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WU BU 347 - Process Layout

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Process LayoutHow Process Layout fits the Operations Management PhilosophyLayout PlanningLayout Planning QuestionsLocation DimensionsAbsolute Locations vs. Relative LocationsStrategic IssuesPerformance CriteriaTypes of LayoutsA Flexible Flow LayoutLine Flow LayoutCreating Hybrid LayoutsSlide 13Group Technology (GT)Before Group TechnologyApplied Group TechnologyDesigning Flexible-Flow LayoutsGather InformationCloseness MatrixProposed Block PlanSlide 21Distance MeasuresApplication 8.1Slide 24Slide 25Slide 26Application 8.2Slide 28Slide 29Other Decision Support ToolsWarehouse Layouts Out-and-back PatternWarehouse Layouts Zone SystemOffice LayoutsDesigning Line-Flow LayoutsLine Balancing Example 8.3Line Balancing Green Grass, Inc.Desired Output and Cycle TimeTheoretical MinimumOutput Rate and Cycle Time Example 8.4Calculations for Example 8.4 continuedSlide 41Application 8.3Slide 43Slide 44Application 8.4 Finding a SolutionOther ConsiderationsSolved Problem 1Slide 48Slide 49Solved Problem 2 Precedence DiagramSolved Problem 2 Line Balancing ProcessSolved Problem 2 Line Balancing Solution© 2007 Pearson EducationD DD DG GG GG GM MM MM MA AA ALL LL LL LLProcess LayoutChapter 8Chapter 8© 2007 Pearson EducationHow Process Layout fits the Operations Management Philosophy Operations As a Competitive WeaponOperations StrategyProject ManagementProcess StrategyProcess AnalysisProcess Performance and QualityConstraint ManagementProcess LayoutLean SystemsSupply Chain StrategyLocationInventory ManagementForecastingSales and Operations PlanningResource PlanningScheduling© 2007 Pearson Education Layout PlanningLayout planning is planning that involves decisions about the physical arrangement of economic activity centers needed by a facility’s various processes.Layout plans translate the broader decisions about the competitive priorities, process strategy, quality, and capacity of its processes into actual physical arrangements.Economic activity center: Anything that consumes space -- a person or a group of people, a customer reception area, a teller window, a machine, a workstation, a department, an aisle, or a storage room.© 2007 Pearson EducationBefore a manager can make decisions regarding physical arrangement, four questions must be addressed.1. What centers should the layout include?2. How much space and capacity does each center need?3. How should each center’s space be configured?4. Where should each center be located? Layout Planning Questions© 2007 Pearson EducationLocation DimensionsThe location of a center has two dimensions:1. Relative location: The placement of a center relative to other centers.2. Absolute location: The particular space that the center occupies within the facility.© 2007 Pearson EducationAbsolute Locations vs. Relative LocationsOriginal layoutFrozen foodsDry groceriesBreadVegetablesMeatsFrozen foodsDry groceriesBreadVegetablesMeatsRevised layoutFour of the absolute locations have changed but not the relative locations.© 2007 Pearson EducationStrategic IssuesLayout choices can help communicate an organization’s product plans and competitive priorities.Altering a layout can affect an organization and how well it meets its competitive priorities in the following ways:1. Increasing customer satisfaction and sales at a retail store.2. Facilitating the flow of materials and information.3. Increasing the efficient utilization of labor and equipment.4. Reducing hazards to workers.5. Improving employee morale.6. Improving communication.© 2007 Pearson EducationPerformance CriteriaCustomer satisfactionLevel of capital investmentRequirements for materials handlingEase of stockpickingWork environment and “atmosphere”Ease of equipment maintenanceEmployee and internal customer attitudesAmount of flexibility neededCustomer convenience and levels of sales© 2007 Pearson EducationTypes of LayoutsFlexible-flow layout: A layout that organizes resources (employees) and equipment by function rather than by service or product.Line-flow layout: A layout in which workstations or departments are arranged in a linear path.Hybrid layout: An arrangement in which some portions of the facility have a flexible-flow and others have a line-flow layout.Fixed-position layout: An arrangement in which service or manufacturing site is fixed in place; employees along with their equipment, come to the site to do their work.© 2007 Pearson EducationA Flexible Flow LayoutFoundryMilling machinesLathesGrindingPainting DrillsOfficeWeldingForgingA job shop has a flexible-flow layout.© 2007 Pearson EducationLine Flow LayoutStation 1 Station 2 Station 3 Station 4A production line has a line-flow layout.© 2007 Pearson EducationCreating Hybrid LayoutsLayout flexibility is the property of a facility to remain desirable after significant changes occur or to be easily and inexpensively adopted in response to changes.A One-worker, multiple-machines (OWMM) cell is a one-person cell in which a worker operates several different machines simultaneously to achieve a line flow.A Cell is two or more dissimilar workstations located close together through which a limited number of parts or models are processed with line flows.© 2007 Pearson EducationMachine 1Machine 2Machine 3Machine 4Machine 5Materials inFinished goods outOne Worker, One Worker, Multiple Machines Multiple Machines© 2007 Pearson EducationGroup Technology (GT)Group Technology (GT) is an option for achieving line-flow layouts with low-volume processes; this technique creates cells not limited to just one worker and has a unique way of selecting work to be done by the cell.The GT method groups parts or products with similar characteristics into families and sets aside groups of machines for their production.© 2007 Pearson EducationBefore Group TechnologyDrillingD DD DGrindingG GG GG GMillingM MM MM MAssemblyA AA ALathingReceiving and shipping LL LL LL LLJumbled flows in a job shop without GT cellsJumbled flows in a job shop without GT cells© 2007 Pearson EducationApplied Group TechnologyLine flows in a job shop with three GT cells Line flows in a job shop with three GT cells Cell 3L MGGCell 1Cell 2Assembly areaAALMDLLMShippingDReceivingG© 2007 Pearson EducationDesigning Flexible-Flow LayoutsStep 1: Gather informationSpace requirements by centerAvailable spaceCloseness factors: which centers need to be located close to one another.Closeness matrix: A

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