Operations Management (MD021)

Process Selection and Facility Layout

Agenda
Defining Process Process Types and the Product-Process Matrix Process Selection Facility Layout

Defining Process

Process Three Definitions

A Manufacturing Process is a configuration of people, technology, systems, and information, used to transform inventories of physical inputs into physical outputs. A Service Process is a configuration of technologies and service delivery personnel (and their associated methods, training, information) used to deliver a service-product An e-Service Process is a configuration of digital technologies, supporting physical technologies, and human service personnel used to deliver an e-Service

Process Types and the Product-Process Matrix

Project Process Type

Projects
Nonroutine Unique set of objectives/custom Limited time frame Processes, people, materials are brought to the location of the project activities

Examples: house building, ship building, rock concerts

Fixed Position Layouts (Projects)

Fixed Position Layout
the item being worked on remains stationary workers, materials, and equipment are moved as needed to the production site

Management Issues
focus on timing of materials/equipment delivers so as not to clog up worksite avoid relocation of equipment high administrative burden of scheduling all activities to take place on time/at allocated cost

Classic Manufacturing Processes

Hayes and Wheelwright (1979)
Job Shop
Unique items, customized, low volume Low volume High flexibility

Batch Shop
Moderate volume Make many items in a batch at a time

Repetitive (Discrete) Flow

Production line, high volume, standardized

Continuous Flow
Very high volumes Extremely standardized process High volume Low flexibility

Product Process Matrix for Manufacturing Operations

Process Type Custom Low Volume

Product Types

Broad Demand High Volume

BAD

Job Shop

Appliance repair Emergency room

Batch Shop

Commercial bakery Classroom Lecture

Repetitive Flow Continuous Flow

BAD

Automotive assembly Automatic carwash Oil refinery Water purification

Characteristics of Process Types

Dimension Job variety Process flexibility Unit cost Volume of output Job Shop Very High Very High Batch Moderate Moderate Repetitive Low Low Continuous Very low Very low

Very High Very Low

Moderate Low

Low High

Very low Very high

Problems With The ProductProcess Matrix

The matrix does not account for modern flexible process types
Computer integrated manufacturing Flexible manufacturing systems (FMS) Mass customization/Personalization systems Fabrication laboratories (FAB labs) Networked systems International/cross-organization integrated systems

The matrix also does not represent service processes or e-service processes

Process Evolution after the Age of Mass Production

Intelligent Automation is used to create new process types (Jaikumar 1988)

Mechanization (Machine and Human Control) High Discretion High Scope
Craftsmen (Projects) English system Job shop Batch flow American system

Intelligent (Computerized Control)

FAB Labs tive abora tion Coll Networks za stomi Cu Mass customization Flexible Manuf. Sys. (FMS) CIM Computer NC Numerical Control (NC)
Di Co scre nt t e inu fl ou ow sf low

Low Discretion Low Scope

Taylor Discrete flow Continuous flow

Dynamic

Automation has been used to enhance processes

Automation: Machinery with sensing and control devices that enables it to operate automatically
Fixed automation
rigid, high cost, specialized equipment for standard, high-volume production

Programmable automation
higher-cost, general purpose equipment, provides more flexibility

Flexible automation
Most flexible, customizable equipment

Automation in Manufacturing
Programmable automation
Numerically controlled (NC) machines Robots

Flexible Automation
Robots Manufacturing cells Computer-aided design and manufacturing systems (CAD/CAM) Flexible manufacturing systems (FMS) Computer-integrated manufacturing (CIM)

Flexible Manufacturing Systems

Flexible Manufacturing System
Several machine tools are linked together by a material handling system Has supervisory computer control, automated material handling, robots, automated processing devices

Computer Integrated Manufacturing

Using a computer to link two or more FMS together Potentially also includes engineering design, purchasing, order processing, production planning, production control

Eras of Operations Management

10,000 BC 1700 AD 1850 1900 -1975 1975 Process and Quality Improvement, Lean Systems 1990 Mass Customization 2000 Extreme Personalization Collaborative Customization

Craft

Job Shop Production

Batch Production

Mass Production

Skilled artisan Apprentices

Division of labor Interchangeable parts Mechanization

Highly repetitive Continual improvement of Specialized quality worker tasks

Digitally automated Distributed across technology for WWW needs analysis, product design, production Customization, innovative design quality, modular flexibility Customer value, great service, fast delivery time, high flexibility

