Chapter 6

Process Selection
and Facility
Layout

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Chapter 6: Learning Objectives
You should be able to:
LO 6.1 Explain the strategic importance of process selection
and the influence it has on the organization and its
supply chain
LO 6.2 Name the two main factors that influence process
selection
LO 6.3 Compare the four basic processing types
LO 6.4 Explain the need for management of technology
LO 6.5 List some reasons for redesign of layouts
LO 6.6 Describe product layouts and their main advantages
and disadvantages
LO 6.7 Describe process layouts and their main advantages
and disadvantages
LO 6.8 Solve simple line-balancing problems
LO 6.9 Develop simple process layouts 6-2
 Process Selection
Process selection
Refers to deciding on the way production of
goods or services will be organized
It has major implications for
Capacity planning
Layout of facilities
Equipment
Design of work systems

6-3
LO 6.1
 Process Selection
Two key questions in process selection:
1. How much variety will the process need to
be able to handle?
2. How much volume will the process need to
be able to handle?

Job Shop

Batch

Continuou
Repetitive
s

6-4
LO 6.2
 Types of Processing
Repetitive/
Job Shop Batch Assembly Continuous
Description Customized Semi- Standardized Highly
goods or standardized goods or standardized
services goods or services Goods or
services services
Advantages Able to handle a Flexibility; easy Low unit Very efficient, very
wide variety to add or cost, high high volume
of work change volume,
products or efficient
services
Disadvantage Slow, high cost Moderate cost Low flexibility, Very rigid, lack of
s per unit, per unit, high cost of variety, costly
complex moderate downtime to change, very
planning and scheduling high cost of
scheduling complexity downtime

6-5
LO 6.3
 The Need to Manage Technology
Process technology and information
technology can have a profound impact
on:
Costs
Productivity
Competitiveness

6-6
LO 6.4
 The Need for Layout Planning
1. Inefficient operations
High cost
Bottlenecks
2. Accidents or safety hazards
3. Changes in product or service design
4. Introduction of new products or services
5. Changes in output volume or product mix
6. Changes in methods or equipment
7. Changes in environmental or other legal
requirements
8. Morale problems
6-7
LO 6.5
 Repetitive Processing: Product Layouts
Product layout
Layout that uses standardized processing
operations to achieve smooth, rapid, high-
volume flow
Raw materials
Station Station Station Station Finished
or customer item
1 2 3 4

Material Material Material Material

and/or and/or and/or and/or

labor labor labor labor
Used for Repetitive Processing
Repetitive or Continuous
6-8
LO 6.6
 Non-repetitive Processing: Process
Layouts
Process layouts
Layouts that can handle varied processing
requirements

Dept. A Dept. C Dept. E

Dept. B Dept. D Dept. F

Used for Intermittent processing

Job Shop or Batch 6-9
LO 6.7
Fixed Position Layouts
Fixed Position layout
Layout in which the product or project remains
stationary, and workers, materials, and
equipment are moved as needed

6-10
 Line Balancing
Line balancing
The process of assigning tasks to workstations in
such a way that the workstations have
approximately equal time requirements
Goal:
Obtain task grouping that represent approximately
equal time requirements since this minimizes idle time
along the line and results in a high utilization of
equipment and labor
Why is line balancing important?
1. It allows us to use labor and equipment more efficiently.
2. To avoid fairness issues that arise when one workstation
must work harder than another.

6-11
LO 6.8
 Cycle Time
Cycle time
The maximum time allowed at each workstation
to complete its set of tasks on a unit
Cycle time also establishes the output rate of a
line
Operating time per day
Cycle time
Desired output rate

Operating time per day

Output rate
Cycle time

6-12
LO 6.8
 How Many Workstations are
Needed?
The required number of workstations is a
function of
Desired output rate
Our ability to combine tasks into a workstation
Theoretical minimum number of stations

N min
t
Cycle time
where
N min theoretica l minimum number of stations
t Sum of task time s
6-13
LO 6.8
 Designing Process Layouts
The main issue in designing process layouts
concerns the relative placement of the
departments
Measuring effectiveness
A major objective in designing process layouts
is to minimize transportation cost, distance, or
time

6-14
LO 6.9
 Information Requirements
In designing process layouts, the following
information is required:
1. A list of departments to be arranged and their
dimensions
2. A projection of future work flows between the pairs of
work centers
3. The distance between locations and the cost per unit of
distance to move loads between them
4. The amount of money to be invested in the layout
5. A list of any special considerations
6. The location of key utilities, access and exit points, etc.

6-15
LO 6.9