6-1 Process Design and Facility Layout

Chapter 6
Process Design
and
Facility Layout

Operations Management, Seventh Edition, by William J. Stevenson

McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
6-2 Process Design and Facility Layout

Process Selection and System Design

Capacity
planning
Forecasting

Facilities and
Product and Process Equipment
service design selection
Layout
Technological
change
Work
design

Operations Management, Seventh Edition, by William J. Stevenson

McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
6-3 Process Design and Facility Layout

Introduction
• Outsourcing, trend, reasons

• Make or Buy?
– Available capacity
– Expertise
– Quality Consideration
– The nature of demand
– Cost

Operations Management, Seventh Edition, by William J. Stevenson

McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
6-4 Process Design and Facility Layout

Process Selection
• Variety
– How much
• Flexibility
– What degree
• Volume
– Expected output

• The key trade-off

Operations Management, Seventh Edition, by William J. Stevenson

McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
6-5 Process Design and Facility Layout

Process Types

• Projects
• Job Shops
• Batch Processing
• Repetitive/Assembly
• Continuous Processing

Operations Management, Seventh Edition, by William J. Stevenson

McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
 6-6 Process Design and Facility Layout

Product-Process Matrix for Processes

Less Customization and Higher Volume

Product Design
(1) (2) (3) (4) (5)
One of a kind Low volume, Multiple Few major High volume
products, made low products products, high
Process to customer standardization moderate higher standardization,
order volume volume commodity
Characteristics products
Less Complexity, Less Divergence, More Line Flows

(1)
Complex and
highly customized Project
process, unique process
sequence of tasks

(2)
Jumbled flows, Job
complex work with process
many exceptions

(3)
Batch
Disconnected line
flows, moderately process
complex work

(4) Line
Connected line, process
routine work

(5) Continuous
Continuous
flows, highly process
repetitive work

Figure 3.6 Operations Management, Seventh Edition, by William J. Stevenson

McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
6-7 Process Design and Facility Layout

Product-Process Matrix
Few High
Low Multiple Major Volume,
Volume Products, Products, High
One of a Low Higher Standard-
Kind Volume Volume ization
Flexibility-
Job Commercial
Quality
Shop Printer

Batch Heavy
Equipment

Assembly Automobile
Line Assembly

Continuous Sugar
Flow Refinery Dependability
Cost
Flexibility-Quality Dependability-Cost
Operations Management, Seventh Edition, by William J. Stevenson
McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
6-8 Process Design and Facility Layout

Automation

• Automation: Machinery that has

sensing and control devices that
enables it to operate

Operations Management, Seventh Edition, by William J. Stevenson

McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
6-9 Process Design and Facility Layout

Automation

• Numerically controlled (NC) machines

• Robot
• Computer-aided design and
manufacturing systems (CAD/CAM)
• Flexible manufacturing systems
• Computer-integrated manufacturing
(CIM)

Operations Management, Seventh Edition, by William J. Stevenson

McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
6-10 Process Design and Facility Layout

Layout

• Layout: the configuration of

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

Operations Management, Seventh Edition, by William J. Stevenson

McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
6-11 Process Design 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

Operations Management, Seventh Edition, by William J. Stevenson

McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
6-12 Process Design and Facility Layout

Basic Layout Types

• Product Layouts
• Process Layouts
• Fixed-Position
• Combination Layouts

Operations Management, Seventh Edition, by William J. Stevenson

McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
6-13 Process Design and Facility Layout

Basic Layout Types

• Product Layout
– Layout that uses standardized processing
operations to achieve smooth, rapid, high-
volume flow
– Group equipments according to the sequential
steps of operations of a specific product
• Process Layout
– Layout that can handle varied processing
requirements
– Group equipments according to their functions

Operations Management, Seventh Edition, by William J. Stevenson

McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
6-14 Process Design and Facility Layout

A Flow Line for Production or Service

Flow Shop or Assembly Line Work Flow

Raw Statio Station Station Station Finished

materials n 2 3 4 item
or customer 1
Material Material Material Material
and/or and/or and/or and/or
labor labor labor labor

Operations Management, Seventh Edition, by William J. Stevenson

McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
6-15 Process Design and Facility Layout

