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Unit - 3-2 Process Selection and Facility Layout
Unit - 3-2 Process Selection and Facility Layout
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Process Selection
Process selection
Deciding on the way production of goods or services
will be organized
It has Major implications for
Capacity planning
Selection of technology
Layout of facilities
Equipment
Design of work systems
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Process Strategy
How an organization approaches process selection is
determined by the organization’s process strategy
Process strategy
an organization’s overall approach for physically producing goods and
services
Key aspects of process strategy :
Vertical integration-the extent to which firm will produce inputs and control
outputs of each stage of production process
Capital intensity – the mix of equipment and labor used in production process
Process flexibility- the degree to which the system can be adjusted to
changes in processing requirements such as: - Design, Volume , technology
(in response to changes in demand, technology, resource availability etc)
Customer involvement –role of customer in production process 4
Process Selection
Factors in process selection
Variety
- How much variety in products or services will the
system need to handle?
Flexibility
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Process types
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Project
Production of customized single products
Labor and materials brought to site
Planning , scheduling challenges
Non-routine work
Unique (one of a kind) products
make a one-at-a-time product exactly to customer specifications
Little automation (large-scale ‘products’ with high work content)
labor and equipment flexibility can range from low to high
Limited time frame
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Job shop
Relatively small scale (and smaller products)
Low volume of high-variety products
Customized products
High flexibility of equipment(general purpose equipment)
Skilled labor (skill requirements are usually very broad)
Processing is intermittent
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Batch
Moderate volume of moderate variety products
(Higher volumes and lower variety than job shop)
Semi-standardized products
The equipment need not be as flexible as in a job shop
The skill level of workers doesn’t need to be as high as in a
job shop because there is less variety in the jobs being
processed (moderately skilled labor)
Processing is intermittent
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Repetitive/assembly
Higher volumes and low variety standardized
products
Discrete(non-continuous) products
Less flexibility of equipment
Low and/or narrow skill requirements
Processing is repetitive
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Continuous
Very high volume and less/no variety of
highly standardized products
Non-discrete products
Very low equipment flexibility
Workers’ skill requirements can range from
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Product-process Matrix
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The effect of Process choice
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Advantages and Disadvantages
of process types
Job shop Batch Repetitive/ Continuous
Assembly
Description Customized Semi- Standardized Highly
goods or standardized goods or standardized
services goods or services goods and sevs
services
Disadvantages Slow, high cost Moderate cost Low flexibility, Very rigid, lack
per unit, per unit, high cost of of variety,
complex moderate downtime costly to
planning and scheduling change, very
scheduling complexity high cost of
downtime
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Process Technology (PT)
PT refers to the machines, equipment and devices that create
and/or deliver products and services
all technology needs human intervention, but the ratio of
labor and equipment (capital intensity) used in production
process vary
Different process technologies are required for different parts of
the volume–variety continuum
High variety–low volume processes generally require process
technology that is general purpose because it can perform
the wide range of processing activities that high variety
demands
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Degree of Automation
High volume–low variety processes can use technology that
is more dedicated to its narrower range of processing
requirements
Processes that have high variety and low volume will
employ process technology with lower degrees of
automation than those with higher volume and lower
variety
Automation
Machinery that has sensing and control devices that
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Degree of Automation
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Automation
Computer-aided design and manufacturing (CAD/CAM)
Electronic link between automated design (CAD) and automated manufacture
(CAM)
Computer numerically control (CNC)
Machines controlled by software to perform a range of operations with the help of
automated tool changers; collects processing information and quality data
Flexible manufacturing system (FMS)
A collection of CNC machines connected by an automated material handling
system to produce a wide variety of parts
Robots
Programmable manipulators that can perform repetitive tasks; more consistent
than workers but less flexible
Computer-integrated manufacturing (CIM)
Automated manufacturing systems integrated through computer technology; also
called e-manufacturing
Automation
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Automation
Advantage Disadvantage
Better qualify of goods and high capital investment
enhanced.
