Introduction to Operations Management

1
Introduction to Operations Management

• Process Selection and Facility Layout (Ch.6)
• Hansoo Kim (???)
• Dept. of Management Information Systems, YUST

2
What you should do!

• Review Capacity Planning
• Read Chapter 6 and 6s

3
OM Overview
X
Class Overview (Ch. 0)
Project Management (Ch. 17)
Operations, Productivity, and
Strategy (Ch. 1, 2)
Process Selection/Facility Layout LP (Ch.
6, 6S)
Strategic Capacity Planning (Ch. 5, 5S)
X
X
X
Mgmt of Quality/Six Sigma Quality (Ch. 9, 10)
Supply Chain Management
(Ch 11)
Location Planning and
Analysis (Ch. 8)
JIT Lean Mfg System
(Ch. 15)
Queueing/ Simulation (Ch. 18)
Demand MgmtForecasting (Ch 3)
Inventory Management (Ch.
12)
Aggregated Planning
(Ch. 13)
MRP ERP (Ch 14)
Term Project
4
Key Terms
?? ??? ?? ???
Assembly line ??? Line balancing ?????
Automation ??? Numerically controlled(N/C)machines ????
Balance delay ?????? Precedence diagram ?????
Cellular production ???? Process layout ??????
Computer-aided manufacturing ??????? Production line ???
Computer-integrated manufacturing ??????? Product layout ??????
Cycle time ?? Product or service profiling ???????
Fixed-position layout ???? Project ??
Flexible manufacturing system ?????? Robot ???
Group technology ???? Technological innovation ????
Intermittent processing ???? technology ??
5
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.
• 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.

6
Capacity and Process Selection

• Process Strategy (Key Aspects)
• Capital Intensity
• Process Flexibility

7
Process Selection Strategy (????, ???? ??)

• Process Selection (????)
• Deciding on the way production of goods or
  services will be organized
• ??? ???? ?? ???? ??? ? ????? ?? ??
• Process Transformation
• ????? ??(? ???)? ???? ??
• Objective(??)
• Meet or exceed customer requirements (????)
• Meet cost managerial goals
• ??? ???? ??? ????? ??? ??!
• Long-term effect (???? ???? ??)
• Product Volume Flexibility
• Costs Quality

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??? ? ???

• ?? ??? ??(or ???)??? ????
• (Which types of process strategy can exist?)
• ??(or ???)??? ????? ???? ?? ???? ?? ?? ????
• Which factors should be considered to select the
  process strategy?
• ??
• ????
• ??????
• ??????
• ??? ????

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Machining Process

• Process Time (????) Setup Time (????)
  Machining Time (????)
• How is the utilization of the Machine?

S-A-A-A-A-S-B-B-B-B
S-A-S-B-S-A-S-B-S-A-S-B-S-A-S-B
S Setup Time
????
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Process Selection

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

Batch
Job Shop
Repetitive
Continuous
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Types of Processing
12
Product and Service Processes
Figure 6.2
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Volume and Variety of Products
14
Areas of Technology

• Machine technology
• Automatic identification systems (AIS)
• Bar-code, RFID
• Process control
• Vision system
• Robot
• Automated storage and retrieval systems (ASRS)
• Flexible manufacturing systems (FMS)
• Computer-integrated manufacturing (CIM)

15
FMS? ?? ????? ???
1
6
4
5
7
2
3
8
16
FMS ?
17
FMS ?
?????
????
?????
???? ?? ??????
???????
?????
???
??? ?????
?????
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FMS ?
19
(No Transcript)
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Types of Robot

• Cylindrical
• Polar
• Cartesian
• Joint Arm

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FMS Machine
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ASRS (????)
23
AGV (?????)
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AGVS (????? ???)
http//www.steinbockus.com/AGVs/animation.gif
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Computer Integrated Manufacturing(CIM)
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Facility Layout Design
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Objectives of Facility Layout

• Develop an economical layout which will meet the
  requirements of
• product design and volume (product strategy)
• process equipment and capacity (process strategy)
• quality of work life (human resource strategy)
• building and site constraints (location strategy)
• ??????? ???
• ??? ??? ??
• ???? ??? ??
• ???? ???? ????
• ????? ??
• ?? ? ??? ?? ??

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What is Facility Layout

• Location or arrangement of everything within
  around buildings
• Objectives are to maximize
• Customer satisfaction
• Utilization of space, equipment, people
• Efficient flow of information, material, people
• Employee morale safety

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Types of Layouts

• Product-oriented layout
• Process-oriented layout
• Fixed-position layout
• Office layout
• Retail layout
• Warehouse layout

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Product Oriented Layout
Used for Repetitive or Continuous Processing

• Product Oriented Layout
• Layout that uses standardized processing
  operations to achieve smooth, rapid, high-volume
  flow

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Product Oriented Layout???

• ??
• Lower variable cost per unit (?? ???)
• Lower but more specialized labor skills
• Easier production planning and control(???? ?
  ??? ???)
• Higher equipment utilization (70 to 90)(??? ??
  ???)
• ??
• Lower product flexibility (?? ??? ??)
• More specialized equipment (????)
• Usually higher capital investment (?? ??????)

