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Management

07
Process, Layout and Location

Linh Phuc – S1 23 24
Email: [email protected]
MSTeam: [email protected]
Talk
07
Process, Layout and Location

Linh Phuc – S1 25 26
MSTeam & Email : [email protected]
• Reading material: Chapter 6 & 8, Stevenson, W.J. (2021). Operations Management, edition
14th. New York, USA: McGraw-Hill/Irwin.

• Case study:
P. 334 - 336, Chapter 7
P. 394 - 396, Chapter 8
P. 433 - 436, Chapter 9
Jay Heizer, Barry Render (2020). Operations Management, Sustainability and Supply chain
management, edition 13th. Pearson.
Content
• Process
01

• Layout
02

• Location
03
01
Process
A. Definition of Process
B. Different Process types

Volume

Variety
 Process is one or more actions that transform inputs
into outputs.
 Continuous Flow
Very Highly
high standardized
goods or services

Mass Repetitive
High production Standardized
Volume

goods or services

Batch
Moderate Semi-standardized
goods or services

Job Shop
Low Customized goods
or services

Very Low Low Moderate High

Variety
 Advantages Disadvantages
Job Shop Able to handle a Slow, high cost per unit,
wide variety of complex planning and
work scheduling
Batch Flexibility; easy to Moderate cost per unit,
add or change moderate scheduling
products or complexity
services
Repetitive Low unit cost, high Low flexibility, high cost
volume, efficient of downtime
Continuous Very efficient, very Very rigid, lack of variety,
flow high volume costly to change, very
high cost of downtime
 Layout
01 A. Definition and Importance of
Layout
B. Different types of layout
a) Product layouts
• Definition
• Advantages & Disadvantages
• Designing – Line Balancing
b) Process layouts
• Definition
• Advantages & Disadvantages
• Designing – Closeness
Ratings
c) Fixed-position layouts
Layout is the configuration of departments, work
centers, and equipment, with particular emphasis on
movement of work (customers or materials) through the
system.
they require substantial
investments of money and
Why effort
import they involve long term
commitments, which makes
ant mistakes difficult to overcome
? they have a significant impact on
the cost and efficiency of
operations
B.a) Product Layout: Definition
Definition: Layout that uses standardized processing
operations to achieve smooth, rapid, high-volume flow

Used for Repetitive or Continuous Processing

B.a) Product Layout: Advantages & Disadvantages
Advantages Disadvantages
+ A high rate of output. ‐ The intensive division of labor usually creates
+ Low unit cost due to high volume. dull, repetitive jobs that provide little
The high cost of specialized opportunity for advancement and may lead to
equipment is spread over many morale problems and to repetitive stress injuries.
units. ‐ Poorly skilled workers may exhibit little interest
+ Labor specialization, which reduces in maintaining equipment or in the quality of
training costs and time, and results output.
in a wide span of supervision. ‐ The system is fairly inflexible in response to
+ Low material-handling cost per unit. changes in the volume of output or changes in
Material handling is simplified product or process design.
because units follow the same ‐ The system is highly susceptible to shutdowns
sequence of operations. Material caused by equipment breakdowns or excessive
handling is often automated. absenteeism because workstations are highly
+ A high utilization of labor and interdependent.
equipment. ‐ Preventive maintenance, the capacity for quick
+ The establishment of routing and repairs, and spare-parts inventories are necessary
scheduling in the initial design of expenses.
the system. These activities do not ‐ Incentive plans tied to individual output are
require much attention once the impractical because they would cause variations
system is operating. among outputs of individual workers, which
+ Fairly routine accounting, would adversely affect the smooth flow of work
purchasing, and inventory control. through the system.
B.a) Product Layout: Designing – Line Balancing

The process of assigning

tasks to workstations in
such a way that the
workstations have
approximately equal
time requirements.

Chapter 6 – Material
1
Q1: Draw a precedence diagram.

a b e
0.2 0.2 0.3
m m m
c d f g h
0.8 0.6 1.0 0.4 0.3
m m m m m

Chapter 6 – Material
1
Q2: Assuming an eight-hour workday, compute the
cycle time needed to obtain an output of 400 units
per day. The maximum time allowed at each workstation
to complete its set of tasks on a unit.
Min Cycle time = longest task time
Max Cycle time = sum of all task times

𝑂𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 𝑡𝑖𝑚𝑒
𝑂𝑢𝑡𝑝𝑢𝑡 𝑟𝑎𝑡𝑒 =
𝐶𝑦𝑐𝑙𝑒 𝑡𝑖𝑚𝑒
Q3: Determine the minimum number of workstations
required.
Groups of
individual tasks

