Fluent Essays

Business processes are important to communicate an organization’s best practices as they leverage themselves against competitors. Some benefits of business processes are that in the long-run gains may be realized in cost reduction, meeting customers’ expectations, and streamlining business operations. Business process management then focuses on workflow which may hinder good performance. Address the following requirements: Identify a business process for which there is not yet a workflow diagram, explain the situation, and devise a workflow to address the problem Defend your workflow and identify any areas of concern that may hinder successful implementation and a proposed remedy to that concern. Embed course material concepts, principles and theories, which require supporting citations along with at least two scholarly, peer reviewed reference in supporting your answer. Keep in mind that these scholarly references can be found in the Saudi Digital Library by conducting an advanced search specific to scholarly references.You are required to reply to at least two peer discussion question post answers to this weekly discussion question and/or your instructor’s response to your posting. These post replies need to be substantial and constructive in nature. They should add to the content of the post and evaluate/analyze that post answer. Normal course dialogue doesn’t fulfill these two peer replies but is expected throughout the course. Answering all course questions is also required.  R  equired:  Chapters 6, 7, & Chapter 7 Supplement in Operations Management Chapter 6 PowerPoint slides Module 7 Chapter 6 PowerPoint slides - Alternative Formats —Operations Management Chapter 7 PowerPoint slides Module 7 Chapter 7 PowerPoint slides - Alternative Formats —Operations Management Korkulu, S., & Bona, K. (2019). Ergonomics as a social component of sustainable lot-sizing: A review. Periodica Polytechnica: Social and Management Sciences, 27(1), 1–8. Beke, E., Horvath, R., & Takacs-Gyorgy, K. (2020). Industry 4.0 and Current Competencies. Our Economy (Nase Gospodarstvo), 66(4), 63–70. https://doi.org/10.2478/ngoe-2020-0024 Rezagholi, M. (2019). Demands for multidimensional information on the work environment: A methodological framework for regular studies. Work, 63(1), 9–20. Work Design and Measurement Chapter 7 Copyright ©2018 McGraw-Hill Higher Education 7-‹#› You should be able to: LO 7.1 Explain the importance of work design LO 7.2 Compare and contrast the two basic approaches to job design LO 7.3 Discuss the advantages and disadvantages of standardization LO 7.4 Describe behavioral approaches to job design LO 7.5 Discuss the impact of working conditions on job design LO 7.6 Compare the advantages and disadvantages of time-based and output-based pay systems LO 7.7 Explain the purpose of methods analysis and describe how methods studies are performed LO 7.8 Describe four commonly used techniques for motion study LO 7.9 Define a standard time LO 7.10 Describe and compare time study methods and perform calculations LO 7.11 Describe work sampling and perform calculations LO 7.12 Compare stopwatch time study and work sampling Chapter 7: Learning Objectives Copyright ©2018 McGraw-Hill Higher Education 7-‹#› Job Design Job design The act of specifying the contents and methods of jobs What will be done in a job Who will do the job How the job will be done Where the job will be done Importance Organization’s are dependent on human efforts to accomplish their goals Many job design topics are relevant to continuous and productivity improvement Objectives Productivity Safety Quality of work life LO 7.1 Copyright ©2018 McGraw-Hill Higher Education 7-‹#› Efficiency vs. Behavioral Job Design Efficiency School Emphasizes a systematic, logical approach to job design A refinement of Frederick Winslow Taylor’s scientific management concepts Behavioral School Emphasizes satisfaction of needs and wants of employees LO 7.2 Copyright ©2018 McGraw-Hill Higher Education 7-‹#› Specialization Specialization Work that concentrates on some aspect of a product or service Advantages For management: Simplifies training High productivity Low wage costs For employees: Low education and skill requirements Minimum responsibility Little mental effort needed Disadvantages For management: Difficult to motivate quality Worker dissatisfaction, possibly resulting in absenteeism, high turnover, disruptive tactics, poor attention to quality For employees: Monotonous work Limited opportunities for advancement Little control over work Little opportunity for self-fulfillment LO 7.3 Copyright ©2018 McGraw-Hill Higher Education 7-‹#› 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 LO 7.4 Copyright ©2018 McGraw-Hill Higher Education 7-‹#› Motivation Motivation is a key factor in many aspects of work life Influences quality and productivity Contributes to the work environment Trust is an important factor that affects motivation Copyright ©2018 McGraw-Hill Higher Education 7-‹#› Teams Teams take a variety of forms: Short-term team Formed to collaborate on a topic or solve a problem Long-term teams Self-directed teams Groups empowered to make certain changes in their work processes Copyright ©2018 McGraw-Hill Higher Education 7-‹#› Benefits of teams Higher quality Higher productivity Greater worker satisfaction Team problems Some managers feel threatened