Process Selection and Facility LayoutBy A. HARIS AWANGAsia Metropolitan University

TopicsProcesses and TechnologyProcess PlanningOutsourcingProcess selectionProcess AnalysisProcess plansProcess flowchartsProcess InnovationSteps in process innovationTechnology DecisionsFinancial justifications of technologyA technology primer

Topics (contd)Capacity and Facilities DesignCapacity PlanningFacilitiesObjectives and facility layoutBasic LayoutProcess layoutsProduct layoutsFixed position layoutsDesigning Process LayoutsBlock diagrammingRelationship diagrammingComputerized layout solutionsDesigning Service LayoutsLine balancingHybrid LayoutsI-LineU-Line (Cellular)

Process and TechnologyA process is a group of related tasks with specific inputs and outputs. Processes exist to create value for the customer, the shareholder, or society.A companys process strategy defines its:Vertical integration: The extent to which the firm will produce the inputs and control the outputs of each stage of the production process.Capital intensity: The mix of capital (i.e., equipment, automation) and labor resources used in the production process.Process flexibility: The ease with which resources can be adjusted in response to changes in demand, technology, products or services, and resource availability.Customer involvement: The role of the customer in the production process.

Source: http://www.autocarpro.in/Process Planning - Outsourcing vs. In-house manufacturing

Process Planning - Selection

Source: Russell & Taylor (2011)

Process Selection ProjectsProjects take a long time to complete, involve a large investment of funds and resources, and produce one item at a time to consumer order. Examples: construction projects, shipbuilding, new-product development, and aircraft manufacturing.

Construction

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Shipbuilding

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New Product Development

Source: paultan.org

Aircraft Manufacturing

Source: reuters.com

Process Selection BatchBatch production processes many different jobs through the production system at the same time in groups or batches. Products are typically made to customer order, volume (in terms of customer order size) is low, and demand fluctuates. Examples: bakeries, machine shops, education and handmade soap making.

Process Selection Job ShopA job shop is a type of manufacturing process in which small batches of a variety of custom products are made. In the job shop process flow, most of the products produced require a unique set-up and sequencing of process steps.Examples include a machine tool shop, a machining center, a paint shop, a commercial printing shop and other manufacturers that make custom products in small lot sizes.

Bakeries

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Machine Shop

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Education

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Soap Making

http://f.tqn.com/y/candleandsoap/

Process Selection MassMass production produces large volumes of a standard product for a mass market. Product demand is stable, and product volume is high. Examples of mass production include automobiles, televisions, personal computers, fast food, and most consumer goods.

Automobile

http://www.techspot.com/

Fast Food

https://media.glassdoor.com

Consumer Goods

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Process Selection ContinuousContinuous production is used for very high-volume commodity products that are very standardized. The system is highly automated and is typically in operation continuously 24 hours a day. Examples of continuous production include refined oil, treated water, paints, chemicals, and foodstuffs are produced by continuous production.

Palm Oil Mill http://www.taann.com.my/

Power Plant http://www.thestar.com.my/

Water Treatment Plant http://www.thestar.com.my/

Process AnalysisProcess analysis is the systematic examination of all aspects of a process to improve its operationto make it faster, more efficient, less costly, or more responsive to the customer.

Assembly Chart for Big MacSource: Russell & Taylor (2011)

Process Flow ChartSource: Russell & Taylor (2011)

Process InnovationWhen continual improvement efforts have been exhausted and performance expectations still cannot be reached with an existing process, it is time to completely redesign or innovate the process.Process innovation projects are typically chartered in response to a breakthrough goal for rapid, dramatic improvement in process performance.

Steps in Process InnovationSource: Russell & Taylor (2011)

Technology DecisionsTechnology decisions involve large sums of money and can have a tremendous impact on the cost, speed, quality, and flexibility of operations. More importantly, they define the future capabilities of a firm and set the stage for competitive interactions. Thus, it is dangerous to delegate technology decisions to technical experts or financial analysts.

Financial Justification of TechnologyPurchase CostOperating CostsAnnual SavingsRevenue EnhancementReplacement AnalysisRisk and UncertaintyPiecemeal Analysis

A Technology PrimerComputer-integrated manufacturing (CIM) has evolved into a Web-centric collaborative venture known as e-manufacturing (eM).

Components of e-ManufacturingSource: Russell & Taylor (2011)

Capacity and Facilities DesignCapacity is the maximum capability to produce. Capacity decisions affect product lead times, customer responsiveness, operating costs, and a firms ability to compete. Inadequate capacity can lose customers and limit growth.Facilities design affects how efficiently workers can do their jobs, how much and how fast goods can be produced, how difficult it is to automate a system, and how responsive the system can be to changes in product or service design, product mix, or demand volume.

Capacity PlanningCapacity planning establishes the overall level of productive resources for a firm.Long-term capacity planning is a strategic decision that establishes a firms overall level of resources. It extends over a time horizon long enough to obtain those resourcesusually a year or more for building or expanding facilities or acquiring new businesses.

Capacity Expansion StrategiesSource: Russell & Taylor (2011)

FacilitiesFacilities make a difference. They can provide a competitive edge by enabling and leveraging the latest process concepts. Facilities must be planned, located, and laid out.

Objectives of Facility LayoutThe basic objective of the layout decision is to ensure a smooth flow of work, material, people, and information through the system. Effective layouts also:Minimize movement and material handling costsUtilize space efficientlyUtilize labor efficientlyEliminate bottlenecksFacilitate communication and interaction between workers, between workers and their supervisors and between workers and customersReduce manufacturing cycle time and customer service timeEliminate wasted or redundant movementFacilitate the entry, exit, and placement of material, products, and peopleIncorporate safety and security measuresPromote product and service qualityEncourage proper maintenance activitiesProvide a visual control of activitiesProvide flexibility to adapt to changing conditionsIncrease capacity

Basic LayoutsProcess LayoutProducts LayoutFixed Position Layout

Understanding Basic Flow

Process LayoutSource: Russell & Taylor (2011)

Product LayoutSource: Russell & Taylor (2011)

Fixed Position LayoutSource: Russell & Taylor (2011)

Designing Process LayoutsBlock DiagramingRelationship DiagrammingComputerized Layout Solutions

Block DiagrammingSource: Russell & Taylor (2011)

Relationship DiagrammingSource: Russell & Taylor (2011)

Computerized Layout Solutions

Designing Service Layouts

Source: Russell & Taylor (2011)

Types of Store LayoutsSource: Russell & Taylor (2011)

Line Balancing

Hybrid LayoutsI-LineU-Line

Capital IntensityThe combination of equipment and labor that an organization uses to accomplish some objective.

AutomationComputer-aided design and manufacturing systems (CAD/CAM)Computer Numerically controlled (CNC) machines RobotManufacturing cellFlexible manufacturing systems(FMS)Computer-integrated manufacturing (CIM)

CNC Machining

Source: http://www.dbzguitars.com/

Process FlexibilityHow well a system can be adjusted to meet changes in processing requirements that are interdependent on variables such as product or service design, volume of production, and technology.

ReferenceRussell, R.S & Taylor, B.W.(2011).Operations Management: Creating Value Along the Supply Chain.(7th ed.).US:John Wiley and Sons, Inc.http://www.inc.com/encyclopedia/job-shop.htmlhttp://www.dbzguitars.com/

Put a good person in a bad system and the bad system wins, no contest.W. Edwards Deming

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