Process Selection and Facility Layout

Process Selection
and Facility Layout
Process types,
process selection
and automation
The ways organizations choose to

produce or
provide their goods and services.
It involves choice of technology, type of
processing, and so on.
Capacity planning
It influences
Layout of facilities
Equipment
Design of work systems
Forecastin
g
Capacity
Planning
Product &
service
Design
Technologic
al
Change
Facilities
and
Equipment
Layout
Process
Selection
Work
Design
Capacity is significantly impacted by process selection

and facility layout.
Variety
Batch
How much
Flexibility
Project Job
Shop
Repetitive
What degree
Volume
Expected output
Continuous
Project: A non-repetitive set of activities directed

toward a unique goal within a limited time frame
Unique
Examples: Building a bridge, consulting
Job shop: provides unit or lot production or

service with changeable specifications, according
to customer needs
Small scale
Examples: Machine shop, dentists office
Batch: Produces many different products in

groups (batches)
Low or Moderate volume
Examples: Bakeries, movie theaters, classrooms
Repetitive: provides one or a few highly

standardized products or services
High volumes of standardized goods or services
Examples: automobiles, computers, cafeteria, car
wash
Continuous: produces highly uniform products or

continuous services, often performed by machines
Very high volumes of non-discrete goods
Examples: refineries, chemical plant, flour, sugar,
electricity supplying and the internet
Job Shop
Batch
Repetitive
Continuous
Projects
Cost
estimation
Difficult
Somewhat routine
Routine
Routine
Simple to
complex
Cost per unit
High
Moderate
Low
Low
Very high
Equipment
used
General
purpose
General purpose
Special
purpose
Special
purpose
Varied
Fixed costs
Low
Moderate
High
Very high
Very high
Variable
costs
High
Moderate
Low
Very low
High
Labor skills
High
Moderate
Low
Low to high
Low to high
Marketing
Promote
capacities
Promote
capacities; Semistandard goods/
services
Promote
standardized
goods/
services
Promote
standardized
goods/ services
Promote
capacities
Scheduling
Complex
Moderately
complex
Routine
Routine
Complex,
subject to
change
Work-inprocess
inventory
High
High
Low
Low
Varied
Automation: Machinery that has sensing

and control devices that enables it to
operate automatically
Standardized goods and services
Examples:
Goods: Automobile factories, semiconductors
Services: Package sorting, e-mail, on-line banking
Fixed automation
Specialized equipment for a fixed sequence of operations
Programmable automation
Computer-aided design and manufacturing systems
(CAD/CAM)
Numerically controlled (NC) machines: Machines that
perform operations by following mathematical processing
instructions.
Robot: A machine consisting of a mechanical arm, a power
supply and a controller
Flexible automation
Manufacturing cell
Flexible manufacturing systems
Computer-integrated manufacturing (CIM)
FMS are more fully automated versions of

cellular manufacturing: A computer controls
the transfer of parts from machine to
machine as well as the start of work at each
machine
Produce a variety of similar products
Classification of
production systems
and types of layouts
The arrangement of departments, work

centers, and equipment, with particular
emphasis on movement of work
(customers or materials) through the
system.
Inefficient operations
For Example:
High Cost
Bottlenecks
Changes in the design

of products or services
Accidents
The introduction of new
products or services
Safety hazards
Changes in
environmental
or other legal
requirements
Changes in volume of
output or mix of
products
Morale problems
Changes in methods
or equipment
Product Layouts most helpful to repetitive

processing
Process Layouts used for irregular processing
Fixed-position layouts used when projects

require layouts
Hybrid layouts combinations of these above types

Cellular manufacturing
Group technology
Flexible Manufacturing Systems
Product layout: Layout that uses standardized

processing operations to achieve smooth, fast, highvolume flow
Made possible by highly standardized goods or

services that allow highly standardized, repetitive
processing
The work is divided into a series of standardized tasks,

permitting specialization of equipment and division of
labor
The large volumes handled by these systems usually

make it economical to invest substantial sums of
money in equipment and in job design.
Raw
materials
or
customer
Materia
ls
and/or
labor
Station
Station
Station Station
22
11
Material
s
and/or
labor
Material
s
and/or
labor
Station
Station
33
Station
Station
44
Finishe
d item
Material
s
and/or
labor
Used for Repetitive or Continuous Processing

Example: automobile assembly lines, cafeteria
serving line
In
4
5
Workers
6
Out
10
High rate of output
Low unit cost
Labor specialization
Low material handling cost
High utilization of labor and equipment
Established routing and scheduling
Routine accounting, purchasing and

inventory control
Creates boring, repetitive jobs
Poorly skilled workers may not maintain

equipment or quality of output
Fairly inflexible to changes in volume
Highly inclined to shutdowns
Needs preventive maintenance
Individual incentive plans are impractical
Process layouts: Layouts that can handle

various processing requirements
The layouts feature departments or other

functional groupings in which similar kinds of
activities are performed
Examples: Machine shops usually have

separate departments for milling, grinding,
drilling, and so on
Different products may present quite different

processing requirements and sequences of
operations
Milling
Assembly
& Test
Drilling
Grinding
Plating
Process Layout - work travels to dedicated process centers
Can handle a variety of processing

requirements
Not particularly at risk to equipment

failures
Equipment used is less costly
Possible to use individual incentive plans
In-process inventory costs can be high
Challenging routing and scheduling
Equipment utilization rates are low
Material handling slow and inefficient
Complexities often reduce span of supervision
Special attention for each product or

