Introduction to Operations Management Process Selection and Facility

Introduction to Operations Management Process Selection and Facility Layout (Ch. 6) Hansoo Kim (金翰秀 ) Dept. of Management Information Systems, YUST 1

What you should do! o Review Capacity Planning o Read Chapter 6 and 6 s 2

OM Overview Class Overview (Ch. 0) X Operations, Productivity, and Strategy (Ch. 1, 2) Project Management (Ch. 17) Mgmt of Quality/ Six Sigma Quality (Ch. 9, 10) Queueing/ Simulation (Ch. 18) Demand Mgmt Forecasting (Ch 3) X Aggregated Planning (Ch. 13) Strategic Capacity Planning (Ch. 5, 5 S) X X Process Selection/ Facility Layout; LP (Ch. 6, 6 S) Supply Chain Management (Ch 11) Location Planning and Analysis (Ch. 8) JIT & Lean Mfg System (Ch. 15) Inventory Management (Ch. 12) MRP & ERP (Ch 14) Term Project 3

Key Terms 영어 중국어 Assembly line 组装线 Line balancing 生产线平衡 Automation 自动化 Numerically controlled(N/C)machines 数控机床 Balance delay 生产线闲置率 Precedence diagram 先后顺序图 Cellular production 单元制造 Process layout 艺原则布置 Computer-aided manufacturing 计算机辅助制造 Production line 生产线 Computer-integrated manufacturing 计算机集成制造 Product layout 产品原则布置 Cycle time 节拍 Product or service profiling 产品或服务 艺 Fixed-position layout 定位布置 Project 项目 Flexible manufacturing system 柔性制造系统 Robot 机器人 Group technology 成组技术 Technological innovation 技术创新 Intermittent processing 间歇加 technology 技术 4

Learning Objectives o o o o o Explain the strategic importance of process selection. Explain the influence that process selection has on an organization. Describe the basic processing types. Discuss automated approaches to processing. Explain the need for management of technology. List some reasons for redesign of layouts. Describe the basic layout types. List the main advantages and disadvantages of product layouts and process layouts. Solve simple line-balancing problems. Develop simple process layouts. 5

Capacity and Process Selection Process Strategy (Key Aspects) 1. Capital Intensity 2. Process Flexibility 6

Process Selection Strategy (생산전략, 공정설계 전략) o Process Selection (공정선택) n Deciding on the way production of goods or services will be organized n n “제품과 서비스를 어떤 방식으로 생성해 낼 것인가? ”에 대한 방안 방식 Process = Transformation o 원자재에서 제품(혹 서비스)로 변화되는 과정 o Objective(목적) n Meet or exceed customer requirements (요구사항) n Meet cost & managerial goals n 최소의 비용으로 고객의 요구사항을 극대화 한다! o Long-term effect (장기적인 영향력이 있다) n Product & Volume Flexibility n Costs & Quality 7

생각해 볼 문제들… o 어떤 종류의 생산(or 서비스)방식이 있을까? (Which types of process strategy can exist? ) o 생산(or 서비스)방식을 결정하는데 고려해야 하는 요소들은 어떤 것 이 있을까? Which factors should be considered to select the process strategy? o 예제 n 홍콩반점 n 건강검진센타 n 빙천맥주공장 n 자동차 조립공장 n 8

Machining Process o o Process Time (공정시간) = Setup Time (준비시간) + Machining Time (가공시간) How is the utilization of the Machine? S-A-A-S-B-B S-A-S-B-S-A-S-B-S-A-S-B Machine S = Setup Time 장단점? 9

Process Selection o Variety Batch n How much o Flexibility n What degree Job Shop Repetitive o Volume n Expected output 6 -10 Continuous

Types of Processing 11

Product and Service Processes Figure 6. 2 6 -12

Volume and Variety of Products Low Volume High Repetitive Variety Process (Intermittent) (Modular) High Volume Low Variety Process (Continuous) One or very few Projects Mass units per lot Very small runs, high Job Shops Customizatio variety n Modest runs, modest Disconnected variety Repetitive Long runs, modest Poor Strategy Connected variations Repetitive (High variable Very long runs, Continuous costs) changes in attributes Equipment utilization 5%-25% 20%-75% 70%-80% 13

