Process

Selection
and
Facility
Layout
Operations Management, Eighth Edition, by William J. Stevenson
Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved.
 1

INTRODUCTION

2
INTRODUCTIO
N
▹ PROCESS SELECTION
-deciding on the way production of
goods or services will be organized

3
 PROCESS
SELECTION
▹ MAJOR IMPLICATIONS
 Planning
 Capacity planning
 Layout of facilities
 Equipment
 Design of work systems

4
PROCESS SELECTION AND CAPACITY PLANNING
INFLUENCE SYSTEM DESIGN

Facilities and
Forecasting Capacity Equipment
Planning

Product and Layout

Service Design

Process
Technological Selection Work
Change Design
5
 PROCESS
STRATEGY
▹ KEY ASPECTS
 Capital Intensity
-mix of equipment and labor
 Process Flexibility
-degree to which the system can be
adjusted to changes

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 2

TECHNOLOGY

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TECHNOLOGY

▹ TECHNOLOGICAL INNOVATION
-discovery and development
▹ TECHNOLOGY
-application of scientific discoveries
Kinds of technology
 Product and service technology
 Process technology
 Information technology

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TECHNOLOGY

▹ ADVANTAGES
 Increase market share
 Generate substantial profits
 Increase quality
 Lowering costs
 Increase productivity
 Expanding processing capabilities

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TECHNOLOGY

▹ DISADVANTAGES
 Economic considerations
 Integration considerations
 Human considerations

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 3
PROCESS
SELECTION

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 PROCESS
SELECTION
▹ FACTORS TO BE CONSIDERED
 Variety: how much
 Flexibility: what degree
 Volume: expected output

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 PROCESS
SELECTION
▹ PROCESS TYPES
 Job shop
-small scale
 Batch
-moderate volume
 Repetitive/Assembly Line
-high volumes of standardized
goods or services

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 PROCESS
SELECTION
▹ PROCESS TYPES
 Continuous
-very high volumes of non-discrete
goods
 Product or service profiling
-used to avoid any inconsistencies

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 PROCESS
SELECTION
High Moderate Low Very Low
Low or very Job Shop
low volume Repair shop
Emergency room

Moderate Batch
volume Commercial bakery
Classroom lecture

High Repetitive
volume Assembly line
Automatic car
wash
Very high Continuous flow
volume Petroleum refining
Water treatment

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 PROCESS
SELECTION
▹ AUTOMATION
- machinery that has sensing and
control devices that enables it to
operate

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 PROCESS
SELECTION
▹ KINDS OF AUTOMATION
 Fixed automation
 Programmable automation
• Computer-aided manufacturing
• Numerically controlled
machines
 Flexible automation

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 4
FACILITIES
LAYOUT

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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

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FACILITIES
LAYOUT
▹ 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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FACILITIES
LAYOUT
▹ REASONS FOR REDESIGN OF
LAYOUT
 Inefficient operations
 Accidents or safety hazards
 Changes in the volume of output or
mix of outputs
 Changes in the methods or
equipment

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FACILITIES
LAYOUT
▹ REASONS FOR REDESIGN OF
LAYOUT
 Changes in the environmental or
other legal requirements
 Morale problems

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FACILITIES
LAYOUT
▹ TYPES OF LAYOUT
 Product layout
-uses standardized processing
operations to achieve smooth,
rapid, high-volume flow

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 Product Layout
(sequential)

Work Work Work

Station 1 Station 2 Station 3

Used for Repetitive Processing

Repetitive or Continuous
FACILITIES
LAYOUT
▹ TYPES OF LAYOUT
 Process layout
- can handle varied processing
requirements

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 Process Layout
(functional)
Dept. A Dept. C Dept. E

Dept. B Dept. D Dept. F

Used for Intermittent processing

Job Shop or Batch
FACILITIES
LAYOUT
▹ TYPES OF LAYOUT
 Fixed-position layout
- which the product or project
remains stationary, and workers,
materials, and equipment are
moved as needed

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FACILITIES
LAYOUT
▹ CELLULAR PRODUCTION
-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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FACILITIES
LAYOUT
▹ OTHER SERVICE LAYOUTS
 Warehouse and storage layouts
 Retail layouts
 Office layouts

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 5
DESIGNING
PRODUCT
LAYOUTS: LINE
BALANCING

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DESIGNIN
G
PRODUCT ▹ LINE BALANCING
LAYOUTS:
-process of assigning tasks to
LINE
BALANCIN workstations in such a way that the
G workstations have approximately equal
time requirements

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DESIGNIN
G
PRODUCT ▹ CYCLE TIME
LAYOUTS:
-maximum time allowed at each
LINE
BALANCIN workstation to complete its set of tasks
G on a unit

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DETERMIN
E
MAXIMUM
OUTPUT Operating time per day
Output rate =
Cycle time

Operating time per day

Cycle time =
Desired output rate

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DETERMINE
THE
THEORITICA
L MINIMUM
NUMBER OF
STATIONS ( t)
NECESSARY
N min =
Cycle Time
 t = sum of task times

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DESIGNIN
G
PRODUCT ▹ PRECEDENCE DIAGRAM
LAYOUTS:
- tool used in line balancing to display
LINE
BALANCIN elemental tasks and sequence
G requirements

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 EXAMPLE
OF
PRECEDENC
E DIAGRAM
0.1 min. 1.0 min.

a b

c d e
0.7 min. 0.5 min. 0.2 min.

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DESIGNIN
G
PRODUCT ▹ PERCENTAGE OF IDLE TIME
LAYOUTS:
- referred to as the balance delay
LINE
BALANCIN
G

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CALCULATE
PERCENTAG
E OF IDLE
TIME
Idle time per cycle
Percent idle time =
(N)(CT)

Efficiency = 1 – Percent idle time

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DESIGNIN
G
PRODUCT ▹ HEURISTIC RULES
LAYOUTS:  Assign tasks in order of most
LINE
BALANCIN
following tasks
G  Assign tasks in order of greatest
positional weight (the sum of each
task’s time and the times of all
following tasks)

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 6
DESIGNING
PROCESS
LAYOUTS

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DESIGNIN
G
PROCESS ▹ Layouts can be influenced by
LAYOUT external factors
 Location entrance
 Loading docks
 Elevators
 Windows
 Reinforced flooring

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DESIGNIN
G
PROCESS ▹ INFORMATION REQUIREMENTS
LAYOUT  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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Thank you for
listening!

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