𝑻𝒉𝒆𝒐𝒓𝒆𝒕𝒊𝒄𝒂𝒍 𝒎𝒊𝒏𝒊𝒎𝒖𝒎 𝑵𝒐. 𝒐𝒇 𝒘𝒐𝒓𝒌𝒔𝒕𝒂𝒕𝒊𝒐𝒏𝒔

𝑇𝑜𝑡𝑎𝑙 𝑡𝑎𝑠𝑘 𝑡𝑖𝑚𝑒
=
𝐶𝑦𝑐𝑙𝑒 𝑡𝑖𝑚𝑒
 Q4: Assign tasks to workstations
Heuristic (intuitive) rules:
1. Assign tasks in order of most following tasks.
2. Assign tasks in order of greatest positional weight.
Positional weight = Each task’s time + Total times of all following
tasks.
No. of
Task following Positional weight
tasks
0.2+0.2+0.3+1+0.4+0.3 =
a 5
2.4m
b 4 0.2+0.3+1+0.4+0.3 = 2.2m
c 4 0.8+0.6+1+0.4+0.3 = 3.1m
d 3 0.6+1+0.4+0.3 = 2.3m
e 3 0.3+1+0.4+0.3 = 2.0m
f 2 1+0.4+0.3 = 1.7m
g 1 0.4+0.3 = 0.7m
h 0 0.3m
Q5: Compute the resulting percent idle time and
efficiency of the system.

𝑷𝒆𝒓𝒄𝒆𝒏𝒕𝒂𝒈𝒆 𝒐𝒇 𝒊𝒅𝒍𝒆 𝒕𝒊𝒎𝒆

𝑇𝑜𝑡𝑎𝑙 𝑖𝑑𝑙𝑒 𝑡𝑖𝑚𝑒 𝑝𝑒𝑟 𝑐𝑦𝑐𝑙𝑒
=
𝑁𝑜. 𝑜𝑓 𝑤𝑜𝑟𝑘𝑠𝑡𝑎𝑡𝑖𝑜𝑛 × 𝐶𝑦𝑐𝑙𝑒 𝑡𝑖𝑚𝑒

Efficiency = 100% − 𝑃𝑒𝑟𝑐𝑒𝑛𝑡𝑎𝑔𝑒 𝑜𝑓 𝑖𝑑𝑙𝑒 𝑡𝑖𝑚𝑒

B.b) Process Layout: Definition
Definition: Layout that can handle varied processing
requirements

Used for Intermittent processing

Job Shop or Batch
B.b) Process Layout: Advantages & Disadvantages
Advantages Disadvantages
+ The systems can handle a variety of ‐ In-process inventory costs can be high if
processing requirements. batch processing is used in manufacturing
+ The systems are not particularly vulnerable systems.
to equipment failures. ‐ Routing and scheduling pose continual
+ General-purpose equipment is often less challenges.
costly than the specialized equipment used ‐ Equipment utilization rates are low.
in product layouts and is easier and less ‐ Material handling is slow and inefficient,
costly to maintain. and more costly per unit than in product
+ It is possible to use individual incentive layouts.
systems. ‐ Job complexities often reduce the span of
supervision and result in higher
supervisory costs than with product
layouts.
‐ Special attention necessary for each
product or customer (e.g., routing,
scheduling, machine setups) and low
volumes result in higher unit costs than
with product layouts.
‐ Accounting, inventory control, and
purchasing are much more involved than
with product layouts.
 B.b) Process Layout: Design - Closeness Ratings
Those departments which are close should:
 use the same equipment or facilities.
 share the same personnel or records.
 require sequence of workflow.
 need ease of communication.
 would NOT create unsafe or unpleasant conditions.
 perform similar work is performed.
 B.c) Fixed-position layout

Definition: Layout in which the product or

project remains stationary. Workers, materials,
and equipment are moved as needed
03 Location
A. General procedure
B. Factor in identifying a Country
C. Factor in identifying a Region,
Community and Site
1. Decide on the criteria to use for evaluating location
alternatives, such as increased revenues, decreased cost, or
community service.

2. Identify important factors, such as the location of markets or

raw materials. The factors will differ depending on the type of
facility. For example, retail, manufacturing, distribution,
health care, and transportation all have differing factors that
guide their location decisions.

3. Develop location alternatives:

a) Identify a country or countries for a location.
b) Identify the general region for a location.
c) Identify a small number of community alternatives.
d) Identify site alternatives among the community
alternatives.

4. Evaluate the alternatives and make a selection.