Operations Management/Ch. 8 Facility Design and Layout
2007 Thomson South-Western Operations Management/Ch. 8 Facility Design and Layout 2007 Thomson South-Western 1 Facility Design and Layout CHAPTER 8 OPERATIONS MANAGEMENT An Integrated Goods and Services Approach JAMES R. EVANS AND DAVID A. COLLIER 2 Operations Management/Ch. 8 Facility Design and Layout 2007 Thomson South-Western 1. To understand different types of layout patterns, how they relate to process choice, and some of the methods to evaluate alternative layout plans.
2. To understand the key issues involved in designing product layouts and balance assembly lines to enable efficient and economical production of goods and services.
3. To understand the major issues involved in designing process layouts, and to be able to apply simple tools to develop a good process layout design. Chapter 8 Learning Objectives 3 Operations Management/Ch. 8 Facility Design and Layout 2007 Thomson South-Western 4. To understand the issues that operations managers must address in designing individual workstations to meet productivity, quality, and employee safety requirements.
5. To understand the importance of addressing the social and environmental aspects of work in designing jobs and team-based processes to enhance employee motivation and satisfaction.
Chapter 8 Learning Objectives 4 Operations Management/Ch. 8 Facility Design and Layout 2007 Thomson South-Western Chapter 8 Facility Design and Layout Facility layout refers to the specific arrangement of physical facilities. Facility-layout studies are necessary whenever (1) a new facility is constructed, (2) there is a significant change in demand or throughput volume, (3) a new good or service is introduced to the customer benefit package, or (4) different processes, equipment, and/or technology are installed. 5 Operations Management/Ch. 8 Facility Design and Layout 2007 Thomson South-Western Purposes of layout studies are to: minimize delays in materials handling and customer movement, maintain flexibility, use labor and space effectively, promote high employee morale and customer satisfaction, provide for good housekeeping and maintenance, & enhance sales as appropriate in manufacturing and service facilities. Chapter 8 Facility Design and Layout 6 Operations Management/Ch. 8 Facility Design and Layout 2007 Thomson South-Western Other Facility Layout Issues Essentially, a good layout should support the ability of operations to accomplish its mission. If the facility layout is flawed in some way, process efficiency and effectiveness suffers. In manufacturing, facility layout is generally unique, and changes can be accomplished without much difficulty.
Chapter 8 Facility Design and Layout 7 Operations Management/Ch. 8 Facility Design and Layout 2007 Thomson South-Western Other Facility Layout Issues For service firms, however, the facility layout is often duplicated in hundreds or thousands of sites. This makes it extremely important that the layout be designed properly, as changes can be extremely costly. Also see Supply Chain Design for Multisite Services in Chapter 9.
Chapter 8 Facility Design and Layout 8 Operations Management/Ch. 8 Facility Design and Layout 2007 Thomson South-Western Types of Facility Layouts A product layout is an arrangement based on the sequence of operations that are performed during the manufacturing of a good or delivery of a service. Examples: winemaking industry, credit card processing, Subway sandwich shops, paper manufacturers, insurance policy processing, and automobile assembly lines. Chapter 8 Facility Design and Layout 9 Operations Management/Ch. 8 Facility Design and Layout 2007 Thomson South-Western Types of Facility Layouts Product Layout Advantages of product layouts include lower work-in-process inventories, shorter processing times, less material handling, lower labor skills, and simple planning and control systems. Disadvantages include a breakdown at one workstation can cause the entire process to shut down, a change in product design or the introduction of new products may require major changes in the layout, and little job satisfaction. Chapter 8 Facility Design and Layout 10 Operations Management/Ch. 8 Facility Design and Layout 2007 Thomson South-Western Exhibit 8.1 Product Layout for Wine Manufacturer 11 Operations Management/Ch. 8 Facility Design and Layout 2007 Thomson South-Western Types of Facility Layouts A process layout consists of a functional grouping of equipment or activities that do similar work. Examples: legal offices, shoe manufacturing, jet engine turbine blades, and hospitals use a process layout. Chapter 8 Facility Design and Layout 12 Operations Management/Ch. 8 Facility Design and Layout 2007 Thomson South-Western Types of Facility Layouts Process Layout Advantages of process layouts include a lower investment in general purpose equipment, and the diversity of jobs inherent in a process layout can lead to increased worker satisfaction. Disadvantages include high movement and transportation costs, more complicated planning and control systems, longer total processing time, higher in-process inventory or waiting time, and higher worker-skill requirements. Chapter 8 Facility Design