Process Layout

Chapter 8

L L M M D D

D D
L L M M

L L M M
G G

L L G G
A A

A A G G

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 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 Supply Chain Strategy
Lean Systems Location
Inventory Management
Forecasting
Sales and Operations Planning
Resource Planning
Scheduling

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 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.
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 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?
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 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. Increasing customer satisfaction and sales at a retail store.
2. Facilitating the flow of materials and information.
3. Increasing the efficient utilization of labor and equipment.
4. Reducing hazards to workers.
5. Improving employee morale.
6. Improving communication.

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 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.

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 A Flexible Flow Layout

A job shop has a flexible-flow layout.

Grinding Forging Lathes

Painting Welding Drills

Milling
Office machines Foundry

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 Line Flow Layout

A production line has a line-flow layout.

Station 1 Station 2 Station 3 Station 4

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 Comparison Of
Product And Process
Layouts
PRODUCT LAYOUT PROCESS LAYOUT
1. Description Sequential arrangement Functional grouping
of machines of machines

2. Type of Process Continuous, mass Intermittent, job shop

production, mainly batch production,
assembly mainly fabrication

3. Product Standardized Varied,

made to stock made to order

4. Demand Stable Fluctuating

5. Volume High Low
6. Equipment Special purpose General purpose
7. Workers Limited skills Varied skills

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2000 by Prentice-Hall Inc
Ch 7 - 9
Russell/Taylor Oper Mgt 3/e
 Comparison Of
Product And Process
Layouts
PRODUCT LAYOUT PROCESS LAYOUT
8. Inventory Low in-process, High in-process,
high finished goods low finished goods
9. Storage space Small Large
10. Material Fixed path Variable path
handling (conveyor) (forklift)
11. Aisles Narrow Wide
12. Scheduling Part of balancing Dynamic
13. Layout decision Line balancing Machine location
14. Goal Equalize work at Minimize material
each station handling cost
15. Advantage Efficiency Flexibility

2007 Pearson Education

2000 by Prentice-Hall Inc
Ch 7 - 10
Russell/Taylor Oper Mgt 3/e
 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
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 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.
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 One Worker,
Multiple Machines
Machine
2
Machine
Machine 3
1

Materials in

Finished
goods out

Machine
Machine 4
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 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.
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 Before Group Technology
Jumbled flows in a job shop without GT cells

Lathing Milling Drilling

L L M M D D

D D
L L M M

Grinding

L L M M
G G

L L Assembly
G G
A A

Receiving and A A G G
shipping

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 Applied Group Technology
Line flows in a job shop with three GT cells

L L M D G Assembly
area
Cell 1 Cell 2 A A

Receiving L M G G

Cell 3

L M D
Shipping

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 Classification and Coding
System

Source: Organization for Industrial Research Inc.

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 Original Process
Layout
Assembly

4 6 7 9

5 8

2 10 12

1 3 11

A B C Raw materials

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2000 by Prentice-Hall Inc
Ch 7 - 34
Russell/Taylor Oper Mgt 3/e
 Cellular Layout
Solution
Assembly

8 10 9 12

11
4 Cell1 6 Cell 3
Cell 2
7

2 1 3 5

Raw materials A C B

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2000 by Prentice-Hall Inc
Ch 7 - 37
Russell/Taylor Oper Mgt 3/e
 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 5 5 6 4 2 7

Dock Aisle

1 5 5 4 4 2 7

Storage area
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 Warehouse Layouts
Zone System

Zones Zones Control

station Shipping

Click to add title doors

Tractor
trailer

Tractor
trailer
Feeder Feeder
lines lines Overflow
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 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)

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 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.
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 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.

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 Work Time Immediate
Element
A
Description (sec) Predecessor(s)
Bolt leg frame to hopper 40 None
Line Balancing
B
C
Insert impeller shaft
Attach axle
30
50
A
A Green Grass, Inc.
D Attach agitator 40 B
E Attach drive wheel 6 B
F Attach free wheel 25 C
G Mount lower post 15 C
H Attach controls 20 D, E D
I Mount nameplate 18 F, G H
Total 244 B 40
20
30 E
A 6
F
40 C 25
50 I
18
G
2007 Pearson Education 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

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 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%.
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 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
= 1 minute/unit
r
= 60 seconds/unit

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 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%

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 The goal is to cluster the work elements Green Grass, Inc.
into 5 workstations so that the number of
work-stations is minimized, and the cycle Line Balancing Solution
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.
D
H
B 40
20
S1 30 E
S3
A S4 6
S2
F S5
40 C 25
50 I
c = 60 seconds/unit
TM = 5 stations 18
G
Efficiency = 81.3%
2007 Pearson Education 15
 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.
2007 Pearson Education