PROCESS

SELECTION
AND FACILITY
LAYOUT
 GROUP 3

ALBENIA, EASTER MAY A. GACHE, KATRINA GWYNETH M.

BISCO, KATE NATHALIE EMPLEO, DHANEA PAULEEN A. HILA,AIRA JOY H.

HILARIO, ARLEEN JOY B. MERCADO, LHIAN ALEXIS G. SUMAGUE, FRENCEL LOREIGNE M. VELASCO, EDLYN VIEL B.
 CHAPTER SIX: PROCESS
SELECTION AND FACILITY
LAYOUT
It refers to deciding on the
way production of goods or
services will be organized.

It has major implications for

capacity planning, layout of
facilities, equipment, and
design of work systems.

It occurs as a matter of course

(when a new product or services
are being planned). However, it
also occurs periodically
(technological changes in
products, equipment, or
competitive pressures.)
Process selection and
capacity planning are
INTERRELATED.

They affect facility and

equipmnent choices,
layout, and work design.
KEY ASPECTS OF PROCESS STRATEGY:

Capital Intensity
The mix of equipment and labor
used by an organization.

Process Flexibility
The ability to adjust to changes in
processing requirements (
product/ service design, volume,
technology ).
 TWO KEY QUESTIONS IN PROCESS
SELECTION:

1. How much VARIETY will the process

need to be able to handle?

2. How much VOLUME will the process

need to be able to handle?
 TWO MAIN FACTORS THAT INFLUENCE
PROCESS SELECTION:
VARIETY VOLUME

This refers to the range of different This refers to the quantity of each product
products or services that the production or service that must be produced.
process must handle.

HIGH VARIETY means producing many HIGH VOLUME is associated with large-
different types of products. scale, repetitive production.

LOW VARIETY means focusing on a single LOW VOLUME means producing smaller
or limited type of product. quantities, often customized.
 IMPORTANCE OF VARIETY
IN PROCESS SELECTION
Businesses must decide how to organize operations based on variety:

Some companies use dedicated operations, meaning different machines for

different products.

Others use shared operations, where machines and workers must adjust
frequently.

More variety increases complexity, meaning more time is needed to set up and
change production for each product.
 JOB SHOP - usually operates on a relatively small scale.

BATCH - it us up ed when a moderate volume of goods or

services is desired, and it can handle a moderate variety in

PROCESS products and services.

REPITITIVE - it used when higher volumes of more

TYPES standardized goods or services are needed.

CONTINOUS - it is used when a very high volume or

modiscrete, highly standardized output is desired.
PROJECT - used for work that is non-routine, with a unique
set of objectives to be accomplished in a limitted time
frame.
 Types of Processing
TABLE 6.1

Job Shop Batch Repetitive/Assembly Continuous

Customize goods or Semi-standardized Standardized Highly standardized

Description
services goods or services goods or services goods or services

Flexibility: easy to add

Able to handle a Low unit cost, high Very efficient, very
Advantages of change products or
wide variety of work volume, efficient high volume
services

Slow, high cost per Very rigid, lack of

Moderate cost per
unit,complex Low flexibility, high variety, costly to
Disadvantage unit, moderate
planning and cost of downtime change, very high
scheduling completely
scheduling cost of downtime
 VOLUME and VARIETY influence process choice
FIGURE 6.2

High variety Moderate variety Low variety Very low variety

Job Shop
Low or very low
repair shop
volume
emergency room

Batch
Moderate volume commercial bakery
classroom lecture

Repetitive
High volume assembly line
automatic car wash

Continuous
Very high volume petroleum refining
water treatment
 Sustainable Production of
Goods and Services
Business organizations face growing pressure from various stakeholders to
implement sustainable production processes. Sustainable production involves creating
goods and services using environmentally friendly, energy-efficient, and socially
responsible processes.

According to the Lowell Center for Sustainable Production, sustainable production refers
to processes and systems that:
Are non-polluting.
Conserve energy and natural resources.
Are economically efficient.
Ensure safety and health for workers, communities, and consumers.
Are socially and creatively rewarding for employees.
To achieve sustainability, businesses must:
• wastes and ecologically incompatible by products are reduced,
eliminated or recycled on-site,

• chemical substances or physical agents and conditions that

present hazards to human health or the environment are
eliminated;

• energy and materials are conserved, and the forms of energy

and materials used are most appropriate for the desired ends;
and

• work spaces are designed to minimize or eliminate chemical,

ergonomic and physical hazard.
Factors to Consider in Sustainable Production :
• Energy use and efficiency.

• Carbon footprint (CO2 emissions) and toxic emissions.

• Waste generation and disposal.

• Sustainable lighting, heating, cooling, and ventilation.

• Reduction of noise and vibration.

• Worker health and safety.

 LEAN PROCESS DESIGN
Lean process design focuses on reducing waste, improving efficiency, and enhancing
process flow. It ensures optimal resource utilization while aligning with sustainability
objectives.

• Waste Reduction : Minimizing defects, rework, scrap, and unnecessary resource usage.
• Variance Reduction: Ensuring balanced workload distribution across the process to maintain
a steady flow.
• Inventory and Space Optimization: Reducing excess inventory and optimizing floor space for
better efficiency.
• Improved Response Time : Faster production cycles and shorter lead times improve service
delivery.
• Enhanced Productivity : Efficient processes lead to higher output with fewer resources.
 LEAN PROCESS DESIGN
Lean principles apply to diverse sectors, including:

• Healthcare
• Manufacturing
• Construction
• Process Reengineering
 Technology
The application of scientific discoveries to the
development and improvement of products and services
and operations processes.

Technological Innovation
The discovery and development of new or improved
products, services, or processes for producing or
providing them.

High Technology
Refers to the most advanced and developed equipment
and/or methods.
 TYPES OF TECHNOLOGY
Process Technology Information Technology

• Process technology includes Information technology (IT) is

methods, procedures, and the science and use of
computers and other electronic
equipment used to produce goods
equipment to store, process,
and provide services.
and send information.

Example of information technology:

Examples of process technology:
E-commerce
manufacturing Radio Frequency Identification
food industry (RFID) Tags.
Technological innovation in processing technology can
produce benefits for organizations. increasing quality,
lowering costs, increasing productivity, and expanding
processing capabilities.

While process technology can have enormous benefits, it

also carries substantial risk unless a significant effort is
made to fully understand both the downside and the
upside of a particular technology.
AUTOMATION
Machinery that has sensing and control devices that
enable it to operate automatically.

Advantage Disadvantage
• Lower Costs • Costly
• Better Quality • Less Flexibility
• Higher Productivity • Job Losses
Fixed Automation
Machines are set up for a
fixed process and cannot be
changed easily.

Programmable Automation
Machines can be
reprogrammed for different
tasks.

Flexible Automation
Advanced machines that can
adjust automatically without
stopping production.
Computer-Aided Manufacturing (CAM)

= The use of computers in process control.

Types of Computer-Aided Manufacturing

Numerically Controlled (N/C) Machines: Machines follow a set of
programmed instructions to perform tasks.

Computerized Numerical Control (CNC): Each machine has its own

computer to control its operations.

Direct Numerical Control (DNC): One computer controls multiple

machines at the same time.
 Different Formats of Flexible Automation

A Flexible manufacturing system (FMS) machines,

material handling, and computer control for
efficient, flexible, and cost-effective manufacturing.

Computer-integrated manufacturing (CIM)

automation, robotics, manufacturing, production,
information technology, ERP, and flexible
manufacturing.
The Internet of Things (IoT) ability to collect vast
amounts of data from various sources in real time.
 THANK YOU !!
END OF DISCUSSION