6

Process Selection
and Facility Layout
 Learning Objectives
 Explain the strategic importance of process
selection.
 Describe the basic processing types.
 Describe the basic layout types.
 List the main advantages and disadvantages of
product layouts and process layouts.
 Solve simple line-balancing problems.
 Develop simple process layouts.

6-2
 Introduction
 Process selection
 Deciding on the way production of goods or
services will be organized
 Major implications
 Capacity planning
 Layout of facilities
 Equipment
 Design of work systems

6-3
 Process Selection and
System Design
Facilities and
Forecasting Capacity Equipment
Planning

Product and Layout

Service Design

Process
Technological Selection Work
Change Design

6-4
 Process Strategy
• Key aspects of process strategy
– Capital intensive – equipment/labor
– Process flexibility/Adjust to changes
– Design
– Volume
– Technology

6-5
 Process Selection
 Variety
 How much
 Flexibility
 What degree
 Volume
 Expected output

6-6
 Process Types
 Job shop
 Small scale
 Batch
 Moderate volume
 Repetitive/assembly line
 High volumes of standardized goods or services
 Continuous
 Very high volumes of non-discrete goods

6-7
Product – Process Matrix

6-8
 Process Types
 Job Shop:  It is used when a low volume of high-
variety goods or services will be needed.
Processing is intermittent; work includes small jobs,
each with somewhat different processing
requirements. High flexibility using general-purpose
equipment and skilled workers are important
characteristics of a job shop. A manufacturing
example of a job shop is a tool and die shop that is
able to produce one-of-a-kind tools. A service
example is a Doctor’s office.

6-9
 Process Types
 Batch:   used when a moderate volume of goods or
services is desired, and it can handle a moderate
variety in products or services. The equipment
need not be as flexible as in a job shop, but
processing is still intermittent.
 Manufacturing examples: cakes.
 Service examples: airline flight, classroom
lectures.

6-10
 Process Types
 Repetitive: used when higher volumes of more
standardized goods or services are needed. The
standardized output means only slight flexibility of
equipment is needed. Skill of workers is generally low.
 Examples of this type of system include production lines and
assembly lines. Familiar products made by these systems
include automobiles, television sets.
 An example of a service system is an automatic carwash.
 You are likely to see only minor variations in the product or
service being produced using the same process and
equipment

6-11
 Process Types
 Continuous.    Used for a very high volume of non-discrete,
highly standardized output.
 These systems have almost no variety in output and, hence,
no need for equipment flexibility. Workers' skill requirements
can range from low to high, depending on the complexity of
the system and the expertise workers need. Generally, if
equipment is highly specialized, worker skills can be lower.
 Examples of non-discrete products made in continuous
systems include petroleum products and steel. Continuous
services include supplying electricity and water.
 Key difference between Repetitive and Continuous is that in
Repetitive systems you may experience minor variations in
product or service, whereas in Continuous system you will
see not almost no variation.

6-12
 Product and Process Profiling
 Process selection can involve substantial investment
in
 Equipment
 Layout of facilities
 Product profiling: Linking key product or service
requirements to process capabilities
 Key dimensions
 Range of products or services
 Expected order sizes
 Pricing strategies
 Expected schedule changes
 Order winning requirements
6-13
 Facilities Layout
 Layout: the configuration of
departments, work centers, and
equipment, with particular emphasis on
movement of work (customers or
materials) through the system
 Product layouts
 Process layouts
 Fixed-Position layout
 Combination layouts

6-14
 Objective of Layout Design
1. Facilitate attainment of product or service quality
2. Use workers and space efficiently
3. Avoid bottlenecks
4. Minimize unnecessary material handling costs
5. Eliminate unnecessary movement of workers or
materials
6. Minimize production time or customer service time
7. Design for safety

6-15
 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

6-16
 The Need for Layout Decisions

Inefficient operations
For Example: Changes in the design
High Cost of products or services
Bottlenecks

Accidents
The introduction of new
products or services

Safety hazards

6-17
 The Need for Layout Design
(Cont’d)
Changes in
environmental Changes in volume of
or other legal output or mix of
requirements products

Morale problems
Changes in methods
and equipment

6-18
 Basic Layout Types

 Product layouts
 Process layouts
 Fixed-Position layout
 Combination layouts

6-19
 Basic Layout Types
 Product layout
 Layout that uses standardized processing
operations to achieve smooth, rapid, high-
volume flow
 Process layout
 Layout that can handle varied processing
requirements
 Fixed Position layout
 Layout in which the product or project
remains stationary, and workers, materials,
and equipment are moved as needed

6-20
 Product Layout

Raw Finished
Station Station
Station Station
Station Station
Station
materials 1 22 33 44 item
or customer
Material Material Material Material

and/or and/or and/or and/or

labor labor labor labor

Used for Repetitive or Continuous Processing

6-21
 A U-Shaped Product Line

In 1 2 3 4

Workers

Out 10 9 8 7

6-22
Advantages of Product Layout
 High rate of output
 Low unit cost
 Labor specialization
 Low material handling cost
 High utilization of labor and equipment
 Established routing and scheduling
 Routing accounting and purchasing

