UNIT - IV

Design of Operational
Systems (7 Hours)
 CONTENTS

• Product/process design and technological

choice, capacity planning, plant location,
facilities layout, assembly line balancing, and
perspectives on operations systems of the
future.
 Unit Outcomes

At the end of this unit, Students will be able to,

• Differentiate and select product design or process design

depending upon various factors..
• Capacity planning, its introduction details, advantages.
• Proper selection of layout and location and its relative
advantages/limitations
• Understand the concept of assembly line balancing in
detail.
 Product Design
Introduction:
• It can be defined as the idea generation, concept development,
testing and manufacturing or implementation of a physical
object or service. It covers more than a discipline named
INDUSTRIAL DESIGN..
• Product designers conceptualize and evaluate ideas making
them tangible through products in a more systematic approach.
• The role of design engineer encompasses many characteristics
of the marketing manager, Product management, Industrial
designer and design engineer.
• The title name of Product designer has in many cases fallen in
to the category of an Art.
 Product Design
Introduction:
• It can be defined as the idea generation, concept development,
testing and manufacturing or implementation of a physical
object or service. It covers more than a discipline named
INDUSTRIAL DESIGN..
• Product designers conceptualize and evaluate ideas making
them tangible through products in a more systematic approach.
• The role of design engineer encompasses many characteristics
of the marketing manager, Product management, Industrial
designer and design engineer.
• The title name of Product designer has in many cases fallen in
to the category of an Art.
 Product Design
Introduction:
• Role of product designer combines arts, science and commerce
for tangible non perishable items. This evolving role has been
facilitated by digital tools that designers to communicate,
visualize, and analyze ideas in a way that would have taken
greater manpower in the past.
• As with most of the design fields the idea for the design of a
product arises from a need and has a use. It follows certain
method and can sometimes be attributed to more complex
factors.
• Aesthetics is very important in product design but designer also
deals with other factors such as technology, usability,
ergonomics, human factors and material technology.
 Product Design
Introduction:
• The values and accompanying aspects which product design is
based on vary, both between schools of thoughts and among
practicing designers.
• Product designers are equipped with the skills needed to bring
products from conceptions to market. They should also have the
ability to manage design projects and subcontract areas to other
sectors of design industry.
• Also used to describe a technically competent product designer or
industrial designer is the term Industrial Design Engineer.
 Product Design
Details:
• A Product is anything that is capable of satisfying a felt need.
• A New Product is the one which is truly innovative and is
significantly different from the other existing products.
• The stages through which new product passes through are:
A. Need identification
B. Advance product planning
C. Advance design, detailed engineering
D. Production process design and development
E. Product evaluation
F. Product use and support
 Product Design
Details:
• The condition product sold under will change over a time. The
product life cycle refers to the succession of stages a product
goes through.
• Product life cycle management is the succession of strategies
used by management as a product goes through its life cycle.
• The product life cycle goes through many phases and involves
many professional disciples and requires many skills, tools and
processes.
• PLC is to do with the life of a product in the market with respect
to business commercial cost and sales measure whereas PLCM is
more to do with managing descriptions.
 Product Design
Product Life Cycle

 Every product firstly has to go through new product

development stage.
• It is very expensive
• No sales revenue
• Losses

After this stage, there are four stages of life cycle of every
product-
 Product Design
Product Life Cycle
 Introduction stage:
Cost of product is higher
Sales volume is low
No/little competition: manufacturers look for acceptance/segmet
Losses
Demand has to be created
Customers have to be promoted to try the product.
 Product Design
Product Life Cycle
 Growth stage:
• Cost reduce due to economies of scale
• Sales volume increases significantly
• Profitability
• Public awareness
• Competition begins to increase with the few new players in
establishing the market
• Prices to maximize the market share
 Product Design
Product Life Cycle
 Maturity stage:
• Costs are very low as you are well established in the market and
no need to do publicity.
• Sales volume peaks
• Increase in competitive offerings
• Prices tend to drop due to the proliferation of competing
products.
• Brand differentiation, feature diversification as each player seeks
to differentiate from competition with “how much product” is
offered.
• Very profitable stage
 Product Design
Product Life Cycle
 Decline stage or Stability stage:
• Costs become optimal
• Sales volume decline or stabilize
• Prices, profitability diminish
Product Design
 Process Design
Process Design
• New products are not realities until those are manufactured.
• Process design is very important to manufacture any product.
• Process design means the complete delineation and description
of specific steps in the production process and linkage among
the steps that will enable the production system to produce the
products of desired quality and in desired quantity.
 Process Design
Process Design
• New products are not realities until those are manufactured.
• Process design is very important to manufacture any
product.
• Process design means the complete delineation and
description of specific steps in the production process and
linkage among the steps that will enable the production
system to produce the products of desired quality and in
desired quantity.
• Product planning is intense for new products but replanting
can also occur as capacity needs change.
 Interrelation between Product
design and Process design
Product idea
Product idea

