Business operating management

Yuzhi Zhao

OM6_Collier_Evans_Ch08.pptx

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Facility and Work Design

COLLIER/EVANS

Operations + Supply Chain Management

LEARNING OUTCOMES

Describe four layout patterns and when they should be used

Explain how to design product layouts using assembly-line balancing

Explain the concepts of process layout

Describe issues related to workplace design

Describe the human issues related to workplace design

OM6 | CH7

Facility Layout

LO 8-1

Specific arrangement of physical facilities

Studies are necessary when:

New facility is constructed

Significant change in demand or throughput volume is observed

New good or service is introduced to the customer benefit package

Different processes, equipment, and/or technology are installed

OM6 | CH8

Objectives of Layout Studies, Part 1

LO 8-1

Minimize delays in materials handling and customer movement

Maintain flexibility

Use labor and space effectively

Promote high employee morale and customer satisfaction

OM6 | CH8

Objectives of Layout Studies, Part 2

LO 8-1

Minimize energy use and environmental impact

Provide for good housekeeping and maintenance

Enhance sales as appropriate in manufacturing and service facilities

OM6 | CH8

Layout Patterns in Configuring Facilities

LO 8-1

OM6 | CH8

Product Layout, Part 1

LO 8-1

Arrangement based on the sequence operations performed during the manufacture of goods or delivery of services

Supports a smooth and logical flow of goods or services from one process stage to the next

OM6 | CH8

Product Layout, Part 2

LO 8-1

Advantages

Higher output rates

Lower work-in-process inventories

Less material handling

Higher labor and equipment utilization

Simple planning and control systems

Disadvantages

Breakdown at one workstation may cause the entire process to shut down

Change in product design can require major changes in the layout

Limited flexibility

Low job satisfaction

OM6 | CH8

Process Layout

LO 8-1

Functional grouping of equipment or activities that do similar work

Advantages

Entire system is not affected if a piece of equipment fails

Disadvantages

High material-handling costs

Complicated planning and control systems

Higher worker skill requirements

OM6 | CH8

Cellular Layout

LO 8-1

Based on self-contained groups of equipment (cells) needed for producing a particular set of goods or services

Facilitates the processing of families of parts with similar processing requirements

Group technology - Procedure of classifying parts into families

OM6 | CH8

Advantages of Cellular Layout

LO 8-1

Reduced materials-handling requirements

Quicker response to quality problems

Efficient use of floor space

Greater worker responsibility that leads to an increase in morale and satisfaction

OM6 | CH8

Fixed-Position Layout

LO 8-1

Consolidates the necessary resources to manufacture a good or deliver a service in one physical location

Work remains stationary

High level of planning and control required

OM6 | CH8

Exhibit 8.4

Comparison of Basic Layout Patterns

LO 8-1

Exhibit 8.4 Comparison of Basic Layout Patterns

Characteristic	Product Layout	Process Layout	Cellular Layout	Fixed-Position Layout
Demand volume	High	Low	Moderate	Very Low
Equipment utilization	High	Low	High	Moderate
Automation potential	High	Moderate	High	Moderate
Setup/changeover requirements	High	Moderate	Low	High
Flexibility	Low	High	Moderate	Moderate
Type of equipment	Highly specialized	General purpose	Moderate specialization	Moderate specialization

OM6 | CH1

Facility Layout in Service Organizations, Part 1

LO 8-1

Based on product, process, cellular, and fixed-position layouts to organize different types of work

Design of service facilities requires the integration of layout with the servicescape and process design to support service encounters

OM6 | CH8

Facility Layout in Service Organizations, Part 2

LO 8-1

Determined by the degree of specialization versus flexibility of services

Organizations that need the ability to provide a wide variety of services to customers use process layouts

Organizations that provide highly standardized services tend to use product layouts

OM6 | CH8

Flow Shop Product Layout Design

LO 8-2

Consists of a fixed sequence of workstations separated by buffers (in-process storage)

Sources of delay

Flow-blocking: Occurs when a work center completes a unit but cannot release it because the in-process storage at the next stage is full