and Layout 13 Operations Management/Ch. 8 Facility Design and Layout 2007 Thomson South-Western Exhibit 8.2 Process Layout for a Machine Shop 14 Operations Management/Ch. 8 Facility Design and Layout 2007 Thomson South-Western Cellular/Group Layout Group technology, or cellular manufacturing, classifies parts into families so that efficient mass-production-type layouts can be designed for the families of goods or services. In a group, or cellular, layout, the design is not according to the functional characteristics of equipment, but rather by groups of different equipment (called cells) needed for producing families of goods or services. Chapter 8 Facility Design and Layout 15 Operations Management/Ch. 8 Facility Design and Layout 2007 Thomson South-Western Cellular/Group Layout Group layouts are used to centralize people expertise and equipment capability. Examples: groups of different equipment (called cells) needed for producing families of goods or services, group legal (labor law, bankruptcy, divorce, etc.) or medical specialties (maternity, oncology, surgery, etc.). Chapter 8 Facility Design and Layout 16 Operations Management/Ch. 8 Facility Design and Layout 2007 Thomson South-Western Exhibit 8.3 Cellular Manufacturing Layout Source: E. Paul Degarmo, J. T. Black, and Ronald A. Kosher, Materials and Processes in Manufacturing, 9th Edition, John Wiley & Sons, 2003. 17 Operations Management/Ch. 8 Facility Design and Layout 2007 Thomson South-Western Exhibit 8.4 Two Part Families 18 Operations Management/Ch. 8 Facility Design and Layout 2007 Thomson South-Western Exhibit 8.5 Process Layout Without Part Families
19 Operations Management/Ch. 8 Facility Design and Layout 2007 Thomson South-Western Exhibit 8.6 Group Layout Based on Part Families
20 Operations Management/Ch. 8 Facility Design and Layout 2007 Thomson South-Western Exhibit 7.7 Exhibit 8.7 Process (Job Shop) Layout at Rockwells Dallas Factory 21 Operations Management/Ch. 8 Facility Design and Layout 2007 Thomson South-Western Exhibit 8.8 Cellular Layout at Rockwells Dallas Factory 22 Operations Management/Ch. 8 Facility Design and Layout 2007 Thomson South-Western A fixed-position layout consolidates the resources necessary to manufacture a good or deliver a service, such as people, materials, and equipment, in one physical location. The production of large items such as heavy machine tools, airplanes, buildings, locomotives, and ships is usually accomplished in a fixed position layout.
Chapter 8 Facility Design and Layout 23 Operations Management/Ch. 8 Facility Design and Layout 2007 Thomson South-Western Fixed-position layout This fixed-position layout is synonymous with the "project" classification of processes presented in Chapter 7. Service-providing firms also use fixed- position layouts; examples include major hardware and software installations, sporting events, and concerts. Chapter 8 Facility Design and Layout 24 Operations Management/Ch. 8 Facility Design and Layout 2007 Thomson South-Western Exhibit 8.9 Comparison of Basic Layout Patterns
25 Operations Management/Ch. 8 Facility Design and Layout 2007 Thomson South-Western Materials Handling Issues and Systems Industrial trucks Fixed-path conveyor systems Overhead cranes Automated storage and retrieval systems (see OM Spotlight: Ocular Sciences Contact Lenses Distribution Center) Tractor-trailer systems Automated guided vehicles (AGVs) Chapter 8 Facility Design and Layout 26 Operations Management/Ch. 8 Facility Design and Layout 2007 Thomson South-Western Exhibit 8.10 Ocular Sciences Contact Lenses Distribution Center
27 Operations Management/Ch. 8 Facility Design and Layout 2007 Thomson South-Western Chapter 8 Facility Layout in Service Organizations Facility Design in Service Organizations
Service organizations use product, process, group, and fixed-position layouts to organize different types of work. Process Layout Examples Libraries place reference materials, serials, and microfilms into separate areas; hospitals group services by function also, such as maternity, oncology, surgery, and X-ray; and insurance companies have office layouts in which claims, underwriting, and filing are individual departments. 28 Operations Management/Ch. 8 Facility Design and Layout 2007 Thomson South-Western Chapter 8 Facility Layout in Service Organizations Facility Design in Service Organizations
Product Layout Examples Service organizations that provide highly standardized services tend to use product layouts. For example, Exhibit 8.11 shows the layout of the kitchen at a small pizza restaurant that has both dine-in and delivery. Lenscrafter Uses Both Process and Product Layouts In Exhibit 6.14 we see the customer contact area is arranged in a process layout. In the lab area, however, where lenses are manufactured, a group layout is used. 29 Operations Management/Ch. 8 Facility Design and Layout 2007 Thomson South-Western Exhibit 8.11 Product Layout for a Pizza Kitchen 30 Operations Management/Ch. 8 Facility Design and Layout 2007 Thomson South-Western Designing Product Layouts A product layout is an arrangement based on the sequence of operations that are performed during the manufacturing of a good or delivery of a service.
