MTSU Facility Layout Arrangement of Manufacturing and Services Processes Arrangement of Manufacturing and Services Processes

MTSU 2 Locate All Areas Within a Building “ Equipment “ Work stations “ Material storage “ Rest/break areas “ Utilities “ Eating areas “ Aisles “ Offices “ Equipment “ Work stations “ Material storage “ Rest/break areas “ Utilities “ Eating areas “ Aisles “ Offices

MTSU 3 Characteristics of the Facility Layout Decision (1 of 2) “ Location of these various areas impacts the flow through the system “ The layout can affect productivity and costs generated by the system “ Layout alternatives are limited by “ the amount and type of space required for the various areas, “ the amount and type of space available and “ the operations strategy “ Location of these various areas impacts the flow through the system “ The layout can affect productivity and costs generated by the system “ Layout alternatives are limited by “ the amount and type of space required for the various areas, “ the amount and type of space available and “ the operations strategy

MTSU 4 Characteristics (2 of 2) “ Infrequent “ Expensive to implement “ Studied and evaluated extensively “ Involves a long-term commitment “ Infrequent “ Expensive to implement “ Studied and evaluated extensively “ Involves a long-term commitment

MTSU 5 Manufacturing Facility Layout “ Basic layout forms “ Process “ Product “ Cellular “ Fixed position “ Basic layout forms “ Process “ Product “ Cellular “ Fixed position

MTSU 6 Process Layouts (Job Shop) “ Equipment that performs similar processes is grouped together “ Used when the operations system must handle a wide variety of products in relatively small volumes, i.e., flexibility “ Equipment that performs similar processes is grouped together “ Used when the operations system must handle a wide variety of products in relatively small volumes, i.e., flexibility

MTSU 7 Characteristics of Process Layouts (1 of 2) “ General-purpose equipment used “ Changeover is rapid “ Material flow is intermittent “ Material handling equipment is flexible “ Operators must be highly skilled “ General-purpose equipment used “ Changeover is rapid “ Material flow is intermittent “ Material handling equipment is flexible “ Operators must be highly skilled

MTSU 8 Characteristics (2 of 2) “ Technical supervision required “ Planning, scheduling and controlling functions are challenging “ Production time is relatively long “ In-process inventory is relatively high “ Technical supervision required “ Planning, scheduling and controlling functions are challenging “ Production time is relatively long “ In-process inventory is relatively high

MTSU 9 Product Layouts (Assembly Line) “ Operations are arranged in the sequence required to make the product “ Used when the operations system must handle a narrow variety of products in relatively high volumes “ Operations and personnel are dedicated to producing one or a small number of products “ Operations are arranged in the sequence required to make the product “ Used when the operations system must handle a narrow variety of products in relatively high volumes “ Operations and personnel are dedicated to producing one or a small number of products

MTSU 10 Characteristics of Product Layouts (1 of 2) “ Special-purpose equipment used “ Changeover is expensive and lengthy “ Material flow approaches continuous “ Material handling equipment is fixed “ Operators need not be skilled “ Special-purpose equipment used “ Changeover is expensive and lengthy “ Material flow approaches continuous “ Material handling equipment is fixed “ Operators need not be skilled

MTSU 11 Characteristics (2 of 2) “ Little direct supervision required “ Planning, scheduling and controlling functions are relatively straight-forward “ Production time for a unit is relatively short “ In-process inventory is relatively low “ Little direct supervision required “ Planning, scheduling and controlling functions are relatively straight-forward “ Production time for a unit is relatively short “ In-process inventory is relatively low

MTSU 12 Cellular Layout “ Operations required to produce a particular family (group) of parts are arranged in the sequence required to make that family “ Used when the operations system must handle a moderate variety of products in moderate volumes “ Operations required to produce a particular family (group) of parts are arranged in the sequence required to make that family “ Used when the operations system must handle a moderate variety of products in moderate volumes

MTSU 13 Characteristics Relative to Process Layouts “ Equipment can be less general-purpose “ Material handling costs are reduced “ Training periods for operators are shortened “ In-process inventory is lower “ Parts can be made faster and shipped more quickly “ Equipment can be less general-purpose “ Material handling costs are reduced “ Training periods for operators are shortened “ In-process inventory is lower “ Parts can be made faster and shipped more quickly