Feasibility study

Product Design Process Design

Organizing process
Product Planning flows
Advance Design Evaluating process
Product Evaluation design
 Process Design
Key decisions in Process Design
• Key decisions in process design is related to organizing. The
process flows necessary to manufacture a new product
• Organizing process flow:
Various types of process flows are identified as
1. Project type
2. Job shop type
3. Batch type
4. Assembly line type
5. Continuous type
 Process Design
Relations of process design to types of process flow
• There is a definite relation between production process and
process flow. For continuous manufacturing, the methods and
processes are defined before the line set up.
• The process design is built into the line
• Changes usually require that the line be shut down with
consequent loss of production.
• For intermittent process, no lines are set up. Process engineer
usually adopt the method according to the types of equipments
available.
• Changes in methods can easily be affected without affecting
the overall production capacity of the plant.
 Process Design
Evaluation of process design
• The major objective behind building the process flow is to
ensure that the goods and services are produced at minimum
cost.
• Process design is a powerful activity.
• A process engineer should be alert to changes to which of the
below mentioned factors
1. Volume
2. Product quality
3. Equipments
• Careful planning ensures a complete coverage of operations
in manufacturing a product and the cost involved.
 Capacity Planning
Definition of Capacity Planning

• capacity planning is the process of determining the production

capacity needed by an organisation to meet changing demands
for its products.

• Capacity planning concerned with defining the long-term and

short-term capacity need of a firm and determining how these
needs will be met.
 Capacity Planning
What is the need of Capacity Planning

• Organization decides to increase production

• Organization decides to introduce new products
 Capacity Planning
Decision of Capacity Planning

• Assessing existing capacity

• Forecasting future capacity needs
• Identifying alternative ways to modify Capacity
• Evaluate financial, economical and technological capacity
alternatives
• Selecting a capacity alternative most suited to achieve the
strategic mission of the firm.
 Capacity Planning
Decision of Capacity Planning

Market Resources
Consideration available

Capacity
Decisions
 Capacity Planning
Classification of Capacity Planning

1. Based on time horizon;

-Long term capacity planning
-short term capacity planning

2. Based on amount of resources employed;

-Finite capacity planning
-Infinite capacity planning
 Capacity Planning
Long term capacity planning

• long term or long range capacity planning is concerned

with accommodating major changes that affect the overall
level of output in the longer run. major changes are;
-Decision to develop new product line
-Expand existing facilities
-Construct production plants
 Capacity Planning
Finite and Infinite capacity planning;

• In operations planning, two constraints are time and

capacity.
• If the processing time is not a constraint in case
where products are produced to stock and sell, It is
Finite capacity planning.
• Time is the primary constraint and plan backwards to
accommodate these times. It is called infinite capacity
planning.
 Capacity Planning
Factors affecting capacity planning;
1. Controllable factors;
-Amount of labour employed
-Facilities installed
-Shift work per day
-Over time work
-Sub contracting
-shift worked per week
-Preventive maintenance
-Number of production set-ups
 Capacity Planning
Factors affecting capacity planning;
2. Less controllable factors;
-Absenteeism
-Labour performance
-Machine break-down
-Material shortages
-Scrap and rework
-Unexpected problems (strike, fire accidents)
 Plant Location

• Plant location refers to the choice of region and the

selection of a particular site for setting up a business
or factory.
• An ideal location is one where the cost of the product
is kept to minimum, with a large market share, the
least risk and the maximum social gain. It is the place
of maximum net advantage or which gives lowest
unit cost of production and distribution.
 Plant Location

Plant location studies are conducted in three phases:

• Regional factors,
• Community factors, and
• Site factors
 Plant Location
Factors Affecting the Plant Location
• The location of an industry is determined by taking
into consideration the following factors:
• Primary Factors:
– Supply of raw materials
– Nearness to the market
– Transport Facilities
– Supply of Labour
– Availability of power
– Supply of Capital
 Plant Location
Factors Affecting the Plant Location
• Secondary Factors:
-Natural Factors:
- Government Subsidies and Facilities
-Personal Factors
• Miscellaneous Factors:
-Suitability of the land
-Disposal of waters
-Availability of Water and Fire-fighting Facilities
-Community attitudes
 Plant Location
Selection of Site

• Urban or City area.

