Process Selection

and
Facility Layout
 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.
 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.
 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
 Process Selection and
System Design

Facilities and
Forecasting Capacity Equipment
Planning

Product and Layout

Service Design

Process
Technological Selection Work
Change Design
 Process Strategy
• Key aspects of process strategy
– Capital intensive (mix of equipment/labor)
– Process flexibility
– Design
– Volume
– Technology
 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
 Technology Competitive
Advantage
 Innovations in
 Products and services
 Cell phones
 PDAs
 Wireless computing
 Processing technology
 Increasing productivity
 Increasing quality
 Lowering costs
 Process Selection
 Variety Batch
 How much
 Flexibility
Job Shop Repetitive
 What degree
 Volume
 Expected output Continuous
 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
 Product and Service
Processes
Process Type Low Volume High Volume
Job Shop Appliance repair Ineffective
Emergency
room

Batch Commercial
baking
Classroom
Lecture

Repetitive Automotive
assembly
Automatic
carwash

Continuous Ineffective Steel Production

Water purification
(flow)
 Product – Process Matrix
Dimension Job shop Batch Repetitive Continuous
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 low Low High Very High
output

Other issues; scheduling

work-in-process inventory
labor skill
 Process and Product 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
 Automation
 Automation: Machinery that has sensing
and control devices that enables it to
operate
 Fixed automation
 Programmable automation
 Automation
• Computer-aided design and
manufacturing systems (CAD/CAM)
• Numerically controlled (NC) machines
• Robot
• Manufacturing cell
• Flexible manufacturing systems(FMS)
• Computer-integrated manufacturing (CIM)
 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
 Objective of Layout Design
1. Facilitate attainment of product 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
 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
 The Need for Layout Design
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
 The Need for Layout Design
(Cont’d)
Changes in
environmental Changes in volume of
or other legal output or mix of
requirements products

Morale problems
Changes in methods
and equipment
 Basic Layout Types

 Product layouts
 Process layouts
 Fixed-Position layout
 Combination layouts
 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
 Product Layout
Used for Repetitive or Continuous Processing

Raw
Station Station
Station Station
Station Station
Station Finished
materials 1 22 33 44 item
or customer

Material Material Material Material

and/or and/or and/or and/or

labor labor labor labor
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
 Routine accounting, purchasing and
inventory control
 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
 A U-Shaped Production Line
In 1 2 3 4
5

Workers

6
Out 10 9 8 7

 Ease to cross-travel of workers and vehicles

 More compact
 More communication between workers
 Product Layout
Product Layout
(sequential)
Work Work Work
Station 1 Station 2 Station 3

Used for Repetitive Processing

or Continuous Processes
 Process Layout
Process Layout
(functional)
Dept. A Dept. C Dept. E

Dept. B Dept. D Dept. F

Used for Intermittent processing

Job Shop or Batch Processes
 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
 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
 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
 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
 Functional vs. Cellular Layouts
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
 Service Layouts
 Warehouse and storage layouts
 Retail layouts
 Office layouts
 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.
 Cycle Time

Cycle time is the maximum time

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

OT
Output rate =
CT

OT = operating time per day

D = Desired output rate

OT
CT = cycle time =
D
Determine the Minimum Number
of Workstations Required
( ∑t)
N=
CT

∑t = sum of task time

 Precedence Diagram
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.
 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
 Example 1 Solution

Revised
Time Assign Time Station
Workstatio Remaining Eligible Task Remaining Idle Time
n
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
 Calculate Percent Idle Time
Idle time per cycle
Percent idle time =
(N)(CT)

Efficiency = 100 – Percent idle time

 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 task’s
time and the times of all following tasks.
 Example 2
Plan to produce 400 units in 1 day (8 hours)

Immediate Task time

Task follower (min)
a 0.2 b0.2 0.3 0.2
b a eb e 0.2
c d 0.8
d 0.8 f0.6 0.6
e c fd f 0.3
g h
f g 1.0 1.0
0.4 0.3
g h 0.4
h end 0.3
 Solution to Example 2

Station 1 Station 2 Station 3 Station 4

a b e
f g h
c d
 Bottleneck Workstation

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

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

Bottleneck
 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
 Copier Example
Performance Task Must Follow
Time Task Listed
Task (minutes) Below
A 10 —
B 11 A This means that
C 5 B tasks B and E
cannot be done
D 4 B until task A has
E 12 A been completed
F 3 C, D
G 7 F
H 11 E
I 3 G, H
Total time 66
 Copier Example
Performance Task Must Follow
Time Task Listed
Task (minutes) Below
A 10 —
B 11 A
C 5 B
D 4 B
E 12 A
F 3 C, D 5

G 7 F 10 11
C
3 7
H 11 E
A B F G
I 3 G, H 4
3
Total time 66 12
D
11 I
E H

Figure 9.13
 Copier Example
Performance Task Must Follow 480 available
Time Task Listed mins per day
Task (minutes) Below 40 units required
A 10 —
B 11 A Production time
C 5 B available per day
D 4 CycleB time = Units required per day
E 12 A = 480 / 40
F 3 C, D 5
= 12 minutes per unit
G 7 F 10 11
C
3 7
n
H 11 E
Minimum A i∑ Time
B for taskFi G
I 3 G, H =1
4
number of = 3
Total time 66 workstations Cycle Dtime
12 11 I
= 66 / 12
E H
= 5.5 or 6 stations
Figure 9.13
 Copier Example
Line-Balancing Heuristics