Conflicts between team members Teams Copyright ©2018 McGraw-Hill Higher Education 7-‹#› Quality of Work Life Quality of work life affects not only workers’ overall sense of well-being and contentment, but also their productivity Important aspects of quality of work life: How a worker gets along with co-workers Quality of management Working conditions Compensation LO 7.5 Copyright ©2018 McGraw-Hill Higher Education 7-‹#› Compensation It is important for organizations to develop suitable compensation plans for their employees Compensation approaches Time-based systems Output-based systems Incentive systems Knowledge-based systems Copyright ©2018 McGraw-Hill Higher Education 7-‹#› Time-based system Compensation based on time an employee has worked during the pay period Output-based (incentive) system Compensation based on amount of output an employee produced during the pay period Compensation Systems Copyright ©2018 McGraw-Hill Higher Education 7-‹#› Comparing Compensation Approaches Management Worker TIME-BASED Advantages Stable labor costs Easy to administer Simple to compute pay Stable Output Stable pay Less pressure to produce than under output system Disadvantages No incentive for workers to increase output Extra efforts not rewarded OUTPUT-BASED Advantages Lower cost per unit Greater output Pay related to efforts Opportunity to earn more Disadvantages Wage computation more difficult Need to measure output Quality may suffer Difficult to incorporate wage increases Increased problems with scheduling Pay fluctuates Workers may be penalized because of factors beyond their control (e.g., machine breakdown) LO 7.6 Copyright ©2018 McGraw-Hill Higher Education 7-‹#› Individual incentive plans Straight piecework Worker’s pay is a direct linear function of his or her output Minimum wage legislation has reduced their popularity Base rate + bonus Worker is guaranteed a base rate, tied to an output standard, that serves as a minimum A bonus is paid for output above the standard Group incentive plans Tend to stress sharing of productivity gains with employees Individual and Group Incentive Plans Copyright ©2018 McGraw-Hill Higher Education 7-‹#› Knowledge-based pay A pay system used by organizations to reward workers who undergo training that increases their skills Three dimensions: Horizontal skills Reflect the variety of tasks the worker is capable of performing Vertical skills Reflect the managerial skills the worker is capable of Depth skills Reflect quality and productivity results Knowledge-Based Pay Systems Copyright ©2018 McGraw-Hill Higher Education 7-‹#› Management Compensation Many organizations used to reward managers based on output New emphasis is being placed on other factors of performance Customer service Quality Executive pay is increasingly being tied to the success of the company or division for which the executive is responsible Copyright ©2018 McGraw-Hill Higher Education 7-‹#› Methods Analysis Analyzing how a job gets done It begins with an analysis of the overall operation It then moves from general to specific details of the job concentrating on Workplace arrangement Movement of workers and/or materials Methods Analysis LO 7.7 Copyright ©2018 McGraw-Hill Higher Education 7-‹#› The need for methods analysis can arise from a variety of sources Changes in tools and equipment Changes in product design or introduction of new products Changes in materials and procedures Government regulations or contractual agreements Accidents or quality problems The Need for Methods Analysis LO 7.7 Copyright ©2018 McGraw-Hill Higher Education 7-‹#› Methods Analysis Procedure Identify the operation to be studied, and gather relevant data Discuss the job with the operator and supervisor to get their input Study and document the present methods Analyze the job Propose new methods Install the new methods Follow up implementation to assure improvements have been achieved LO 7.7 Copyright ©2018 McGraw-Hill Higher Education 7-‹#› Consider jobs that: Have a high labor content Are done frequently Are unsafe, tiring, unpleasant, and/or noisy Are designated as problems Quality problems Processing bottlenecks etc. Guidelines for Selecting a Job to Study LO 7.7 Copyright ©2018 McGraw-Hill Higher Education 7-‹#› Analyzing the Job: Flow Process Charts Flow process chart Chart used to examine the overall sequence of an operation by focusing on movements of the operator or flow of materials LO 7.7 Copyright ©2018 McGraw-Hill Higher Education 7-‹#› Analyzing the Job: Worker-Machine Chart Worker machine chart Chart used to determine portions of a work cycle during which an operator and equipment are busy or idle LO 7.7 Copyright ©2018 McGraw-Hill Higher Education 7-‹#› Motion study 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– activity or process charts, simo charts (simultaneous motions) Motion Study LO 7.8 Copyright ©2018 McGraw-Hill Higher Education 7-‹#› Developing Work Methods In developing work methods that are motion efficient, the analyst attempts to Eliminate unnecessary motions Combine activities Reduce fatigue Improve the arrangement of the workplace Improve the design of tools and equipment LO 7.8 Copyright ©2018 McGraw-Hill Higher Education 7-‹#› Work Measurement Work measurement is concerned with how long it should take to complete a job. It is not concerned with either job content or how the job is to be completed