Chapter 6: Learning Objectives
You should be able to:
Explain the strategic importance of process selection
Describe the influence that process selection has on the organization
Compare the basic processing types
Explain the need for management of technology
List some reasons for redesign of layouts
Describe the basic layout types, and the main advantages and disadvantages of each
Solve simple line-balancing problems
Develop simple process layouts
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Process Selection and Facility LayoutMcGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.You should be able to:Explain the strategic importance of process selectionDescribe the influence that process selection has on the organizationCompare the basic processing typesExplain the need for management of technologyList some reasons for redesign of layoutsDescribe the basic layout types, and the main advantages and disadvantages of eachSolve simple line-balancing problemsDevelop simple process layouts6-*Student SlidesProcess selectionRefers to deciding on the way production of goods or services will be organizedIt has major implications forCapacity planningLayout of facilitiesEquipmentDesign of work systems6-*Student SlidesJob ShopBatchRepetitive/AssemblyContinuousDescriptionCustomizedgoods orservicesSemi-standardizedgoods or servicesStandardizedgoods orservicesHighly standardizedGoods or servicesAdvantagesAble to handle a wide variety of workFlexibility; easy to add or change products or servicesLow unit cost, high volume, efficientVery efficient, very high volumeDisadvantagesSlow, high costper unit,complexplanning andschedulingModerate costper unit,moderateschedulingcomplexityLow flexibility,high cost of downtimeVery rigid, lack of variety, costly to change, very high cost of downtimeStudent Slides6-*Technological InnovationThe discovery and development of new or improved products, services, or processes for producing or providing themTechnologyThe application of scientific discoveries to the development and improvement of products and services and/or the processes that produce or provide them6-*Student SlidesAutomationMachinery that has sensing and control devices that enable it to operate automaticallyFixed automationProgrammable automationFlexible automationStudent Slides6-*Layoutthe configuration of departments, work centers, and equipment, with particular emphasis on movement of work (customers or materials) through the systemFacilities layout decisions arise when:Designing new facilitiesRe-designing existing facilitiesStudent Slides6-*Product layout Layout that uses standardized processing operations to achieve smooth, rapid, high-volume flowUsed for Repetitive ProcessingRepetitive or ContinuousRaw materialsor customerFinished itemStation 2 Station 3Station 4 Material and/or laborMaterial and/or laborMaterial and/or laborMaterial and/or laborStation 1 Student Slides6-*Process layoutsLayouts that can handle varied processing requirementsUsed for Intermittent processingJob Shop or BatchDept. ADept. BDept. DDept. CDept. FDept. EStudent Slides6-*Fixed Position layoutLayout in which the product or project remains stationary, and workers, materials, and equipment are moved as neededStudent Slides6-*Some operational environments use a combination of the three basic layout types:HospitalsSupermarketShipyardsSome organizations are moving away from process layouts in an effort to capture the benefits of product layoutsCellular manufacturingFlexible manufacturing systems6-*Student SlidesService layouts can be categorized as: product, process, or fixed positionService layout requirements are somewhat different due to such factors as:Degree of customer contactDegree of customizationCommon service layouts:Warehouse and storage layoutsRetail layoutsOffice layouts6-*Student SlidesLine balancingThe process of assigning tasks to workstations in such a way that the workstations have approximately equal time requirementsGoal:Obtain task grouping that represent approximately equal time requirements since this minimizes idle time along the line and results in a high utilization of equipment and laborWhy is line balancing important?It allows us to use labor and equipment more efficiently.To avoid fairness issues that arise when one workstation must work harder than another.6-*Student SlidesThe main issue in designing process layouts concerns the relative placement of the departmentsMeasuring effectivenessA major objective in designing process layouts is to minimize transportation cost, distance, or timeStudent Slides6-*In designing process layouts, the following information is required:A list of departments to be arranged and their dimensionsA projection of future work flows between the pairs of work centersThe distance between locations and the cost per unit of distance to move loads between themThe amount of money to be invested in the layoutA list of any special considerationsThe location of key utilities, access and exit points, etc.Student Slides6-*