Chapter 6

Process Design
and
Facility Layout
1
 Introduction

e or Buy?
ailable capacity, excess capacity
pertise, knowledge, know-how exists?
uality Consideration, specialized firms, control o
r quality if in-house
e nature of demand, aggregation
ost
me components buy remaining
2
 Introduction

• Process selection
– Deciding on the way production of go
ods or services will be organized
• Major implications
– Capacity planning
– Layout of facilities
– Equipment, Capital-equipment or la
bor intensive
– Design of work systems
• New product and service, technol
ogical changes, and competitive p
ressures 3
Process Selection and System Design

Facilities and
Forecasting Capacity Equipment
Planning

Product and Layout

Service Design

Process
Technological Selection Work
Change Design

Figure 6.1
4
 Process Types

• Job Shops: Small lots, low volume, general equipment, s

killed workers, high-variety. Ex: tool and die shop, veterin
arian’s office
• Batch Processing: Moderate volume and variety. Variety
among batches but not inside. Ex:paint production , BA3
352 sections
• Repetitive/Assembly: Semicontinuous, high volume of st
andardized items, limited variety. Ex: auto plants, cafeteri
a
• Continuous Processing: Very high volume an no variety.
Ex: steel mill, chemical plants
• Projects: Nonroutine jobs. Ex: preparing BA3352 midter
m 5
Questions Before Selecting A Process

• Variety of products
and services
– How much
• Flexibility of the process; volume, mix
, technology and design
– What type and degree Batch
• Volume
– Expected output
Job Shop Continuous

Repetitive
6
 Product – Process Matrix

Dimension Job Shop Batch Repetitive Continuous

Job variety Very High Moderate Low Very low
Process Very High Moderate Low Very low
flexibility

Unit cost Very High Moderate Low Very low

Volume of Very low Low High Very high
output

7
 Variety, Flexibility, & Volume

Product
Product High Moderate Low Very
High Moderate Low VeryLow
Low
Variety
Variety
Equipment
Equipment High Moderate Low Very
High Moderate Low VeryLow
Low
flexibility
flexibility
Low
Low Job
Shop
Volume
Volume
Moderate
Moderate Batch
Volume
Volume
High
High Repetitive
assembly
Volume
Volume
Very
Veryhigh
high Continuous
Flow
Volume
Volume
8
 Product – Process Matrix

Process Type High variety Low variety

Job Shop Appliance
repair
Emergency
room
Batch Commercial
bakery
Classroom
Lecture
Repetitive Automotive
assembly
Automatic
carwash
Continuous Oil refinery
Water purification
(flow)

9
 Product-Process Matrix
Few High
Low Multiple Major Volume,
Volume Products, Products, High
One of a Low Higher Standard-
Kind Volume Volume ization
Flexibility-
Job Book
Quality
Shop Writing

Batch Movie
Theaters

Assembly Automobile
Line Assembly

Continuous Sugar
Flow Refinery Dependability-
Cost
Flexibility-Quality Dependability-Cost

10
Automation: Machinery that has sensing and control de
vices that enables it to operate

Fixed automation: Low production cost and high volume but wit
h minimal variety and high changes cost
– Assembly line
Programmable automation: Economically producing a wide vari
ety of low volume products in small batches
– Computer-aided design and manufacturing systems (CAD/CAM)
– Numerically controlled (NC) machines / CNC
– Industrial robots (arms)
Flexible automation: Require less changeover time and allow co
ntinuous operation of equipment and product variety
– Manufacturing cell
– Flexible manufacturing systems: Use of high automation to achieve re
petitive process efficiency with job shop process
• Automated retrieval and storage
• Automated guided vehicles
– Computer-integrated manufacturing (CIM)
11
Robot

Show wafer_handler_web

12
 Flexible Manufacturing System
• Group of machines that include supervisory computer con
trol, automatic material handling, robots and other proces
sing equipment
– Advantage:
reduce labor costs and more consistent quality
lower capital investment and higher flexibility than
hard automation
relative quick changeover time
– Disadvantage
used for a family of products and require longer pla
nning and development times