since these are considered a given when considering work measurement. LO 7.9 Copyright ©2018 McGraw-Hill Higher Education 7-‹#› Work Measurement Standard time The amount of time it should take a qualified worker to complete a specified task, working at a sustainable rate, using given methods, tools and equipment, raw material inputs, and workplace arrangement. Commonly used work measurement techniques Stopwatch time study Historical times Predetermined data Work sampling LO 7.9 Copyright ©2018 McGraw-Hill Higher Education 7-‹#› Stopwatch Time Study Used to develop a time standard based on observations of one worker taken over a number of cycles. Standard Elemental Times are derived from a firm’s own historical time study data. Predetermined time standards involve the use of published data on standard elemental times. Work sampling a technique for estimating the proportion of time that a worker or machine spends on various activities and idle time. Work Measurement Techniques LO 7.10 Copyright ©2018 McGraw-Hill Higher Education 7-‹#› Stopwatch Time Study Used to develop a time standard based on observations of one worker taken over a number of cycles. Basic steps in a time study: Define the task to be studied and inform the worker who will be studied Determine the number of cycles to observe Time the job, and rate the worker’s performance Compute the standard time LO 7.10 Copyright ©2018 McGraw-Hill Higher Education 7-‹#› The number of observations to collect is a function of Variability of the observed times The desired level of accuracy Desired level of confidence for the estimated job time Number of Cycles to Observe LO 7.10 Copyright ©2018 McGraw-Hill Higher Education 7-‹#› Observed Time LO 7.10 Copyright ©2018 McGraw-Hill Higher Education 7-‹#› Normal Time Assumes that a single performance rating has been made for the entire job LO 7.10 Copyright ©2018 McGraw-Hill Higher Education 7-‹#› Normal Time Assumes that performance ratings are made on an element-by-element basis LO 7.10 Copyright ©2018 McGraw-Hill Higher Education 7-‹#› Standard Time LO 7.10 Copyright ©2018 McGraw-Hill Higher Education 7-‹#› Historical Times Standard Elemental Times are derived from a firm’s own historical time study data. Over time, a file of accumulated elemental times that are common to many jobs will be collected. In time, these standard elemental times can be retrieved from the file, eliminating the need to go through a new time study to acquire them. LO 7.10 Copyright ©2018 McGraw-Hill Higher Education 7-‹#› Predetermined time standards involve the use of published data on standard elemental times. Developed in the 1940s by the Methods Engineering Council. The MTM (methods-time-measurement) tables are based on extensive research of basic elemental motions and times. To use this approach, the analyst must divide the job into its basic elements (reach, move, turn, etc.) measure the distances involved, and rate the difficulty of the element, and then refer to the appropriate table of data to obtain the time for that element Predetermined Time Standards LO 7.10 Copyright ©2018 McGraw-Hill Higher Education 7-‹#› Work sampling is a technique for estimating the proportion of time that a worker or machine spends on various activities and the idle time. Work sampling does not require timing an activity or involve continuous observation of the activity Uses: ratio-delay studies which concern the percentage of a worker’s time that involves unavoidable delays or the proportion of time a machine is idle. analysis of non-repetitive jobs. Work Sampling LO 7.11 Copyright ©2018 McGraw-Hill Higher Education 7-‹#› Work Sampling LO 7.11 Copyright ©2018 McGraw-Hill Higher Education 7-‹#› Work Sampling vs. Stopwatch Time Studies Advantages Observations are spread out over a period of time, making results less susceptible to short-term fluctuations There is little or no disruption of work Workers are less resentful Studies are less costly and less time-consuming, and the skill requirements of the analyst are much less Studies can be interrupted without affecting the results No timing device is required It is well suited for nonrepetitive tasks Disadvantages There is much less detail on the elements of a job Workers may alter their work patterns when they spot the observer, thereby invalidating the results In many cases, there is no record of the method used by the worker Observers may fail to adhere to a random schedule of observations It is not well suited for short, repetitive tasks Much time may be required to move from one workplace to another and back to satisfy the randomness requirement LO 7.12 Copyright ©2018 McGraw-Hill Higher Education 7-‹#› Job Design Success Success factors: Carried out by personnel with appropriate training and background Consistent with the goals of the organization In written form Understood and agreed to by both management and employees Copyright ©2018 McGraw-Hill Higher Education 7-‹#› It is important to make design of work systems a key element of strategy: People are still at the heart of the business Workers can be valuable sources of insight and creativity It can be beneficial to focus on quality of work life and instilling pride and respect among workers Companies are reaping gains through worker empowerment Operations Strategy Copyright ©2018 McGraw-Hill Higher Education 7-‹#› mean Sample error acceptable Maximum