PRODUCTIONOPERATIONS MANAGEMENT

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PRODUCTION/OPERATIONS MANAGEMENT
Process Selection and Facility Layout
Chapter 6
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M06/POM.html
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Process Selection
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Process Selection

• Process selection strategic decision of
  choosing the way to produce the products or
  services. It addresses issues like
• What type of technology to use
• How to arrange the flow of operations
• Process selection arises naturally when a new
  product/service is planned (remember the phases
  of product development?)
• But it also arises for existing products/services
  due to technological advances and changes in
  customer needs

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Process Selection

• Does firm need to produce all the parts of the
  product in-house?
• Very often firms purchase all/some of the parts
  from outside and do assembly only. Some firms
  even purchase (subcontract) the assembly -
  OUTSOURCING
• The decision make or buy depends on
• Availability of equipment, time and capacity
• Quality considerations
• The nature of demand
• Cost considerations

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Process Selection and the Big Picture
Capacity planning
Demand Forecasts
Facilities and Equipment
Product and service design
Process selection
Layout
Technologicalchange
Work design
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Types of Process Strategies

• Process strategies follow a _________
• Within a given facility, ______ strategies my be
  used
• These strategies are often classified as

continuum
several
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Product Focused Sugar Refinery
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Product Focused (Continuous Processing) Paper Mill
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Product-Focused StrategyExamples
Soft drinks (Continuous, then Discrete)
Paper (Continuous)
Mass Flu shots (Discrete)
Light bulbs (Discrete)
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Product-Focused Strategy

• Facilities are organized by _______
• ____ volume, ___ variety products
• Where found
• Discrete ____ manufacturing
• Continuous ________ manufacturing
• Other names
• ________________
• __________________

product
High
low
unit
process
Line flow production
Continuous production
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Product-Focused Strategies Pros Cons

• Advantages
• Lower ______ cost per unit
• Lower but more __________ labor skills
• Easier production _______ and ______
• Higher equipment ________ (70 to 90)
• Disadvantages
• Lower product ________
• More __________ equipment
• Usually higher ________________

variable
specialized
planning
control
utilization
flexibility
specialized
capital investment
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Repetitive Car Assembly
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Repetitive-Focused StrategyExamples
Fast food
Clothes dryer
Truck
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Repetitive-Focused Strategy

• Facilities often organized by _____________
• Characterized by ________
• Parts assemblies made _________
• Modules combined for many _____________
• Other names
• ___________
• ___________

assembly lines
modules
previously
output options
Assembly line
Production line
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Standardization

• Standardization can take advantage of risk
  pooling
• But most importantly, standardization allows for
  long production runs (i.e. High output volume)
  and automation in the processes.

? Closely related to the product life cycle of
the product or service
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Life Cycles of Products or Services
Standardization ? as the product moves into
maturity/saturation phase
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Repetitive-Focused Strategy
Considerations

• More ________ than process-focused, less
• _________ than product-focused
• Enables _________________
• Using modules, it enjoys ________ advantage
• of continuous process, and ______ advantage of
  
• low-volume, high-variety model

structured
structured
quasi-customization
economic
custom
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Process Focused Machines
Machine Center
Grinding machine
Turning Machine
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Emergency Room Layout
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Process-Focused Strategy

• Facilities are organized by _______
• _______ processes are together
• Example All drill presses are together
• ____ volume, _____ variety products
• Jumbled flow
• Other names
• __________ process
• _________

process
Similar
Low
high
Intermittent
Job shop
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Process-Focused StrategyExamples
Bank
Hospital

• Machine
• shop

http//www.midbrook.com/gallery_cyclone_video.htm
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Process-Focused Strategies Pros
Cons

• Advantages
• Greater product ________
• More _______ purpose equipment
• ______ initial capital investment
• Disadvantages
• _____ highly trained personnel
• More _______ production control
• Low equipment _________ (5 to 25)

flexibility
general
Lower
More
difficult
utilization
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Process Selection

• Process selection is closely related to the
  degree of standardization and output volume of
  the product/service.
• Standardization extent to which there is absence
  of variety in the product/service.
• Standardization means that
• There are fewer parts to deal with in inventory
  and manufacturing
• More routine purchasing, materials handling and
  quality control procedures can be used

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Volume and Variety of Products
Job shop
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Batch Processing and Job Shops