Flow-blocking delay occurs when a work center completes a unit but cannot release it because the in-process storage at the next stage is full. The worker must remain idle until storage space becomes available.
Lack-of-work delay occurs whenever one stage completes work and no units from the previous stage are awaiting processing. Chapter 8 Facility Design and Layout 31 Operations Management/Ch. 8 Facility Design and Layout 2007 Thomson South-Western Exhibit 8.12 A Typical Manufacturing Workstation Layout 32 Operations Management/Ch. 8 Facility Design and Layout 2007 Thomson South-Western Exhibit 8.13 Product Layout Design Options 33 Operations Management/Ch. 8 Facility Design and Layout 2007 Thomson South-Western Chapter 8 Assembly Line Balancing Assembly-Line Balancing An assembly line is a product layout dedicated to combining the components of a good or service that has been created previously. Assembly line balancing is a technique to group tasks among workstations so that each workstation has in the ideal case the same amount of work. Examples: winemaking industry, credit card processing, Subway sandwich shops, paper manufacturers, insurance policy processing, and automobile assembly lines. 34 Operations Management/Ch. 8 Facility Design and Layout 2007 Thomson South-Western Chapter 8 Assembly Line Balancing Assembly-Line Balancing
To begin, we need to know three types of information to balance an assembly line: the set of tasks to be performed and the time required to perform each task (work content),
the precedence relations among the tasks that is, the sequence in which tasks must be performed, and
the desired output rate or forecast of demand for the assembly line. 35 Operations Management/Ch. 8 Facility Design and Layout 2007 Thomson South-Western Exhibit 8.14 A Three-Task Assembly Line 36 Operations Management/Ch. 8 Facility Design and Layout 2007 Thomson South-Western Chapter 8 Assembly Line Balancing Cycle time is the interval between successive outputs coming off the assembly line.
In the three-operation example shown in Exhibit 8.14, if we use only one workstation, the cycle time is 1 minute; that is, one completed assembly is produced every minute.
If two workstations are used, as just described, the cycle time is 0.5 minute.
If three workstations are used, the cycle time is still 0.5 minute, because task A is the bottleneck, or slowest operation. The line can produce only one assembly every 0.5 minute. 37 Operations Management/Ch. 8 Facility Design and Layout 2007 Thomson South-Western Chapter 8 Assembly Line Balancing Cycle time is the interval between successive outputs coming off the assembly line.
Cycle time is related to the output rate (R) by the following equation C = A/R (8.2) where A = available time to produce the output.
The output rate is normally the demand forecast, adjusted for on-hand inventory if appropriate, or orders released to the factory. Both A and R must have the same time units (hour, day, week, and so on).
