Chapter 6 Lecture File_Part 1 - JTF
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Process Selection and Facility Layout
Part 1
Chapter 6
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
6-2
Agenda
Introduce Your New Professor
Discuss Process Selection and Flow Structures
Discuss Process & Info Technology Impacts
Discuss Facility Layout Design Considerations
Introduce Line Balancing Concepts
6-3
Agenda
Introduce Your New Professor
Discuss Process Selection and Flow Structures
Discuss Process & Info Technology Impacts
Discuss Facility Layout Design Considerations
Introduce Line Balancing Concepts
6-4
Process Selection and System Design
Forecasting
Product andService Design
TechnologicalChange
CapacityPlanning
ProcessSelection
Facilities andEquipment
Layout
WorkDesign
LO 6.1
Process Strategy driven by (1) Capital Intensity & (2) Required Process Flexibility
6-5
Two key questions in process selection: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?
Process Selection: Drivers of Flexibility Reqs
Job Shop
Repetitive
Batch
Continuous
LO 6.2
6-6
Process Flow Structures Job shop (or project)
- Copy center making a single bound copy of a term paper- Interior configuration of Air Force one
Batch (workcenter or cell)- Copy making 10,000 copies of an ad piece - Luby's cafeteria prepping bread for the line
Assembly Line- Ford Motor- Kawasaki Bikes
Continuous (Flow) Process- Miller Brewing- Exxon Chemical Plant
6-7
IV.Continuous
Flow
III.Assembly
Line
II.Batch
(W/C or Cell)
I.Job Shop
(or Project)
LowVolumeOne of a
Kind
MultipleProducts,
LowVolume
FewMajor
Products,HigherVolume
HighVolume,
HighStandard-
izationAir Force 1
Commercial PrinterFrench Restaurant
(a la carte)
Delta 777 order/Southwest 757 orderHeavy Equipment
Coffee Shop
Honda Trail-BikeAutomobile Assembly
‘Burger King’
Miller 12ozSugar Refinery
Flexibility (High)Unit Cost (High)
Flexibility (Low)Unit Cost (Low)
Source: Modified from Robert Hayes and Steven Wheelwright, Restoring Our Competitive Edge: Competing through Manufacturing (New York: John Wiley & Sons, 1984). p. 209.
These are the major stages of product and process life cycles
Poor Strategy(High variable
costs)
Product-Process Matrix
Poor Strategy(Fixed costs and cost changing to other products
are high)
6-8
Agenda
Introduce Your New Professor
Discuss Process Selection and Flow Structures
Discuss Process & Info Technology Impacts
Discuss Facility Layout Design Considerations
Introduce Line Balancing Concepts
6-9
Process and Information TechnologyProcess and Information technology can
have a major impact on costs, productivity and competitiveness: Process technology
Methods, procedures, and equipment used to produce goods and provide services
Examples: Numerically controlled (NC) machines, Machining centers, Industrial robots, Automated material handling systems, Flexible manufacturing systems (FMS)
Often a function of trade-offs between fixed and variable costs
Information technologyThe science and use of computers and other electronic
equipment to store, process, and send informationExamples: CAD systems, Electronic Data Interchanges
(EDI), Bar Coding, Radio Frequency ID (RFID), Tranportation or Warehouse Management Systems (TMS) or (WMS) and Enterprise Resource Planning suits (ERP)
6-10
Numerically controlled (NC) machines- Machines controlled by computer program
Process Technology/Automation Examples
6-11
Machining centers- Any CNC milling and drilling machine that includes an automatic toolchanger and a table that clamps the workpiece in place. - On a machining center, the tool rotates, but the work does not.
Process Technology/Automation Examples
6-12
Industrial robots
Process Technology/Automation Examples
6-13
Automated material handling systems
Process Technology/Automation Examples
https://www.youtube.com/watch?v=lWsMdN7HMuA
http://www.youtube.com/watch?v=Oc9YLhxC9rM
6-14
Computer Aided Design (CAD) systems- CAD software replaces manual drafting with an automated process.