• Batch processing
• Moderate volume of similar products
• Higher variety, low volume relative to the
  assembly/repetitive processing
• Ex bakery, food processing
• Job shops
• High variety of products (job requirements vary)
• Production in small runs (i.e., low volume)
• Ex ship manufacturing, machine tool shops, print
  shops

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Guidelines For Process Selection

• Match product requirement with the process
  capabilities- position diagonally
• Positioning off the diagonal is it always a bad
  process choice?
• Ex Motorola mass-produce custom pagers.
  Where would you place this on the matrix?
• MASS CUSTOMISATION
• As product goes thorough its life-cycle,
  processes need to be changed as well.

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Process Reengineering
rethinking

• The fundamental _________ and radical _______
  of business processes to bring about dramatic
  improvements in ____________
• Relies on reevaluating the ________ of the
  process and questioning both the ________ and the
  underlying __________
• Requires ___________ of the basic process and
  its objectives
• Focuses on activities that ______________

redesign
performance
purpose
purpose
assumptions
reexamination
cross boundaries
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Factors Affecting ProcessAlternatives

• Production flexibility
• Product ______
• Product ______
• _________
• _____
• Human resources
• ______
• _______

These factors reduce the number of alternatives!
volume
variety
Technology
Cost
Quality
Reliability
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Layout
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Layout

• The ___________ of departments, work centers, and
  equipment, with particular emphasis on __________
  of work (customers or materials) through the
  system
• Objectives meet the requirements of
• Product design and volume (______ strategy)
• Process equipment and capacity (______ strategy)
• Quality of work life (_____________ strategy)
• Building and site constraints (_______ strategy)

configuration
movement
product
process
human resource
location
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Basic Layout Types

• Product layouts
• Process layouts
• Fixed-position
• Combination layouts

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Product Layout

• Layout that uses __________ processing operations
  to achieve smooth, rapid, __________ flow
• Design minimizes _____________
• Types Production line, assembly line

standardized
high-volume
line imbalance
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A U-Shaped Production Line
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Process Layout

• Layout that can handle _____ processing
  requirements
• Design places departments with large flows of
  material or people together
• Department areas having _____ processes located
  in close proximity
• E.g., All x-ray machines in same area
• Used with _____________ processes

varied
similar
process-focused
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Example-Process Layout
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Cellular Manufacturing Layout
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Fixed Position Layout

• Layout in which the ______ or ______ remains
  stationary, and workers, materials, and equipment
  are moved as needed (e.g., shipbuilding)
• Complicating factors
• Limited ______ at site
• Changing ________ needs

product
project
space
material
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Design Product Layouts Line Balancing
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Line Balancing
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Design Product Layouts Line Balancing

• ________ of production line
• Nearly _______ divides work between workstations
  while meeting required output
• Objectives
• Maximize _______
• Minimize number of ___________

Analysis
equally
efficiency
work stations
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Line Balancing Steps

• Determine tasks (operations)
• Determine sequence
• Draw precedence diagram
• Estimate task times
• Calculate cycle time
• Calculate number of work stations
• Assign tasks
• Calculate efficiency

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Line Balancing Equations
_______________________
Production time available

• Cycle time
• Minimum
• number of
• work stations
• Efficiency

Demand per day
? Task times
____________

Cycle time
? Task times
________________________
(Actual number of work stations)
(Cycle time)
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Precedence Diagram

• Tool used in line balancing to display elemental
  tasks and _________ requirements

sequence
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Example

• Arrange tasks shown in the previous slide into
  workstations
• Use a cycle time of 1.0 minute
• Assign tasks in order of the most number of
  followers

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Solution to Example
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Calculate Percent Idle Time Efficiency
Idle time per cycle
_______________________

• Percent idle time
• 16.7
• Efficiency
• 83.3

(Actual number of work stations)
(Cycle time)
_____
0.5
31.0
____
2.5
31.0
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Line Balancing Rules

• Some heuristic (intuitive) rules
• Assign tasks in order of ____ following tasks
• Assign tasks in order of greatest _____________
  (the sum of each tasks time and the times of all
  following tasks)

most
positional weight
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Take Away

• Define
• Process focus
• Repetitive focus
• Product focus
• Process reengineering
• Basic layout types
• Know
• How to balance an assembly line