Process Selection and Facility Layout

a. Technology
 Automation
i. Fixed automation
ii. Programmable automation
1. Computer-aided manufacturing
2. Numerically Controlled machines
iii. Flexible automation
1. Flexible manufacturing systems (FMS): A group of machines designed to handle
intermittent processing requirements and produce a variety of similar products
 Computer-integrated manufacturing (CIM)
i. A system for linking a broad range of manufacturing activities through an integrating
computer system

b. Process Selection

 Deciding on the way production of goods or services will be organized

 Occurs when:
i. Planning of new products or services
ii. Technological changes in product or equipment
iii. Competitive pressure

Process choice is demand driven:

1. Variety - How much?
2. Volume - Expected output?
3. Standardization
4. Equipment flexibility - To what degree?

Process Types
• Job shop
– Small scale/high variety
– e.g., doctor, tailor
• Batch
– Moderate volume/moderate variety
– e.g., bakery
• Repetitive/assembly line
– High volumes of standardized goods or services
– e.g., automobiles
• Continuous
– Very high volumes of non-discrete goods
– e.g., petroleum products

Types of Processing
 Repetitive/
Job Shop Batch Assembly Continuous
Description Customized Semi- Standardized Highly standardized
goods or standardized goods or goods or services
services goods or services
services
Advantages Able to handle a Flexibility; easy Low unit cost, Very efficient, very high
wide variety to add or change high volume, volume
of work products or services efficient
Disadvantages Slow, high cost Moderate cost Low flexibility, Very rigid, lack of
per unit, per unit, high cost of variety, costly to
complex moderate downtime change, very high cost
planning and scheduling of downtime
scheduling complexity

Product-Process Matrix
(Flexibility/Variety)

Volume

• The diagonal represents the “ideal” match

• Hybrid process are possible (e.g., job-shop & batch)
• Process choice may change as products goes through its life-cycles

Process Choice Effects

Activity/
Function Projects Job Shop Batch Repetitive Continuous
Cost estimation Simple to Difficult Somewhat Routine Routine
complex routine
Cost per unit Very high High Moderate Low Low

Equipment used Varied General General purpose Special Special

purpose purpose purpose
Fixed costs Varied Low Moderate High Very high

Variable costs High High Moderate Low Very low

 Labor skills Low to high High Moderate Low Low to high

Marketing Promote Promote Promote Promote Promote

capabilities capabilities capabilities; standardized standardized
semi- goods/services goods/services
standardized
goods and
services
Scheduling Complex, Complex Moderately Routine Routine
subject complex
to change

c. Product and Service Profiling

 Product or service profiling

- Linking key product or service requirements to process capabilities
- Key dimensions relate to
1. Range of products or services that can be processed
2. Expected order sizes
3. Expected frequency of schedule changes

d. Facilities 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 decisions arise when:
i. Designing new facilities
ii. Re-designing existing facilities
 The basic objective of layout design is to facilitate a smooth flow of work, material, and information
through the system.

Basic Layout Types

a. Product layout
– Layout that uses standardized processing operations to achieve smooth, rapid, high-volume flow.
– The work is divided into a series of standardized tasks, permitting specialization of equipment and
division of labor.
b. Process layout
– Layout that can handle varied processing requirements
– The variety of jobs that are processed requires frequent adjustments to equipment
c. Fixed position layout
– Layout in which the product or project remains stationary, and workers, materials, and equipment
are moved as needed
d. Combination layouts

Product Layouts
• Product layout
– Layout that uses standardized processing operations to achieve smooth, rapid, high-volume flow
– E.g., production line or assembly line
How?
 • Although product layouts
often follow a straight line, a straight line is not always the best, and layouts may take an L, O, S, or U shape.
Why?
– L:
– O:
– S:
– U: more compact, increased communication facilitating team work, minimize the material handling

Advantages
• High rate of output
• Low unit cost
• Labor specialization
• Low material handling cost per unit
• High utilization of labor and equipment
• Established routing and scheduling
• Routine accounting, purchasing, and inventory control