MTSU 14 Characteristics Relative to a Product Layout “ Equipment can be less special-purpose “ Changeovers are simplified “ Production easier to automate “ Equipment can be less special-purpose “ Changeovers are simplified “ Production easier to automate

MTSU 15 Fixed-Position Layouts “ Product remains in a fixed position, and the personnel, material and equipment come to it “ Used when the product is very bulky, large, heavy or fragile “ Examples “ Product remains in a fixed position, and the personnel, material and equipment come to it “ Used when the product is very bulky, large, heavy or fragile “ Examples

MTSU 16 Hybrid Layouts “ Combination of layout types

MTSU Service Facility Layouts

MTSU 18 Characteristics of Services (1 of 2) “ There may be a diversity of services provided “ There are three dimensions to the type of service “ Standard or custom design “ Amount of customer contact “ Mix of physical goods and intangible services “ There may be a diversity of services provided “ There are three dimensions to the type of service “ Standard or custom design “ Amount of customer contact “ Mix of physical goods and intangible services

MTSU 19 Characteristics (2 of 2) “ There are three types of service operations “ Quasi manufacturing “ Customer-as-participant “ Customer-as-product “ There are three types of service operations “ Quasi manufacturing “ Customer-as-participant “ Customer-as-product

MTSU 20 Characteristics of Service Facility Layouts “ The encounter between the customer and the service must be provided for “ The degree to which customer-related features must be provided varies with the amount of involvement and customer contact “ The encounter between the customer and the service must be provided for “ The degree to which customer-related features must be provided varies with the amount of involvement and customer contact

MTSU 21 Analyzing Service Facility Layouts “ For quasi manufacturing services, approaches used to design and analyze process and product layouts may be used “ Provide for customer waiting lines “ For quasi manufacturing services, approaches used to design and analyze process and product layouts may be used “ Provide for customer waiting lines

MTSU 22 Retail Service Layout “ Objective: Maximize net profit per square foot of store space “ Servicescape refers to the physical surroundings in which the service takes place, and how these surroundings affect customers and employees “ ambient conditions “ spatial layout and functionality “ Signs, symbols and artifacts “ Objective: Maximize net profit per square foot of store space “ Servicescape refers to the physical surroundings in which the service takes place, and how these surroundings affect customers and employees “ ambient conditions “ spatial layout and functionality “ Signs, symbols and artifacts

MTSU Job Design, Work Measurement, and Learning Curves

MTSU Job Design

MTSU 25 Job Design “ Definition - Specifying the work activities of an individual or group in an organizational setting “ What is to be done (job content) “ How it is to be done (job method) “ Definition - Specifying the work activities of an individual or group in an organizational setting “ What is to be done (job content) “ How it is to be done (job method)

MTSU 26 Issues Affecting Job Design “ Quality control as part of the worker’s job “ Cross-training workers to perform multiskilled jobs “ Employee involvement and team approaches “ “Informating” ordinary workers through telecommunication networks and computers “ Extensive use of temporary workers “ Automation of heavy manual work “ Organizational commitment to providing meaningful and rewarding jobs “ Quality control as part of the worker’s job “ Cross-training workers to perform multiskilled jobs “ Employee involvement and team approaches “ “Informating” ordinary workers through telecommunication networks and computers “ Extensive use of temporary workers “ Automation of heavy manual work “ Organizational commitment to providing meaningful and rewarding jobs

MTSU 27 Considerations in Job Design “ Behavioral “ Specialization of labor “ Job enrichment “ Sociotechnical systems “ Physical “ Work physiology “ Anthropometric data “ Ergonomics “ Behavioral “ Specialization of labor “ Job enrichment “ Sociotechnical systems “ Physical “ Work physiology “ Anthropometric data “ Ergonomics

MTSU 28 Work Methods (1 of 2) “ Overall Productive System “ Identify delays, transportation distances, processes, and processing time requirements to simplify the entire operation “ Flow diagram and process chart “ Worker at a Fixed Workplace “ Simplify the work method and make the required operator motions as few and as easy as possible “ Overall Productive System “ Identify delays, transportation distances, processes, and processing time requirements to simplify the entire operation “ Flow diagram and process chart “ Worker at a Fixed Workplace “ Simplify the work method and make the required operator motions as few and as easy as possible

