Design of Operations

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Design of Operations
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Types of Design Problems

• 1. Product/Service Design
• Process Design
• Layout
• 4. Job Design
• Supply Chain Design
• Facility Location
• Together Often Called Production Design.

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General Principles of Production Design

• 1. Plan Ahead Carefully (5-20 Year Life Span)
• Check Constraints (Capacity Planning)
• Interface with All Related Disciplines
• Marketing Finance Accounting Engineering
• 4. Analyze, Test, and Debug Preliminary Designs
• 5. Describe System Being Designed

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Recording Preliminary Designs

• Memos
• Engineering Drawings (pages 199, 213)
• Bill of Materials (page 246)
• Assembly Charts(p 247)
• Operations Process Sheets (page 248)
• Process Flow Chart (page 249)

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Improving Production Design

• Multi-Functional Design Teams
• Concurrent Product and Process Design
• Designing for Manufacturing and Assembly (DFM)
• Designing for Environment
• Measuring Design Quality
• Quality Function Deployment
• Designing for Robustness

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Improving Service Design

• Consistency with Strategic Focus and Mission
• User Friendliness
• Robustness
• Sustainability
• Linkage of Front and Back Office
• Cost-Effectiveness
• Visibility to Consumer

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Process Design Types of Processes

• Projects
• Batch Production Job Shops and Work Cells
• Mass Production Assembly Lines
• Continuous Production
• Breakeven Analysis Can Be Used for Selection of
  Process Type. Fixed vs. Variable Costs

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Work Cells

• Intermediate to Job Shops Assembly Lines
• Group of Machines to Make Set of Parts
• Minimizes Distances, Related Handling Costs
• Minimizes Inventories

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Work Cell Example
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Newer Process Technologies

• Computer Numerically Controlled Tools
• Automated Material Handling
• Flexible Manufacturing Systems (FMS)
• Robotics
• Computer Integrated Manufacturing (CAD/CAM)

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Before Performing Layout, We Must

• 1. Complete Production (Product, Process) Design
• 2. Complete Reports, Drawings
• Equipment Selection
• Personnel Requirements
• Space Requirements

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Layout Preliminaries

• Data Required for Layout
• Flow of Materials Between Facilities
• Shape and Size of Facilities
• Total Floor Space Available
• Location Restrictions
• Adjacency Requirements between Pairs of Facilities

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Layout Criteria

• Total Handling Cost TC ?i ?j cij fij dij for
  All is and js
• cij Cost of Moving One Load One Unit Distance
• fij Number of Loads (Load Summary or
  Relationship Chart)
• dij Distance

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Supply Chain Design and Management

• Interrelated
• Organizations
• Resources
• Processes
• Create and Deliver Products Services to
  Customers
• Firms Suppliers Distributors Included in
  Supply Chain

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Supply Chain Tools

• Linkages
• Internet
• Enterprise Resource Planning ERP and SAP
• Single Sourcing

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Facility Location(AKA Logistics Management)

• Rationale for Decisions
• Expand Markets
• Depletion of Resources at Existing Locations
• Expansion of Existing Facilities Difficult
• Costs, Obsolescence, at Existing Locations
  -Increase Proximity to Suppliers, Distributors

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Location Options

• Expand Existing Facilities
• Add New Locations, Retain Old Ones
• Shut Down Old Operations Move to Another
• Do Nothing

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Location Decision Steps

• Decide on Criteria to Use in Evaluation What
  Are Relevant Objectives Costs?
• 2. Gather Data on Important Factors Potential
  Markets, Constraints, Sources of Raw Materials,
  Etc.
• Develop Location Alternatives.
• 4. Evaluate Alternatives Make Selection.

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