DOM 102

Production Flows & Process Flow selection

OBJECTIVES

• Process Analysis

• Process Flowcharting

• Types of Processes

• Process Performance Metrics

 Process Analysis Terms
• Process: Is any part of an organization that
takes inputs and transforms them into outputs
• Cycle Time: Is the average successive time
between completions of successive units
• Utilization: Is the ratio of the time that a
resource is actually activated relative to the
time that it is available for use
Process Flowcharting
Defined
• Process flowcharting is the use of a diagram to
present the major elements of a process
• The basic elements can include tasks or
operations, flows of materials or customers,
decision points, and storage areas or queues
• It is an ideal methodology by which to begin
analyzing a process
 Other Process Terminology
• Blocking
– Occurs when the activities in a stage must stop because
there is no place to deposit the item just completed
– If there is no room for an employee to place a unit of work
down, the employee will hold on to it not able to continue
working on the next unit
• Starving
– Occurs when the activities in a stage must stop because
there is no work
– If an employee is waiting at a work station and no work is
coming to the employee to process, the employee will
remain idle until the next unit of work comes
 Other Process Terminology (Continued)
• Bottleneck
– Occurs when the limited capacity of a process
causes work to pile up or become unevenly
distributed in the flow of a process
– If an employee works too slow in a multi-stage
process, work will begin to pile up in front of that
employee. In this is case the employee represents
the limited capacity causing the bottleneck.
• Pacing
– Refers to the fixed timing of the movement of items
through the process
 Process Performance Metrics
• Operation time = Setup time + Run time

• Throughput time = Average time for a unit to

move through the system
Process Performance Metrics (Continued)

• Cycle time = Average time between

completion of units

• Throughput rate = 1 .
Cycle time

• Efficiency = Actual output

Standard Output
 Cycle Time Example

Suppose
Suppose you
you had
had to
to produce
produce 600600 units
units inin 80
80 hours
hours to
to
meet
meet the
the demand
demand requirements
requirements of of aa product.
product. What
What isis
the
the cycle
cycle time
time to
to meet
meet this
this demand
demand requirement?
requirement?

Answer:
Answer: There
There are
are 4,800
4,800 minutes
minutes (60(60
minutes/hour
minutes/hour xx 80
80 hours)
hours) in
in 80
80 hours.
hours. So So the
the
average
average time
time between
between completions
completions would
would have
have
to
to be:
be: Cycle
Cycle time
time == 4,800/600
4,800/600 units
units == 88 minutes.
minutes.
 Process Throughput Time Reduction
• Perform activities in parallel

• Change the sequence of activities

• Reduce interruptions
 Process Flow Structures
• The process flow consists of a series of steps
which determine how a product is manufactured
or a service provided.
• Process flow structure determines how facilities
will be laid out, the working methods used, the
resources needed, the technology used, and how
efficient the process is.
 Process Flow Structures
The generic process flow structure can be further
broken down into five distinct structures:
• Project structure, where a single project is
planned with a fixed end date, such as building a
house
• Job shop structure, where each flow will be
similar but slightly different, such as poster
printing
 Process Flow Structures
• A batch process, where each flow produces a
batch of identical products, such as baking
• An assembly line structure, where the flow
produces a continuous supply of fixed goods,
such as a car assembly line
• Continuous flow structure, where a continuous
supply of finished goods is produced, such as in
an oil
 Process Flow Structures
The main factors differentiating the different
process structures are:
• The flow – are there a large number of paths
which activities can take, or is there only one
possible sequence of activities.
• Flexibility – will changing the output of the
process, in terms of volume and products, alter
the performance and / or cost of the process
 Process Flow Structures
• Range of products – can the process produce lots
of different products, or is it designed to only
produce one one specific product.
• Capital investment – does the process require
investments in expensive specialist equipment or
can it use general equipment that the firm may
already own or can rent
• Variable costs – how high is the cost of
producing each unit
 Process Flow Structures
• Labour requirements – how much labour input is
required, and how skilled must the labourers be
• Volume – can the process produce lots of
products, or will it only create a few, or possibly
one, end product
 Process Flow Structures
• Labour requirements – how much labour input is
required, and how skilled must the labourers be
• Volume – can the process produce lots of
products, or will it only create a few, or possibly
one, end product
 Process Flow Structures
Each possible structure has distinct characteristics.

