Introduction to Process Design & Facility Layout

Debasish N. Mallick, Ph.D.

Spring 2012

4/26/2012

2007 University of St. Thomas, Opus College of Business

Today
Operations Management Design of Operations Project Management Quality Management Product design Service design Process Design Facilities Planning Supply Chain Management Forecasting

Operations Context Ethical Issues Operations Strategy

Aggregate Planning
Inventory Management

MRP, ERP Systems

JIT Manufacturing

Agenda
What is a process? Why processes? Process Analysis Business Process Reengineering (BPR) Process Structure Facility Layout

What is a process?
Tasks, Flow and Storage Beginning & End Input & Output

Structure for Action

Process-View of Business
CEO

Marketing

Operations

Finance

Business Processes
Product Development Manufacturing/Service Customer Acquisition Integrated Logistics Order Management Post-Sales Service Performance Monitoring Asset Management Personal Management Planning/Resource Allocation

Manufacturing: A Conversion Process

Extraction Bulk Form Discrete Parts

Assembly
System Integration

Types of Operations

Process Operations

Discrete Operation

Vertical Integration
Components (Microprocessor) Backward integration Assembly (Motherboard) Forward integration In-house processes

System Integration (PC)

Process Design Considerations

Process Flow Process Structure Facility Layout Choice of Technology Tooling & Equipment Job Design

Process Design Tools

Assembly Drawing Product Structure Tree Bill of Material Assembly Chart Route Sheets Process Flow Chart

Assembly Drawing

Product Structure Tree

Paddle

Main Piece

Handle Facing (2)

Rubber Surface(2)

Bill of Materials
Paddle Main Piece Handle Facing Rubber Surface

1 2 2

Process Mapping Symbols

Task Flow Storage Inspection

Delay

Source: SME

Assembly Chart

Route Sheet

Process Mapping Symbols (Updated)

Task

Flow

Storage

Decision

Process Flow Chart

Process Performance
Setup time: the time required to prepare a machine/workstation to make a particular unit Run time: the time required to produce a batch of parts/units (time required to produce each unit x batch size) Operation time: Setup time + Run time

Example
Consider a cereal-boxing machine that produces 30 boxes per minute. The machine can handle two box sizes (16 oz and 12 oz). It takes 30 minutes to switch from 16-oz boxes to 12-oz boxes. How many minutes does it take to a batch of 10,000 12-oz boxes? What is the operation time?

Process Performance
Throughput time: the average time for a unit to move through the system (includes time waiting in queue). Cycle Time: the average time between completions of two successive units. Throughput rate: 1 Cycle time

A Single Stage Process

What is the Cycle Time? What is the Throughput Rate?

A Multistage Process

What is the Throughput Time? What is the Cycle Time? What is the Throughput Rate?

Process Terminologies
Blocking: the activities in a stage must stop because there is no place to deposit the item just completed Starving: the activities in a stage must stop because there is no work Buffer: a storage area between stages where the output of a stage is placed prior to being used in a downstream stage

A Multistage Process with Buffer

What is the Throughput Time? What is the Cycle Time? What is the Throughput Rate?

Process Performance
Work-in-process (WIP): Semi-finished or materials being worked on Littles Law: Average WIP = Throughput Time x Throughput Rate

Questions to Ask in PFA

What does the customer need? What operations are necessary? Can some operations be eliminated, combined, or simplified? Who is performing the job? Can the operation be redesigned to use less skill or less labor? Can operations be combined to enrich jobs? Where is each operation conducted? Can layout be improved? When is each operation performed? Is there excessive delay or storage? Are some operations creating bottlenecks? How is the operation done? Can better methods, procedures, or equipment be used?

BPR Philosophy
Does the reengineering consultant see the glass as half full or half empty?

Process Structure
Project Job shop Batch process Line flow Continuous process

Hybrid

Project

Job Shop

Batch Process

Line Flow

Continuous process

Issues

How will you compete in the market?

How will you manage your business?

Process Structure and Competition

Types
Project Job Shop
Cost Quality Flexibility Speed Service

Batch
Line Flow Continuous

Process Structure and Strategy

Types
Project Job Shop
Technology Labor Materials Planning Focus

Batch
Line Flow Continuous

Less Customization and Higher Volume Product Design

(1) One of a kind products, made to customer order (2) Low volume, low standardization (3) Multiple products moderate volume (4) Few major products, higher volume (5) High volume high standardization, commodity products

Process Characteristics
(1) Complex and highly customized process, unique sequence of tasks (2) Jumbled flows, complex work with many exceptions

Less Complexity, Less Divergence, More Line Flows

Project process

Cellular manufacturers

Job process

(3) Disconnected line flows, moderately complex work

Batch process

(4) Connected line, routine work (5) Continuous flows, highly repetitive work

Line process

Mass customizers

Continuous process

Layout Planning

Layout planning determines where departments and workstations should be located for a smooth-flowing and efficient system.

