CHAPTER 6

Process selection refers to deciding on the way production of goods or services will be organized.

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.

PROCESS TYPES

Job Shop. A job shop usually operates on a relatively small scale. It is used when a low volume of
high-variety goods or services will be needed. Processing is intermittent
Batch. Batch processing is used when a moderate volume of goods or services is desired, and it can
handle a moderate variety in products or services. The equipment need not be as flexible as in a job
shop, but processing is still intermittent.
Repetitive. When higher volumes of more standardized goods or services are needed, repetitive
processing is used. The standardized output means only slight flexibility of equipment is needed. Skill
of workers is generally low.
Continuous. When a very high volume of nondiscrete, highly standardized output is desired, a
continuous system is used. These systems have almost no variety in output and, hence, no need for
equipment flexibility.
Project. A project is used for work that is nonroutine, with a unique set of objectives to be
accomplished in a limited time frame.
Product or Service Profiling Linking key product or service requirements to process capabilities. Can be used
to avoid any inconsistencies by identifying key product or service dimensions and then selecting appropriate
processes

Sustainable Production of Goods and Services Business organizations are facing increasing pressure from a
variety of sources 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: non-polluting; 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.”

Lean Process Design is guided by general principles that are discussed more fully in a later chapter. One
principle of particular interest here is waste reduction, which relates to sustainability objectives. Lean design
also focuses on variance reduction in workload over the entire process to achieve level production and
thereby improve process flow.

Technological innovation The discovery and development of new or improved products, services, or
processes for producing or providing them.

Technology The application of scientific discoveries to the development and improvement of products and
services and operations processes.

Process technology includes methods, procedures, and equipment used to produce goods and provide
services. This not only involves processes within an organization, it also extends to supply chain processes

Information technology (IT) is the science and use of computers and other electronic equipment to store,
process, and send information. IT is heavily ingrained in today’s business operations.

Automation is machinery that has sensing and control devices that enable it to operate automatically
 Automated services are also an option
Automation offers a number of advantages over human labor. It has low variability, whereas
it is difficult for a human to perform a task in exactly the same way, in the same amount of time, and
on a repetitive basis.
Automation is frequently touted as a strategy necessary for competitiveness.
Decision makers must carefully examine the issue of whether to automate or the degree to
which to automate, so that they clearly understand all the ramifications.
Fixed automation is the least flexible. It uses high-cost, specialized equipment for a fixed sequence of
operations. Low cost and high volume are its primary advantages.

Programmable automation involves the use of high-cost, general-purpose equipment controlled by a

computer program that provides both the sequence of operations and specific details about each operation.
This type of automation has the capability of economically producing a fairly wide variety of low-volume
products in small batches.

Computer-aided manufacturing (CAM) The use of computers in process control.

Numerically controlled (N/C) machines Machines that perform operations by following

mathematical processing instructions

Individual machines often have their own computer; this is referred to as computerized numerical
control (CNC)
One computer may control a number of N/C machines, which is referred to as direct numerical
control (DNC)
Flexible manufacturing system (FMS) A group of machines designed to handle intermittent processing
requirements and produce a variety of similar products.

Computer-integrated manufacturing (CIM) A system for linking a broad range of manufacturing activities
through an integrating computer system.

PROCESS STRATEGY

Importance of flexibility as a competitive strategy is stressed. However, flexibility does not always offer the
best choice in processing decisions. Flexible systems and equipment are often more expensive and not as
efficient as less flexible alternatives.

STRATEGIC RESOURCE ORGANIZATION: FACILITIES 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. This section describes the main types of
layout designs and the models used to evaluate design alternatives.

(1) they require substantial investments of money and effort.

(2) they involve long-term commitments, which makes mistakes difficult to overcome

(3) they have a significant impact on the cost and efficiency of operations.

Basic Objective Of Layout Design

To facilitate attainment of product or service quality.

To use workers and space efficiently.
To avoid bottlenecks.
To minimize material handling costs.
To eliminate unnecessary movements of workers or materials.
 To minimize production time or customer service time.
To design for safety.
Product layouts are most conducive to repetitive processing

Process layouts are used for intermittent processing

Fixed-position layouts are used when projects require layouts

PRODUCT LAYOUTS are used to achieve a smooth and rapid flow of large volumes of goods or customers
through a system. This is made possible by highly standardized goods or services that allow highly
standardized, repetitive processing.

Production line Standardized layout arranged according to a fixed sequence of production tasks.

Assembly line Standardized layout arranged according to a fixed sequence of assembly tasks

U-Shaped Layouts. Although a straight production line may have intuitive appeal, a U-shaped line (see Figure
6.5 ) has a number of advantages that make it worthy of consideration. One disadvantage of a long, straight
line is that it interferes with cross-travel of workers and vehicles.

Process layouts (functional layouts) are designed to process items or provide services that involve a variety
of processing requirements. The variety of jobs that are processed requires frequent adjustments to
equipment.

Process layouts are quite common in service environments

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.
Intermittent processing discontinuous work flow; Nonrepetitive processing.

FIXED-POSITION LAYOUT Layout in which the product or project remains stationary, and workers, materials,
and equipment are moved as needed.

Combination Layouts

The three basic layout types are ideal models, which may be altered to satisfy the needs of a particular
situation. It is not hard to find layouts that represent some combination of these pure types.

Cellular Layouts

Cellular Production. Cellular production is a type of layout in which workstations are grouped into what is
referred to as a cell.

EFFECTIVE CELLULAR LAYOUT DESIGN

Single-minute exchange of die (SMED) enables an organization to quickly convert a machine or process to
produce a different (but similar) product type.

Right-sized equipment is often smaller than equipment used in traditional process layouts, and
mobile, so that it can quickly be reconfigured into a different cellular layout in a different location.
Group Technology. The grouping into part families of items with similar design or manufacturing
characteristics.

SERVICE LAYOUTS
As is the case with manufacturing, service layouts can often be categorized as product, process, or fixed-
position layouts.

Warehouse and Storage Layouts. The design of storage facilities presents a different set of factors
than the design of factory layouts.
Retail Layouts. The objectives that guide design of manufacturing layouts often pertain to cost
minimization and product flow.
Office Layouts. Office layouts are undergoing transformations as the flow of paperwork is replaced
with the increasing use of electronic communications.
Automation in Services. One way to improve productivity and reduce costs in services is to remove
the customer from the process as much as possible.
Line balancing The process of assigning tasks to workstations in such a way that the workstations have
approximately equal time requirements.

Cycle time The maximum time allowed at each workstation to complete its set of tasks on a unit.

Precedence diagram A diagram that shows elemental tasks and their precedence requirements.