1. Chapter 6 Process Selection and Facility Layout
What is designing a television?
TV at RANGS
Making sandwiches!

2. Process selection
Deciding on the way production of goods or services will be organized
A process is any part of an organization that transforms inputs into outputs, with the intention that the output will be of greater value than the input.

3. Flowchart for a new product development process
Major implications
Capacity planning
Layout of facilities
Equipment
Design of work systems

4. Process Selection and System Design- Figure 6.1
Forecasting
Facilities and Equipment
Capacity Planning
Layout
Product and Service Design
Process Selection
Technological Change
Work Design

5. Process Strategy Capital intensive Equipment Labor Process flexibility
Technology
Adjust to changes
Design
Volume
technology

6. 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.

7. OM & Technology Exam Competitive Advantage Relevant technology
Product and service technology
Process technology
Information technology
Technology impact
Costs
Productivity
Competitiveness
Competitive Advantage
Product/Service Tech.
Cell phones
PDAs
Wireless computing
Process Technology
Increasing productivity
Increasing quality
Lowering costs

8. Exam Technology risks 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

9. Process Selection Intermittent process
Process that produces a variety of products, with different processing requirements, in lower volumes.
Repetitive process
Process that produces one or a few products, with the same or similar processing requirements, usually in higher volumes.
Variety
How much
Flexibility
What degree
Volume
Expected output

10. Process Types 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

11. Product – Process Matrix | Figure 6.2
Process Type
Job Shop
Batch
Repetitive
Continuous (flow)
Appliance repair Emergency room
Ineffective
Commercial baking Classroom Lecture
Automotive assembly Automatic carwash
Steel Production Water purification

12. Product-Process Matrix
Flexibility-Quality
Dependability-Cost
Continuous
Flow
Assembly
Line
Batch
Job
Shop
Low
Volume
One of a
Kind
Multiple
Products,
Few
Major
Higher
High
Volume,
Standard-
ization
Book
Writing
Movie
Theaters
Automobile
Sugar
Refinery
Flexibility-
Quality
Dependability-
Cost

13. Product – Process Matrix | Figure 6.2 (cont’d)
Dimension
Job Shop
Batch
Repetitive
Continuous (flow)
Job variety
Very High
Moderate
Low
Very low
Process flexibility
Unit cost
Volume of output
High

14. Process selection can be costly
Product Profiling
Linking key product or service requirements to process capabilities
Key dimensions
Range of products or services
Expected order sizes
Pricing strategies
Expected schedule changes
Order winning requirements
Process selection can be costly
Equipment
Layout of facilities

15. Automation: Machinery that has sensing and control devices that enables it to operate
Fixed automation: Low production cost and high volume but with minimal variety and high changes cost
Assembly line
Programmable automation: Economically producing a wide variety of low volume products in small batches
Computer-aided design and manufacturing systems (CAD/CAM)
Numerically controlled (NC) machines / CNC
Industrial robots (arms)

16. Automation: Machinery that has sensing and control devices that enables it to operate …
Flexible automation: Require less changeover time and allow continuous operation of equipment and product variety
Manufacturing cell
Flexible manufacturing systems: Use of high automation to achieve repetitive process efficiency with job shop process
Automated retrieval and storage
Automated guided vehicles
Computer-integrated manufacturing (CIM)

17. Robot

18. Movie Time

19. Flexible Manufacturing System
Group of machines that include supervisory computer control, automatic material handling, robots and other processing equipment
Advantage:
reduce labor costs and more consistent quality
lower capital investment and higher flexibility than hard automation
relative quick changeover time
Disadvantage
used for a family of products and require longer planning and development times

20. Computer-integrated manufacturing
Use integrating computer system to link a broad range of manufacturing activities, including
engineering design
Purchasing
order processing
production planning and control …
Advantage:
rapid response to customer order and product change, reduce indirect labor cost, high quality

21. Service Process Design
Establish boundaries
Identify steps involved
Prepare a flowchart
Identify potential failure points
Establish a time frame for operations
Analyze profitability

22. Fixed-Position layout
Facilities Layout
The configuration of departments, work centers, and equipment, with particular emphasis on movement of work (customers or materials) through the system
Product layouts
Process layouts
Fixed-Position layout
Combination layouts
Get a good layout!
Requires substantial resources
Long-term commitments
Short-term cost/efficiency

23. Objective of Layout Design
Exam
Objective of Layout Design
Facilitate attainment of product or service quality
Use workers and space efficiently
Avoid bottlenecks
Minimize unnecessary material handling costs
Eliminate unnecessary movement of workers or materials
Minimize production time or customer service time
Design for safety

