INTRODUCTION

Capacity • Determination of the required

Planning Production Capacity.

Process • Where an organization chooses

Selection how to produce its good or services.
STEPS FOR PROCESS SELECTION
Get Annual Volume*Time/Unit Contribution
Determine the Volume of Product*Time/Unit Get the Number of Products Contributing to 80% of
Group into 80%, 15% and 5% contribution groups
Produced Per Year Production.

Process Selection Based on Variety within Group

Process Implementation Facilities

Layout
Planning
Process Improvement
 STEP 1: GET ANNUAL REQUIREMENTS
In the graph illustrated on the
right, it can be observed that
Product No. 1 takes up 80% of the
Production Requirements.
STEP 1: GET ANNUAL REQUIREMENTS
While in the graph illustrated
on the left, it can be observed
that Products No. 1 and 2 takes
up 80% of the Production
Requirements.
STEP 1: GET ANNUAL REQUIREMENTS
While on the Last example, it
can be observed that Out of the
8 items offered by an
organization, a total of four (4)
products take up 80% of the
Production requirements.
STEPS FOR PROCESS SELECTION
Get Annual Volume*Time/Unit Contribution
Determine the Volume of Product*Time/Unit Get the Number of Products Contributing to 80% of
Group into 80%, 15% and 5% contribution groups
Produced Per Year Production.

Process Selection Based on Variety within Group

Process Implementation Facilities

Layout
Planning
Improve the Process
STEP 2: PROCESS SELECTION
Job Shop

Continuous Batch

Repetitive
STEP 2: PROCESS SELECTION
Job Shop Batch Repetitive/ Continuous Project
Assembly

Customized Semi-Standardized Standardized Highly Non Repetitive

Description
Products Products Standardized with Goal

Very Efficient,
Advantages High Flexible Low Cost with High Very High
Variety Volume, Efficient Volume Cannot be
compared with
Lack of
Slow, High Moderate Costs, High Cost of routine
Disadvantages Variety, Very
Cost, Complex Moderate Scheduling Downtime, Low processes
High Cost of
Planning Complexity Flexibility
Downtime
STEP 2: PROCESS SELECTION
Factor Job Shop Batch Repetitive Continuous Project
Estimating Cost Difficult Quite Routine Routine Routine Simple to
Complex
Cost per Unit High Moderate Low Low Very High
Equipment General Purpose General Purpose Special Purpose Special Purpose Variable
Fixed Costs Low Moderate High Very High Varied
Variable Costs High Moderate Low Very Low High
Labor Skills High Moderate Low Low to High Low to High
Marketing Capabilities Semi Standard Standardized Standardized Capabilities
(Promotions) Output Products Products
Scheduling Complex Moderate Routine Routine Variable
WIP Inventory High High Low Low Varied
STEPS FOR PROCESS SELECTION
Get Annual Volume*Time/Unit Contribution
Determine the Volume of Product*Time/Unit Get the Number of Products Contributing to 80% of
Group into 80%, 15% and 5% contribution groups
Produced Per Year Production.

Process Selection Based on Variety within Group

Process Implementation Facilities

Layout
Planning
Process Improvement
 STEP 3: PROCESS IMPLEMENTATION
Process to Use?

Repetitive

Batch

Job Shop
STEP 3: PROCESS IMPLEMENTATION
How about this example?

Batch

Repetitive
STEPS FOR PROCESS SELECTION
Get Annual Volume*Time/Unit Contribution
Determine the Volume of Product*Time/Unit Get the Number of Products Contributing to 80% of
Group into 80%, 15% and 5% contribution groups
Produced Per Year Production.

Process Selection Based on Variety within Group

Process Implementation Facilities

Layout
Planning
Process Improvement
STEP 4: PROCESS IMPROVEMENT

Sustainability

Automate

Lean

Easier to Automate and to Make Lean

STEPS FOR PROCESS SELECTION
Get Annual Volume*Time/Unit Contribution
Determine the Volume of Product*Time/Unit Get the Number of Products Contributing to 80% of
Group into 80%, 15% and 5% contribution groups
Produced Per Year Production.

