Chapter 6 Process Selection and Facility Layout

Question 1

What is Process Management

Answer 1

Is the selection of our inputs, operations, work flows, and methods for producing goods and services

It has major implications for:
•  Capacity planning
•  Layout of facilities
•  Equipment
•  Design of work systems

Question 2

When do Decisions Arise?

Answer 2

• New or modified product
• Quality improvement needed
• Revised competitive priorities
• Changing volumes
• Current performance inadequate (The Goal)
• Competitors have superior process technology
• Change in cost or availability of inputs
• Customer demands

Question 3

1. Project Process

Answer 3

• Low volumes

* Sequence/process unique for each project

Question 4

2. Job Shop Process

Answer 4

• Low volume
• Customization
• Flexibility to produce a variety of products or services

Question 5

Job Shop Process Key Characteristics

Answer 5

• Similar machines are grouped together by function into departments.
• Shop Orders are routed from one department to another to complete the required operations.
• Produces a wide variety of products on general purpose equipment.

Question 6

3. Batch Process

Answer 6

• Average volume

* Products/services share common resources

Question 7

4. Line Process

Answer 7

• High volumes
• Resources devoted to specific products/services
• Repetitive operations
• Mass production

Question 8

5. Continuous Process

Answer 8

• Very high volumes
• High capital intensity
• Rigid flow lines

Question 9

Other Process Decisions

Answer 9

• Customer Involvement refers to the ways in which customers become part of the process and the extent of their participation.
• Resource flexibility is the ease with which employees and equipment can handle a wide variety of products, output levels, duties, and functions.
• Capital intensity is the mix of equipment and human skills in a process, the greater is the capital intensity.

Question 10

Why Acquire New Technologies?

Answer 10

• Cost-reduce material, labor and distribution
• Speed of delivery, reduce lead time
• Quality-more uniform production and automated testing devices
• Flexibility-short product life cycles, increase product variety, and extensive customization
• Safety

Question 11

Kinds of Technology

Answer 11

• Product and service technology - Discovery and development of new products and services
• Process technology -Methods, procedures, and equipment used to produce goods and provide services
• Information technology - The science and use of computers and other electronic equipment to store, process, and send information

Question 12

Facility Layout

Answer 12

• The arrangement of machines, departments, workstations, storage areas, aisles, and common areas within an existing or proposed facility
• Basic objective- arrange elements to ensure a smooth flow of work, material, people, or information through the system

Question 13

Reasons for Redesign

Answer 13

• Inefficient design
• Accident/Safety
• Changes in the design of product or safety
• Introduction of new products
• Changes in volume
• Changes in methods or equipment
• Changes in environmental or legal requirements

Question 14

Layout Design Objectives

Answer 14

• Facilitate product or service quality
• Use workers and space efficiently
• Avoid bottlenecks
• Minimize material handling costs
• Eliminate unnecessary movement of workers or material
• Minimize production time or customer service time
• Design for safety

Question 15

Basic Layout Types

Answer 15

• Product layouts
• Process layouts
• Fixed-Position layout
• Combination layouts

Question 16

Repetitive Processing: Product Layout

Answer 16

Layout that uses standardized processing operations to achieve smooth, rapid, high-volume flow

Question 17

Product Layouts

Answer 17

• Used when positioning strategy calls for line or continuous production
• Arrange work stations in a sequence
• Line’s output is only as fast as its slowest station
• Goal is to obtain work stations with well balanced loads
• Technique used to assign work stations to achieve well-balanced loads is called assembly line balancing
• Advantage: efficiency (high rate of output, low unit costs, high utilization of people and machines)
• Disadvantage: inflexibility

Question 18

Product Layout: Advantages

Answer 18

• High rate of output
• Low unit cost
• Labor specialization
• Low material handling cost per unit
• High utilization of labor and equipment
• Established routing and scheduling
• Routine accounting, purchasing, and inventory control

Question 19

Process Layouts

Answer 19

• Groups work stations or departments according to function
• Low volume, high variety
• Challenge: locate centers so that they bring some order to the apparent chaos of the process-focused operation
• Advantage: flexibility
• Disadvantage: inefficiency

Question 20

Steps to Process Layout

Answer 20

Gather information
determine space requirements
determine available space
closeness ratings

Question 21

Office Layouts

Answer 21

Cubes vs. Traditional Offices

Advantages and Disadvantages

Question 22

Fixed Position Layouts

Answer 22

Layout in which the product or project remains stationary, and workers, materials, and equipment are moved as needed (battleship, dam)

Question 23

Cellular Layout

Answer 23

• Used in a flow production line
• Products move through, one at a time, from station to station, with no WIP inventory in between
• Reduces waste of excess floor space, unnecessary motions, transportation, and handling

Question 24

Warehouse Layout

Answer 24

• Objective-find the optimum trade-off between handling cost and warehouse space
• Different layout patterns
• Seasonal demand
• Various ways of utilizing space

Question 25

Retail Layout

Answer 25

• Objective: maximize the net profit per square foot of display space
• Ambient conditions
• Spatial layout and functionality
• Supermarket power items