1. Process Selection and
Facility Layout
McGraw-Hill/Irwin
Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.

2.  You should be able to:
1. Explain the strategic importance of process selection
2. Describe the influence that process selection has on the
organization
3. Compare the basic processing types
4. Explain the need for management of technology
5. List some reasons for redesign of layouts
6. Describe the basic layout types, and the main advantages and
disadvantages of each
7. Solve simple line-balancing problems
8. Develop simple process layouts
Student Slides 6-2

3. Process selection
 Refers to deciding on the way production of goods or
services will be organized
 It has major implications for
Capacity planning
Layout of facilities
Equipment
Design of work systems
Student Slides 6-3

4. Repetitive/
Job Shop Batch Assembly Continuous
Description Customized Semi- Standardized Highly standardized
goods or standardized goods or Goods or services
services goods or services
services
Advantages Able to handle a Flexibility; easy Low unit Very efficient, very
wide variety to add or change cost, high volume, high volume
of work products or efficient
services
Disadvantages Slow, high cost Moderate cost Low flexibility, Very rigid, lack of
per unit, per unit, high cost of variety, costly to
complex moderate downtime change, very high cost
planning and scheduling of downtime
scheduling complexity
Student Slides 6-4

5. Technological Innovation
 The discovery and development of new or improved
products, services, or processes for producing or
providing them
Technology
 The application of scientific discoveries to the
development and improvement of products and
services and/or the processes that produce or provide
them
Student Slides 6-5

6. Automation
 Machinery that has sensing and control devices that
enable it to operate automatically
Fixed automation
Programmable automation
Flexible automation
Student Slides 6-6

7. Layout
 the configuration of departments, work centers, and
equipment, with particular emphasis on movement of
work (customers or materials) through the system
 Facilities layout decisions arise when:
Designing new facilities
Re-designing existing facilities
Student Slides 6-7

8. Product layout
 Layout that uses standardized processing operations to
achieve smooth, rapid, high-volume flow
Raw materials
Station Station Station Station Finished
or customer item
1 2 3 4
Material Material Material Material
and/or and/or and/or and/or
labor labor labor labor
Used for Repetitive Processing
Repetitive or Continuous
Student Slides 6-8

9. Process layouts
 Layouts that can handle varied processing requirements
Dept. A Dept. C Dept. E
Dept. B Dept. D Dept. F
Used for Intermittent processing
Student Slides
Job Shop or Batch 6-9

10. Fixed Position layout
 Layout in which the product or project remains
stationary, and workers, materials, and equipment are
moved as needed
Student Slides 6-10

11.  Some operational environments use a combination of the
three basic layout types:
 Hospitals
 Supermarket
 Shipyards
 Some organizations are moving away from process layouts
in an effort to capture the benefits of product layouts
 Cellular manufacturing
 Flexible manufacturing systems
Student Slides 6-11

12.  Service layouts can be categorized as: product,
process, or fixed position
 Service layout requirements are somewhat different
due to such factors as:
 Degree of customer contact
 Degree of customization
 Common service layouts:
 Warehouse and storage layouts
 Retail layouts
 Office layouts
Student Slides 6-12

13. Line balancing
 The process of assigning tasks to workstations in such
a way that the workstations have approximately equal
time requirements
 Goal:
Obtain task grouping that represent approximately equal
time requirements since this minimizes idle time along the
line and results in a high utilization of equipment and labor
 Why is line balancing important?
1. 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.
Student Slides 6-13

14. The main issue in designing process layouts concerns
the relative placement of the departments
Measuring effectiveness
 A major objective in designing process layouts is to
minimize transportation cost, distance, or time
Student Slides 6-14

15.  In designing process layouts, the following
information is required:
1. A list of departments to be arranged and their dimensions
2. A projection of future work flows between the pairs of work
centers
3. The distance between locations and the cost per unit of distance
to move loads between them
4. The amount of money to be invested in the layout
5. A list of any special considerations
6. The location of key utilities, access and exit points, etc.
Student Slides 6-15