Processes, Facilities, and Work Systems ( discussion )
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SEU_MGT530_Module07_PPT_Ch06.pptxProcess Selection and Facility Layout
Chapter 6
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1
You should be able to:
LO 6.1 Explain the strategic importance of process selection and the influence it has on the organization and its supply chain
LO 6.2 Name the two main factors that influence process selection
LO 6.3 Compare the four basic processing types
LO 6.4 Explain the need for management of technology
LO 6.5 List some reasons for redesign of layouts
LO 6.6 Describe product layouts and their main advantages and disadvantages
LO 6.7 Describe process layouts and their main advantages and disadvantages
LO 6.8 Solve simple line-balancing problems
LO 6.9 Develop simple process layouts
Chapter 6: Learning Objectives
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Process selection
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
Design of work systems
Process Selection
LO 6.1
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Process Selection and System Design
Forecasting
Product and Service Design
Technological Change
Capacity Planning
Process Selection
Facilities and Equipment
Layout
Work Design
LO 6.1
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Key aspects of process strategy:
Capital intensity
The mix of equipment and labor that will be used by the organization
Process flexibility
The degree to which the system can be adjusted to changes in processing requirements due to such factors as
Product and service design changes
Volume changes
Changes in technology
Process Strategy
LO 6.1
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Two key questions in process selection:
How much variety will the process need to be able to handle?
How much volume will the process need to be able to handle?
Process Selection
LO 6.2
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Job Shop
Repetitive
Batch
Continuous
| Job Shop | Batch | Repetitive/ Assembly | Continuous | |
| Description | Customized goods or services | Semi- standardized goods or services | Standardized goods or services | Highly standardized Goods or services |
| Advantages | Able to handle a wide variety of work | Flexibility; easy to add or change products or services | Low unit cost, high volume, efficient | Very efficient, very high volume |
| Disadvantages | Slow, high cost per unit, complex planning and scheduling | Moderate cost per unit, moderate scheduling complexity | Low flexibility, high cost of downtime | Very rigid, lack of variety, costly to change, very high cost of downtime |
Types of Processing
LO 6.3
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Sustainable Production of Goods and Services
There is increasing pressure for organizations to operate sustainable production processes
According to the Lowell Center for Sustainable Production:
“Sustainable Production is the creation of goods and services using processes and systems that are: non-polluting; conserving of energy and natural resources; economically efficient; safe and healthful for workers, communities, and consumers; and, socially and creatively rewarding for all working people.”
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Process and Information Technology
Process and information technology can have a major impact on costs, productivity and competitiveness:
Process technology
Methods, procedures, and equipment used to produce goods and provide services
Information technology
The science and use of computers and other electronic equipment to store, process, and send information
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Process technology and information technology can have a profound impact on:
Costs
Productivity
Competitiveness
The Need to Manage Technology
LO 6.4
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Automation
Machinery that has sensing and control devices that enable it to operate automatically
Fixed automation
Programmable automation
Flexible automation
Automation
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Programmable Automation
Programmable automation
Involves the use of high-cost, general-purpose equipment controlled by a computer program that provides both the sequence of operations and specific details about each operation
Computer-Aided Manufacturing (CAM)
The use of computers in process control, ranging from robots to automated quality control
Numerically Controlled (N/C) Machines
Machines that perform operations by following mathematical processing instructions
Robot
A machine consisting of a mechanical arm, a power supply, and a controller
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Flexible Automation
Flexible automation
Evolved from programmable automation. It uses equipment that is more customized than that of programmable automation. A key difference between the two is that flexible automation requires significantly less changeover time.
FMS (Flexible Manufacturing System)
A group of machines designed to handle intermittent processing requirements and produce a variety of similar products
CIM (Computer Integrated Manufacturing)
A system for linking a broad range of manufacturing activities through an integrated computer system
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Flexible Manufacturing System (FMS)
FMS
A group of machines designed to handle intermittent processing requirements and produce a variety of similar products
Have some of the benefits of automation and some of the flexibility of individual, or stand-alone, machines
Includes supervisory computer control, automatic material handling, and robots or other automated processing equipment
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CIM
A system for linking a broad range of manufacturing activities through an integrated computer system
Activities include
Engineering design
FMS
Purchasing
Order processing
Production planning and control
The overall goal of CIM is to link various parts of an organization to achieve rapid response to customer orders and/or product changes, to allow rapid production and to reduce indirect labor costs
Computer Integrated Manufacturing (CIM)
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Facilities 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 decisions arise when:
Designing new facilities
Re-designing existing facilities
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Inefficient operations
High cost
Bottlenecks
Accidents or safety hazards
Changes in product or service design
Introduction of new products or services
Changes in output volume or product mix
Changes in methods or equipment
Changes in environmental or other legal requirements
Morale problems
The Need for Layout Planning
LO 6.5
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Basic objective
Facilitate a smooth flow of work, material, and information through the system
Supporting objectives
Facilitate product or service quality
Use workers and space efficiently
Avoid bottlenecks
Minimize material handling costs
Eliminate unnecessary movement of workers or material
Minimize production time or customer service time
Design for safety
Layout Design Objectives
LO 6.5
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Basic Layout Types
Product layouts
Process layouts
Fixed-position layout
Combination layouts
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Product layout
Layout that uses standardized processing operations to achieve smooth, rapid, high-volume flow
Repetitive Processing: Product Layouts
Used for Repetitive Processing
Repetitive or Continuous
Raw materials