Areas of Technology o Machine technology o Automatic identification systems (AIS) n Bar-code, RFID Process control Vision system Robot Automated storage and retrieval systems (ASRS) o Flexible manufacturing systems (FMS) o Computer-integrated manufacturing (CIM) o o 14

FMS에 의한 생산라인의 개념도 1 6 4 2 5 7 3 8 15

FMS 예 16

FMS 예 중앙관제실 자동창고 공구저장소 차팔렛트 반송 컨베이어라인 공구무인반송차 머시닝센터 세정실 작업물 무인운반차 준비작업장 17

FMS 예 18

19

Types of Robot o Cylindrical o Polar o Cartesian o Joint Arm 20

FMS Machine 21

ASRS (자동창고) 22

AGV (무인운반차) 23

AGVS (무인운반차 시스템) http: //www. steinbockus. com/AGVs/animation. gif 24

Computer Integrated Manufacturing (CIM) 25

Facility Layout Design 26

Objectives of Facility Layout o Develop an economical layout which will meet the requirements of: n n product design and volume (product strategy) process equipment and capacity (process strategy) quality of work life (human resource strategy) building and site constraints (location strategy) o o o 사내물류비용의 최소화 공간의 효율적 활용 노동력의 효율적 활용 n 불필요한 움직임을 최소화함 o 병목현상을 완화 o 제조 및 서비스 시간 단축 27

What is Facility Layout o. Location or arrangement of everything within & around buildings o. Objectives are to maximize n Customer satisfaction n Utilization of space, equipment, & people n Efficient flow of information, material, & people n Employee morale & safety 28

Types of Layouts o o o Product-oriented layout Process-oriented layout Fixed-position layout Office layout Retail layout Warehouse layout 29

Product Oriented Layout Used for Repetitive or Continuous Processing o Product Oriented Layout o Layout that uses standardized processing operations to achieve smooth, rapid, high-volume flow 30

Product Oriented Layout 장단점 o 장점 n Lower variable cost per unit (낮은 변동비) n Lower but more specialized labor skills n Easier production planning and control (생산계획 및 통제의 용이성) n Higher equipment utilization (70% to 90%) (설비의 높은 가동율) o 단점 n Lower product flexibility (제품 종류가 한정) n More specialized equipment (전용설비) n Usually higher capital investment (높은 초기투자비용) 31

Process Oriented Layout (job shop) 설비 배치 Lathe Department L L L L L Milling Department Drilling Department M M D D D D G G G P L Grinding Department Receiving and Shipping Painting Department A A Assembly A 32

Process Oriented Layout o Facilities(설비) are organized by process o Similar processes are together n Example: All drill presses are together o Low volume, high variety products (다품종 소량) o ‘Jumbled’ flow (뒤범벅 흐름) Jumbled 33

Process Oriented Layout 장단점 o 장점 n n n o Greater product flexibility (다양한 제품을 생산) More general purpose equipment (범용성이 높은 설비 사용) Lower initial capital investment (낮은 초기 설비 투자) 단점 n n High variable costs (높은 변동비) More highly trained personnel (다기능공) More difficult production planning & control (생산계획 및 통제의 어려움) Low equipment utilization (5% to 25%) (낮은 설비 효율성) 34

Emergency Room Layout (Process-Oriented Layout) er y E. R. Triag e room Patient A broken leg E. R. Admissions Su rg Patient B erratic pacemaker Hallway Ra d iol og y E. R. beds Pharmacy Billing/ex it 35

Steps in Developing a Process-Oriented Layout 1 Construct a “from-to matrix” 2 Determine space requirements for each department 3 Develop an initial schematic diagram 4 Determine the cost of this layout 5 By trial-and-error (or more sophisticated means), try to improve the initial layout 6 Prepare a detailed plan that evaluates factors in addition to transportation cost 36

Cost of Process-Oriented Layout 37

Interdepartmental Flow of Parts 1 1 2 3 4 5 6 50 100 0 0 20 30 50 10 0 20 0 100 50 0 0 38

Possible Layout 1 Room 2 Room 3 Assembly Printing Machine Shop Department (1) (2) (3) Receiving Shipping Testing 40’ Department (4) (5) (6) Room 4 Room 5 Room 6 60 39

Interdepartmental Flow Network Showing Number of Weekly Loads 10 0 1 1 50 2 3 30 20 50 4 근접운반비 비근접운반비 10 50 5 20 100 6 (Adjacent Cost) = $1, (Non-Adjacent C. ) = $2 40 Total Cost = 50+200+40+30+50+10+40+100+50 = $570

