Mata kuliah : J0444 - Manajemen Operasional Tahun : 2010 System Design: Process Selection and Facility Layout Pertemuan 07 Learning Objectives • • • • • Explain the strategic importance of process selection. Explain the influence that process selection has on an organization. Describe the basic processing types. Discuss automated approaches to processing. Explain the need for management of technology. Learning Objectives • • • • • List some reasons for redesign of layouts. Describe the basic layout types. List the main advantages and disadvantages of product layouts and process layouts. Solve simple line-balancing problems. Develop simple process layouts. Introduction • Process selection – Deciding on the way production of goods or services will be organized • Major implications – – – – Capacity planning Layout of facilities Equipment Design of work systems Process Selection and System Design Forecasting Capacity Planning Product and Service Design Technological Change Facilities and Equipment Layout Process Selection Work Design Process Strategy • Key aspects of process strategy – Capital intensive – equipment/labor – Process flexibility – Technology – Adjust to changes – Design – Volume – technology Technology • Technology: The application of scientific discoveries to the development and improvement of products and services and operations processes. • Technology innovation: The discovery and development of new or improved products, services, or processes for producing or providing them. Kinds of Technology • Operations management is primarily concerned with three kinds of technology: – Product and service technology – Process technology – Information technology • All three have a major impact on: – Costs – Productivity – Competitiveness Technology Competitive Advantage • Innovations in – Products and services • Cell phones • PDAs • Wireless computing – Processing technology • Increasing productivity • Increasing quality • Lowering costs Technology Acquisition • Technology can have benefits but … • Technology risks include: – What technology will and will not do – Technical issues – Economic issues • • • • Initial costs, space, cash flow, maintenance Consultants and/or skilled employees Integration cost, time resources Training, safety, job loss Process Selection • Variety Batch – How much • Flexibility – What degree • Volume Job Shop Repetitive – Expected output Continuous Process Types • Job shop – Small scale • Batch – Moderate volume • Repetitive/assembly line – High volumes of standardized goods or services • Continuous – Very high volumes of non-discrete goods Product and Service Processes Process Type Job Shop Appliance repair Emergency room Ineffective Commercial baking Batch Classroom Lecture Automotive assembly Repetitive Automatic carwash Continuous (flow) Ineffective Steel Production Water purification Automation • Automation: Machinery that has sensing and control devices that enables it to operate – Fixed automation – Programmable automation • Computer-aided design and manufacturing systems (CAD/CAM) • Numerically controlled (NC) machines • Robot • Manufacturing cell • Flexible manufacturing systems(FMS) • Computer-integrated manufacturing (CIM) What is Facility Layout • Location or arrangement of everything within & around buildings • Objectives are to maximize – Customer satisfaction – Utilization of space, equipment, & people – Efficient flow of information, material, & people – Employee morale & safety Strategic Importance of Layout Proper layout enables: • Higher utilization of space, equipment,and people • Improved flow of information, materials, or people • Improved employee morale and safer working conditions • Improved customer/client interaction • Flexibility Types of Layouts • • • • • • Fixed-position layout Process-oriented layout Office layout Retail layout Warehouse layout Product-oriented layout Six Layout Strategies • Fixed-position layout – large bulky projects such as ships and buildings • Process-oriented layout – deals with low-volume, high-variety production (“job shop”, intermittent production) • Office layout – positions workers, their equipment, and spaces/offices to provide for movement of information Six Layout Strategies - continued • Retail/service layout – allocates shelf space and responds to customer behavior • Warehouse layout – addresses trade-offs between space and material handling • Product-oriented layout – seeks the best personnel and machine use in repetitive or continuous production Layout Example - Office Product Layout Raw materials or customer Material and/or labor Station 1 Material and/or labor Station 2 Material and/or labor Station 3 Station 4 Material and/or labor Used for Repetitive or Continuous Processing Finished item A U-Shaped Production Line In 1 2 3 4 5 Workers 6 Out 10 9 8 7 Process Layout Process Layout (functional) Dept. A Dept. C Dept. E Dept. B Dept. D Dept. F Used for Intermittent processing Job Shop or Batch Processes Requirements of a Good Layout 3 an understanding of capacity and space requirements 3 selection of appropriate material handling equipment 3 decisions regarding environment and aesthetics 3 identification and understanding of the requirements for information flow 3 identification of the cost of moving between the various work areas Constraints on Layout Objectives • • • • Product design & volume Process equipment & capacity Quality of work life Building and site Areas of Concern in Layout Strategy Communication Service Areas Warehousing Safety Material Attributes Layout Strategy Work Cell Material Flow Fixed-Position Layout • Design is for stationary project • Workers and equipment come to site • Complicating factors – Limited space at site – Changing material needs Process-Oriented Layout • Design places departments with large flows of material or people together • Department areas having similar processes located in close proximity – e.g., All x-ray