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6 Process Selection and Facility Layout

Learning Objectives:

6- 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.

Learning Objectives:

6- 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.


6- 4 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 Introduction

Process Selection and System Design:

6- 5 Forecasting Product and Service Design Technological Change Capacity Planning Process Selection Facilities and Equipment Layout Work Design Figure 6.1 Process Selection and System Design

Process Strategy:

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


6- 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.

Kinds of Technology:

6- 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

Technology Competitive Advantage:

6- 9 Technology Competitive Advantage Innovations in Products and services Cell phones PDAs Wireless computing Processing technology Increasing productivity Increasing quality Lowering costs

Technology Acquisition:

6- 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

Process Selection:

6- 11 Variety How much Flexibility What degree Volume Expected output Job Shop Batch Repetitive Continuous Process Selection

Process Types:

6- 12 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 Process Types

Product and Service Processes:

6- 13 Process Type Job Shop Appliance repair Emergency room Ineffective Batch Commercial baking Classroom Lecture Repetitive Automotive assembly Automatic carwash Continuous (flow) Ineffective Steel Production Water purification Figure 6.2 Product and Service Processes

Product – Process Matrix:

6- 14 Dimension 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 High Low High Very low Figure 6.2 (cont’d) Product – Process Matrix

Product and Process Profiling:

6- 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


6- 16 Automation : Machinery that has sensing and control devices that enables it to operate Fixed automation Programmable automation Automation


6- 17 Computer-aided design and manufacturing systems (CAD/CAM) Numerically controlled (NC) machines Robot Manufacturing cell Flexible manufacturing systems(FMS) Computer-integrated manufacturing (CIM) Automation

Facilities Layout:

6- 18 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 Facilities Layout

Objective of Layout Design:

6- 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

Importance of Layout Decisions:

6- 20 Requires substantial investments of money and effort Involves long-term commitments Has significant impact on cost and efficiency of short-term operations Importance of Layout Decisions

The Need for Layout Decisions:

6- 21 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 The Need for Layout Decisions

The Need for Layout Design (Cont’d):

6- 22 Changes in environmental or other legal requirements Changes in volume of output or mix of products Changes in methods and equipment Morale problems The Need for Layout Design (Cont’d)

Basic Layout Types:

6- 23 Product layouts Process layouts Fixed-Position layout Combination layouts Basic Layout Types

Basic Layout Types:

6- 24 Product 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 Basic Layout Types

Product Layout:

6- 25 Raw materials or customer Finished item Station 2 Station 3 Station 4 Material and/or labor Station 1 Material and/or labor Material and/or labor Material and/or labor Used for Repetitive or Continuous Processing Figure 6.4 Product Layout

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 Advantages of Product Layout

Disadvantages of Product Layout:

6- 27 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 Disadvantages of Product Layout

A U-Shaped Production Line:

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

Process Layout:

6- 29 Dept. A Dept. B Dept. D Dept. C Dept. F Dept. E Used for Intermittent processing Job Shop or Batch Processes Process Layout (functional) Figure 6.7 Process Layout

Product Layout:

6- 30 Work Station 1 Work Station 2 Work Station 3 Figure 6.7 (cont’d) Product Layout (sequential) Used for Repetitive Processing Repetitive or Continuous Processes Product Layout

Advantages of Process Layouts:

6- 31 Can handle a variety of processing requirements Not particularly vulnerable to equipment failures Equipment used is less costly Possible to use individual incentive plans Advantages of Process Layouts

Disadvantages of Process Layouts:

6- 32 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 Disadvantages of Process Layouts

Fixed Position Layouts:

6- 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

Cellular Layouts:

6- 34 Cellular Production 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 Cellular Layouts

Functional vs. Cellular Layouts:

6- 35 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 Table 6.3 Functional vs. Cellular Layouts

Service Layouts:

6- 36 Warehouse and storage layouts Retail layouts Office layouts Service layouts must be aesthetically pleasing as well as functional Service Layouts

Design Product Layouts: Line Balancing:

6- 37 Line Balancing is the process of assigning tasks to workstations in such a way that the workstations have approximately equal time requirements. Design Product Layouts: Line Balancing

Cycle Time:

6- 38 Cycle time is the maximum time allowed at each workstation to complete its set of tasks on a unit. Cycle Time

Determine Maximum Output:

6- 39 Determine Maximum Output

Determine the Minimum Number of Workstations Required:

6- 40 Determine the Minimum Number of Workstations Required

Precedence Diagram:

6- 41 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. Figure 6.11 Precedence Diagram

Example 1: Assembly Line Balancing:

6- 42 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 Example 1: Assembly Line Balancing

Example 1 Solution:

6- 43 Workstation Time Remaining Eligible Assign Task Revised Time Remaining Station Idle Time 1 1.0 0.9 0.2 a, c c none a c - 0.9 0.2 0.2 2 1.0 b b 0.0 0.0 3 1.0 0.5 0.3 d e - d e - 0.5 0.3 0.3 0.5 Example 1 Solution

Calculate Percent Idle Time:

6- 44 Efficiency = 1 – Percent idle time Calculate Percent Idle Time

Line Balancing Rules:

6- 45 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. Some Heuristic (intuitive) Rules : Line Balancing Rules

Example 2:

6- 46 c d a b e f g h 0.2 0.2 0.3 0.8 0.6 1.0 0.4 0.3 Example 2

Solution to Example 2:

6- 47 Station 1 Station 2 Station 3 Station 4 a b e f d g h c Solution to Example 2

Bottleneck Workstation:

6- 48 1 min. 2 min. 1 min. 1 min. 30/hr. 30/hr. 30/hr. 30/hr. Bottleneck Bottleneck Workstation

Parallel Workstations:

6- 49 Parallel Workstations 1 min. 2 min. 1 min. 1 min. 60/hr. 30/hr. 30/hr. 60/hr. 2 min. 30/hr. 30/hr. Parallel Workstations

Designing Process Layouts:

6- 50 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 Designing Process Layouts

Example 3: Interdepartmental Work Flows for Assigned Departments:

6- 51 1 3 2 30 170 100 A B C Figure 6.13 Example 3: Interdepartmental Work Flows for Assigned Departments

PowerPoint Presentation:

6- 52 PowerPoint Author’s note: The following three slides are not in the 9e text, but I like to use them for alternate examples.

Process Layout:

6- 53 Process Layout - work travels to dedicated process centers Milling Assembly & Test Grinding Drilling Plating Process Layout

Functional Layout:

6- 54 Gear cutting Mill Drill Lathes Grind Heat treat Assembly 111 333 222 444 222 111 444 111 333 1111 2222 222 3333 111 444 111 333333333 44444 333333 22222 Functional Layout

Cellular Manufacturing Layout:

6- 55 -1111 -1111 222222222 - 2222 Assembly 3333333333 - 3333 44444444444444 - 4444 Lathe Lathe Mill Mill Mill Mill Drill Drill Drill Heat treat Heat treat Heat treat Gear cut Gear cut Grind Grind Cellular Manufacturing Layout

Video: Process Design:

6- 56 Video: Process Design

Video: Process Implementation:

6- 57 Video: Process Implementation

Video: Process Mapping:

6- 58 Video: Process Mapping

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