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McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies, Inc !ll

66

Process Selection

and Facility Layout

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6-2

Learning ObjectivesLearning Objectives

Explain the strategic importance of processselection.

Explain the influence that process selection

has on an organiation. !escribe the basic processing types.

!iscuss automated approaches to

processing. Explain the need for management of

technology.

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6-3

Learning ObjectivesLearning Objectives

List some reasons for redesign of layouts. !escribe the basic layout types.

List the main advantages and

disadvantages of product layouts andprocess layouts.

Solve simple line"balancing problems.

!evelop simple process layouts.

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6-4

Process selection !eciding on the #ay production of goods or

services #ill be organied

$ajor implications %apacity planning

Layout of facilities

E&uipment !esign of #or' systems

(ntroduction(ntroduction

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6-5

Forecasting

Product and

Service Design

Technological

Change

Capacity

Planning

ProcessSelection

Facilities and

Equipment

Layout

Work

Design

Figure 6.)

Process Selection andProcess Selection andSystem !esignSystem !esign

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6-6

* +ey aspects of process strategy

, %apital intensive , e&uipment-labor

, Process flexibility

, echnology

, /djust to changes

, !esign

, 0olume , technology

Process StrategyProcess Strategy

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echnologyechnology

Technology 1 he application of scientificdiscoveries to the development and

improvement of products and services and

operations processes. Technology innovation1 he discovery and

development of ne# or improved products2

services2 or processes for producing orproviding them.

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+inds of echnology+inds of echnology

Operations management is primarily

concerned #ith three 'inds of technology1

Product and service technology

Process technology

(nformation technology

/ll three have a major impact on1

%osts

Productivity

%ompetitiveness

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echnology %ompetitiveechnology %ompetitive

/dvantage /dvantage

(nnovations in Products and services

%ell phones

P!/s 3ireless computing

Processing technology

(ncreasing productivity

(ncreasing &uality

Lo#ering costs

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echnology /c&uisitionechnology /c&uisition

echnology can have benefits but 4 echnology ris's include1

3hat technology #ill and #ill not do

echnical issues

Economic issues

(nitial costs2 space2 cash flo#2 maintenance

%onsultants and-or s'illed employees (ntegration cost2 time resources

raining2 safety2 job loss

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0ariety 5o# much

Flexibility 3hat degree

0olume Expected output

Job Shop

Batch

Repetitive

Continuous

Process SelectionProcess Selection

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ob shop Small scale

7atch

$oderate volume 8epetitive-assembly line

5igh volumes of standardied goods or services

%ontinuous 0ery high volumes of non"discrete goods

Process ypesProcess ypes

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Process Type

Job Shop /ppliance repair Emergency

room

(neffective

Batch %ommercialba'ing

%lassroomLecture

Repetitive /utomotiveassembly

/utomaticcar#ash

o!ti!"o"s#$%o&'

(neffective Steel Production3ater purification

Figure 6.9

Product and ServiceProduct and Service

ProcessesProcesses

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(i)e!sio!

Job variety 0ery 5igh $oderate Lo# 0ery lo#

Process$%e*ibi%ity

0ery 5igh $oderate Lo# 0ery lo#

+!it cost 0ery 5igh $oderate Lo# 0ery lo#

,o%")e o$o"tp"t

0ery 5igh Lo# 5igh 0ery lo#

Figure 6.9 :cont;d<

Product , Process $atrixProduct , Process $atrix

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Product and Process ProfilingProduct and Process Profiling

Process selection can involve substantial

investment in

E&uipment

Layout of facilities

Product profiling 1 Lin'ing 'ey product or servicere&uirements to process capabilities

+ey dimensions

8ange of products or services

Expected order sies

Pricing strategies

Expected schedule changes

Order #inning re&uirements

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Automation1 $achinery that has sensingand control devices that enables it to

operate

Fixed automation Programmable automation

/utomation /utomation

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* %omputer"aided design andmanufacturing systems :%/!-%/$<

* =umerically controlled :=%< machines

* 8obot* $anufacturing cell

* Flexible manufacturing systems:F$S<

* %omputer"integrated manufacturing :%($<

/utomation /utomation

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Layout 1 the configuration ofdepartments2 #or' centers2 and

e&uipment2 #ith particular emphasis on

movement of #or' :customers ormaterials< through the system

Product layouts

Process layouts Fixed"Position layout

%ombination layouts

Facilities LayoutFacilities Layout

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Objective of Layout !esignObjective of Layout !esign

