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Design in Operations Management

Design in Operations Management. Operations Management Session 2. Objectives. By the end of this session, student will be able to: Understand the design function Know the stages involved in the design of products and designs

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Design in Operations Management

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  1. Design in Operations Management Operations ManagementSession 2

  2. Objectives • By the end of this session, student will be able to: • Understand the design function • Know the stages involved in the design of products and designs • Appreciate the importance of the design function in the production of products or services • Use simple flow charts, process flow charts, customer processing framework and method study techniques • Identify a manufacturing or service operation by it’s production type • Understand the procedure of a facilities layout decision • Identify the type of layout(s) within a given operation

  3. Topics • Product and Service Design • Process Design • Layout Design

  4. Definition • To satisfy needs of the customer • Applies to both products and services • The design activity is a transformation process • Starts with concept and ends in a created product or service • Provide products and services which will • Satisfy customers’ wants and needs • In a cost effective and efficient manner

  5. Product Designers • Seek to create things that:- • satisfy needs • meet expectations • are aesthetically pleasing • perform well • are reliable • are easy to manufacture and deliver • Operations Managers focus on the design of the transformation process

  6. Elements of Design • Quality • Speed • Dependability • Flexibility • Cost Why Important • Involves a lot of money • Decision process happens infrequently • Sets limits of operation’s capability

  7. Good Design • Meets customer requirements • Is simple to make • Can be rapidly developed into production • Few modifications are required during the development phase

  8. Design As a Transformation Process High Quality Speedily Produced Dependably Delivered Produced Flexibly Low Cost Input Transformed Resources Materials Information Customers The Design Process Output Input Input Transforming Resources Facilities Staff

  9. The Design Process • Concept Generation • Screening • Preliminary Design • Evaluation and Improvement • Prototyping and Final Design

  10. Product or Service Concept Generation Internal Sources External Sources Customer needs analysis Marketing Surveys Customer suggestions Research departments Suggestions from staff Competitors Concept Generation Concept generation

  11. Concept Screening

  12. Preliminary Design Reducing complexity: - • Standardisation – restrict variety to that which has real value for the customer • Commonality – use common elements in a product or service • Modularisation – sub-components that can be assembled in different ways

  13. Concurrent Design • Integrated product and process design • Simultaneous decision making by design teams • Design function needs to be more de-centralised • Needs careful control - Project Management

  14. Design for Manufacturing • If a product is easy to make it will be economical to produce • It is important to consider the manufacturability early in the design phase • Integrate product design with process planning and design

  15. Characteristics of Service • Intangible • High customer contact • Easily copied • Perishable • Not able to store or stock • De-centralised • Each delivery is unique

  16. Service Design PERFORMANCE SPECIFICATION DESIGN SPECIFICATION DELIVERY SPECIFICATION

  17. A Well Designed Service system • Customer friendly • Flexible • Easy to maintain • Cost effective • Robust • Quick to respond • Consistent with the company’s strategy

  18. Case Study • Design Principles at Braun AG

  19. Facilities Layout Decision Procedure Volume and variety Project process Jobbing process Batch process Mass process Continuous process Decision 1 Process type Strategic performance objectives Decision 2 Fixed position layout Process layout Cell layout Product layout Basic layout type Decision 3 Detailed design of layout The physical position of all transforming resources Flow of transformed resources

  20. What is Layout & Flow? • Layout – deciding where to put all the facilities, machines, equipment & staff in an operation • Flow – the way in which transformed resources travel through the operation

  21. Why is Layout Design Important? • Requires substantial investments of resources • Involves long term commitments – not easily changed • Impact on the cost & efficiency of short term operations

  22. Fixed Position Layout • Transformed resources remain stationary • Transforming resources move as necessary • Effectiveness is governed by:- • Scheduling of transforming resources • Reliability of transforming resources • Examples: • shipbuilding • construction projects • some surgery • Restaurant • Highway construction

  23. Process Layout • Similar processes (or with similar needs) are located together • Utilisation of transforming resources is improved • Transformed resources move through the operation according to their needs • Different products  different needs different routes • May be very complex • Supermarkets • Some machine manufacture

  24. Cell Layout • Machines or services grouped into cells • Cells determined by the process requirements of the family of product/services they transform • Could be considered mini product layouts • Can simplify a functional/process layout • Flexible • Duplicates some resources • Buffet restaurant • Disco

  25. Saws Drills Office WorkCell Tool Room Cell Layout

  26. Product Layout • Locates the transforming resources entirely for the convenience of the transformed resources • Transformed resources follow a specified route • Flow is clear, predictable, easy to control • car assembly • paper manufacture • self-service cafe

  27. Comparison of Main Layouts Fixed Process Cell Product Position Advantages Very high productand mix flexibility Product/customernot moved High variety of tasks for staff High product and Can give good mix flexibility. compromise. Low unit costs for high volume. Relatively robust Fast throughput. in the case of Opportunities for disruptions. Group work can specialization of result in good equipment. Easy to supervise. motivation. Disadvantages Can have low mix Very high unitcosts Low utilization. Can be costly to flexibility. rearrange existing Can have very high work in progress layout. Not very robust to Scheduling space disruption. and activities can Can need more be difficult. Complex flow. plant. Work can be very repetitive.

  28. What Makes a Good Layout? • Safety • Length of flow • Clarity of flow • Staff comfort • Management coordination • Accessibility • Space utilisation • Long term flexibility

  29. General Process Layout Design Method • Gather data on work centres & the flow between them • Design schematic of work centres & flows • Adjust schematic for spatial constraints • Draw layout showing actual work centre areas & distances resources/people must travel. Calculate effectiveness measure • Attempt to improve effectiveness, through relocating work centres

  30. Detail Design - Fixed Position • Design a layout to maximise the effectiveness of the transforming resources • Resource location • Define site & available locations • Define resource centres & their requirements • Devise evaluation criteria • Match resource centres to available locations • Preliminary allocation on site criteria • Amend allocation using relative-location criteria

  31. Detailed Design - Process Layout • Complex due to large number of options possible • Flow charts & relationship charts - balancing • Some of the information requirements • Area required by each work centre • Constraints on the shape of work area allocated • Degree & direction of flow between work areas • Desirability of work centres proximity to each other or to fixed points in the layout

  32. Detail Design – Cell Layout • Cells are a compromise between the flexibility of process layout & the simplicity of product layout • Requires decisions as to • Extent & nature of cells to adopt • Resources to allocate to cells • Product Flow Analysis

  33. Process vs Cell Layout Process Layout Work Cell 1 SAW LATHE 2 SAW PRESS LATHE SAW 2 4 LATHE 5 LATHE HEATTREAT GRINDER 3 1 PRESS GRINDER HEATTREAT 6 PRESS GRINDER

  34. Detail Design – Product Layout • Arranging the stages • Long-thin or short-fat? • Shape of the line • Staffing flexibility & balance • Rework • Handling • Passage • Teamwork

  35. Long-Thin or Short-Fat? (1) 30 mins 30 mins 30 mins 30 mins 60 mins 60 mins 60 mins 60 mins 120 mins 120 mins 120 mins 120 mins

  36. Long-Thin or Short-Fat? (2) • Advantages of Long-Thin Layouts • Controlled flow • Simple materials handling • Lower capital requirements • More efficient operation • Advantages of Short-Fat Layouts • Higher mix flexibility • Higher volume flexibility • Higher robustness • Less monotonous work

  37. Case Study • Delhaize De Leeuw supermarket

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