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.
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,
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.
– 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
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.
• Volume Change
• “Under New Management”
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.
• 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