KR Ch8E

Process Layout
Chapter 8
L L M M D D D D
L A A A A
G G
G G
2007 Pearson Education
How Process Layout fits the Operations Management Philosophy
Operations As a Competitive Weapon Operations Strategy Project Management
Process Strategy Process Analysis Process Performance and Quality Constraint Management Process Layout Lean Systems
Supply Chain Strategy Location Inventory Management Forecasting Sales and Operations Planning Resource Planning Scheduling
Layout Planning
Layout planning is planning that involves decisions about the physical arrangement of economic activity centers needed by a facilitys various processes.
Layout plans translate the broader decisions about the competitive priorities, process strategy, quality, and capacity of its processes into actual physical arrangements.
Economic activity center: Anything that consumes space -- a person or a group of people, a customer reception area, a teller window, a machine, a workstation, a department, an aisle, or a storage room.
Layout Planning Questions

Before a manager can make decisions regarding physical arrangement, four questions must be addressed. 1. What centers should the layout include? 2. How much space and capacity does each center need? 3. How should each centers space be configured? 4. Where should each center be located?
Strategic Issues
Impact and Implications
Layout choices can help communicate an organizations product plans and competitive priorities. Altering a layout can affect an organization and how well it meets its competitive priorities in the following ways:
1. 2. 3. 4. 5. 6. Increasing customer satisfaction and sales at a retail store. Facilitating the flow of materials and information. Increasing the efficient utilization of labor and equipment. Reducing hazards to workers. Improving employee morale. Improving communication.
Types of Layouts
Flexible-flow (process) layout: A layout that organizes resources (employees) and equipment by function rather than by service or product. Line-flow (product) layout: A layout in which workstations or departments are arranged in a linear path. Hybrid layout: An arrangement in which some portions of the facility have a flexible-flow and others have a line-flow layout. Fixed-position layout: An arrangement in which service or manufacturing site is fixed in place; employees along with their equipment, come to the site to do their work.
A Flexible Flow Layout

A job shop has a flexible-flow layout.
Grinding
Forging
Lathes
Painting
Welding
Drills
Office
Milling machines
Foundry
Line Flow Layout
A production line has a line-flow layout.
Station 1
Station 2
Station 3
Station 4
Comparison Of Product And Process Layouts

1. Description PRODUCT LAYOUT Sequential arrangement of machines PROCESS LAYOUT Functional grouping of machines
2. Type of Process
Continuous, mass production, mainly assembly

Standardized made to stock Stable High Special purpose Limited skills
Intermittent, job shop batch production, mainly fabrication

Varied, made to order Fluctuating Low General purpose Varied skills
3. Product
4. 5. 6. 7.
Demand Volume Equipment Workers
2007 Pearson Education 2000 by Prentice-Hall Inc

Russell/Taylor Oper Mgt 3/e
Ch 7 - 9
Comparison Of Product And Process Layouts

8. Inventory 9. Storage space 10. Material handling 11. Aisles 12. Scheduling 13. Layout decision 14. Goal 15. Advantage PRODUCT LAYOUT Low in-process, high finished goods Small Fixed path (conveyor) Narrow Part of balancing Line balancing Equalize work at each station Efficiency PROCESS LAYOUT High in-process, low finished goods Large Variable path (forklift) Wide Dynamic Machine location Minimize material handling cost Flexibility

Ch 7 - 10
Performance Criteria
Customer satisfaction Level of capital investment Requirements for materials handling Ease of stockpicking Work environment and atmosphere Ease of equipment maintenance Employee and internal customer attitudes Amount of flexibility needed Customer convenience and levels of sales
Creating Hybrid Layouts

Layout flexibility is the property of a facility to remain desirable after significant changes occur or to be easily and inexpensively adopted in response to changes. A One-worker, multiple-machines (OWMM) cell is a one-person cell in which a worker operates several different machines simultaneously to achieve a line flow. A Cell is two or more dissimilar workstations located close together through which a limited number of parts or models are processed with line flows.
One Worker, Multiple Machines

Machine 2 Machine 1 Machine 3
Materials in
Finished goods out Machine 4
Machine 5
Group Technology (GT)

Group Technology (GT) is an option for achieving line-flow layouts with low-volume processes; this technique creates cells not limited to just one worker and has a unique way of selecting work to be done by the cell. The GT method groups parts or products with similar characteristics into families and sets aside groups of machines for their production.
Before Group Technology

Jumbled flows in a job shop without GT cells
Lathing Milling Drilling
M Grinding
Assembly A A A
Receiving and shipping

Applied Group Technology

Line flows in a job shop with three GT cells
L Cell 1
M Cell 2 M
G
A
Assembly area
A
Receiving
L Cell 3
Shipping
Classification and Coding System
Source: Organization for Industrial Research Inc.

