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BA205 -POM_TOPIC 9-PROCESS SELECTION, FACILITIES LAY-OUT AND LOCATION DECISIONS_MERCADO.pptx
1.
2. • TO FIND OUT THE IMPORTANCE OF PROCESS SELECTION, FACILITY LAY-
OUT AND FACILITY LOCATION IN THE EFFECTIVITY AND EFFICIENCY OF A
BUSINESS.
• LEARN ABOUT THE DIFFERENT TYPES OF LAY-OUTS, AS WELL AS ITS
ADVANTAGES AND DIS-ADVANTAGES.
• LEARN HOW TO STRATEGIZE ON FINDING OUT A GOOD AND PRIME
LOCATION FOR THE FACILITY.
Objectives
3. 1.2. Product-Quantity and Pareto Analysis
1.1. Process Selection
1.3. Type of layouts and the objectives of Facility Layout
1.4. Qualitative and Quantitative Data for the Layouts
1.5. Construction and Evaluation of Layouts
1.6. Computerized Approaches To Facility Layout
1.7. Facilities, Product, and Process Layouts
1.8. Location Decisions and Strategies
1.8.1. Least Cost Method
1.8.2. Dimensional analysis
1.8.3. Single facility Location Problem
1.8.4. Multi plant Location
Outline
4. The strategic administration of production processes and
personnel to maximize output, minimize errors and continually
enhance product quality come under the general banner of
"operations management." Process selection and facility layout
are two important elements of operations management.
Understanding the basics of each and their correlation can help
you to design more efficient production processes.
Introduction
5. -refers to deciding on the way
production of goods or services will
be organized. Processes convert inputs to
outputs; they are the core of operations
management.
Process Selection affects the entire
organization and its ability to achieve its
mission, and affects the organization’s
supply chain.
Process Selection
6.
7. Pareto Analysis -is a statistical technique in decision making that is
used for the selection of a limited number of tasks that produce
significant overall effect.
It uses the Pareto Principle (also know as the 80/20 rule) the
idea that by doing 20% of the work you can generate 80% of the
benefit of doing the whole job. Or in terms of quality improvement, a
large majority of problems (80%) are produced by a few key causes
(20%).
This is also known as the vital few and the trivial many. The
80/20 Rule may be applied to almost anything, from the science of
management to the physical world.
Product Quantity and Pareto Analysis
8. How the 80/20 rule fits into business?
Management (e.g. 80% of the results come from 20% of the group)
Sales (e.g. 80% of the profits come from 20% of the products)
Quality Management for identifying the most important causes for
defects (e.g. 80% of the problems come from 20% of the causes)
Inventory 80% of the business is done by 20% of the selection of
products or services. Sales Productivity 80% of the sales is
generated by 20% of the sales staff
Pareto Analysis
9. A facility layout should be able to provide an ideal relationship
between raw material, equipment, manpower and final product at minimal
cost under safe and comfortable environment.
Facility Layouts refers to represent the physical arrangement of a Equipments and
different components of a factory at site location
● Here, the factory or production center may be small or large scale
● Simply to say, it is about how an industry will arrange of different equipments,
raw materials storage location, inventory storage, tool rooms, maintenance
rooms, worker amenities etc a factory locations
● Such arrangement layouts are called as “ Facility Layout” or “Plants Layouts”
Type of Layouts and the Objectives of Facility Layout
10. 1) Process Layout:
● It is also referred as functional layout
● Process Layout focuses on keeping similar machines or similar operations at
one place in layout
● Here, all similar functional Equipment's are placed at one location and are
grouped into one department
Type of Layout and the Objectives of Facility Layout (cont.)
11. 2. Product Layout
● Product Layout refers to sequential arrangement of machines and components parts in one
line based on sequence rules of production
● In simple terms, we can say that it is layout where a raw material moves in straight line
from one equipment to another equipment in order to complete it as finished good
Types of Layout and the Objectives of Facility Layout (cont.)
12. 3. Combined Layout
● This type of layout is a combination of
Product layout and Process layout
● Also called as “ Group Technology
Layout” , or “ Hybrid Layout”
● Most of organizations use this type of
layout in their production units
Types of Layout and the Objectives of Facility Layout (cont.)
13. 4. Fixed Position Layout
This is also called the project type of layout. In this type of layout,
the material, or major components remain in a fixed location and tools,
machinery, men and other materials are brought to this location. This type of
layout is suitable when one or a few pieces of identical heavy products are to
be manufactured and when the assembly consists of large number of heavy
parts, the cost of transportation of these parts is very high.
Types of Layout and the Objectives of Facility Layout (cont.)
14. 5. Group Layout (or Cellular Layout)
There is a trend now to bring an
element of flexibility into manufacturing
system as regards to variation in batch
sizes and sequence of operations. A
grouping of equipment for performing a
sequence of operations on family of
similar components or products has
become all the important.
Types of Layout and the Objectives of Facility Layout (cont.)
15. Reed’s Plant Layout Procedure
1. Analyze the product or products to
be produced
2. Determine the process required to
manufacture thea product
3. Prepare layout planning charts
4. Determine workstations
5. Analyze storage area requirements
6. Establish minimum aisle widths
7. Establish office requirements
8. Consider personnel facilities and
services
9. Survey plant services
10. Provide for future expansion
Construction and Evaluation of Lay-outs
17. A recent trend has been the development of computer
programme to assist the layout planner in generating alternative
layout designs. Computerised layout planning can improve the
search of the layout design process by quickly generating a large
number of alternative layouts.
Computerized Lay-out Planning
18. 1 Construction programmers (Successive
selection and placement of activities)
Construction
programmers
Relationship Layout
Planning
ALDEP(Automated
Layout Design
Programme)
2 Improvements programmers CRAFT (Computerized
Relative Allocation of
Facilities Techniques)
(A complete existing
layout is required initially
and locations of
departments are inter-
changed to improve the
layout design)
Computerized Lay-out Planning
19. Being in the right location is a key ingredient in a business's success. If a company
selects the wrong location, it may have adequate access to customers, workers,
transportation, materials, and so on. Consequently, location often plays a significant role in a
company's profit and overall success
Formulating a location strategy
typically involves the following factors:
1. Facilities
2. Feasibility
3. Logistics
4. Labor
5. Community and site
6. Trade zones
7. Political risk
8. Governmental regulation
9. Environmental Regulation
10.Incentives
Location Strategy
20. Modern, complex systems incorporate many mechanical, electronic, and computer
subsystems to function. Organizations must either manufacture these products internally or
purchase them from external suppliers. Selection of the process used will depend upon the
ability to produce the goods internally, the difference in cost and quality between making and
buying, and the potential exposure of propriety information to competition.
Process selection and facility lay out are both crucial and necessary for a business.
Process Selection affects the entire organization and its ability to achieve its mission, and affects
the organization’s supply chain.
For an organization to have an effective and efficient manufacturing unit, it is important
that special attention is given to facility layout.
An effective facility layout ensures that there is a smooth and steady flow of production
material, equipment and manpower at minimum cost. Facility layout looks at physical allocation
of space for economic activity in the plant. Therefore, main objective of the facility layout
planning is to design effective workflow as to make equipment and workers more productive.
Conclusion