). Facilitate attainment of product or service&uality

9. >se #or'ers and space efficiently

?. /void bottlenec's

@. $inimie unnecessary material handling costs

A. Eliminate unnecessary movement of #or'ersor materials

6. $inimie production time or customer servicetime

B. !esign for safety

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8e&uires substantial investments of

money and effort

(nvolves long"term commitments

5as significant impact on cost and

efficiency of short"term operations

(mportance of Layout(mportance of Layout

!ecisions!ecisions

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(nefficient operations

For Example1

5igh %ost

7ottlenec's

%hanges in the design

of products or services

he introduction of ne#

products or services

/ccidents

Safety haards

he =eed for Layout !ecisionshe =eed for Layout !ecisions

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%hanges inenvironmental

or other legal

re&uirements

%hanges in volume of

output or mix of

products

%hanges in methodsand e&uipment

$orale problems

he =eed for Layout !esignhe =eed for Layout !esign:%ont;d<:%ont;d<

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Product layouts

Process layouts

Fixed"Position layout

%ombination layouts

7asic Layout ypes7asic Layout ypes

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Product layout Layout that uses standardied processing

operations to achieve smooth2 rapid2 high"volume flo#

Process layout Layout that can handle varied processing

re&uirements Fixed Position layout

Layout in #hich the product or projectremains stationary2 and #or'ers2 materials2and e&uipment are moved as needed

7asic Layout ypes7asic Layout ypes

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6-25

Raw

materials

or customer

Finished

itemStation

2

Station

2

Station

3

Station

3

Station

4

Station

4

Material

and/or

labor

Station

1

Material

and/or

labor

Material

and/or

labor

Material

and/or

labor

Used or !epetitive or Continuous Processing

Figure 6.4

Product LayoutProduct Layout

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6-26

5igh rate of output Lo# unit cost

Labor specialiation

Lo# material handling cost 5igh utiliation of labor and e&uipment

Established routing and scheduling

8outing accounting and purchasing

/dvantages of Product Layout /dvantages of Product Layout

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6-27

%reates dull2 repetitive jobs

Poorly s'illed #or'ers may not maintain

e&uipment or &uality of output

Fairly inflexible to changes in volume

5ighly susceptible to shutdo#ns

=eeds preventive maintenance (ndividual incentive plans are

impractical

!isadvantages of Product Layout!isadvantages of Product Layout

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6-28

1 2 3 4

5

6

7891

!

."t

/orers

Figure 6.6

/ >"Shaped Production Line / >"Shaped Production Line

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6-29

Dept" #

Dept" $ Dept" D

Dept" C

Dept" F

Dept" E

Used or %ntermittent processing

&o' Shop or $atch Processes

Process Layout(functional

Figure 6.!

Process LayoutProcess Layout

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6-30

Work

Station (

Work

Station )

Work

Station *

Figure 6.! (cont"#

Pro#uct Layout(se$uential

Used or !epetitive Processing

!epetitive or Continuous Processes

Product LayoutProduct Layout

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6-31

%an handle a variety of processingre&uirements

=ot particularly vulnerable to e&uipment

failures E&uipment used is less costly

Possible to use individual incentive

plans

/dvantages of Process Layouts /dvantages of Process Layouts

!i d f P!i d t f P

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6-32

(n"process inventory costs can be high

%hallenging routing and scheduling

E&uipment utiliation rates are lo#

$aterial handling slo# and inefficient

%omplexities often reduce span of supervision

Special attention for each product or customer

/ccounting and purchasing are more involved

!isadvantages of Process!isadvantages of Process

LayoutsLayouts

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6-33

Fixed Position LayoutsFixed Position Layouts

Fixed Position Layout1 Layout in #hich theproduct or project remains stationary2 and

#or'ers2 materials2 and e&uipment are

moved as needed. =ature of the product dictates this type of

layout

3eight Sie

7ul'

Large construction projects

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6-34

%ellular Production Layout in #hich machines are grouped into

a cell that can process items that have

similar processing re&uirements Croup echnology

he grouping into part families of items #ith

similar design or manufacturingcharacteristics

%ellular Layouts%ellular Layouts

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(i)e!sio! "!ctio!a% e%%"%ar =umber of movesbet#een departments

many fe#

ravel distances longer shorter

ravel paths variable fixed

ob #aiting times greater shorter

hroughput time higher lo#er

/mount of #or' inprocess

higher lo#er

Supervision difficulty higher lo#er

Scheduling complexity higher lo#er

E&uipment utiliation lo#er higher

%able 6.&

Functional vs. %ellular LayoutsFunctional vs. %ellular Layouts

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6-36

3arehouse and storage layouts 8etail layouts

Office layouts

Service layouts must be aestheticallypleasing as #ell as functional

Service LayoutsService Layouts

!esign Product Layouts1 Line!esign Product Layouts1 Line

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6-37

Line 7alancing is the process of assigning

tas's to #or'stations in such a #ay that

the #or'stations have approximately

e&ual time re&uirements.

!esign Product Layouts1 Line!esign Product Layouts1 Line7alancing7alancing

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6-38

Cycle time is the maximum time

allo#ed at each #or'station tocomplete its set of tas's on a unit.

