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Process Layout

Chapter 8

L L M M D D

D D
L L M M

L L M M
G G

L L G G
A A

A A G G

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How Process Layout
fits the Operations Management
Philosophy

Operations As a
Competitive
Weapon
Operations Strategy Process Strategy
Project Management Process Analysis
Process Performance and
Quality
Constraint Management Supply Chain Strategy
Process Layout Location
Lean Systems Inventory
Management
Forecasting
Sales and Operations
Planning
Resource Planning
Scheduling

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Layout Planning

Layout planning is planning that involves decisions


about the physical arrangement of economic activity
centers needed by a facility’s various processes.
Layout plans translate the broader decisions about the competitive
priorities, process strategy, quality, and capacity of its processes
into actual physical arrangements.
Economic activity center: Anything that consumes
space -- a person or a group of people, a customer
reception area, a teller window, a machine, a
workstation, a department, an aisle, or a storage room.

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Layout Planning
Questions

Before a manager can make decisions


regarding physical arrangement, four
questions must be addressed.
What centers should the layout include?
How much space and capacity does each
center need?
How should each center’s space be
configured?
Where should each center be located?

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Location Dimensions

The location of a center has two dimensions:


Relative location: The placement of a center
relative to other centers.
Absolute location: The particular space that
the center occupies within the facility.

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Absolute Locations vs.
Relative Locations
Original layout Frozen
foods Meat
Dry s
groceries
Bread Vegetables
Revised layout

Meat Four of the absolute


Frozen locations have changed but not t
foods
s Dry
groceries
Vegetables Bread

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Strategic Issues

Layout choices can help communicate an organization’s


product plans and competitive priorities.
Altering a layout can affect an organization and how well
it meets its competitive priorities in the following ways:
Increasing customer satisfaction and sales at a retail store.
Facilitating the flow of materials and information.
Increasing the efficient utilization of labor and equipment.
Reducing hazards to workers.
Improving employee morale.
Improving communication.

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Performance Criteria

Customer satisfaction
Level of capital investment
Requirements for materials handling
Ease of stockpicking
Work environment and “atmosphere”
Ease of equipment maintenance
Employee and internal customer attitudes
Amount of flexibility needed
Customer convenience and levels of sales

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Types of Layouts

Flexible-flow layout: A layout that organizes


resources (employees) and equipment by function
rather than by service or product.
Line-flow layout: A layout in which workstations or
departments are arranged in a linear path.
Hybrid layout: An arrangement in which some
portions of the facility have a flexible-flow and others
have a line-flow layout.
Fixed-position layout: An arrangement in which
service or manufacturing site is fixed in place;
employees along with their equipment, come to the
site to do their work.

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A Flexible Flow Layout

A job shop has a flexible-flow layout.

Grinding Forging Lathes

Painting Weldin Drills


g

Milling
Office machines Foundry

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Designing
Flexible-Flow Layouts

Step 1: Gather information


Space requirements by center
Available space
Closeness factors: which centers need to be located close to one
another.
Closeness matrix: A table that gives a measure of
the relative importance of each pair of centers being
located close together.
Step 2: Develop a Block plan: A plan that allocates
space and indicates placement of each department.
Step 3: Design a detailed layout.

© 2007 Pearson Education


Gather Information

Example 8.1 Office of Budget Management

Space Requirements Current Block Plan

Department Area Needed (ft2)


3 6 4
1. Administration 3,500
2. Social services 2,600 100'
3. Institutions 2,400
4. Accounting 1,600 1 2 5
5. Education 1,500
6. Internal audit 3,400
Total 15,000 150'

© 2007 Pearson Education


3 6 4

Closeness Matrix
100'

1 2 5

150'

Example 8.1 Office of Budget Management


Trips between Departments
Department 1 2 3 4 5 6
1. Administration — 3 6 5 6 10
2. Social services — 8 1 1
3. Institutions — 3 9
4. Accounting — 2
5. Education — 1
6. Internal audit —

Departments 1 and 6 have the most interaction.