38 Operations Management/Ch. 8 Facility Design and Layout 2007 Thomson South-Western Chapter 8 Assembly Line Balancing Minimum number of workstations required = Sum of task times/Cycle time = t / C (8.3)
Total Time Available = (Number work stations)(Cycle Time) = N*CT (8.4)
Total Idle Time = N*CT - t (8.5)
Assembly Line Efficiency = t/ (N*CT) (7.6)
Balance Delay = 1 - Assembly Line Efficiency (8.7) 39 Operations Management/Ch. 8 Facility Design and Layout 2007 Thomson South-Western Exhibit 8.15 A Typical In-Line Skate 40 Operations Management/Ch. 8 Facility Design and Layout 2007 Thomson South-Western Exhibit 8.16 Precedence Network for In-Line Skate 41 Operations Management/Ch. 8 Facility Design and Layout 2007 Thomson South-Western Chapter 8 Assembly Line Balancing Assembly Line Balance for In-Line Skate (Exhibit 8.16)
Workstation Tasks Total Time Idle Time A 1, 2, 5 5.7 0.3 B 3, 4, 6, 7, 8 3.7 2.3 Total 9.4 2.6
Using equations (8.4) to (8.6) we may compute the following: Total Time Available = (Number workstations)(Cycle Time) = N*CT = 2*6 = 12 minutes
Total Idle Time = N*CT - t = 2*6 - 9.4 = 2.6 minutes
Assembly Line Efficiency = t/ N*CT = 9.4/2*6 = 78.3% 42 Operations Management/Ch. 8 Facility Design and Layout 2007 Thomson South-Western Chapter 8 Designing Process Layouts We will assume that cost is proportional to distance traveled. Since the distance traveled depends on the layout, we use the following approach:
1. Design a trial layout. 2. Compute the distances between work centers. 3. Multiply interdepartmental distances by the volume of flow between work centers to create a volume-distance matrix; then compute the total cost. 4. Use the volume-distance matrix created in Step 3 to propose changes in the current layout. Repeat the process (from Step 2) until a satisfactory layout is obtained. 43 Operations Management/Ch. 8 Facility Design and Layout 2007 Thomson South-Western Exhibit 8.17 Volume (Load) Matrix for HVE, Inc. Designing Process Layouts Home Video Equipment (HVE) is building a new factory and must determine how eight departments should be organized within the factory. Square footage per department and annual movements (volumes) between departments are know. 44 Operations Management/Ch. 8 Facility Design and Layout 2007 Thomson South-Western Material Flow for HVE, Inc.
Exhibit 8.18 45 Operations Management/Ch. 8 Facility Design and Layout 2007 Thomson South-Western Initial Layout for HVE, Inc.
Exhibit 8.19 46 Operations Management/Ch. 8 Facility Design and Layout 2007 Thomson South-Western Volume-Distance Matrix for Initial HVC, Inc. Layout
Exhibit 8.20 D AB = |X A - X B | + |Y A - Y B | (Equation 8.8) Based on Exhibit 8.19, the distance between receiving and storage, whose center is at the point (5.5, 8), and pressing, whose center is at the point (2, 6), is |5.5 - 2| + | 8 - 6| = 3.5 + 2 = 5.5. We obtain the volume-distance matrix shown above by multiplying the load between receiving and pressing (100) by the distance between the departments (55) yields a volume-distance figure of 5,500. 47 Operations Management/Ch. 8 Facility Design and Layout 2007 Thomson South-Western Second Trial Layout for HVE, Inc.
Exhibit 8.21 48 Operations Management/Ch. 8 Facility Design and Layout 2007 Thomson South-Western Process Layouts -- Third Trial for HVE, Inc.
Exhibit 8.22 49 Operations Management/Ch. 8 Facility Design and Layout 2007 Thomson South-Western Chapter 8 Workplace Design Workplace Design Example questions that must be addressed at the workstation level include:
1. Who will use the workplace? Will the workstation be shared? How much space is required? 2. How will the work be performed? What tasks are required? How much time does each task take? How much time is required to setup for the workday or for a particular job? How might the tasks be grouped into work activities most effectively? 50 Operations Management/Ch. 8 Facility Design and Layout 2007 Thomson South-Western Chapter 8 Workplace Design Workplace Design Example questions that must be addressed at the workstation level include:
3. What technology is needed? Employees may need a computer or access to customer records and files, special equipment, intercoms, and other forms of technology. 51 Operations Management/Ch. 8 Facility Design and Layout 2007 Thomson South-Western Pizza Preparation Workplace Design
Exhibit 8.23 52 Operations Management/Ch. 8 Facility Design and Layout 2007 Thomson South-Western Chapter 8 Workplace Design Ergonomics is concerned with improving productivity and safety by designing workplaces, equipment, instruments, computers, workstations, and so on that take into account the physical capabilities of people.
Three key safety issues are lighting, temperature and humidity, and noise.