13
 Computer-integrated manufacturing
• Use integrating computer system to link a broad ran
ge of manufacturing activities, including engineering
design, purchasing, order processing and productio
n planning and control
• Advantage:
rapid response to customer order and product chang
e, reduce direct labor cost, high quality

14
 Service Blueprint

• Service blueprint: A method used in service

design to describe and analyze a proposed
service. Flowchart:

Begin Turn on laptop Connect to LCD A

Yes
A View on Lecture

No
Begin
15
 Service Process Design

• Establish boundaries
• Identify steps involved
• Prepare a flowchart
• Identify potential failure points
• Establish a time frame for operations
• Analyze profitability

16
 Layout

• Layout: the configuration of departments, work c

enters, and equipment,
– Whose design involves particular emphasis on movem
ent of work (customers or materials) through the syste
m
• Importance of layout
– Requires substantial investments of money and effort
– Involves long-term commitments
– Has significant impact on cost and efficiency of short-t
erm operations

17
 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
18
 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

19
 Basic Layout Types

• Product Layout
– Layout that uses standardized processing operations t
o achieve smooth, rapid, high-volume flow
• Auto plants, cafeterias
• Process Layout
– Layout that can handle varied processing requirements
• Tool and die shops, university departments
• Fixed Position Layout
– Layout in which the product or project remains stationa
ry, and workers, materials, and equipment are moved a
s needed
• Building projects, disabled patients at hospitals
• Combination Layouts
20
 A Flow Line for Production or Service

Flow Shop or Assembly Line Work Flow

Raw materia Station Station Station Station Finished

ls 1 2 3 4 item
or customer
Material Material Material Material

and/or la and/or la and/or la and/or la

bor bor bor bor

21
 A U-Shaped Production Line

Advantage: more compact, increased communication fa

cilitating team work, minimize the material handling
22
 Process Layout

Process Layout
(functional)
Dept. A Dept. C Dept. E

Dept. B Dept. D Dept. F

Used for Intermittent processing

23
 Process Layout

Milling

Assembly
Grinding
& Test

Drilling Plating
Process Layout - work travels
to dedicated process centers

24
Layout types: Product or Process Make your pick

25
 Process vs Layout types
• Job Shop • Product

• Project Match? • Process

• Repetitive • Fixed-point

26
 Product layout
Advantages Disadvantages
– High volume – Lacks flexibility
– Low unit cost • Volume, design, mix
– Low labor skill needed – Boring for labor
– Low material handling • Low motivation
– High efficiency and utili • Low worker enrichment
zation – Can not accommodate
– Simple routing and sch partial shut downs/bre
eduling akdowns
– Simple to track and co
– Individual incentive pla
ntrol
ns are not possible

27
 Cellular Layouts

• Cellular Manufacturing
– Layout in which machines are grouped into a cell that ca
n process items that have similar processing requireme
nts. A product layout is visible inside each cell.
• Group Technology
– The grouping into part families of items with similar desi
gn or manufacturing characteristics. Each cell is assigne
d a family for production. This limits the production varia
bility inside cells, hence allowing for a product layout.

28
A Group of Parts

Similar manufacturing characters

29
 Process vs. Cellular Layouts

Dimension Process Cellular

Number of moves many few
between departments
Travel distances longer shorter
Travel paths variable fixed
Job waiting times greater shorter
Amount of work in higher lower
process
Supervision difficulty higher lower
Scheduling complexity higher lower
Equipment utilization Lower? Higher?

30
 Process Layout

222 222 222

111 Drill Grind
Mill

22
444 3333

222
444

1111 2222 Assembly

33
33

44
111 333
33

44
333
33

4
111

333
3

111
Heat 111 Gear
333 Lathes
treat cutting 444

31
 Cellular Manufacturing Layout

Heat Gear
-1111 Lathe Mill Drill -1111
treat cut

Heat
Mill Drill Grind - 2222

Assembly
222222222 treat

Heat
3333333333 Lathe Mill Grind - 3333
treat

44444444444444 Mill Drill Gear - 4444

cut

32
 Basic Layout Formats

• Group Technology Layout

Similar to cellular layout

• Fixed Position Layout

– e.g. Shipbuilding

Part Family W Part Family X Part Family Z

Assemble Y,W Assemble X,Z

Part Family Y

Final Product

33
 Fixed-Position and combination Layout

• Fixed-Position Layout:
item being worked on remains stationary, a
nd workers, materials and equipment are m
oved as needed.
Example: buildings, dams, power plants
• Combination Layouts:
combination of three pure types.
Example: hospital: process and fixed position.

