6

Process Selection
and Facility Layout

McGraw-Hill/Irwin Copyright 2007 by The McGraw-Hill Companies, Inc. All rights reserved.
 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.
6-2
 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.

6-3
 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

6-4
 Process Selection and
Figure 6.1
System Design

Facilities and
Forecasting Capacity Equipment
Planning

Product and Layout

Service Design

Process
Technological Selection Work
Change Design

6-5
 Process Strategy
Key aspects of process strategy
Capital intensive equipment/labor
Process flexibility
Technology
Adjust to changes
Design
Volume
technology

6-6
 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.

6-7
 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

6-8
 Technology Competitive
Advantage
Innovations in
Products and services
Cell phones
PDAs
Wireless computing
Processing technology
Increasing productivity
Increasing quality
Lowering costs

6-9
 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

6-10
 Process Selection

Variety Batch
How much
Flexibility
Job Shop Repetitive
What degree
Volume
Expected output Continuous

6-11
 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

6-12
 Product and Service
Figure 6.2 Processes
Process Type
Job Shop Appliance repair Ineffective
Emergency
room
Batch Commercial
baking
Classroom
Lecture
Repetitive Automotive
assembly
Automatic
carwash
Continuous Ineffective Steel Production
Water purification
(flow)

6-13
 Product Process Matrix
Figure 6.2 (contd)

Dimension
Job variety Very High Moderate Low Very low
Process Very High Moderate Low Very low
flexibility

Unit cost Very High Moderate Low Very low

Volume of Very High Low High Very low
output

6-14
 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
6-15
 Automation
Automation: Machinery that has sensing
and control devices that enables it to
operate
Fixed automation
Programmable automation

6-16
 Automation
Computer-aided design and
manufacturing systems (CAD/CAM)
Numerically controlled (NC) machines
Robot
Manufacturing cell
Flexible manufacturing systems(FMS)
Computer-integrated manufacturing (CIM)

6-17
 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

6-18
 Objective of Layout Design
1. Facilitate attainment of product or service
quality
2. Use workers and space efficiently
3. Avoid bottlenecks
4. Minimize unnecessary material handling
costs
5. Eliminate unnecessary movement of
workers or materials
6. Minimize production time or customer
service time
7. Design for safety 6-19
 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

6-20
 The Need for Layout Decisions

Inefficient operations
For Example: Changes in the design
High Cost of products or services
Bottlenecks

Accidents
The introduction of new
products or services

Safety hazards

6-21
 The Need for Layout Design
(Contd)
Changes in
environmental Changes in volume of
or other legal output or mix of
requirements products

Morale problems
Changes in methods
and equipment

6-22
 Basic Layout Types

Product layouts
Process layouts
Fixed-Position layout
Combination layouts

6-23
 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

6-24
 Product Layout
Figure 6.4

Raw
Station Station Station Station Finished
materials 1 2 3 4 item
or customer
Material Material Material Material
and/or and/or and/or and/or
labor labor labor labor

Used for Repetitive or Continuous Processing

6-25
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

6-26
 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

6-27
 A U-Shaped Production Line
Figure 6.6

In 1 2 3 4

Workers

Out 10 9 8 7

6-28
 Process Layout
Figure 6.7
Process Layout
(functional)

Dept. A Dept. C Dept. E

Dept. B Dept. D Dept. F

Used for Intermittent processing

Job Shop or Batch Processes

6-29
 Product Layout
Figure 6.7 (contd)
Product Layout
(sequential)

Work Work Work

Station 1 Station 2 Station 3

Used for Repetitive Processing

Repetitive or Continuous Processes

6-30
 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

6-31
 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
6-32
 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
6-33
 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

6-34
 Functional vs. Cellular Layouts
Table 6.3
Dimension Functional Cellular
Number of moves many few
between departments
Travel distances longer shorter
Travel paths variable fixed
Job waiting times greater shorter
Throughput time higher lower
Amount of work in higher lower
process
Supervision difficulty higher lower
Scheduling complexity higher lower
Equipment utilization lower higher

6-35
 Service Layouts
Warehouse and storage layouts
Retail layouts
Office layouts
Service layouts must be aesthetically
pleasing as well as functional

6-36
 Design Product Layouts: Line
Balancing

Line Balancing is the process of assigning

tasks to workstations in such a way that
the workstations have approximately
equal time requirements.

6-37
 Cycle Time

Cycle time is the maximum time

allowed at each workstation to
complete its set of tasks on a unit.

6-38
Determine Maximum Output

OT
Output rate =
CT

OT operating time per day

D = Desired output rate

OT
CT = cycle time =
D
6-39
Determine the Minimum Number
of Workstations Required

( t)
N=
CT

t = sum of task time

6-40
 Precedence Diagram
Figure 6.11

Precedence diagram: Tool used in line balancing to

display elemental tasks and sequence requirements
0.1 min. 1.0 min.
A Simple Precedence
a b Diagram

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

6-41
 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

6-42
 Example 1 Solution

Revised
Time Assign Time Station
Workstation Remaining Eligible Task Remaining Idle Time
1 1.0 a, c a 0.9
0.9 c c 0.2
0.2 none - 0.2
2 1.0 b b 0.0 0.0
3 1.0 d d 0.5
0.5 e e 0.3 0.3
0.3 - - 0.5

6-43
 Calculate Percent Idle Time

Idle time per cycle

Percent idle time =
(N)(CT)

Efficiency = 1 Percent idle time

6-44
 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.

6-45
 Example 2

0.2 0.2 0.3

a b e

0.8 0.6
c d f g h
1.0 0.4 0.3

6-46
 Solution to Example 2

Station 1 Station 2 Station 3 Station 4

a b e
f g h
c d

6-47
 Bottleneck Workstation

30/hr. 30/hr. 30/hr. 30/hr.

1 min. 1 min. 2 min. 1 min.

Bottleneck

6-48
 Parallel Workstations

30/hr. 2 min. 30/hr.

60/hr. 60/hr.
1 min. 1 min. 1 min.
30/hr.
2 min. 30/hr.

Parallel Workstations

6-49
 Designing Process Layouts
Information Requirements:
1. List of departments
2. Projection of work flows
3. Distance between locations
4. Amount of money to be invested
5. List of special considerations
6. Location of key utilities

6-50
 Example 3: Interdepartmental Work
Flows
Figure 6.13 for Assigned Departments

30

170 10
1 3 2
0

A B C

6-51
 PowerPoint Authors note:
The following three slides are not in the 9e
text, but I like to use them for alternate
examples.

6-52
 Process Layout
Milling

Assembly
Grinding
& Test

Drilling Plating
Process Layout - work travels
to dedicated process centers

6-53
 Functional Layout

222 222 222

111 Drill Grind
444 Mill 3333
444

1111 2222 Assembly

111 333
111 111
Heat 111 Gear
333 Lathes
treat cutting 444

6-54
 Cellular Manufacturing Layout
Heat Gear
-1111 Lathe Mill Drill -1111
treat cut

Heat

Assembly
222222222 Mill Drill Grind - 2222
treat

Heat
3333333333 Lathe Mill Grind - 3333
treat

44444444444444 Mill Drill Gear - 4444

cut

6-55
Video: Process Design

6-56
Video: Process Implementation

6-57
Video: Process Mapping

6-58