Chapter 6

Process selection and Facility Layout

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 Learning Objectives
2

1. Explain the strategic importance of process selection

2. Explain the influence that process selection has on an organisation

3. Describe the basic processing types

4. Discuss automated approaches to processing

5. Explain the need for management of technology

6. List some reasons for redesign of layouts

7. Describe the basic layout types

8. List the main advantages and disadvantages of product layouts and

process layouts.

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3 Introduction
Most basic decisions managers make as they have long term sequences
for business organisation are;

a. Product and service choice

b. Capacity planning

c. Process selection

d. Layout of facilities

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 Process
4 Refers to deciding on the way production of goods or service will be
organised.

Major implications for;

1. Capacity planning

2. Layout of facilities

3. Equipment

4. Design of work systems

This chapter is about;

Process selection (convert input into output) core of operation management

facility layout (arrangement of workplace)

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5 Technology
Technology and innovation have major influence on business org.
Technological innovations- the discovery and development of new or
improved products, services or processes for producing or proving them.
Technology refers to the application of scientific discoveries to the
development and improvement of products and services and operation
process. Involves factors such as;
1. Knowledge
2. Materials
3. Methods
4. Equipment
High Technology- refers to the most advance and developed equipment and
methods

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6 Technology
Three (3) types of technology

1. Product and service technology(discovery and development of new products and services)

2. Process technology (methods, procedures, equipment to develop new knowledge and

translate into commercial applications)

3. Information technology (science and use of computers and other electronic equipment to

store, process and send information)

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7 Technology as a Competitive Advantage
Technological innovation in products and services
Quick to the market
Increase market share (cell phones)
Increase quality
Lower cost
Increase productivity
Expanding process capabilities (online banking)
Technology acquisition
Substantial risks
Understand what technology can and cannot do
Initial costs
Human consideration (timing, training, safety, job loss)

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8 Process Selection
Three primary questions bear on process selection

1. How much variety in products or services will the system need to handle?

2. What degree of equipment flexibility will be needed?

3. What is the expected volume of output?

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9 Process types
There are five (5) basic process types;

1. Job shop

2. Batch

3. Repetitive

4. Continuous

5. Project

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10 1. Job Shop
Relatively small scale

Low volume of high variety good or services will be needed

Processing is intermittent

Small job with different processing requirement

High flexibility using general purpose equipments and skills

E.g. Vets clinic variety of animals and variety of injuries and diseases

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11 2. Batch
Moderate volume of goods and services

Moderate variety in product or services

Equipment need not be flexible as job shop

E.g. bakeries, movies theatres, airlines, paint, ice cream,

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12 3. Repetitive
High volumes of standardised goods or services

Repetitive processing is needed

Slight flexibility of equipment needed

Skills of workers is generally low

E.g. production line, assembly line

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13 4. Continuous
Very high volume of nondiscrete

Highly standardised output is desirable

Continuous system

No variety in output

No need for equipment flexibility

Equipment is highly standardised

E.g. petroleum, steel, sugar, flour, salt, electricity, internet

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14 5. Project
Work is non routine

Unique set of objectives

Limited time frame

E.g. simple to complex process

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15 Product and Service Profiling
Linking key product or service requirements to process capability

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16 Automation
Machinery that has sensing and control devices that enable it to operate

automatically

Three kinds of automation

1. Fix automation produces high volume @low cost

2. Programmable controlled b computer program

3. Flexible customised products

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17 Facilities Layout

Layout

configuration of departments, work centres and equipments.

Emphasises on movement of work (customers/materials) through the system

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18 Layout decisions

1. Require substantial investments of money and effort

2. Involves long term commitments

3. Significant impact on the cost and efficient operations

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19 Objectives of layout designs
1. Facilitate attainment of product/service quality

2. Utilise workers and space efficiently

3. Avoid bottleneck

4. Minimise material handling costs

5. Eliminate unnecessary movements of workers or materials

6. Minimize production time or customer service time

7. Design for safety

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20 Types of layout
1. Product- conducive to repetitive process

2. Process used for intermittent processing

3. Fixed position when project require layout

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21 1. Product Layout
Used to achieve a smooth and rapid flow of large volumes of goods or

customers through a system.

High standardised goods or services

Production line

Assembly line

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22 Advantages of product layout
1. High rate of output

2. Low unit cost due to high volume

3. Labour specialisation which reduces training cost and time

4. Low material handling cost per unit

5. A high utilisation of labour and equipment

6. Do not require much attention once the system is in operation

7. Fairly routine accounting, purchasing and inventory control

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23 3. Fixed Position Layout

Layout in which the product or project remains stationary and workers,

materials and equipments are moved as needed.

Weight, size, bulk and other factors makes the layout difficult to move

E.g. large construction projects (building, power plants, dams) ship building,

production of large aircraft, space mission rockets

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24 Combination Layouts

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25 Service Layout

Use process layout because of variability

Warehouse and Storage Layout

Retail Layout

Office Layout

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