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Chapter 6 Process Selection and Facility Layout. Facilities and Equipment. Capacity Planning. Forecasting. Facility Layout. Product and Service Design. Process Selection. Work Design. Technological Change. Process Selection as Part of System Design.

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process selection as part of system design

Facilities andEquipment

CapacityPlanning

Forecasting

Facility Layout

Product andService Design

ProcessSelection

WorkDesign

TechnologicalChange

Process Selection as Part of System Design
  • Deciding on the waythe production of goods or services will be organized

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process choice decisions
Process Choice Decisions

Three Types of Goods and Services

Custom, or make-to-order, goods and services

are generally produced and delivered as one-of-a-kind or in small quantities, and are designed to meet specific customers’ specifications.

Examples: ships, weddings, certain jewelry, estate plans, buildings, and surgery.

Option, or assemble-to-order, goods and services

are configurations of standard parts, subassemblies, or services that can be selected by customers from a limited set.

Examples:desktop computers, Subway sandwiches, vacation in tour, BBA

Standard, or make-to-stock, goods and services

are made according to a fixed design, and the customer has no options from which to choose.

Examples: appliances, shoes, sporting goods, credit cards, on-line Web-based courses, and bus service.

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the big picture
The Big Picture

Types of

Goods and Services

Custom

make-to-order

Option

assemble-to-order

Standard

make-to-stock

Types of

Processes

1. Projects

2. Job-Shop

3. Batch

4. Repetitive/

(Assembly Lines)

5. Continuous

Types of

Layout

1. Fixed Position Layout

2. Process/Functional Layout

3. Product Layout

4. Combination

Layout

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types of processes

Job-Shop

(intermittent process)

Process/Functional Layout

Repetitive

(assembly line)

Product Layout

Continuum

Make to Stock

Low variety, high volume

High utilization (70% - 95%)

Specialized equipment

Make to Order

High variety, low volume

Low utilization (5% - 25%)

General-purpose equipment

Types of Processes

Projects

Job shop:Small scale production

Batch:Moderate volume production

Repetitive/assembly line:High volumes of standardized goods or services

Continuous:Very high volumes of non-discrete goods

Batch

Continuous

Product Layout

Flexible equipment

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slide7

Batch

Repetitive

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volume variety and process matrix
Volume, Variety and Process Matrix

Low-Volume

Repetitive Process

High-Volume

Process/Functional focus (Intermittent)

projects, job shop

(machine, print, carpentry)

Kinko’s

Different Products:

(High Variety)

One or few units per run, high variety

(allows customization)

Mass Customization

(difficult to achieve, but huge rewards)

Dell Computer Co.

(Batch)

Different Modules

Modest runs,

standardized modules

Repetitive

(autos, motorcycles)

Honda

Poor strategy

Product focus

(steel, glass)

Nucor Steel

Different Attributes only

(Low Variety)

(such as grade, quality, size, thickness, etc.)

Long runs only

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assembly line balancing

0.1 min

0.7 min

1.0 min

0.5 min

0.2 min

Assembly-Line Balancing

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assembly line balancing1

0.1 min

0.7 min

1.0 min

0.5 min

0.2 min

Assembly-Line Balancing
  • Assembly-Line Balancing
  • An assembly line isa product layout dedicated to combining the components of a good or service that has been created previously.
  • Assembly line balancing is a technique for grouping tasks to balance the workload on workstations.
  • Cycle time (CT) is the interval between successive outputs.
  • Min. number of WS needed = Sum of task times/Cycle time =  t / CT
  • Individual WS efficiency = t / CT
  • Assembly Line Efficiency =  t / (N*CT)

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assembly line balancing2

0.1 min

0.7 min

1.0 min

0.5 min

0.2 min

Assembly-Line Balancing
  • 5 workstations: CT = 1 minute; 1 assembly every 1 minute.
  • 3 workstations: CT = 1 minute; 1 assembly every 1 minute.
  • 1 workstation: CT = 2.5 minutes; 1 assembly every 2.5 minutes.
  • Maximum Allowed Cycle Time:
  • MACT = A / R
  • where A = Available time to produce the output (Hrs/day or Min/day)
  • R = Required output Rate (units/day)
  • (be careful with time units)
  • Example: [8hrs/day] / [160units/day] = 0.05 hrs/unit or 3 minutes

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slide12

Funnel Analogy of Bottlenecks

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slide13

Little’s Law

J.D. Little (1961) developed a simple formula that explains the relationship between flow time (T), throughput (R) and work-in-process (WIP), which is known as Little’s Law.