or customer
Finished item
Station
2
Station
3
Station
4
Material
and/or labor
Material
and/or labor
Material
and/or labor
Material
and/or labor
Station
1
LO 6.6
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Product Layouts: Advantages & Disadvantages
Advantages
High rate of output
Low unit cost
Labor specialization
Low material handling cost per unit
High utilization of labor and equipment
Established routing and scheduling
Routine accounting, purchasing, and inventory control
Disadvantages
Creates dull, repetitive jobs
Poorly skilled workers may not maintain equipment or quality
of output
Fairly inflexible to changes in volume or product or process design
Highly susceptible to shutdowns
Preventive maintenance, capacity for quick repair and spare-parts inventories are necessary expenses
Individual incentive plans are impractical
LO 6.6
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Process layouts
Layouts that can handle varied processing requirements
Non-repetitive Processing: Process Layouts
Used for Intermittent processing
Job Shop or Batch
Dept. A
Dept. B
Dept. D
Dept. C
Dept. F
Dept. E
LO 6.7
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Process Layouts: Advantages & Disadvantages
Advantages
Can handle a variety of processing requirements
Not particularly vulnerable to equipment failures
General-purpose equipment is often less costly and easier and less costly to maintain
It is possible to use individual incentive systems
Disadvantages
In-process inventories can be high
Routing and scheduling pose continual challenges
Equipment utilization rates are low
Material handling is slow and inefficient
Reduced spans of supervision
Special attention necessary for each product or customer
Accounting, inventory control, and purchasing are more involved
LO 6.7
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Fixed position layout
Layout in which the product or project remains stationary, and workers, materials, and equipment are moved as needed
Fixed Position Layouts
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Combination Layouts
Some operational environments use a combination of the three basic layout types:
Hospitals
Supermarket
Shipyards
Some organizations are moving away from process layouts in an effort to capture the benefits of product layouts
Cellular manufacturing
Flexible manufacturing systems
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Service layouts can be categorized as: product, process, or fixed position
Service layout requirements are somewhat different due to such factors as:
Degree of customer contact
Degree of customization
Common service layouts:
Warehouse and storage layouts
Retail layouts
Office layouts
Service Layouts
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Cellular Layouts
Cellular production
Layout in which workstations are grouped into a cell that can process items that have similar processing requirements
Groupings are determined by the operations needed to perform the work for a set of similar items, part families, that require similar processing
The cells become, in effect, miniature versions of product layouts
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Group Technology
Group technology
The grouping into part families of items with similar design or manufacturing characteristics
Design characteristics:
Size
Shape
Function
Manufacturing or processing characteristics
Type of operations required
Sequence of operations required
Requires a systematic analysis of parts to identify the part families
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Service Layouts
Two key factors:
Customer contact
Degree of customization
Layouts:
Warehouse and storage layouts
Retail layouts
Office layouts
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The goal of a product layout is to arrange workers or machines in the sequence that operations need to be performed
Designing Product Layouts: Line Balancing
LO 6.8
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Line balancing
The process of assigning tasks to workstations in such a way that the workstations have approximately equal time requirements
Goal:
Obtain task grouping that represent approximately equal time requirements since this minimizes idle time along the line and results in a high utilization of equipment and labor
Why is line balancing important?
It allows us to use labor and equipment more efficiently
To avoid fairness issues that arise when one workstation must work harder than another
Line Balancing
LO 6.8
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Cycle Time
Cycle time
The maximum time allowed at each workstation to complete its set of tasks on a unit
Cycle time also establishes the output rate of a line
LO 6.8
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The required number of workstations is a function of
Desired output rate
Our ability to combine tasks into a workstation
Theoretical minimum number of stations
How Many Workstations Are Needed?
LO 6.8
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Precedence Diagram
Precedence diagram
A diagram that shows elemental tasks and their precedence requirements
LO 6.8
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Assigning Tasks to Workstations
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
LO 6.8
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Balance delay (percentage of idle time)
Percentage of idle time of a line
Efficiency
Percentage of busy time of a line
Measuring Effectiveness
LO 6.8
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Designing Process Layouts
The main issue in designing process layouts concerns the relative placement of the departments
Measuring effectiveness
A major objective in designing process layouts is to minimize transportation cost, distance, or time
LO 6.9
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Information Requirements
In designing process layouts, the following information is required:
A list of departments to be arranged and their dimensions
A projection of future work flows between the pairs of work centers
The distance between locations and the cost per unit of distance to move loads between them
The amount of money to be invested in the layout
A list of any special considerations
The location of key utilities, access and exit points, etc.
LO 6.9
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| Distance between locations in meters | ||||
| To | ||||
| A | B | C | ||
| From | A | 20 | 40 | |
| B | 30 | |||
| C |
Process Layout Problem
| Interdepartmental work flows (loads per day) | ||||
| To | ||||
| 1 | 2 | 3 | ||
| From | 1 | 30 | 170 | |
| 2 | 100 | |||
| 3 |
LO 6.9
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Process Layout Problem (cont.)
A
B
C
1
2
3
30
170
100
| Dept. | Loads | Location | Distance (meters) | Load Distance Score |
| 1 to 2 | 170 | A to B | 20 | 170 x 20 = 3,400 |
| 1 to 3 | 30 | A to C | 40 | 30 x 40 = 1,200 |
| 2 to 3 | 100 | B to C | 30 | 100 x 30 = 3,000 |
| Total | 7,600 |
LO 6.9
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time
Cycle
day
per
time
Operating
rate
Output
=
rate
output
Desired
day
per
time
Operating
time
Cycle
=
å
å
=
=
=
s
task time
of
Sum
stations
of
number
minimum
l
theoretica
where
time
Cycle
min
min
t
N
t
N
stations
of
number
Actual
where
100
time
Cycle
cycle
per
time
Idle
Delay
Balance
=
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actual
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N
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Delay
Balance
-
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Efficiency
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