Process Selection and Facility Layout McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. You should be able to: 1. Explain the strategic importance of process selection 2. Describe the influence that process selection has on the organization 3. Compare the basic processing types 4. Explain the need for management of technology 5. List some reasons for redesign of layouts 6. Describe the basic layout types, and the main advantages and disadvantages of each 7. Solve simple line-balancing problems 8. Develop simple process layouts Instructor Slides 6-2 Process selection Refers to deciding on the way production of goods or services will be organized It has major implications for Capacity planning Layout of facilities Equipment Design of work systems Instructor Slides 6-3 Instructor Slides 6-4 Instructor Slides 6-5 There is increasing pressure for organizations to operate sustainable production processes According to the Lowell Center for Sustainable Production: “Sustainable Production is the creation of goods and services using processes and systems that are: nonpolluting; conserving of energy and natural resources; economically efficient; safe and healthful for workers, communities, and consumers; and, socially and creatively rewarding for all working people.” Instructor Slides 6-6 FMS A group of machines designed to handle intermittent processing requirements and produce a variety of similar products Have some of the benefits of automation and some of the flexibility of individual, or stand-alone, machines Includes supervisory computer control, automatic material handling, and robots or other automated processing equipment Instructor Slides 6-7 CIM A system for linking a broad range of manufacturing activities through an integrated computer system Activities include Engineering design FMS Purchasing Order processing Production planning and control The overall goal of CIM is to link various parts of an organization to achieve rapid response to customer orders and/or product changes, to allow rapid production and to reduce indirect labor costs Instructor Slides 6-8 Layout the configuration of departments, work centers, and equipment, with particular emphasis on movement of work (customers or materials) through the system Facilities layout decisions arise when: Designing new facilities Re-designing existing facilities Instructor Slides 6-9 Basic Objective Facilitate a smooth flow of work, material, and information through the system Supporting objectives 1. Facilitate product or service quality 2. Use workers and space efficiently 3. Avoid bottlenecks 4. Minimize material handling costs 5. Eliminate unnecessary movement of workers or material 6. Minimize production time or customer service time 7. Design for safety Instructor Slides 6-10 Product layouts Process layouts Fixed-Position layout Combination layouts Instructor Slides 6-11 Service layouts can be categorized as: product, process, or fixed position Service layout requirements are somewhat different due to such factors as: Degree of customer contact Degree of customization Common service layouts: Warehouse and storage layouts Retail layouts Office layouts Instructor Slides 6-12 The main issue in designing process layouts concerns the relative placement of the departments Measuring effectiveness A major objective in designing process layouts is to minimize transportation cost, distance, or time Instructor Slides 6-13