chap006 - process selection and facility layout

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6-1 Process Selection and Facility Layout William J. Stevenson Operations Management 8 th edition

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Page 1: Chap006 - Process Selection and Facility Layout

S P CHHEDA & CO.

6-1 Process Selection and Facility Layout

William J. Stevenson

Operations Management

8th edition

Page 2: Chap006 - Process Selection and Facility Layout

S P CHHEDA & CO.

6-2 Process Selection and Facility Layout

Page 3: Chap006 - Process Selection and Facility Layout

S P CHHEDA & CO.

6-3 Process Selection and Facility Layout

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

Introduction

Page 4: Chap006 - Process Selection and Facility Layout

S P CHHEDA & CO.

6-4 Process Selection and Facility Layout

Forecasting

Product andService Design

TechnologicalChange

CapacityPlanning

ProcessSelection

Facilities andEquipment

Layout

WorkDesign

Figure 6.1

Process Selection and System Design

Page 5: Chap006 - Process Selection and Facility Layout

S P CHHEDA & CO.

6-5 Process Selection and Facility Layout

• Key aspects of process strategy– Capital intensive – equipment/labor

– Process flexibility

– Adjust to changes

– Design

– Volume

– technology

Process Strategy

Page 6: Chap006 - Process Selection and Facility Layout

S P CHHEDA & CO.

6-6 Process Selection and Facility Layout

Variety How much

Flexibility What degree

Volume Expected output

Job Shop

Batch

Repetitive

Continuous

Process Selection

Page 7: Chap006 - Process Selection and Facility Layout

S P CHHEDA & CO.

6-7 Process Selection and Facility Layout

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

Process Types

Page 8: Chap006 - Process Selection and Facility Layout

S P CHHEDA & CO.

6-8 Process Selection and Facility Layout

Process Type

Job Shop Appliance repairEmergency

room

Not feasible

Batch Commercialbakery

ClassroomLecture

Repetitive Automotiveassembly

Automaticcarwash

Continuous(flow)

Notfeasible

Oil refineryWater purification

Figure 6.2Product – Process Matrix

Page 9: Chap006 - Process Selection and Facility Layout

S P CHHEDA & CO.

6-9 Process Selection and Facility Layout

Dimension

Job variety Very High Moderate Low Very low

Process flexibility

Very High Moderate Low Very low

Unit cost Very High Moderate Low Very low

Volume of output

Very High Low High Very low

Figure 6.2 (cont’d)Product – Process Matrix

Page 10: Chap006 - Process Selection and Facility Layout

S P CHHEDA & CO.

6-10 Process Selection and Facility Layout

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

Automation

Page 11: Chap006 - Process Selection and Facility Layout

S P CHHEDA & CO.

6-11 Process Selection and Facility Layout

• Computer-aided design and manufacturing systems (CAD/CAM)

• Numerically controlled (NC) machines

• Robot

• Manufacturing cell

• Flexible manufacturing systems(FMS)

• Computer-integrated manufacturing (CIM)

Automation

Page 12: Chap006 - Process Selection and Facility Layout

S P CHHEDA & CO.

6-12 Process Selection and Facility Layout

Layout: the configuration of departments, work centers, and equipment, with particular emphasis on movement of work (customers or materials) through the system

Facilities Layout

Page 13: Chap006 - Process Selection and Facility Layout

S P CHHEDA & CO.

6-13 Process Selection and Facility Layout

Requires substantial investments of money and effort

Involves long-term commitments Has significant impact on cost and

efficiency of short-term operations

Importance of Layout Decisions

Page 14: Chap006 - Process Selection and Facility Layout

S P CHHEDA & CO.

6-14 Process Selection and Facility Layout

Inefficient operations

For Example:

High CostBottlenecks

Changes in the designof products or services

The introduction of newproducts or services

Accidents

Safety hazards

The Need for Layout Decisions

Page 15: Chap006 - Process Selection and Facility Layout

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6-15 Process Selection and Facility Layout

Changes inenvironmentalor other legalrequirements

Changes in volume ofoutput or mix of

products

Changes in methodsand equipment

Morale problems

The Need for Layout Design (Cont’d)

Page 16: Chap006 - Process Selection and Facility Layout

S P CHHEDA & CO.

