Process Selection and Layout

Process Selection and Facility Layout
Module 1 Wrap-up
Session 8
Process Flows
• Design of process is largely dependent on the type of flow of
products in an operating system (firm/business unit)
• Different types of flows occur in firms
– Continuous flow
– Connected flow (Assembly line)
– Disconnected flow (Batch shop)
– Jumbled flow (Job shop)
• What are the flows corresponding to each of the cases we
discussed?
Process choice
• What factors affect the choice of a process?
– Volume of the product manufactured
– Variety of the product manufactured
High Volume Mid-volume Low Volume
Low Variety Mid-variety High Variety
Petrochemicals, Motor Manufacturing Power plants

Automobile Pharmaceuticals Aircraft manufacturing
FMCGs White Goods Bridges & Large
Consumer non-durables Consumer Durables Constructions
Where do our cases Fall?
Volume
Variety
Variation in Demand
Visibility
Is there a one-to-one mapping between
volume/variety of products and choice of process?
Product – Process Matrix
Jumbled
Flow Satellite Launch
Opportunity Costs
(Job Shop) Vehicle
Disconnected
Line Flow Machine Tools
(Batch Shop)
Connected Line
Flow (Assembly Automotive
Line) Components line
Continuous Out of Pocket Costs

Flow
Oil Refinery
Low Volume High Volume

Multiple Products Few Major Products
Low Standardisation High Standardisation
Low Volume Higher Volume
One of a kind Commodity Products
Source: Adapted from Hayes and Wheelright (1979).

Process design for operations
Flow Characteristics Continuous Intermittent Jumbled
Product High Volume, Low Variety Medium Volume, Medium High Variety, Low Volume
Characteristics Variety
Examples of Process Industry, Mass Batch production in Process Project Organisations, Tool
production systems production systems in and discrete manufacturing Rooms, General purpose
discrete manufacturing fabricators
Issues of Flow Balancing, Manufacturing system and Capacity Estimation,
importance Maintenance, Capacity layout design, Changeover Scheduling, Production
utilization and management, Capacity Control, Cost estimation
debottlenecking, Vertical planning and estimation
integration
Layout Design and Planning
• Deals with the physical arrangement of various resources
(machines and labor)
• Optimal design helps in improving the performance of the firm
– Jobs/People in manufacturing setup have to travel less
– Customers spend less time in queues and in system in service shops
– Direct effect/Indirect effect on Cost, Quality and Responsiveness
– Example: Donner Case - Reduction in movement time between stations!
Types of Layout
• Process/Functional Layout
• Product Layout
• Group Technology (GT) Layout (Cellular Manufacturing)
• Fixed Position Layout
• Is there a dominant layout that can be followed for a type of

volume-variety and flow?
Process Layout
L – Lathe
D – Drilling
Product A M- Machining
L L L L D D
Product B G - Grinding
D D
Product C L L L L
D D
M M
G G G
M M
Product Layout
L – Lathe
D – Drilling
Product A L D M G M- Machining
G - Grinding
Product B L D L G
Product C L D M L G
Group Technology Layout
Cell 1 Cell 2
L M D M D L
D L G G D L
L D L D
M L G L M
Cell 4 Cell 3
https://www.youtube.com/watch?v=Ynhp8Wi2qwM
Fixed Position Layout
Performance Measures
Performance Measure Basis for measurement
Distance travelled by jobs in the shop floor Kg - Metres of job movement for each product
Space utilization index Minimum space required to actual space utilised
Material Handling costs Rupees per month

Lead time of the processes Hours per average product
Investment in work-in-progress Rupees per month
Number and quantum of inter-departmental
Inter-departmental moves
moves
Utilisation of the resources Percent to total capacity
Number of job cards and control documents

Ease of production control
generated; Size of the progress chasing staff
Number of times the responsibility for the job

Number of ownership changes
changes hands
Design of Process Layouts
• Qualitative Method
– Links criteria to the closeness required between a pair of resources
• Quantitative Method
– Uses quantitative performance measures for assessing the impact of layout design
– Seeks to arrive at the best layout design by optimizing on this performance measure
• Performance evaluation models using computer simulation techniques
Design of Process layout-Qualitative Approach
Department 1
Value Closeness O
A Absolutely necessary Department 2 A
U I
E Especially Important Department 3 O E
I Important A X A
O Ordinary closeness OK Department 4 U U
U O
U Unimportant Department 5 O
X Undesirable O
Department 6
Design of Process Layout – Quantitative Approach
• Cij = Cost per unit of transporting a unit distance from department “i” to department
“j”
• Fij = Inter-departmental flow between department “i” and department “j”
• Dij = Distance between department “i” and department “j”
• n = Number of departments to be laid out
• The total cost of the plan is given by:
n n
TC   F D C
i 1 j 1
ij ij ij
• If this is the objective function (minimizing the total cost of the plan), can we model a
constrained optimization problem?
Design of Product Layout
• Several Mass Production Systems are in operation today
– Various sub-assemblies (activities/resources) in a mass producer need to be
configured to match the production rate
– The final assembly stations need to have the required number of resources at each
station to meet the targeted demand
• A product layout design
– Seeks to identify the minimum number of resources required to meet a targeted
production rate and the order in which these resources are to be arranged
– Technique employed for designing product layout is known as line balancing
Module Wrap-up

Process Selection and Layout

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Process Selection and Facility Layout

Petrochemicals, Motor Manufacturing Power plants

Continuous Out of Pocket Costs

Low Volume High Volume

Source: Adapted from Hayes and Wheelright (1979).

Flow Characteristics Continuous Intermittent Jumbled

• Is there a dominant layout that can be followed for a type of

Space utilization index Minimum space required to actual space utilised

Material Handling costs Rupees per month

Number of job cards and control documents

Number of times the responsibility for the job

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