Departments 3 and 5 have the next highest.
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Departments 2 and 3 have next priority.
3 6 4

Proposed Block Plan


100'

1 2 5

150'

First put departments 1 and 6 close together


Next put departments 3 and 5 close together
Then put departments 2 and 3 close together

6 2 3

100'

1 4 5

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150'
Applying the
Weighted- Distance Method

Weighted-distance method: A mathematical model


used to evaluate flexible-flow layouts based on
proximity factors.

Euclidean distance is the straight-line distance, or


shortest possible path, between two points.

Rectilinear distance: The distance between two


points with a series of 90 degree turns, as along city
blocks.

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Distance Measures

Euclidian Distance

dAB = (xA – xB)2 + (yA – yB)2

Rectilinear Distance

dAB = |xA – xB| + |yA – yB|

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Calculating the WD Score
Example 8.2 Load Distance Analysis
Current Plan Proposed Plan
Dept Closeness Distance Distance
Pair Factor, w d wd Score d wd Score
1,2 3 1 3 2 6
1,3 6 1 6 3 18
1,4 5 3 15 1 5
1,5 6 2 12 2 12
1,6 10 2 20 1 10
2,3 8 2 16 1 8
2,4 1 2 2 1 1
2,5 1 1 1 2 2
3,4 3 2 6 2 6
3,5 9 3 27 1 9
4,5 2 1 2 1 2
5,6 1 2 2 3 3
ld = 112 ld = 82
© 2007 Pearson Education
Line Flow Layout

A production line has a line-flow layout.

Station 1 Station 2 Station 3 Station 4

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Designing
Line-Flow Layouts

Line balancing is the assignment of work to stations


in a line so as to achieve the desired output rate with
the smallest number of workstations.
Work elements are the smallest units of work that can be
performed independently.
Immediate predecessors are work elements that must be done
before the next element can begin.
Precedence diagram allows one to visualize immediate
predecessors better; work elements are denoted by circles, with
the time required to perform the work shown below each circle.

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Line Balancing
Example 8.3
ning an assembly line to produce a new fertilizer spreader, the Big Broadcaster. Us

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Work Time Immediate
Element
A
Description (sec) Predecessor(s)
Bolt leg frame to hopper 40 None
Line Balancing
B
C
Insert impeller shaft
Attach axle
30
50
A
A Green Grass, Inc.
D Attach agitator 40 B
E Attach drive wheel 6 B
F Attach free wheel 25 C
G Mount lower post 15 C
H Attach controls 20 D, E D
I Mount nameplate 18 F, G H
Total 244
B 40
20
30 E
A 6
F
40 C 25
50 I
18
G
© 2007 Pearson Education 15
Desired Output and
Cycle Time

Desired output rate, r must be matched to the


staffing or production plan.

ycle time, c is the maximum time allowed for work on a unit at each s
c= 1
r

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Theoretical Minimum

Theoretical minimum (TM ) is a benchmark or goal


for the smallest number of stations possible, where
total time required to assemble each unit (the sum of
all work-element standard times) is divided by the
cycle time. It must be rounded up

ime is the total unproductive time for all stations in the assembly of e
ency (%) is the ratio of productive time to total time.
nce Delay is the amount by which efficiency falls short of 100%.

© 2007 Pearson Education


Output Rate and Cycle Time
Example 8.4

Green Grass, Inc.


Desired output rate, r = 2400/week
Plant operates 40 hours/week
r = 2400/40 = 60 units/hour

Cycle time, c = 1/60


1
= 1 minute/unit
r
= 60 seconds/unit

© 2007 Pearson Education


Calculations for
Example 8.4 continued

Theoretical minimum (TM ) - sum of all work-element


standard times divided by the cycle time.