6-16 Process Selection and Facility Layout

Product layouts

Process layouts

Fixed-Position layout

Combination layouts

Basic Layout Types

Page 17: Chap006 - Process Selection and Facility Layout

S P CHHEDA & CO.

6-17 Process Selection and Facility Layout

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

Basic Layout Types

Page 18: Chap006 - Process Selection and Facility Layout

S P CHHEDA & CO.

6-18 Process Selection and Facility Layout

Raw materialsor customer

Finished item

Station 2

Station 2

Station 3

Station 3

Station 4

Station 4

Material and/or labor

Station 1

Material and/or labor

Material and/or labor

Material and/or labor

Used for Repetitive or Continuous Processing

Figure 6.4Product Layout

Page 19: Chap006 - Process Selection and Facility Layout

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6-19 Process Selection and Facility 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

Advantages of Product Layout

Page 20: Chap006 - Process Selection and Facility Layout

S P CHHEDA & CO.

6-20 Process Selection and Facility 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

Disadvantages of Product Layout

Page 21: Chap006 - Process Selection and Facility Layout

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6-21 Process Selection and Facility Layout

1 2 3 4

5

6

78910

In

Out

Workers

Figure 6.6A U-Shaped Production Line

Page 22: Chap006 - Process Selection and Facility Layout

S P CHHEDA & CO.

6-22 Process Selection and Facility Layout

Dept. A

Dept. B Dept. D

Dept. C

Dept. F

Dept. E

Used for Intermittent processingJob Shop or Batch

Process Layout(functional)

Figure 6.7Process Layout

Page 23: Chap006 - Process Selection and Facility Layout

S P CHHEDA & CO.

6-23 Process Selection and Facility Layout

Work Station 1

Work Station 2

Work Station 3

Figure 6.7 (cont’d)

Product Layout(sequential)

Used for Repetitive ProcessingRepetitive or Continuous

Product Layout

Page 24: Chap006 - Process Selection and Facility Layout

S P CHHEDA & CO.

6-24 Process Selection and Facility Layout

Can handle a variety of processing requirements

Not particularly vulnerable to equipment failures

Equipment used is less costly Possible to use individual incentive plans

Advantages of Process Layouts

Page 25: Chap006 - Process Selection and Facility Layout

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6-25 Process Selection and Facility Layout

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

Disadvantages of Process Layouts

Page 26: Chap006 - Process Selection and Facility Layout

S P CHHEDA & CO.

6-26 Process Selection and Facility Layout

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

Cellular Layouts

Page 27: Chap006 - Process Selection and Facility Layout

S P CHHEDA & CO.

6-27 Process Selection and Facility Layout

Dimension Functional Cellular

Number of moves between departments

many few

Travel distances longer shorter

Travel paths variable fixed

Job waiting times greater shorter

Throughput time higher lower

Amount of work in process

higher lower

Supervision difficulty higher lower

Scheduling complexity higher lower

Equipment utilization lower higher

Table 6.3Functional vs. Cellular Layouts

Page 28: Chap006 - Process Selection and Facility Layout

S P CHHEDA & CO.

6-28 Process Selection and Facility Layout

Warehouse and storage layouts Retail layouts Office layouts

Other Service Layouts

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6-29 Process Selection and Facility Layout

Line Balancing is the process of assigning tasks to workstations in such a way that the workstations have approximately equal time requirements.

Design Product Layouts: Line Balancing

Page 30: Chap006 - Process Selection and Facility Layout

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6-30 Process Selection and Facility Layout

Cycle time is the maximum time allowed at each workstation tocomplete its set of tasks on a unit.

