Group MembersGroup Members

•Muhammad Rizwan Younas•Muhammad Abdullah

•Waqas Hussain

Presentation TitlePresentation Title

Process Selection and Facility Layout

Process Selection and Facility Layout

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

Process SelectionProcess Selection

Forecasting

Product andService Design

TechnologicalChange

CapacityPlanning

ProcessSelection

Facilities andEquipment

Layout

WorkDesign

Figure 6.1

Process Selection and Process Selection and System DesignSystem Design

• Key aspects of process strategy– Capital intensive – equipment/labor

– Process flexibility

– Technology

– Adjust to changes

– Design

– Volume

– technology

Process StrategyProcess Strategy

TechnologyTechnology

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 TechnologyKinds 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 AdvantageTechnology Competitive Advantage

Innovations in Products and services

Cell phones PDAs Wireless computing

Processing technology Increasing productivity Increasing quality Lowering costs

Technology AcquisitionTechnology 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

Variety How much

Flexibility What degree

Volume Expected output

Job Shop

Batch

Repetitive

Continuous

Process SelectionProcess Selection

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 TypesProcess Types

Process Type

Job Shop Batch Repetitive Continuous(flow)

Job Shop Appliance repair

Emergency room

Ineffective

Batch Commercialbaking

ClassroomLecture

Repetitive Automotiveassembly

Automaticcarwash

Continuous(flow)

Ineffective Steel ProductionWater purification

Figure 6.2

Product and Service Product and Service ProcessesProcesses

Dimension Job Shop Batch Repetitive Continuous(flow)

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 MatrixProduct – Process Matrix

Product and Process ProfilingProduct 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

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

AutomationAutomation

• Computer-aided design and manufacturing systems (CAD/CAM)

• Numerically controlled (NC) machines

• Robot

• Manufacturing cell

• Flexible manufacturing systems(FMS)

• Computer-integrated manufacturing (CIM)

AutomationAutomation

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 LayoutFacilities Layout

Objective of Layout DesignObjective of Layout Design

1. Facilitate attainment of product or service quality

2. Use workers and space efficiently3. Avoid bottlenecks4. Minimize unnecessary material handling costs5. Eliminate unnecessary movement of workers

or materials6. Minimize production time or customer service

time7. Design for safety

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 DecisionsImportance of Layout Decisions

Product layouts

Process layouts

Fixed-Position layout

Combination layouts

Basic Layout TypesBasic Layout Types

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 TypesBasic Layout Types

Raw materialsor customer

Finished item

Station 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 for Repetitive or Continuous Processing

Figure 6.4 Product LayoutProduct Layout

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 LayoutAdvantages of Product Layout

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 LayoutDisadvantages of Product Layout

1 2 3 4

5

6

78910

In

Out

Workers

Figure 6.6A U-Shaped Production LineA U-Shaped Production Line

Dept. A

Dept. B Dept. D

Dept. C

Dept. F

Dept. E

Used for Intermittent processingJob Shop or Batch Processes

Process Layout(functional)

Figure 6.7Process LayoutProcess Layout

Work Station 1

Work Station 2

Work Station 3

Figure 6.7 (cont’d)

Product Layout(sequential)

Used for Repetitive ProcessingRepetitive or Continuous Processes

Product LayoutProduct Layout

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 LayoutsAdvantages of Process Layouts

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 LayoutsDisadvantages of Process Layouts

Fixed Position LayoutsFixed 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 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 LayoutsCellular Layouts

Dimension Functional CellularNumber 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 6.3Functional vs. Cellular LayoutsFunctional vs. Cellular Layouts

Warehouse and storage layouts Retail layouts Office layouts Service layouts must be aesthetically

pleasing as well as functional

Service LayoutsService Layouts

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: Design Product Layouts: Line BalancingLine Balancing

Cycle time is the maximum time allowed at each workstation tocomplete its set of tasks on a unit.

Cycle TimeCycle Time

D

OT = timecycle = CT

rateoutput Desired= D

dayper timeoperating OT

CT

OT = rateOutput

D

OT = timecycle = CT

rateoutput Desired= D

dayper timeoperating OT

CT

OT = rateOutput

Determine Maximum OutputDetermine Maximum Output

task timeof sum = t

CT

t)( =N

Determine the Minimum Number Determine the Minimum Number

of Workstations Requiredof Workstations Required

Precedence diagram: Tool used in line balancing to display elemental tasks and sequence requirements

A Simple Precedence Diagrama b

c d e

0.1 min.

0.7 min.

1.0 min.

0.5 min. 0.2 min.

Figure 6.10Precedence DiagramPrecedence Diagram

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: Example 1: Assembly Line BalancingAssembly Line Balancing

Workstation

TimeRemaining

EligibleAssignTask

RevisedTime Remaining

StationIdle 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: SolutionExample 1: Solution

Percent idle time = Idle time per cycle

(N)(CT)

Efficiency = 1 – Percent idle time

Calculate Percent Idle TimeCalculate Percent Idle Time

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 RulesLine Balancing Rules

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 2Example 2

Station 1 Station 2 Station 3 Station 4

a b ef

d

g h

c

Solution to Example 2Solution to Example 2

1 min.2 min.1 min.1 min. 30/hr. 30/hr. 30/hr. 30/hr.

Bottleneck

Bottleneck WorkstationBottleneck Workstation

Parallel WorkstationsParallel 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

Information Requirements:

1. List of departments

2. Projection of work flows

3. Distance between locations

4. Amount of money to be invested

5. List of special considerations

6. Location of key utilities

Designing Process LayoutsDesigning Process Layouts

1 3 2

30

170 100

A B C

Figure 6.12

Example 3: Example 3: Interdepartmental Work FlowsInterdepartmental Work Flows

for Assigned Departmentsfor Assigned Departments

Any Question.????Any Question.????