1.Job shop structure

• Flow – variable flow
• Flexibility – quite high
• Products – lots
• Capital investment – relatively low
 Process Flow Structures
• Variable cost – quite high
• Labor requirements – quite large numbers of skilled
labourers are usually required
• Volume – fairly low

• It is a flexible structure which involves several activities

that work can pass through in various sequences.
Indeed, most job shops will have different activities to be
performed on different products, and different products
can pass through the activities in different sequences
 Process Flow Structures
2. Batch process flow
• Flow – mostly consistent but some processes are
disconnected
• Flexibility – reasonable but quite restricted
• Products – a moderate range of products can be
produced
• Capital investment – some is often required in
machines for the main processes
 Process Flow Structures

• Variable cost – moderate when compared to

other processes
• Labour requirements – some skilled labour is
required, but some can be unskilled
• Volume – large batches produced, but overall
volume is not very high
 Process Flow Structures

• A batch process tends to involve a more

sequential flow of activities, where some
activities are consistent across all products.
• The process is so called because products are
produced in certain sized batches, with each
batch flowing through the structure as a whole
 Process Flow Structures

3.Assembly line process

• Flow – fixed sequence of connected processes
• Flexibility – low as the line is designed to work
at a certain speed
• Products – very few depending on the set up of
the line
• Capital investment – lots of machinery and
capital required
 Process Flow Structures

• Variable cost – low due to the specialised

process
• Labour requirements – mostly unskilled and few
workers required due to machines
• Volume – able to work at a very high volume
and efficiency
 Process Flow Structures

• An assembly line is a fixed sequence of

connected activities which each take place
according to a strict schedule and pacing.
• Greater efficiency and volume is obtained due to
the specialised nature of the line, which can only
make a few similar products, and the pacing
which can be calculated for maximum efficiency.
 Process Flow Structures

• Car manufacturing is one of the most well know

assembly line processes, with different sections
being added to the car as it moves down the
production line, and the end result being a set of
nearly identical cars, usually only differing in
colour.
 Process Flow Structures
4. Continuous flow process
• Flow – a continuous flow of a continuous
product
• Flexibility – almost no flexibility as the process
is set up to work at one speed
• Products – only one
• Capital investment – vast amounts needed for
very specialist machines
 Process Flow Structures

• Variable cost – usually very low due to the

specialist nature of the process
• Labour requirements – workers are generally
unskilled and low in number, but supervisors
often need to be skilled and experienced
• Volume - very high due to continuous production
 Process Flow Structures
• The continuous flow process is similar to the assembly
line as it has a fixed sequence and a set pace.
• The nature of the good produced means that it cannot be
processed in individual steps, and instead has to be
processed continuously, with production usually
measured by weight or volume.
• There is almost no flexibility in the process as there is
no way any work in progress can build up.
 Process Flow Structures

Process Selection
• The particular process selected for any operation will
depend on the type and amount of product to be
produced.
• For example, the construction of one vehicle would be
best done by using a project methodology, whilst the
construction of a large number would justify the
construction of an assembly line.
 Process Flow Structures
Process Selection
• In addition, the firm needs to consider how much capital it has
available to invest, and any economies of scale that it may
achieve in the production process.
• A firm also needs to consider what its marketing and business
strategy is, and how it can use its operations to develop a
competitive advantage. For example, a job shop process flow
will allow the firm to develop more individual products. In
contrast, the production line and continuous flow approaches
will allow companies to make products as cheaply as possible.
 Process Flow Structures
Process Selection
• In addition, the choice of process flow can depend on
what stage in the product life cycle the firm is at. For
example, when a product is first introduced a job shop
or batch process approach may be most relevant, in
order to respond to the changing levels of demand and
make any necessary design changes.
 Process Flow Structures
Process Selection
• In addition, at this stage it is difficult to construct an
assembly line for a product as it is impossible to predict
exactly what the total demand will be. However, as the
product moves towards maturity, so the profits and
volume increase may justify an assembly line or
continuous flow process.
 34

DOM 102 : Principles of Operations

management
Process Flows & Facilities Layout

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 35

Recall - Process Flow Structures

• Job shop – eg making one chair for an individual by a

furniture workshop

• Batch shop eg making many chairs for the university of

Nairobi by a furniture workshop

• Assembly Line - eg Automobile manufacturer, putting

parts together to make the finished product – GM

• Continuous Flow - eg Petroleum manufacturer – Kenya

Oil Refineries

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 36

Few High
Low Multiple Major Volume,
Volume, Products, Products, High
One of a Low Higher Standard-
Kind Volume Volume ization
I. Commercial Flexibility (High)
Job Printer Unit Cost (High)
Shop French Restaurant
These
Theseare
are
the
themajor
major
II. Heavy stages
stagesof
of
Batch Equipment product
productand
and
process
processlife
life
III. cycles
Automobile cycles
Assembly
Assembly
Line Burger King
IV.
Sugar
Continuous Refinery Flexibility (Low)
Flow Unit Cost (Low)

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 37

Facility Layout Defined

Facility layout can be defined as the process by

which the placement of departments,
workgroups within departments,
workstations, machines, and stock-holding
points within a facility are determined
Determined by the type of process flow chosen

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 38

Facilities Layout - Introduction

Importance of layout decns

• Require substantial investment of money &
effort
• Involve long-term commitments which
make mistakes difficult to overcome
• Have significant impact on cost &
efficiency of short-term operations

2
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Facilities Layout - Introduction

Facility layout studies are necessary whenever;

