OPERATIONS MANAGEMENT

Process Selection
And Facility Layout

YASMIN AFZAAL
CHAPTER
6

Process Selection
and Facility Layout
6-3 Process Selection and Facility Layout

Introduction

 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
6-4 Process Selection and Facility Layout

Process Selection and System Design

Figure 6.1

Facilities and
Forecasting Capacity Equipment
Planning

Product and Layout

Service Design

Process
Technological Selection Work
Change Design
Process Strategy
• Key aspects of process strategy
– Capital intensive – equipment/labor
– Process flexibility
– Adjust to changes
– Design
– Volume
– technology
6-6 Process Selection and Facility Layout

Process Selection

 Variety Batch
 How much
 Flexibility
 What degree Job Shop Repetitive
 Volume
 Expected output

Continuous
6-7 Process Selection and Facility Layout

Process Types
 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
6-8 Process Selection and Facility Layout

Product – Process Matrix

Figure 6.2
Process Type
Job Shop Appliance repair
Emergency
room
Batch Commercial
bakery
Classroom
Lecture
Repetitive Automotive
assembly
Automatic
carwash
Continuous Oil refinery
Water purification
(flow)
6-9 Process Selection and Facility Layout

Automation
 Automation: Machinery that has sensing and control
devices that enables it to operate
 Fixed automation
 Programmable automation
6-10 Process Selection and Facility Layout

Facilities Layout
 Layout: the configuration of departments, work
centers, and equipment, with particular emphasis
on movement of work (customers or materials)
through the system
6-11 Process Selection and Facility Layout

Importance of Layout Decisions

 Requires substantial investments of money and
effort
 Involves long-term commitments
 Has significant impact on cost and efficiency of
short-term operations
6-12 Process Selection and Facility Layout

The Need for Layout Design

Changes in
environmental Changes in volume of
or other legal output or mix of
requirements products

Morale problems
Changes in methods
and equipment
6-13 Process Selection and Facility Layout

Basic Layout Types

 Product layouts
 Process layouts
 Fixed-Position layout
 Combination layouts
6-14 Process Selection and Facility Layout

Basic 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
6-15 Process Selection and Facility Layout

Product Layout
Figure 6.4

Raw Finished
Station Station
Station Station
Station Station
Station
materials 1 22 33 44 item
or customer
Material Material Material Material

and/or and/or and/or and/or

labor labor labor labor

Used for Repetitive or Continuous Processing

6-16 Process Selection and Facility Layout

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
6-17 Process Selection and Facility Layout

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
6-18 Process Selection and Facility Layout

Process Layout
Figure 6.7
Process Layout
(functional)

Dept. A Dept. C Dept. E

Dept. B Dept. D Dept. F

Used for Intermittent processing

Job Shop or Batch
6-19 Process Selection and Facility Layout

Product Layout
Figure 6.7 (cont’d)
Product Layout
(sequential)

Work Work Work

Station 1 Station 2 Station 3

Used for Repetitive Processing

Repetitive or Continuous
6-20 Process Selection and Facility Layout

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
6-21 Process Selection and Facility Layout

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
6-22 Process Selection and Facility Layout

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
6-23 Process Selection and Facility Layout

Other Service Layouts

 Warehouse and storage layouts
 Retail layouts
 Office layouts
Design Product Layouts: Line
6-24 Process Selection and Facility Layout

Balancing

Line Balancing is the process of assigning

tasks to workstations in such a way that
the workstations have approximately
equal time requirements.
6-25 Process Selection and Facility Layout

Cycle Time

Cycle time is the maximum time

allowed at each workstation to
complete its set of tasks on a unit.
6-26 Process Selection and Facility Layout

Determine Maximum Output

OOTT
OOuutp
tpuutt ccaappaaccity
ity ==
CCTT

OOTT  ooppeera
ratin
tingg tim
timee ppeerr ddaayy

DD == DDeessire
iredd oouutp
tpuutt ra
rate
te

OOTT
CCTT == ccyc
ycle
le tim
timee ==
DD
6-27 Process Selection and Facility Layout
Determine the Minimum Number
of Workstations Required

(D)(t)
N=
OT

t = sum of task times

6-28 Process Selection and Facility Layout

Precedence Diagram
Figure 6.10

Precedence diagram: Tool used in line balancing to

display elemental tasks and sequence requirements
0.1 min. 1.0 min.
A Simple Precedence
a b Diagram

c d e
0.7 min. 0.5 min. 0.2 min.
6-29 Process Selection and Facility Layout

Calculate Percent Idle Time

I
dlet
imeperc
yc
le
P
er
cen
tid
le
tim
e=
(
N)(
CT)

Efficiency = 1 – Percent idle time

6-30 Process Selection and Facility Layout

Line Balancing Rules

Some Heuristic (intuitive) Rules:
 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.
6-31 Process Selection and Facility Layout

Designing Process Layouts

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