34
 Service Layouts

• Warehouse and storage layouts

Issue: Frequency of orders
• Retail layouts
Issue: Traffic patterns and traffic flows
• Office layouts
Issue: Information transfer, openness

35
 Design Product Layouts: Line Balancing

Line balancing is the process of assigning tasks to workstations

in such a way that the workstations have approximately the same
processing time requirements. This results in the minimized idle time
along the line and high utilization of labor and equipment.
4 tasks 2 tasks

Worker 1 Worker 2

Each task takes 1 minutes, how to balance?

Cycle time is the maximum time allowed at each workstation

to complete its set of tasks on a single unit
What is the cycle time for the system above?
36
 Parallel Workstations

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

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

Bottleneck

30/hr. 2 min. 30/hr.

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

Parallel Workstations

37
 The obstacle
• The difficulty to forming task bundles that have the
same duration.
• The difference among the elemental task lengths ca
n not be overcome by grouping task.
– Ex: Can you split the tasks with task times {1,2,3,4} into t
wo groups such that total task time in each group is the s
ame?
– Ex: Try the above question with {1,2,2,4}
• A required technological sequence prohibit the desir
able task combinations
– Ex: Let the task times be {1,2,3,4} but suppose that the ta
sk with time 1 can only done after the task with time 4 is c
ompleted. Moreover task with time 3 can only done after
the task with time 2 is completed. How to group?
38
 Cycle Time

The major determinant: cycle time

Cycle time is the maximum time allowed at each

workstation to complete its tasks on a unit.

Minimum cycle time: longest task time by assig

ning each task to a workstation
Maximum cycle time: sum of the task time by a
ssigning all tasks to a workstation
39
 Determine Maximum Output
Cycle Time: Time to process 1 unit
OT: OperatingTimePerDay
D: DesiredOutputRate
OT
 DesiredCycleTime
D
CT CycleTime  FromProcessDesign
OT
CT Can produce at the desired level, design is feasible
D
OT
 CT Cannot produce at the desired level, design is infeasible
D

Example: If a student can answer a multiple choice question in 2 minutes but gets a te
st with 30 questions and is given only 30 minutes then
OT=30 minutes; D=30
Desired cycle time=1 minute < 2 minutes = Cycle time from the process capability
40
 Determine the Minimum Number
of Workstations Required: Efficiency
Example: Students can answer a multiple choice question in 2 minutes but given a tes
t with 30 questions and is given only 30 minutes. What is the minimum number of stu
dents to collaborate to answer all the questions in the exam?
Total operation (task) time = 60 minutes = 30 x 2 minutes
Operating time=30 minutes
60/3=2 students must collaborate. This Nmin below.

Total task time for all products produced in a day (D)( t)

N min = 
Availabale time in a day OT

N min 
 t

Total task time for a product  t

OT/D Availabale time for a product CT

 t = sum of task times

41
 Percent Idle Time

I
dlet
imeperc
yc
le
P
er
cen
ti
d l
e t
ime=
(
N)(
CT)

Efficiency = 1 – Percent idle time

42
 Example 1: Precedence Diagram

Precedence diagram: Tool used in line balancin

g to display elemental tasks and sequence requi
rements
0.1 min. 1.0 min.

a b

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

43
 Example 1: Assembly Line Balancing

• Arrange tasks shown in the previous slide in

to workstations.
– Use a cycle time of 1.0 minute
• Every 1 minute, 1 unit must be completed
– Rule: Assign tasks in order of the most number
of followers
• If you are to choose between a and c, choose a
• If you are to choose between b and d, choose b
• Number of followers: a:3, b:2, c:2, d:1, e:0
– Eligible task fits into the remaining time and all o
f its predecessors are assigned.
44
 Solution to Example 1.
Assigning operations by the number of followers

