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

Forecasting

Capacity Planning

Facilities and Equipment

Product and Service Design

Process Selection

Layout

Technological Change

Work Design

Process Strategy
Key aspects of process strategy

Capital intensive equipment/labor Process flexibility

Technology
Adjust to changes

Design Volume technology

Technology
Technology: The application of scientific discoveries to the development and improvement of products and services and operations processes. Technology innovation: The discovery and development of new or improved products, services, or processes for producing or providing them.

Process Selection
Variety
How much

Flexibility
What degree

Volume
Expected output

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

Job Shop Batch

Appliance repair Emergency room Commercial baking Classroom Lecture

Ineffective

Repetitive

Automotive assembly Automatic carwash

Continuous (flow)

Ineffective

Steel Production Water purification

Product Process Matrix

Dimension Job variety Process flexibility Unit cost Volume of output Very High Very High Very High Very High Moderate Moderate Moderate Low Low Low Low High Very low Very low Very low Very low

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 or service 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 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

(Contd)

Changes in environmental or other legal requirements

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 layout Combination layouts

Basic Layout Types

Product layout

Layout that uses standardized processing operations to achieve smooth, rapid, highvolume flow Layout that can handle varied processing requirements Layout in which the product or project remains stationary, and workers, materials, and equipment are moved as needed

Process layout

Fixed Position layout

Product Layout
Figure 6.4 Raw materials or customer
Material and/or labor

Station 1 Material and/or labor

Station 2
Material and/or labor

Station 3
Material and/or labor

Station 4

Finished item

Used for Repetitive or Continuous Processing

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 Routing 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

Product Layout
Figure 6.7 (contd)

Product Layout (sequential)

Work Station 1 Work Station 2 Work Station 3

Used for Repetitive Processing Repetitive or Continuous Processes

Product Layout
IN

OUT

A U-Shaped Production Line

IN

4 5

Workers

6
OUT

10

Process Layout
Figure 6.7

Process Layout (functional)

Dept. A Dept. B Dept. C Dept. D Dept. E Dept. F

Used for Intermittent processing Job Shop or Batch Processes

Manufacturing Process Layout

Lathe Department Milling Department Drilling Department

M M

M M

D D

D D

D D

D D

L
L L L

L
L L L

G G

G G
Grinding Department

G G

P P
Painting Department

Receiving and Shipping

A
Assembly

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
The grouping into part families of items with similar design or manufacturing characteristics

Group Technology

Functional vs. Cellular Layouts

Table 6.3 Dimension
Number of moves between departments
Travel distances Travel paths Job waiting times Throughput time Amount of work in process Supervision difficulty Scheduling complexity Equipment utilization

Functional
many
longer variable greater higher higher higher higher lower

Cellular
few
shorter fixed shorter lower lower lower lower higher

Service Layouts
Warehouse and storage layouts Retail layouts Office layouts Service layouts must be aesthetically pleasing as well as functional