Disadvantages
• Creates dull, repetitive jobs
• Poorly skilled workers may not maintain equipment or quality of output
• Fairly inflexible to changes in volume or product or process design
• Highly susceptible to shutdowns
• Preventive maintenance, capacity for quick repair and spare-parts inventories are necessary expenses
• Individual incentive plans are impractical

Non-repetitive Processing:
Process Layouts

 Process layouts
– Layouts that can handle varied processing requirements
– E.g., machine shop: milling, grinding, drilling, etc.
 Advantages
• Can handle a variety of processing requirements
• Not particularly vulnerable to equipment failures
• General-purpose equipment is often less costly and easier and less costly to maintain
• It is possible to use individual incentive systems

Disadvantages
• In-process inventories can be high
• Routing and scheduling pose continual challenges
• Equipment utilization rates are low
• Material handling is slow and less efficient
• Complicates supervision
• Special attention necessary for each product or customer
• Accounting, inventory control, and purchasing are more complex

Fixed Position Layouts

• Fixed Position Layout
– Layout in which the product or project remains stationary, and workers, materials, and equipment
are moved as needed
– E.g., farming, firefighting, road building, home building, remodeling and repair, and drilling for oil

Combination Layouts
• Some operational environments use a combination of the three basic layout types:
– Hospitals
– Supermarket
– Shipyards
• Some organizations are moving away from process layouts in an effort to capture the benefits of product
layouts

e. Line Balancing
 The process of assigning tasks to workstations in such a way that the workstations have
approximately equal time requirements
 Goal:
 Obtain task grouping that represent approximately equal time requirements since this
minimizes idle time along the line and results in a high utilization of equipment and labor
 Why is line balancing important?
 It allows us to use labor and equipment more efficiently.
 To avoid fairness issues that arise when one workstation must work harder than another.
 Input
 Tasks sequencing (precedence diagram)
Station
 Tasks time
Station Station Station
Raw materials
Material Material
 Operating 1time Material
2 Material
3 4 Finished
or customer item
and/or and/or and/or and/or
labor labor labor labor
Precedence Diagram
– A diagram that shows elemental tasks and their precedence requirements

Task Duration Immediate

(min) predecessor

a Select material 0.1 -

b Make petals 1.0 a
c Select rhinestones 0.7 -
d Glue rhinestones 0.5 b, c
e Package 0.2 d

Cycle Time
– The maximum time allowed at each workstation to complete its set of tasks on a unit (depending on
the number of workstations)
• Minimum Cycle Time = longest task time = 1.0 min
• Maximum Cycle time = Σt = sum of task time = 2.5 min

Output rate of a line

• Cycle time also establishes the output rate of a line

• The cycle time is generally determined by the desired output.

How Many Workstations are needed?

• The required number of workstations is a function of:
– Desired output rate
– The ability to combine tasks into a workstation
• (theoretical) Minimum number of stations

Q: Why this is a theoretical value?

A: There are often scraps or idle times.
Example:
4 tasks, each require 6 hours to finish
A station can handle 8 hours amount of tasks a day.
You will need 4 stations to complete all tasks, instead of 3.
Nmin = (6+6+6+6) / 8 = 3

f. Designing Process Layouts

 The main issue in designing process layouts concerns the relative placement of the departments
 Measuring effectiveness
– key objectives in designing process layouts are to minimize:
• transportation cost
• distance
• time

Information Requirements
• In designing process layouts, the following information is required:
1. A list of work stations (departments) to be arranged and their dimensions
2. A projection of future work flows between the pairs of work centers
3. The distance between locations - and the cost per unit of distance to move loads between them
4. The amount of money to be invested in the layout
5. A list of any special considerations
6. The location of key utilities, access and exit points, etc.

Designing Process Layouts

Minimize Transportation Costs
• Goal:
– Assign departments 1, 2, 3 to locations A, B, C in a way that minimizes transportation costs.

A B C
– Heuristic:
– Assign departments with the greatest interdepartmental work flow first to locations that are closet
to each other.

Example: Minimize Transportation Costs