout enables: Higher utilization of space, equipment,and people Improved flow of information, materials, or people Improved employee morale and safer working conditions Improved customer/client interaction Flexibility

17. Types of Layouts Fixed-position layout Process-oriented layout Office layout Retail layout Warehouse layout Product-oriented layout

18. Six Layout Strategies Fixed-position layout –large bulky projects such as ships and buildings Process-oriented layout –deals with low-volume, high-variety production (“job shop”, intermittent production) Office layout –positions workers, their equipment, and spaces/offices to provide for movement of information

19. Six Layout Strategies - continued Retail/service layout –allocates shelf space and responds to customer behavior Warehouse layout –addresses trade-offs between space and material handling Product-oriented layout –seeks the best personnel and machine use in repetitive or continuous production

20. Layout Example - Office

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

22. 1 234 5 6 7 8910 In Out Workers A U-Shaped Production Line

23. Dept. A Dept. BDept. D Dept. C Dept. F Dept. E Used for Intermittent processing Job Shop or Batch Processes Process Layout (functional) Process Layout

24. Requirements of a Good Layout  an understanding of capacity and space requirements  selection of appropriate material handling equipment  decisions regarding environment and aesthetics  identification and understanding of the requirements for information flow  identification of the cost of moving between the various work areas

25. Constraints on Layout Objectives Product design & volume Process equipment & capacity Quality of work life Building and site

26. Areas of Concern in Layout Strategy Layout Strategy Material Flow Communication Work Cell Safety Material Attributes Warehousing Service Areas

27. Fixed-Position Layout Design is for stationary project Workers and equipment come to site Complicating factors –Limited space at site –Changing material needs

28. Process-Oriented Layout Design places departments with large flows of material or people together Department areas having similar processes located in close proximity –e.g., All x-ray machines in same area Used with process-focused processes

29. Steps in Developing a Process-Oriented Layout 1Construct a “from-to matrix” 2Determine space requirements for each department 3Develop an initial schematic diagram 4Determine the cost of this layout 5By trial-and-error (or more sophisticated means), try to improve the initial layout 6Prepare a detailed plan that evaluates factors in addition to transportation cost

30. Cost of Process-Oriented Layout

31. Interdepartmental Flow of Parts 123456 1 2 3 4 5 6 501000020 30 50 10 0 200 100 50 0 0

32. Interdepartmental Flow Graph Showing Number of Weekly Loads 10 0 5030 10 20 50 20 100 50 1 2 3 4 5 6

33. Possible Layout 1

34. Interdepartmental Flow Graph Showing Number of Weekly Loads 10 0 50 30 10 20 50 20 100 50 1 2 3 4 5 6

35. Possible Layout 3

36. Cellular Production – 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 Cellular Layouts

37. Cellular Layout - Work Cells Special case of product-oriented layout - in what is ordinarily a process-oriented facility Consists of different machines brought together to make a product Temporary arrangement only Example: Assembly line set up to produce 3000 identical parts in a job shop

38. Improving Layouts by Moving to the Work Cell Concept

39. Work Cell Floor Plan Office Tool Room Work Cell SawsDrills

40. 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

41. Office Layout Floor Plan Accounting Manager Brand X Finance Fin.Acct.

42. Relationship Chart 1 President O 2 CostingU AA 3 EngineeringI O 4 President’s Secretary 1 2 3 Ordinary closeness: President (1) & Costing (2) Absolutely necessary: President (1) & Secretary (4) 4 I = Important U = Unimportant

43. Office Relationship Shart 1 President 2 Chief Technology Officer 3 Engineer’s Area 4 Secretary 5 Office entrance 7 Equipment cabinet 8 Photocopy equipment 9 Storage room UIIAUOEUIIAUOE I O E I OAOAXOUEOAOAXOUE A I E U A IIEAXIIEAX UUOUUO OUOU O Val.Closeness AAbsolutely necessary EEspecially important IImportant OOrdinary OK UUnimportant XNot desirable

44. Retail/Service Layout  Design maximizes product exposure to customers  Decision variables  Store flow pattern  Allocation of (shelf) space to products  Types  Grid design  Free-flow design Video

45. Retail /Service Layout - Grid Design Office Carts Check- out Grocery Store MeatBread Milk Produce Frozen Foods

46. Store Layout - with Dairy, Bread, High Drawer Items in Corners

47. Retail/Service Layout - Free-Flow Design Feature Display Table Trans. Counter Apparel Store

48. Retail Store Shelf Space Planogram  Computerized tool for shelf-space management  Generated from store’s scanner data on sales  Often supplied by manufacturer 2 ft. 5 facings VO-5 SUAVE VO-5 PERT VO-5

49. A Good Service Layout (Servicescape) Considers Ambient conditions - background characteristics such as lighting, sound, smell, and temperature. Spatial layout and functionality - which involve customer circulation path planning Signs, Symbols, and Artifacts - characteristics of building design that carry social significance

50. 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

51. Warehouse Layout Floor Plan Zones Conveyor Truck Order Picker

52. Product-Oriented Layout Facility organized around product Design minimizes line imbalance –Delay between work stations Types: Fabrication line; assembly line

53. Product-Oriented Requirements Standardized product High production volume Stable production quantities Uniform quality of raw materials & components

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

55. Assembly Line Balancing Analysis of production lines Nearly equally divides work between workstations while meeting required output Objectives –Maximize efficiency –Minimize number of work stations

56. Assembly Line Balancing The General Procedure Determine cycle time by taking the demand (or production rate) per day and dividing it into the productive time available per day Calculate the theoretical minimum number of work stations by dividing total task time by cycle time Perform the line balance and assign specific assembly tasks to each work station

57. Assembly Line Balancing Steps 1.Determine tasks (operations) 2.Determine sequence 3.Draw precedence diagram 4.Estimate task times 5.Calculate cycle time 6.Calculate number of work stations 7.Assign tasks 8.Calculate efficiency

58. AB EH C D F G I 10 Min. 511 12 373 4 11 Precedence Diagram Example

59. Assembly Line Balancing Equations Cycle time = Production time available Demand per day Minimum number of work stations  Task times Cycle time Efficiency = =  Task times * (Cycle time) (Actual number of work stations)

60. Six Station Solution AB C E D F G I H 10 11 5 3 7 3 12

61. The End