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MANAGEMENT
PROCESS SELECTION AND FACILITY LAYOUT
LEARNING OBJECTIVES
AFT ER COMPL E TI N G TH I S CHA P TER, Y O U S HO U L D BE
ABL E T O:
1. EXPLAI N THE S TRATE G I C I M P O
RTA NCE O F P ROCESS SEL ECTI O N
2. DES CRI BE TH E I N FL UE NCE THA T P RO CES S S EL ECTI O N H AS O N
OR GANI ZAT I ON
3. COMPARE TH E BAS I C P RO CES S I NG TY P ES
4. EXPLAI N THE N E E D FOR M A NA GEM ENT O F TECH N O L O GY
5. LI S T S OME RE AS ON S FOR REDES I GN O F LA Y O U TS
6. DES CRI BE TH E BAS I C L AY O UT TY P ES , A ND THE M AI N AD VAN TAGES
AND DI SADV AN TAG E S OF EA CH
7. S OL VE SI MPL E L I N E - BA LA NCI NG P RO BLEM S
8. DEVELOP SI MPL E PROCES S LA Y O UTS
PROCESS SELECTION
refers to deciding on the way
production of goods or services will be
organized.
has major implications for capacity
planning, layout of facilities,
equipment, and design of work
systems.
occurs as a matter of course when new
products or services are being
planned.
occurs periodically due to
technological changes in products or
equipment, as well as competitive
pressures.
How an organization approaches process
selection is determined by the
organization's process strategy.
Key aspects include:
Cap i t al i nt e ns i t y- the mi x of equi p men t a n d l a b or t h a t
wi l l b e used by th e org a n i z a t i on .
Pr oc e ss fl e x i bi l i t y- the d eg ree to wh i c h th e s ys t em
can b e adj us ted to c h a n ges i n proces s i n g req ui rem ents
due t o such f a c tors a s c ha n ges i n prod uct or s er v ice
des i g n, chan g es i n v ol ume proces s ed , a n d ch a n g es in
technol og y.
Process choice is demand driven.
Three primary questions bear on
process selection:
1. How much variety in products or services will the system need to handle?
2. What degree of equipment flexibility will be needed?
TO MAI NTA I N TO EXCEED TH E
3. What is the expected volume of output?
THE H I GHEST EXPECTATI ON S OF
LEVELS OF THE CUSTO ME RS
QUALI TY AND PROVI DE
S ER VI CES SO THEM WI TH TH E
THAT WE CAN Answers to these questions will serve BES
as aTguide
I NTER
toNselecting
ET an
PR OVI DE THE appropriate process. S ER VI CES A N D
BES T I NTER N E T THE MOST
S ER VI CES I N R EL I ABLE
THE COUNT RY. S UPPORT SYS TE M.
PROCESS TYPES
1 J OB S HOP
A j ob s hop us ua l l y o p e r a te s o n a re l a ti v e ly
s ma l l s ca l e. I t i s us e d when a lo w v o lume o f
hi g h- v a r i et y g o o d s o r se r v i ce s wi ll b e n e e de d.
2 BATCH
Ba t ch pr oces s i n g i s use d whe n a mo de ra te
v ol ume of g oo d s o r s e r v i c e s i s de si re d, a n d i t
ca n h a ndle a mo d e r a t e v a ri e ty i n p ro ducts o r
s e r v i ces .
3 REPETI TI VE
Re p et i t i v e pr o ce ss i n g i s u se d whe n hi ghe r
v ol umes of mo r e s t a n d a r di z e d go o ds o r
s e r v i ces a r e ne e d e d .
PROCESS TYPES
4 CONTI NUOU S
A c ont i nuous s ys t e m i s use d whe n a v e ry hi gh
v ol ume of non d i s cr e t e , hi ghly sta n da rdi z e d
out put i s des i r e d .
5 PR OJECT
A p r oj e ct i s us e d f o r wo r k tha t i s n o n ro uti n e ,
wi t h a uni que s e t o f o b j e cti v e s to b e
a cc ompli s hed i n a li mi t e d ti me f ra me .
PRODUCT OR SERVICE
PROFILING
Product or service profiling can be used to avoid
any inconsistencies by identifying key product or
service dimensions and then selecting appropriate
processes. Key dimensions often relate to the
range of products or services that will be
processed, expected order sizes, pricing strategies,
expected frequency of schedule changes, and
order-winning requirements.
