opmt 610 lecture outline spring 2012 - process design & faclity layout

Upload: cory-wiskow

Post on 05-Apr-2018

217 views

Category:

Documents


0 download

TRANSCRIPT

  • 8/2/2019 OPMT 610 Lecture Outline Spring 2012 - Process Design & Faclity Layout

    1/67

    2007 University of St. Thomas, Opus College of Business

    Debasish N. Mallick, Ph.D.Spring 2012

    4/26/2012

    Introduction to

    Process Design & Facility Layout

  • 8/2/2019 OPMT 610 Lecture Outline Spring 2012 - Process Design & Faclity Layout

    2/67

    Today

    Operations Management

    Design of Operations Supply Chain Management

    Quality Management

    Service design

    Process Design

    Facilities Planning

    Product design

    Forecasting

    Aggregate Planning

    Inventory Management

    MRP, ERP Systems

    JIT Manufacturing

    Project Management

    Operations Context

    Ethical Issues

    Operations Strategy

  • 8/2/2019 OPMT 610 Lecture Outline Spring 2012 - Process Design & Faclity Layout

    3/67

    Agenda

    What is a process?

    Why processes?

    Process Analysis

    Business Process Reengineering (BPR)

    Process Structure

    Facility Layout

  • 8/2/2019 OPMT 610 Lecture Outline Spring 2012 - Process Design & Faclity Layout

    4/67

    What is a process?

    Tasks, Flow and Storage

    Beginning & End

    Input & Output

    Structure for Action

  • 8/2/2019 OPMT 610 Lecture Outline Spring 2012 - Process Design & Faclity Layout

    5/67

    Process-View of Business

    Marketing Operations Finance

    CEO

  • 8/2/2019 OPMT 610 Lecture Outline Spring 2012 - Process Design & Faclity Layout

    6/67

    Business Processes

    Product Development Manufacturing/Service

    Customer Acquisition

    Integrated Logistics

    Order Management

    Post-Sales Service

    Performance Monitoring

    Asset Management Personal Management

    Planning/Resource Allocation

  • 8/2/2019 OPMT 610 Lecture Outline Spring 2012 - Process Design & Faclity Layout

    7/67

    Manufacturing: A Conversion Process

    Extraction

    Bulk Form

    Discrete Parts

    Assembly

    System Integration

  • 8/2/2019 OPMT 610 Lecture Outline Spring 2012 - Process Design & Faclity Layout

    8/67

    Types of Operations

    Process Operations

    Discrete Operation

  • 8/2/2019 OPMT 610 Lecture Outline Spring 2012 - Process Design & Faclity Layout

    9/67

    Vertical Integration

    Components(Microprocessor)

    Assembly(Motherboard)

    System Integration

    (PC)

    Backward

    integration

    Forwardintegration

    In-house

    processes

  • 8/2/2019 OPMT 610 Lecture Outline Spring 2012 - Process Design & Faclity Layout

    10/67

    Process Design Considerations

    Process Flow

    Process Structure

    Facility Layout

    Choice of Technology

    Tooling & Equipment Job Design

  • 8/2/2019 OPMT 610 Lecture Outline Spring 2012 - Process Design & Faclity Layout

    11/67

    Process Design Tools

    Assembly Drawing

    Product Structure Tree

    Bill of Material

    Assembly Chart

    Route Sheets

    Process Flow Chart

  • 8/2/2019 OPMT 610 Lecture Outline Spring 2012 - Process Design & Faclity Layout

    12/67

    Assembly Drawing

  • 8/2/2019 OPMT 610 Lecture Outline Spring 2012 - Process Design & Faclity Layout

    13/67

    Product Structure Tree

    Main Piece Handle Facing (2) Rubber Surface(2)

    Paddle

  • 8/2/2019 OPMT 610 Lecture Outline Spring 2012 - Process Design & Faclity Layout

    14/67

    Bill of Materials

    Paddle

    Main Piece 1

    Handle Facing 2

    Rubber Surface 2

  • 8/2/2019 OPMT 610 Lecture Outline Spring 2012 - Process Design & Faclity Layout