Process Layout

Milling

Assembly
Grinding
& Test

Drilling Plating
Process Layout - work travels
to dedicated process centers

Operations Management, Seventh Edition, by William J. Stevenson

McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
6-16 Process Design and Facility Layout

Functional Layout

222 222 222

111 Drill Grind
444 Mill 3333
444

1111 2222 Assembly

111 333

111 111
Heat 111 Gear
333 Lathes
treat cutting 444

Operations Management, Seventh Edition, by William J. Stevenson

McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
6-17 Process Design and Facility Layout

Basic Layout Formats

• Group Technology Layout

Part Family W Part Family X

• Cellular Layout

• Fixed Position Layout

Part Family Y Part Family Z

– e.g. Shipbuilding

Operations Management, Seventh Edition, by William J. Stevenson

McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
6-18 Process Design and Facility Layout

Cellular Layouts

• Cellular Manufacturing
– 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

Operations Management, Seventh Edition, by William J. Stevenson

McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
6-19 Process Design and Facility Layout

A U-Shaped Production Line

In 1 2 3 4

Workers

Out 10 9 8 7

Operations Management, Seventh Edition, by William J. Stevenson

McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
6-20 Process Design and Facility Layout

Cellular Manufacturing Layout

Heat Gear
-1111 Lathe Mill Drill -1111
treat cut

Heat

Assembly
222222222 Mill Drill Grind - 2222
treat

Heat
3333333333 Lathe Mill Grind - 3333
treat

44444444444444 Mill Drill Gear - 4444

cut

Operations Management, Seventh Edition, by William J. Stevenson

McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
6-21 Process Design and Facility Layout

Design Product Layouts: Line Balancing

Line Balancing is the process of assigning

tasks to workstations in such a way that
the workstations have approximately
equal time requirements.

Operations Management, Seventh Edition, by William J. Stevenson

McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
6-22 Process Design and Facility Layout

Cycle Time

Cycle time is the maximum time

allowed at each workstation to
complete its set of tasks on a unit.

Operations Management, Seventh Edition, by William J. Stevenson

McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
6-23 Process Design and Facility Layout

Determine Maximum Output

OT
O utput capacity =
CT

OT operating tim e per day

D = Desired output rate

OT
CT = cycle tim e =
D

Operations Management, Seventh Edition, by William J. Stevenson

McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
6-24 Process Design and Facility Layout

Determine the Minimum Number

of Workstations Required: Efficiency

(D)( t)
N =
OT

t = sum of task times

Operations Management, Seventh Edition, by William J. Stevenson

McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
6-25 Process Design and Facility Layout

Precedence Diagram
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.

Operations Management, Seventh Edition, by William J. Stevenson

McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
6-26 Process Design and Facility Layout

Example 1: Assembly Line Balancing

• 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

Operations Management, Seventh Edition, by William J. Stevenson

McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
6-27 Process Design and Facility Layout

Solution to Example 1

Work- Time Assign Station

Station Remaining Eligible Task Idle Time
1 1.0 a a
.9 c c
.2 none - .2
2 1.0 b b
0 none - 0
3 1.0 d d
.5 e e
.3 - - .3
.5

Operations Management, Seventh Edition, by William J. Stevenson

McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
6-28 Process Design and Facility Layout

Calculate Percent Idle Time

Idle time per cycle

Percent idle time =
(N)(CT)

Operations Management, Seventh Edition, by William J. Stevenson

McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
6-29 Process Design and Facility Layout

Line Balancing Rules

Some Heuristic (intuitive) Rules:

• Assign tasks in order of most
following tasks.
• 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.

Operations Management, Seventh Edition, by William J. Stevenson

McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
6-30 Process Design and Facility Layout

Solution to Example 2

Station 1 Station 2 Station 3 Station 4

a b e
f g h
c d

Operations Management, Seventh Edition, by William J. Stevenson

McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
6-31 Process Design and Facility Layout

Parallel Workstations

30/hr. 30/hr. 30/hr. 30/hr.

1 min. 1 min. 2 min. 1 min.

Bottleneck

30/hr. 1 min. 30/hr.

60/hr. 60/hr.
1 min. 1 min. 1 min.
30/hr.
1 min. 30/hr.

Parallel Workstations

Operations Management, Seventh Edition, by William J. Stevenson

McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.