TM = 244 seconds/60 seconds = 4.067


It must be rounded up to 5 stations

Cycle time: c = 1/60 = 1 minute/unit = 60 seconds/unit


Efficiency (%) - ratio of productive time to total time.
Efficiency = [244/5(60)]100 = 81.3%
Balance Delay - amount by which efficiency falls short of 100%.
(100 − 81.3) = 18.7%

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Line Balancing Big Broadcaster

c = 60 seconds/unit
TM = 5 stations D
Efficiency = 81.3% H
B 40
20
S1 30 E
S3 6
A S2 Cumm Idle
F Station Candidate Choice Time Time
40 C 25 S1 A A 40 20
S2 B,C
50 IC 50 10
S3 B,F,G B 30 30
E,F,G 18
F 55 5
G
15
© 2007 Pearson Education
Green Grass, Inc.
the cycle time of 60 seconds is not violated. Here we use the trial-and-error method to find

Line Balancing Solution

D
H
B 40
20
S1 30 E
S3
A S4 6
S2
F S5
40 C 25
50 I
c = 60 seconds/unit
TM = 5 stations 18
Efficiency = 81.3%
G
© 2007 Pearson Education 15
Other Considerations

In addition to balancing a line, managers must also


consider four other options:

1. Pacing: The movement of product from one


station to the next as soon as the cycle time
has elapsed.
2. Behavioral factors of workers.
3. Number of models produced: A mixed-
model line produces several items
belonging to the same family.
4. Cycle times depend on the desired output
rate, and efficiency varies considerably with
the cycle time selected.
© 2007 Pearson Education
Creating Hybrid Layouts

Layout flexibility is the property of a facility to remain


desirable after significant changes occur or to be easily
and inexpensively adopted in response to changes.
A One-worker, multiple-machines (OWMM) cell is a
one-person cell in which a worker operates several
different machines simultaneously to achieve a line flow.
A Cell is two or more dissimilar workstations located
close together through which a limited number of parts
or models are processed with line flows.

© 2007 Pearson Education


Group Technology (GT)

Group Technology (GT) is an option for


achieving line-flow layouts with low-volume
processes; this technique creates cells not
limited to just one worker and has a unique
way of selecting work to be done by the cell.

The GT method groups parts or products with


similar characteristics into families and sets
aside groups of machines for their production.

© 2007 Pearson Education


Before Group Technology
Jumbled flows in a job shop without GT cells

Lathing Milling Drillin


g
L L M M D D

D D
L L M M

Grinding

L L M M
G G

L L Assembly
G G
A A

Receiving and shipping A A G G

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Applied Group Technology
Line flows in a job shop with three GT cells

L L M D G Assembly area

Cell 1 Cell 2 A A

Receiving L M G G

Cell 3

L M D
Shipping

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Warehouse Layouts
Out-and-back Pattern

The most basic warehouse layout is the out-and-back pattern.


The numbers indicate storage areas for same or similar items.

Storage area

3 5 5 6 4 2 7

Dock Aisle

1 5 5 4 4 2 7

Storage area
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Warehouse Layouts
Zone System

Zones Zones Control station


Shipping doors

Click to add title

Tractor trailer

Tractor trailer

Feeder lines Feeder lines


Overflow
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Office Layouts

Most formal procedures for designing office layouts try


to maximize the proximity of workers whose jobs
require frequent interaction.
Privacy is another key factor in office design.
Four common office layouts:
Traditional layouts
Office landscaping (cubicles/movable partitions)
Activity settings
Electronic cottages (Telecommuting)

© 2007 Pearson Education


Lean Systems

Chapter 9

© 2007 Pearson Education


How Lean Systems
fits the Operations Management
Philosophy

Operations As a
Competitive
Weapon
Operations Strategy Process Strategy
Project Management Process Analysis
Process Performance and
Quality
Constraint Management Supply Chain Strategy
Process Layout Location
Lean Systems Inventory
Management
Forecasting
Sales and Operations
Planning
Resource Planning
Scheduling

© 2007 Pearson Education


Toyota Production System
(TPS)

Toyota Production System (TPS) is one of the most admired lean


manufacturing systems in existence.
They have a process of continuous improvement.
Work is completely specified as to content, sequence, timing, and
outcome.
Services and goods do not flow to the next available person or
machine, but to a specific person or machine.
Employees are stimulated to experiment to find better ways to do
their jobs.
Improvements to the system must be made in accordance with
the scientific method, under the guidance of a teacher, at the
lowest possible organizational level.

