1. Lesson 3 Layout & Flow

2. Sandwich making
'If you were making a sandwich for a friend how would you do it?
'If you were making sandwiches for a whole group of friends who were due to arrive in an hour’s time, how would your process change?‘
'If you were making 5,000 sandwiches a day for a supermarket, how would you wish to organize the production system?'

3. Sandwich making
Sandwich for a friend - What kind of sandwich would they want (limited only by the availability of ingredients in the kitchen), when do they want it? (it could be made to order), and how much it could be customized (more salt and pepper)
Whole group/1hour arrival (You would butter all the bread together, standardize the products to some extent, and so on).
‘Making 5,000 sandwiches a day for a supermarket?'(would need to use an assembly line or process, etc.).

4. Volume & Variety
Layout and flow cannot be discussed without first considering :
The product volume and variety
The type of process to be employed
These factors are inextricably linked

5. How decisions might be connected (Slack2004)
Project process
Jobbing process
Batch process
Mass process
Continuous process
Fixed position layout
Process layout
Cell layout
Product layout
The physical position of all transforming resources
The flow of the operation’s transformed resources
Process type
Basic layout type
Detailed design of layout
Volume and variety
Strategic performance objectives
Decision 1
Decision 2
Decision 3

6. Volume & Variety Product volume – quantity of units produced
Product Variety – is the variation in products (SKU’s)
Product volume and variety is affected by the type of business and the market demand for products

7. Volume-Variety Dilemma Accepted continuum for processes
Low
VOLUME
High
High
Not possible?
VARIETY
Accepted continuum for processes
Not viable?
Low

8. Volume & Variety
Product volume and variety have a big influence on process design.
The two dimensions normally go together:
Low volumes operations normally have a high degree of product variety. [automotive component supplier]
High volume operations normally have a low degree of product variety.[canning plant]
The same organisation can have different parts of the operation organised differently – [large automotive OEM]
Volume/Variety is seen as having a large Influence upon the process type deployed

9. Volume & Variety
Process types in manufacturing are generally considered as:
Project Processes
Jobbing Processes
Batch Processes
Mass Processes
Continuous Processes
The volume/variety position points to the most appropriate process

10. Manufacturing Process Types
Volume
Low
High
Variety
Project
Jobbing
Batch
Mass
Contin-
-uous
Notice how process types overlap!
Process types are designed to cater for the volume /variety mix

11. Project Processes
One-off, complex, large scale, high work content “products” e.g. construction projects
Specially made, every one customized i.e. a project!
Defined start and finish: time, quality and cost objectives
Many different skills have to be coordinated
Fixed position layout, resources brought to product

12. Jobbing Processes Also deal with high variety / low volume
Very small quantities: “one-offs”
Specially made. High variety, low repetition e.g. bespoke suits
Skill requirements are usually very broad
Each job has to share resources with other jobs
Fixed position or process layout (routing decided by jobbers)

13. Batch Processes Higher volumes and lower variety than for jobbing
Standard products, repeating demand. But can make specials
Specialized, narrower skills
Set-ups (changeovers) at each stage of production
Can use process or cellular layout, has a predetermined planned routing

14. Mass (Line) Processes Higher volumes than Batch
Standard, repeat products
Low and/or narrow skills
No set-ups, or almost instantaneous ones
Cell or product layout: a fixed sequence of operations

15. Continuous Processes
Extremely high volumes and low variety: often single product
Standard, repeat products
Highly capital-intensive and automated
Few changeovers, if any, required
Difficult and expensive to start and stop the process
Product layout: usually flow along conveyors or pipes

16. The Product/Process Matrix
Low volume
Low standardization
INCREASING VARIETY
Multiple products
Higher volume
Few major products
High volume
High standardization
PRODUCT CHARACTERISTICS
INCREASING VOLUME
Machine tool maker
Custom furniture maker
Automobile factory
Petro- chemical refinery
Jumbled
flow
(jobbing)
Disconnected
line flow
(batch)
Connected
(mass)
Smooth flow (Continuous)
PROCESS CHARACTERISTICS
Random
(project)

17. Deviating from the ‘natural’ diagonal on the product-process matrix has consequences for cost and flexibility
Project
Jobbing
Batch
Mass
Continuous
Professional
service
Service
Shop
None
Less process flexibility than is needed so high cost
More process flexibility than is needed so high cost
The ‘natural’ line of fit of process to volume/variety characteristics
Manufacturing operations process types
Service operations process types
Variety
Volume 9

