operations management plant layout. operation management hr product materials scheduling facilities...

OPERATIONS MANAGEMENT

Plant Layout

OPERATION MANAGEMENT

HR

PRODUCT

MATERIALS

SCHEDULING

FACILITIES

PLANNING

PROCESSES

LAYOUT

Operations ManagementProduct Definition Process

Product: The end result of the manufacturing process to be

offered to the market place to satisfy a need or a want.

Operations ManagementProduct Design and Development

Marketing and Product Design and Development are the two most critical contributors for the success of any New Product in the market;

- Product definition is conceptualised through market lead - The concept is translated into the tangible product by the design and

development team. Will be suicidal, if the conceptualization of the Product definition on the

basis of customer need/want is insufficient/incorrect and/or the Product designed on the basis of market lead fails to meet the

customer need/want and/or inefficient vis-à-vis competition and/or is not cost effective (capital costs and operating costs) or any other reason that may hinder sales of the Product.

Operations ManagementProduct Design

Critical Factors: - Must meet the required need/want of customers, critical for the

success of the organisation - Must be manufacturable, with minimum additional capital

investments - Must have an edge over competition - Must have versatility yet cost effective - Must be cost effective - Must be an out come of a team work – Marketing, Manufacturing, Industrial Engineering and Design/Development teams

Operations ManagementProduct Design

Importance: - Basis for investments and long term commitments - Organisation profitability depends on success of the Product/Service acceptance by market - Decides the Product/Service Cost - Failures discourage management in considering launch of the new products

Operations Management

Capacity planning

• Capacity is the maximum output rate of a facility• Capacity planning is the process of establishing the

output rate that can be achieved at a facility:– Capacity is usually purchased in “chunks”– Strategic issues: how much and when to spend

capital for additional facility & equipment– Tactical issues: workforce & inventory levels, & day-

to-day use of equipment

PRODUCTION MANAGEMENT

The management of those resources & activities that are required to produce goods for

consumers or to the organizations. The Production Management is generally concerned with

Manufacturing Industries.


To be effective, requires the focus and attention to details related to;- Utilization of materials- Utilization of plant & machinery- Utilization of menwith the Product design and plant design being optimum for the requirements.


To achieve the objectives, key areas of interest are;

- Manufacturing Systems- Materials Management- Methods- Plant layout- Human Resource

Manufacturing Systems

• Depend on the type of Plant in which we have to Operate• Factors determining place of Production Planning & Control in an

Organization are: > Type of Production - Quantity of Finished Products - Regularity of manufacture > Size of Plant > Type of Industry

Manufacturing SystemsTypes of Production

• Broadly eight types, Grouped under three Heads

> Job Production

> Batch Production

> Continuous Production

Plant Layout-Definition & Objectives

• Planning the optimum arrangement of facilities, personnel, equipment, storage space, material handling equipment and all supporting services, along with the design of the best structure to contain all these facilities

• Economic handling of all material; better supervision; faster production; better product quality; flexible plant & workspace design for expansion; Improved work conditions; unidirectional workflow

PLANT LAYOUT

Layout plays an important role in production system. Layout not only affects the allocation of machines & other resources to perform given tasks but it may also become an important factor at the design stage in selection of production process

Advantages

• Better working conditions for workers• Minimisation in material handling• Minimisation in damage & spoilage• Minimisation of congestion of material,

machinery, workers• Flexibility to adapt to changing production

conditions

Production ManagementPlant layout

An arrangement of facilities and services in the plant that

outlines relationship between production centers and departments.

A layout may either evolve gradually, or it may be planned for future operations.


Purpose of a planned layout: - Integrate the production centers into a logical, balanced and effective

production unit. - Facilitates satisfactory movement of materials and personnel and an

efficient control mechanism for such transportations. - Provides a logical distribution of functional facilities in the plant. - Be adaptable to possible changes in the plant’s production programme,

changes in product designs, changes in output requirements, rearrangement of facilities or expansion of facilities.

- Proper allocation and utilisation of space to the production centers and service departments.

- Convenience of operations both to operators and supervisors.


Plant layout provides:

- The broad framework within which production and many administrative activities have to take place and as such has an important bearing on utilization of facilities, on manufacturing methods, on control mechanisms and on production costs.

Layout has also a marked effect on capital expenditure and the costs of special installations have to be carefully weighed against potential savings in the cost of labour, machine time, handling and services.

Production ManagementPlant Layout

Flow Systems:

- Horizontal Flows

- Vertical Flows


Horizontal Flows – 5 Types:

- ‘I’ Flow or Line flow , Materials are fed at one end and components/finished parts leave at the other end.

- ‘L’ Flow, similar to I but adapted when I – line cannot be accommodated in the available space.

