1. Process Selection and Facility Layout6
Process Selection and Facility Layout

2. Learning Objectives
Explain the strategic importance of process selection.
Describe the basic processing types.
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.

3. Introduction Process selection Major implications
Deciding on the way production of goods or services will be organized
Major implications
Capacity planning
Layout of facilities
Equipment
Design of work systems

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

5. Process Strategy Key aspects of process strategy
Capital intensive – equipment/labor
Process flexibility/Adjust to changes
Design
Volume
Technology

6. Process Selection Variety Flexibility Volume How much What degree
Expected output

7. Process Types Job shop Batch Repetitive/assembly line Continuous
Small scale
Batch
Moderate volume
Repetitive/assembly line
High volumes of standardized goods or services
Continuous
Very high volumes of non-discrete goods

8. Product – Process Matrix

9. Process Types
Job Shop:  It is used when a low volume of high-variety goods or services will be needed. Processing is intermittent; work includes small jobs, each with somewhat different processing requirements. High flexibility using general-purpose equipment and skilled workers are important characteristics of a job shop. A manufacturing example of a job shop is a tool and die shop that is able to produce one-of-a-kind tools. A service example is a Doctor’s office.

10. Process Types
Batch:   used when a moderate volume of goods or services is desired, and it can handle a moderate variety in products or services. The equipment need not be as flexible as in a job shop, but processing is still intermittent.
Manufacturing examples: cakes.
Service examples: airline flight, classroom lectures.

11. Process Types
Repetitive: used when higher volumes of more standardized goods or services are needed. The standardized output means only slight flexibility of equipment is needed. Skill of workers is generally low.
Examples of this type of system include production lines and assembly lines. Familiar products made by these systems include automobiles, television sets.
An example of a service system is an automatic carwash.
You are likely to see only minor variations in the product or service being produced using the same process and equipment

12. Process Types
Continuous.    Used for a very high volume of non-discrete, highly standardized output.
These systems have almost no variety in output and, hence, no need for equipment flexibility. Workers' skill requirements can range from low to high, depending on the complexity of the system and the expertise workers need. Generally, if equipment is highly specialized, worker skills can be lower.
Examples of non-discrete products made in continuous systems include petroleum products and steel. Continuous services include supplying electricity and water.
Key difference between Repetitive and Continuous is that in Repetitive systems you may experience minor variations in product or service, whereas in Continuous system you will see not almost no variation.

13. Facilities Layout
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

14. 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

15. Importance of Layout Decisions
Requires substantial investments of money and effort
Involves long-term commitments
Has significant impact on cost and efficiency of short-term operations

16. 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

17. The Need for Layout Design (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

18. Basic Layout Types Product layouts Process layouts
Fixed-Position layout
Combination layouts

19. Basic Layout Types Product layout Process layout Fixed Position 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

20. 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

21. A U-Shaped Product Line1 2 3 4 5 6 7 8 9 10 In
Out
Workers

22. 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

23. 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

24. Used for Intermittent processing Job Shop or Batch Processes
Process Layout
Process Layout
(functional)
Dept. A
Dept. B
Dept. D
Dept. C
Dept. F
Dept. E
Used for Intermittent processing
Job Shop or Batch Processes

25. 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

26. 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

27. Fixed Position Layouts
Fixed Position Layout: Layout in which the product or project remains stationary, and workers, materials, and equipment are moved as needed.
Nature of the product dictates this type of layout
Weight
Size
Bulk
Large construction projects

28. Cellular Layouts Cellular Production Group Technology
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

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

30. Service Layouts
Service layouts can often be categorized as product, process, or fixed-position layouts.
In a fixed-position service layout (e.g., appliance repair, roofing, home remodeling, copier service), materials, labor, and equipment are brought to the customer's residence or office).

31. Service Layouts
Process layouts are common in services due mainly to the high degree of variety in customer processing requirements. Examples include hospitals, supermarkets and department stores, vehicle repair centers, and banks.
Product layout can be used if the service is organized sequentially, with all customers or work following the same or similar sequence, as it is in a car wash.

32. Service Layout Design
Important factors in service layout design include:
Target customer and desired customer experience
Customer attitude and image
Frequency of orders
High level of customer contact
The mixture of the physical items, sensual benefits, and psychological benefits.
Interesting point: service layout design is not generally focused on cost minimization and product flow.

33. 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.
Line Balancing is the task of deciding how to assign work to specific workstations to achieve maximum utilization of labor and equipment

34. Cycle Time Cycle time is the maximum time
allowed at each workstation to
complete its set of tasks on a unit.

35. Determine Maximum Output

36. Cycle Time
As a general rule, the Cycle Time is determined by the desired output.
A desired output rate is selected, and the Cycle time is computed.

37. Determine the Minimum Number of Workstations Required

38. Precedence Diagram a b c d e
Precedence diagram: Tool used in line balancing to display elemental tasks and sequence requirements
A Simple Precedence
Diagram a b c d e
0.1 min.
0.7 min.
1.0 min.
0.5 min.
0.2 min.

39. Example 1: Assembly Line Balancing

40. 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, b
none a c - 2 b
0.0 3
0.5
0.3 d e
Total idle time = = 0.5

41. Example 1: Assembly Line Balancing

42. Calculate Percent Idle Time & Efficiency
Efficiency = 1 – Percent idle time

43. Example 2

44. Example 2
1. Draw a precedence diagram

45. Example 2

46. Example 2

47. Example 2
Station 1
Station 2
Station 3
Station 4 a b e f d g h c

48. Example 2

49. Bottleneck Workstation
1 min.
2 min.
60/hr.
30/hr.
Bottleneck

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