A job is the set of tasks an individual performs.
Job design involves determining the specific job tasks and responsibilities, the work environment, and the methods by which the tasks will be carried out to meet the goals of operations. 53 Operations Management/Ch. 8 Facility Design and Layout 2007 Thomson South-Western Chapter 8 Workplace Design Job enlargement is the horizontal expansion of the job to give the worker more variety although not necessarily more responsibility.
Job enrichment is vertical expansion of job duties to give the worker more responsibility.
A team is a small number of people with complementary skills who are committed to a common purpose, set of performance goals, and approach for which they hold themselves mutually accountable. 54 Operations Management/Ch. 8 Facility Design and Layout 2007 Thomson South-Western Chapter 8 Workplace Design Virtual Workplaces
About two-thirds of the U.S. work force collects, organizes, analyses, and disseminates information.
Physical assets such as paper and offices are being replaced by virtual projects, offices, and workplaces.
Check out Officescape (www.officescape.com). 55 Operations Management/Ch. 8 Facility Design and Layout 2007 Thomson South-Western Exhibit 8.25 Advantages and Disadvantages of Virtual Offices and Teams 56 FROM HERE ON THE SLIDES DEAL WITH PROBLEMS FROM THE TEXT
READ AT YOUR LEISURE Operations Management/Ch. 8 Facility Design and Layout 2007 Thomson South-Western 57 Operations Management/Ch. 8 Facility Design and Layout 2007 Thomson South-Western Exhibit 8.26 Solved Problem #1 -- Yurtle Mortgage Co. Warehouse Distances and Daily Folder Volume 58 Operations Management/Ch. 8 Facility Design and Layout 2007 Thomson South-Western Exhibit 8.27 Solved Problem #1 -- Yurtle Mortgage Co. Facility Layout Distances 59 Operations Management/Ch. 8 Facility Design and Layout 2007 Thomson South-Western Exhibit 8.28 Solved Problem #2 -- Lous Machine Shop Load Matrix 60 Operations Management/Ch. 8 Facility Design and Layout 2007 Thomson South-Western Exhibit 8.29 Solved Problem # 2 -- Lous Machine Shop Solution 61 Operations Management/Ch. 8 Facility Design and Layout 2007 Thomson South-Western Exhibit 8.30 Toms AirSoft Gun Shop Data Problem #1 62 Operations Management/Ch. 8 Facility Design and Layout 2007 Thomson South-Western Chapter 8 Assembly Line Balancing Solved Problem # 3 To make one particular model of a personal digital assistant (PDA) on an assembly line, the work content is defined by the ten tasks listed to the right.
Work Task Time (seconds) Immediate Predecessor(s) 1 3.0 None 2 2.0 None 3 1.5 1,2 4 5.0 3 5 3.5 4 6 3.0 4 7 2.5 5,6 8 4.0 7 9 2.0 8 10 5.5 9 Total 32.0 seconds 63 Operations Management/Ch. 8 Facility Design and Layout 2007 Thomson South-Western (a) Draw the precedence diagram for this assembly line. (b) What is the cycle time if you want to produce 4,500 PDAs per workday assuming 7.5 hours per day? (c) What is the theoretical minimum number of workstations to balance this line? (d) Using the largest task time first decision rule with the shortest task time rule being used for breaking ties, balance this assembly line. (Make sure you do not violate precedent relationships and the total work per workstation must be less than or equal to 6 seconds.) (e) Compute process efficiency and evaluate the resulting balance in part (d). (f) Comment on the results Chapter 8 Assembly Line Balancing Solved Problem # 3 64 Operations Management/Ch. 8 Facility Design and Layout 2007 Thomson South-Western (a)
1 3 sec 2 2 sec 3 1.5 sec 4 5 sec 5 3.5 sec 6 3.0 sec 7 2.5 sec 8 4 sec 9 2 sec 10 5.5 sec Chapter 8 Assembly Line Balancing Solved Problem # 3 65 Operations Management/Ch. 8 Facility Design and Layout 2007 Thomson South-Western (b) What is the cycle time if you want to produce 4,500 PDAs per workday assuming 7.5 hours per day?
(c) What is the theoretical minimum number of workstations to balance this line?
