Operations Management 5

Process Selection and Facility Layout

(Stevenson Ch 6)

Learning Objectives

6-2

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.

Learning Objectives

6-3

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.

Introduction
Process selection
Deciding on the way production of goods or
services will be organized

Major implications
Capacity planning
Layout of facilities
Equipment
Design of work systems

6-4

Process Selection and System Design

Forecasting

Capacity
Planning

Product and
Service Design

Technological
Change
6-5

Facilities and
Equipment

Layout
Process
Selection

Work
Design

Process Strategy
Key aspects of process strategy

6-6

Capital intensive equipment/labor

Process flexibility

Technology

Adjust to changes

Design

Volume

technology

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.
6-7

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
6-8

Technology Competitive Advantage

Innovations in
Products and services
Cell phones
Wireless computing

Processing technology
Increasing productivity
Increasing quality
Lowering costs

6-9

Technology Acquisition
Technology can have benefits but
Technology risks include:
What technology will and will not do
Technical issues
Economic issues

6-10

Initial costs, space, cash flow, maintenance

Consultants and/or skilled employees
Integration cost, time resources
Training, safety, job loss

Process Selection
Variety

Batch

How much

Flexibility

What degree

Volume

Job Shop

Repetitive

Expected output

Continuous

6-11

Process Types
Job shop
Small scale, low volume and high variety
Flexible, general purpose machines, high skill

Batch
Moderate volume

Repetitive/assembly line
High volumes of standardized goods or services

Continuous
Very high volumes of non-discrete goods
6-12

Product and Service Processes

Low

Volume

High

Process Type

Job Shop

Appliance
repair,
Emergency
room

Ineffective

Commercial
baking

Batch

Classroom
Lecture
Automotive
assembly

Repetitive

Automatic
carwash

Continuous
(flow)

Ineffective

Steel Production
Water purification

6-13

Product Process Matrix

Dimension

Job Shop

Batch

Repetitive

Continuous

Job variety

Very high

Moderate

Low

Very low

Process
flexibility

Very high

Moderate

Low

Very low

Unit cost

Very High

Moderate

Low

Very low

Volume of
output

Very low

Low

High

Very high

6-14

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

6-15

Range of products or services

Expected order sizes
Pricing strategies
Expected schedule changes
Order winning requirements

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

6-16

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

6-17

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
6-18

Objective of Layout Design

1. Facilitate attainment of product or service
quality
2. Use workers and space efficiently
3. Avoid bottlenecks
4. Minimize unnecessary material handling costs
5. Eliminate unnecessary movement of workers or
materials
6. Minimize production time or customer service
time
7. Design for safety
6-19

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

6-20

The Need for Layout Decisions

Inefficient operations
For Example:

High Cost
Bottlenecks

Changes in the design

of products or services

Accidents
The introduction of new
products or services

Safety hazards
6-21

The Need for Layout Design (Contd)

Changes in
environmental
or other legal
requirements

Changes in volume of
output or mix of
products
Morale problems

Changes in methods
and equipment

6-22

Basic Layout Types

Product layouts
Process layouts
Fixed-Position layout
Combination layouts

6-23

Basic Layout Types

Product layout

Layout that uses standardized processing

operations to achieve smooth, rapid, high-volume
flow for repetitive processing

Process layout

Layout that can handle varied processing

requirements for non repetitive processing

Fixed Position layout

6-24

Layout in which the product or project remains

stationary, and workers, materials, and
equipment are moved as needed airplane, ship

Product Layout
Product Layout
(sequential)
Raw
materials
or customer
Material
and/or
labor