MTSU 29 Work Methods (2 of 2) “ Worker Interacting with Equipment “ Efficient use of the person’s and equipment time “ Worker-machine charts “ Workers Interacting with Other Workers “ activity or gang chart “ Worker Interacting with Equipment “ Efficient use of the person’s and equipment time “ Worker-machine charts “ Workers Interacting with Other Workers “ activity or gang chart

MTSU Work Measurement and Standards

MTSU 31 Work Measurement “ Purpose is to establish the standard for a particular job “ These standards are used to “ schedule work and allocate capacity “ provide an objective basis for motivating the work force and measuring their performance “ bid for new contracts and to evaluate performance on existing ones “ provide benchmarks for improvement “ compute the cost of a product “ Purpose is to establish the standard for a particular job “ These standards are used to “ schedule work and allocate capacity “ provide an objective basis for motivating the work force and measuring their performance “ bid for new contracts and to evaluate performance on existing ones “ provide benchmarks for improvement “ compute the cost of a product

MTSU 32 Work Measurement Techniques “ Time Study “ Elemental Standard-Time Data “ Predetermined Motion-Time Data Systems “ Work Sampling “ Time Study “ Elemental Standard-Time Data “ Predetermined Motion-Time Data Systems “ Work Sampling

MTSU 33 Time Study (1 of 3) “ Information is generally gathered by observing an operator directly or on video tape using a stopwatch “ The job or task being studied is broken down into elements “ The operator is timed on his/her performance of each of the elements over a number of cycles or repetition “ Information is generally gathered by observing an operator directly or on video tape using a stopwatch “ The job or task being studied is broken down into elements “ The operator is timed on his/her performance of each of the elements over a number of cycles or repetition

MTSU 34 Time Study (2 of 3) “ While the analyst is collecting the time data, he/she is also evaluating the “quality” of the operators performance relative to that jobs “normal” time “ This performance rating is somewhat subjective and is based on the complexity and difficulty of the task, and the operator’s skill, dexterity and speed “ While the analyst is collecting the time data, he/she is also evaluating the “quality” of the operators performance relative to that jobs “normal” time “ This performance rating is somewhat subjective and is based on the complexity and difficulty of the task, and the operator’s skill, dexterity and speed

MTSU 35 Time Study (3 of 3) “ Normal time = Average observed time X Performance rating “ Standard time = Normal time + (Allowances X Normal time) or = Normal time/(1-Allowance) “ The number of observations required depends on the precision and confidence level desired by the analyst and the variability of the observed times “ Normal time = Average observed time X Performance rating “ Standard time = Normal time + (Allowances X Normal time) or = Normal time/(1-Allowance) “ The number of observations required depends on the precision and confidence level desired by the analyst and the variability of the observed times

MTSU 36 Elemental Standard-Time Data (1 of 2) “ Information was obtained from previous time studies and codified in tables in a data base “ Break down the job into its elements “ Look up each element in the data base and the time associated with it. Times obtained from these tables are considered as normal time “ Information was obtained from previous time studies and codified in tables in a data base “ Break down the job into its elements “ Look up each element in the data base and the time associated with it. Times obtained from these tables are considered as normal time

MTSU 37 Elemental (2 of 2) “ Adjust the element time for special characteristics of the job “ Add element times together and apply allowances “ Adjust the element time for special characteristics of the job “ Add element times together and apply allowances

MTSU 38 Predetermined Motion-Time Data Systems (PMTS) (1 of 2) “ Use tables with times form basic motions. these data are generic to a wide range of manual work “ Three PMTS systems are available “ methods time measurement (MTM) “ most work measurement systems (MOST) “ work factor “ Use tables with times form basic motions. these data are generic to a wide range of manual work “ Three PMTS systems are available “ methods time measurement (MTM) “ most work measurement systems (MOST) “ work factor

MTSU 39 Predetermined (2 of 2) “ Advantages “ They enable development of standards before a job exists “ They have been tested extensively in the laboratory and field “ They include performance rating in the times given in the tables “ They can be used to audit time studies for accuracy “ They are accepted as part of many union contracts “ Advantages “ They enable development of standards before a job exists “ They have been tested extensively in the laboratory and field “ They include performance rating in the times given in the tables “ They can be used to audit time studies for accuracy “ They are accepted as part of many union contracts