© 2007 Pearson Education


Lean Systems

Lean systems are operations systems that maximize


the value added by each of a company’s activities by
paring unnecessary resources and delays from them.
Just-in-time (JIT) philosophy The belief that waste
can be eliminated by cutting unnecessary capacity or
inventory and removing non-value-added activities in
operations.
JIT system: A system that organizes the resources,
information flows, and decision rules that enable a
firm to realize the benefits of JIT principles.

© 2007 Pearson Education


Characteristics
of Lean Systems

Pull method of work flow


Quality at the source
Small lot sizes
Uniform workstation loads
Standardized components & work methods
Close supplier ties
Flexible workforce
Line flows
Automation
Five S
Preventive maintenance
© 2007 Pearson Education
Push and Pull
Systems of Work Flow

Push method: A method in which production


of the item begins in advance of customer
needs.
Example: A buffet where food is prepared in advance.
Pull Method: A method in which customer
demand activates production of the service or
item.
Example: A restaurant where food is only prepared
when orders are placed.
Lean systems use the pull method of work
flow.

© 2007 Pearson Education


Characteristics
of Lean Systems

Pull method of materials flow


Quality at the source
Small lot sizes
Uniform workstation loads
Standardized components & work methods
Close supplier ties
Flexible workforce
Line flows
Automation
Five S
Preventive maintenance
© 2007 Pearson Education
Quality at the Source

Quality at the source is an organization-wide effort to


improve the quality of a firm’s products by having
employees act as their own quality inspectors, and
never pass defective units to next stage.
One approach for implementing quality at the source is
to use poka-yoke, mistake-proofing methods aimed at
designing fail safe systems that minimize human error.
Another approach for implementing quality at the
source is a practice the Japanese call jidoka, and
andon, which gives machines and machine operators
the ability to detect when an abnormal condition has
occurred.

© 2007 Pearson Education


Characteristics
of Lean Systems

Pull method of materials flow


Quality at the source
Small lot sizes
Uniform workstation loads
Standardized components & work methods
Close supplier ties
Flexible workforce
Line flows
Automation
Five S
Preventive maintenance
© 2007 Pearson Education
Small Lot Sizes

Lot: A quantity of items that are


processed together.
Setup: The group of activities needed to
change or readjust a process between
successive lots of items.
Single-digit setup: The goal of having a
setup time of less than 10 minutes.

© 2007 Pearson Education


Characteristics
of Lean Systems

Pull method of materials flow


Quality at the source
Small lot sizes
Uniform workstation loads
Standardized components & work methods
Close supplier ties
Flexible workforce
Line flows
Automation
Five S
Preventive maintenance
© 2007 Pearson Education
Uniform
Workstation Loads

A lean system works best if the daily load on


individual workstations is relatively uniform.
Service processes can achieve uniform workstation
loads by using reservation systems (e.g., scheduled
surgeries) and differential pricing to manage the
demand.
For manufacturing processes, uniform loads can be
achieved by assembling the same type and number
of units each day, thus creating a uniform daily
demand at all workstations.
Mixed-model assembly produces a mix of models in
smaller lots.

© 2007 Pearson Education


Characteristics
of Lean Systems
Pull method of materials flow
Quality at the source
Small lot sizes
Uniform workstation loads
Standardized components & work methods
Close supplier ties
Flexible workforce
Line flows
Automation
Five S
Preventive maintenance
© 2007 Pearson Education
Line Flows
and Automation

Line Flows: Managers of hybrid-office and back-office


service processes can organize their employees and
equipment to provide uniform work flows through the
process and, thereby, eliminate wasted employee
time.
Another tactic used to reduce or eliminate setups is
the one-worker, multiple-machines (OWMM)
approach, which essentially is a one-person line.
Automation plays a big role in lean systems and is a
key to low-cost operations.

