Process Design

and
Facility Layout

1
 Introduction

• Make or Buy?
– Available capacity, excess capacity
– Expertise, knowledge, know-how exists?
– Quality Consideration, specialized firms, control
over quality if in-house
– The nature of demand, aggregation
– Cost
Make some components buy remaining 2
 Introduction
 Process selection
 Deciding on the way
production of goods or
services will be
organized
 Major implications
 Capacity planning
 Layout of facilities
 Equipment, Capital-
equipment or labor
intensive
 Design of work 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,

skilled workers, high-variety. Ex: tool and die shop,
veterinarian’s office
• Batch Processing: Moderate volume and variety. Variety
among batches but not inside. Ex:paint production ,
BA3352 sections
• Repetitive/Assembly: Semicontinuous, high volume of
standardized items, limited variety. Ex: auto plants,
cafeteria
• Continuous Processing: Very high volume an no variety.
Ex: steel mill, chemical plants
• Projects: Nonroutine jobs. Ex: preparing BA3352 5

midterm
 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 High Moderate Low Very Low

Variety
Equipment High Moderate Low Very Low
flexibility
Low Job
Shop
Volume
Moderate Batch
Volume
High Repetitive
assembly
Volume
Very high Continuous
Flow
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
devices that enables it to operate
Fixed automation: Low production cost and high volume but with
minimal variety and high changes cost
 Assembly line
Programmable automation: Economically producing a wide
variety 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
continuous operation of equipment and product variety
 Manufacturing cell
 Flexible manufacturing systems: Use of high automation to achieve
repetitive 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
control, automatic material handling, robots and other
processing 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 planning
and development times

13
 Computer-integrated
manufacturing
 Use integrating computer system to link a broad
range of manufacturing activities, including
engineering design, purchasing, order processing and
production planning and control
 Advantage:
rapid response to customer order and product change,
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

centers, and equipment,
 Whose design involves particular emphasis on movement
of work (customers or materials) through the system
 Importance of layout
 Requires substantial investments of money and effort
 Involves long-term commitments
 Has significant impact on cost and efficiency of short-
term 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 to
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 stationary,
and workers, materials, and equipment are moved as
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 Station Station Station Station Finished

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

and/or and/or and/or and/or

labor labor labor labor

21
 A U-Shaped Production Line

Advantage: more compact, increased communication

facilitating team work, minimize the material handling22
 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
A

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  Low worker enrichment
utilization  Can not accommodate
 Simple routing and partial shut
scheduling downs/breakdowns
 Simple to track and  Individual incentive
control
plans are not possible
27
 Cellular Layouts
 Cellular Manufacturing
– Layout in which machines are grouped into a cell that can
process items that have similar processing requirements.
A product layout is visible inside each cell.
 Group Technology
– The grouping into part families of items with similar
design or manufacturing characteristics. Each cell is
assigned a family for production. This limits the
production variability 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

2
444 3333

2
222
444

1111 2222 Assembly

33
3

44
111 333
33

44
333
33

4
3

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

Part Family W Part Family X Part Family Z

Assemble Y,W Assemble X,Z

Part Family Y

Final Product
 Fixed Position Layout
– e.g. Shipbuilding
33
 Fixed-Position and combination
Layout
 Fixed-Position Layout:
item being worked on remains stationary, and
workers, materials and equipment are moved
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 ti
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 can
not be overcome by grouping task.
 Ex: Can you split the tasks with task times {1,2,3,4} into
two groups such that total task time in each group is the
same?
 Ex: Try the above question with {1,2,2,4}
 A required technological sequence prohibit the
desirable task combinations
 Ex: Let the task times be {1,2,3,4} but suppose that the
task with time 1 can only done after the task with time 4 is
completed. 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

assigning each task to a workstation
Maximum cycle time: sum of the task time by
assigning 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
test 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
 of Workstations Required:
Efficiency
Example: Students can answer a multiple choice question in 2 minutes but given a
test with 30 questions and is given only 30 minutes. What is the minimum number of
students 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
Idle time per cycle
Percent idle time =
(N)(CT)

Efficiency = 1 – Percent idle time

42
Example 1: Precedence Diagram
Precedence diagram: Tool used in line
balancing to display elemental tasks and
sequence requirements
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 into
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
of its predecessors are assigned.
44
 Assigning operations by the
number of followers
Work- Time Assign Station
Station Remaining Eligible Task Idle Time
1 1.0 a,c a
.9 c c
.2 none - .2
2 1.0 b b
0 none - 0
3 1.0 d d
.5 e e
.3 - - .3
.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 time

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
tasks.
 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 using their task times.
Work- Time Assign Station
Station Remaining Eligible Task Idle Time
1 1.0 a,c c
.9 a a
.2 none - .2
2 1.0 b b
0 none - 0
3 1.0 d d
.5 e e
.3 - - .3
.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 using their task times.
Work- Time Assign Station
Station Remaining Eligible Task Idle Time
1 1.0 a,c a
.9 c c
.2 none - .2
2 1.0 b b
0 none - 0
3 1.0 d d
.5 e e
.3 - - .3
.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 assembly.
 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
From\To A B C
 Distances:
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

3
55
 Designing Process Layouts

 Create Layout Alternatives

 Find the one which minimizes transportation
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
input from analysis or manager to indicate the
relative importance of each combination of
department pairs.
 Subjective inputs are imprecise and unreliable

60
 Example 4
 Heuristic: assign
critical departments
first. The critical
departments are those
As Xs
with X and A ratings.
1-2 1-4
 Solution: 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
 Graphically2portray Xs 4
6
 Fit the
1 cluster into the
5
arrangement3
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
 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 64
N 15 F,H,I,M
 Recitation example
 Find a workstation assignment by taking
cycle time=17 minutes by assigning in the
order of the greatest task time.
 Can you find an assignment that uses only six
stations and meets 17 minute cycle time
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
K 33 4 STATION 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 cost
than continuous systems do because continuous
systems use costly specialized equipment.

 In cellular manufacturing, machines and equipment

are grouped by type (e.g., all grinders are grouped
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 job
with three tasks. The task times are 0.3
minutes, 1.4 minutes, and 0.7 minutes. The
minimum cycle time in minutes, is:
 A)0.3
 B) 0.7
 C) 1.4
 D)2.4
 E) 0.8 •Answer: C

72