6-2
Process Selection and Facility Layout
Operations Management
William J. Stevenson
8th edition
6-3
Process Selection and Facility Layout
CHAPTER
Process Selection and Facility Layout
McGraw-Hill/Irwin
Operations Management, Eighth Edition, by William J. Stevenson Copyright 2005 by The McGraw-Hill Companies, Inc. All rights reserved.
6-4
Process Selection and Facility Layout
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
6-5
Process Selection and System Design
Facilities and Equipment
Process Selection and Facility Layout
Figure 6.1
Forecasting
Capacity Planning
Product and Service Design
Process Selection
Layout
Technological Change
Work Design
6-6
Process Selection and Facility Layout
Process Strategy
Key aspects of process strategy
Capital intensive equipment/labor Process flexibility
Adjust to changes
Design Volume technology
6-7
Process Selection and Facility Layout
Process Selection
Batch Job Shop Repetitive
Variety
How much
Flexibility
What degree
Expected output
Volume
Continuous
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Process Selection and Facility Layout
Process Types
Job shop
Small scale Moderate volume
Batch
Repetitive/assembly line
High volumes of standardized goods or services
Very high volumes of non-discrete goods
Continuous
6-9
Process Selection and Facility Layout
Product Process Matrix
Figure 6.2
Process Type
Job Shop Batch
Appliance repair Emergency room Commercial bakery Classroom Lecture
Not feasible
Repetitive
Automotive assembly Automatic carwash
Continuous (flow)
Not feasible
Oil refinery Water purification
6-10 Process Selection and Facility Layout
Product Process Matrix
Figure 6.2 (contd)
Dimension Job variety Process flexibility Unit cost Volume of output Very High Very High Very High Very High Moderate Moderate Moderate Low Low Low Low High Very low Very low Very low Very low
6-11 Process Selection and Facility Layout
Automation
Automation: Machinery that has sensing and control devices that enables it to operate
Fixed automation Programmable automation
6-12 Process Selection and Facility Layout
Automation
Computer-aided design and manufacturing systems (CAD/CAM) Numerically controlled (NC) machines Robot Manufacturing cell Flexible manufacturing systems(FMS) Computer-integrated manufacturing (CIM)
6-13 Process Selection and Facility Layout
Facilities Layout
Layout: the configuration of departments, work centers, and equipment, with particular emphasis on movement of work (customers or materials) through the system
6-14 Process Selection and Facility 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
6-15 Process Selection and Facility Layout
The Need for Layout Decisions
Inefficient operations
For Example:
High Cost Bottlenecks
Changes in the design of products or services
Accidents
The introduction of new products or services
Safety hazards
6-16 Process Selection and Facility Layout
The Need for Layout Design (Contd)
Changes in environmental or other legal requirements
Changes in volume of output or mix of products Morale problems
Changes in methods and equipment
6-17 Process Selection and Facility Layout
Basic Layout Types
Product layouts Process layouts Fixed-Position layout Combination layouts
6-18 Process Selection and Facility Layout
Basic Layout Types
Product layout
Layout that uses standardized processing operations to achieve smooth, rapid, highvolume flow Layout that can handle varied processing requirements Layout in which the product or project remains stationary, and workers, materials, and equipment are moved as needed
Process layout
Fixed Position layout
6-19 Process Selection and Facility Layout
Product Layout
Figure 6.4
Raw materials or customer
Material and/or labor
Station 1 Material and/or labor
Station 2
Material and/or labor
Station 3
Material and/or labor
Station 4
Finished item
Used for Repetitive or Continuous Processing
6-20 Process Selection and Facility Layout
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
6-21 Process Selection and Facility Layout
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
6-22 Process Selection and Facility Layout
A U-Shaped Production Line
Figure 6.6
In
4 5
Workers
6
Out
10
6-23 Process Selection and Facility Layout
Process Layout
Process Layout (functional)
Figure 6.7
Dept. A Dept. B
Dept. C Dept. D
Dept. E Dept. F
Used for Intermittent processing Job Shop or Batch
6-24 Process Selection and Facility Layout
Product Layout
Product Layout (sequential)
Figure 6.7 (contd)
Work Station 1
Work Station 2
Work Station 3
Used for Repetitive Processing Repetitive or Continuous
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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
6-26 Process Selection and Facility Layout
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 involved
6-27 Process Selection and Facility Layout
Cellular Layouts
Cellular Production
Layout in which machines are grouped into a cell that can process items that have similar processing requirements The grouping into part families of items with similar design or manufacturing characteristics
Group Technology
6-28 Process Selection and Facility Layout
Functional vs. Cellular Layouts
Dimension Functional
many
longer variable greater higher higher higher higher lower
Table 6.3 Cellular
few
shorter fixed shorter lower lower lower lower higher
Number of moves between departments
Travel distances Travel paths Job waiting times Throughput time Amount of work in process Supervision difficulty Scheduling complexity Equipment utilization
6-29 Process Selection and Facility Layout
Other Service Layouts
Warehouse and storage layouts Retail layouts Office layouts
6-30 Process Selection and Facility Layout
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.