percentage accuracy Desired deviation standard Sample confidence desired for needed stddev. normal of # where or 2 2 = = = = = ÷ ø ö ç è æ = ÷ ø ö ç è æ = x e a s z e zs n x a zs n ns observatio of Number times recorded of Sum time Observed OT where OT = = = = å å n x n x i i rating e Performanc PR time Normal NT where PR OT NT = = ´ = ( ) j j x x j j j j element for rating e Performanc PR element for time Average time Normal NT where PR NT = = = ´ = å on workday based percentage Allowance 1 1 AF time job on based percentage Allowance 1 AF and factor Allowance AF time Standard ST where AF NT ST day job = - = = + = = = ´ = A A A A size Sample size sample by the divided s occurrence of number (the proportion Sample ˆ confidence desired achieve to needed deviations standard of Number ) ˆ 1 ( ˆ = = = - = n p z n p p z e percent error maximum ) ˆ 1 ( ˆ 2 = - ÷ ø ö ç è æ = e p p e z n Process Selection and Facility Layout Chapter 6 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 6-‹#› 1 You should be able to: LO 6.1 Explain the strategic importance of process selection and the influence it has on the organization and its supply chain LO 6.2 Name the two main factors that influence process selection LO 6.3 Compare the four basic processing types LO 6.4 Explain the need for management of technology LO 6.5 List some reasons for redesign of layouts LO 6.6 Describe product layouts and their main advantages and disadvantages LO 6.7 Describe process layouts and their main advantages and disadvantages LO 6.8 Solve simple line-balancing problems LO 6.9 Develop simple process layouts Chapter 6: Learning Objectives Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 6-‹#› 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 Design of work systems Process Selection LO 6.1 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 6-‹#› Process Selection and System Design Forecasting Product and Service Design Technological Change Capacity Planning Process Selection Facilities and Equipment Layout Work Design LO 6.1 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 6-‹#› Key aspects of process strategy: Capital intensity The mix of equipment and labor that will be used by the organization Process flexibility The degree to which the system can be adjusted to changes in processing requirements due to such factors as Product and service design changes Volume changes Changes in technology Process Strategy LO 6.1 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 6-‹#› Two key questions in process selection: How much variety will the process need to be able to handle? How much volume will the process need to be able to handle? Process Selection LO 6.2 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 6-‹#› Job Shop Repetitive Batch Continuous Job Shop Batch Repetitive/ Assembly Continuous Description Customized goods or services Semi- standardized goods or services Standardized goods or services Highly standardized Goods or services Advantages Able to handle a wide variety of work Flexibility; easy to add or change products or services Low unit cost, high volume, efficient Very efficient, very high volume Disadvantages Slow, high cost per unit, complex planning and scheduling Moderate cost per unit, moderate scheduling complexity Low flexibility, high cost of downtime Very rigid, lack of variety, costly to change, very high cost of downtime Types of Processing LO 6.3 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 6-‹#› Sustainable Production of Goods and Services There is increasing pressure for organizations to operate sustainable production processes According to the Lowell Center for Sustainable Production: “Sustainable Production is the creation of goods and services using processes and systems that are: non-polluting; conserving of energy and natural resources; economically efficient; safe and healthful for workers, communities, and consumers; and, socially and creatively rewarding for all working people.” Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 6-‹#› Process and Information Technology Process and information technology can have a major impact on costs, productivity and competitiveness: Process technology Methods, procedures, and equipment used to produce goods and provide services Information technology The science and use of computers and other electronic equipment to store, process, and send information Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 6-‹#› Process technology and information technology can have a profound impact on: Costs Productivity Competitiveness The Need to Manage Technology LO 6.4 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 6-‹#› Automation Machinery that has sensing and control devices that enable it to operate automatically Fixed automation Programmable automation Flexible automation Automation Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 6-‹#› Programmable Automation Programmable automation Involves the use of high-cost, general-purpose equipment controlled by a computer program that provides both the sequence of operations and specific details about each operation Computer-Aided Manufacturing (CAM) The use of computers in process control, ranging from robots to automated quality control Numerically Controlled (N/C) Machines Machines that perform operations by following mathematical processing instructions Robot A machine consisting of a mechanical