Process Selection and Facility Layout

The most basic decisions managers make:

Product and service choices, capacity planning, process selection, and layout of facilities
Because they have long-term consequences for business organizations, and they impact a wide
range of activities and capabilities
Processes convert inputs into outputs; they are at the core of operations management
Process selection refers to deciding on the way production of goods or services will be organized
The impact/implications of process selection goes beyond operations management: It affects the
entire organization and its ability to achieve its mission, and it affects the organization’s supply
chain.
Operational implications include equipment and labor requirements, operations costs, and both
the ability to meet demand and the ability to respond to variations in demand.

Supply chain implications relate to the volume and variety of inputs and outputs and the
degree of flexibility that is required.

The strategic importance of process selection and the influence it has on the
organization and its supply chain:
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 products or equipment, as
well as competitive pressures

Forecasts, product and service design, and technological considerations all

influence capacity planning and process selection.
Moreover, capacity and process selection are interrelated, and are often done
in concert.
They, in turn, affect facility and equipment choices, layout, and work design
How an organization approaches process selection is determined by the organization’s process
strategy.
Key aspects of process strategy. Include:
• Capital intensity: the mix of equipment and labor that will be used by the organization.
• Process flexibility: the degree to which the system can be adjusted to changes in processing
requirements due to such factors as changes in product or service design, changes in
volume processed, and changes in technology

The two key questions in process selection are:

1. How much variety will the process need to be able to handle?
2. How much volume will the process need to be able to handle?
Volume and variety are inversely related;
However, the need for flexibility of personnel and equipment is directly related to the level of
variety the process will need to handle:
The lower the variety, the less the need for flexibility, hence high volume
While the higher the variety, the greater the need for flexibility, hence high volume
Process types: job shop, batch, repetitive, continuous
Job Shop:
A low volume of high-variety goods or services
High flexibility using general-purpose equipment and skilled workers
A manufacturing example of a job shop is a tool and die shop that is able to produce one-of-a-
kind tools.
A service example is a veterinarian’s office, which is able to process a variety of animals and a
variety of injuries and diseases
Batch
A moderate volume and moderate variety of goods or services
The equipment need not be as flexible as in a job shop
The skill level of workers doesn’t need to be as high as in a job shop because there is less variety
in the jobs being processed
Examples of batch systems include bakeries, which make bread, cakes, or cookies in batches;
Movie theaters, which show movies to groups (batches) of people
Airlines, which carry planeloads (batches) of people from airport to airport.
Other examples of products: paint, ice cream, soft drinks, magazines, and books.
Other examples of services include plays, concerts, music videos, and radio and television
programs
Repetitive
Higher volumes of more standardized goods or services
The standardized output means only slight flexibility of equipment
Skill of workers is generally low.
Examples of this type of system include production lines and assembly lines.
Familiar products made by these systems include automobiles, television sets, pencils, and
computers.
An example of a service system is an automatic carwash.
Other examples of service include cafeteria lines and ticket collectors at sports events and
concerts.
Continuous
A very high volume of non-discrete, highly standardized output, almost no variety in output
Hence, no need for equipment flexibility
Workers’ skill requirements can range from low to high, depending on the complexity of the
system and the expertise workers need.
Generally, if equipment is highly specialized, worker skills can be lower.
Examples of non-discrete products made in continuous systems include petroleum products,
steel, sugar, flour, and salt.
Continuous services include supplying electricity to homes and businesses, and the Internet

Types of processing: Compare the four basic processing types.