Process Selection Based on Variety within Group

Process Implementation Facilities

Layout
Planning
Process Improvement
LAYOUT PLANNING
Process Input

Improvement Selection

Implementation
PROCESS INPUT AND LAYOUT SELECTION
Process/Fixed Position
Product/Process Layout
Product Layout
Production Line with High
Capital Investment for
Continuous Flow
For Mass Customization with High
Volume, Cellular Layout is
recommended with Flexible
Manufacturing System (FMS)
Projects utilize layouts similar that
of used in Job Shops but must be
easily disposed once a project has
been accomplished.
TYPES OF LAYOUT
•PRODUCT LAYOUT
•PROCESS LAYOUT
•CELLULAR LAYOUT
•FIXED POSITION LAYOUT
 Uses standardized
LAYOUT IMPLEMENTATION processing operations for
smooth, rapid, high-volume
flow

HOW TO IMPLEMENT A PRODUCT LAYOUT?

BREAKDOWN THE WORK OF PRODUCING THE PRODUCT INTO TASKS;

CHOOSE FIXED PATH MATERIAL HANDLING EQUIPMENT;
IT WOULD BE ADVISABLE TO USE SPECIAL-PURPOSE EQUIPMENT.
 This Layout aims to improve

LAYOUT IMPLEMENTATION efficiency by arranging

equipment according to its
function

HOW TO IMPLEMENT A PROCESS LAYOUT?

GROUP SIMILAR KINDS OF ACTIVITIES;

CHOOSE VARIABLE PATH MATERIAL HANDLING EQUIPMENT (E.G., FORKLIFTS, TRUCKS,
TOTE BOXES)
USE GENERAL-PURPOSE EQUIPMENT
LAYOUT IMPLEMENTATION
This layout arranges workstations
into cells that have similar
processing requirements.

HOW TO IMPLEMENT A CELLULAR LAYOUT?

GROUP PRODUCTS WITH SIMILAR PROCESSING REQUIREMENTS;
GROUP PROCESSES THAT ARE TO BE USED FOR EACH GROUP OF PRODUCTS;
USE FIXED/VARIABLE PATH MATERIAL HANDLING WITHIN ONE PRODUCT GROUP;
USE FIXED/SPECIALIZED EQUIPMENT WITHIN ONE PRODUCT GROUP.
 Fixed Position Layouts are
ideal for products that are

LAYOUT IMPLEMENTATION difficult to move because

of weight, size, bulk, etc.

HOW TO IMPLEMENT A FIXED POSITION LAYOUT?

GROUP SIMILAR KINDS OF ACTIVITIES;

CHOOSE VARIABLE PATH MATERIAL HANDLING EQUIPMENT (E.G., FORKLIFTS, TRUCKS,
TOTE BOXES)
USE GENERAL-PURPOSE EQUIPMENT
LAYOUT IMPROVEMENT
• ROOT CAUSE ANALYSIS/STREAM DIAGNOSTICS CHART
• TIME AND MOTION STUDY
• SINGLE OR MULTIPLE MODEL LINE BALANCING
• AFFINITY CHART/DIAGRAM
 CONCLUSIONS
• PROCESS SELECTION IS DECIDING HOW THE PRODUCTION SYSTEM WILL BE ORGANIZED .
• PROCESS SELECTION IS A PROCESS THAT MUST BE DONE SIMULTANEOUS WITH
CAPACITY PLANNING;
• PROCESS SELECTION MUST BE BASED ON THE VOLUME-VARIETY RELATIONSHIP;
• LAYOUT PLANNING IS PART OF PROCESS SELECTION.
• LAYOUT PLANNING MUST BE BASED ON THE SELECTED PROCESS;
THANK YOU!