1. Longest task time Choose the available 480task with

available
Performance Task Must Follow
the longest task time mins per day
Time Task Listed
Task2. Most
(minutes)
following tasks Below
Choose the available 40 taskunits
withrequired
A 10 —the largest number of following
Cycle time = 12 mins
B 11 Atasks Minimum
C 3. Ranked5 positional BChoose the available
workstations = 5.5 or 6
task for
D weight 4 Bwhich the sum of following task
E 12 Atimes is the longest
F 3 C, D 5

G 4. Shortest 7 task time FChoose the available

C task with
the shortest
10 task
11 time 3 7
H 11 E
A B F G
I 5. Least number
3 of G, H
Choose the available 4 task with
3
Totalfollowing
time 66tasks the least number ofDfollowing
I
tasks 12 11
E H
Table 9.4
Figure 9.13
 Copier Example
Performance Task Must Follow 480 available
Time Task Listed mins per day
Task (minutes) Below 40 units required
A 10 — Cycle time = 12 mins
B 11 A Minimum
Station
workstations = 5.5 or 6
5
C 52 B
D 4 C B
E 10 11
12 A 3 7
F A B3 C, D F G
4 3
G 7 F
H 11 D E Station 4 I
I 3 12 G, H 11
Station 6
Total
Stationtime 66
1 E H
Station Station
3 5 Figure 9.14
 Copier Example
Performance Task Must Follow 480 available
Time Task Listed mins per day
Task (minutes) Below 40 units required
A 10 — Cycle time = 12 mins
B 11 A Minimum
C 5 B workstations = 5.5 or 6
D 4 B
E 12 A
F 3 C, D
G 7 F ∑ Task times
Efficiency =
H (actual number ofE workstations) x (largest cycle time)
11
I 3 G, H
= 66 minutes / (6 stations) x (12 minutes)
Total time 66
= 91.7%
 Example 1
Performance Task Must Follow
Time Task Listed
Task (minutes) Below
1 0.20 - Balance by
2 0.40 -
3 0.70 1 1 Longest task time
4 0.10 1,2
5 0.30 2
method
6 0.11 3
7 0.32 3
8 0.60 3,4 2 RPW method
9 0.27 6,7,8
10 0.38 5,8
11 0.50 9,10
12 0.12 11
Total time 4 min.
 Example 2
Performance Task Must Follow
Time Task Listed
Task (minutes) Below
1 0.5 - Balance by
2 0.3 1
3 0.8 1 1 Longest task time
4 0.2 2
5 0.1 2
method
6 0.6 3
7 0.4 4,5
8 0.5 3,5 2 RPW method
9 0.3 7,8
10 0.6 6,9
Total time 4.3 min.
 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
Example 3: Interdepartmental Work
Flows
for Assigned Departments

30

170 100
1 3 2

A B C
 Functional Layout

222 222 222

111 Drill Grind
Mill

22
444 3333

222
444

1111 2222 Assembly

33
33

44
111 333
33

44
333
33

4
111
3

333
111
Heat 111 Gear
333 Lathes
treat cutting 444
 Cellular Manufacturing Layout
Heat Gear
1111 Lathe Mill Drill -1111
treat cut

Heat
Mill Drill Grind - 2222

Assembly
2222 treat

Heat
3333 Lathe Mill Grind - 3333
treat

Mill Drill Gear - 4444

4444
cut
 Linear Programming
 Used to obtain optimal solutions to
problems that involve restrictions or
limitations, such as:
 Materials
 Budgets
 Labor
 Machine time
 Linear Programming Model
 Objective Function: mathematical statement
of profit or cost for a given solution
 Decision variables: amounts of either inputs
or outputs
 Feasible solution space: the set of all
feasible combinations of decision variables as
defined by the constraints
 Constraints: limitations that restrict the
available alternatives
 Parameters: numerical values
 Graphical Linear Programming
Graphical method for finding optimal
solutions to two-variable problems
1.Set up objective function and
constraints in mathematical format
2.Plot the constraints
3.Identify the feasible solution space
4.Plot the objective function
5.Determine the optimum solution
Linear Programming Example
 Objective - profit
Maximize Z=60X1 + 50X2
 Subject to
Assembly 4X1 + 10X2 <= 100 hours
Inspection 2X1 + 1X2 <= 22 hours
Storage 3X1 + 3X2 <= 39 cubic feet
X1, X2 >= 0
Linear Programming Example
Assembly Constraint
4X1 +10X2 = 100

12
10
Product X2

8
6
4
2
0
0

10

12

14

16

18

20

22

24
Product X1
Linear Programming Example
Add Inspection Constraint
2X1 + 1X2 = 22

25
20
Product X2

15
10
5
0
0

10

12

14

16

18

20

22

24
Product X1
Linear Programming Example

Add Storage Constraint

3X1 + 3X2 = 39

25
Inspection
20
Product X2

15
Storage
Assembly
10
5
0
0

10

12

14

16

18

20

22

24
Feasible solution space Product X1
Linear Programming Example
Add Profit Lines

25

20
Z=900
Product X2

15

10

0
0

10

12

14

16

18

20

22

24
Product X1
Z=300 Z=600
 Solution

 The intersection of inspection and storage

 Solve two equations in two unknowns
2X1 + 1X2 = 22
3X1 + 3X2 = 39

X1 = 9
X2 = 4
Z = $740
 Solutions and Corner Points
 Feasible solution space is usually a polygon
 Solution will be at one of the corner points

 Enumeration approach: Substituting the

coordinates of each corner point into the
objective function to determine which corner
point is optimal.
 Simplex Method

 Simplex: a linear-programming
algorithm that can solve problems
having more than two decision
variables
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