PRODUCTION OPERATION MANAGEMENT

Process Selection and Facility Layout

Process Selection

Refers to deciding on the way production of goods or services will be organized. It has major implications for capacity planning, layout of facilities, equipment, and design of work system.

System Design
Inputs Outputs
Facilities and Equipment

Forecasting

Capacity Planning

Product and Service design Technological change

Layout Process Selection

Work Design

TECHNOLOGY
Technology Refers to applications of scientific discoveries to the development and improvement of goods and services and/or the processes that produce or provide them. Technology Innovation Refers to the discovery and development of new or improved products, services, or processes for producing or providing them.

Three Kinds of Technology

Product and Service technology is the discovery and development of new products and services. Process technology includes methods, procedures, and equipment used to produce goods and provide services. Information technology (IT) is the science and use of computers and other electronic equipment to store, process, and send information.

Technology as a Competitive Advantage

Technology innovation in products and

services, and in processing technology can produce tremendous benefits for organizations.
Technology Acquisition While process technology can have

enormous benefits, it also substantial risk unless a significant effort is made to fully understand both the downside as well the upside of a particular technology.

Process Selection
Process Types - There are five basic types of Process Types :

Job shop A job shop usually operates on a relatively small scale. It is used when a low volume of highvariety goods or services will be needed. 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. Repetitive when higher volumes of more standardized goods or services are needed, repetitive processing is used. Continuous when a very high volume of non discrete, highly standardized output is desired, a continuous system is used.

Project is used for work that is non routine, with a unique set of objectives to be accomplished in a limited time frame. Product and Service Profiling can be used to avoid any inconsistencies by identifying key product or service dimensions and then selecting appropriate process. Automation is machinery that has sensing and control devices that enable it to operate automatically.

Computer aided manufacturing (CAM) refers to the use of computers in process control, ranging from robots to automated quality control. Numerically controlled (N/C) are programmed to follow a set of processing instructions based on mathematically relationship that tell the machine the details of the operations to be performed Robot A machine consisting of a mechanical arm, a power supply, and a controller.

Facilities Layout
Layout Refers to the configuration of departments, work centers, and equipment, with particular emphasis on movement of work (customer or materials) through the system. Layout decisions are important for three basis reasons: a. they require substantial investments of money and efforts. b. they involved long-term commitments, which makes mistakes difficult to overcome. c. they have a significant impact on the cost and efficiency of operations.

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.

Repetitive Processing: Product Layout

Product Layout layout that uses standardized processing operations to achieve smooth, rapid, high-volume flow. Production Line standardized layout arranged according to a fixed sequence of production task. Assembly Line standardized layout arranged according to a fixed sequence of assembly tasks.

A flow line for Production or Service

[Begin]
Raw materials Or customer Station 1 Station 2 Station 3 Station n
Finished Item Materials and/or labor Materials and/or labor

[End]

Materials
and/or labor

Materials
and/or labor

Tray and silver

Desserts Salads

Bread Potato Main and and course vegetable Rolls

Beverage

Cashier

Process Layout
Process Layout (functional)
Dept. A Dept. C Dept. E

Dept. B

Dept. D

Dept. F

Used for Intermittent processing Job Shop or Batch

Process Layout
Product Layout (sequential)
Work Station 1
Work Station 2 Work Station 3

Used for Repetitive Processing Repetitive or Continuous

 Cellular Production Layout in which machines are grouped into a cell that can process items that have similar processing requirements. Group Technology The grouping into part families of items with similar design or manufacturing characteristics.

Other Service Layout

Warehouse and storage layouts Retail layouts Office layouts

Line Balancing

Line Balancing is the process of assigning tasks to workstations in such a way that the workstations have approximately equal time requirements.

Cycle Time

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

Design of Work System

Design of Work System

Job design involves specifying the content and methods of job.

What will be done. Who will do the job. How the job will be done. Where the job will be done.

Design of Work System

Specialization Behavioral Approaches to Job Design Motivation Teams

Methods Analysis
Motions Study Working conditions

Specialization

Specialization in Business: Advantages

For Management: For Labor:
1. Simplifies training 1. Low education and skill requirements 2. High productivity 2. Minimum 3. Low wage costs responsibilities 3. Little mental effort needed

Disadvantages
For Management: For Labor: 1. Monotonous work 2. Limited opportunities for advancement 3. Little control over work

1. Difficult to motivate
quality

2. Worker dissatisfaction,
possibly resulting in absenteeism, high turnover, disruptive tactics, poor attention to quality

4. Little opportunity for

self-fulfillment

Behavioral Approaches to Job Design

Job Enlargement Giving a worker a larger portion of the total task by horizontal loading Job Rotation Workers periodically exchange jobs Job Enrichment Increasing responsibility for planning and coordination tasks, by vertical loading

Motivation and Trust Motivation Influences quality and productivity. Contributes to work environment. Trust Influences productivity and employee-management relations.

Teams

Teams
Benefits of teams Higher quality Higher productivity Greater worker satisfaction Self-directed teams Groups of empowered to make certain changes in their work process

Methods Analysis

Methods analysis

Analyzing how a job gets done Begins with overall analysis Moves to specific details

The need for methods analysis can come from a number of different sources: Changes in tools and equipment Changes in product design or new products Changes in materials or procedures

Other factors (e.g. accidents, quality problems)

Methods Analysis Procedure

1.Identify the operation to be studied 2.Get employee input 3.Study and document current method 4.Analyze the job 5.Propose new methods 6.Install new methods 7.Follow-up to ensure improvements have been achieved

Motion Study

Motion study - is the systematic study of the human motions used to perform an operation.

Motion Study Techniques

Motion study principles - guidelines for designing motion-efficient work procedures Analysis of therbligs - basic elemental motions into which a job can be broken down

Micromotion study - use of motion pictures and slow motion to study motions that otherwise would be too rapid to analyze Charts

Working Conditions

Working conditions are an important aspect of job design. Physical factors such as temperature, humidity, ventilation, illumination, and noise can have significant impact on worker performance in terms of productivity, quality of output, and accidents.

Compensation

Compensation is a significant issue for the design work system.

Two Basic system for Compensation

Time based system also known as hourly and measured day work system, Compensate employees for the time the employee has worked during a pay period.
Output based (incentive) system Compensation based on amount of output an

employee produced during a pay period.

Thats All

Thank You