• Rural area.
• Suburban area.
 Plant Location
Advantages of Urban area
• Good transport facilities are available for the movement of raw-
materials and finished products by rail and road and at times, by
water and air.
• Good and prompt postal and communication services are
available.
• Banking and credit facilities available.
• Services of insurance companies are available in city areas.
• Sufficient storing facilities including cold-storage , are available.
• Ample availability of skilled and unskilled workers.
• Advantages of vicinity of the market for the product. Due to large
population,
 Plant Location
Advantages of Urban area
• The local demand for the product is fairly high.
• Facility of the ancillary and services units, which develop around
the industrial strip of the city area.
• Sufficient passenger transport facilities by road and railways are
available to employees.
• Development of the training institutes for workers and management
institutes for executives put the city area units into privileged
position.
• Educational, medical and recreational institutes increase the
amenities of lives in the city area .
• Certain specific municipal services facilities are available only in the
city areas, like water supply, drainage, fire fighting facilities,
sufficient police protection etc.
 Plant Location
Disadvantages of Urban or City Area
• The trade union movement is very strong in city area. Militant
trade unionists disturb the amicable industrial relations, which
gives rise to strikes and lockouts
• Various types of taxes is levied in city areas. The rates of taxes
are relative high. Eg. Octroi is a typical tax of the city area which
is not levied in rural areas.
• Certain municipal restrictions put constraints and involve extra
cost due to height of the building, disposal of waters, treatment of
affluent water, elimination of air pollution caused by smoke etc.
• The industrialization in the city areas gives birth to slums and
dirty residence which creates the typical problems of sanitation
and health.
 Plant Location
Disadvantages of Urban or City Area
• The cost of land is very high as compared to rural areas
• Even at high cost, sufficient land is not available, which puts
constraints on the arrangement of plants and machines.
Sometimes multi-story buildings are used which are not
suitable for the installation of heavy plant and machines
• Due to high standard of living in city area, the cost of labour is
relatively high.
• Due to possibilities of changing jobs from one unit to another,
and tendency of competitors to snatch away the good
employees, the rate of labour turnover is very high in city area
 Plant Location
Advantages of Rural area
• As compared to the city area, the land is available at cheaper
rates.
• Large plots of the land area available which can be developed
for a factory sites, office buildings and residential quarters.
Horizontal arrangement of plant machines in the vast areas of
land is possible.
• Due to lower standard of living, the rates of labour are
relatively lower.
• As compared to the city area, the labour force is more or less
stable which reduces the rate of labour turnover.
 Plant Location
Advantages of Rural area
• The industrial relations between labour and management are
relatively amicable.
• The local taxes which are found in the city areas are
practically nonexistent in rural areas.
• The municipal restrictions which are found in city areas do not
exist in rural areas. e.g. height of buildings.
• Slumps and dirty residence are not found in rural areas. The
rural areas is conducive to good health of workers.
• Due to lack of congestion, there is danger of fire caused by
surrounding units.
 Plant Location
Disadvantages of Rural Area
• Transportation facilities are not available in good condition and
sufficient quantities.
• Banking and credit facilities are also not available. The
indigenous money-lenders are charging exorbitantly for these
services.
• Absence of insurance facilities.
• Storing and warehouse facilities are not available in rural areas.
• Passenger transport facilities are not available, as are available in
city area.
• Like in city areas, the advantage of ancillary and service units is
not available.
 Plant Location
Disadvantages of Rural Area
• Such units are very far from the market place and this
increases the cost of distribution of finished goods.
• Sometimes the means of transport are not available.
• It is not possible to tap the advantage of industrial training
institutes or management development programmes which is
possible in city areas.
• It is generally not easy to get skilled workers in rural areas.
• Municipal facilities like water supply, drainage, fire-fighting
etc. are not available in rural areas.
• There is absence of recreation facilities, good educational
institutes, good and sufficient medical facilities.
 Plant Location
Advantages of Suburban Area
• Land is available at a cheaper rate as compared to urban areas.
• Adequate land is available for future expansion unit. The
machines can be installed horizontally and still the provision
for future expansion can be made.
• Infrastructure facilities like road, water supply, drainage,
banking, warehousing, insurance etc. are developed
Government, municipal authorities or industrial associations.
• As city area is nearest, the skilled and unskilled, both type of
labour are available.
 Plant Location
Advantages of Suburban Area
• It is possible to tap the advantage of industrial training
institutes, management development programmes, research
institutes etc. which are available in nearby city area.
• The nearby city area provides a substantial market for the
products of the unit. This reduces the cost of marketing the
finished products and other ancillary advantages of marketing
are available.
• Educational institutes, medical facilities and other recreational
facilities are available in the suburban area itself as well as in
the nearby city area.
 Facility Layout
Introduction
• The layout facility is the physical location of the various
departments/units of the facility within the premises of the
facility.

