Operations Management Test #2, Ch 6

Flexible Manufacturing System (FMS)

-A group of machines designed to handle intermittent processing requirements and produce a variety of SIMILAR products. Includes automated processing equipment. A more automated version of cellular manufacturing.

Information Requirements for Design Process Layouts

-A list of departments to be arranged. -A projection of future workflows. -The distance between locations and the cost 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.

Computer Integrated Manufacturing (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.

Line Balancing Procedure

-Determine cycle time and number of workstations -Assign tasks to workstations -Maintain assignment sequence and priority -Determine remaining time at workstation. -Systematically break ties. -Iterate to assign all tasks. (How important to know all these steps?)

Supporting Layout Design Objectives

-Facilitate product or service quality -Use workers and space efficiently -Avoid bottlenecks -Minimize handling costs -Eliminate unnecessary movement of workers or material. -Minimize production time or customer service time. -Design for safety.

Cellular Manufacturing

-Group a number of tools necessary for a given family of like products. -Cross-train personnel (can't do individual incentives like in process layouts). -Link teams with product families. *Example of a product layout.

Product or service profiling

-Linking key product requirements to process capabilities. -Relating profit potential to required investment in a particular process.

Product Profiling key dimensions relate to

-Range of products or services -Expected order sizes -Pricing strategies -Expected frequency of schedule changes -Order-winning requirements -Product production life -Overall volumes

2 Heuristic (Intuitive Rules) to Assigning Tasks

1. Assign tasks in order of most following tasks. -Count the number of tasks that must follow. 2. 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.

Design Process Layouts main issues (2)

1.The relative placement of the departments. 2.Measuring effectiveness. -Minimize transportation cost, distance or time.

Precedence Diagram

A diagram that shows elemental tasks and their precedence requirements.

Flexible Automation

An extension of programmable automation. In flexible automation the variety of products is sufficiently limited so that the changeover can be done very quickly. Allows operator to change operation of the machine, which improves productivity.

Key Aspects of Process Strategy (2)

Capital Intensity Process flexibility

Combination Layouts

Combination of the three basic layout types. Used by hospitals, shipyards and supermarkets.

Job Shop Processing

Customized goods or services. Advantages: Able to handle a wide variety of work. Disadvantages: Slow, high cost per unit, complex planning and scheduling

Cycle Time

Cycle time=Operating time per day/Desired output rate

Process Selection

Deciding on the way production of goods or services will be organized. It has major implications for: Capacity Planning Layout of facilities (specific influence) Equipment (substantial investment) Design of work systems.

Product & Service Technology

Discovery and development of new products and services.

Basic Layout Design Objective

Facilitate a smooth flow of work, material, and info through the system.

Types of Automation (3 types)

Fixed Programmable Flexible

Continuous Processing

Highly standardized goods or services. Advantages: Very efficient, very high volume. Disadvantages: Very rigid, lack of variety, costly to change, very high cost of downtime.

Process flexibility

How easily the system can be adjusted to changes in processing requirements due to factors such as: Product and service design changes Volume changes Changes in technology

Types of Processing (4 types)

Job Shop Batch Repetitive Assembly Continuous

Fixed Position Layout

Layout in which product or project remains stationary, and workers, materials, and equipment are moved as needed.

Product Layout (definition, advantages, disadvantages) clue: REPETITIVE

Layout that uses standardized processing operations to achieve smooth, rapid, high-volume flow. Used for Repetitive or Continuous Processing. Advantages: High rate of output, low unit cost, labor specialization, low cost per unit, high utilization of labor & 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. Highly susceptible to shutdowns. Preventive maintenance is a necessary expense. Individual incentive plans are impractical.

Process Layouts (definition, advantages, disadvantages) clue: NON-REPETITIVE

Layouts that can handle varied processing requirements. Used for Job Shop or Batch Processing. Advantages: Can handle a variety of processing requirements. Not vulnerable to equipment failures. Equipment is usually less costly than that used in product layouts. It is possible to use individual incentive plans. Disadvantages: In-process inventory costs can be high. Challenging routing and scheduling. Equipment utilization rates are low. Material handling slow and inefficient. Special attention for each product or customer. Accounting and purchasing are more involved.

Takt time

Lockstep time allowed per workstation to meet output demand. Must be greater than cycle time. Helps find problems. Can damage morale.

Automation

Machinery that has sensing and control devices that enable it to operate automatically.

Process Technology

Methods, procedures, and equipment used to produce goods and services.

Output Rate formula

Output Rate=Operating time per day/Cycle time

Efficiency

Percentage of busy time of a line. Efficiency= 100%-Balance Delay

Balance delay

Percentage of idle time of a line. Balance Delay= Idle time per cycle/N actual X cycle time N= actual number of stations.

Sustainability Considerations

Pollution Resource Conservation Economics Safe and Healthful Rewarding

Fixed Automation

Produces a high volume of similar parts.

Programmable Automation

Produces products in batches. Equipment must be reprogrammed & changed to accommodate the new product style.

Kinds of Technology (3 types)

Product & Service Technology Process technology Information technology

Technological advances can lead to competitive advantage

Product & Service technology- Increased market share and profits. Processing technology- Improved quality, lower costs, higher productivity, expanded processing capabilities.

Basic Layout Types (4 of them)

Product layouts Process layouts Fixed-Position layouts Combination Layouts

Batch Processing

Semi-standardized goods or services Advantages: Flexibility. Disadvantages: Moderate cost per unit, scheduling complexity.

Service layout (not part of basic 4 layouts)

Service layouts can be categorized as: product, process, or fixed position. Requirements are somewhat different due to: Degree of customer contact. Degree of customization. Common service layouts: -Warehouse and storage layouts. -Retail layouts. -Office layouts.

Repetitive/Assembly Processing

Standardized goods or services. Advantages: Low unit cost, high volume, efficient. Disadvantages: Low flexibility, high cost of downtime.

Technology

The application of scientific discoveries to the development and improvement of products and services and operations processes.

(Facilities) Layout

The configuration of departments, work centers, and equipment with particular emphasis on the movement of work (customers or materials) through the system. Decisions arise when: Designing new facilities Re-designing existing facilities

Technological Innovation

The discovery and development of new or improved products, services, or processes for producing or providing them.

Cycle Time

The maximum time allowed at each workstation to complete its set of tasks on a unit. Establishes output rate of a line.

Capital Intensity

The mix of equipment and labor that will be used by the organization.

Line balancing (definition + 2 reasons why it's important)

The process of assigning tasks to workstations in such a way that the workstations have approximately equal time requirements. 1. It's important because it allows us to use labor and equipment more efficiently. 2. To avoid fairness issues that arise when one workstation must work harder than another.

Information Technology

The science and use of computers and other electronic equipment to store, process and send information.

Why layout planning is important

To avoid: -Inefficient operations (high cost, bottlenecks). -Accidents or safety hazards -Changes in product or service design -Morale problems. IF -If you are introducing new products or services. -If there are changes in product mix, equipment, environmental or legal requirements.

Lean Process Design

Value Value Chain Flow Pull Perfection

Automation Questions

What level of automation is appropriate? How would automation affect system flexibility? How can automation projects be justified? How should changes be managed? What are the risks of automating? What are the likely effects of automating on: -Market share, costs, quality, customer satisfaction, labor relations, ongoing operations.

The required number of workstations is a function of ______ & ______. (what two things?)

desired output rate our ability to combine tasks into a workstation. (need formulas?)

Some organizations are moving away from ______ layouts in an effort to capture the benefits of __________ layouts. 2 examples of this.

process layouts product layouts Cellular manufacturing Flexible Manufacturing systems