WORK-IN-PROCESS (WIP) = THROUGHPUT (R) * FLOW TIME (T)

Assume: Throughput = 30 units/hr

Flow time = 20 minutes or 1/3 hr

Therefore WIP= 30 units/hr x 1/3 hr = 10 units

Consider a voting facility that processes an average of 50 people per hour and that on average, it takes 10 minutes for each person to complete the voting process.

WIP = R*T

WIP = 50 voters/hr*(10 minutes/60 minutes per hour)

WIP = 8.33 voters

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slide14

Solved Problem

An accounts receivable manager processes 200 bills per day with an average processing time of 5 working days.

What is the average number of bills in her office?

What if she reduces the time from 5 to 1 day using better technology?

Solution:

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automation
Automation

Automation: Machinery that has sensing and control devices that enables it to operate with minimal input from an operator.

  • Fixed automation
  • Programmable automation
  • Machine technology – NCM for drilling, cutting, etc
  • Automatic identification systems (AIS) – Bar codes, toll pass
  • Process control – Glass temperature – QA charts
  • Vision system - Replacing human inspection: level in medicine bottles
  • Robot – Imitation of human arm for boring and dangerous jobs
  • Automated storage and retrieval systems (ASRS)
  • Automated Guided Vehicles (AGV)
  • Flexible manufacturing systems (FMS) – One computer system controlling several machines and material handling
  • Computer-integrated manufacturing (CIM) – One computer system spanning over engineering, inventory, manufacturing, warehousing and shipping

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facilities 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

  • Process/Functional layout
  • Product layout
  • Combination layout
  • Fixed-Position layout (Projects)

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process functional layout

222

222

222

111

444

Mill

3333

22222

444

Grind

1111

2222

Assembly

333333333

44444

111

333

333333

Drill

111

111

Gear

cutting

111

333

444

Lathes

Heat

treat

Process/Functional Layout

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slide18

Process/Functional Layout

A process/functional layout consists of a functional grouping of equipment or activities that do similar work.

Examples: offices, hospitals.

Advantages of product layouts include a lower investment in general purpose equipment, flexibility, and the diversity of jobs inherent in a process layout can lead to increased worker satisfaction.

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slide19

Product Layout

A product layout is an arrangement based on the sequence of operations that are performed during the manufacturing or service.

Examples: Subway sandwich shops, automobile assembly lines.

Advantages of product layouts include lower work-in-process inventories, shorter processing times, less material handling, requires lower labor skills, and simple planning and control systems.

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process functional layout1

222

222

222

111

444

Mill

3333

22222

444

Grind

1111

2222

Assembly

333333333

44444

111

333

333333

Drill

111

111

Gear

cutting

111

333

444

Lathes

Heat

treat

Process/Functional Layout
  • Cellular Production
  • Group Technology

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cellular manufacturing layout

Gear

cut

Heat

treat

Lathe

Mill

Drill

-1111

-1111

Heat

treat

Mill

Drill

Grind

222222222

- 2222

Assembly

Heat

treat

- 3333

3333333333

Lathe

Mill

Grind

Gear

cut

- 4444

44444444444444

Mill

Drill

Cellular Manufacturing Layout

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forming a cell
Forming a Cell

Drill

Polish

Work Cell

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a u shaped production line

1

2

3

4

In

5

Workers

6

10

Out

9

8

7

A U-Shaped Production Line

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process functional layouts
Process/Functional Layouts

Disadvantages

  • 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

Advantages

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

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product layout
Product Layout
  • Disadvantages
  • Creates dull, repetitive jobs
  • Poorly skilled workers may neglect maintenance and quality
  • Fairly inflexible to changes in volume
  • Highly susceptible to shutdowns
  • Needs preventive maintenance
  • Individual incentive plans are impractical

Advantages

  • High rate of output
  • Low unit cost
  • Labor specialization
  • Low material handling cost
  • High utilization of labor/equipment
  • Established routing and scheduling
  • Easy accounting and purchasing

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service layouts
Service Layouts
  • Warehouse and storage layouts
  • Retail layouts
  • Office layouts
  • Service layouts must be functional and aesthetically pleasing

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