arm, a power supply, and a controller Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 6-‹#› Flexible Automation Flexible automation Evolved from programmable automation. It uses equipment that is more customized than that of programmable automation. A key difference between the two is that flexible automation requires significantly less changeover time. FMS (Flexible Manufacturing System) A group of machines designed to handle intermittent processing requirements and produce a variety of similar products CIM (Computer Integrated Manufacturing) A system for linking a broad range of manufacturing activities through an integrated computer system Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 6-‹#› Flexible Manufacturing System (FMS) FMS A group of machines designed to handle intermittent processing requirements and produce a variety of similar products Have some of the benefits of automation and some of the flexibility of individual, or stand-alone, machines Includes supervisory computer control, automatic material handling, and robots or other automated processing equipment Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 6-‹#› CIM A system for linking a broad range of manufacturing activities through an integrated computer system Activities include Engineering design FMS Purchasing Order processing Production planning and control The overall goal of CIM is to link various parts of an organization to achieve rapid response to customer orders and/or product changes, to allow rapid production and to reduce indirect labor costs Computer Integrated Manufacturing (CIM) Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 6-‹#› Facilities Layout Layout The configuration of departments, work centers, and equipment, with particular emphasis on movement of work (customers or materials) through the system Facilities layout decisions arise when: Designing new facilities Re-designing existing facilities Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 6-‹#› Inefficient operations High cost Bottlenecks Accidents or safety hazards Changes in product or service design Introduction of new products or services Changes in output volume or product mix Changes in methods or equipment Changes in environmental or other legal requirements Morale problems The Need for Layout Planning LO 6.5 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 6-‹#› Basic objective Facilitate a smooth flow of work, material, and information through the system Supporting objectives Facilitate product or service quality Use workers and space efficiently Avoid bottlenecks Minimize material handling costs Eliminate unnecessary movement of workers or material Minimize production time or customer service time Design for safety Layout Design Objectives LO 6.5 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 6-‹#› Basic Layout Types Product layouts Process layouts Fixed-position layout Combination layouts Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 6-‹#› Product layout Layout that uses standardized processing operations to achieve smooth, rapid, high-volume flow Repetitive Processing: Product Layouts Used for Repetitive Processing Repetitive or Continuous Raw materials or customer Finished item Station 2 Station 3 Station 4 Material and/or labor Material and/or labor Material and/or labor Material and/or labor Station 1 LO 6.6 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 6-‹#› Product Layouts: Advantages & Disadvantages Advantages High rate of output Low unit cost Labor specialization Low material handling cost per unit High utilization of labor and equipment Established routing and scheduling Routine accounting, purchasing, and inventory control Disadvantages Creates dull, repetitive jobs Poorly skilled workers may not maintain equipment or quality of output Fairly inflexible to changes in volume or product or process design Highly susceptible to shutdowns Preventive maintenance, capacity for quick repair and spare-parts inventories are necessary expenses Individual incentive plans are impractical LO 6.6 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 6-‹#› Process layouts Layouts that can handle varied processing requirements Non-repetitive Processing: Process Layouts Used for Intermittent processing Job Shop or Batch Dept. A Dept. B Dept. D Dept. C Dept. F Dept. E LO 6.7 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 6-‹#› Process Layouts: Advantages & Disadvantages Advantages Can handle a variety of processing requirements Not particularly vulnerable to equipment failures General-purpose equipment is often less costly and easier and less costly to maintain It is possible to use individual incentive systems Disadvantages In-process inventories can be high Routing and scheduling pose continual challenges Equipment utilization rates are low Material handling is slow and inefficient Reduced spans of supervision Special attention necessary for each product or customer Accounting, inventory control, and purchasing are more involved LO 6.7 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 6-‹#› Fixed position layout Layout in which the product or project remains stationary, and workers, materials, and equipment are moved as needed Fixed Position Layouts Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 6-‹#› Combination Layouts Some operational environments use a combination of the three basic layout