– A new facility is constructed
– There is significant change in demand or throughput volume
– A new good or service is introduced to the customer benefit
package
– Different processes, equipment and/or technology are
installed
– Morale issues
– Changes in environmental or legal issues
– Inefficient or bottleneck operations

2
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Facilities Layout - Introduction

Layout planning
– Centers to contain
– Space & Capacity for each centre
– Center space configuration
– Center location – interdepedence

2
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Purposes / Strategic Issues in Layout studies

 Facilitating material & info flow

 Efficient labor & equipment utilization
 Customer convenience & sales
 Reducing hazards to workers
 Improving employee morale & customer
satisfaction
 Maximizing flexibility, co-ordination, visibility
Minimizing distance, handling cost etc
 Creating inherent safety
 Provide for good house keeping and maintainance

2
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Layout Types

Choice depends on firms flow strategy

• Process layout consists of functional grouping
of equipment or activities that do similar work.
Its advantages;
– Ideal for low volumes of output
– Resources relatively general purpose & less capital intensive
– Less vulnerable to product mix changes
– Equipment utilization
– Employee supervision can be more specialized

2
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Layout Types - Process

Process layout – Disadvantages

– Processing rates slow
– Productive time lost
– More space & capital tied up in inventory
– Time lags between jobs – productivity
– Material handling costly
– Diversity in routings – variable path devices
– Pdtcn planning & control difficult
2
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Layout Types – Product

Line flow strategy for continuous production. Its an arrangement

based on the sequence of operations that are performed during the
manufacturing of a good or delivery of a service. It is ideal for high
volumes of production
Advantages
Processing rates high
Less Productive time lost
Lower inventories
Disadvantages
Risk of layout redesign for short product lives
Less flexibility
Low resource utilization for low volumes
Pdtcn planning & control difficult

2
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Layout Types – Hybrid

A mix of process & Product

 Used for fabrication & assembly
 Used in situations like flexible mfg systems
(FMS)
• Group Technology cell (GT)
• One Worker Multiple Machines (OWMM) cell

2
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Layout Types – Fixed position

o Consolidates the resources necessary to

manufacture a good or deliver a service, such as
people, materials and equipment in one physical
location. Product is fixed in one place
o Key consideration is sequence of material usage
& hence placement
o Used for massive product
Ship building
Building dams or bridges

2
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Performance Criteria facing planner

 Capital investment level

 Requirements for materials handling
 Ease of stock – picking
 Working environment & ‘atmosphere
 Ease of equipment maintenance
 Employee attitudes
 Amount of flexibility needed
 Customer convenience & sales level

2
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Office Layout

 Goal--maximize customer contact and

communication across sections
 Current trend – partial glass separators
between offices
 Issues
 Communication
 Work flow sequence
 Sharing of office equipment
 Fast throughput
Hot desking

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Retail Service Layout

 Goal--maximize net profit per square foot of

floor space
 Servicescapes – the physical surroundings in
which the service takes place & how the
surroundings affect customers & employees
 Ambient Conditions
 Spatial Layout and Functionality
 Signs, Symbols, and Artifacts

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Retail Service Layout

• Ambient Conditions – refers to background

characteristics such as the noise level, music,
lighting, temperature & scent
– Affect employee performance & morale as well as
customers perceptions of the service, how long
they stay, & how much money they spend
– Though primarily influenced by the design of the
building, the layout within a building can also
affect

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Retail Service Layout

• Spatial Layout and Functionality

Planning the circulation path of the

customers & grouping the merchandise
– Goal of circulation planning is to expose
customers to as much of the merchandise as
possible while placing any needed services along
the path

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Retail Service Layout

• Signs, symbols & artifacts – parts of the

service that have social significance
– Are a characteristic of the design of the
building although the orientation, location &
size of many objects can carry special meaning
– E.g person seated closest to entrance, car
salespeople having blackboards in their offices

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Retail Service Layout

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Retail Service Layout

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Retail Service Layout

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Marks of a good layout for manufacturing & back-office
operations

 Production time predictable

 Little inter-stage storage of materials
 Open plant floors so everyone can see what is happening
 Bottleneck operations under control
 Workstations close together
 Orderly handling & storage of materials
 No unnecessary re-handling of materials
 Easily adjustable to changing conditions
 Straight-line flow pattern or adaptation

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Marks of a good layout for face-to-face services

 Adequate waiting facilities

 Easy communication with customers
 Easily maintained customer surveillance
 Easily understood service flow pattern
 Clear exit & entry points with adequate checkout
facilities
 Depts & processes arranged so that customers see
only what you want them to see
 Balance between waiting areas & service areas
 Minimum walking & material movement
 Lack of clutter
 High sales volume per square foot of facility

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 58

Read & MAKE NOTES ON Workplace design

– Issues to consider in design of individual

workstation
– Ergonomics in workplace design
– Safety in workplace design
– Virtual workplace

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