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Facility Layout
Layout refers to the configuration of departments,
work centers, and equipment, with particular
emphasis on movement of work (customers or
materials) through the system
The basic objective of layout design is to facilitate a
smooth flow of work, material, and information
through the system
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Facility layout
Other Supporting objectives includes
To facilitate attainment of product or service quality
To use workers and space efficiently
To avoid bottlenecks
To minimize material handling costs
To eliminate unnecessary movements of workers or
materials
To minimize production time or customer service time
To design for safety
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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
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The Need for Layout Decisions
Inefficient operations
High Cost Bottlenecks
Changes in the design of products or services
The introduction of new products or services
Accidents or Safety hazards
Changes in volume of output or mix of products
Changes in methods and equipment
Changes in environmental or other legal requirements
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Inputs to the Layout
Decision
1.Specification of objectives of the system in terms of
output and flexibility
2.Estimation of product or service demand on the
system
3.Processing requirements in terms of number of
operations and amount of flow between departments
and work centers
4. Space requirements for the elements in the layout
5. Space availability within the facility itself
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Layout Types
There are 3 basic types and one hybrid type
Basic types
Product layouts
Process layouts
Fixed-Position layout
Hybrid type
Group Technology or Cellular layouts
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Basic Layout Types
Product layout
Layout that uses standardized processing
operations to achieve smooth, rapid, high-
volume flow
Equipment or work processes are arranged
according to the progressive steps by which the
product is made
Product layouts are most conducive to
repetitive or Continuous Processing
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Product layouts
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Advantages of Product Layout
High rate of output
Low unit cost due to high volume
Labor specialization
Low material handling cost
High utilization of labor and equipment
Established routing and scheduling(in the initial design of
the system)
Routing accounting, purchasing and inventory control
Little direct supervision is required
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Disadvantages of Product Layout
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Advantages of Process Layout
Can handle a variety of processing
requirements
Not particularly vulnerable to equipment
failures
General-purpose equipment is less costly
and is easier and less costly to maintain
Possible to use individual incentive systems
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Disadvantages of Process
Layout
In-process inventory is relatively high and its costs can be high
Routing and scheduling pose continual challenges
Equipment utilization rates are low
Material handling is slow and inefficient, and more costly per
unit
Job complexities reduce the span of supervision and result
higher supervisory costs
Special attention necessary for each product or customer and
low volumes result in higher unit costs
Accounting, inventory control, and purchasing are much more
involved
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Product and Process layouts
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Product and Process layouts
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Fixed Position Layouts
Layout in which the product or project remains stationary, and
workers, materials, and equipment are moved as needed.
Nature of the product dictates this type of layout
Weight
Size
Bulk
Widely used for farming, firefighting, road building, home building,
power plants, dams construction, shipbuilding, and oil drilling
In each case, compelling reasons bring workers, materials, and
equipment to the “product’s” location instead of the other way
around.
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Fixed layout -example
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Advantages of fixed layout
Reduces movement of machines &
equipment
Minimizes damage/cost of movement
Continuity of assigned work force
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Disadvantages of fixed layout
Skilled & versatile workers needed due to multiple
operations
Skill combination may be difficult to obtain higher
pay
Movement of people/material may be expensive
Equipment utilization low as they are left at location
for subsequent usage instead of being moved as
& where needed
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Hybrid Layout
Many operations either design themselves
hybrid layouts which combine elements of
some or all of the basic layout types or
use the ‘pure’ basic layout types in
different parts of the operation
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Group Technology(cellular)
layout
Group dissimilar machines into work centers
(cells) to work on products that have similar
shapes and processing requirements
It is similar to a process layout in that cells
are designed to perform a specific set of
processes, and it is similar to a product
layout in that the cells are dedicated to a
limited range of products
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Cellular layout - example
1. computer component manufacture
the processing and assembly of some types of
computer parts may need a special area dedicated to
the manufacturing of parts for one particular
customer who has special requirements such as
especially high quality levels
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Cellular layout - example
2. a department display of various types of goods in different parts of
the store. Each display area can be considered a separate process devoted
to selling a particular class of goods – shoes, clothes, books and so on.
The exception is the sports shop. This area is a shop-within-a-shop
area which is devoted to many goods which have a common sporting
theme. For example, it will stock sports clothes, sports shoes, sports bags,
sports magazines, sports books and videos, sports equipment and gifts
and sports energy drinks. Within the ‘cell’ there are all the ‘processes’
which are also located elsewhere in the store. They have been located in
the ‘cell’ not because they are similar goods (shoes, books and drinks
would not usually be located together) but because they are needed to
satisfy the needs of a particular type of customer.