    15/67

    Process Mapping Symbols

    Task

    Flow

    Storage

    Inspection

    Delay

    Source: SME

  • 8/2/2019 OPMT 610 Lecture Outline Spring 2012 - Process Design & Faclity Layout

    16/67

    Assembly Chart

  • 8/2/2019 OPMT 610 Lecture Outline Spring 2012 - Process Design & Faclity Layout

    17/67

    Route Sheet

  • 8/2/2019 OPMT 610 Lecture Outline Spring 2012 - Process Design & Faclity Layout

    18/67

    Process Mapping Symbols (Updated)

    Task

    Flow

    Storage

    Decision

  • 8/2/2019 OPMT 610 Lecture Outline Spring 2012 - Process Design & Faclity Layout

    19/67

    Process Flow Chart

  • 8/2/2019 OPMT 610 Lecture Outline Spring 2012 - Process Design & Faclity Layout

    20/67

    Process Performance

    Setup time: the time required to prepare a

    machine/workstation to make a particular unit

    Run time: the time required to produce a batch of

    parts/units (time required to produce each unit x

    batch size)

    Operation time: Setup time + Run time

  • 8/2/2019 OPMT 610 Lecture Outline Spring 2012 - Process Design & Faclity Layout

    21/67

    Example

    Consider a cereal-boxing machine that produces 30 boxes

    per minute. The machine can handle two box sizes (16 oz

    and 12 oz). It takes 30 minutes to switch from 16-oz boxes to

    12-oz boxes.

    How many minutes does it take to a batch of 10,000 12-oz

    boxes? What is the operation time?

  • 8/2/2019 OPMT 610 Lecture Outline Spring 2012 - Process Design & Faclity Layout

    22/67

    Process Performance

    Throughput time: the average time for a unit to

    move through the system (includes time waiting in

    queue).

    Cycle Time: the average time between

    completions of two successive units.

    Throughput rate: 1 Cycle time

  • 8/2/2019 OPMT 610 Lecture Outline Spring 2012 - Process Design & Faclity Layout

    23/67

    A Single Stage Process

    What is the Cycle Time?

    What is the Throughput Rate?

  • 8/2/2019 OPMT 610 Lecture Outline Spring 2012 - Process Design & Faclity Layout

    24/67

    A Multistage Process

    What is the Throughput Time?

    What is the Cycle Time?

    What is the Throughput Rate?

  • 8/2/2019 OPMT 610 Lecture Outline Spring 2012 - Process Design & Faclity Layout

    25/67

    Process Terminologies

    Blocking: the activities in a stage must stop

    because there is no place to deposit the item just

    completed

    Starving: the activities in a stage must stop

    because there is no work

    Buffer: a storage area between stages where the

    output of a stage is placed prior to being used in a

    downstream stage

  • 8/2/2019 OPMT 610 Lecture Outline Spring 2012 - Process Design & Faclity Layout

    26/67

    A Multistage Process with Buffer

    What is the Throughput Time?

    What is the Cycle Time?

    What is the Throughput Rate?

  • 8/2/2019 OPMT 610 Lecture Outline Spring 2012 - Process Design & Faclity Layout

    27/67

    Process Performance

    Work-in-process (WIP): Semi-finished or materials

    being worked on

    Littles Law:

    Average WIP = Throughput Time x Throughput Rate

  • 8/2/2019 OPMT 610 Lecture Outline Spring 2012 - Process Design & Faclity Layout

    28/67

    Questions to Ask in PFA

    What does the customer need? What operations are necessary? Can

    some operations be eliminated, combined, or simplified?

    Who is performing the job? Can the operation be redesigned to use

    less skill or less labor? Can operations be combined to enrich jobs?

    Where is each operation conducted? Can layout be improved?

    When is each operation performed? Is there excessive delay or

    storage? Are some operations creating bottlenecks?

    How is the operation done? Can better methods, procedures, or

    equipment be used?

  • 8/2/2019 OPMT 610 Lecture Outline Spring 2012 - Process Design & Faclity Layout

    29/67

    BPR Philosophy

    Does the reengineering consultant see the glass

    as half full or half empty?

