Lecture 10

Operations Management
Dr. D Jinil Persis
Assistant Professor, IIM Kozhikode
Process (Functional)
Layout

• Discontinuous workflow for every job order as per processing requirement

(Intermittent/nonrepetitive processing)
• The layout has functional grouping/workcenters/department where similar
kind of activities is performed
• Lots/batches move from one workcenter to another depending on the job
orders
• Workcenters have to switch from one job order to another (Set
up/changeover)
• Workcenters have general purpose machines with high flexibility
• Less interdependencies between successive tasks compared to product
layout
• Scheduling is dynamic and material handling is difficult
• Varied demand, Work in process inventory
 Designing process layouts
• Assign department/workcenters to locations to minimize transportation
cost, time, distance
• Say there are 3 locations (A,B,C)
− 20 40
• Distance matrix (meters)= − 30
−
• 3 departments (1,2,3) and
− 30 170
• Load/day matrix= − 100
−
Heuristic Rule
• Choose the minimum distant locations and assign the departments having
maximum load

1 3 ?

A B C
• A and B have the shortest distance between them (20 m) and departments 1 and 3
have highest load (170). Hence, allot 1 and 3 to A and B respectively
• Choose the second minimum distant locations and assign the departments
having maximum load
• B and C have the second shortest distance between them (30 m) and departments 2
and 3 have second highest load (100). Hence keep 2 and 3 adjacent.
1 3 2
A B C
 Exhaustive search method
Total Cost Distance A B C Load 1 2 3
Possible movement from one location to another AB AC BC A 0 20 40 1 0 30 170
20 40 30 B 20 0 30 2 30 0 100
30 170 100 10400 C 40 30 0 3 170 100 0
30 100 170 9700 AB AC BC
170 30 100 7600 Optimal solution 1-3 1-2 3-2
170 100 30 8300
100 30 170 8300 Allotment A-1 B-3 C-2
Possible solutions (with load) 100 170 30 9700

1. List the possible pairs of locations (Here, AB, AC, BC)

2. List the feasible allocations and for each feasible allocation, find the total cost
3. Choose the allocation with minimum cost

1 3 2
A B C
Refer Solved Exercise section in Moodle for excel solution
Group layout / Cellular layout
• Production flow analysis (PFA) is a technique that examines product
requirements and process grouping simultaneously to allocate tasks
and machines to cells in CELL LAYOUT.
• It is an approach that examines both product requirements and
process grouping simultaneously
Lean approach through cellular manufacturing
systems
• Group Technology or GT is a manufacturing technique in which the parts having similarities in Geometry,
manufacturing process and/or functions are assembled together.
• The group of similar parts is known as part family and the group of machineries used to process an individual
part family is known as machine cell.
• Manufacturing a part family by a machine cell is known as cellular manufacturing.
• Equipment utilization (high)
• Work-in-process inventory (low)
• Queue lengths at each workstation (short)
• Job throughput time (short)
• Job lateness (low)

Checking parts list and Machine-component group

Machine classification Factory flow analysis
production route information analysis
Process Layout
P1 P2 P3 P4 P5
P1
M1 M4 M1 1 0 0 1 0

P2 M2 1 1 0 0 0
M2 M5
M3 0 0 1 0 1
P3
M4 0 0 1 1 0
M3 M6
M5 0 0 0 1 0
P4
M6 0 1 0 0 0

P5
Machine-part incidence matrix
 After applying Rank Order Clustering algorithm
(ROC)
P1 P2 P4 P3 P5
Part family 1: 1, 2
M2 1 1 0 0 0 Machine cell 1: 1,2,6

M1 1 0 1 0 0
Part family 2: 3, 4, 5
M6 0 1 0 0 0 Machine cell 2: 3,4,5

M4 0 0 1 1 0

M5 0 0 1 0 0
Bottle neck Machine:
M3 0 0 0 1 1 M1 is required by both part families.
•Duplicate M1
•Move P4 to machine cell 2 for operation
Refer Solved Exercise section in Moodle for excel solution
Group layout made for the example instance
P1
M1 M2 M1 M3
P5

M6
M4 M5
P2 P3 P4

Machine cell 1 Machine cell 2