Possible Layout 2 Room 1 Room 2 Painting Assembly Machine Shop Department (2) (1) (3) Receiving Shipping Testing 40’ Department (4) (5) (6) Room 4 Room 5 Room 6 60 41

Interdepartmental Flow Graph Showing Number of Weekly Loads 30 2 1 50 20 50 10 0 20 3 100 10 4 50 5 6 근접운반비(Adjacent Cost)= $1, 비근접운반비(Non-Adjacent C. )=$2 42 Total Cost = 50+100+20+60+50+10+40+100+50=$480

Computer Programs to Assist in Layout o o o o CRAFT SPACECRAFT 3 -D MULTIPLE CORELAP ALDEP COFAD FADES - expert system 43

Fixed Position Layout o Layout in which the product or project remains stationary, and workers, materials, and equipment are moved as needed 비행기, 선박 등의 생산방식 44

Cellular Layout - Work Cells o. A temporary product-orient arrangement of machines and personnel in what is ordinarily a process-oriented facilities 45

Work Cell Floor Plan Saws Tool Room Drills Office Work Cell 46

Improving Layouts by Moving to the Work Cell Concept 47

Work Cell Advantages Inventory Floor space Direct labor costs Equipment utilization Employee participation Quality 48

Office Layout o. Design positions people, equipment, & offices for maximum information flow o. Arranged by process or product n Example: Payroll dept. is by process o. Relationship chart used o. Examples n Insurance company n Software company 49

Relationship Chart (부문상호관계표) 1 President 1 O 2 Costing 2 U A 3 Engineering 4 President’s Secretary A I O Ordinary closeness: President (1) & 3 Costing (2) 4 Absolutely necessary: President (1) & Secretary (4) 50

Office Relationship Chart 1 President 2 Chief Technology Officer 3 Engineer’s Area 4 Secretary 5 Office entrance 7 Equipment cabinet 8 Photocopy equipment 9 Storage room O U A A I I O I I U A I O O A E U O X E E U U A O O U I O X U A E E Val. Closeness A Absolutely necessary E Especially important I Important O Ordinary OK U Unimportant X Not desirable 51

Retail /Service Layout Grid Design Grocery Store Meat Office Carts Checkout Produc Frozen e Foods Milk Bread 52

Store Layout - with Dairy, Bread, High Drawer Items in Corners 53

Warehouse Layout o Design balances space (cube) utilization & handling cost o Similar to process layout n Items moved between dock & various storage areas o Optimum layout depends on o Variety of items stored o Number of items picked 54

An Assembly Line Layout 55

Line Balancing ü Precedence diagram ü Network showing order of tasks and restrictions on their performance ü Cycle time ü Maximum time product spends at any one workstation 56

Line Balancing ü Precedence Cycle time example diagram ü Network showing order of production time tasks and restrictions on available Cd = desired their performance units of output ü Cycle time (8 hours x 60 minutes / hour) Cd = ü Maximum time product units) (120 spends at any one 480 workstationd = C 120 = 4 minutes 57

Flow Time vs Cycle Time ü Cycle time = max time spent at any station ü Flow time = time to complete all stations 58

Flow Time vs Cycle Time ü Cycle time = max time spent at any station ü Flow time = time to complete all stations 1 2 3 4 minutes Flow time = 4 + 4 = 12 minutes Cycle time = max (4, 4, 4) = 4 minutes 59

Efficiency of Line Efficiency Minimum number of workstations i t i i i=1 E = n. C a t i N= i=1 Cd where ti j n Ca Cd = completion time for element i = number of work elements = actual number of workstations = actual cycle time = desired cycle time 60

Line Balancing Process 1. Draw and label a precedence diagram. 2. Calculate the desired cycle time required for the line. 3. Calculate theoretical minimum number of workstations. 4. Group elements into workstations, recognizing cycle time and precedence constraints. 5. Calculate the efficiency of the line. 6. Stop if theoretical minimum number of workstations on an acceptable efficiency level reached. If not, go back to step 4. 61

Line Balancing WORK ELEMENT A B C D Press out sheet of fruit Cut into strips Outline fun shapes Roll up and package PRECEDENCE TIME (MIN) — A A B, C 0. 1 0. 2 0. 4 0. 3 Desired unit of output : 6, 000 units Available working hour a day : 40 Hrs 62