SUSTAINABLE
PRODUCTION
I T I S T HE CR EATI O N O F GO O DS AN D
SER VI C ES US I NG P RO C ES S E S AN D S Y S T E M S
THAT ARE: NO N- P O L L UT I N G; CO N S E R VI N G
OF ENERGY AND NATURAL R E S O U R CE S ;
EC ONOMI CAL L Y EF F I C I EN T ; S AF E AN D
HEAL THFUL F O R WO RK E R S , CO MM U N I T I E S ,
AND C ONSUM ERS ; AND SO CI AL L Y AN D
C REATI VEL Y REWARDI NG F O R AL L W O R KI N G
P EOPL E.
How To Achieve Sustainable
Production
1 " wastes and ec ol og i c a l l y i n compa t i b l e b yprod uct s a r e
r ed uced, el i mi n a ted or recycl ed on -s i t e;
PROCESS INFORMATION
TECHNOLOGY TECHNOLOGY
I NCLUDES ME TH ODS , I S THE SCI E N C E AN D US E O F
PR OCEDURES , AN D COMPUTERS AN D OTH ER
EQUI PMENT US E D TO ELECTRONI C E QUI PME N T TO
PR ODUCE G OODS AN D S TORE, PRO C E S S , AN D S END
PR OVI DE SE RVI C E S . I NF ORMATI ON .
TECHNOLOGICAL
INNOVATION
2 to use worke rs a n d s p a ce ef f i ci en t l y
3 to avoi d bot tl en ec k s
4 to mi n i mi z e ma teri a l h a n d l i n g cos t s
Single-minute Right-sized
exchange of die equipment
ENABLES AN ORGANIZATION TO IS OFTEN SMALLER THAN EQUIPMENT
QUICKLY CONVERT A MACHINE USED IN TRADITIONAL PROCESS LAY-
OR PROCESS TO PRODUCE A OUTS, AND MOBILE, SO THAT IT CAN
DIFFERENT (BUT SIMILAR) QUICKLY BE RECONFIGURED INTO A
PRODUCT TYPE. DIFFERENT CELLULAR LAYOUT IN
DIFFERENT LOCATION.
GROUP TECHNOLOGY
THE GROUPI N G I N TO PA RT FA M I LI ES O F I TEMS
WI T H SI MI L AR DE S I G N O R M A NUFA CTURI NG
CHARACTER I S TI C S .
Design Manufacturing
Characteristics Characteristics
INCLUDE SIZE, SHAPE, AND INVOLVE THE TYPE AND SEQUENCE OF
FUNCTION OPERATIONS REQUIRED
SERVICE LAYOUTS
CAN OFTEN BE C ATE G ORI Z ED A S
PR ODUCT, PROC E S S , O R FI X ED-P O S I TI O N
LAYOUTS. TH E DE G RE E O F CUS TO M ER
CON TACT A N D TH E DE GREE O F
CUS TOMI ZA TI ON ARE T WO KEY FA CTO RS
I N S ERVI CE L AYOUT DE S I GN.
WAREHOUSE AND STORAGE
LAYOUTS
THE DESI GN OF S TORA GE FA CI LI TI ES
PR ESENTS A DI FFE RE N T S ET O F FA CTO RS
THAN THE DE S I G N OF F A CTO RY LA Y O UTS .
FR EQUENCY OF ORDE R A ND A NY
COR RELATI ON S BE TWEEN I TEM S A RE
I MPORTANT C ON S I DE RA TI O NS .
RETAIL LAYOUTS
AR E UNDERG OI N G TRANS FO RM A TI O NS A S
THE F LOW O F PAPE RW O RK I S REP LA CED
WI T H THE I N C RE AS I N G US E O F
ELECTRONI C C OMMUNI CA TI O NS . THI S
LES SENS THE N E E D TO P LA CE O FFI CE
WOR KERS I N A L AYOUT TH AT OPTI MI Z ES
THE PHYSI CAL TRAN S FER O F
I NF ORMATI ON OR PAPERWO RK .
AUTOMATION IN SERVICE
THE PROCESS OF AS S I G NI NG TA S KS TO
WOR KSTATI ON S I N S UC H A WA Y THA T
THE WORKS TATI ON S H A V E
APPROXI MA TE L Y E QUA L TI M E
R EQUI REMEN TS .