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Process Oriented Layout(job shop) ?? ??
Milling Department
Lathe Department
Drilling Department
M
M
D
D
D
D
M
M
D
D
D
D
G
G
G
P
G
G
G
P
Painting Department
Grinding Department
A
A
A
Receiving and Shipping
Assembly
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Process Oriented Layout

• Facilities(??) are organized by process
• Similar processes are together
• Example All drill presses are together
• Low volume, high variety products(??? ??)
• Jumbled flow (??? ??)

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Process Oriented Layout???

• ??
• Greater product flexibility (??? ??? ??)
• More general purpose equipment(???? ?? ?? ??)
• Lower initial capital investment(?? ?? ?? ??)
• ??
• High variable costs (?? ???)
• More highly trained personnel (????)
• More difficult production planning control
  (???? ? ??? ???)
• Low equipment utilization (5 to 25) (?? ?? ???)

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Emergency Room Layout(Process-Oriented Layout)
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Steps in Developing aProcess-Oriented Layout

• Construct a from-to matrix
• Determine space requirements for each department
• Develop an initial schematic diagram
• Determine the cost of this layout
• By trial-and-error (or more sophisticated means),
  try to improve the initial layout
• Prepare a detailed plan that evaluates factors in
  addition to transportation cost

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Cost of Process-Oriented Layout
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Interdepartmental Flow of Parts
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Possible Layout 1
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Interdepartmental Flow Network Showing Number of
Weekly Loads
100
1
2
3
1
50
30
20
100
50
20
10
4
5
6
50
????? (Adjacent Cost) 1, ??????
(Non-Adjacent C.) 2
Total Cost 50200403050104010050 570
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Possible Layout 2
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Interdepartmental Flow Graph Showing Number of
Weekly Loads
30
2
1
3
100
50
100
20
50
20
10
6
5
4
50
?????(Adjacent Cost) 1, ??????(Non-Adjacent
C.)2
Total Cost 50100206050104010050480
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Computer Programs to Assist in Layout

• CRAFT
• SPACECRAFT
• CRAFT 3-D
• MULTIPLE
• CORELAP
• ALDEP
• COFAD
• FADES - expert system

44
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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Cellular Layout - Work Cells

• A temporary product-orient arrangement of
  machines and personnel in what is ordinarily a
  process-oriented facilities

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Work Cell Floor Plan
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Improving Layouts by Moving to the Work Cell
Concept
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Work Cell Advantages
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Office Layout

• Design positions people, equipment, offices for
  maximum information flow
• Arranged by process or product
• Example Payroll dept. is by process
• Relationship chart used
• Examples
• Insurance company
• Software company

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Relationship Chart (???????)
Ordinary closeness President (1) Costing (2)
1
1 President
2
3
O
2 Costing
U
4
A
A
3 Engineering
I
Absolutely necessary President (1) Secretary
(4)
O
4 Presidents Secretary
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Office Relationship Chart
Val. Closeness
A Absolutely necessary
E Especially important
I Important
O Ordinary OK
U Unimportant
X Not desirable
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Retail /Service Layout -Grid Design
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Store Layout - with Dairy, Bread, High Drawer
Items in Corners
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Warehouse Layout

• Design balances space (cube) utilization
  handling cost
• Similar to process layout
• Items moved between dock various storage areas
• Optimum layout depends on
• Variety of items stored
• Number of items picked

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An Assembly Line Layout
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Line Balancing

• Precedence diagram
• Network showing order of tasks and restrictions
  on their performance
• Cycle time
• Maximum time product spends at any one workstation

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Line Balancing

• Precedence diagram
• Network showing order of tasks and restrictions
  on their performance
• Cycle time
• Maximum time product spends at any one workstation

Cycle time example
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Flow Time vs Cycle Time

• Cycle time max time spent at any station
• Flow time time to complete all stations

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Flow Time vs Cycle Time

• Cycle time max time spent at any station
• Flow time time to complete all stations

Flow time 4 4 4 12 minutes Cycle time
max (4, 4, 4) 4 minutes
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Efficiency of Line
where
ti completion time for element i j number
of work elements n actual number of
workstations Ca actual cycle time Cd
desired cycle time
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Line Balancing Process

• 1. Draw and label a precedence diagram.
• 2. Calculate the desired cycle time required for
  the line.
• 3. Calculate the theoretical minimum number of
  workstations.
• 4. Group elements into workstations, recognizing
  cycle time and precedence constraints.
• 5. Calculate the efficiency of the line.
• 6. Stop if theoretical minimum number of
  workstations on an acceptable efficiency level
  reached. If not, go back to step 4.

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Line Balancing
Desired unit of output 6,000 units Available
working hour a day 40 Hrs
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Line Balancing
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Line Balancing
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Line Balancing
3 workstations
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Line Balancing
Cd 0.4 N 2.5
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Line Balancing
Cd 0.4 N 2.5
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Line Balancing
Cd 0.4 N 2.5
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Line Balancing
Cd 0.4 N 2.5
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Line Balancing
Cd 0.4 N 2.5
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Line Balancing
Cd 0.4 N 2.5
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Line Balancing
Cd 0.4 N 2.5
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Line Balancing
Cd 0.4 N 2.5
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Announcement

• Next week
• Project ??
• LP Study
• HW (???? ??)
• Example 1, 2
• Solved Problem 1

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Good Bye!