  • 8/2/2019 OPMT 610 Lecture Outline Spring 2012 - Process Design & Faclity Layout

    30/67

    Process Structure

    Project

    Job shop

    Batch process Line flow

    Continuous process

    Hybrid

  • 8/2/2019 OPMT 610 Lecture Outline Spring 2012 - Process Design & Faclity Layout

    31/67

    Project

  • 8/2/2019 OPMT 610 Lecture Outline Spring 2012 - Process Design & Faclity Layout

    32/67

    Job Shop

  • 8/2/2019 OPMT 610 Lecture Outline Spring 2012 - Process Design & Faclity Layout

    33/67

    Batch Process

  • 8/2/2019 OPMT 610 Lecture Outline Spring 2012 - Process Design & Faclity Layout

    34/67

    Line Flow

  • 8/2/2019 OPMT 610 Lecture Outline Spring 2012 - Process Design & Faclity Layout

    35/67

    Continuous process

  • 8/2/2019 OPMT 610 Lecture Outline Spring 2012 - Process Design & Faclity Layout

    36/67

    Issues

    How will you compete in the market?

    How will you manage your business?

  • 8/2/2019 OPMT 610 Lecture Outline Spring 2012 - Process Design & Faclity Layout

    37/67

    Process Structure and Competition

    Types Cost Quality Flexibility Speed Service

    Project

    Job Shop

    Batch

    Line Flow

    Continuous

  • 8/2/2019 OPMT 610 Lecture Outline Spring 2012 - Process Design & Faclity Layout

    38/67

    Types Technology Labor Materials Planning Focus

    Project

    Job Shop

    Batch

    Line Flow

    Continuous

    Process Structure and Strategy

  • 8/2/2019 OPMT 610 Lecture Outline Spring 2012 - Process Design & Faclity Layout

    39/67

    (1) (2) (3) (4) (5)One of a kind Low volume, Multiple Few major High volumeproducts, made low products products, highto customer standardization moderate higher standardization,

    order volume volume commodityproducts

    ProcessCharacteristics

    (1)

    Complex and highlycustomized process,unique sequence oftasks

    (2)

    Jumbled flows,complex work withmany exceptions

    (3)

    Disconnected lineflows, moderatelycomplex work

    (4)

    Connected line,routine work

    (5)

    Continuousflows, highlyrepetitive work

    LessComplexity,

    LessDivergence,MoreLineFlows

    Less Customization and Higher Volume

    Product Design

    Continuousprocess

    Projectprocess

    Lineprocess

    Batchprocess

    Jobprocess

    Masscustomizers

    Cellularmanufacturers

  • 8/2/2019 OPMT 610 Lecture Outline Spring 2012 - Process Design & Faclity Layout

    40/67

    Layout Planning

    Layout planning determines where departments

    and workstations should be located for a

    smooth-flowing and efficient system.

  • 8/2/2019 OPMT 610 Lecture Outline Spring 2012 - Process Design & Faclity Layout

    41/67

    Importance of Layout Planning

    Flow of Materials

    Flow of Information

    Equipment Utilization

    Labor Utilization

    Employee Morale

    Customer Perception

    ff

  • 8/2/2019 OPMT 610 Lecture Outline Spring 2012 - Process Design & Faclity Layout

    42/67

    Factors Affecting Layout Design

    Output

    Flexibility

    Processing Requirements

    Materials Handling

    Maintenance Requirement

    Space Availability

  • 8/2/2019 OPMT 610 Lecture Outline Spring 2012 - Process Design & Faclity Layout

    43/67

    Layout Types

    Fixed-Position Layout

    Process Layout

    Product Layout

    Cellular Layout

  • 8/2/2019 OPMT 610 Lecture Outline Spring 2012 - Process Design & Faclity Layout

    44/67

    Process (Functional) Layout

    Admissions

    Cutting Drilling

    Radiology

    Grinding Finishing

    Surgery Recovery

    Lower Florida Keys Health System

  • 8/2/2019 OPMT 610 Lecture Outline Spring 2012 - Process Design & Faclity Layout