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Cycle Time
Cycle time is the maximum time allowed at each workstation to complete its set of tasks on a unit.
6-32 Process Selection and Facility Layout
Determine Maximum Output
OT O utput capacity = CT O T operating tim e per day D = Desired output rate OT CT = cycle tim e = D
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Determine the Minimum Number of Workstations Required
N =
(D)( t) OT
t = sum of task times
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Precedence Diagram
Figure 6.10
Precedence diagram: Tool used in line balancing to display elemental tasks and sequence requirements
0.1 min. 1.0 min.
a c
0.7 min.
b d
0.5 min.
A Simple Precedence Diagram
e
0.2 min.
6-35 Process Selection and Facility Layout
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
6-36 Process Selection and Facility Layout
Example 1 Solution
Assign Task
a c b d e -
Workstation
1
Time Remaining
1.0 0.9 0.2 1.0 1.0 0.5 0.3
Eligible
a, c c none b d e -
Revised Time Remaining
0.9 0.2
Station Idle Time
0.2
0.0 0.5 0.3 0.0 0.3 0.5
2 3
6-37 Process Selection and Facility Layout
Calculate Percent Idle Time
Idle time per cycle Percent idle time = (N)(CT)
Efficiency = 1 Percent idle time
6-38 Process Selection and Facility Layout
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.
6-39 Process Selection and Facility Layout
Example 2
0.2
0.2
0.3
a
0.8
b
0.6
f
1.0
g
0.4
h
0.3
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Solution to Example 2
Station 1
Station 2
Station 3
Station 4
a
c
e f d
6-41 Process Selection and Facility Layout
Parallel Workstations
1 min. 30/hr. 2 min. 30/hr. 1 min. 30/hr.
1 min.
30/hr.
Bottleneck
30/hr. 1 min.
60/hr. 1 min. 30/hr.
1 min.
30/hr. 1 min. 30/hr.
1 min.
60/hr.
Parallel Workstations
6-42 Process Selection and Facility Layout
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
6-43 Process Selection and Facility Layout
Figure 6.12
Example 3: Interdepartmental Work Flows for Assigned Departments
30
1
170
10 0
6-44 Process Selection and Facility Layout
Authors note:
The following three slides are not in the 8e, but I like to use them for alternate examples.
6-45 Process Selection and Facility Layout
Process Layout
Milling
Assembly & Test
Grinding
Drilling
Plating
Process Layout - work travels to dedicated process centers
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Functional Layout
222 444
Mill
222 111 444
222
Drill
1111 2222
Grind
3333
111 333
111 333
Assembly
111
Lathes
Heat treat
Gear cutting
111 444
6-47 Process Selection and Facility Layout
Cellular Manufacturing Layout
Lathe Mill Drill
Heat treat Heat treat Gear -1111 cut Grind - 2222 Assembly
-1111
222222222
Mill
Drill
3333333333
Lathe Mill
Heat treat
Drill
Grind - 3333
44444444444444
Mill
Gear - 4444 cut