Original Process Layout

Assembly
5 2 10
8 12
11
A
Raw materials
Ch 7 - 34
Cellular Layout Solution

Assembly
10
12 11
Cell1
Cell 2
Cell 3 7
2 Raw materials
1 A
3 C B
Ch 7 - 37
Warehouse Layouts
Out-and-back Pattern
The most basic warehouse layout is the out-and-back pattern. The numbers indicate storage areas for same or similar items.
Storage area
3
Dock
6
Aisle
Storage area
Warehouse Layouts
Zone System
Zones Zones Control station Shipping doors
Click to add title
Tractor trailer
Tractor trailer Feeder lines

Feeder lines
Overflow
Office Layouts
Most formal procedures for designing office layouts try to maximize the proximity of workers whose jobs require frequent interaction. Privacy is another key factor in office design. Four common office layouts:
1. Traditional layouts
2. Office landscaping (cubicles/movable partitions) 3. Activity settings
4. Electronic cottages (Telecommuting)

Designing Line-Flow Layouts

Line balancing is the assignment of work to stations in a line so as to achieve the desired output rate with the smallest number of workstations. Work elements are the smallest units of work that can be performed independently. Immediate predecessors are work elements that must be done before the next element can begin. Precedence diagram allows one to visualize immediate predecessors better; work elements are denoted by circles, with the time required to perform the work shown below each circle.
Line Balancing
Example 8.3
Green Grass, Inc., a manufacturer of lawn & garden equipment, is designing an assembly line to produce a new fertilizer spreader, the Big Broadcaster. Using the following information, construct a precedence diagram for the Big Broadcaster.
Work Element A B C D E F G H I Total
Time Immediate Description (sec) Predecessor(s) Bolt leg frame to hopper 40 None Insert impeller shaft 30 A Attach axle 50 A Attach agitator 40 B Attach drive wheel 6 B Attach free wheel 25 C Mount lower post 15 C Attach controls 20 D, E Mount nameplate 18 F, G 244
Line Balancing
Green Grass, Inc.
D
B 30 H 20 E
40 6
A 40 C 50
F 25 I G 18
15
Desired Output and Cycle Time

Desired output rate, r must be matched to the staffing or production plan.
Cycle time, c is the maximum time allowed for work on a unit at each station: 1 c= r
Theoretical Minimum
Theoretical minimum (TM ) is a benchmark or goal for the smallest number of stations possible, where total time required to assemble each unit (the sum of all work-element standard times) is divided by the cycle time. It must be rounded up Idle time is the total unproductive time for all stations in the assembly of each unit. Efficiency (%) is the ratio of productive time to total time.
Balance Delay is the amount by which efficiency falls short of 100%.

Output Rate and Cycle Time

Example 8.4
Green Grass, Inc.
Desired output rate, r = 2400/week Plant operates 40 hours/week r = 2400/40 = 60 units/hour Cycle time, c = 1/60 = 1 minute/unit = 60 seconds/unit
1 r
Calculations for
Example 8.4 continued
Theoretical minimum (TM ) - sum of all work-element standard times divided by the cycle time.
TM = 244 seconds/60 seconds = 4.067 It must be rounded up to 5 stations

Cycle time: c = 1/60 = 1 minute/unit = 60 seconds/unit
Efficiency (%) - ratio of productive time to total time.

Efficiency = [244/5(60)]100 = 81.3% Balance Delay - amount by which efficiency falls short of 100%.
(100 81.3) = 18.7%

The goal is to cluster the work elements into 5 workstations so that the number of work-stations is minimized, and the cycle time of 60 seconds is not violated. Here we use the trial-and-error method to find a solution, although commercial software packages are also available.
Green Grass, Inc.

Line Balancing Solution
D
B
H 20 E
40 6
S5
S1 A 40
c = 60 seconds/unit TM = 5 stations Efficiency = 81.3%
30 S3 S2 C 50 F 25
S4
I G 15 18
Other Considerations
In addition to balancing a line, managers must also consider four other options: 1. Pacing: The movement of product from one station to the next as soon as the cycle time has elapsed. 2. Behavioral factors of workers. 3. Number of models produced: A mixed-model line produces several items belonging to the same family. 4. Cycle times depend on the desired output rate, and efficiency varies considerably with the cycle time selected. Thus exploring a range of cycle times makes sense.

KR Ch8E

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KR Ch8E

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Process Layout

2007 Pearson Education

How Process Layout fits the Operations Management Philosophy

Operations As a Competitive Weapon Operations Strategy Project Management

2007 Pearson Education

Layout Planning Questions

2007 Pearson Education

A Flexible Flow Layout

Line Flow Layout

A production line has a line-flow layout.

2007 Pearson Education

Comparison Of Product And Process Layouts

Continuous, mass production, mainly assembly

Intermittent, job shop batch production, mainly fabrication

Demand Volume Equipment Workers

2007 Pearson Education 2000 by Prentice-Hall Inc

Comparison Of Product And Process Layouts

2007 Pearson Education 2000 by Prentice-Hall Inc

2007 Pearson Education

Creating Hybrid Layouts

One Worker, Multiple Machines

Finished goods out Machine 4

2007 Pearson Education

Group Technology (GT)

Before Group Technology

Receiving and shipping

Applied Group Technology

2007 Pearson Education

Classification and Coding System

Source: Organization for Industrial Research Inc.

Original Process Layout

Cellular Layout Solution

Click to add title

Tractor trailer Feeder lines

4. Electronic cottages (Telecommuting)

Designing Line-Flow Layouts

2007 Pearson Education

Work Element A B C D E F G H I Total

2007 Pearson Education

Desired Output and Cycle Time

2007 Pearson Education

Balance Delay is the amount by which efficiency falls short of 100%.

Output Rate and Cycle Time

2007 Pearson Education

TM = 244 seconds/60 seconds = 4.067 It must be rounded up to 5 stations

Efficiency (%) - ratio of productive time to total time.

(100 81.3) = 18.7%

Green Grass, Inc.

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