machines in same area • Used with process-focused processes Steps in Developing a Process-Oriented Layout Construct a “from-to matrix” Determine space requirements for each department Develop an initial schematic diagram Determine the cost of this layout By trial-and-error (or more sophisticated means), try to improve the initial layout 6 Prepare a detailed plan that evaluates factors in addition to transportation cost 1 2 3 4 5 Cost of Process-Oriented Layout n n Minimize cost X ijC ij i 1 j1 where n total number of work centers or department s i, j individual department s X ij number of loads moved from department i to department j C ij cost to move a load between department i and department j Interdepartmental Flow of Parts 1 1 2 3 4 5 6 2 50 3 4 5 6 100 0 0 20 30 50 10 0 20 0 100 50 0 0 Interdepartmental Flow Graph Showing Number of Weekly Loads 10 0 1 50 2 30 3 100 10 4 50 5 6 Possible Layout 1 Room 1 Room 2 Room 2 Assembly Printing Machine Shop Department Department Department (1) (2) (3) Receiving Shipping Testing Department Department Department 40’ (4) Room 4 (5) Room 5 (6) Room 6 60’ Interdepartmental Flow Graph Showing Number of Weekly Loads 30 1 50 2 10 0 3 100 4 50 5 6 Possible Layout 3 Room 1 Room 2 Room 2 Painting Assembly Machine Shop Department Department Department (2) (1) (3) Receiving Shipping Testing Department Department Department 40’ (4) Room 4 (5) Room 5 (6) Room 6 60’ Cellular Layouts • Cellular Production – Layout in which machines are grouped into a cell that can process items that have similar processing requirements • Group Technology – The grouping into part families of items with similar design or manufacturing characteristics Cellular Layout - Work Cells • Special case of product-oriented layout - in what is ordinarily a process-oriented facility • Consists of different machines brought together to make a product • Temporary arrangement only • Example: Assembly line set up to produce 3000 identical parts in a job shop Improving Layouts by Moving to the Work Cell Concept Work Cell Floor Plan Saws Tool Room Drills Work Cell Office Office Layout Design positions people, equipment, & offices for maximum information flow Arranged by process or product Example: Payroll dept. is by process Relationship chart used Examples Insurance company Software company Office Layout Floor Plan Accounting Finance Fin. Manager Acct. Brand X Relationship Chart 1 President 1 O 2 Costing 2 U A 3 Engineering I = Important U = Unimportant A 4 I O 4 President’s Secretary Ordinary closeness: President (1) & 3 Costing (2) Absolutely necessary: President (1) & Secretary (4) Office Relationship Shart 1 President O 2 Chief Technology Officer 3 Engineer’s Area 4 Secretary 5 Office entrance 7 Equipment cabinet 8 Photocopy equipment 9 Storage room 9 Storage room A U O I A A I I I X A I I I O U E E U O U A E E A X O U E U O I O U O Val. Closeness A Absolutely necessary E Especially important I Important O Ordinary OK U Unimportant X Not desirable Retail/Service Layout Design maximizes product exposure to customers Decision variables Store flow pattern Allocation of (shelf) space to products Types Grid design Free-flow design Video Retail /Service Layout Grid Design Grocery Store Bread Meat Milk Produce Carts Frozen Foods Office Checkout Store Layout - with Dairy, Bread, High Drawer Items in Corners Retail/Service Layout Free-Flow Design Apparel Store Trans. Counter Feature Display Table Retail Store Shelf Space Planogram 2 ft. SUAVE SUAVE VO-5 PERT VO-5 PERT PERT VO-5 PERT VO-5 VO-5 PERT Computerized tool for shelf-space management Generated from store’s scanner data on sales Often supplied by manufacturer 5 facings A Good Service Layout (Servicescape) Considers • Ambient conditions - background characteristics such as lighting, sound, smell, and temperature. • Spatial layout and functionality - which involve customer circulation path planning • Signs, Symbols, and Artifacts - characteristics of building design that carry social significance Warehouse Layout Design balances space (cube) utilization & handling cost Similar to process layout Items moved between dock & various storage areas Optimum layout depends on Variety of items stored Number of items picked Warehouse Layout Floor Plan Conveyor Truck Zones Order Picker Product-Oriented Layout • Facility organized around product • Design minimizes line imbalance – Delay between work stations • Types: Fabrication line; assembly line Product-Oriented Requirements • • • • Standardized product High production volume Stable production quantities Uniform quality of raw materials & components Design Product Layouts: Line Balancing Line Balancing is the process of assigning tasks to workstations in such a way that the workstations have approximately equal time requirements. Assembly Line Balancing • Analysis of production lines • Nearly equally divides work between workstations while meeting required output • Objectives – Maximize efficiency – Minimize number of work stations Assembly Line Balancing The General Procedure • Determine cycle time by taking the demand (or production rate) per day and dividing it into the productive time available per day • Calculate the theoretical minimum number of work stations by dividing total task time by cycle time • Perform the line balance and assign specific assembly tasks to each work station Assembly Line Balancing Steps 1. 2. 3. 4. 5. 6. 7. 8. Determine tasks (operations) Determine sequence Draw precedence diagram Estimate task times Calculate cycle time Calculate number of work stations Assign tasks Calculate efficiency Precedence Diagram Example 10 Min. A 11 B C 4 5 3 7 3 F G I D 12 11 E H Assembly Line Balancing Equations Production time available Cycle time Minimum number of work stations Efficiency = Demand per day Task times = = Cycle time Task times (Actual number * (Cycle time) of work stations) Six Station Solution 5 C 10 11 A B 3 7 F G 3 I D 12 11 E H The End