High flexibility High cost Design quality

Low flexibility High efficiency Low cost

Conformance quality

High variety Low volume

Low variety High volume

High variety High volume

Tradeoffs

Elimination of Tradeoffs

Eras of Operations Management

Craft Job Shop Production Batch Production Mass Production
Process and Quality Improvement Lean Systems
Mass Customization Extreme Personalization Collaborative Customization

uses Project Job Shop ProcessBatch Shop Process Flow Shop Flow Shop Flexible Flow Process Continuous Flow Flexible Continuous Flow Automation Process is useful for .. Make-to-order Make-to-order Make-to-order Assemble-toAssemble-to-order order Make-to-stock Make-to-stock Assemble-toorder Make-to-stock Assemble-to-order Make-to-order Make-to-order Networked/ Distributed Process

To sum up
Managers must choose appropriate processes for what they are producing (goods, service, eservice) Process choice should match customers product needs Inappropriate process choices can put your company in a BAD situation operationally and strategically

Process Selection

Process Selection
Process Selection
Deciding on the way production of goods or services will be organized
How much variety is needed? How much volume is needed? How much flexibility is needed?
These can guide us to a common process type

Once you choose a process type, it affects many other decisions

These affect process choice Process choice determines these

Forecasting

Capacity Planning

Facilities and Equipment

Product and Service Design Process Selection

Layout

Technological Change

Work Design

Facilities Layout

Facilities Layout
Facilities Layout: the physical configuration of departments, work centers, and equipment, with particular emphasis on movement of work (customers or materials) through the system

Basic Facility Layout Types

Fixed Position layout (i.e., Projects)
Layout in which the product or project remains stationary, and workers, materials, and equipment are moved as needed

Process layout (i.e., Job Shop)

Layout that can handle varied processing requirements

Product layout (i.e., Discrete Flow)

Layout that uses standardized processing operations to achieve smooth, rapid, high-volume flow

Combinations of the above

Typical Layout
Craft Job Shop Production Batch Production Mass Production
uses Project Job Shop ProcessBatch Shop Process Flow Shop Flow Shop Flexible Flow Process Continuous Flow Flexible Continuous Flow Automation Process Uses layout .. Networked/ Distributed Process

Process and Quality Improvement

Mass Customization

Extreme Personalization Collaborative Customization

Fixed Position Process Layout Process Layout Product Layout Product Layout Hybrid Layout Combination Hybrid Combination

Hybrid Combination

Cellular Production Group Technology Flexible Manufacturing Systems (FMS) Computer Integrated Manufacturing (CIM)

Product Layout

Product Layout

Raw materials or customer

Material and/or labor

Station 1 Material and/or labor

Station Station 22 Material and/or labor

Station Station 33 Material and/or labor

Station Station 44

Finished item

Used for Repetitive or Continuous Processing

Advantages of Product 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

Disadvantages 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

Design of Product Layout

Designing Product Layouts: Line Balancing and Cycle Time

Line Balancing is the process of assigning tasks to workstations in such a way that the workstations have approximately equal time requirements. Cycle time is the maximum time allowed at each workstation to complete its set of tasks on a unit.

Simulation Tools Can Be Used to Design Product Layouts

Most Real-World Product Layouts Are Much Too Complex for The Line Balancing Methods In Your Textbook to be Useful

Process Layout

Process Layout
Process Layout (functional)
Dept. A Dept. B Dept. C Dept. D Dept. E Dept. F

Used for Intermittent processing Job Shop or Batch

Often Used in Service Operations Grocery Stores, -Service Restaurants, University Offices, Amusement P

Process (Functional) Layout allows a flexible flow between stations

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Advantages of Process Layouts

Can handle a variety of processing requirements Not particularly vulnerable to equipment failures Equipment used is less costly Possible to use individual incentive plans

Disadvantages 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 involved

Design of Process Layout

Designing Process Layouts

Often Focus on Distance Between Processing Resources
Objective: Minimize travel distances of WIP/employees/machines Many heuristics and optimization approaches available to minimize travel times

Identify bottlenecks, resolve Simulate system using a computer simulation to estimate processing times, system throughput, waiting lines, bottlenecks

Simulation Tools Can Be Used to Design Process Layouts

Today, simulation tools are often used instead of optimization tools Very realistic information can be factored into the simulation Leads to more realistic (believable) results

Other Important Layouts

Cellular Layouts
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 Manufacturing Layout

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