Information Technology Examples
6-15
Electronic Data Interchanges (EDI)
Information Technology Examples
Similar Processes for other transaction flows: Shipping Notification, Invoicing, Payments, etc,
Legacy Information Flow: Purchase Order
Order manually entered into buyer’s procurement system
Purchaseorder
generated
Purchaseorder
transmitted
Purchaseorder
Received
Order manually entered into sellers finance
system
EDI Enabled Process: Purchase Order
Order entered into buyer’s procurement
system manually or via replenishment system
Purchase Order File Transmittedto Seller’sEDI server
Buyer’sEDI
RoutineInitiated
Seller’sEDI ServerReceives
Order
Order fulfillment activities initiated
at seller
6-16
Electronic Data Interchanges (EDI)
Information Technology Examples
Similar Processes for other transaction flows: Shipping Notification, Invoicing, Payments, etc,
Legacy Information Flow: Purchase Order
Order manually entered into buyer’s procurement system
Purchaseorder
generated
Purchaseorder
transmitted
Purchaseorder
rreceived
Order manually entered into sellers finance
system
EDI Enabled Process: Purchase Order
Order entered into buyer’s procurement
system manually or via replenishment system
Sometimes, a third party service is used
to broker the EDI transactions
Buyer’sEDI
RoutineInitiated
Seller’sEDI ServerReceives
Order
Order fulfillment activities initiated
at seller
EDI VANValue Added
Network
6-17
Bar Coding
Information Technology Examples
9
• Sequence of machine-readable parallel bars derive the 1 dimensional (1D) barcodes
• Patterns of squares, dots, hexagons and other geometric patterns within images termed 2 dimensional (2D) barcodes
• Widely applicable to logistics• Automate inventory• Sorting and routing• Updating information systems
• Enables quick data capture• More information being encoded & captured• Radio frequency (RF) tagging becoming
commonplace
6-18
Radio Frequency ID (RFID)
Information Technology Examples
• RFID tags use radio frequency to transmit data for human or machine processing
• Objects can “talk” to a network without human intervention
• Breaks line-of-sight requirement for product identification & reduces data latency
• Passive: Operational power scavenged from reader radiated power
• Semi-passive: Operational power provided by battery
• Active: Operational power provided by battery - transmitter built into tag
• Mandates from major retailers & DoD are accelerating proliferation of RFID
PASSIVE
PASSIVE
SEMI-PASSIVE
ACTIVE
6-19
Transportation Management Systems (TMS)
Information Technology Examples
• Software that functionally provides:– Load building– Optimization– Dynamic routing– Carrier selection– Tendering– Tracking– Event triggering– Reporting
• Often integrates with larger ERP application suite
• May be delivered by outsourced 3rd party logistics (3PL) provider
6-20
Warehouse Management Systems (WMS) Basics
Information Technology Examples
• WMS facilitate the control of material movement & storage & the processingof shipping, receiving, putaway, picking transactions in a warehouse
• WMS continue to expand into supply chain execution systems to tap the value that comes from collaborating with supply chain partners
• The distinction between WMS and TMS is already blurred and will only get fuzzier as these products evolve.
Slotting Receiving Putaway Replenishment Parcelmanifesting
Labormanagement Pick Pack Quality
assurance TMS
EDI interfacesand Internet Ship Cycle
countInventory
management RF module
YardManagement
Value-addedservices
Material HandlingIntegration
Order Mgmtsystem integration
Planningintegration
ERPintegration
RFID
Adapted from Peters, J. Eric and Andrew J. Hogenson (1999), “New Directions for the Warehouse,” Supply Chain Management Review, Global Supplement Spring, pp. 23-26.
6-21
Enterprise Resource Planning suits (ERP)
Information Technology Examples
Source SAP AG
• ERP systems are multimodule application software platforms that help organizations manage the important parts of their businesses.
• ERP systems branch out to include supplier relationship management, customer relationship management, and other supply chain components
• ERP systems provide a mechanism for supply chain members to efficiently share information
6-22
Agenda
Introduce Your New Professor
Discuss Process Selection and Flow Structures
Discuss Process & Info Technology Impacts
Discuss Facility Layout Design Considerations
Introduce Line Balancing Concepts
6-23
Facility Layout Defined
Facility layout can be defined as the process by which the placement of: Stock-holding points
Machines Workstations
Workgroups Departments
within a facility are determined.
6-24
Example Facility Layout
6-25
Basic Objective Facilitate a smooth flow of work, material, and information through
the system Supporting objectives
1. Facilitate product or service quality2. Use workers and space efficiently3. Avoid bottlenecks4. Minimize material handling costs5. Eliminate unnecessary movement of workers or material6. Minimize production time or customer service time7. Design for safety
Layout Design Objectives and Basic Types
LO 6.5
Layout Types
Product Layout: uses standardized processing operations to achieve smooth, rapid, high volume flow.
