Process Selection and Facility Layout

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• Process Selection and Facility Layout

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Learning Objectives

• Explain the strategic importance of process
  selection.
• Explain the influence that process selection has
  on an organization.
• Describe the basic processing types.
• Discuss automated approaches to processing.
• Explain the need for management of technology.

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Learning Objectives

• List some reasons for redesign of layouts.
• Describe the basic layout types.
• List the main advantages and disadvantages of
  product layouts and process layouts.
• Solve simple line-balancing problems.
• Develop simple process layouts.

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Introduction

• 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

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Process Selection and System Design
Figure 6.1
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Process Strategy

• Key aspects of process strategy
• Capital intensive equipment/labor
• Process flexibility
• Technology
• Adjust to changes
• Design
• Volume
• technology

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Technology

• 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.

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Kinds 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

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Technology Competitive Advantage

• Innovations in
• Products and services
• Cell phones
• PDAs
• Wireless computing
• Processing technology
• Increasing productivity
• Increasing quality
• Lowering costs

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Technology 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

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Process Selection
Batch

• Variety
• How much
• Flexibility
• What degree
• Volume
• Expected output

Job Shop
Repetitive
Continuous
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Process Types

• 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

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Product and Service Processes
Figure 6.2
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Product Process Matrix
Figure 6.2 (contd)
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Product 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

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Automation

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

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Automation

• Computer-aided design and manufacturing systems
  (CAD/CAM)
• Numerically controlled (NC) machines
• Robot
• Manufacturing cell
• Flexible manufacturing systems(FMS)
• Computer-integrated manufacturing (CIM)

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Facilities Layout

• 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

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Objective of Layout Design

• Facilitate attainment of product or service
  quality
• Use workers and space efficiently
• Avoid bottlenecks
• Minimize unnecessary material handling costs
• Eliminate unnecessary movement of workers or
  materials
• Minimize production time or customer service time
• Design for safety

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Importance of Layout Decisions

• Requires substantial investments of money and
  effort
• Involves long-term commitments
• Has significant impact on cost and efficiency of
  short-term operations

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The Need for Layout Decisions
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The Need for Layout Design (Contd)
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Basic Layout Types

• Product layouts
• Process layouts
• Fixed-Position layout
• Combination layouts

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Basic 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

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Product Layout
Figure 6.4
Raw materials or customer
Station 2
Station 3
Station 4
Finished item
Station 1
Material and/or labor
Material and/or labor
Material and/or labor
Material and/or labor
Used for Repetitive or Continuous Processing
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Advantages of Product 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

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Disadvantages 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

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A U-Shaped Production Line
Figure 6.6
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Process Layout
Figure 6.7
Process Layout (functional)
Used for Intermittent processing Job Shop or
Batch Processes
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Product Layout
Figure 6.7 (contd)
Product Layout (sequential)
Used for Repetitive Processing Repetitive or
Continuous Processes
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Advantages of Process Layouts

• Can handle a variety of processing requirements
• Not particularly vulnerable to equipment failures
• Equipment used is less costly
• Possible to use individual incentive plans

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Disadvantages 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

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Fixed 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

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Cellular Layouts

• 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

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Functional vs. Cellular Layouts
Table 6.3
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Service Layouts

• Warehouse and storage layouts
• Retail layouts
• Office layouts
• Service layouts must be aesthetically pleasing as
  well as functional

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Design Product Layouts Line Balancing
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Cycle Time
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Determine Maximum Output
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Determine the Minimum Number of Workstations
Required
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Precedence Diagram
Figure 6.11
Precedence diagram Tool used in line balancing
to display elemental tasks and sequence
requirements
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Example 1 Assembly Line Balancing

• 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

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Example 1 Solution
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Calculate Percent Idle Time
Efficiency 1 Percent idle time
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Line Balancing Rules
Some Heuristic (intuitive) Rules

• 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 tasks time
  and the times of all following tasks.

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Example 2
0.2
0.2
0.3
0.8
0.6
1.0
0.4
0.3
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Solution to Example 2
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Bottleneck Workstation
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Parallel Workstations
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Designing Process Layouts

• Information Requirements
• List of departments
• Projection of work flows
• Distance between locations
• Amount of money to be invested
• List of special considerations
• Location of key utilities

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Example 3 Interdepartmental Work Flowsfor
Assigned Departments
Figure 6.13
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• PowerPoint Authors note
• The following three slides are not in the 9e
  text, but I like to use them for alternate
  examples.

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Process Layout
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Functional Layout
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Cellular Manufacturing Layout