TW=(Sum task times/CT= 32 seconds/6 seconds = 5.33 or rounded to 6 workstations Chapter 8 Assembly Line Balancing Solved Problem # 3 66 Operations Management/Ch. 8 Facility Design and Layout 2007 Thomson South-Western (d) Using the largest task time first decision rule with the shortest task time rule being used for breaking ties, balance this assembly line. (Make sure you do not violate precedent relationships and the total work per workstation must be less than or equal to 6 seconds.)
Workstation Tasks Total Time Idle Time Idleness% A 1, 2 5.0 1.0 16.7% B 3 1.5 4.5 75.0% C 4 5.0 1.0 16.7% D 5 3.5 2.5 41.7% E 6, 7 5.5 0.5 8.3% F 8, 9 6.0 0.0 0.0% G 10 5.5 0.5 8.3% Total 32.0 10.0 Chapter 8 Assembly Line Balancing Solved Problem # 3 67 Operations Management/Ch. 8 Facility Design and Layout 2007 Thomson South-Western (e) Compute process efficiency and evaluate the resulting balance in part (d).
Total Time Available = (Number work stations)(Cycle Time) = N*CT = 7*6 = 42 seconds Total Idle Time = N*C - ( t = 7*6 32) = 10 seconds Assembly Line Efficiency = St/ N*C = 32/(7*6) = 76.2%
(f) Comment on the results?
Chapter 8 Assembly Line Balancing Solved Problem # 3 68 Operations Management/Ch. 8 Facility Design and Layout 2007 Thomson South-Western Exhibit 8.31 Data for Problem #2 Lous Metal Products 69 Operations Management/Ch. 8 Facility Design and Layout 2007 Thomson South-Western Exhibit 8.32 Data for CORELAP Problem #3 70 Operations Management/Ch. 8 Facility Design and Layout 2007 Thomson South-Western Exhibit 8.33 CORELAP Preference Table Problem #3 71 Operations Management/Ch. 8 Facility Design and Layout 2007 Thomson South-Western Exhibit 8.34 Equipment Movement Frequencies for DOT Factory Problem #4 72 Operations Management/Ch. 8 Facility Design and Layout 2007 Thomson South-Western Exhibit 8.35 Distance Data for DOT Factory Problem #4 73 Operations Management/Ch. 8 Facility Design and Layout 2007 Thomson South-Western Exhibit 8.36 DOT Factory Layout Problem #4 74 Operations Management/Ch. 8 Facility Design and Layout 2007 Thomson South-Western Exhibit 8.37 Cindys Tax Service Preference Table Problem #6 75 Operations Management/Ch. 8 Facility Design and Layout 2007 Thomson South-Western Exhibit 8.38 Interdepartmental Distances for Mercy Hospital Problem # 7 76 Operations Management/Ch. 8 Facility Design and Layout 2007 Thomson South-Western Exhibit 8.39 Interdepartmental Trips per Day for Mercy Hospital Problem # 7 77 Operations Management/Ch. 8 Facility Design and Layout 2007 Thomson South-Western Exhibit 8.40 Unit Flows Between Departments Problem #8 78 Operations Management/Ch. 8 Facility Design and Layout 2007 Thomson South-Western Exhibit 8.41 Personal Computer Workstation Design Problem #9 79 Operations Management/Ch. 8 Facility Design and Layout 2007 Thomson South-Western Exhibit 8.42 Precedence Diagram for Problem 13 80 Operations Management/Ch. 8 Facility Design and Layout 2007 Thomson South-Western Exhibit 8.43 Precedence Diagram for Problem 15 81 Operations Management/Ch. 8 Facility Design and Layout 2007 Thomson South-Western Exhibit 8.44 Data for Problem 18 82 Operations Management/Ch. 8 Facility Design and Layout 2007 Thomson South-Western Exhibit 8.45 Case: University Library Current Layout 83 Operations Management/Ch. 8 Facility Design and Layout 2007 Thomson South-Western Exhibit 8.46 Case: University Library Current Workflow 84 Operations Management/Ch. 8 Facility Design and Layout 2007 Thomson South-Western Exhibit 8.47 Case: BankUSA: Cash Movement (1 of 2) 85 Operations Management/Ch. 8 Facility Design and Layout 2007 Thomson South-Western Exhibit 8.47 (continued) Case: BankUSA: Cash Movement (2 of 2)