1. Design in Operations Management
Operations Management Session 2

2. Objectives By the end of this session, student will be able to:
Understand the design function
Know the stages involved in the design of products and designs
Appreciate the importance of the design function in the production of products or services
Use simple flow charts, process flow charts, customer processing framework and method study techniques
Identify a manufacturing or service operation by it’s production type
Understand the procedure of a facilities layout decision
Identify the type of layout(s) within a given operation

3. Topics
Product and Service Design
Process Design
Layout Design

4. Definition To satisfy needs of the customer
Applies to both products and services
The design activity is a transformation process
Starts with concept and ends in a created product or service
Provide products and services which will
Satisfy customers’ wants and needs
In a cost effective and efficient manner

5. Product Designers Seek to create things that:-
satisfy needs
meet expectations
are aesthetically pleasing
perform well
are reliable
are easy to manufacture and deliver
Operations Managers focus on the design of the transformation process

6. Elements of Design Quality Speed Dependability Flexibility Cost
Why Important
Involves a lot of money
Decision process happens infrequently
Sets limits of operation’s capability

7. Good Design Meets customer requirements Is simple to make
Can be rapidly developed into production
Few modifications are required during the development phase

8. Design As a Transformation Process
High
Quality
Speedily
Produced
Dependably
Delivered
Flexibly
Low
Cost
Input Transformed Resources
Materials
Information
Customers
The
Design
Process
Output
Input
Input Transforming Resources
Facilities
Staff

9. The Design Process Concept Generation Screening Preliminary Design
Evaluation and Improvement
Prototyping and Final Design

10. Product or Service Concept Generation
Internal Sources
External Sources
Customer
needs
analysis
Marketing
Surveys
Customer
suggestions
Research
departments
Suggestions
from
staff
Competitors
Concept Generation
Concept generation

11. Concept Screening Marketing Operations Finance Feasibility
Is the market big enough?
Do we have the capabilities to produce it?
Do we have sufficient finance?
Acceptability
How much market share could we gain?
How much reorganisation is involved?
How much return on investment?
Vulnerability
What is the risk of failing in the market?
What is the risk of not being able to produce to standard?
How much could we lose?

12. Preliminary Design Reducing complexity: -
Standardisation – restrict variety to that which has real value for the customer
Commonality – use common elements in a product or service
Modularisation – sub-components that can be assembled in different ways

13. Concurrent Design Integrated product and process design
Simultaneous decision making by design teams
Design function needs to be more de-centralised
Needs careful control - Project Management

14. Design for Manufacturing
If a product is easy to make it will be economical to produce
It is important to consider the manufacturability early in the design phase
Integrate product design with process planning and design

15. Characteristics of Service
Intangible
High customer contact
Easily copied
Perishable
Not able to store or stock
De-centralised
Each delivery is unique

16. PERFORMANCE SPECIFICATION DELIVERY SPECIFICATION
Service Design
PERFORMANCE SPECIFICATION
DESIGN SPECIFICATION
DELIVERY SPECIFICATION

17. A Well Designed Service system
Customer friendly
Flexible
Easy to maintain
Cost effective
Robust
Quick to respond
Consistent with the company’s strategy

18. Case Study
Design Principles at Braun AG

19. Facilities Layout Decision Procedure
Volume and variety
Decision 1
Project process
Jobbing process
Batch process
Mass process
Continuous process
Process type
Strategic performance objectives
Decision 2
Fixed position layout
Process layout
Cell layout
Product layout
Basic layout type
Decision 3
Detailed design of layout
The physical position of all transforming resources
Flow of transformed resources

20. What is Layout & Flow?
Layout – deciding where to put all the facilities, machines, equipment & staff in an operation
Flow – the way in which transformed resources travel through the operation

21. Why is Layout Design Important?
Requires substantial investments of resources
Involves long term commitments – not easily changed
Impact on the cost & efficiency of short term operations