• The departments may be located based on the considerations

such as:
Less walking distance
Logical sequence of the processing requirements of the product
Emergency services, etc
 Facility Layout
Factors affecting Layout
• MATERIALS (Type of raw materials and availability)
• PRODUCT (Type of product and its position)
• WORKER (Type , position and requirements)
• MACHINERY(Product, volume and process)
• INDUSTRY (Type of industry: Synthetic, Analytical,
Conditioning and Extractive)
• LOCATION (Factor of production)
• MANAGERIAL POLICIES (volume, provision for expansion,
automation, making or buying decisions, desire for rapid
delivery, purchasing policy and personnel policies)
 Facility Layout
Scope of facility Layout
• Related to material
 Less material handling and minimum transportation cost
 Less waiting time for in-process inventory .
• Related to work place
 Safe working conditions from the point of ventilation, lighting,
etc.
 Minimum movement of workers
 Least chances of accidents, fire, etc.
 Proper space for machines, worker, tools, etc.
 Facility Layout
Performance related objectives of facility Layout

• Simpler plant maintenance

• Increased productivity, better product quality, and reduced
cost
• Least set-up cost and minimal change-over
• Objective related to flexibility
• Scope for future expansion
 Facility Layout: Other Objectives
• Provide enough production
capacity.
• Reduces handling costs.
• Reduces congestion.
• Reduces hazards to
personnel.
• Utilizes labour efficiently.
• Increase employee morale.
• Reduce accidents.
• Utilizes available space
efficiently and effectively.
• Provide for volume and
product facility.
• Provide ease for
supervision.
• Facilitate co-ordination
communication.
• Provide safety and health.
• Allow ease of maintenance.
• Allow high
machine/equipment
utilization.
 Facility Layout
Types of facility Layout

1) Process Layout
• Suitable when product having standard features is to be
produced in large volumes.
• The specialized machines and equipments are arranged one
after another in the order of sequence required in the
production process.
Facility Layout
Types of facility Layout
1) Process Layout:
 Facility Layout
Types of facility Layout
1) Process Layout:
Advantages of Process Layout:
• Greater Flexibility
• Better and more efficient supervision possible through
specialization
• Capacity of different product line can be expanded easily.
• Better utilization of men and machine.
Disadvantages:
• More floor space
• More work in progress
• More distance travelled by the product.
 Facility Layout
Types of facility Layout
2) Product Layout:

• It is appropriate for producing one standardized product,

usually in large volume. It is also called as flow-shop layout
or straight line layouts. The machines are arranged according
to the progressive steps by which the product is made.
• Example: chemical, paper, rubber, refineries, cement
industry.
Facility Layout
Types of facility Layout
2) Product Layout:
 Facility Layout
Types of facility Layout
2) Product Layout:
Advantages:
• Mechanization of materials is possible and material handling
cost can be reduced.
• It requires less floor area.
• It facilitates better production control.
• Production bottlenecks are avoided.
Disadvantages:
• Expansion of product line is difficult.
• There is difficulty is supervising.
• Breakdown of equipment disrupts the production.
 Facility Layout
Types of facility Layout
3) Fixed position Layout:

• Movement of men and machine to the product.

• Product remain stationary.
• Material or major components remain in a fixed location.
• Cost of moving the machine and men is lesser than the cost of
moving the product.
Facility Layout
Types of facility Layout
3) Fixed position Layout:
 Facility Layout
Types of facility Layout
3) Fixed position Layout:
Advantages:
• Men and machine can be used for a wide variety of operations
producing different products.
• The investment on layout is very small.
• The worker identifies himself with the product and takes pride
in it when the work is complete.
• The high cost of, and difficulty in transporting a bulky product
are reduced considerably.
 Facility Layout
Types of facility Layout
4) Group Technology Layout:

• Grouping technology layout of cellular manufacturing layout

is made for a single part family i.e. parts with common
characteristics. In this layout dissimilar machines are grouped
into cells and each cell functions like product layout.
 Facility Layout
Types of facility Layout
4) Group Technology Layout:

• Advantage and Disadvantages:

• It reduces material handling cost and simplifies machine
changeovers. It reduces in-process inventory and automate the
production but reduces the flexibility.
Facility Layout
 Assembly Line Balancing
What is assembly-line balancing?

