Product service -profiling

Process Selection
and
Facility Layout

Learning ObjectivesLearning 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.

Learning ObjectivesLearning 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.

 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
IntroductionIntroduction

Forecasting
Product and
Service Design
Technological
Change
Capacity
Planning
Process
Selection
Facilities and
Equipment
Layout
Work
Design
Process Selection andProcess Selection and
System DesignSystem Design

• Key aspects of process strategy
– Capital intensive (mix of equipment/labor)
– Process flexibility
– Design
– Volume
– Technology
Process StrategyProcess Strategy

Kinds of TechnologyKinds 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

Technology CompetitiveTechnology Competitive
AdvantageAdvantage
 Innovations in
 Products and services
Cell phones
PDAs
Wireless computing
 Processing technology
Increasing productivity
Increasing quality
Lowering costs

 Variety
 How much
 Flexibility
 What degree
 Volume
 Expected output
Job Shop
Batch
Repetitive
Continuous
Process SelectionProcess Selection

 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 TypesProcess Types

Process Type
Job Shop Appliance repair
Emergency
room
Ineffective
Batch Commercial
baking
Classroom
Lecture
Repetitive Automotive
assembly
Automatic
carwash
Continuous
(flow)
Ineffective Steel Production
Water purification
Product and ServiceProduct and Service
ProcessesProcesses
Low Volume High Volume

Dimension Job shop Batch Repetitive Continuous
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 low Low High Very High
Product – Process MatrixProduct – Process Matrix
Other issues; scheduling
work-in-process inventory
labor skill

Process and Product ProfilingProcess and Product 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

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

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

 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
Facilities LayoutFacilities Layout

Objective of Layout DesignObjective of Layout Design
1. Facilitate attainment of product 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

 Requires substantial investments of
money and effort
 Involves long-term commitments
 Has significant impact on cost and
efficiency of short-term operations
Importance of LayoutImportance of Layout
DecisionsDecisions

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 DesignThe Need for Layout Design

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 DesignThe Need for Layout Design
(Cont’d)(Cont’d)

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

 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 TypesBasic Layout Types

Raw
materials
or customer
Finished
item
Station
2
Station
2
Station
3
Station
3
Station
4
Station
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
Product LayoutProduct Layout

 High rate of output
 Low unit cost
 Labor specialization
 Low material handling cost
 High utilization of labor and equipment
 Established routing and scheduling
 Routine accounting, purchasing and
inventory control
Advantages of Product LayoutAdvantages 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
Disadvantages of Product LayoutDisadvantages of Product Layout

1 2 3 4
5
6
78910
In
Out
Workers
A U-Shaped Production LineA U-Shaped Production Line
 Ease to cross-travel of workers and vehicles
 More compact
 More communication between workers

Work
Station 1
Work
Station 2
Work
Station 3
Product Layout
(sequential)
Used for Repetitive Processing
or Continuous Processes
Product LayoutProduct Layout

Dept. A
Dept. B Dept. D
Dept. C
Dept. F
Dept. E
Used for Intermittent processing
Job Shop or Batch Processes
Process Layout
(functional)
Process LayoutProcess 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 LayoutsAdvantages 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
Disadvantages of ProcessDisadvantages of Process
LayoutsLayouts

Fixed Position LayoutsFixed 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 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 LayoutsCellular Layouts

Dimension Functional Cellular
Number of moves
between departments
many few
Travel distances longer shorter
Travel paths variable fixed
Job waiting times greater shorter
Throughput time higher lower
Amount of work in
process
higher lower
Supervision difficulty higher lower
Scheduling complexity higher lower
Equipment utilization lower higher
Functional vs. Cellular LayoutsFunctional vs. Cellular Layouts

 Warehouse and storage layouts
 Retail layouts
 Office layouts
Service LayoutsService Layouts

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: LineDesign Product Layouts: Line
BalancingBalancing

Cycle time is the maximum time
allowed at each workstation to
complete its set of tasks on a unit.
Cycle TimeCycle Time

D
OT
=timecycle=CT
rateoutputDesired=D
daypertimeoperatingOT
CT
OT
=rateOutput
=
Determine Maximum OutputDetermine Maximum Output

task timeofsum=t
CT
t)(
=N
∑
∑
Determine the Minimum NumberDetermine the Minimum Number
of Workstations Requiredof Workstations Required

Precedence diagram: Tool used in line balancing to
display elemental tasks and sequence requirements
A Simple Precedence
Diagrama b
c d e
0.1 min.
0.7 min.
1.0 min.
0.5 min. 0.2 min.
Precedence DiagramPrecedence Diagram