Volume and variety influence process choice

Process choice affects numerous activities/functions
Layout
Layout refers to the configuration of departments, work centers, and equipment, with particular
emphasis on movement of work (customers or materials) through the system.
Have a significant impact on the cost and efficiency of operations
Reasons for redesign of layouts include
Inefficient operations (e.g., high cost, bottlenecks), accidents or safety hazards,
Changes in the design of products or services
Introduction of new products or services
Changes in the volume of output or mix of outputs,
Changes in methods or equipment,
Changes in environmental or other legal requirements,
Morale problems (e.g., lack of face-to-face contact).
The basic objective of layout design is:
To facilitate a smooth flow of work, material, and information through the system
To avoid bottlenecks
The three basic types of layout are product, process, and fixed-position.
Product layouts are most conducive to repetitive processing,
Process layouts are used for intermittent process – non-repetitive processing

Process layouts
The variety of jobs that are processed requires frequent adjustments to equipment
The layouts feature departments or other functional groupings in which similar kinds of
activities are performed
A manufacturing example of a process layout is the machine shop, which has separate
departments for milling, grinding, drilling, and so on.
Items that require those operations are frequently moved in lots or batches to the departments

Consequently, variable-path material-handling equipment (forklift

trucks, jeeps) is needed to handle the variety of routes and items
Process layouts are quite common in service environments.
Examples include hospitals, colleges and universities, banks, auto repair shops, airlines, and
public libraries.
For instance, hospitals have departments or other units that specifically handle surgery,
maternity, pediatrics, psychiatric, emergency, and geriatric care.
And universities have separate schools or departments that concentrate on one area of study such
as business, engineering, science, or math.

Because equipment in a process layout is arranged by type rather than by

processing sequence, the system is much less vulnerable to shutdown
caused by mechanical failure or absenteeism.
Fixed-position layout
Layout in which the product or project remains stationary, and workers, materials, and
equipment are moved as needed
Fixed-position layouts are used in large construction projects (buildings, power plants, dams),
shipbuilding, and production of large aircraft and space mission rockets
DESIGNING PRODUCT LAYOUTS: LINE BALANCING

Line balancing
The process of assigning tasks to workstations in such a way that the workstations have
approximately equal time requirements.
Line balancing involves assigning tasks to workstations. Usually, each workstation has one
worker who handles all of the tasks at that station
Cycle time
The maximum time allowed at each workstation to complete its set of tasks on a unit
Line balancing minimizes the idle time along the line and results in a high utilization of labor
and equipment.
Idle time occurs if task times are not equal among workstations;
Some stations are capable of producing at higher rates than others.

These “fast” stations will experience periodic waits for the output from
slower stations or else be forced into idleness to avoid buildups of work
between stations.
Unbalanced lines are undesirable in terms of inefficient utilization of labor and equipment and
because they may create morale problems at the slower stations for workers who must work
continuously.
Lines that are perfectly balanced will have a smooth flow of work as activities along the line are
synchronized to achieve maximum utilization of labor and equipment

The major obstacle to attaining a perfectly balanced line is the difficulty

of forming task bundles that have the same duration.
If skill requirements of tasks are quite different, it may not be feasible to
place the tasks in the same workstation.
Similarly, if the tasks themselves are incompatible (e.g., the use of fire
and flammable liquids), it may not be feasible even to place them in
stations that are near each other
 Chapter 6: Process Selection and Facility Layout

1. An assembly line with 17 tasks is to be balanced. The longest task is 2.4 minutes, and the total
time for all tasks is 18 minutes. The line will operate for 450 minutes per day. a. What are the
minimum and maximum cycle times? b. What range of output is theoretically possible for the
line? c. What is the minimum number of workstations needed if the maximum output rate is to be
sought? d. What cycle time will provide an output rate of 125 units per day? e. What output
potential will result if the cycle time is (1) 9 minutes? (2) 15 minutes?
Solution:
Minimum cycle time = 2.4 minutes/unit
Maximum cycle time = 18 minutes/unit
Output per day = 450/2.4 =187.5 = 188 units
Output per day = 450/18 =25units
c. Nmin = 18/2.4 = 7.5 = 8
d. Cycle time = 450/125 = 3.6 minutes/unit
e. Output per day = 450/9 =50 units
Output per day = 450/15 =30 units
2. A manager wants to assign tasks to workstations as efficiently as possible and achieve an
hourly output of 331 ⁄3 units. Assume the shop works a 60-minute hour. Assign the tasks shown
in the accompanying precedence diagram (times are in minutes) to workstations using the
following rule: a. In order of most following tasks. b. What is the efficiency?

