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2007 University of St. Thomas, Opus College of Business
Debasish N. Mallick, Ph.D.Spring 2012
4/26/2012
Introduction to
Process Design & Facility Layout
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Today
Operations Management
Design of Operations Supply Chain Management
Quality Management
Service design
Process Design
Facilities Planning
Product design
Forecasting
Aggregate Planning
Inventory Management
MRP, ERP Systems
JIT Manufacturing
Project Management
Operations Context
Ethical Issues
Operations Strategy
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Agenda
What is a process?
Why processes?
Process Analysis
Business Process Reengineering (BPR)
Process Structure
Facility Layout
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What is a process?
Tasks, Flow and Storage
Beginning & End
Input & Output
Structure for Action
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Process-View of Business
Marketing Operations Finance
CEO
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Business Processes
Product Development Manufacturing/Service
Customer Acquisition
Integrated Logistics
Order Management
Post-Sales Service
Performance Monitoring
Asset Management Personal Management
Planning/Resource Allocation
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Manufacturing: A Conversion Process
Extraction
Bulk Form
Discrete Parts
Assembly
System Integration
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Types of Operations
Process Operations
Discrete Operation
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Vertical Integration
Components(Microprocessor)
Assembly(Motherboard)
System Integration
(PC)
Backward
integration
Forwardintegration
In-house
processes
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Process Design Considerations
Process Flow
Process Structure
Facility Layout
Choice of Technology
Tooling & Equipment Job Design
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Process Design Tools
Assembly Drawing
Product Structure Tree
Bill of Material
Assembly Chart
Route Sheets
Process Flow Chart
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Assembly Drawing
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Product Structure Tree
Main Piece Handle Facing (2) Rubber Surface(2)
Paddle
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Bill of Materials
Paddle
Main Piece 1
Handle Facing 2
Rubber Surface 2
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Process Mapping Symbols
Task
Flow
Storage
Inspection
Delay
Source: SME
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Assembly Chart
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Route Sheet
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Process Mapping Symbols (Updated)
Task
Flow
Storage
Decision
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Process Flow Chart
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Process Performance
Setup time: the time required to prepare a
machine/workstation to make a particular unit
Run time: the time required to produce a batch of
parts/units (time required to produce each unit x
batch size)
Operation time: Setup time + Run time
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Example
Consider a cereal-boxing machine that produces 30 boxes
per minute. The machine can handle two box sizes (16 oz
and 12 oz). It takes 30 minutes to switch from 16-oz boxes to
12-oz boxes.
How many minutes does it take to a batch of 10,000 12-oz
boxes? What is the operation time?
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Process Performance
Throughput time: the average time for a unit to
move through the system (includes time waiting in
queue).
Cycle Time: the average time between
completions of two successive units.
Throughput rate: 1 Cycle time
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A Single Stage Process
What is the Cycle Time?
What is the Throughput Rate?
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A Multistage Process
What is the Throughput Time?
What is the Cycle Time?
What is the Throughput Rate?
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Process Terminologies
Blocking: the activities in a stage must stop
because there is no place to deposit the item just
completed
Starving: the activities in a stage must stop
because there is no work
Buffer: a storage area between stages where the
output of a stage is placed prior to being used in a
downstream stage
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A Multistage Process with Buffer
What is the Throughput Time?
What is the Cycle Time?
What is the Throughput Rate?
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Process Performance
Work-in-process (WIP): Semi-finished or materials
being worked on
Littles Law:
Average WIP = Throughput Time x Throughput Rate
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Questions to Ask in PFA
What does the customer need? What operations are necessary? Can
some operations be eliminated, combined, or simplified?
Who is performing the job? Can the operation be redesigned to use
less skill or less labor? Can operations be combined to enrich jobs?
Where is each operation conducted? Can layout be improved?
When is each operation performed? Is there excessive delay or
storage? Are some operations creating bottlenecks?
How is the operation done? Can better methods, procedures, or
equipment be used?
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BPR Philosophy
Does the reengineering consultant see the glass
as half full or half empty?
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Process Structure
Project
Job shop
Batch process Line flow
Continuous process
Hybrid
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Project
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Job Shop
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Batch Process
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Line Flow
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Continuous process
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Issues
How will you compete in the market?
How will you manage your business?
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Process Structure and Competition
Types Cost Quality Flexibility Speed Service
Project
Job Shop
Batch
Line Flow
Continuous
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Types Technology Labor Materials Planning Focus
Project
Job Shop
Batch
Line Flow
Continuous
Process Structure and Strategy
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(1) (2) (3) (4) (5)One of a kind Low volume, Multiple Few major High volumeproducts, made low products products, highto customer standardization moderate higher standardization,
order volume volume commodityproducts
ProcessCharacteristics
(1)
Complex and highlycustomized process,unique sequence oftasks
(2)
Jumbled flows,complex work withmany exceptions
(3)
Disconnected lineflows, moderatelycomplex work
(4)
Connected line,routine work
(5)
Continuousflows, highlyrepetitive work
LessComplexity,
LessDivergence,MoreLineFlows
Less Customization and Higher Volume
Product Design
Continuousprocess
Projectprocess
Lineprocess
Batchprocess
Jobprocess
Masscustomizers
Cellularmanufacturers
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Layout Planning
Layout planning determines where departments
and workstations should be located for a
smooth-flowing and efficient system.