CYCLE TIME
THE MAXI MUM TI ME AL LO WED A T EA CH
WOR KSTATI ON TO C OMP LETE I TS S ET O F
TAS KS ON A UN I T
THE MINIMUM AND MAXIMUM CYCLE
TIMES ARE IMPORTANT BECAUSE
THEY ESTABLISH THE POTENTIAL
RANGE OF OUTPUT FOR THE LINE,
WHICH WE CAN COMPUTE USING THE
FOLLOWING FORMULA:
0,1 MIN, 0,7 MIN, 1.0 MIN, 0,5 MIN, 0,2 MIN,
Assume that the line will operate for eight hours per day (480 minutes). With a cycle time of 1.0 minute,
output would be:
480 minutes per day= 480 units per day
1.0 minute per unit
With a cycle time of 2.5 minutes, the output would be
480 minutes per day= 480 units per day
2.5 minutes per unit
The number of workstations that will be needed is a function of both
the desired output rate and our ability to combine elemental tasks
into workstations. We can determine the theoretical minimum
number of stations necessary to provide a specified rate of output
as follows:
t
Nmin =
Cycle time
where
N min = theoretical minimum number of stations
t = sum of task times
Suppose the desired rate of output is the maximum of 480 units per day. This will require a cycle time
of 1.0 minute. The minimum number of stations required to achieve this goal is
t
Nmin =
Cycle time
where
N min = theoretical minimum number of stations
t = sum of task times
Suppose the desired rate of output is the maximum of 480 units per day. This will require a cycle time
of 1.0 minute. The minimum number of stations required to achieve this goal is
3 MI XED MODE L L I N E
An o t her a ppr o a ch i s t o d esi gn a l i n e to
ha n dl e mor e t ha n o n e p r oduct o n the sa me
t i me.
DESIGNING PROCESS
LAYOUTS
THE MAI N I SS UE I N DE S I GNI NG P RO CES S
LAYOUTS CO N C E RN S TH E RELA TI V E
POS I T I ONI N G OF TH E DEP A RTM ENTS I NV O LV E D .
LAYOUTS CA N AL S O BE I NFLUENCED BY
EXT ERNAL FAC TORS S U CH A S THE LO CA TI O N O F
ENT RANCES , L OADI N G DO CK S , ELEV A TO RS ,
WI N DOWS, AN D ARE AS O F REI NFO RCED
FLOORI NG. AL S O I MPORTA NT A RE NO I S E
LEVELS, SAF E TY, AN D THE S I Z E A ND LO CA TI ON S
OF RESTROOMS .
MEASURES OF
EFFECTIVENESS
ONE OF THE MAJOR OB J ECTI V ES I N P RO CES S
LAYOUT I S T O MI N I MI Z E TRA NS P O RTA TI O N
COS T, DI STAN C E , OR TI M E. THI S I S US UA LLY
ACCOMPLI S H E D BY L OC A TI NG DEP A RTM ENTS
WI T H RELAT I VE L Y H I G H I NTERDEP A RTM ENTA L
WOR K FLOW AS C L OS E TO GETHER A S P O S S I BL E.
THE DESIGN OF PROCESS LAYOUTS
REQUIRES THE FOLLOWING
INFORMATION:
1. A l i st of depa rtmen ts or work cen t ers t o b e a rra ng ed , their
ap p roxi mate di men s i on s, a n d t h e d i men s i on s of the b u il d ing o r
bui l d i ng s tha t wi l l h ous e t h e d epa rt men t s .
2. A p roj ecti on of f uture work f l ows b et ween t h e va r io u s w o r k
cen ters.
3. The d i stance between l o ca t i on s a n d t h e cos t per u nit o f
di stance to mov e l oa ds b et ween l oca t i on s .
4. The amount of mon ey to b e i n v es t ed i n t h e l a yo u t.
5. A l i st of any s p ec i a l c on s i d era t i on s (e. g. , opera t i o ns tha t m u st
be cl o se to e a c h oth er o r opera t i on s t h a t mus t be sep a r a ted ) .
6. The l ocati on of k ey uti l i t i es , a cces s a n d exi t poi n ts, l o a d ing
docks, and so on , i n ex i st i n g b ui l d i n gs .
MINIMIZING
TRANSPORTATION COSTS
OR DISTANCES
THE MOST COMMON G O A LS I N DES I GNI NG
PR OCESS LA YOUTS ARE M I NI M I Z A TI O N O F
TR ANSPORT ATI ON C OS TS O R DI S TA NCES
TR AVELED. I N S UC H C AS ES , I T CA N BE V ERY
HEL PFUL TO S UMMARI ZE THE NECES S A RY DA TA
I N FROM- TO C H ARTS .
CLOSENESS RATINGS