- ‘ U’ Flow, has both feeding to and ejection from the line at the same end. When the line occupies the whole floor, a ‘U’ line is convenient – ease of supervision


Horizontal Flows – 5 Types: - ‘S’ Flow, for long production lines: - Efficient floor utilisation - Compact for effective supervision

- ‘ O’ Flow, is used when operations are carried out on a rotary table/handling system. Components are passed from one working station to another & when they leave the O- line , a complete set of operation has been performed. Components can be inspected before these are passed on to a second ‘O’ line or other\line for next operation.

Usually flow lines are used in combinations.

Horizontal Flow Systems

Combinations of Horizontal Flow Systems


Horizontal Flow lines - Aspects:

Unidirectional or retractional flow: - Unidirectional flow, material is transferred from one machine to

another without having to move again - Retractional flow, the flow is repeated, with one or more non

consecutive operation performed on the same machine - offers better machine utilisation - more settings - intermittent halts for change over of machine settings.

Unidirectional and Repeated Flow Systems


Horizontal Flow lines - Aspects:

Integration of flow lines into assembly lines: - Where several flow lines feed assembly lines, the logical pattern of integration is like a river, where several streams/tributaries combine into main river. - Rate of flow is determinant factor in the integration of all the lines into one unit. This decides the process used for feeding lines in Continuous or Batch. Example – Three continuous and three batch lines

Combination of basic flow lines- manufacture of motors

A “River” Convergent Flow


Vertical Flow lines: In multi-story buildings/systems, flow is planned with due importance to material handling

systems & control mechanisms. Processing Downwards or Upwards : Downwards – Raw materials are taken to top Upwards - Finished product comes up to the top. > Processing downwards – Gravity handling systems ( roller lines, chutes, pipes, buckets, hand operated lift etc.) can be used. > Processing upwards – Basically for heavier raw materials - Lighter machines as we go up, cost of construction - Process ( manufacture of glass- pushed up through successive set of rollers and cut).


Vertical Flow lines: - Centralised or decentralised elevation : Centralised - All handling systems, upwards or downwards at one end of the building, suitable for U-flow. - Supervision, maintenance of material handling system better & economical. - Lower capital cost Decentralised – ‘I’ Flow, centralised will require extra material handling - Offers more flexibility in design of flow lines & effectiveness. - Higher capital costs.


Vertical Flow lines: Unidirectional or Retractional flow: - Like in horizontal, retraction helps improve machine

utilization, but handling & machine setting more costlier. Vertical or Inclined flow: - Vertical by elevators, chutes & buckets with economy of

space. - Inclines due to conveyor belts & chain systems; - more adaptable - can be point to point


Vertical Flow lines:

Single or Multi flow: Single flow – One flow line Multi flow - Several production feed one assembly line & converge into one flow line. - Alternatively, the material is divided into several streams after first operations & each stream is directed to different processes, so that several products finally emerge.


Vertical Flow lines:

Flow between buildings: - When several buildings form links in one production line. The flow from one building to the other is either elevated or a ground floor. - Ground floor is cheaper to install & is more suitable when processing upwards in the second building. If downward in the second building, the material from the first building is to be elevated to the top floor of second building.

Six Basic Aspects of Vertical Flow Systems


Types of Layouts

• Product Layout or Line Production

• Process Layout

• Layout by Fixed position (Static Product layout)

Project/Fixed Position Layout• Raw material placed in fixed positions; also called fixed

position layout• Advantages:Reduces movement of m/c &

equipment;Minimizes damage/cost of movement;continuity of assigned work force

• Disadvantages:Skilled & versatile workers needed due to multiple operations;skill combination may be difficult to obtain;higher pay;movement of people/material may be expensive;equipment utilisation low as they are left at location for subsequent usage instead of being moved as & where needed


Product Layout or Line Production

• Machines and auxiliary services are located along the product flow line.

• Suitable for continuous type of production and can employ, one of the basic Horizontal flow lines.

Product Layout• Equipment placed in usage sequence; also called

line layout; useful in assembly work such as cars, m/cycles

• Advantages:Small mfg cycle;low wip;min material handling;lower labour cost;effective quality control;easy to schedule;easy prodn control;low variety

• Disadvantages:Change in work nature needs change in layout;m/c utilisation may not be optimum;m/c breakdown delays work;work area expansion/m/c addition not possible

Product Layout


Process Layout

• Machines & Services are grouped according to their characteristics functional purpose.

• Turning,Welding,Pinting,Presses etc.

• Suitable for Job and Batch Systems.

Types

• Process layout: similar equipment & tasks grouped; also called functional layout; useful for low volume, high variety jobs

• Advantages:low capital investment,fewer m/c; higher space utilisation;flexibility in equipment allocation; workers gain expertise; problems localised;job variety

• Disadvantages:needs more space;no mechanisation;high wip;work scheduling problems;high set-up & inspection costs

Process layout


Combination of Layouts in Practice

• Each type has advantages and limitations and hence Combinations of these types are in use very often in industry.