6-23
 Disadvantages of Product Layout

 Creates dull, repetitive jobs

 Poorly skilled workers may not maintain
equipment or quality of output
 Fairly inflexible to changes in volume
 Highly susceptible to shutdowns
 Needs preventive maintenance
 Individual incentive plans are
impractical

6-24
 Process Layout
Process Layout
(functional)

Dept. A Dept. C Dept. E

Dept. B Dept. D Dept. F

Used for Intermittent processing

Job Shop or Batch Processes

6-25
 Advantages of Process Layouts
 Can handle a variety of processing
requirements
 Not particularly vulnerable to equipment
failures
 Equipment used is less costly
 Possible to use individual incentive
plans

6-26
 Disadvantages of Process
Layouts
 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 and purchasing are more involved

6-27
 Fixed Position Layouts
 Fixed Position Layout: 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
 Large construction projects

6-28
 Cellular Layouts

 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

6-29
 Service Layouts
 Warehouse and storage layouts
 Retail layouts
 Office layouts
 Service layouts must be aesthetically
pleasing as well as functional

6-30
 Service Layouts
 Service layouts can often be categorized as
product, process, or fixed-position layouts.
 In a fixed-position service layout (e.g.,
appliance repair, roofing, home remodeling,
copier service), materials, labor, and
equipment are brought to the customer's
residence or office).

6-31
 Service Layouts
 Process layouts are common in services due
mainly to the high degree of variety in
customer processing requirements. Examples
include hospitals, supermarkets and
department stores, vehicle repair centers, and
banks.
 Product layout can be used if the service is
organized sequentially, with all customers or
work following the same or similar sequence,
as it is in a car wash.

6-32
 Service Layout Design
 Important factors in service layout design
include:
 Target customer and desired customer experience
 Customer attitude and image
 Frequency of orders
 High level of customer contact
 The mixture of the physical items, sensual benefits,
and psychological benefits.
 Interesting point: service layout design is
not generally focused on cost
minimization and product flow.
6-33
Design Product Layouts: Line
Balancing

Line Balancing is the process of assigning

tasks to workstations in such a way that
the workstations have approximately
equal time requirements.

Line Balancing is the task of deciding how

to assign work to specific workstations to
achieve maximum utilization of labor and
equipment
6-34
 Cycle Time

Cycle time is the maximum time

allowed at each workstation to
complete its set of tasks on a unit.

6-35
Determine Maximum Output

OT
OT
Output rate =
Output rate =
CT
CT

OT operating
OT operating time
timeper
per day
day

D
D== Desired
Desired output
output rate
rate

OT
OT
CT
CT==cycle
cycletime
time==
DD
6-36
 Cycle Time

• As a general rule, the Cycle Time is

determined by the desired output.
• A desired output rate is selected, and
the Cycle time is computed.

6-37
Determine the Minimum Number
of Workstations Required

(  t)
N=
CT

 t = sum of task time

6-38
 Precedence Diagram

Precedence diagram: Tool used in line balancing to

display elemental tasks and sequence requirements
0.1 min. 1.0 min.
A Simple Precedence
a b Diagram

c d e
0.7 min. 0.5 min. 0.2 min.

6-39
Example 1: Assembly Line Balancing

6-40
Example 1: Assembly Line Balancing

6-41
 Example 1 Solution

Revised
Time Assign Time Station
Workstatio Remaining Eligible Task Remaining Idle Time
n
1 1.0 a, c a 0.9
0.9 c, b c 0.2
0.2 none - 0.2
2 1.0 b b 0.0 0.0
3 1.0 d d 0.5
0.5 e e 0.3 0.3
0.3 - -
Total idle time = 0.2+0.0+0.3 = 0.5

6-42
Calculate Percent Idle Time &
Efficiency
I
dlet
imeperc
yc
le
P
er
cen
tid
le
tim
e=
(
N)(
CT)

Efficiency = 1 – Percent idle time

6-43
Example 2

6-44
 Example 2
1. Draw a precedence diagram

6-45
Example 2

6-46
Example 2

6-47
 Example 2

Station 1 Station 2 Station 3 Station 4

a b e
f g h
c d

6-48
Example 2

6-49
 Bottleneck Workstation

60/hr. 60/hr. 30/hr. 30/hr.

1 min. 1 min. 2 min. 1 min.

Bottleneck

6-50
 Parallel Workstations

30/hr. 2 min. 30/hr.

60/hr. 60/hr.
1 min. 1 min. 1 min.
30/hr.
2 min. 30/hr.

Parallel Workstations

6-51
 REVIEW QUESTIONS

 Define
 Process Selection, Facility, Layout, Product Layout, Process Layout,
Intermittent Process, Production Line, Assembly Line, Line Balancing,
Cycle Time, Minimum Cycle Time, Maximum Cycle Time, Precedence
Diagram.

 Differentiate
 Distinguish between process types.
 Maximum Cycle Time vs. Minimum Cycle Time
 Production Line vs. Assembly Line
 Distinguish between each layout type

6-52
 REVIEW QUESTIONS
 Written Questions
 How are volume, variety, and flexibility related to Process Selection?
 What are the major implications of Process Selection?
 Describe each layout type
 Advantages of each layout type
 Disadvantages of each layout type
 Describe service layout

 Math
 Line Balancing
 Example 1 & 2
 Solved Problem 1
 Practice Problem 1 to 8

6-53