DOM 102 : Principles of DOM 102 : Principles of Operations managementOperations management

Process Flows & Facilities Process Flows & Facilities LayoutLayout

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

IV.Continuous

Flow

III.Assembly

Line

II.Batch

I.Job

Shop

LowVolume,One of a

Kind

MultipleProducts,

LowVolume

FewMajor

Products,HigherVolume

HighVolume,

HighStandard-

ization

CommercialPrinter

French Restaurant

HeavyEquipment

AutomobileAssembly

Burger King

SugarRefinery

Flexibility (High)Unit Cost (High)

Flexibility (Low)Unit Cost (Low)

These are the major stages of product and process life cycles

These are the major stages of product and process life cycles

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

2

Layout planning Centers to contain Space & Capacity for each centre Center space configuration Center location – interdepedence

2

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

2

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

2

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

2

Line flow strategy for continuous prdtn – high volumes

Advantages Processing rates highLess Productive time lostLower inventories

DisadvantagesRisk of layout redesign for short product livesLess flexibilityLow resource utilization for low volumesPdtcn planning & control difficult

2

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

2

Product is fixed in one placeKey consideration is sequence of

material usage & hence placement Used for massive product Ship building Building dams or bridges

2

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

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

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

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

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

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

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

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