© 2007 Pearson Education


Characteristics
of Lean Systems

Pull method of materials flow


Quality at the source
Small lot sizes
Uniform workstation loads
Standardized components & work methods
Close supplier ties
Flexible workforce
Line flows
Automation
Five S
Preventive maintenance
© 2007 Pearson Education
Five S (5S)

Five S (5S) A methodology consisting of five workplace


practices conducive to visual controls and lean production.
erwork), and discard the unneeded.
place. Organize the work area so that it is easy to find what is needed.

Formalize the cleanliness that results from regularly doing the first three S practices so that
stands, obeys, and practices the rules when in the plant. Implement mechanisms to sustain

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Continuous Improvement with Lean Sy

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The Single-Card Kanban System
Kanban means “card” or “visible record” in Japanese &
refers to cards used to control the flow of production through
a factory.
General Operating Rules:
Each container must have a card.
The assembly line always withdraws materials from fabrication (pull
system).
Containers of parts must never be removed from a storage area without
a kanban being posted on the receiving post.
The containers should always contain the same number of good parts.
The use of nonstandard containers or irregularly filled containers
disrupts the production flow of the assembly line.
Only nondefective parts should be passed along.
Total production should not exceed the total amount authorized on the
kanbans in the system.
©
© 2007
2007 Pearson
Pearson Education
Education
Determining the
Number of Containers
roduces rocker-arm assemblies for use in the steering and suspensio
ing and 0.08 day in materials handling and waiting during its manufac
believes that demand for the rocker-arm assembly is uncertain enoug

© 2007 Pearson Education


Calculations for
Example 9.1

Westerville Auto Parts


a. If each container contains 22 parts, how many containers should be author

d = 2000 units/day p = 0.02 day α=


0.10
w = 0.08dday
(w+p c )(
= 22
1 +units
k= α)
c
2000( 0.08 + 0.02 )( 1 + 0.10 )
k=
22
k = 10 containers
© 2007 Pearson Education
Calculations for
Example 9.1

Westerville Auto Parts


ant layout would cut materials handling and waiting time per container to 0.06 day.

d = 2000 units/day p = 0.02 day α=


0.10
w = 0.06dday
(w+p c )(
= 22
1 +units
osed change from 0.08k =
α)
c )( 1 + 0.10 )
2000( 0.06 + 0.02
k=
22

k = 8 containers
© 2007 Pearson Education
Value Stream Mapping

Product family
Value stream mapping (VSM) is a
qualitative lean tool for eliminating
waste (or muda) that involves a
Current state drawing current state drawing, a future state
drawing, and an implementation plan.

Future state drawing


apping (VSM) spans the entire value chain, from the firm’s receipt of raw materia

Work plan & implementation

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Selected Set of
Value Stream Mapping Icons

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A Representative Current State Map for a Family of Retainers at a
Bearings Manufacturing Company

© 2007 Pearson Education


Organizational
Considerations

The human costs: Lean system implementation


requires a high degree of regimentation, and
sometimes it can stress the workforce.
Cooperation & Trust: Workers and first-line
supervisors must take on responsibilities formerly
assigned to middle managers and support staff.
Reward systems and labor classifications must often
be revamped when a lean system is implemented.
Existing layouts may need to be changed.

© 2007 Pearson Education


Process Considerations
Inventory & Scheduling

Schedule Stability: Daily production schedules in


high-volume, make-to-stock environments must be
stable for extended periods.

Setups: If the inventory advantages of a lean system


are to be realized, small lot sizes must be used.

Purchasing and Logistics: If frequent, small


shipments of purchased items cannot be arranged
with suppliers, large inventory savings for these items
cannot be realized.

© 2007 Pearson Education

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