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DLSU_PROCESS_SELECTION_AND_FACILITY_LAYOUT_EDITED__1___1_

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