    45/67

    Lower Florida Keys Health System

    First Floor

  • 8/2/2019 OPMT 610 Lecture Outline Spring 2012 - Process Design & Faclity Layout

    46/67

    Process Layout :Advantages

    General purpose

    Less Capital Intensive

    Less vulnerable to changes

    Equipment utilization

    Employee supervision

  • 8/2/2019 OPMT 610 Lecture Outline Spring 2012 - Process Design & Faclity Layout

    47/67

    Process Layout: Disadvantages

    Slower processing rate

    Lost production time for setups

    Higher inventory costs

    Longer manufacturing lead-times

    Difficulty in material handling

  • 8/2/2019 OPMT 610 Lecture Outline Spring 2012 - Process Design & Faclity Layout

    48/67

    Product (Line) Layout

    Product family A

    Product family B

    A bl Li G l M t

  • 8/2/2019 OPMT 610 Lecture Outline Spring 2012 - Process Design & Faclity Layout

    49/67

    Assembly Line: General Motors

  • 8/2/2019 OPMT 610 Lecture Outline Spring 2012 - Process Design & Faclity Layout

    50/67

    Product Layout: Advantages

    Faster processing rates

    Lower inventory

    Infrequent setups

    Easier planning and control

  • 8/2/2019 OPMT 610 Lecture Outline Spring 2012 - Process Design & Faclity Layout

    51/67

    Product Layout: Disadvantages

    Capital Intensive

    Risk of layout redesign

    Less flexibility

    Low utilization at low volume

    C ll l (G ) L t

  • 8/2/2019 OPMT 610 Lecture Outline Spring 2012 - Process Design & Faclity Layout

    52/67

    Cellular (Group) Layout

    Dermatology

    Product

    family A

    Product

    family B

    Orthopedics

    Product

    family CProduct

    family D

    Family

    practice

    Coronary

    bypass

    C ll l A bl t D ll C t

  • 8/2/2019 OPMT 610 Lecture Outline Spring 2012 - Process Design & Faclity Layout

    53/67

    Cellular Assembly at Dell Computer

    P L t D i

  • 8/2/2019 OPMT 610 Lecture Outline Spring 2012 - Process Design & Faclity Layout

    54/67

    Process Layout Design

    Space Requirements

    Available Space

    Closeness Factor

    Block Plan

    Detailed Layout

    E l P L t D i

  • 8/2/2019 OPMT 610 Lecture Outline Spring 2012 - Process Design & Faclity Layout

    55/67

    Example: Process Layout Design

    Longhorn Machine produces a variety of small metal parts usinggeneral-purpose equipment. A Full shift of 26 workers and asecond shift of 6 workers operate its 32 machines. Longhorn hasgrouped its processes into six different departments.

    The space requirements of each department are known.

    The level of materials movement in number of trips betweeneach pair of departments is also known.

    Longhorns available space is 90 ft by 60 ft. Develop a layout forminimizing the material handling.

    Source: Krajewski and Ritzman (1996)

    The space requirements of each department are listed

  • 8/2/2019 OPMT 610 Lecture Outline Spring 2012 - Process Design & Faclity Layout

    56/67

    p q pbelow:

    Department Space Required (Square ft)

    1. Burr and Grinding 1000

    2. NC Equipment 950

    3. Shipping and Receiving 750

    4. Lathes and Drills 1200

    5. Tool crib 800

    6. Inspection 700

    TOTAL 5400

    A measure of materials movement in number of trips between each

  • 8/2/2019 OPMT 610 Lecture Outline Spring 2012 - Process Design & Faclity Layout

    57/67

    A measure of materials movement in number of trips between each

    pair of departments is presented in the table below:

    Department 1 2 3 4 5 6

    1. Burr and Grinding 20 20 80

    2. NC Equipment 10 75

    3. Shipping and Receiving 15 90

    4. Lathes and Drills 70

    5. Tool crib

    6. Inspection

    D l & E l t Bl k Pl #1

  • 8/2/2019 OPMT 610 Lecture Outline Spring 2012 - Process Design & Faclity Layout