Work-
Work- Time
Time Assign
Assign Station
Station
Station
Station Remaining
Remaining Eligible
Eligible Task
Task Idle
IdleTime
Time
11 1.0
1.0 a,c
a,c aa
.9
.9 cc cc
.2
.2 none
none -- .2
.2
22 1.0
1.0 bb bb
00 none
none -- 00
33 1.0
1.0 dd dd
.5
.5 ee ee
.3
.3 -- -- .3
.3
.5
.5

- Eligible operation fits into the remaining time and its predecessors are already assigned.
- What is the minimum cycle time possible for this example?
45
 Calculate Percent Idle Time

Sum of idle times at stations during a cycle

Percent idle time =
(N)(CT) Total station ti me

0.2  0  0.3
Percent idle time = 0.167 16.7%
(3)(1)

Efficiency=1-percent idle time=1-0.167=0.833=83.3%

46
 Line Balancing Heuristic Rules

• Assign tasks in order of most following task

s.
• Assign task in the order of the greatest task
time.
• Assign tasks in order of greatest positional
weight.
– Positional weight is the sum of each task’s
time and the times of all following tasks.
47
Solution to Example 1. Assigning operations usin
g their task times.

Work-
Work- Time
Time Assign
Assign Station
Station
Station
Station Remaining
Remaining Eligible
Eligible Task
Task Idle
IdleTime
Time
11 1.0
1.0 a,c
a,c cc
.9
.9 aa aa
.2
.2 none
none -- .2
.2
22 1.0
1.0 bb bb
00 none
none -- 00
33 1.0
1.0 dd dd
.5
.5 ee ee
.3
.3 -- -- .3
.3
.5
.5

Eligible operation fits into the remaining time and its predecessors are already assigned.
48
 Positional Weights

Assign tasks in order of greatest positional weight.

– Positional weight is the sum of each task’s time

and the times of all following tasks.
– a:1.8 mins; b: 1.7 mins; c:1.4 mins; d: 0.7 mins;
e:0.2 mins.

49
Solution to Example 1. Assigning operations usin
g their task times.

Work-
Work- Time
Time Assign
Assign Station
Station
Station
Station Remaining
Remaining Eligible
Eligible Task
Task Idle
IdleTime
Time
11 1.0
1.0 a,c
a,c aa
.9
.9 cc cc
.2
.2 none
none -- .2
.2
22 1.0
1.0 bb bb
00 none
none -- 00
33 1.0
1.0 dd dd
.5
.5 ee ee
.3
.3 -- -- .3
.3
.5
.5

Eligible operation fits into the remaining time and its predecessors are already assigned.
50
 Example 2

0.2 0.2 0.3

a b e

0.8 0.6
c d f g h
1.0 0.4 0.3

51
 Solution to Example 2

Station 1 Station 2 Station 3 Station 4

a b e
f g h
c d

52
 Designing Process Layouts

• Requirements:
– List of departments
• Shape requirements
– Projection of work flows
• One way vs. two way: Packaging and final asse
mbly.
– Distance between locations
• One way vs. two way: Conveyors, Elevators.
– Amount of money to be invested
– List of special considerations
• Technical, Environmental requirements

53
 Example 3:
Locate 3 departments to 3 sites
• Distances: From\To A B C
A - 20 40
in meters
B 20 - 30
C 40 30 -

• Work Flow: From\To 1 2 3

1 - 10 80
in kilos
2 20 - 30
3 90 70 -

54
 Example 3
• Mutual flow: From\To 1 2 3
1 - - -
2 30 - -
3 170 100 -

• Closeness graph:

1 2

55
 Designing Process Layouts

• Create Layout Alternatives

• Find the one which minimizes transportatio
n costs and distance traveled

56
 Example 3: Layout Alternative 1

30

170 100
1 3 2

A B C
Total Distance Traveled by Material=7600 m

57
 Example 3: Layout Alternative 2

170

30 100
1 2 3

A B C
Total Distance Traveled by Material=10400 m

58
Closeness Rating: multiple criteria

59
 Muther Grid
• Allow multiple objectives and subjective i
nput from analysis or manager to indicat
e the relative importance of each combin
ation of department pairs.
• Subjective inputs are imprecise and unre
liable

