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Chapter 6 Text and lecture notes

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Ryerson University
Global Management Studies
GMS 401
Wally Whistance- Smith

Chapter 6: Process Selection and Facility Layout Process selection: Deciding on the way production of goods or services will be organized. It affects, Capacity planning Layout of facilities, Equipment, Design of work systems. Outsource: obtain a good or service from an external provider, if a decision is to buy and not make in the factory, it eliminates the need to produce the part or service. Process types: Projects: Unique, bridge highways. Often “One Of A Kind” Operation. Limited Time Frame To Complete. Manu Examples: Buildings, Dams, Bridges, Ships. Service Examples: Crisis Management (Columbine Shootings, Hurricane Recovery). Job shop: Small scale, low volume of high variety customized goods or services. Processes may change from job to job. Highly flexible workforce and equipment. Manu eg: Tool & Die Shop, Custom Car Painting. Service Examples: Beauty Solon, Hospital, Veterinarians Office Batch: Moderate volume in lots. using repetitive techniques. Easy to set-up processes. Process runs batches using repetitive techniques. Flexible Automation Manu Ex: Small Bakery, PIP style printing Service Examples: TV Show Production, Airline baggage handling. Repetitive/assembly line: High volumes of standardized goods or services Low Variety of Goods & Services Processes are very constant with little change. Lower skilled workers needed – Fixed Automation Manu Ex: Auto Assembly, High Volume Electronics. service Examples – Cafeteria Lines, Ticket Takers Continuous: Very high volumes, Highly standardize. Frequently totally automated Fixed (hard) automation Manu Ex: Making Steel, Fiberglass, Petrochemicals, Generating Electricity. Service Ex: Internet, Air Quality Monitoring, Delivering Electricity Automation: Machinery or equipment with sensing devices that enables it to operate. Used to reduce variable production costs and improve quality. Fixed Automation – designed to do a specific task. Specialized equipment – high volume at low cost, inflexible. Programmable Automation – may be reprogrammed to do many different tasks.General purpose equipment – lower volume/ higher variety, very flexible. Advantages Disadvantages – Reduce Human variation – Costly – Improve Quality – consistency – Lack of flexibility - Limitations – Safety • People can think, feel, make – Productivity decisions – Reduction of variable costs like strikes – Support personnel needed – Must use to be cost effective Facilities Layout Layout: the configuration of departments, work centers, and equipment, with particular emphasis on movement of work (customers or materials) through the system. • Concepts applicable to factories, retail, airports, etc. Goal: Efficient & Safe FLOW! • Requires substantial investments of money and effort • Involves long-term commitments • Has significant impact on cost and efficiency • Planning is critical – down time to implement • Poor layout = poor flow = higher cost Why Make Floor Plan Changes? • New Product • New Process • Improved Product / Process – quality, efficiency, etc. • Change in Philosophy - JIT, TQM, etc. • Safety • Volume Change • “Under New Management” • Whim When planning a layout you need to know • Type of Product/Service - size/wt./quality/etc. • Processes - cycle/complexity/yields/etc. • Volume of Output • Type of Material - state/value/size/wt./hazards • Philosophy / Strategy - JIT, TQM, etc. • Costs of Changes - utilities, HVAC, etc. • Type of Process – Job shop, Batch, etc. Product Focused Layout: Layout that uses standardized processing operations to achieve smooth, rapid, high-volume flow of product. Used for Repetitive or Continuous Processing. Optimizing Product FLOW. Advantages Disadvantages • High rate of output • Creates dull, repetitive jobs • Low unit cost • Poorly skilled / motivated workers may not • Labor specialization maintain equipment or quality of output • Low material handling cost • Fairly inflexible to changes in volume • High utilization of labor and equipment • Highly susceptible to shutdowns • Established routing and scheduling • Needs preventive maintenance • Routine accounting and purchasing Since the flow is repetitive – line balancing is critical. Line Balancing is the process of assigning tasks to workstations in such a way that the workstations have approximately equal time requirements. Cycle time is the maximum time al
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