 Arrange tasks shown in Figure 6.10 into
three workstations.
 Use a cycle time of 1.0 minute
 Assign tasks in order of the most number of
followers
Example 1: Assembly LineExample 1: Assembly Line
BalancingBalancing

Workstatio
n
Time
Remaining Eligible
Assign
Task
Revised
Time
Remaining
Station
Idle Time
1 1.0
0.9
0.2
a, c
c
none
a
c
-
0.9
0.2
0.2
2 1.0 b b 0.0 0.0
3 1.0
0.5
0.3
d
e
-
d
e
-
0.5
0.3 0.3
0.5
Example 1 SolutionExample 1 Solution

Percent idle time =
Idle time per cycle
(N)(CT)
Efficiency = 100 – Percent idle time
Calculate Percent Idle TimeCalculate Percent Idle Time

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 RulesLine Balancing Rules

Example 2Example 2
Plan to produce 400 units in 1 day (8 hours)
Immediate Task time
Task follower (min)
a b 0.2
b e 0.2
c d 0.8
d f 0.6
e f 0.3
f g 1.0
g h 0.4
h end 0.3
c d
a b e
f g h
0.2 0.2 0.3
0.8 0.6
1.0 0.4 0.3

Station 1 Station 2 Station 3 Station 4
a b e
f
d
g h
c
Solution to Example 2Solution to Example 2

1 min.2 min.1 min.1 min.
30/hr. 30/hr. 30/hr. 30/hr.
Bottleneck
Bottleneck WorkstationBottleneck Workstation

Parallel WorkstationsParallel Workstations
1 min.
2 min.
1 min.1 min.
60/hr.
30/hr. 30/hr.
60/hr.
2 min.
30/hr.
30/hr.
Parallel Workstations

Copier ExampleCopier Example
This means thatThis means that
tasks B and Etasks B and E
cannot be donecannot be done
until task A hasuntil task A has
been completedbeen completed
PerformancePerformance Task Must FollowTask Must Follow
TimeTime Task ListedTask Listed
TaskTask (minutes)(minutes) BelowBelow
AA 1010 ——
BB 1111 AA
CC 55 BB
DD 44 BB
EE 1212 AA
FF 33 C, DC, D
GG 77 FF
HH 1111 EE
II 33 G, HG, H
Total timeTotal time 6666

AA 1010 ——
BB 1111 AA
CC 55 BB
DD 44 BB
EE 1212 AA
FF 33 C, DC, D
GG 77 FF
HH 1111 EE
II 33 G, HG, H
Total timeTotal time 6666 I
GF
C
D
H
B
E
A
10
1112
5
4
3
711 3
Figure 9.13

I
GF
C
D
H
B
E
A
10
1112
5
4
3
711 3
Figure 9.13
AA 1010 ——
BB 1111 AA
CC 55 BB
DD 44 BB
EE 1212 AA
FF 33 C, DC, D
GG 77 FF
HH 1111 EE
II 33 G, HG, H
480 available
mins per day
40 units required
Cycle time =
Production time
available per day
Units required per day
= 480 / 40
= 12 minutes per unit
Minimum
number of
workstations
=
∑ Time for task i
Cycle time
n
i = 1
= 66 / 12
= 5.5 or 6 stations

I
GF
C
D
H
B
E
A
10
1112
5
4
3
711 3
Figure 9.13
AA 1010 ——
BB 1111 AA
CC 55 BB
DD 44 BB
EE 1212 AA
FF 33 C, DC, D
GG 77 FF
HH 1111 EE
II 33 G, HG, H
480 available
mins per day
40 units required
Cycle time = 12 mins
Minimum
workstations = 5.5 or 6
Line-Balancing Heuristics
1. Longest task time Choose the available task with
the longest task time
2. Most following tasks Choose the available task with
the largest number of following
tasks
3. Ranked positional
weight
Choose the available task for
which the sum of following task
times is the longest
4. Shortest task time Choose the available task with
the shortest task time
5. Least number of
following tasks
Choose the available task with
the least number of following
tasks
Table 9.4

480 available
mins per day
40 units required
Minimum
AA 1010 ——
BB 1111 AA
CC 55 BB
DD 44 BB
EE 1212 AA
FF 33 C, DC, D
GG 77 FF
HH 1111 EE
II 33 G, HG, H
I
GF
H
C
D
10 11
12
5
4
3 7
11
3
B
E
A
Station
1
Station
2
Station
3
Station
5
Station 4
Station 6
Figure 9.14

AA 1010 ——
BB 1111 AA
CC 55 BB
DD 44 BB
EE 1212 AA
FF 33 C, DC, D
GG 77 FF
HH 1111 EE
II 33 G, HG, H
480 available
mins per day
40 units required
Minimum
Efficiency =
∑ Task times
(actual number of workstations) x (largest cycle time)
= 66 minutes / (6 stations) x (12 minutes)
= 91.7%