MTSU 40 Work Sampling (1 of 3) “ Involves observing a portion of or sample of the work activity and drawing some conclusions about the activity “ Identify the specific activity or activities to be studied “ Estimate the proportion of time the activity of interest is of the total time “ Involves observing a portion of or sample of the work activity and drawing some conclusions about the activity “ Identify the specific activity or activities to be studied “ Estimate the proportion of time the activity of interest is of the total time

MTSU 41 Work Sampling (2 of 3) “ Determine the level of confidence and the accuracy desired, and compute the sample size “ Determine the specific times when each observation is to be made. It is important that these observation times be selected randomly “ Determine the level of confidence and the accuracy desired, and compute the sample size “ Determine the specific times when each observation is to be made. It is important that these observation times be selected randomly

MTSU 42 Work Sampling (3 of 3) “ At the end of the study, divide the number of times the activity of interest was observed divided by the total number of observations to find the percentage of time the subject is engaged in the activity of interest “ Three primary applications “ Ratio delay “ Performance measurement “ Time standards “ nonrepetitive tasks “ repetitive tasks “ At the end of the study, divide the number of times the activity of interest was observed divided by the total number of observations to find the percentage of time the subject is engaged in the activity of interest “ Three primary applications “ Ratio delay “ Performance measurement “ Time standards “ nonrepetitive tasks “ repetitive tasks

MTSU 43 Advantages of Work Sampling “ Several work sampling studies may be conducted simultaneously by the same observer “ The observer need not be a trained analyst “ No timing devices are required “ Work of a long cycle time may be studies with fewer observer hours “ The duration of the study is longer, which minimizes effects of short-period variations “ The study may be temporarily delayed with little effect “ Operator has less chance to influence the findings by changing his/her work pattern “ Several work sampling studies may be conducted simultaneously by the same observer “ The observer need not be a trained analyst “ No timing devices are required “ Work of a long cycle time may be studies with fewer observer hours “ The duration of the study is longer, which minimizes effects of short-period variations “ The study may be temporarily delayed with little effect “ Operator has less chance to influence the findings by changing his/her work pattern

MTSU 44 Financial Incentive Systems “ Basic compensation systems “ Time spent on the job “ Hourly pay “ Straight salary “ Direct daily output “ Piece rate “ Sales “ Commission “ Basic compensation systems “ Time spent on the job “ Hourly pay “ Straight salary “ Direct daily output “ Piece rate “ Sales “ Commission

MTSU 45 Individual and Small-Group Plans “ Based on output and quality measures “ Aggregate individual pay - pay for worker in a group is based on the average performance of all workers in the group “ Skill development (pay for knowledge) “ Based on output and quality measures “ Aggregate individual pay - pay for worker in a group is based on the average performance of all workers in the group “ Skill development (pay for knowledge)

MTSU 46 Organizationwide Plans “ Profit sharing - distribute a percentage of profits across the work force “ Gain sharing “ Based on controllable costs or units of output “ Always combined with a participative approach to management “ Scanlon - workers are paid on the basis of the incentive rates worked out in management-worker committees “ Lincoln Electric - combination of a piece-work plan, a yearly bonus, and a stock-purchase plan “ Profit sharing - distribute a percentage of profits across the work force “ Gain sharing “ Based on controllable costs or units of output “ Always combined with a participative approach to management “ Scanlon - workers are paid on the basis of the incentive rates worked out in management-worker committees “ Lincoln Electric - combination of a piece-work plan, a yearly bonus, and a stock-purchase plan

MTSU 47 Learning Curves “ Shows the relationship between unit production time and the number of consecutive units produced “ Based on three assumptions “ The amount of time required to complete a given task will be less each time the task is undertaken “ The unit time will decrease at a decreasing rate “ The reduction in time will follow a predictable pattern “ Shows the relationship between unit production time and the number of consecutive units produced “ Based on three assumptions “ The amount of time required to complete a given task will be less each time the task is undertaken “ The unit time will decrease at a decreasing rate “ The reduction in time will follow a predictable pattern

MTSU 48