Operation management 9e stevenson mcgrwhill chap006

6

Process Selection
and Facility Layout

McGraw-Hill/Irwin

Copyright © 2007 by The McGraw-Hill Companies, Inc. All


Learning Objectives






Explain the strategic importance of process
selection.
Explain the influence that process selection
has on an organization.
Describe the basic processing types.
Discuss automated approaches to
processing.
Explain the need for management of
technology.
6-2


Learning Objectives








List some reasons for redesign of layouts.
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.

6-3


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

6-4


Figure 6.1

Process Selection and
System Design

Forecasting

Capacity
Planning

Product and
Service Design

Technological
Change

Facilities and
Equipment

Layout
Process
Selection

Work

Design

6-5


Process Strategy
• Key aspects of process strategy
–

Capital intensive – equipment/labor

–

Process flexibility

–

Technology

–

Adjust to changes
–

Design

–

Volume

–

technology
6-6


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.

6-7


Kinds of Technology
 Operations management is primarily
concerned with three kinds of technology:
 Product and service technology
 Process technology
 Information technology

 All three have a major impact on:
 Costs
 Productivity
 Competitiveness

6-8


Technology Competitive
Advantage
 Innovations in
 Products and services
 Cell phones
 PDAs
 Wireless computing

 Processing technology
 Increasing productivity
 Increasing quality
 Lowering costs

6-9


Technology Acquisition
 Technology can have benefits but …
 Technology risks include:
 What technology will and will not do
 Technical issues
 Economic issues
 Initial costs, space, cash flow, maintenance
 Consultants and/or skilled employees
 Integration cost, time resources
 Training, safety, job loss

6-10


Process Selection
 Variety

Batch

 How much

 Flexibility
 What degree

 Volume

Job Shop

Repetitive

 Expected output

Continuous

6-11


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

6-12


Figure 6.2

Product and Service
Processes

Process Type

Job Shop

Appliance repair
Emergency
room

Ineffective

Commercial
baking

Batch

Classroom
Lecture
Automotive
assembly

Repetitive

Automatic
carwash

Continuous
(flow)

Ineffective

Steel Production
Water purification

6-13


Product – Process Matrix
Figure 6.2 (cont’d)
Dimension
Job variety

Very High

Moderate

Low

Very low

Process
flexibility

Very High

Moderate

Low

Very low

Unit cost

Very High

Moderate

Low

Very low

Volume of
output

Very High

Low

High

Very low

6-14


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
6-15


Automation
 Automation: Machinery that has sensing
and control devices that enables it to
operate
 Fixed automation
 Programmable automation

6-16


Automation
• Computer-aided design and
manufacturing systems (CAD/CAM)
• Numerically controlled (NC) machines
• Robot
• Manufacturing cell
• Flexible manufacturing systems(FMS)
• Computer-integrated manufacturing (CIM)

6-17


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
6-18


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
6-19


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

6-20


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
6-21


The Need for Layout Design
(Cont’d)

Changes in
environmental
or other legal
requirements

Changes in volume of
output or mix of
products
Morale problems

Changes in methods
and equipment

6-22


Basic Layout Types
 Product layouts
 Process layouts
 Fixed-Position layout
 Combination layouts

6-23


Basic Layout Types
 Product layout


Layout that uses standardized processing
operations to achieve smooth, rapid, highvolume flow

 Process layout


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
6-24


Product Layout

Figure 6.4

Raw
materials
or customer

Station
1

Station
Station
22

Station
Station
33

Material

Material

Material

Material

and/or
labor

and/or
labor

and/or
labor

and/or
labor

Station
Station
44

Finished
item

Used for Repetitive or Continuous Processing

6-25