18. Layout and F low Layout decisions have to be carefully thought out:
Size and complexity of equipment involved
Cost
Resource and time
Disruption to production and customer service
Complex and ‘muddled’ production flows can evolve if not designed and monitored properly

19. Layout Product volume and variety dictate the process type selected.
Areas of overlap exist where more than one type could be applicable – in this case operational objectives are used to make decision: cost, flexibility, known future areas of growth etc.
There are four broad layouts
Fixed position
Process
Cell
Product

20. Layout
It is important to note that one process type does not mean one layout type.
There are normally choices associated with jobbing processes, batch processes and mass processes.

21. The nature of the basic layout types
Manufacturing B
asic layout
Service
process types
types
process types
Project processes
Project processes
Fixed
Professional
position layout
services
Jobbing processes
Process layout
Service shops
Batch pro
cesses
Cell layout
Mass
processes
Mass services
Product layout
Continuous
processes

22. Fixed Position Transformed resources do not move
Equipment and resources move to the product which is stationery.
Normally because product is too large, i.e. shipbuilding, aero-engine, power generators.
Or too delicate or fragile – heart transplant patient
Main problems associated with this type of operations are space and scheduling issues:
Adequate space for groups to work without interference
Storage for materials and equipment
Scheduling of material and people is key to FP success

23. Fixed Position Example
Case study exercise – ALSTROM
Pg 209
In groups of 2-3 discuss the set questions.
Question 2 should be answered in relation to performance metrics - Quality, Speed, Dependability. Flexibility and Cost

24. Alstrom Case Study
1. What factors at each site are likely to influence the layout?
Although the generators themselves will be relatively standard (though there are some variations) the installation of each will be slightly different where the generator interfaces with something else. The input of fuel, the output of generated electricity, and the way in which the generator is fixed to its foundations will all depend on the customer’s site. So, for example, the geometry of the site could be important. Very large pieces of the generator will have to be brought in and positioned in the site. If access to the site is restricted this may have to be done in a non-standard manner. Similarly, some of the services required by the product (compressed air, water, etc.) may not be available at the right place. These will also have to be provided.

25. Alstrom Case Study
2. Parts of the product are assembled in the factory and transported to the site. What advantage does this give the company?
The advantages to the company can be classed according to our normal five performance objectives as follows.
Quality – Assembling large parts of the generator at the factory ensures that the job will be done by skilled staff who can make sure that any small problems in assembly are solved at the point where there are the appropriate facilities. Assembling parts on the site introduces more variables which may undermine the quality of the product.
Speed – It will be faster to assemble parts in the factory using an appropriate layout than trying to do the same on the site where conditions are less predictable.
Dependability – Again, the relatively predictable conditions of the factory will allow assembly to be carried out to a schedule. Assembly on site is prone to disruption from the other tasks taking place on the site.
Flexibility – Standard parts, assembled at the factory, can be used for more than one customer. So, for example, if one part, when it gets to the site, is found to be unsatisfactory another one can be rushed to it at short notice.
Cost – Making many of the same part in the factory (even if the part is fairly large) is obviously cheaper than assembling everything on site.

26. Process Layout Resource types dominate layout decision
Similar process are located together – for convenience or utilisation
Parts are routed through the operation based upon their requirements
Flow patterns are different and complex
Control and visibility is also an issue
Example of use – production of aero-engine parts – many different processes involved.

27. Cellular Layout
Where all the required resources are available in one area to meet the processing needs.
Can be of the product or process layout type.
After completion the product may be finished or go to another cell.
Cells attempt to bring order to the product flow

28. Process Layout Cellular Layout

29. Product Layout Each product follows the same route
Can also be known as flow-line
Flow is clear predictable and therefore offers visibility and ease of control.
Products produced are standardised (although small variations are possible) – but flow route is the same.
Examples – car assembly, electronic goods etc.

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

31. Next Week No tutorial sessions on Monday 15th October
Answer SAQ for Unit 1 - Lesson 3
Read Unit 1 lesson 4 of study guide
LAYOUT DESIGN TECHNIQUES – LINE BALANCING

32. Lesson 3 Self Assessment Questions

33. Lesson 3 Self Assessment Questions

34. Lesson 3 Self Assessment Questions

35. Lesson 3 Self Assessment Questions