    58/67

    Develop & Evaluate Block Plan #1

    2 4 3

    6 5 1

    Department Load Distance Load-Distance

    1,2 20

    1,4 20

    1,6 80

    2,3 10

    2,5 75

    3,4 15

    3,6 90

    4,5 70

    Total

    Prod ct La o t Design

  • 8/2/2019 OPMT 610 Lecture Outline Spring 2012 - Process Design & Faclity Layout

    59/67

    Product Layout Design

    Desired Output/ Cycle Time

    Work Element

    Minimum Number of Work Stations

    Precedence Diagram

    Idle Time

    Efficiency

    Balance Delay

    Example: Product Layout Design

  • 8/2/2019 OPMT 610 Lecture Outline Spring 2012 - Process Design & Faclity Layout

    60/67

    Example: Product Layout Design

    Green Grass, Inc., is designing an assembly line to produce anew fertilizer spreading machine, the Big Broadcaster. Green

    Grasss plant manager has just received marketings latest

    forecasts of Big Broadcaster sales for the next year. She wants

    its production line to be designed to make 2400 spreaders per

    week for at least the next three months. The plant will operate

    40 hours per week.

    a. What should be the lines cycle time?

    b. What is the theoretical number of workstations?

    c. What should be the lines efficiency?

    The following table provides estimates for each work elements

    i d bl h Bi B d

  • 8/2/2019 OPMT 610 Lecture Outline Spring 2012 - Process Design & Faclity Layout

    61/67

    WorkElement

    Description Time (sec) ImmediatePredecessors

    A Bolt frame to Hopper 40 None

    B Insert Impeller Shaft 30 A

    C Attach axle 50 A

    D Attach agitator 40 B

    E Attach drive wheel 6 B

    F Attach free wheel 25 C

    G Mount lower post 15 CH Attach controls 20 D,E

    I Mount nameplate 18 F,G

    required to assemble the Big Broadcaster:

    Solution

  • 8/2/2019 OPMT 610 Lecture Outline Spring 2012 - Process Design & Faclity Layout

    62/67

    Solution

    Throughput=

    Cycle time=

    Minimum Number of Workstations=

    Efficiency=

    Balance Delay=

    Example: Product Layout Design

  • 8/2/2019 OPMT 610 Lecture Outline Spring 2012 - Process Design & Faclity Layout

    63/67

    Example: Product Layout Design

    A,40

    B,30

    C,50

    D,40

    E,6

    H,20

    F,25

    G,15

    I,18

    Station Candidate Choice Time Idle Time

    Layout Design: Characteristics

  • 8/2/2019 OPMT 610 Lecture Outline Spring 2012 - Process Design & Faclity Layout

    64/67

    Layout Design: Characteristics

    Straight-Line Flow

    Predictable Time

    Low Work-in-Process

    Transparent

    Ease of Material Handling

    Flexible

    Takeaways

  • 8/2/2019 OPMT 610 Lecture Outline Spring 2012 - Process Design & Faclity Layout

    65/67

    Takeaways

    It is not a competency unless it is a process. Process mapping can help you analyze and

    improve your processes - You do not really

    understand a process until you map it. Process design will affect the way you will compete

    in the market.

    Process design will affect the you will manage yourbusiness.

    Learning never ends

  • 8/2/2019 OPMT 610 Lecture Outline Spring 2012 - Process Design & Faclity Layout

    66/67

    Learning never ends.

    When Should a Process Be Art, Not Science Joseph M. Halland M. Eric Johnson, Harvard Business Review, March 2009.

    Chapters 5, 6, & 6A: Operations & Supply ChainManagement - by F. Robert Jacobs and Richard B. Chase,13th Edition, McGraw-Hill/Irwin, 2011.

    OPMT 635: Process Analysis, Lean and Agile Organizations

    Society of Manufacturing Engineers (SME) www.sme.org

  • 8/2/2019 OPMT 610 Lecture Outline Spring 2012 - Process Design & Faclity Layout

    67/67

    Thank You!