60
 Example 4

• Heuristic: assign critical departments first. The cri

tical departments are those with X and A ratings.
• Solution:
As Xs
1-2 1-4
1-3 3-6
2-6 3-4
3-5
4-6
5-6 61
 Example 4
• Begin with most frequently in the A list (6)
• Add remaining As to the main cluster
• Graphically portray Xs
• Fit the cluster into the arrangement
2 4
6
1
5
3
1 2 6
3 5 4
62
 Summary

• Process Selection
Objective, Implication, types
• Product Layout
Line balancing: procedures and measures
• Process layout
Information requirements, measures
From to chart and Muther grid

63
 An example for Recitation
Tasks times and predecessors for an operation
Task label Time Predecessors
A 2 None C
B 7 A E
C 5 None D
D 2 None
F
E 15 C,D
F 7 A,E A B
G 6 None H N
H 4 B,G G I
I 9 A
J 10 None
K 4 None
J
L 8 J,K L M
M 6 A,L K
N 15 F,H,I,M 64
 Recitation example
• Find a workstation assignment by taking cy
cle time=17 minutes by assigning in the or
der of the greatest task time.
• Can you find an assignment that uses only
six stations and meets 17 minute cycle tim
e requirement.
• See the solution in the next recitation.

65
 Solution 1: Greatest task time first

Time Idle
A 2 None Station remaining Eligible Assign Time
B 7 A 1 17 C,D,A,G,J,K J
C 5 None 7 C,D,A,G,K G 1
D 2 None 2 17 C,D,A,K C

E 15 C,D 12 D,A,K K
8 D,A,L L 0
F 7 A,E
3 17 D,A A
G 6 None
15 D,B,I,M I
H 4 B,G
6 D,B,M M 0
I 9 A
4 17 D,B B
J 10 None 10 D,H H
K 4 None 6 D D 4
L 8 J,K 5 17 E E 2
M 6 A,L 6 17 F F 10
N 15 F,H,I,M 7 17 N N 2
66
 Solution 2: A heuristic

• Workstation Assignment that uses only six stations

and meets 17 minute cycle time requirement

STATION NO OPERATIONS STATION TIME

1 C,D,G,K 17
2 E,A 17
3 J,B 17
4 L,I 17
5 F,H,M 17
6 N 15

67
Solution 3: Greatest positional weight first

SUCCESSORS'
OPERATION TASK TIME TASK TIME
C 42 5
D 39 2
J 39 10
E 37 15
STATION STATION
K 33 4 NO OPERATIONS TIME
L 29 8 1 C,D,J 17
A 28 2 2 E,A 17
B 26 7 3 K,L 12
G 25 6 4 B,G,H 17
I 24 9 5 I,F 16
F 22 7 6 M 6
M 21 6 7 N 15
H 19 4
N 15 15
68
 Practice Questions
• True/False
• General, Job-Shop systems have a lower unit co
st than continuous systems do because continu
ous systems use costly specialized equipment.

• In cellular manufacturing, machines and equipm

ent are grouped by type (e.g., all grinders are gr
ouped into a cell).

Answer: False Page: 218

Answer: False Page: 233

69
 Practice Questions

1. Layout planning is required because of:

• Efficient operations
• Accidents or safety hazards
• New products or services
• Morale problems
• A) I and II
• B) II and IV
• C) I and III
• D) II, III, and IV
• E) I, II, III, and IV Answer: D Page: 227
70
 Practice Questions
2. Which type of processing system tends to
produce the most product variety?
• A) Assembly
• B) Job-Shop
• C)Batch
• D)Continuous
• E) Project
·Answer: B Page: 220

71
 Practice Questions
3. A production line is to be designed for a jo
b with three tasks. The task times are 0.3
minutes, 1.4 minutes, and 0.7 minutes. Th
e minimum cycle time in minutes, is:
• A) 0.3
• B) 0.7
• C)1.4
• D)2.4
• E) 0.8 ·Answer: C Page: 238

72
 Chapter 6 Supplement
Linear Programming:
Very useful technique – Learn before graduation
You may read my lecture notes
for OPRE6201 available on the web.

73