• To a workstation within an assembly line in order to meet

the required production rate and to achieve a minimum
amount of idle time.
• Line balancing is the procedure in which tasks along
Assigning each task the assembly line are assigned to
work station so each has approximately same amount of
work.
 Assembly Line Balancing
Unbalanced Line and its effects
• High work load in some stages (Overburden)

• Maximizes wastes (over-processing, inventory, waiting, rework,

transportation, motion)
• High variation in output

• Restrict one piece flow

• Maximizes Idle time

• Poor efficiency
 Assembly Line Balancing
Balanced Line and its effects
• Promotes one piece flow

• Avoids excessive work load in some stages (overburden)

• Minimizes wastes (over-processing, inventory, waiting, rework,

transportation, motion)
• Reduces variation

• Increased Efficiency

• Minimizes Idle time

 Assembly Line Balancing
How Can Assembly-Line Balancing Help
Organization ?
• Increased efficiency
• Increased productivity
• Potential increase in profits and decrease in costs
 Assembly Line Balancing
Steps in Balancing an Assembly Line
1. List the sequential relationships among tasks and then draw a
precedence diagram.
2. Calculate the required workstation cycle time.
3. Calculate the theoretical minimum number of workstations.
4. Choose a primary rule that will determine how tasks are to be
assigned to workstations.
5. Beginning with the first workstation, assign each task, one at a time,
until the sum of the task times is equal to the workstation cycle time
or until no other tasks can be assigned due to sequence or time
restrictions.
6. Repeat step 5 for the remaining workstations until all the tasks have
been assigned to a workstation.
7. Evaluate the efficiency of the line balance.
 Assembly Line Balancing
Example of Line Balancing

• Problem: The Model Z Bicycle is assembled in an

assembly line. Four hundred and twenty bicycles are
required each day. Production time per day is 420
minutes. Find the balance that minimizes the number of
workstations, that stays within the workstation cycle time
limitation, and that complies with task precedent
constraints.
Task Task Time Task Description Tasks that
(in seconds) Must precede

A 50 Connect the front tire to the bicycle Frame. --

B 16 Insert the handle bar. A
C 14 Tighten handle bar with two screws and nuts. B

D 55 Connect the rear tire to the bicycle frame. --

E 20 Position chain mechanism to the frame. D

F 17 Attach right hand brake to handle bar. C

G 17 Attach left hand brake to handle bar. C

H 17 Attach right side pedal. E

I 17 Attach left side pedal. E

J 13 Position chain onto chain mechanism. F,G,H,I

K 14 Attach seat post. J

250
Step 1- List the sequential relationships among tasks
and then draw a precedence diagram
 Assembly Line Balancing

Step 2: Calculate the required workstation cycle time

(Convert minutes to seconds because task times are in
seconds.)

• CYCLE TIME = (PRODUCTION TIME PER

DAY) /(OUTPUT PER DAY)
= (60 sec. X 420 min.) / ( 420 bicycles)
= 25,200 / 420
= 60 sec.
 Assembly Line Balancing
Step 3. Calculate the theoretical minimum number of
workstations.

• NUMBER OF WORK STATIONS = ( SUM OF

TOTAL TASK TIMES) / (CYCLE TIME)
= 250sec’s / 60 sec’s
= 3.97
= 4 (rounded)
Perspectives on Operations system
of future
 Perspectives on Operations system
of future
Trends in Operations Management
1. Total quality management
2. Lean manufacturing
3. Cycle Time Reduction
4. Global Competition
5. Workers Involvement
6. Business process reengineering
7. Supply chain management
 Perspectives on Operations system
of future
Ethical Issues

Labor relations

Occupational health and workers safety

Product safety

Ethical behavior

Maintaining community affairs

 Perspectives on Operations system
of future
Environmental Issues

Environmental pollution

Optimising waste and fuel consumption

Eco friendly technology

Product Quality
 Perspectives on Operations system
of future
Quality Policy

Product and Consumer Safety

Participative Innovation Process

Share Best Practices

Proactive Systems Development

 Perspectives on Operations system
of future
Safety and Health Policy

Integrated Safety Management

Safeguard Operational Exposure

Safety Evaluation

Training Employees and Deficit Feedback