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Operations Management - chapter 6.pdf
- 1. 6-1 Process Selectionand Facility Layout William J. Stevenson Operations Management 8th edition
- 2. 6-2 Process Selectionand Facility Layout CHAPTER 6 Process Selection and Facility Layout McGraw-Hill/Irwin Operations Management, Eighth Edition, by William J. Stevenson Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved.
- 3. 6-3 Process Selectionand Facility Layout ∙ 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 Introduction
- 4. 6-4 Process Selectionand Facility Layout Forecasting Product and Service Design Technological Change Capacity Planning Process Selection Facilities and Equipment Layout Work Design Figure 6.1 Process Selection and System Design
- 5. 6-5 Process Selectionand Facility Layout • Key aspects of process strategy – Capital intensive – equipment/labor – Process flexibility – Adjust to changes – Design – Volume – technology Process Strategy
- 6. 6-6 Process Selectionand Facility Layout ∙ Variety ∙ How much ∙ Flexibility ∙ What degree ∙ Volume ∙ Expected output Job Shop Batch Repetitive Continuous Process Selection
- 7. 6-7 Process Selectionand Facility Layout ∙ 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 Process Types
- 8. 6-8 Process Selectionand Facility Layout Oil refinery Water purification Not feasible Continuous (flow) Automotive assembly Automatic carwash Repetitive Commercial bakery Classroom Lecture Batch Not feasible Appliance repair Emergency room Job Shop Process Type Figure 6.2 Product – Process Matrix
- 9. 6-9 Process Selectionand Facility Layout Very low High Low Very High Volume of output Very low Low Moderate Very High Unit cost Very low Low Moderate Very High Process flexibility Very low Low Moderate Very High Job variety Dimension Figure 6.2 (cont’d) Product – Process Matrix
- 10. 6-10 Process Selectionand Facility Layout ∙ Automation: Machinery that has sensing and control devices that enables it to operate ∙ Fixed automation ∙ Programmable automation Automation
- 11. 6-11 Process Selectionand Facility 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
- 12. 6-12 Process Selectionand Facility Layout ∙ Requires substantial investments of money and effort ∙ Involves long-term commitments ∙ Has significant impact on cost and efficiency of short-term operations Importance of Layout Decisions
- 13. 6-13 Process Selectionand Facility Layout Inefficient operations For Example: High Cost Bottlenecks Changes in the design of products or services The introduction of new products or services Accidents Safety hazards The Need for Layout Decisions
- 14. 6-14 Process Selectionand Facility Layout Changes in environmental or other legal requirements Changes in volume of output or mix of products Changes in methods and equipment Morale problems The Need for Layout Design (Cont’d)
- 15. 6-15 Process Selectionand Facility Layout ∙ Product layouts ∙ Process layouts ∙ Fixed-Position layout ∙ Combination layouts Basic Layout Types
- 16. 6-16 Process Selectionand Facility Layout ∙ Product layout ∙ Layout that uses standardized processing operations to achieve smooth, rapid, high-volume 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 Basic Layout Types
- 17. 6-17 Process Selectionand Facility Layout Raw materials or customer Finished item Stati on 2 Stati on 3 Stati on 4 Material and/or labor Station 1 Material and/or labor Material and/or labor Material and/or labor Used for Repetitive or Continuous Processing Figure 6.4 Product Layout
- 18. 6-18 Process Selectionand Facility 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 Advantages of Product Layout
- 19. 6-19 Process Selectionand Facility 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 Disadvantages of Product Layout
- 20. 6-20 Process Selectionand Facility Layout Dept. A Dept. B Dept. D Dept. C Dept. F Dept. E Used for Intermittent processing Job Shop or Batch Process Layout (functional) Figure 6.7 Process Layout
- 21. 6-21 Process Selectionand Facility Layout Work Station 1 Work Station 2 Work Station 3 Figure 6.7 (cont’d) Product Layout (sequential) Used for Repetitive Processing Repetitive or Continuous Product Layout
- 22. 6-22 Process Selectionand Facility Layout ∙ Can handle a variety of processing requirements ∙ Not particularly vulnerable to equipment failures ∙ Equipment used is less costly ∙ Possible to use individual incentive plans Advantages of Process Layouts
- 23. 6-23 Process Selectionand Facility Layout ∙ 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 Disadvantages of Process Layouts
- 24. 6-24 Process Selectionand Facility Layout ∙ Cellular Production ∙ Layout in which machines are grouped into a cell that can process items that have similar processing requirements ∙ Group Technology ∙ The grouping into part families of items with similar design or manufacturing characteristics Cellular Layouts
- 25. 6-25 Process Selectionand Facility Layout ∙ Warehouse and storage layouts ∙ Retail layouts ∙ Office layouts Other Service Layouts
- 26. 6-26 Process Selectionand Facility Layout Line Balancing is the process of assigning tasks to workstations in such a way that the workstations have approximately equal time requirements. Design Product Layouts: Line Balancing
- 27. 6-27 Process Selectionand Facility Layout Cycle time is the maximum time allowed at each workstation to complete its set of tasks on a unit. Cycle Time
- 28. 6-28 Process Selectionand Facility Layout Determine Maximum Output
- 29. 6-29 Process Selectionand Facility Layout Determine the Minimum Number of Workstations Required
- 30. 6-30 Process Selectionand Facility Layout Precedence diagram: Tool used in line balancing to display elemental tasks and sequence requirements A Simple Precedence Diagram a b c d e 0.1 min. 0.7 min. 1.0 min. 0.5 min. 0.2 min. Figure 6.10 Precedence Diagram
- 31. 6-31 Process Selectionand Facility Layout Efficiency = 1 – Percent idle time Calculate Percent Idle Time
- 32. 6-32 Process Selectionand Facility Layout ∙ 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. Some Heuristic (intuitive) Rules: Line Balancing Rules
- 33. 6-33 Process Selectionand Facility Layout Information Requirements: 1. List of departments 2. Projection of work flows 3. Distance between locations 4. Amount of money to be invested 5. List of special considerations 6. Location of key utilities Designing Process Layouts