Chapter 3: Process Choice and Layout Decisions in Manufacturing and Services

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1

Product-based layout

A type of layout where resources are arranged sequentially, according to the steps required to make a product.

2

Functional layout

A type of layout where resources are physically grouped by function.

3

Manufacturing Process Types

  • Continuous Flow Processes
  • Production Line
  • Batch Manufacturing
  • Job Shop
  • Fixed Position Layout
4

Production Line

A type of manufacturing process used to produce a narrow range of standard items with identical or highly similar designs.

  • Follows a product-based layout.
  • Steps are usually linked by some system that moves the items from one step to the next.
  • Suitable for high-volume production of product(s) characterized by similar design attributes.
  • Need high volumes to justify the required investment in specialized equipment and labor.
  • Are inflexible with regard to items that do not fit the design characteristics of the production line.
5

Continuous Flow Processes

A type of manufacturing process that produces highly standardized products using a tightly linked, paced sequence of steps.

  • Closely resembles the production line process
  • Form of product usually cannot be broken into discrete units.
  • Examples include yarns and fabric, food products, and chemical products such as oil and gas
6

Job Shops

A type of manufacturing process used to make a wide variety of highly customized products in quantities as small as one.

  • Characterized by general-purpose equipment and broadly skilled workers.
  • Main emphasis is meeting a customer’s unique requirements.
  • Product design is not standardized.
  • Typically follows a functional layout.
  • Examples include custom furniture, specialized machine tools used by manufacturers, and restoration and refurbishing work.
7

Batch Manufacturing

A type of manufacturing process where items are moved through the different manufacturing steps in groups or batches.

  • Fits between job shops and lines in terms of production volumes and flexibility and strikes a balance between the flexibility of a job shop and the efficiency of a line.
  • Is the most common type of manufacturing process.
  • The sequence of steps is not as tightly linked as a production line.
  • Flexible Manufacturing Systems – Highly automated batch processes that can reduce the cost of making groups of similar products.
8

Fixed-Position Layout

A type of manufacturing process in which the position of the product is fixed.

  • Materials, equipment, and workers are transported to and from the product.
  • Used in industries where the products are very bulky, massive, or heavy and movement is problematic.
  • Examples include shipbuilding, construction projects, and traditional home building.
9

Hybrid Manufacturing Process

A term referring to a manufacturing process that seeks to combine the characteristics, and hence advantages, of more than one of the classic processes.

  • Machining centers
  • Group technology
  • Flexible manufacturing systems
10

Four Levels of Customization

Make-to-stock (MTS)

Assemble-to-order (ATO)

Make-to-order (MTO)

Engineer-to-order (ETO)

11

Make-to-stock (MTS)

Products that require no customization.

12

Assemble-to-order (ATO)

Products that are customized only at the very end of the manufacturing process.

13

Make-to-order (MTO)

Products that use standard components but the final configuration of those components is customer specific.

14

Engineer-to-order (ETO)

Products are designed and produced from the start to meet unusual customer needs or requirements.

15

Services versus Manufacturing

1.Intangible Product

2.Customer Involvement

3.Simultaneous Consumption/Production

4.No Finished Goods Inventory

16

Tangibles

Décor, waiting facilities, up-to-date equipment

17

Reliability

Responsible, competent

18

Responsiveness

Waiting times, service times, politeness, convenience

19

Assurance

Trust, credibility, reputation

20

Empathy

Caring attitude, genuine concern

21

Service Customization

Ranges from highly customized to standardized.

  • As the degree of customization decreases, the service package becomes more standardized.
  • As the degree of customization increases, the service package becomes less predictable and more variable.
22

Customer Contact

The degree of customer contact determines the relative importance of front room and back room operations in a service process

23

Front Room

The physical or virtual point where the customer interfaces directly with the service organization.

  • Examples: Sales floor in a retail store, Help desk for a software provider, Web page for a company.
24

Back Room

  • The part of a service operation that is completed without direct customer contact.
  • Examples: Package sorting at FedEx or UPS, Testing medical samples
25

Assembly Line Balancing
Capacity, Cycle Time, Utilization

  • Use: Analysis for layout by product
  • What: Selecting the appropriate combination of work tasks to perform at each work station such that work is performed in a feasible sequence.
  • Objective: Meet target output with minimum labor and facility costs.
26

Cycle Time

Time between completion of successive items.

27

Bottleneck

Work station requiring the longest processing time.

28

Idle Time

Total labor available each cycle minus total task time.

29

Utilizat ion

Portion of time labor is working.

30

Task time

Actual working time to make the product

31

Capacity

Available work time/cycle time

32

Minimum number of work stations

N = (sum of task times)/(cycle time)