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Importance of Layout Planning
Flow of Materials
Flow of Information
Equipment Utilization
Labor Utilization
Employee Morale
Customer Perception
ff
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Factors Affecting Layout Design
Output
Flexibility
Processing Requirements
Materials Handling
Maintenance Requirement
Space Availability
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Layout Types
Fixed-Position Layout
Process Layout
Product Layout
Cellular Layout
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Process (Functional) Layout
Admissions
Cutting Drilling
Radiology
Grinding Finishing
Surgery Recovery
Lower Florida Keys Health System
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Lower Florida Keys Health System
First Floor
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Process Layout :Advantages
General purpose
Less Capital Intensive
Less vulnerable to changes
Equipment utilization
Employee supervision
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Process Layout: Disadvantages
Slower processing rate
Lost production time for setups
Higher inventory costs
Longer manufacturing lead-times
Difficulty in material handling
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Product (Line) Layout
Product family A
Product family B
A bl Li G l M t
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Assembly Line: General Motors
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Product Layout: Advantages
Faster processing rates
Lower inventory
Infrequent setups
Easier planning and control
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Product Layout: Disadvantages
Capital Intensive
Risk of layout redesign
Less flexibility
Low utilization at low volume
C ll l (G ) L t
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Cellular (Group) Layout
Dermatology
Product
family A
Product
family B
Orthopedics
Product
family CProduct
family D
Family
practice
Coronary
bypass
C ll l A bl t D ll C t
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Cellular Assembly at Dell Computer
P L t D i
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Process Layout Design
Space Requirements
Available Space
Closeness Factor
Block Plan
Detailed Layout
E l P L t D i
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Example: Process Layout Design
Longhorn Machine produces a variety of small metal parts usinggeneral-purpose equipment. A Full shift of 26 workers and asecond shift of 6 workers operate its 32 machines. Longhorn hasgrouped its processes into six different departments.
The space requirements of each department are known.
The level of materials movement in number of trips betweeneach pair of departments is also known.
Longhorns available space is 90 ft by 60 ft. Develop a layout forminimizing the material handling.
Source: Krajewski and Ritzman (1996)
The space requirements of each department are listed
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p q pbelow:
Department Space Required (Square ft)
1. Burr and Grinding 1000
2. NC Equipment 950
3. Shipping and Receiving 750
4. Lathes and Drills 1200
5. Tool crib 800
6. Inspection 700
TOTAL 5400
A measure of materials movement in number of trips between each
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A measure of materials movement in number of trips between each
pair of departments is presented in the table below:
Department 1 2 3 4 5 6
1. Burr and Grinding 20 20 80
2. NC Equipment 10 75
3. Shipping and Receiving 15 90
4. Lathes and Drills 70
5. Tool crib
6. Inspection
D l & E l t Bl k Pl #1
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Develop & Evaluate Block Plan #1
2 4 3
6 5 1
Department Load Distance Load-Distance
1,2 20
1,4 20
1,6 80
2,3 10
2,5 75
3,4 15
3,6 90
4,5 70
Total
Prod ct La o t Design
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Product Layout Design
Desired Output/ Cycle Time
Work Element
Minimum Number of Work Stations
Precedence Diagram
Idle Time
Efficiency
Balance Delay
Example: Product Layout Design
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Example: Product Layout Design
Green Grass, Inc., is designing an assembly line to produce anew fertilizer spreading machine, the Big Broadcaster. Green
Grasss plant manager has just received marketings latest
forecasts of Big Broadcaster sales for the next year. She wants
its production line to be designed to make 2400 spreaders per
week for at least the next three months. The plant will operate
40 hours per week.
a. What should be the lines cycle time?
b. What is the theoretical number of workstations?
c. What should be the lines efficiency?
The following table provides estimates for each work elements
i d bl h Bi B d
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WorkElement
Description Time (sec) ImmediatePredecessors
A Bolt frame to Hopper 40 None
B Insert Impeller Shaft 30 A
C Attach axle 50 A
D Attach agitator 40 B
E Attach drive wheel 6 B
F Attach free wheel 25 C
G Mount lower post 15 CH Attach controls 20 D,E
I Mount nameplate 18 F,G
required to assemble the Big Broadcaster:
Solution
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Solution
Throughput=
Cycle time=
Minimum Number of Workstations=
Efficiency=
Balance Delay=
Example: Product Layout Design
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Example: Product Layout Design
A,40
B,30
C,50
D,40
E,6
H,20
F,25
G,15
I,18
Station Candidate Choice Time Idle Time
Layout Design: Characteristics
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Layout Design: Characteristics
Straight-Line Flow
Predictable Time
Low Work-in-Process
Transparent
Ease of Material Handling
Flexible
Takeaways
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Takeaways
It is not a competency unless it is a process. Process mapping can help you analyze and
improve your processes - You do not really
understand a process until you map it. Process design will affect the way you will compete
in the market.
Process design will affect the you will manage yourbusiness.
Learning never ends
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Learning never ends.
When Should a Process Be Art, Not Science Joseph M. Halland M. Eric Johnson, Harvard Business Review, March 2009.
Chapters 5, 6, & 6A: Operations & Supply ChainManagement - by F. Robert Jacobs and Richard B. Chase,13th Edition, McGraw-Hill/Irwin, 2011.
OPMT 635: Process Analysis, Lean and Agile Organizations
Society of Manufacturing Engineers (SME) www.sme.org
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Thank You!