Solution:
Cycle time = 60*3/100 = 1.8 min/unit
Nmin = (1.4+.5+06+.7+.8+1+.5+.5)/1.8 = 6/1.8 = 3.33 = 4
 Station Remaining Time Eligible Will Fit Assign/Task Time Station Idle Time
1 1.8 a a a/1.4
0.4 b None None 0.4
1.8 b b b/0.5
2 1.3 c,d,e e e/0.8
0.5 c, d None None 0.5
1.8 c, d d d/0.7
3 1.1 c c c/0.6
0.5 f, g f f/0.5
1.8 g g g/1.0
4 0.8 h h h/0.5
0.3 None None None 0.3
Total 1.2

Efficiency = 100 – (1.2/4*1.8)*100 = 83.33%

3. A manager wants to assign tasks to workstations as efficiently as possible and achieve an

hourly output of four units. The department uses a working time of 56 minutes per hour. Assign
the tasks shown in the accompanying precedence diagram (times are in minutes) to workstations
using the following rules: a. In order of most following tasks. Tiebreaker: greatest positional
weight. b. In order of greatest positional weight. Tiebreaker: most following tasks. c. What is the
efficiency?

Solution:
Cycle time = 56/4 = 14 min/unit
Nmin = (3+2+4+7+4+5+6+9+5)/14 = 45/14 = 3.21 = 4
 Most following tasks

Station Remaining Time Eligible Will Fit Assign/Task Time Station Idle Time
14 a, d, f d, f f/5
1 9 a, d, g a, g a/3
6 d, g, b g g/6
0 d, b None None
14 d, b d, b d/7
2 7 b, e b, e b/2
5 e, c c c/4
1 e None None 1
14 E e e/4
3 10 H h h/9
1 i None None 1
14 i i i/5
4 9 None None None 9

Total 11

Efficiency = 100 – (11/4*14)*100 = 80.36%

Greatest positional weight

Station Remaining Time Eligible Will Fit Assign/Task Time Station Idle Time
14 a, d, f d, f f/5
1 9 a, d, g a, g g/6
3 a, d, a a/3
0 d, b None None
14 d, b d, b d/7
2 7 b, e b, e b/2
5 e, c c c/4
1 e None None 1
14 e e e/4
3 10 h h h/9
1 i None None 1
14 i i i/5
4 9 None None None 9

Total 11

Efficiency = 100 – (11/4*14)*100 = 80.36%

 4. A producer of inkjet printers is planning to add a new line of printers, and you have been
asked to balance the process, given the following task times and precedence relationships.
Assume that cycle time is to be the minimum possible.

(1) Draw the precedence diagram. (2) Assign tasks to stations in order of most following tasks.
Tiebreaker: greatest positional weight. (3) Determine the percentage of idle time. (4) Compute
the rate of output in printers per day that could be expected for this line assuming a 420-minute
working day
Solution:
Cycle time = 1.3 min/unit
Nmin = (.2+.4+.3+1.3+.1+.8+.3+1.2)/1.3 = 4.6/1.3 = 3.54 = 4

Most following tasks

Station Remaining Time Eligible Will Fit Assign/Task Time Station Idle Time
1.3 a, c, e a, c, e a/0.2
1.1 c, e, b c, e, b b/0.4
1 0.7 c, e c, e c/0.3
0.4 e, d e e/0.1
0.3 d, f None None 0.3
1.3 d, f d d/1.3
2 0 f None None

1.3 f f f/0.8
3 05 g g g/0.3
0.2 h None None 0.2
1.3 h h h/1.2
4 0.1 None None None 0.1

Total 0.6
Percentage of idle time = (0.6/4*1.3)*100 = 11.54%
Output in printers per day = 420/1.3 = 323 units