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Operations Management Overview

• Title: Operations Management: Process Selection and Facility Layout

• Author: Dr. Juanito C. Revaula

Chapter 6: Learning Objectives

• Understand key concepts in:

  • Process Selection

  • Types of Processing

  • Automation in process selection

  • Layout Design Objectives

  • Layout Types

  • Line Balancing

  • Process Layout Problem

Process Selection

• Definition:

  • Deciding the organization of production for goods or services.

• Key Aspects:

  • Inputs, Processes, Outputs

  • Involves Facilities, Forecasting, Capacity Planning, Equipment, Product and Service Design, Work System Design, Technological Selection, and Changes.

Process Strategy

• Two Key Aspects:

  • Capital Intensity:

    • The mix of labor and equipment used.

  • Process Flexibility:

    • Adjustability to changes like product/service design and technology.

Questions in Process Selection

• Variety Handling:

  • How much variety will the process handle?

• Volume Handling:

  • How much volume will the process handle?

• Types of Processes:

  • Job Shop, Batch, Repetitive, Continuous

Types of Processing

Job Shop

• Description: Customized goods/services

• Advantages: Handles a wide variety of work

• Disadvantages: Slow, high cost per unit, complex planning

Batch

• Description: Semi-standardized goods/services

• Advantages: Flexible, easy product changes

• Disadvantages: Moderate cost per unit, moderate scheduling complexity

Repetitive/Assembly

• Description: Standardized goods/services

• Advantages: Low unit cost, high volume

• Disadvantages: Low flexibility, high cost of downtime

Continuous

• Description: Highly standardized goods/services

• Advantages: Very efficient, high volume

• Disadvantages: Rigid, costly changes

Sustainable Production

• Definition:

  • Process of creating goods/services that are non-polluting, conserve resources, economically efficient, safe, and rewarding.

• Reference: Lowell Center for Sustainable Production

Managing Technology

• Impact on:

  • Costs, Productivity, Competitiveness

• Definitions:

  • Process Technology: Methods and procedures for production.

  • Information Technology: Use of computers for data processing.

Automation in Process Selection

• Definition: Machinery with sensing/control devices for automatic operation.

• Types:

  • Fixed Automation, Programmable Automation, Flexible Automation

Programmable Automation

• Involves high-cost, general-purpose equipment controlled by computer programs.

• Examples:

  • Computer-Aided Manufacturing (CAM)

  • Numerically Controlled (N/C) Machines

  • Robots

Facilities Layout

• Definition: Configuration of departments and equipment with an emphasis on workflow (customers/materials).

• Importance:

  • Significant investments, long-term commitment, impacts cost/efficiency.

Need for Layout Planning

• Reasons include:

  • Inefficient operations

  • Safety hazards

  • Changes in product designs

  • New products/services introduction

  • Volume changes

  • Method/equipment changes

  • Legal requirement changes

  • Morale issues

Layout Design Objectives

• Overall Objective:

  • Ensure smooth flow of work, materials, and information.

• Supporting Objectives:

  1. Facilitate quality

  2. Efficient use of workers/space

  3. Avoid bottlenecks

  4. Minimize handling costs

  5. Eliminate unnecessary movement

  6. Minimize production/customer service time

  7. Safety in design

Basic Layout Types

1. Product Layout

2. Process Layout

3. Fixed-Position Layout

4. Combination or Mixed Layouts

Repetitive Processing: Product Layouts

• Description: Standardized processing operations for high-volume flow.

Product Layout

• Flow Example:

  • Raw materials/customers move through stations leading to finished products.

Disadvantages of Product Layout

• Creates dull jobs, difficult maintenance, inflexible, high downtime costs

Non-repetitive Processing: Process Layouts

• Handles varied processing needs, suited for Job Shop or Batch processes.

Process Layout Advantages

• Handles variety, lower equipment costs, fewer vulnerabilities to equipment failures.

Fixed Position Layouts

• Definition: Product remains stationary; movement of workers/materials occurs.

• Examples: Large construction, shipbuilding, aircraft manufacturing

Combination or Mixed Layouts

• Utilized in diverse operational environments (e.g., hospitals, supermarkets)

Cellular Layouts

• Workstations grouped to process similar items, minimizing waste

Service Layouts

• Categorized as product, process, or fixed position with factors influencing layout include customer contact and customization.

Line Balancing

• Definition: Assigning tasks to minimize idle time across stations.

• Goal: Efficient use of labor/equipment, equitable workload.

Cycle Time

• Maximum time allowed at each workstation per unit.

  • Formula: Cycle time = Operating time per day / Desired output rate

Required Number of Workstations

• Function of desired output rate and ability to combine tasks.

• Theoretical Minimum Stations: N_min = Σt / Cycle time

Precedence Diagram

• Diagram illustrating tasks and their precedence requirements for effective assignment.

Example Analysis

• Manager's Goals: Efficient task assignments for a target output. Steps include determining minutes allocated to each workstation based on output goals.

Efficiency Calculation

• Formula: Efficiency = 100% - Percent idle time

• Practical application of idle time to understand efficiency in production.

Reference

• Stevenson, W. (2021) Operations Management, McGraw Hill