Process Selection

and Facility Layout

Chapter 6
(Stevenson)

Learning Objectives

Explain the strategic importance of

process selection.
Describe the basic processing types.
Describe the basic layout types.
List the main advantages and
disadvantages of product layouts and
process layouts.
Solve simple line-balancing
problems.
Develop simple process layouts.

Introduction
Process

selection

Deciding

on the way production of goods or

services will be organized

Major

implications

Capacity
Layout

planning

of facilities

Equipment
Design

of work systems

Process Selection and System

Design
Forecasting

Capacity
Planning

Product and
Service Design

Technological
Change

Facilities and
Equipment

Layout

Process
Selection

Work
Design

Process Strategy
Key aspects of process strategy

Capital intensive equipment/labor

Process flexibility/Adjust to changes

Design

Volume
Technology

Process Selection
Variety
How

much

Flexibility
What

degree

Volume
Expected

output

Process Types

Job shop
Small

scale

Batch
Moderate

Repetitive/assembly line
High

volume

volumes of standardized goods or services

Continuous
Very

high volumes of non-discrete goods

Product Process Matrix

Process Types

Job Shop: It is used when a low volume of

high-variety goods or services will be needed.
Processing is intermittent; work includes small
jobs, each with somewhat different processing
requirements. High flexibility using generalpurpose equipment and skilled workers are
important characteristics of a job shop. A
manufacturing example of a job shop is a tool
and die shop that is able to produce one-of-akind tools. A service example is a Doctors
office.

Process Types

Batch: used when a moderate volume of

goods or services is desired, and it can
handle a moderate variety in products or
services. The equipment need not be as
flexible as in a job shop, but processing is
still intermittent.

Manufacturing examples: cakes.

Service examples: airline flight, classroom

lectures.

Process Types

Repetitive: used when higher volumes of more

standardized goods or services are needed. The
standardized output means only slight flexibility of
equipment is needed. Skill of workers is generally low.

Examples of this type of system include production

lines and assembly lines. Familiar products made by
these systems include automobiles, television sets.

An example of a service system is an automatic

carwash.

You are likely to see only minor variations in the

product or service being produced using the same
process and equipment

Process Types

Continuous. Used for a very high volume of nondiscrete, highly standardized output.

These systems have almost no variety in output and,

hence, no need for equipment flexibility. Workers' skill
requirements can range from low to high, depending on
the complexity of the system and the expertise workers
need. Generally, if equipment is highly specialized, worker
skills can be lower.
Examples of non-discrete products made in continuous
systems include petroleum products and steel. Continuous
services include supplying electricity and water.

Key difference between Repetitive and Continuous is that

in Repetitive systems you may experience minor variations
in product or service, whereas in Continuous system you
will see not almost no variation.

Product and Process 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

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

Combination

layout

layouts

Objective of Layout Design

1.
2.
3.

4.
5.
6.
7.

Facilitate attainment of product or service

quality
Use workers and space efficiently
Avoid bottlenecks
Minimize unnecessary material handling costs
Eliminate unnecessary movement of workers or
materials
Minimize production time or customer service
time
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 Decisions

Inefficient operations
For Example:

High Cost
Bottlenecks

Changes in the design

of products or services

Accidents
The introduction of new
products or services

Safety hazards

The Need for Layout Design

Changes in
environmental
or other legal
requirements

(Contd)

Changes in volume of
output or mix of
products
Morale problems

Changes in methods
and equipment

Basic Layout Types

Product

layouts

Process

layouts

Fixed-Position
Combination

layout

layouts

Basic Layout Types

Product

layout

Process

layout

Layout

that uses standardized

processing operations to achieve
smooth, rapid, high-volume flow

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

Raw
materials
or customer
Material
and/or
labor

Station
1

Material
and/or
labor

Station
2

Material
and/or
labor

Station
3

Station
4

Material
and/or
labor

Used for Repetitive or Continuous Processing

Finished
item

A U-Shaped Product Line

In

4
5

Workers

6
Out

10

Advantages of Product Layout

High

rate of output

Low

unit cost

Labor
Low

specialization

material handling cost

High

utilization of labor and

equipment

Established

Routing

routing and scheduling

accounting and purchasing

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

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 involved

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
The

Technology

grouping into part families of items

with similar design or manufacturing
characteristics

Service Layouts
Warehouse

and storage layouts

Retail layouts
Office layouts
Service layouts must be
aesthetically pleasing as well as
functional

Service Layouts

Service layouts can often be categorized as

product, process, or fixed-position layouts.

In a fixed-position service layout (e.g.,

appliance repair, roofing, home remodeling,
copier service), materials, labor, and
equipment are brought to the customer's
residence or office).

Service Layouts

Process layouts are common in services due

mainly to the high degree of variety in
customer processing requirements. Examples
include hospitals, supermarkets and
department stores, vehicle repair centers,
and banks.

Product layout can be used if the service is

organized sequentially, with all customers or
work following the same or similar sequence,
as it is in a car wash.

Service Layout Design

Important factors in service layout design

include:
Target

customer and desired customer experience

Customer

attitude and image

Frequency
High

of orders

level of customer contact

The

mixture of the physical items, sensual

benefits, and psychological benefits.

Interesting point: service layout design is not generally focused on

cost minimization and product flow.

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.

Line Balancing is the task of deciding how

to assign work to specific workstations to
achieve maximum utilization of labor and
equipment

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

Cycle Time
As a general rule, the Cycle Time is
determined by the desired output.
A desired output rate is selected, and
the Cycle time is computed.

Determine the Minimum Number

of Workstations Required

N=

( t)
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.

c
0.7 min.

d
0.5 min.

A Simple Precedence
Diagram

e
0.2 min.

Example 1: Assembly Line Balancing

Example 1: Assembly Line Balancing

Example 1 Solution

Eligible

Revised
Assign Time
Task
Remaining

1.0
0.9
0.2

a, c
c
none

a
c
-

0.9
0.2

1.0

0.0

0.0

1.0
0.5
0.3

d
e
-

d
e
-

0.5
0.3

0.3

Time
Workstation Remaining
1

Station
Idle Time

0.2

Total idle time = 0.2+0.0+0.3 = 0.5

Calculate Percent Idle Time &

Efficiency
Idle time per cycle
Percent idle time =
(N)(CT)

Efficiency = 1 Percent idle time

Example 2

Example 2
1. Draw a precedence diagram

Example 2

Example 2

Example 2

Station 1

Station 2

Station 3

f
c

Station 4

Example 2

Bottleneck Workstation

1 min.

60/hr.

1 min.

Bottleneck

60/hr.

2 min.

30/hr.

1 min.

30/hr.

Parallel Workstations

30/hr.

1 min.

60/hr.

2 min.

30/hr.

1 min.

1 min.
30/hr.
2 min.

Parallel Workstations

30/hr.

60/hr.