Chapter 6

Process Selection and Facility Layout

Learning Objectives

1. Explain the strategic importance of process selection.

2. Explain the influence that process selection has on an organization.
3. Describe the basic processing types.
4. Discuss automated approaches to processing.
5. Explain the need for management of technology.
6. List some reasons for redesign of layouts.
7. Describe the basic layout types.
8. List the main advantages and disadvantages of product layouts and process layouts.
9. Solve simple line-balancing problems.
10. Develop simple process layouts.

Chapter Outline

 Introduction
 Process Selection
 Automation
 Tour de Force
 Electric Car Drives Factory Innovations
 Service Process Design
 Management of Technology
 Product Layouts
 Process Layouts
 Fixed-Position Layouts
 Combination Layouts
 Cellular Layouts
 Other Service Layouts
 Designing Supermarkets
 Designing Product Layouts: Line Balancing
 Designing Process Layouts
 Information Requirements
 Minimizing Transportation Cost or Distances
 Closeness Ratings
 Computer Analysis
 Morton Salt
Introduction

Process selection refers to the way production of goods or services is organized. It has
major implications for capacity planning, layout of facilities, equipment and design of work
systems. Process selection occurs as a matter of course when new products or services are being
planned. However, it also occurs periodically due to technological changes in equipment.
(William J. Stevenson)

Operations management is the strategic administration of production processes and

personnel to maximize output, minimize errors and continually enhance product quality. Facility
layout refers to the way in which work stations, equipment, machinery and employees are
positioned within a work facility. Process selection involves strategically choosing which types
of work processes to include in the production of a product. Process selection and facility layout
are both important elements of operations management. Understanding the basics of each and
their correlation can help you to design more efficient production processes. (David Ingram)

Facility layout and design is an important component of a business's overall operations,

both in terms of maximizing the effectiveness of the production process and meeting the needs of
employees. The basic objective of layout is to ensure a smooth flow of work, material, and
information through a system. The basic meaning of facility is the space in which a business's
activities take place. The layout and design of that space impact greatly how the work is done—
the flow of work, materials, and information through the system. The key to good facility layout
and design is the integration of the needs of people (personnel and customers), materials (raw,
finishes, and in process), and machinery in such a way that they create a single, well-functioning
system. (Mehran Hojati)

How an organization approaches process selection is determined by the organization’s process

strategy. Key aspects include:

 Make or buy decisions

 Capital intensity
 Process flexibility

Process Selection
Three primary questions bear on process selection:

1. How much variety in products or services will the system need to handle?
2. What degree of equipment flexibility will be needed?
3. What is the expected volume of output?
Process Types
There are five basic process types: job shop, batch, repetitive, continuous, and project. The
following four types are ongoing:

Job Shop- A job shop usually operates on a relatively small scale. It is used when a low volume
of high-variety goods or services will be needed.

Batch- Batch processing is used when a moderate volume of goods or services is desired, and it
can handle a moderate variety in products or services.

Repetitive- When higher volumes of more standardized goods or services are needed, repetitive
processing is used.

Continuous- When a very high volume of highly standardized output is desired, a continuous
system is used.

Project- used for work that is non routine, with a unique set of objectives to be accomplished in a
limited time frame.

Summary:

Process selection choices often have strategic implications for organizations. They can
affect cost, quality, productivity, customer satisfaction, and competitive advantage. Process types
include job shop, batch processing, repetitive processing, continuous processing, and projects.
Process type determines how work is organized, and it has implications for the entire
organization and its supply chain. Process type and layout are closely related. Layout decisions
are an important aspect of the design of production systems, affecting operating costs and
efficiency. Layout decisions are often closely related to process selection decisions. Product
layouts are geared to high-volume output of standardized items. Workers and equipment are
arranged according to the technological sequence required by the product or service involved.
Emphasis in design is on work flow through the system, and specialized processing and handling
equipment is often used. Product layouts are highly vulnerable to breakdowns. Preventive
maintenance reduces the occurrence of breakdowns. Process layouts group similar activities into
departments or other work centers. These systems can handle a wide range of processing
requirements and are less susceptible to breakdowns. However, the variety of processing
requirements necessitates continual routing and scheduling and the use of variable-path material-
handling equipment. The rate of output is generally much lower than that of product layouts.

Process Selection is basically the way goods or services are made or delivered, which
influences numerous aspects of an organization, including capacity planning, layout of facilities,
equipment and design of work systems. Process selection is primarily used during the planning
of new products or services that is subject to technological advances and competition. Process
selection is dependent on the company's process strategy, which has two main components:
capital intensity and process flexibility. Capital Intensity is simply the combination of equipment
and labor that an organization uses to accomplish some objective. Process Flexibility is as its
name implies: how well a system can be adjusted to meet changes in processing requirements
that are interdependent on variables such as product or service design, volume of production, and
technology. Facility Layout is simply the way a facility is arranged in order to maximize
processes that are not only efficient but effective towards the overall organizational goal. It is
also dependent on process selection.

Each step in a production process can be completed in a variety of ways. Consider the
process of sewing a garment, for example. The key to process selection is to balance the costs,
efficiency, output and quality of each option to meet your production goals. Some options may
produce a higher output per hour while costing twice as much as other options, for example,
while other options are less costly but produce more errors. A single employee could sew an
entire garment, then pass it down to a packaging line; several employees could be set up next to
each other, each sewing a single stitch or section before quickly passing it on, or the sewing
could be handled by a machine. The finished garment could be sent off to the packaging line via
an employee pushing large bins or via a convey or belt stretching around the factory, as another
example.

KEY TERMS:

Assembly line
Automation
Balance delay
Cellular Manufacturing
Cycle Time
Fixed-Position Layout
Line Balancing
Process Layout
Product Layout
Robot

Questions:

1. Explain the importance of process selection in system design?

Process Selection plays an important part in overall design of production and
operations management systems.

2. What are the five process types?

Repetitive, Discrete, Job Shop, Process (batch), and Process (continuous).

3. Briefly discuss the advantages and disadvantages of automation.

Advantages commonly attributed to automation include higher production rates and
increased productivity, more efficient use of materials, better product quality,
improved safety, shorter workweeks for labor, and reduced factory lead times. Higher
 output and increased productivity have been two of the biggest reasons in justifying
the use of automation. Despite the claims of high quality from good workmanship by
humans, automated systems typically perform the manufacturing process with less
variability than human workers, resulting in greater control and consistency of
product quality. Also, increased process control makes more efficient use of
materials, resulting in less scrap.

4. What is a flexible manufacturing system, and under what set of circumstances is it

most appropriate?
FMS is a group of machines that include supervisory computer control automatic
material handling, and robots or other automated processing equipment.
Reprogrammable controllers enable these systems to produce a variety of similar
products. It is most appropriate if the managers want to achieve both the flexibility of
job shop processing and the productivity of repetitive processing systems.

5. Why is management of technology important?

Technology should be properly managed because along with its enormous benefits it
also carries substantial risk unless a significant effort is made to fully understand.