Lack-of-work (starving): Occurs when one stage completes work and no units from the previous stage are awaiting processing

OM6 | CH8

Exhibit 8.6

Typical Manufacturing Workstation Layout

OM6 | CH1

Assembly Line

LO 8-2

Type of product layout that combines the components of a good or service that has been created previously

Helps lower costs and makes goods and services affordable to mass markets

OM6 | CH8

Assembly-Line Balancing

LO 8-2

Technique that helps distribute the same amount of tasks among workstations

Involves identifying:

Set of tasks to be performed and time required to perform each task

Sequence in which the tasks must be performed

Desired output rate or forecast of demand for the assembly line

OM6 | CH8

Cycle Time (CT), Part 1

LO 8-2

Interval between successive outputs coming off the assembly line

CT = A/R

Where

A - Available time to produce output

R - Demand forecast or required output

Maximum operation time ≤ CT ≤ sum of operation times

OM6 | CH8

Cycle Time (CT), Part 2

LO 8-2

OM6 | CH8

Line-Balancing Approaches, Part 1

LO 8-2

Use decision rules, or heuristics, to assign tasks to workstations

Decision rules are incorporated into computerized algorithms and simulation models for large line-balancing problems

Depend on assigning the longest or shortest task time to a workstation first

OM6 | CH8

Line-Balancing Approaches, Part 2

LO 8-2

Precedence network

Helps visually determine the feasibility of a workstation assignment

Helps ensure that certain precedence restrictions are met in the sequence of performing a task

OM6 | CH8

Designing Process Layouts

LO 8-3

Arranging departments or work centers relative to each other

Approaches

Calculating the costs associated with moving materials between work centers

Optimizing the total closeness rating of a layout

OM6 | CH8

Effective Workplace Design

LO 8-4

Allows for maximum efficiency and effectiveness to perform a work task or activity

Needs to facilitate service management skills in high-contact, front-office environments

OM6 | CH8

Job Design, Part 1

LO 8-4

Involves determining:

Specific job tasks and responsibilities

Work environment

Methods by which tasks will be carried out to meet the goals of operations and competitive priorities

OM6 | CH8

Job Design, Part 2

LO 8-4

Helps make jobs safe, satisfying, and motivating

Job enlargement: Horizontal expansion of job duties to give a worker more variety

Job enrichment: Vertical expansion of job duties to give workers more responsibility

Involves the use of teams, such as natural work teams, virtual teams, and self-managed teams (SMTs)

OM6 | CH8

Safety

LO 8-4

Function of the job, the person performing the job, and the surrounding environment

U.S. Occupational Safety and Health Act (OSHA) was enacted in 1970 to ensure workplace safety

Involves:

Designing injury-proof working environments

Educating employees about the proper use of equipment and methods

OM6 | CH8

Ergonomics

LO 8-4

Takes into account the physical capabilities of people of while designing jobs to improve the productivity and safety

Helps:

Reduce fatigue, cost of training, human errors, cost of doing a job, and energy requirements

Increase accuracy, speed, reliability, and flexibility

OM6 | CH8

Workforce Ethics

LO 8-5

Involves improving working the conditions of employees

Ethical Trading Initiative (ETI)

Alliance of companies, trade unions, and nongovernmental organizations promoting respect for workers’ rights globally

OM6 | CH8

KEY TERMS

Facility layout

Product layout

Process layout

Cellular layout

Fixed-position layout

Flow-blocking delay

Lack-of-work delay (starving)

Assembly line

Assembly-line balancing

Cycle time

Job

Job design

Job enlargement

Job enrichment

Ergonomics

OM6 | CH7

SUMMARY

Product, process, cellular, and fixed-position are the different types of layout patterns

Assembly-line balancing helps distribute the same amount of tasks among workstations

Designing process layouts involves arranging departments to reduce costs

To improve productivity, safety, ergonomics, and ethics need to be considered while designing a workplace

OM6 | CH7

4LTR Press

OM6 | CH7