Station
1
Material
and/or
labor

Station
2
Material
and/or
labor

Station
3

Station
4

Material
and/or
labor

Used for Repetitive or Continuous Processing

6-25

Finished
item

Advantages of Product Layout

6-26

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

6-27

A U-Shaped Production Line

In

4
5

Workers

6
Out

6-28

10

Process Layout
Process Layout
(functional)
Dept. A

Dept. C

Dept. E

Dept. B

Dept. D

Dept. F

Used for Intermittent processing

Job Shop or Batch Processes

6-29

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

6-30

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

6-31

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

6-32

Cellular Layouts
Cellular Production

Layout in which machines are grouped into a

cell that can process items that have similar
processing requirements

Group Technology

6-33

The grouping into part families of items with

similar design or manufacturing characteristics

Each cell becomes a miniature product

layout

Functional vs. Cellular Layouts

Dimension

Functional

Cellular

Number of moves
between departments

many

few

Travel distances

longer

shorter

Travel paths

variable

fixed

Job waiting times

greater

shorter

Throughput time

higher

lower

Amount of work in
process

higher

lower

Supervision difficulty

higher

lower

Scheduling complexity

higher

lower

Equipment utilization

lower

higher

6-34

Service Layouts

6-35

Warehouse and storage layouts

Retail layouts
Office layouts
Service layouts must be aesthetically
pleasing as well as functional

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.

6-36

Cycle Time

Cycle time is the maximum time

allowed at each workstation to
complete its set of tasks on a unit.

6-37

Determine Maximum Output

OT
Output rate =
CT
OT operating time per day
D = Desired output rate

6-38

OT
CT = cycle time =
D

Determine the Minimum Number

of Workstations Required

N=

( t)
CT

t = sum of

6-39

task time

Precedence Diagram
Precedence diagram: Tool used in line balancing to display
elemental tasks and sequence requirements
0.1 min.

1.0 min.

b
c

0.7 min.

6-40

A Simple Precedence
Diagram

d
0.5 min.

e
0.2 min.

Example 1: Assembly Line Balancing

Arrange tasks shown in earlier slide into
three workstations.

6-41

Use a cycle time of 1.0 minute

Assign tasks in order of the most number of
followers

Example 1 Solution

Eligible

Revised
Assign Time
Task
Remaining

1.0
0.9
0.2

a, c
c
none

a
c
-

0.9
0.2

1.0

0.0

1.0
0.5
0.3

d
e
-

d
e
-

0.5
0.3

Time
Workstation Remaining
1

Station
Idle Time

0.2
0.0
0.3
0.5

6-42

Calculate Percent Idle Time

Idle time per cycle
Percent idle time =
(N)(CT)

Efficiency = 1 Percent idle time

6-43

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.

6-44

Positional weight is the sum of each tasks time

and the times of all following tasks.

Example 2

6-45

0.2

0.2

0.3

0.8

0.6

1.0

0.4

0.3

Solution to Example 2
Station 1

Station 2

Station 3

e
f

6-46

Station 4

Bottleneck Workstation

1 min.

30/hr.

1 min.

Bottleneck

6-47

30/hr.

2 min.

30/hr.

1 min.

30/hr.

Parallel Workstations

30/hr.
1 min.

60/hr.

2 min.

30/hr.

1 min.

1 min.
30/hr.
2 min.

Parallel Workstations

6-48

30/hr.

60/hr.

Designing Process Layouts

Information Requirements:
1. List of departments
2. Projection of work flows
3. Distance between locations
4. Amount of money to be invested
5. List of special considerations
6. Location of key utilities

6-49

Example 3: Interdepartmental Work

Flows
for Assigned Departments
30
1

A
6-50

170

100

Process Layout
Milling
Assembly
& Test

Grinding

Drilling

Plating

Process Layout - work travels

to dedicated process centers

6-51

Functional Layout
222
444

Mill

111 333
111
333

6-52

Lathes

222
111
444

222

Drill

Grind

3333

1111 2222

Heat
treat

Assembly
111

Gear
cutting

111
444

Cellular Manufacturing Layout

Mill

Heat
treat

Gear
cut

-1111

222222222

Mill

Drill

Heat
treat

Grind - 2222

3333333333

Lathe

Mill

Heat
treat

Grind - 3333

Drill

Gear
cut

44444444444444

6-53

Drill

Mill

- 4444

Assembly

-1111

Lathe