24. 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

25. The Need for Layout Decisions …
Changes in
environmental
or other legal
requirements
Changes in volume of
output or mix of
products
Changes in methods
and equipment
Morale problems

26. Combination Layouts Product layout
Layout that uses standardized processing operations to achieve smooth, rapid, high-volume flow
E.g. Auto plants, cafeterias
Process layout
Layout that can handle varied processing requirements
E.g. Tool and die shops, university departments
Fixed Position layout
Layout in which the product or project remains stationary, and workers, materials, and equipment are moved as needed
E.g. Building projects, disabled patients at hospitals
Combination Layouts

27. Figure 6.4 | Product Layout
Exam
Figure 6.4 | Product Layout
Raw materials
or customer
Station 1
Station 2
Station 3
Station 4
Finished item
Material
and/or labor
Material
and/or labor
Material
and/or labor
Material
and/or labor
Used for Repetitive or Continuous Processing

28. Advantages of Product Layout
High rate of output
Low unit cost
Labor specialization
Low material handling cost
High utilization of labor and equipment
Established routing and scheduling
Routing accounting and purchasing
Disadvantages of Product Layout
Creates dull, repetitive jobs
Poorly skilled workers may not maintain equipment or quality of output
Fairly inflexible to changes in volume
Highly susceptible to shutdowns
Needs preventive maintenance
Individual incentive plans are impractical

29. A U-Shaped Production Line- Figure 6.61 In 2 3 4 5
Workers 6
Out 10 9 8 7

30. Process Layout- functional Figure 6.7
Exam
Process Layout- functional Figure 6.7
Dept. A
Dept. B
Dept. D
Dept. C
Dept. F
Dept. E
Used for Intermittent processing
Job Shop or Batch Processes

31. Process Layout - work travels to dedicated process centers
Milling
Assembly & Test
Grinding
Drilling
Plating
Process Layout - work travels to dedicated process centers

32. Advantages of Process Layouts
Can handle a variety of processing requirements
Not particularly vulnerable to equipment failures
Equipment used is less costly
Possible to use individual incentive plans
Disadvantages of Process Layouts
In-process inventory costs can be high
Challenging routing and scheduling
Equipment utilization rates are low
Material handling slow and inefficient
Complexities often reduce span of supervision
Special attention for each product or customer
Accounting and purchasing are more involved

33. Layout types: Product or Process Make your pickB B A

34. Process vs Layout types- Match?
Job Shop
Project
Repetitive
Product
Process
Fixed-position

35. Fixed Position Layouts
Layout in which the product or project remains stationary, and workers, materials, and equipment are moved as needed.
Optimal product
Weight, Size, Bulk
Examples
Large construction projects

36. Cellular Manufacturing
Layout in which machines are grouped into a cell that can process items that have similar processing requirements. A product layout is visible inside each cell.
Group Technology
The grouping into part families of items with similar design or manufacturing characteristics. Each cell is assigned a family for production. This limits the production variability inside cells, hence allowing for a product layout.

37. A Group of Parts
Similar manufacturing characters

38. Basic Layout Formats Group Technology Layout Fixed Position Layout
Similar to cellular layout
Fixed Position Layout
e.g. Shipbuilding
Part Family W
Part Family X
Part Family Z
Assemble Y,W
Assemble X,Z
Part Family Y
Final Product

39. Process vs. Cellular Layouts Table 6.3
Exam
Process vs. Cellular Layouts Table 6.3
Dimension
Process
Cellular
Number of moves between departments
many
few
Travel distances
longer
shorter
Travel paths
variable
fixed
Job waiting times
greater
Throughput time
higher
lower
Amount of work in process
Supervision difficulty
Scheduling complexity
Equipment utilization

40. Combination Layout Combination Layouts:
combination of three pure types.
Example: hospital: process and fixed position.

41. Service Layouts Warehouse and storage layouts Retail layouts
Office layouts
Service layouts must be aesthetically pleasing as well as functional

42. 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.

43. Determine Maximum Output
Cycle time is the maximum time allowed at each workstation to complete its set of tasks on a unit.

44. Determine Maximum Output
Example: If a student can answer a multiple choice question in 2 minutes but gets a test with 30 questions and is given only 30 minutes then
OT=30 minutes; D=30
Desired cycle time=1 minute < 2 minutes = Cycle time from the process capability

45. Determine the Minimum Number of Workstations Required: Efficiency
Example: Students can answer a multiple choice question in 2 minutes but given a test with 30 questions and is given only 30 minutes. What is the minimum number of students to collaborate to answer all the questions in the exam?
Total operation (task) time = 60 minutes = 30 x 2 minutes
Operating time=30 minutes
60/3=2 students must collaborate. This Nmin below.

