6-1 McGraw-Hill/Irwin Operations Management, Seventh Edition, by William J. Stevenson Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Process Design and Facility Layout Chapter 6 Process Design and Facility Layout

6-2 McGraw-Hill/Irwin Operations Management, Seventh Edition, by William J. Stevenson Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Process Design and Facility Layout Process Selection and System Design Forecasting Product and service design Capacity planning Facilities and Equipment Layout Work design Process selection Technological change

6-3 McGraw-Hill/Irwin Operations Management, Seventh Edition, by William J. Stevenson Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Process Design and Facility Layout Introduction Make or Buy? – Available capacity – Expertise – Quality Consideration – The nature of demand – Cost

6-4 McGraw-Hill/Irwin Operations Management, Seventh Edition, by William J. Stevenson Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Process Design and Facility Layout Variety –How much Flexibility –What degree Volume –Expected output Process Selection

6-5 McGraw-Hill/Irwin Operations Management, Seventh Edition, by William J. Stevenson Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Process Design and Facility Layout Process Types Job Shops – Small runs Batch Processing Repetitive/Assembly – Semicontinuous Continuous Processing Projects – Nonroutine jobs

6-6 McGraw-Hill/Irwin Operations Management, Seventh Edition, by William J. Stevenson Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Process Design and Facility Layout Job Shop Batch Repetitive assembly Continuous Flow Variety, Flexibility, & Volume

6-7 McGraw-Hill/Irwin Operations Management, Seventh Edition, by William J. Stevenson Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Process Design and Facility Layout Product-Process Matrix Flexibility-QualityDependability-Cost Continuous Flow Assembly Line Batch Job Shop Low Volume One of a Kind Multiple Products, Low Volume Few Major Products, Higher Volume High Volume, High Standard- ization Commercial Printer Heavy Equipment Automobile Assembly Sugar Refinery Flexibility- Quality Dependability Cost

6-8 McGraw-Hill/Irwin Operations Management, Seventh Edition, by William J. Stevenson Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Process Design and Facility Layout Service blueprint: A method used in service design to describe and analyze a proposed service. Service Blueprint

6-9 McGraw-Hill/Irwin Operations Management, Seventh Edition, by William J. Stevenson Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Process Design and Facility Layout Establish boundaries Identify steps involved Prepare a flowchart Identify potential failure points Establish a time frame Analyze profitability Service Process Design

6-10 McGraw-Hill/Irwin Operations Management, Seventh Edition, by William J. Stevenson Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Process Design and Facility Layout Automation: Machinery that has sensing and control devices that enables it to operate Automation

6-11 McGraw-Hill/Irwin Operations Management, Seventh Edition, by William J. Stevenson Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Process Design and Facility Layout Automation Computer-aided design and manufacturing systems (CAD/CAM) Numerically controlled (NC) machines Robot Manufacturing cell Flexible manufacturing systems Computer-integrated manufacturing (CIM)

6-12 McGraw-Hill/Irwin Operations Management, Seventh Edition, by William J. Stevenson Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Process Design and Facility Layout Layout: the configuration of departments, work centers, and equipment, with particular emphasis on movement of work (customers or materials) through the system Layout

6-13 McGraw-Hill/Irwin Operations Management, Seventh Edition, by William J. Stevenson Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Process Design and Facility Layout Basic Layout Types Product Layouts Process Layouts Fixed-Position Combination Layouts

6-14 McGraw-Hill/Irwin Operations Management, Seventh Edition, by William J. Stevenson Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Process Design and Facility Layout Basic Layout Types Product 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

6-15 McGraw-Hill/Irwin Operations Management, Seventh Edition, by William J. Stevenson Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Process Design and Facility Layout Requires substantial investments of money and effort Involves long-term commitments Has significant impact on cost and efficiency of short-term operations Importance of Layout Decisions

6-16 McGraw-Hill/Irwin Operations Management, Seventh Edition, by William J. Stevenson Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Process Design and Facility Layout 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

6-17 McGraw-Hill/Irwin Operations Management, Seventh Edition, by William J. Stevenson Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Process Design and Facility Layout The Need for Layout Designs (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

6-18 McGraw-Hill/Irwin Operations Management, Seventh Edition, by William J. Stevenson Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Process Design and Facility Layout Basic Layout Formats Group Technology Layout Just-in-Time Layouts –May be assembly-line or –Group Technology formats Fixed Position Layout –e.g. Shipbuilding