22. Fixed Position Layout Transformed resources remain stationary
Transforming resources move as necessary
Effectiveness is governed by:-
Scheduling of transforming resources
Reliability of transforming resources
Examples:
shipbuilding
construction projects
some surgery
Restaurant
Highway construction

23. Process Layout
Similar processes (or with similar needs) are located together
Utilisation of transforming resources is improved
Transformed resources move through the operation according to their needs
Different products  different needs  different routes
May be very complex
Supermarkets
Some machine manufacture

24. Cell Layout Machines or services grouped into cells
Cells determined by the process requirements of the family of product/services they transform
Could be considered mini product layouts
Can simplify a functional/process layout
Flexible
Duplicates some resources
Buffet restaurant
Disco

25. Cell Layout
Office
Tool Room
Work Cell
Saws
Drills

26. Product Layout
Locates the transforming resources entirely for the convenience of the transformed resources
Transformed resources follow a specified route
Flow is clear, predictable, easy to control
car assembly
paper manufacture
self-service cafe

27. Comparison of Main Layouts
Fixed
Process
Cell
Product
Position
Advantages
Very high product and mix flexibility
Product/customer not moved
High variety of tasks for staff
High product and
Can give good
mix flexibility.
compromise.
Low unit costs for
high volume.
Relatively robust
Fast throughput.
in the case of
Opportunities for
disruptions.
Group work can
specialization of
result in good
equipment.
Easy to supervise.
motivation.
Disadvantages
Can have low mix
Very high unit costs
Low utilization.
Can be costly to
flexibility.
rearrange existing
Can have very high work in progress
layout.
Not very robust to
Scheduling space
disruption.
and activities can
Can need more
be difficult.
Complex flow.
plant.
Work can be very
repetitive.

28. What Makes a Good Layout?
Safety
Length of flow
Clarity of flow
Staff comfort
Management coordination
Accessibility
Space utilisation
Long term flexibility

29. General Process Layout Design Method
Gather data on work centres & the flow between them
Design schematic of work centres & flows
Adjust schematic for spatial constraints
Draw layout showing actual work centre areas & distances resources/people must travel. Calculate effectiveness measure
Attempt to improve effectiveness, through relocating work centres

30. Detail Design - Fixed Position
Design a layout to maximise the effectiveness of the transforming resources
Resource location
Define site & available locations
Define resource centres & their requirements
Devise evaluation criteria
Match resource centres to available locations
Preliminary allocation on site criteria
Amend allocation using relative-location criteria

31. Detailed Design - Process Layout
Complex due to large number of options possible
Flow charts & relationship charts - balancing
Some of the information requirements
Area required by each work centre
Constraints on the shape of work area allocated
Degree & direction of flow between work areas
Desirability of work centres proximity to each other or to fixed points in the layout

32. Detail Design – Cell Layout
Cells are a compromise between the flexibility of process layout & the simplicity of product layout
Requires decisions as to
Extent & nature of cells to adopt
Resources to allocate to cells
Product Flow Analysis

33. Process vs Cell Layout Process Layout Work Cell 1 2 2 5 4 3 1 6 LATHE
SAW 2
SAW
PRESS
LATHE 2
SAW 5 4
LATHE
HEAT TREAT
LATHE
GRINDER 3 1
PRESS
GRINDER
HEAT TREAT 6
PRESS
GRINDER

34. Detail Design – Product Layout
Arranging the stages
Long-thin or short-fat?
Shape of the line
Staffing flexibility & balance
Rework
Handling
Passage
Teamwork

35. Long-Thin or Short-Fat? (1)
30 mins
30 mins
30 mins
30 mins
60 mins
60 mins
60 mins
60 mins
120 mins
120 mins
120 mins
120 mins

36. Long-Thin or Short-Fat? (2)
Advantages of Long-Thin Layouts
Controlled flow
Simple materials handling
Lower capital requirements
More efficient operation
Advantages of Short-Fat Layouts
Higher mix flexibility
Higher volume flexibility
Higher robustness
Less monotonous work

37. Case Study
Delhaize De Leeuw supermarket