46. Calculate Percent Idle Time
Efficiency = 1 – Percent idle time

47. Precedence Diagram | Figure 6.11
Precedence diagram: Tool used in line balancing to display elemental tasks and sequence requirements
Exam a b c d e
0.1 min.
0.7 min.
1.0 min.
0.5 min.
0.2 min.

48. Example 1: Assembly Line Balancing
Arrange tasks shown in Figure 6.10 into three workstations.
Use a cycle time of 1.0 minute
Assign tasks in order of the most number of followers
Line Balancing Rules- Heuristics
Assign tasks in order of most following tasks.
Count the number of tasks that follow
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.

49. Example 1 Solution a b c d e 1 1.0 0.9 0.2 a, c c none a - 2 b 0.0 3
0.1 min.
0.7 min.
1.0 min.
0.5 min.
0.2 min.
Example 1 Solution
Workstation
Time Remaining
Eligible
Assign Task
Revised Time Remaining
Station Idle Time 1
1.0
0.9
0.2
a, c c
none a - 2 b
0.0 3
0.5
0.3 d e

50. Example 1 w/cycle time 1.3 minsb c d e
0.1 min.
0.7 min.
1.0 min.
0.5 min.
0.2 min.
Example 1 w/cycle time 1.3 mins
Workstation
Time Remaining
Eligible
Assign Task
Revised Time Remaining
Station Idle Time 1
1.3
0.9
0.2
a, c c
none a - 0. 2
1.0 b
0.0 3
0.5
0.3 d e

51. Example 2
0.2
0.2
0.3 a b e
0.8
0.6 c d f g h
1.0
0.4
0.3

52. Solution to Example 2 a b e f d g h c Station 1 Station 2 Station 3

53. Bottleneck Workstation
1 min.
2 min.
30/hr.
Bottleneck

54. Parallel Workstations
1 min.
2 min.
60/hr.
30/hr.
Parallel Workstations

55. The obstacle
The difficulty to forming task bundles that have the same duration.
The difference among the elemental task lengths can not be overcome by grouping task.
Ex: Can you split the tasks with task times {1,2,3,4} into two groups such that total task time in each group is the same?
Ex: Try the above question with {1,2,2,4}
A required technological sequence prohibit the desirable task combinations
Ex: Let the task times be {1,2,3,4} but suppose that the task with time 1 can only done after the task with time 4 is completed. Moreover task with time 3 can only done after the task with time 2 is completed. How to group?

56. Designing Process Layouts Information Requirements
List of departments- easy
Shape requirements
Projection of work flows- easy?
One way vs. two way: Packaging and final assembly.
Distance between locations- easy
One way vs. two way: Conveyors, Elevators.
Amount of money to be invested- easy?
List of special considerations- easy?
Technical, Environmental requirements

57. Example 3: Locate 3 departments to 3 sites
Distances: in meters
Work Flow: in kilos
From\To A B C - 20 40 30
From\To 1 2 3 - 10 80 20 30 90 70

58. Ranking locations & Departments
Example 3
Mutual flow:
Closeness graph:
From\To 1 2 3 - 30
170
100
Ranking locations & Departments 1 2 3

59. Example 3: Interdepartmental Work Flows for Assigned Departments1 3 2 30
170
100 A B C
From\To A B C - 20 40 30
Figure 6.13

60. Designing Process Layouts
Create Layout Alternatives
Find the one which minimizes transportation costs and distance traveled

61. Closeness Rating: multiple criteria
Common use of facilities/equip
Sharing of people
Flows and sequences
Communication considerations
Process
The human factor

62. Closeness Rating
Solution P 250

63. Practice Questions True/False
Job-Shop systems have a lower unit cost than continuous systems do because continuous systems use costly specialized equipment.
In cellular manufacturing, machines and equipment are grouped by type (e.g., all grinders are grouped into a cell).

64. Practice Questions
2. Which type of processing system tends to produce the most product variety?
A) Assembly
B) Job-Shop
C) Batch
D) Continuous
E) Project

65. Practice Questions
3. A production line is to be designed for a job with three tasks. The task times are 0.3 minutes, 1.4 minutes, and 0.7 minutes. The minimum cycle time in minutes, is:
A) 0.3
B) 0.7
C) 1.4
D) 2.4
E) 0.8

66. Functional Layout Gear cutting Mill Drill Lathes Grind Heat treat
Assembly
111
333
222
444
1111
2222
3333
44444
333333
22222

67. Cellular Manufacturing Layout
-1111
- 2222
Assembly
- 3333
- 4444
Lathe
Mill
Drill
Heat
treat
Gear
cut
Grind

68. Linear Programming: Very useful technique.
Chapter 6 Supplement
Linear Programming:
Very useful technique.

69. 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.

70. 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.