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

2. 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.

3. 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.

4. 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

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

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

7. Technology
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.

8. Kinds of Technology
Operations management is primarily concerned with three kinds of technology:
Product and service technology
Process technology
Information technology
All three have a major impact on:
Costs
Productivity
Competitiveness

9. Technology Competitive Advantage
Innovations in
Products and services
Cell phones
PDAs
Wireless computing
Processing technology
Increasing productivity
Increasing quality
Lowering costs

10. Technology Acquisition
Technology can have benefits but …
Technology risks include:
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

11. Process Selection Variety Flexibility Volume How much What degree
Expected output
Batch
Job Shop
Repetitive
Continuous

12. 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

13. Product and Service Processes
Figure 6.2
Process Type
Job Shop
Appliance repair Emergency room
Ineffective
Batch
Commercial baking Classroom Lecture
Repetitive
Automotive assembly Automatic carwash
Continuous (flow)
Steel Production Water purification

14. Product – Process Matrix
Figure 6.2 (cont’d)
Dimension
Job variety
Very High
Moderate
Low
Very low
Process flexibility
Unit cost
Volume of output
High

15. Product and Process Profiling
Process selection can involve substantial investment in
Equipment
Layout of facilities
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

16. Automation
Automation: Machinery that has sensing and control devices that enables it to operate
Fixed automation
Programmable automation

17. Automation Computer-aided design and manufacturing systems (CAD/CAM)
Numerically controlled (NC) machines
Robot
Manufacturing cell
Flexible manufacturing systems(FMS)
Computer-integrated manufacturing (CIM)

18. 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

19. 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

20. 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

21. 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

22. 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

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

24. 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

25. Product Layout Figure 6.4 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

26. 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

27. 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

28. A U-Shaped Production Line
Figure 6.6 1 2 3 4 5 6 7 8 9 10 In
Out
Workers

29. Used for Intermittent processing Job Shop or Batch Processes
Process Layout
Figure 6.7
Process Layout
(functional)
Dept. A
Dept. B
Dept. D
Dept. C
Dept. F
Dept. E
Used for Intermittent processing
Job Shop or Batch Processes

30. Used for Repetitive Processing Repetitive or Continuous Processes
Product Layout
Figure 6.7 (cont’d)
Product Layout
(sequential)
Work
Station 1
Station 2
Station 3
Used for Repetitive Processing
Repetitive or Continuous Processes

31. 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

32. 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. 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

34. 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

35. Functional vs. Cellular Layouts
Table 6.3
Dimension
Functional
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

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

37. 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.

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

39. Determine Maximum Output

40. Determine the Minimum Number of Workstations Required

41. Precedence Diagram a b c d e
Figure 6.11
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.

42. 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

43. 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

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

45. Line Balancing Rules Some Heuristic (intuitive) Rules:
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.

46. 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

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

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

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

50. Designing Process Layouts
Information Requirements:
List of departments
Projection of work flows
Distance between locations
Amount of money to be invested
List of special considerations
Location of key utilities

51. Example 3: Interdepartmental Work Flows for Assigned Departments
Figure 6.13 1 3 2 30
170
100 A B C

52. PowerPoint Author’s note:
The following three slides are not in the 9e text, but I like to use them for alternate examples.

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

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

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