types: Hospitals Supermarket Shipyards Some organizations are moving away from process layouts in an effort to capture the benefits of product layouts Cellular manufacturing Flexible manufacturing systems Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 6-‹#› Service layouts can be categorized as: product, process, or fixed position Service layout requirements are somewhat different due to such factors as: Degree of customer contact Degree of customization Common service layouts: Warehouse and storage layouts Retail layouts Office layouts Service Layouts Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 6-‹#› Cellular Layouts Cellular production Layout in which workstations are grouped into a cell that can process items that have similar processing requirements Groupings are determined by the operations needed to perform the work for a set of similar items, part families, that require similar processing The cells become, in effect, miniature versions of product layouts Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 6-‹#› Group Technology Group technology The grouping into part families of items with similar design or manufacturing characteristics Design characteristics: Size Shape Function Manufacturing or processing characteristics Type of operations required Sequence of operations required Requires a systematic analysis of parts to identify the part families Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 6-‹#› Service Layouts Two key factors: Customer contact Degree of customization Layouts: Warehouse and storage layouts Retail layouts Office layouts Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 6-‹#› The goal of a product layout is to arrange workers or machines in the sequence that operations need to be performed Designing Product Layouts: Line Balancing LO 6.8 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 6-‹#› Line balancing The process of assigning tasks to workstations in such a way that the workstations have approximately equal time requirements Goal: Obtain task grouping that represent approximately equal time requirements since this minimizes idle time along the line and results in a high utilization of equipment and labor Why is line balancing important? It allows us to use labor and equipment more efficiently To avoid fairness issues that arise when one workstation must work harder than another Line Balancing LO 6.8 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 6-‹#› Cycle Time Cycle time The maximum time allowed at each workstation to complete its set of tasks on a unit Cycle time also establishes the output rate of a line LO 6.8 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 6-‹#› The required number of workstations is a function of Desired output rate Our ability to combine tasks into a workstation Theoretical minimum number of stations How Many Workstations Are Needed? LO 6.8 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 6-‹#› Precedence Diagram Precedence diagram A diagram that shows elemental tasks and their precedence requirements LO 6.8 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 6-‹#› Assigning Tasks to Workstations Some heuristic (intuitive) rules: Assign tasks in order of most following tasks Count the number of tasks that follow Assign tasks in order of greatest positional weight Positional weight is the sum of each task’s time and the times of all following tasks LO 6.8 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 6-‹#› Balance delay (percentage of idle time) Percentage of idle time of a line Efficiency Percentage of busy time of a line Measuring Effectiveness LO 6.8 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 6-‹#› Designing Process Layouts The main issue in designing process layouts concerns the relative placement of the departments Measuring effectiveness A major objective in designing process layouts is to minimize transportation cost, distance, or time LO 6.9 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 6-‹#› Information Requirements In designing process layouts, the following information is required: A list of departments to be arranged and their dimensions A projection of future work flows between the pairs of work centers The distance between locations and the cost per unit of distance to move loads between them The amount of money to be invested in the layout A list of any special considerations The location of key utilities, access and exit points, etc. LO 6.9 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 6-‹#› Distance between locations in meters To A B C From A 20 40 B 30 C Process Layout Problem Interdepartmental work flows (loads per day) To 1 2 3 From 1 30 170 2 100 3 LO 6.9 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 6-‹#› Process Layout Problem (cont.) A B C 1 2 3 30 170 100 Dept. Loads Location Distance (meters) Load Distance Score 1 to 2 170 A to B 20 170 x 20 = 3,400 1 to 3 30 A to C 40 30 x 40 = 1,200 2 to 3 100 B to C 30 100 x 30 = 3,000 Total 7,600 LO 6.9 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 6-‹#› time Cycle day per time Operating rate Output = rate output Desired day per time Operating time Cycle = å å = = = s task time of Sum stations of number minimum l theoretica where time Cycle min min t N t N stations of number Actual where 100 time Cycle cycle per time Idle Delay Balance = ´ ´ = actual actual N N Delay Balance - 100\% Efficiency =