customer
Accounting, inventory control and purchasing

are more involved
Fixed-Position Layout: Layout in which the

product or project remains stationary, and
workers, materials, and equipment are moved
as needed
Examples:
Large construction projects (buildings,

power plants, dams)
Shipbuilding, production of large aircraft
Rockets used to launch space missions
The three basic layout types may be altered to

satisfy the needs of a particular situation
Examples:
Supermarket layouts: primarily process
layout, have fixed-path material-handling
devices as well (roller-type conveyors and
belt-type conveyors)
Hospitals: process layout, fixed-position
layout as well (patient care)
Off-line reworking (customized processing)
of faulty parts in a product layout
Cellular Production
Layout in which machines are grouped into a
cell that can process items that have similar
processing requirements
Group Technology
The grouping into part families of items with
similar design or manufacturing characteristics
Design characteristics: size, shape and
function.
Manufacturing or processing characteristics:
type and sequence of operations required.
Line Balancing
Line Balancing is the process of assigning

tasks to workstations in such a way that the
workstations have approximately equal time
requirements.
Tasks are grouped into manageable bundles and

assigned to workstations with one or two
operators
Goal is to minimize idle time along the line, which

leads to high utilization of labor and equipment
Perfect balance is often impossible to achieve
Cycle time is the maximum time allowed

at each workstation to complete its set
of tasks on a unit.
0.1 min.
0.7 min.
1.0 min.
0.5 min.
With 5 workstations, CT 1.0

= minute.
Cycle time of a system = longest processing time in a

workstation.
0.2 min.
0.1 min.
0.7 min.
1.0 min.
0.5 min.
0.2 min.
With 1 workstation, CT2.5

= minutes.
Cycle time of workstation = total processing time in of
tasks.
With 3 workstations, can CT = 1.0

minute?
0.1 min.
0.7 min.
Workstation 1
1.0 min.
Workstation
2
0.5 min.
0.2 min.
Workstation 3
OT
Output capacity =
CT
OT = operating time per day
CT = cycle time
Example: 8 hours per day
OT = 8 x 60 = 480 minutes per day
Cycle Time = CT = 1.0 min
Output = OT/CT = 480/1.0 = 480 units per day
Cycle Time = CT = 2.5 min
Output = OT/CT = 480/2.5 = 192 units per day
OT
CT = cycle time =
D
D = Desired output rate
Example: 8 hours per day
OT = 8 x 60 = 480 minutes per day
D = 480 units per day
CT = OT/D = 480/480 = 1.0 Minute
Nmin =
t
CT
t = sum of task times

Nmin = theoretical Minimum Number of
Workstations Required
Example: 8 hours per day, desired
output rate is 480 units per day
CT = OT/D = 480/480 = 1.0 Minute
Nmin = t /CT = 2.5/1.0 = 2.5 stations
3 stations
Designing
Process Layouts
The main issue in design of process layouts

concerns the relative positioning of the
departments involved.
Departments must be assigned to locations.
The problem is to develop a reasonably good

layout; some combinations will be more desirable
than others.
Some departments may benefit from adjacent

locations
Sharing expensive tools or equipments.
Some departments should be separated

A lab with delicate equipment should not be located
near a department that has equipment with strong
vibrations.
Sand blasting department and painting department.
Flammable materials near a furnace.
One advantage of process layouts: satisfy a variety of

processing requirements
Customers or materials in these systems require

different operations and different sequences of
operations
One of the major objectives in process layout is to

minimize transportation cost, distance, or time
This is usually accomplished by locating departments

with relatively high interdepartmental work flow as
close together as possible

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Process Selection

and Facility Layout

The ways organizations choose to

Capacity is significantly impacted by process selection

Project: A non-repetitive set of activities directed

Job shop: provides unit or lot production or

Batch: Produces many different products in

Repetitive: provides one or a few highly

Continuous: produces highly uniform products or

Cost per unit

Automation: Machinery that has sensing

Standardized goods and services

FMS are more fully automated versions of

The arrangement of departments, work

Changes in the design

Product Layouts most helpful to repetitive

Process Layouts used for irregular processing

Fixed-position layouts used when projects

Hybrid layouts combinations of these above types

Product layout: Layout that uses standardized

Made possible by highly standardized goods or

The work is divided into a series of standardized tasks,

The large volumes handled by these systems usually

Used for Repetitive or Continuous Processing

High rate of output

Low unit cost

Low material handling cost

High utilization of labor and equipment

Established routing and scheduling

Routine accounting, purchasing and

Creates boring, repetitive jobs

Poorly skilled workers may not maintain

Fairly inflexible to changes in volume

Highly inclined to shutdowns

Needs preventive maintenance

Individual incentive plans are impractical

Process layouts: Layouts that can handle

The layouts feature departments or other

Examples: Machine shops usually have

Different products may present quite different

Process Layout - work travels to dedicated process centers

Can handle a variety of processing

Not particularly at risk to equipment

Equipment used is less costly

Possible to use individual incentive plans

In-process inventory costs can be high

Challenging routing and scheduling

Equipment utilization rates are low

Material handling slow and inefficient

Complexities often reduce span of supervision

Special attention for each product or

Accounting, inventory control and purchasing

Fixed-Position Layout: Layout in which the

Large construction projects (buildings,

The three basic layout types may be altered to

Line Balancing is the process of assigning

Tasks are grouped into manageable bundles and

Goal is to minimize idle time along the line, which

Perfect balance is often impossible to achieve