• In case of a Basic requirement of a Product Layout, some times we need to allow for repeated flow to avoid excessive machine idle time and extra capital expenditure.


A Compromise layout

- The flow is basically U-Flow. - The raw materials are supplied from stores and metal bars and sheets are

first cut to size. - In Functional layout (Process), there are 9 Production Centres to which

components are brought according to the Process Chart and Inspection is also centralised.

- In Product Layout, U-Flow line is strictly adhered to and the total distance travelled by material is considerably shorter, but turning operation is performed at 3 different locations along the production line.

A Compromise layout

Comparison of distances travelled in a product, a process and a combined layout

February 5, 2009


An example of Product & Process Layout

- Product requires 3 components A,B&C

- Involves 17 Operations

- Involves 5 Inspections in a machine shop


Summary Comparison between Product & Process layouts

Product Layout Process Layout Number of Operation Stations 11 8 Number of Inspection Stations 4 1 Total number of Stations 15 9 Distance covered by material, 283 mts 477mts floor area being same Machine utilisation Lower-TBA Higher-TBA Capital cost Higher-TBA Lower –TBA Inventory ( WIP) Lower –TBA Higher -TBA


A Compromise layout

Factors to be considered:

- Utilisation of men & machines

- Space requirements and availability

- Material movements and Handling


A Compromise layout - In the example, inspections are responsible for a great amount of

handling in Process layout (208mts.) and this could be decentralised without too much of additional Capital costs.

Number of Operations - 10 Number of Inspections - 4 Total Operations - 14 Total distance covered - 298 mts. WIP - Lower

Old Layout


A Compromise layout

- Assemblies completed in Department A, Stored at B waiting for inspection, inspected at C and stored again at D

- Delays between production and inspections

- Possibilities of higher rejection due to delayed corrections.

New Layout


A Compromise layout

- Inspection immediately after production

- Immediate corrective actions, lesser possibilities of rejections - Lower WIP and hence economies of space and less Inventory cost.


Machine Layout

- General layout of the plant, broken into machines in relation to other machines and to material handling system.

- Affects efficiency of the operations and rate of production for the whole line.


Machine Layout

Major Considerations: - Room for workers operating machines - Allowance for projection of machines moving parts - Allowance for projections of materials - Material handling – movements - Storage space - Place for tools & accessories - Maintenance requirements - Quick access & Safety stops - Lighting, Ventilating & Safety requirements - Statutory compliances


Materials Handling

• Means by which the flow in the plant is sustained – forms vital part of the layout.

• Material Handling is used for horizontal, vertical or combination incl. inclined.

- Cranes - Conveyors - Trucks - Gravity handling Systems (cheaper).


Automation on layout

• Fully Automated plant or individual sections or production lines - Automated lines provide for: > Constant flow of materials through the system > Automatic loading, positioning & unloading > Inspection after certain predetermined operations > Automatic sorting for rejections - Results in: > Lower WIP > Lesser temporary storages –space and costs >Reduced material handling costs


Automation on layout

- Involves: > Major Capital expenditure > Reduced flexibility > Reduced adaptability to variations in designs

- Flexibility is achieved, if adopted to batch production & integration of these lines into one layout.


Symptoms of bad layout: - Material congestion - Excessive WIP - Poor space Utilization - Long transportation lines - Production bottlenecks at certain machines,when some other identical machines are idle. - Excessive handling by skilled operators - Long production cycles and delays in delivery - Mental and/or physical strain on Operators - Poor effective supervision and controls - Higher rejections/damages - Accidents


Factors to be considered in planning of layout:

A number of factors must be analysed before deciding on the pattern of the flow lines and type of layout and communication systems.

- Hazards : moving parts,projecting machine elements, suspended weights, air pollution, physical & chemical risks, safety of personnel & plant.

- Type of Production : Job, batch or continuous or combinations - Type of Operation : Wet or dry : Light or heavy machines etc.


Factors to be considered in planning of layout:

- Sequence of Operations - Integration of production : Single/Multi flow - Type of Products : Weight, Volume, Physical state - Type of Inspection : Centralised/Decentralised : Frequency etc. - Management policy: Plans for future expansion, changes in product design & variety.


To summarise, Plant layout is critical from: - Utilisation of space & equipment - Material Handling - WIP - Production Control

Layouts are classified as: - Product Type - Process Type - Static Product Type

Automation on layout provides: - Saving in Space & Handling - Reduced WIP

- Problems of adaptability to product variety & changes in design


Flow Systems: - Flow of materials through the plant is one of the major factors that

determine the type of layout. - Flow of materials govern : - Cost of material handling - Amount of WIP - Capital & Space tied up by WIP - Length of Production time - Complicated flow systems, usually implies complicated control system - Generally plant layout design starts with the flow system, around which

services & other facilities are added. Sometimes, it is required to be adapted to existing buildings/set-up.

Operations Management

Plant Layout

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operations management plant layout. operation management hr product materials scheduling facilities...

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