6-1 Process Selection and Facility Layout

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6-2 Process Selection and Facility Layout

 Process Selection
◦ Deciding on the way production
of goods or services will be
organized
 Major implications

◦ Capacity planning
◦ Layout of facilities
◦ Equipment
◦ Design of work systems
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 Process Selection and System
Design
Facilities and
Forecasting Capacity Equipment
Planning

Product and Layout

Service Design

Process
Technological Selection Work
Change Design

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6-4 Process Selection and Facility Layout

• Key aspects of process strategy

 Capital intensive – the mix of
equipment/labor
 Process flexibility- Adjust to changes
– Design

– Volume

– technology
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6-5 Process Selection and Facility Layout

 Technology
◦ The application of scientific discoveries to the development
and improvement of products and services and operations
processes
 Technological Innovation

◦ The discovery and development of new or improved

products, services, or processes for producing or providing
them
 OM is primarily concerned with three kinds of technology all of
which can have a major impact on costs, productivity and
competitiveness
1. Product technology: discovery and development of new
products and services
2. Process technology: methods, procedures, and equipment
used to produce goods and services
3. Information Technology: the science and use of computers and
other electronic equipment to store, process and send
information such as e-commerce.
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6-6 Process Selection and Facility Layout

Technology acquisition decisions must be

weighed carefully
 What are the upside and downsides of the
technology?
 What can and can’t a technology do?
 Economic considerations (initial cost, space,
cash flow, maintenance, consultants)
 Integration considerations(cost, time,
resources)-
 Human considerations (training, safety, job loss)

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6-7 Process Selection and Facility Layout

Process selection is based on five considerations

Type of process; range from intermittent to

continuous
Degree of vertical integration
Flexibility of resources
Mix between capital & human resources
Degree of customer contact

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6-8 Process Selection and Facility Layout

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6-9 Process Selection and Facility Layout

 Variety
◦ How much? Batch
 Flexibility
◦ What degree?
 Volume
◦ Expected output? Job Shop Repetitive/
Assembly

Continuous

project

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6-10 Process Selection and Facility Layout

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6-11 Process Selection and Facility Layout

1) Job shop: Small scale operation; used

when a low volume of customized (high
variety) goods or services is needed
Processing is intermittent: work includes

small jobs, each will somewhat different

processing requirements
High flexibility using general-purpose

equipment and skilled workers are

important characteristics
E.g. a tool and die shop, veterinarian office

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6-12 Process Selection and Facility Layout

2) Batch: used when moderate volume, semi-

standardized/moderate variety of goods or services
is desired
The equipment need not to be as flexible as in job

shop but processing is still intermittent

The skill level of workers need to be as high as in

job shop but there is less variety in the jobs being

processed
E.g. Bakeries, movie theaters, airlines, books,

magazines, beer, soft drink, plays, concerts, TV &

radio programs, music videos….

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6-13 Process Selection and Facility Layout

3) Repetitive/assembly line: used when

higher volumes of more standardized
goods or services are needed
The standardized output means that
only slight flexibility of equipment is
needed
Skill of workers is generally low
E.g. automobiles, television sets,
pencils, computers, automatic carwash,
cafeteria lines, ticket collectors at
sports and concerts
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6-14 Process Selection and Facility Layout

4) Continuous: Used when a very high volumes of

non-discrete, highly standardized goods or
services is desired
These systems have almost no variety in output;
hence no need for equipment flexibility
Workers’ requirement can range from low to high,
depending on the complexity of the system and the
expertise workers need
If equipment is highly specialized, workers skills
can be lower
E.g. Petroleum products, steel, sugar, flour, salt,
air monitoring, supplying electricity to homes and
businesses, internet.

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 6-15 Process Selection and Facility Layout

Dimension Job shop Batch Assembly Continuous

Job variety Very High Moderate Low Very low
Process Very High Moderate Low Very low
flexibility

Unit cost Very High Moderate Low Very low

Volume of Very Low Low High Very High
output

5) Project: a non-repetitive set of activities directed toward a

unique goal within a limited time frame; Equipment flexibility &
worker skills can range from low to high. E.g. building
bridge/dam, publishing books.
 Processes are usually hybrid.
6-16 Process Selection and Facility Layout

 Automation: Machinery that has sensing and control devices that enables it
to operate automatically
◦ Fixed automation-most rigid
◦ Programmable automation
◦ Flexible automation-evolved from programmable
Automation Questions
1. What level of automation is appropriate?
2. How would automation affect system flexibility?
3. How can automation projects be justified?
4. How should changes be managed?
5. What are the risks of automating?
6. What are the likely effects of automating on:
◦ Market share
◦ Costs
◦ Quality
◦ Customer satisfaction
◦ Labor relations
◦ Ongoing operations
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 6-17 Process Selection and Facility Layout

• Computer-aided design and manufacturing systems (CAD/CAM)

• Numerically controlled (NC) machines
• Robot
• Manufacturing cell
• Flexible manufacturing systems(FMS)
• Computer-integrated manufacturing (CIM)
 Computer-Aided Manufacturing (CAM)
 The use of computers in process control, ranging from robots to automated quality
control.
 Numerically Controlled (N/C) Machines
 Machines that perform operations by following mathematical processing instructions.

 Robot
 A machine consisting of a mechanical arm, a power supply, and a controller

• Manufacturing cell -The outlay of a production plant that is designed to promote

quality in production and performance. It is often a U-shaped arrangement of the
various machines involved in manufacturing a product. This layout eliminates the
need to move the item being manufactured from one area or department of the
factory to another. In addition to saving the handling cost, it may save space and
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reduce inventory levels.
6-18 Process Selection and Facility Layout

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