Process Layout: can handle varied or intermittent processing requirements
Fixed-Position Layout: product or project remains stationary, and workers, materials, and equipment are moved as needed.
6-26
Product layout Layout that uses standardized processing
operations to achieve smooth, rapid, high-volume flow
Product Layouts: Repetitive Processing
Used for Repetitive ProcessingRepetitive or Continuous
Raw materialsor customer Finished
itemStation
2 Station
3Station
4
Material and/or labor
Material and/or labor
Material and/or labor
Material and/or labor
Station 1
LO 6.6
6-27
Product Layout Examples
LO 6.6
Facilities are organized by product, product flow is dominant consideration
Typically High volume, low variety products Found in discrete unit manufacturing or continuous process
manufacturing settings
6-28
Product-Focused Strategy Pros & Cons
LO 6.6
Advantageslower labor skillseasier production planning and controlhigher equipment utilization
Disadvantageslower product flexibilitymore specialized (customized)
equipmentusually higher capital investment
6-29
Process layoutsLayouts that can handle varied processing
requirements
Process Layouts: Non-repetitive Processing
Used for Intermittent processingJob Shop or Batch
Dept. A
Dept. B Dept. D
Dept. C
Dept. F
Dept. E
LO 6.7
6-30
Process Layouts: Position of equipment is dominant consideration Similar process / equipment are group together (eg. all drill
presses grouped) Typically Low volume, high variety products ‘Jumbled’ flow, may also be called "Intermittent process" or "Job
shop"
6-31
Advantagesgreater process flexibilitymore general purpose equipmentlower initial capital investment
Disadvantagesmore “specialist” trained personnel
requiredmore difficult production planning and
control
Process-Focused Strategy Pros & Cons
6-32
Fixed Position layout Layout in which the product or project remains
stationary, and workers, materials, and equipment are moved as needed
Fixed Position Layouts
6-33
Combination LayoutsSome operational environments use a
combination of the three basic layout types: Hospitals Supermarket Shipyards
Some organizations are moving away from process layouts in an effort to capture the benefits of product layouts Cellular manufacturing - Layout in which workstations
are grouped into a cell that can process items that have similar processing requirements.
The cells become, in effect, miniature versions of product layouts
6-34
Agenda
Introduce Your New Professor
Discuss Process Selection and Flow Structures
Discuss Process & Info Technology Impacts
Discuss Facility Layout Design Considerations
Introduce Line Balancing Concepts
6-35
The goal of a product layout is to arrange workers or machines in the sequence that operations need to be performed
Designing Product Layouts:Line Balancing
LO 6.8
6-36
Line Balancing: Key Criteria = Cycle TimeCycle time
The maximum time allowed at each workstation to complete its set of tasks on a unit
Cycle time also establishes the output rate of a line
timeCycledayper timeOperating rateOutput
rateoutput Desireddayper timeOperating timeCycle
LO 6.8
6-37
Station 1Minutes per Unit 6
Station 2
7
Station 3
3
Assembly Line Balancing ConceptsQuestion: Suppose you load work into the three work stations below such that each will take the corresponding number of minutes as shown. What is the minimum possible cycle time of this line?
A) 6 minutes?B) 7 Minutes?C) 16 minutes?D) 10 minutes?
6-38
Station 1Minutes per Unit 6
Station 2
7
Station 3
3
Assembly Lines Balancing ConceptsQuestion: Suppose you load work into the three work stations below such that each will take the corresponding number of minutes as shown. What is the minimum possible cycle time of this line?
Answer: The minimum cycle time of the line is always determined by the work station taking the longest time. In this problem, the minimum cycle time of the line is 7 minutes. If these stations are running in series, there is also going to be idle time at the other two work stations.
6-39
Point of Line BalancingThrough an analysis of production lines,
managers can:
Nearly equally divides work between workstations while meeting required output
This will help maximize efficiency and minimize number of work stations
6-40
Agenda
Introduce Your New Professor
Discuss Process Selection and Flow Structures
Discuss Process & Info Technology Impacts
Discuss Facility Layout Design Considerations
Introduce Line Balancing Concepts
Next Time
6-41
Assignment
Read Chapter 6 and 8
Complete problems assigned on Blackboard
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