Line Balancing WORK ELEMENT A B C D PRECEDENCE TIME (MIN) — A A B, C 0. 1 0. 2 0. 4 0. 3 Press out sheet of fruit Cut into strips Outline fun shapes Roll up and package B 0. 1 0. 2 A D 0. 3 C 0. 4 63

Line Balancing WORK ELEMENT A B C D PRECEDENCE TIME (MIN) — A A B, C 0. 1 0. 2 0. 4 0. 3 Press out sheet of fruit Cut into strips Outline fun shapes Roll up and package B 0. 2 40 hours x 60 minutes / hour 2400 Cd = = = 0. 4 minute 6, 000 units 6000 0. 1 A D 0. 3 0. 1 + 0. 2 + 0. 3 + 0. 4 1. 0 N= = = 2. 5 workstations 0. 4 C 0. 4 64

Line Balancing WORK ELEMENT A B C D PRECEDENCE TIME (MIN) — A A B, C 0. 1 0. 2 0. 4 0. 3 Press out sheet of fruit Cut into strips Outline fun shapes Roll up and package B 0. 2 40 hours x 60 minutes / hour 2400 Cd = = = 0. 4 minute 6, 000 units 6000 0. 1 A D 0. 3 0. 1 + 0. 2 + 0. 3 + 0. 4 1. 0 N= = = 2. 5 workstations 0. 4 3 workstations C 0. 4 65

Line Balancing WORK ELEMENT A B C D PRECEDENCE TIME (MIN) — A A B, C 0. 1 0. 2 0. 4 0. 3 Press out sheet of fruit Cut into strips Outline fun shapes Roll up and package B 0. 1 Cd = 0. 4 N = 2. 5 0. 2 A D 0. 3 C 0. 4 66

Line Balancing WORKSTATION ELEMENT B 0. 1 REMAINING TIME Cd = 0. 4 N = 2. 5 0. 2 A REMAINING ELEMENTS D 0. 3 C 0. 4 67

Line Balancing WORKSTATION 1 REMAINING ELEMENTS 0. 3 ELEMENT REMAINING TIME B, C A B 0. 1 Cd = 0. 4 N = 2. 5 0. 2 A D 0. 3 C 0. 4 68

Line Balancing WORKSTATION 1 REMAINING ELEMENTS 0. 3 0. 1 ELEMENT REMAINING TIME B, C C, D A B B 0. 1 Cd = 0. 4 N = 2. 5 0. 2 A D 0. 3 C 0. 4 69

Line Balancing WORKSTATION 1 REMAINING ELEMENTS 0. 3 0. 1 0. 0 ELEMENT REMAINING TIME B, C C, D D A B C 2 B 0. 1 Cd = 0. 4 N = 2. 5 0. 2 A D 0. 3 C 0. 4 70

Line Balancing WORKSTATION 1 REMAINING ELEMENTS 0. 3 0. 1 0. 0 0. 1 ELEMENT REMAINING TIME B, C C, D D none A B C D 2 3 B 0. 1 Cd = 0. 4 N = 2. 5 0. 2 A D 0. 3 C 0. 4 71

Line Balancing WORKSTATION 1 Work ELEMENT station 1 REMAINING Work TIME station 2 A B A, B C 0. 3 D minute 2 3 B 0. 1 0. 3 C 0. 1 0. 0 0. 4 0. 1 minute B, C D C, D D 0. 3 none minute Cd = 0. 4 N = 2. 5 0. 2 A REMAINING Work ELEMENTS station 3 D 0. 3 C 0. 4 72

Line Balancing WORKSTATION 1 2 3 Work ELEMENT station 1 REMAINING Work TIME station 2 A B A, B C 0. 3 D minute B 0. 3 C 0. 1 0. 0 0. 4 0. 1 minute 0. 2 REMAINING Work ELEMENTS station 3 B, C D C, D D 0. 3 none minute Cd = 0. 4 N = 2. 5 1. 0 0. 1 + 0. 2 + 0. 3 + 0. 4 0. 1 A E= = = 0. 3 D 0. 833 = 83. 3% 1. 2 3(0. 4) C 0. 4 73

Announcement o HW (제출하지 않음) n Example 1, 2 n Solved Problem 1 74

Good Bye! 75