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Cellular layout
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Advantages and Disadvantages
of Cellular Layouts
Advantages Disadvantages
Reduced material handling Inadequate part families
Easier to automate
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Improving Layouts
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Improving Layouts
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Designing Product Layouts:
Line Balancing - Harmonizing the
Content of Work
The goal of a product layout is to arrange workers or machines
in the sequence that operations need to be performed.
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Line balancing
Line Balancing is the process of assigning tasks to
workstations in a manner that minimizes the number of
workstations and the total amount of idle time at all
stations for a given output level
Objective
Balance the assembly line i.e. minimize the imbalance
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Line Balancing Procedure
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Example
1. Specify the sequential relationship among tasks using a precedence
diagram
1.
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Example
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Example
4. Assigned tasks to workstations (one task at a time)
recognizing cycle time and precedence constraints
a. All preceding tasks in the sequence have been assigned.
b. The task time does not exceed the time remaining at the workstation
If no tasks are eligible, move on to the next workstation
Break ties that occur between tasks using either one of these
rules as a primary rule and the other as secondary criteria
a. Assign the task with the longest task time…(Primary rule)
b. Assign the task with the greatest number of followers..(secondary rule)
If there is still a tie, choose one task arbitrarily
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Example
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Example-5.
Calculate efficiency of line
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Other approach
1. One approach is to use parallel workstations. These are beneficial
for bottleneck operations which would otherwise disrupt the flow of a
products as it moves down the line. The bottleneck may be the result
of difficulty or very long tasks. Parallel workstations increase the work
flow and provide flexibility
2. Another approach to achieve a balanced line is to cross-train
workers so that they are able to perform more than one task. When
bottleneck occur workers with temporarily increased idle time can
assist other workers who are temporarily overburdened. This is
sometimes referred to as dynamic line balancing
3. another approach is to design a line to handle more than one
(fairly similar) product on the same line. This is referred to as
mixed model line
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Designing Process Layouts
The main issue in designing process layouts concerns the
relative positioning of the departments involved.
Information Requirements:
1. List of departments
2. Projection of work flows
3. Distance between locations
4. Amount of money to be invested
5. List of special considerations
6. Location of key utilities
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Designing Process Layouts
Minimizing Transportation Costs or
Distances
Closeness rating
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Minimizing Transportation
Costs or Distances
Distance between Interdepartmental work
The most common location (meters) flow(loads per day)
goals in designing
process layouts are
minimization of
transportation costs or
distances traveled. In
such cases, it can be
very helpful to
summarize the
necessary data in from-
to charts as shown in
the table
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Example
Assign the three dept’s shown in the left side table
above to locations A, B, and C, which are separated by
the distances shown on the right side table in such a
way that transportation cost is minimized
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Distance Department Pair Work
Trip (Meter) Flow
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Interdepartmental Work Flows
for Assigned Departments
30
170 100
1 3 2
A B C
If the cost per meter to move any load is $1, you may compute the total daily
transportation cost for this assignment by multiplying each department’s number
of loads by the trip distance i.e. (30x40) + (170x20) + (100x30) = $ 7600
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CLOSENESS RATINGS
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A Muther grid: Relationship Chart
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Example: using the following grid,
determine if the department location shown are
appropriate. If not, modify the assignment
2 5 4
1 8 6
7 3
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Example
- Identify critical departments
- Critical departments are those with A or X ratings. Prepare a list of those by
referring to the grid
- Form a cluster of A links, beginning with the department
that appears most frequently in the A list. Take the
remaining A s in order, and add them to this main cluster
where possible, rearranging the cluster as necessary
- Form separate clusters for departments that do not link with
the main cluster
- Graphically portray the X s
- Check that the cluster of As also satisfies the X separations
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Example
- Identify critical As
1-3
Xs
1-2
departments 1-8 2-4
- Critical 2-7 1-7
departments are 3-5
those with A or X 3-6
ratings. Prepare a 3-8
list of those by 4-5
referring to the 4–8
grid 5–7
5-8
6-8
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Example
Form a cluster of A links, beginning with the department that appears most
frequently in the A list. Take the remaining A s in order, and add them to this
main cluster where possible, rearranging the cluster as necessary
4
5
1 5 1 3
8
6
3 6
5
4
8
5 7
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Example
1 5
4
8
3 7
6 2
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Example
Form separate clusters for departments that do
not link with the main cluster- (all link with
Modified assignment
the main cluster in this case)
Graphically portray the X s
1 5 4
2
1 4
3 8 7
7
6 2
Check that the cluster of A s also satisfies
the X separations
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End
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