%ycle ime%ycle ime

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6-39D

OT =timecycle=CT

rateoutputDesired=D

day pertimeoperatingOT

CT

OT =rateOutput

=

D

OT =timecycle=CT

rateoutputDesired=D

day pertimeoperatingOT

CT

OT =rateOutput

=

!etermine $aximum Output!etermine $aximum Output

eterm ne t e n mum um ere erm ne e n mum um er

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6-40

task timeof sum=t

CT

t)( = N

∑

∑

eterm ne t e n mum um ere erm ne e n mum um er

of 3or'stations 8e&uiredof 3or'stations 8e&uired

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6-41

Precedence diagram1 ool used in line balancing todisplay elemental tas's and se&uence re&uirements

Si)p%e Precee!ce

(iara)a b

c e

01 )i!

07 )i!

10 )i!

05 )i! 02 )i!

Figure 6.''

Precedence !iagramPrecedence !iagram

E l ) / bl LiExample )1 /ssembly Line

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6-42

/rrange tas's sho#n in Figure 6.)Dinto three #or'stations. >se a cycle time of ).D minute

/ssign tas's in order of the most numberof follo#ers

Example )1 /ssembly LineExample )1 /ssembly Line

7alancing7alancing

E l ) S l i

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6-43

/orstatio!Ti)eRe)ai!i! %iib%e

ssi!Tas

ReviseTi)eRe)ai!i!

Statio!%e Ti)e

) ).D

D.

D.9

a2 c

c

none

a

c

"

D.

D.9

D.9

9 ).D b b D.D D.D

? ).D

D.A

D.?

d

e

"

d

e

"

D.A

D.? D.?

D.A

Example ) SolutionExample ) Solution

% l l t P t (dl i

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6-44

Percent idle time F(dle time per cycle

:=<:%.<

Efficiency ) , Percent idle time

%alculate Percent (dle ime%alculate Percent (dle ime

Li 7 l i 8 l

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6-45

/ssign tas's in order of most follo#ing

tas's.

%ount the number of tas's that follo#

/ssign tas's in order of greatest

positional #eight. Positional #eight is the sum of each tas';s

time and the times of all follo#ing tas's.

Some 5euristic :intuitive< 8ules1

Line 7alancing 8ulesLine 7alancing 8ules

E l 9E l 9

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6-46

c d

a ' e

g h

+") +") +"*

+", +"-

("+ +". +"*

Example 9Example 9

S l ti t E l 9S l ti t E l 9

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6-47

Statio! 1 Statio! 2 Statio! 3 Statio! 4

a b e

$

h

c

Solution to Example 9Solution to Example 9

7 ttl ' 3 ' t ti7 ttl ' 3 ' t ti

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6-48

' in.) in.' in.' in.&*+hr. &*+hr. &*+hr. &*+hr.

$ottleneck

7ottlenec' 3or'station7ottlenec' 3or'station

P ll l 3 ' t tiP ll l 3 ' t ti

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6-49

Parallel 3or'stationsParallel 3or'stations

' in.

) in.

' in.' in.6*+hr.

&*+hr. &*+hr.

6*+hr.

) in.

&*+hr.

&*+hr.

Parallel Workstations

! i i P L t! i i P L t

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6-50

(nformation 8e&uirements1). List of departments

9. Projection of #or' flo#s

?. !istance bet#een locations@. /mount of money to be invested

A. List of special considerations

6. Location of 'ey utilities

!esigning Process Layouts!esigning Process Layouts

Example ?1 (nterdepartmental 3or'Example ?1 (nterdepartmental 3or'

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6-51

1 3 2

30

170 100

B

Figure 6.'&

Example ?1 (nterdepartmental 3or'Example ?1 (nterdepartmental 3or'Flo#sFlo#s

for /ssigned !epartmentsfor /ssigned !epartments

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6-52

Po#erPoint /uthor;s note1 he follo#ing three slides are not in the e

text2 but ( li'e to use them for alternate

examples.

P L tP L t

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6-53

Process ayo"t - &or trave%sto eicate process ce!ters

i%%i!

sse)b%y

Test:ri!i!

(ri%%i! P%ati!

Process LayoutProcess Layout

F ti l L tF ti l L t

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6-54

/ear

cutting

0ill Drill

Lathes

/rind

1eat

treat

#ssem'ly

(((

***

)))

...

)))

(((

...

((( ***(((( ))))

)))

****

(((

...

(((

* * * * * * * * *

. . . . .

* * * * * *

) ) ) ) )

Functional LayoutFunctional Layout

% ll l $ f t i L t%ell lar $an fact ring La o t

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6-55

-1111 -1111

222222222 - 2222

2 s s e )

b % y

3333333333 - 3333

44444444444444 - 4444

athe

athe

i%%

i%%

i%%

i%%

(ri%%

(ri%%

(ri%%

;eattreat

;eat

treat

;eat

treat

:ear c"t

:ear

c"t

:ri!

:ri!

%ellular $anufacturing Layout%ellular $anufacturing Layout

0id P ! i0ideo Process !esign

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6-56

0ideo1 Process !esign0ideo1 Process !esign

0id P ( l t ti0ideo Process (mplementation

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6-57

0ideo1 Process (mplementation0ideo1 Process (mplementation

0id P $ i0ideo1 Process $apping

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0ideo1 Process $apping0ideo1 Process $apping

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