6-19 McGraw-Hill/Irwin Operations Management, Seventh Edition, by William J. Stevenson Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Process Design and Facility Layout Cellular Layouts Cellular Manufacturing Group Technology Flexible Manufacturing Systems

6-20 McGraw-Hill/Irwin Operations Management, Seventh Edition, by William J. Stevenson Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Process Design and Facility Layout Cellular Layouts Cellular Manufacturing –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

6-21 McGraw-Hill/Irwin Operations Management, Seventh Edition, by William J. Stevenson Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Process Design and Facility Layout A Flow Line for Production or Service Flow Shop or Assembly Line Work Flow Raw materials or customer Finished item Station 2 Station 3 Station 4 Material and/or labor Statio n 1 Material and/or labor Material and/or labor Material and/or labor

6-22 McGraw-Hill/Irwin Operations Management, Seventh Edition, by William J. Stevenson Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Process Design and Facility Layout A U-Shaped Production Line In Out Workers

6-23 McGraw-Hill/Irwin Operations Management, Seventh Edition, by William J. Stevenson Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Process Design and Facility Layout Process Layout Process Layout - work travels to dedicated process centers Milling Assembly & Test Grinding Drilling Plating

6-24 McGraw-Hill/Irwin Operations Management, Seventh Edition, by William J. Stevenson Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Process Design and Facility Layout Functional Layout Gear cutting Mill Drill Lathes Grind Heat treat Assembly

6-25 McGraw-Hill/Irwin Operations Management, Seventh Edition, by William J. Stevenson Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Process Design and Facility Layout Cellular Manufacturing Layout Assembly Lathe Mill Drill Heat treat Heat treat Heat treat Gear cut Gear cut Grind

6-26 McGraw-Hill/Irwin Operations Management, Seventh Edition, by William J. Stevenson Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Process Design and Facility Layout 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.

6-27 McGraw-Hill/Irwin Operations Management, Seventh Edition, by William J. Stevenson Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Process Design and Facility Layout Cycle Time Cycle time is the maximum time allowed at each workstation to complete its set of tasks on a unit.

6-28 McGraw-Hill/Irwin Operations Management, Seventh Edition, by William J. Stevenson Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Process Design and Facility Layout Determine Maximum Output

6-29 McGraw-Hill/Irwin Operations Management, Seventh Edition, by William J. Stevenson Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Process Design and Facility Layout Determine the Minimum Number of Workstations Required: Efficiency

6-30 McGraw-Hill/Irwin Operations Management, Seventh Edition, by William J. Stevenson Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Process Design and Facility Layout Precedence Diagram Precedence diagram: Tool used in line balancing to display elemental tasks and sequence requirements A Simple Precedence Diagram a b cd e 0.1 min. 0.7 min. 1.0 min. 0.5 min.0.2 min.

6-31 McGraw-Hill/Irwin Operations Management, Seventh Edition, by William J. Stevenson Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Process Design and Facility Layout Example 1: Assembly Line Balancing Arrange tasks shown in the previous slide into workstations. –Use a cycle time of 1.0 minute –Assign tasks in order of the most number of followers

6-32 McGraw-Hill/Irwin Operations Management, Seventh Edition, by William J. Stevenson Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Process Design and Facility Layout Solution to Example 1

6-33 McGraw-Hill/Irwin Operations Management, Seventh Edition, by William J. Stevenson Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Process Design and Facility Layout Calculate Percent Idle Time

6-34 McGraw-Hill/Irwin Operations Management, Seventh Edition, by William J. Stevenson Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Process Design and Facility Layout Line Balancing Rules 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. Some Heuristic (intuitive) Rules:

6-35 McGraw-Hill/Irwin Operations Management, Seventh Edition, by William J. Stevenson Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Process Design and Facility Layout Solution to Example 2 Station 1Station 2Station 3Station 4 ab e f d g h c

6-36 McGraw-Hill/Irwin Operations Management, Seventh Edition, by William J. Stevenson Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Process Design and Facility Layout Parallel Workstations 1 min.2 min.1 min. 30/hr. 1 min. 60/hr. 30/hr. 60/hr. 1 min. 30/hr. Bottleneck Parallel Workstations

6-37 McGraw-Hill/Irwin Operations Management, Seventh Edition, by William J. Stevenson Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Process Design and Facility Layout Requirements: –List of departments –Projection of work flows –Distance between locations –Amount of money to be invested –List of special considerations Designing Process Layouts

6-38 McGraw-Hill/Irwin Operations Management, Seventh Edition, by William J. Stevenson Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Process Design and Facility Layout Example 3: Interdepartmental Work Flows for Assigned Departments ABC