Example 1Example 1
11 0.200.20 --
22 0.400.40 --
33 0.700.70 11
44 0.100.10 1,21,2
55 0.300.30 22
66 0.110.11 33
77 0.320.32 33
88 0.600.60 3,43,4
99 0.270.27 6,7,86,7,8
1010 0.380.38 5,85,8
1111 0.500.50 9,109,10
1212 0.120.12 1111
Total time 4 min.Total time 4 min.
Balance byBalance by
1 Longest task time1 Longest task time
methodmethod
2 RPW method2 RPW method

Example 2Example 2
11 0.50.5 --
22 0.30.3 11
33 0.80.8 11
44 0.20.2 22
55 0.10.1 22
66 0.60.6 33
77 0.40.4 4,54,5
88 0.50.5 3,53,5
99 0.30.3 7,87,8
1010 0.60.6 6,96,9
Total time 4.3 min.Total time 4.3 min.
Balance byBalance by
1 Longest task time1 Longest task time
methodmethod
2 RPW method2 RPW method

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 LayoutsDesigning Process Layouts

1 3 2
30
170 100
A B C
Example 3: Interdepartmental WorkExample 3: Interdepartmental Work
FlowsFlows
for Assigned Departmentsfor Assigned Departments

Gear
cutting
Mill Drill
Lathes
Grind
Heat
treat
Assembly
111
333
222
444
222
111
444
111 333
1111 2222
222
3333
111
444
111
333333333
44444
333333
22222
Functional LayoutFunctional Layout

1111 -1111
2222 - 2222
Assembly
3333 - 3333
4444 - 4444
Lathe
Lathe
Mill
Mill
Mill
Mill
Drill
Drill
Drill
Heat
treat
Heat
treat
Heat
treat
Gear
cut
Gear
cut
Grind
Grind
Cellular Manufacturing LayoutCellular Manufacturing Layout

 Used to obtain optimal solutions to
problems that involve restrictions or
limitations, such as:
 Materials
 Budgets
 Labor
 Machine time
Linear ProgrammingLinear Programming

 Objective Function: mathematical statement
of profit or cost for a given solution
 Decision variables: amounts of either inputs
or outputs
 Feasible solution space: the set of all
feasible combinations of decision variables as
defined by the constraints
 Constraints: limitations that restrict the
available alternatives
 Parameters: numerical values
Linear Programming ModelLinear Programming Model

1.Set up objective function and
constraints in mathematical format
2.Plot the constraints
3.Identify the feasible solution space
4.Plot the objective function
5.Determine the optimum solution
Graphical Linear ProgrammingGraphical Linear Programming
Graphical method for finding optimal
solutions to two-variable problems

 Objective - profit
Maximize Z=60X1 + 50X2
 Subject to
Assembly 4X1 + 10X2 <= 100 hours
Inspection 2X1 + 1X2 <= 22 hours
Storage 3X1 + 3X2 <= 39 cubic feet
X1, X2 >= 0
Linear Programming ExampleLinear Programming Example

Assembly Constraint
4X1 +10X2 = 100
0
2
4
6
8
10
12
0
2
4
6
8
10
12
14
16
18
20
22
24
Product X1
ProductX2

Add Inspection Constraint
2X1 + 1X2 = 22
0
5
10
15
20
25
0
2
4
6
8
10
12
14
16
18
20
22
24
Product X1
ProductX2

Add Storage Constraint
3X1 + 3X2 = 39
0
5
10
15
20
25
0
2
4
6
8
10
12
14
16
18
20
22
24
Product X1
ProductX2
Assembly
Storage
Inspection
Feasible solution space

Add Profit Lines
0
5
10
15
20
25
0
2
4
6
8
10
12
14
16
18
20
22
24
Product X1
ProductX2
Z=300
Z=900
Z=600

 The intersection of inspection and storage
 Solve two equations in two unknowns
2X1 + 1X2 = 22
3X1 + 3X2 = 39
X1 = 9
X2 = 4
Z = $740
SolutionSolution

Solutions and Corner PointsSolutions and Corner Points
 Feasible solution space is usually a polygon
 Solution will be at one of the corner points
 Enumeration approach: Substituting the
coordinates of each corner point into the
objective function to determine which corner
point is optimal.

 Simplex: a linear-programming
algorithm that can solve problems
having more than two decision
variables
Simplex MethodSimplex Method

MS Excel Worksheet forMS Excel Worksheet for
Microcomputer ProblemMicrocomputer Problem

MS Excel Worksheet SolutionMS Excel Worksheet Solution

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Editor's Notes