Importance of Layout Planning

Flow of Materials Flow of Information Equipment Utilization Labor Utilization Employee Morale Customer Perception

Factors Affecting Layout Design

Output Flexibility Processing Requirements Materials Handling Maintenance Requirement Space Availability

Layout Types
Fixed-Position Layout Process Layout

Product Layout
Cellular Layout

Process (Functional) Layout

Cutting Admissions

Drilling Radiology

Grinding Surgery

Finishing
Recovery

Lower Florida Keys Health System

First Floor

Process Layout :Advantages

General purpose Less Capital Intensive

Less vulnerable to changes

Equipment utilization Employee supervision

Process Layout: Disadvantages

Slower processing rate Lost production time for setups

Higher inventory costs

Longer manufacturing lead-times Difficulty in material handling

Product (Line) Layout

Product family A

Product family B

Assembly Line: General Motors

Product Layout: Advantages

Faster processing rates
Lower inventory Infrequent setups Easier planning and control

Product Layout: Disadvantages

Capital Intensive
Risk of layout redesign Less flexibility Low utilization at low volume

Cellular (Group) Layout

Product family A Family practice

Product family B
Orthopedics

Product family C Dermatology

Product family D
Coronary bypass

Cellular Assembly at Dell Computer

Process Layout Design

Space Requirements Available Space

Closeness Factor
Block Plan Detailed Layout

Example: Process Layout Design

Longhorn Machine produces a variety of small metal parts using general-purpose equipment. A Full shift of 26 workers and a second shift of 6 workers operate its 32 machines. Longhorn has grouped its processes into six different departments. The space requirements of each department are known. The level of materials movement in number of trips between each pair of departments is also known.

Longhorns available space is 90 ft by 60 ft. Develop a layout for minimizing the material handling.
Source: Krajewski and Ritzman (1996)

The space requirements of each department are listed below:

Department
1. Burr and Grinding 2. NC Equipment 3. Shipping and Receiving 4. Lathes and Drills 5. Tool crib 6. Inspection

Space Required (Square ft)

1000 950 750 1200 800 700

TOTAL

5400

A measure of materials movement in number of trips between each pair of departments is presented in the table below:

Department
1. Burr and Grinding 2. NC Equipment 3. Shipping and Receiving 4. Lathes and Drills 5. Tool crib

2
20

4
20

6
80

10 15

75 90 70

6. Inspection

Develop & Evaluate Block Plan #1

Department Load Distance Load-Distance

1,2

20 20 80 10 75 15

2 6

4 5

3 1

1,4 1,6 2,3 2,5 3,4

3,6
4,5

90
70 Total

Product Layout Design

Desired Output/ Cycle Time Work Element Minimum Number of Work Stations Precedence Diagram Idle Time Efficiency Balance Delay

Example: Product Layout Design

Green Grass, Inc., is designing an assembly line to produce a new fertilizer spreading machine, the Big Broadcaster. Green Grasss plant manager has just received marketings latest forecasts of Big Broadcaster sales for the next year. She wants its production line to be designed to make 2400 spreaders per week for at least the next three months. The plant will operate 40 hours per week. a. What should be the lines cycle time? b. What is the theoretical number of workstations? c. What should be the lines efficiency?

The following table provides estimates for each work elements required to assemble the Big Broadcaster:

Work Element

Description

Time (sec)

Immediate Predecessors

A
B C D E F G H I

Bolt frame to Hopper

Insert Impeller Shaft Attach axle Attach agitator Attach drive wheel Attach free wheel Mount lower post Attach controls Mount nameplate

40
30 50 40 6 25 15 20 18

None
A A B B C C D,E F,G

Solution
Throughput= Cycle time=

Minimum Number of Workstations=

Efficiency= Balance Delay=

Example: Product Layout Design

B,30 D,40 H,20 A,40 F,25 I,18 C,50 G,15 E,6

Station

Candidate

Choice

Time

Idle Time

Layout Design: Characteristics

Straight-Line Flow Predictable Time Low Work-in-Process Transparent Ease of Material Handling Flexible

Takeaways
It is not a competency unless it is a process. Process mapping can help you analyze and improve your processes - You do not really understand a process until you map it. Process design will affect the way you will compete in the market. Process design will affect the you will manage your business.

Learning never ends.

When Should a Process Be Art, Not Science Joseph M. Hall and M. Eric Johnson, Harvard Business Review, March 2009. Chapters 5, 6, & 6A: Operations & Supply Chain Management - by F. Robert Jacobs and Richard B. Chase, 13th Edition, McGraw-Hill/Irwin, 2011. OPMT 635: Process Analysis, Lean and Agile Organizations Society of Manufacturing Engineers (SME) www.sme.org

Thank You!