OM Chapter 6

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1. Advantages Low variability (improve quality and 9. Cellular Layout in which workstations are grouped
of consistency of products/services); more Layout into a cell that can process items that have
Automation dependable (not distracted, get bored, strike (Cellular similar processing requirements. Each cell
etc.); reduce variable costs. Production) becomes a miniature version of product
layout. Combine the flexibility of a job shop
2. Basic 1. Product layout.
with the efficiency repetitive process.
Layout 2. Process layout.
Types 3. Fixed-position layout 10. Combination Some operational environments use a
Layout combination of the three basic layout types.
3. Basic A process types in which goods of services are
Examples: Hospitals use combo of process
Process produced in group (batches), NOT in a
and fixed-position layouts. Supermarkets
Type: Batch continuous stream.
mainly use process layout, but use product
Output characteristics: Moderate product
layout at cash registers.
variety and volume.
Process characteristics: Intermittent, requires
Combination layouts allows for a more ideal
moderate flexibility (in employees and
layout for a manufacturer; this layout is both
equipment), & moderate cost per unit of output.
efficient (high volume output) and flexible
4. Basic A process type used for very high-volume, non- (more variety). Examples: Cellular
Process discrete, and highly standardized products. production and Flexible manufacturing
Type: Output characteristics: Very high volume, little systems.
Continuous or no variety, & non-discrete.
11. Common Warehouse, retail, & office layouts.
Process characteristics: Follows same sequence
Service
and costly to change, operations run 24/7 with
Layouts
very high cost if down, & highly specialized
equipment (no flexibility) and low-skilled 12. Designing It concerns the relative placement of the
workers. Process departments; Measuring effectiveness: A
Layout common objective is to minimize
5. Basic Output characteristics: Customized, low volume
transportation cost or distance.
Process and high variety.
Type: Job Process characteristics: Intermittent, high 13. Design The process of assigning tasks to
Shop flexibility (high variety of inputs & process Product workstations such that all the workstations
flows), requires highly skilled workers, general- Layout: Line have approximately equal time requirements.
purpose equipment, & high cost per unit of Balancing
output.
14. Disadvantages Initial investment is very costly; much less
6. Basic A nonrepetitive set of activities directed toward of Automation flexible.
Process a unique goal within a limited time frame.
15. Facility Layout The configuration of departments, work
Type: Output characteristics: Unique, "one of a kind"
centers, and equipment, with particular
Project product.
emphasis on movement of work (customers
Process characteristics: scheduling activities is
or materials) through the system.
challenging, requires high flexibility, some
activities are outsourced. 16. Facility Layout Designing new facility or redesigning
Decisions existing facility.
7. Basic A process type in which discrete items flow
Arise When:
Process through the same sequence of activities.
Type: Output characteristics: High volume and low 17. Facility Layout Facilitate smooth flow of work, material, and
Repetitive variety (standardized products/services with Design, Basic information through system.
limited customization). Objective
Process characteristics: Same sequence of 18. Facility Layout 1. Facilitate attainment of product or service
activities for all items, slight flexibility in Design, quality; 2. Use workers and space efficiently;
equipment, & low-skilled workers who only Supporting 3. Avoid bottlenecks; 4. Minimize material
specialize in a few activities. Objectives handling costs; 5. Eliminate unnecessary
8. Capital Mix of labor and equipment that will be used movement of works or materials; 6. Minimize
Intensity by a business. production time or customer service time; 7.
Design for safety.
19. Fixed- Layout in which job or project remains 28. Process
position stationary; workers, materials, and equipment Layout
Layout are moved to the site as needed. Examples:
construction projects, shipbuilding.
20. Goal of Line Balance the workload (time) among all
Balancing workstations to minimize idle time and
achieve a high utilization of equipment and
labor.
21. Key Range of products/services that will be
dimensions processed; i.e., product variety, types of Also referred to as Functional Layout. Can