Cycle Time

Page 31: Chap006 - Process Selection and Facility Layout

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6-31 Process Selection and Facility Layout

O utput capac ity = O T

C T

O T operating tim e per day

D = D es ired output ra te

C T = cyc le tim e = O T

D

O utput capac ity = O T

C T

O T operating tim e per day

D = D es ired output ra te

C T = cyc le tim e = O T

D

Determine Maximum Output

Page 32: Chap006 - Process Selection and Facility Layout

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6-32 Process Selection and Facility Layout

N = (D)( t)

OT

t = sum of task times

Determine the Minimum Number of Workstations Required

Page 33: Chap006 - Process Selection and Facility Layout

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6-33 Process Selection and Facility Layout

Precedence diagram: Tool used in line balancing to display elemental tasks and sequence requirements

A Simple Precedence Diagrama b

c d e

0.1 min.

0.7 min.

1.0 min.

0.5 min. 0.2 min.

Figure 6.10Precedence Diagram

Page 34: Chap006 - Process Selection and Facility Layout

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6-34 Process Selection and Facility Layout

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

Example 1: Assembly Line Balancing

Page 35: Chap006 - Process Selection and Facility Layout

S P CHHEDA & CO.

6-35 Process Selection and Facility Layout

Workstation

TimeRemaining

EligibleAssignTask

RevisedTime Remaining

StationIdle Time

1 1.0

0.9

0.2

a, c

c

none

a

c

-

0.9

0.2

0.2

2 1.0 b b 0.0 0.0

3 1.0

0.5

0.3

d

e

-

d

e

-

0.5

0.3 0.3

0.5

Example 1 Solution

Page 36: Chap006 - Process Selection and Facility Layout

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6-36 Process Selection and Facility Layout

Percent idle time = Idle time per cycle

(N)(CT)

Efficiency = 1 – Percent idle time

Calculate Percent Idle Time

Page 37: Chap006 - Process Selection and Facility Layout

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6-37 Process Selection and Facility Layout

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 task’s

time and the times of all following tasks.

Some Heuristic (intuitive) Rules:

Line Balancing Rules

Page 38: Chap006 - Process Selection and Facility Layout

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6-38 Process Selection and Facility Layout

c d

a b e

f g h

0.2 0.2 0.3

0.8 0.6

1.0 0.4 0.3

Example 2

Page 39: Chap006 - Process Selection and Facility Layout

S P CHHEDA & CO.

6-39 Process Selection and Facility Layout

Station 1 Station 2 Station 3 Station 4

a b ef

d

g h

c

Solution to Example 2

Page 40: Chap006 - Process Selection and Facility Layout

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6-40 Process Selection and Facility Layout

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

1 min.

1 min.

1 min.1 min. 60/hr.

30/hr. 30/hr.

60/hr.

1 min.

30/hr.30/hr.

Bottleneck

Parallel Workstations

Parallel Workstations

Page 41: Chap006 - Process Selection and Facility Layout

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6-41 Process Selection and Facility Layout

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

Designing Process Layouts

Page 42: Chap006 - Process Selection and Facility Layout

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6-42 Process Selection and Facility Layout

1 3 2

30

170 100

A B C

Figure 6.12

Example 3: Interdepartmental Work Flowsfor Assigned Departments

Page 43: Chap006 - Process Selection and Facility Layout

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6-43 Process Selection and Facility Layout

Author’s note: The following three slides are not in the 8e,

but I like to use them for alternate examples.

Page 44: Chap006 - Process Selection and Facility Layout

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6-44 Process Selection and Facility Layout

Process Layout - work travels to dedicated process centers

Milling

Assembly& Test Grinding

Drilling Plating

Process Layout

Page 45: Chap006 - Process Selection and Facility Layout

S P CHHEDA & CO.

6-45 Process Selection and Facility Layout

Gearcutting

Mill Drill

Lathes

Grind

Heattreat

Assembly

111

333

222

444

222111444

111 3331111 2222

222

3333

111

444111

333333333

44444

3333

3322

222

Functional Layout

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6-46 Process Selection and Facility Layout

-1111 -1111

222222222 - 2222

Ass

emb

ly

3333333333 - 3333

44444444444444 - 4444

Lathe

Lathe

Mill

Mill

Mill

Mill

Drill

Drill

Drill

Heat treat

Heat treat

Heat treat

Gear cut

Gear cut

Grind

Grind

Cellular Manufacturing Layout