Chapter 6 Process Selection and Facility Layout Summary: Objective: Teach you about Process Selection and Facility

Layout. Process Selection is basically the way goods or services are made or delivered, which influences numerous aspects of an organization, including capacity planning, layout of facilities, equipment and design of work systems. Process selection is primarily used during the planning of new products or services that is subject to technological advances and competition. Process selection is dependent on the company's process strategy, which has two main components: capital intensity and process flexibility. Capacity planning is the process of determining the production capacity needed by an organization to meet changing demands for its products.[1] In the context of capacity planning, "design capacity" is the maximum amount of work that an organization is capable of completing in a given period, "effective capacity" is the maximum amount of work that an organization is capable of completing in a given period due to constraints such as quality problems, delays, material handling, etc. The phrase is also used in business computing as a synonym for Capacity Management. Capital Intensity is simply the combination of equipment and labor that an organization uses to accomplish some objective. Process Flexibility is as its name implies: how well a system can be adjusted to meet changes in processing requirements that are interdependent on variables such as product or service design, volume of production, and technology. Facility Layout is simply the way a facility is arranged in order to maximize processes that are not only efficient but effective towards the overall organizational goal. It is also dependent on process selection. Process Type Many organisations feel that the issues and problems they face are unique to themselves. Fortunately this is not true and therefore we are able to learn from others mistakes and ideas. To learn from others we need to understand our organisations fundamental process type. Once we understand our process type we can apply the appropriate best practices which have been deployed effectively by other similar process type organisations to cause positive gains. The different process types are:

Job shop in which Product volumes are generally low and relatively unique from one order to another. The key competitive strategy is based on custom design, fast reaction and the ability to control moving bottlenecks, and Profitability is influenced amongst other things by our ability to estimate costs, control scrap and minimise inventory. Assembly in which Product volumes are reasonably high and are often repeated from period to period The key competitive strategy is based on consistency of quality, cost and production rates, and Profitability is influenced amongst other things by our ability to improve methods, control rework and minimise downtime. Batch in which Product flow is not continuous as multiples of the same product are produced at each process as a unique batch before being passed onto the next process. The key competitive strategy is based on quality and production lead-times, and Profitability is influenced amongst other things by our ability to improve methods, control rework, minimise downtime and maximise batch yield. Continuous in which Product flow is continuous with high volumes of very few products. The key competitive strategy is based on cost and product consistency, and Profitability is influenced amongst other things by our ability to optimise the recovery of our high investment in equipment. A job shop is a type of manufacturing process in which small batches of a variety of custom products are made. In the job shop process flow, most of the products produced require a unique set-up and sequencing of process steps. Job shops are usually businesses that perform custom parts manufacturing for other businesses. In the job shop, similar equipment or functions are grouped together, such as

all drill presses in one area and grinding machines in another in a process layout. The layout is designed to minimize material handling, cost, and work in process inventories. When an order arrives in the job shop, the part being worked on travels throughout the various areas according to a sequence of operations. Not all jobs will use every machine in the plant. Employees in a job shop are typically highly skilled craft employees who can operate several different classes of machinery. These workers are paid higher wages for their skill levels. Due to their high skill level, job shop employees need less supervision. Manufacturing companies put a lot of thought into the way their facilities are laid out. Strategic process selection and design are crucial to maximizing productivity and reducing costs in manufacturing operations. Managers put different facilities design philosophies into practice to reduce waste, increase output and decrease the time and manpower required for each work task. Process layouts and product layouts are two popular facilities layout philosophies best suited to different production situations. Understanding the difference between process and product layout manufacturing can give you insight for structuring your own manufacturing operation. Process Layout In manufacturing engineering, process layout is a design for the floor plan of a plant which aims to improve efficiency by arranging equipment according to its function.[1] The production line should ideally be designed to eliminate waste in material flows, inventory handling and management.[2] In process layout, the work stations and machinery are not arranged according to a particular production sequence. Instead, there is an assembly of similar operations or similar machinery in each department (for example, a drill department, a paint department, etc.) Product Layout In manufacturing engineering, a product layout refers to a production system where the work stations and equipment are located along the line of production, as with assembly lines. Usually, work units are moved along a line (not necessarily a geometric line, but a set of interconnected work stations) by a conveyor. Work is done in small amounts at each of the work stations on the line. To use the product layout, the total work to be performed must be dividable into small tasks that can be assigned to each of the workstations. Because the work stations each do small amounts of work, the stations utilize

specific techniques and equipment tailored to the individual job they are assigned. This can lead to a higher rate of production.