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Chapter 6

GMS401- Chapter 6- Process Design and Facility Layout.docx

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Ryerson University
Global Management Studies
GMS 401
Sam Lampropoulos

GMS401- Chapter 6- Process Design and Facility Layout Introduction and Process Types  Core of operation management—process convert inputs into outputs  Process design- determining the form and function of how goods and services are produced  Make or buy- decide whether to make a part or product in house or to buy it or a segment of production process from another company o Strategic—based on existing or desired core capabilities  4 basic process types o Job shop- when a low quantity of high- variety customized goods or services is needed  Process intermitted—work shifts from one small job to the next, each with different requirements  High flexibility of equipment and skilled workers  E.g. one-of-a-kind tools, emergency ward in hospital  Managerial challenge schedule jobs so due dates are met, resources are utilized as much as possible o Batch process- Moderate volume and variety of goods or services is desired  Equipment need not as flexible but process is still intermitted  Skill level doesn’t need to be as high—less variety in jobs  E.g. small bakeries, movie theater, airlines  Managerial challenge schedule bathes in order to meet planned production and demand and utilizing the resources at a high level o Repetitive Process- high quantities of more standardized goods or services are needed  Skill of workers are low  Slight flexibility of equipment is needed  E.g. production lines and assembly lines  Production line- sequence of machines/ workstations that perform operations on a part/ product  Assembly line- a production line where parts are added on to a product sequentially  Managerial challenges capacity balance, technology management, quality, material management o Continuous process- high volume of highly standardized output is required  No variety in output and no need for equipment flexibility  Product is usually also continuous—cannot be counted  E.g. paper, flour, sugar, salt  Managerial challenge same as assembly line  Greater care for automated control of the flow  Start and stop of production Job shop Batch Repetitive Continuous Product variety Customized Semi- Standardized Highly standardized standardized Volume Low Low-moderate High Very high Equipment Very high Moderate Low Very low Flexibility Automation  Automation- using machinery/equipment with sensing and control devices that enable it to operate automatically  Advantage over human labour o Low variability—detrimental to quality and meeting schedules o Don’t get bored, injured, strike, ask for high wages, etc  Strategy necessary for competitive  Disadvantage and limitations o Costly—high initial costs o Once a process is automated it is hard to change 1 GMS401- Chapter 6- Process Design and Facility Layout  3 kinds of automation o Fixed uses high costs, specialized equipment for a fixed sequence of operations  Advantage- Low unit cost and high volume  Major challenges- minimal variety and high costs of making o Programmable use of high costs, general purpose equipment controlled by a computer program that provides both sequence of operations and specific details about each operation  Changing the process is easy (or difficult) as changing the program  Capability of economically producing a fairly wide variety of low- volume products in small batches  Numerically controlled (N/C) machines- perform operations by following mathematical processing instructions  Individual machines may have their won computer Computerized numerical control  One computer may control a number of N/C direct numerical control  Robot- consisting of a mechanical arm, a power supply, and a controller o Flexible uses equipment that is more customized than that of programmable automation  Requires significantly less change over time  Flexible manufacturing system (FMS)- group of machining centers controlled by a computer, with automatic material handling and robots or other automated equipment  Reduced labour costs and more consistent quality  Handle relativity narrow range of part variety—must be used for family of similar parts  Computer-integrated manufacturing (CIM)- system for linking a broad range of manufacturing and other activities though an integrated computer system  Goal is to link parts of the organization to achieve rapid response to orders and product changes to allow rapid production and reduce indirect costs Process Design  Form and function of how production of goods and services is to occur  Methodology for production process design 1. Define the production process 2. Production process development a. Conceptualize the design b. Make an embodiment of the design c. Create a detailed design 3. Buy the machine and eq
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