of Product service. Expected order sizes (demand handle a variety of processing requirements
and Service volume). Pricing strategy i.e., stable vs. (this a variety of jobs). Examples: Machine
Profiling dynamic price. Expected frequency of shop, hospital, university, bank, etc.
schedule changes. Order-winner requirements
low price vs. high variety. Includes multiples routes for jobs or
customers. Used for intermittent process;
22. Line The maximum time allowed each workstation Job Shop or Batch process.
Balancing: to complete its set of tasks on a unit. Cycle
Cycle Time time = Operating time/ Desired output. 29. Process Can handle variety of processing
Layout requirements and jobs; Not particularly
23. Line See slides 31-34 - Chapter 6 PPT. Advantages vulnerable to equipment failures; General-
Balancing purpose equipment is used and less costly
Example: to purchase, and easier, less costly to
Precedence maintain; It is possible to use individual
Diagram incentive systems (permits different work
24. Line Formula: Sum of task times (min)/ Cycle time pace).
Balancing: 30. Process Work-in-process inventory can be high;
Theoretical Layout Routing and scheduling pose continual
Minimum Disadvantages challenges; Equipment utilization rates are
Number of low (routing/scheduling); Material handling
Workstations is slow and inefficient (due to variety);
Needed Reduced spans of supervision; Special
25. Major Capacity planning, Facility layout, Equipment attention necessary for each job or
Implications choices (general vs. specialized), & Design of customer; Accounting, inventory control,
of Process work systems. and purchasing are more involved.
Selection 31. Process Deciding on the way production of goods
26. Need for 1. Inefficient operations: High operations costs, Selection or services will be organized.
Redesigning bottleneck operations that limit output volume 32. Process Volume; what is the expected output?
Facility ; 2. Accidents or safety hazards; 3. Selection is Variety; how many?
Layout Introduction of new products or services; 4. Demand Equipment flexibility; to what degree?
Changes in product/service design; 5. Driven
Changes in output volume or output mix; 6.
Changes in processing methods or 33. Process Determines process selection. Key aspects:
equipment; 7. Changes in environmental or Strategy Capital Intensity & Process Flexibility.
other legal requirements; 8. Morale problems. 34. Product and Link of key product/services to process
27. Process Degree of which a system can be adjusted to Service capabilities.
Flexibility accommodate any changes in processing Profiling
requirements of product/service design
changes, demand/volume changes, or
technology changes.
35. Product 41. Why is 1. It allows to use labor and equipment more
Layout line efficiently and avoid bottleneck; 2. To avoid
balancing fairness issues that arise when one workstation
important? must work hard or longer than another.
Layout uses standardized processing
operations to achieve smooth, rapid, high-
volume flow. A single flow of
material/customer, often is used in repetitive
process or continuous process.
36. Product High output rate; Low unit cost; High
Layout utilization of labor and equipment; Labor
Advantages specialization,;Low material handling cost
per unit; Established routing and scheduling;
Routine accounting, purchasing, and
inventory control (due to little or none
product variety).
37. Product Creates dull & repetitive jobs; Bored
Layout workers may not maintain equipment or
Disadvantages quality of output; Fairly inflexible to changes
in volume or the design of product or
process; Highly susceptible to shutdowns;
Preventative maintenance, capacity for quick
repair and spare-parts inventories are
necessary expenses; Individual incentive
plans are impractical.
38. Product- Y-axis: Variety, Flexibility, Cost per Unit.
Process Matrix X-axis: Volume.

Project: Highest variety, flexibility, cost per

unit; Lowest volume.
Job Shop: 2nd highest variety, flexibility, cost
per unit; 2nd lowest volume.
Batch: Moderate variety, flexibility, cost per
unit; moderate volume.
Mass Customization: As high variety, flex,
and cost per unit as Job Shop; also 2nd
highest (on par with Repetitive) volume.
Repetitive: 2nd lowest variety, flexibility,
cost per unit; 2nd highest volume.
Continuous: Lowest variety, flexibility, cost
per unit; Lowest volume.
39. Service Service layouts can also be categorized as:
Layout product layout, process layout, or fixed
position layout.
40. Service Degree of customer contact; Degree of
Layout customization.
Requirements
Differ
Because of: