DOM 102 : Principles of Operations management Process Flows & Facilities Layout

1. DOM 102 : Principles of Operations management Process Flows & Facilities Layout

2. Job shop – eg making one chair for an individual by a furniture workshop Batch shop eg making many chairs for the university of Nairobi by a furniture workshop Assembly Line - eg Automobile manufacturer, putting parts together to make the finished product – GM Continuous Flow - eg Petroleum manufacturer – Kenya Oil Refineries Recall - Process Flow Structures

3. Few Major Products, Higher Volume High Volume, High Standard- ization Low Volume, One of a Kind Multiple Products, Low Volume Flexibility (High) Unit Cost (High) I. Job Shop Commercial Printer French Restaurant II. Batch Heavy Equipment III. Assembly Line Automobile Assembly Burger King IV. Continuous Flow Sugar Refinery Flexibility (Low) Unit Cost (Low) These are the major stages of product and process life cycles

4. Facility layout can be defined as the process by which the placement of departments, workgroups within departments, workstations, machines, and stock-holding points within a facility are determined Determined by the type of process flow chosen Facility Layout Defined

5. Layout planning • Centers to contain • Space & Capacity for each centre • Center space configuration • Center location – interdepedence Facilities Layout - Introduction 2

6. Facilitating material & info flow • Efficient labor & equipment utilization • Customer convenience & sales • Reducing hazards to workers • Improving employee morale • Maximizing flexibility, co-ordination, visibility Minimizing distance, handling cost etc • Creating inherent safety Strategic Issues 2

7. Choice depends on firms flow strategy • Process layout – low volumes • Resources relatively general purpose & less capital intensive • Less vulnerable to product mix changes • Equipment utilization • Employee supervision can be more specialised Layout Types 2

8. Process layout – Disadvantages • Processing rates slow • Productive time lost • More space & capital tied up in inventory • Time lags between jobs – productivity • Material handling costly • Diversity in routings – variable path devices • Pdtcn planning & control difficult Layout Types - Process 2

9. Line flow strategy for continuous prdtn – high volumes Advantages • Processing rates high • Less Productive time lost • Lower inventories Disadvantages • Risk of layout redesign for short product lives • Less flexibility • Low resource utilization for low volumes • Pdtcn planning & control difficult Layout Types – Product 2

10. A mix of process & Product • Used for fabrication & assembly • Used in situations like flexible mfg systems (FMS) • Group Technology cell (GT) • One Worker Multiple Machines (OWMM) cell Layout Types – Hybrid 2

11. Product is fixed in one place Key consideration is sequence of material usage & hence placement Used for massive product • Ship building • Building dams or bridges Layout Types – Fixed position 2

12. Capital investment level • Requirements for materials handling • Ease of stock – picking • Working environment & ‘atmosphere • Ease of equipment maintenance • Employee attitudes • Amount of flexibility needed • Customer convenience & sales level Performance Criteria facing planner 2

13. Goal--maximize customer contact and communication across sections • Current trend – partial glass separators between offices • Issues • Communication • Work flow sequence • Sharing of office equipment • Fast throughput Office Layout

14. Goal--maximize net profit per square foot of floor space • Servicescapes – the physical surroundings in which the service takes place & how the surroundings affect customers & employees • Ambient Conditions • Spatial Layout and Functionality • Signs, Symbols, and Artifacts Retail Service Layout

15. Ambient Conditions – refers to background characteristics such as the noise level, music, lighting, temperature & scent • Affect employee performance & morale as well as customers perceptions of the service, how long they stay, & how much money they spend • Though primarily influenced by the design of the building, the layout within a building can also affect Retail Service Layout

16. Spatial Layout and Functionality Planning the circulation path of the customers & grouping the merchandise • Goal of circulation planning is to expose customers to as much of the merchandise as possible while placing any needed services along the path Retail Service Layout

17. Signs, symbols & artifacts – parts of the service that have social significance • Are a characteristic of the design of the building although the orientation, location & size of many objects can carry special meaning • E.g person seated closest to entrance, car salespeople having blackboards in their offices Retail Service Layout

18. Production time predictable • Little inter-stage storage of materials • Open plant floors so everyone can see what is happening • Bottleneck operations under control • Workstations close together • Orderly handling & storage of materials • No unnecessary re-handling of materials • Easily adjustable to changing conditions • Straight-line flow pattern or adaptation Marks of a good layout for manufacturing & back-office operations

19. Adequate waiting facilities • Easy communication with customers • Easily maintained customer surveillance • Easily understood service flow pattern • Clear exit & entry points with adequate checkout facilities • Depts & processes arranged so that customers see only what you want them to see • Balance between waiting areas & service areas • Minimum walking & material movement • Lack of clutter • High sales volume per square foot of facility Marks of a good layout for face-to-face services