MTSU

Facility LayoutArrangement of

Manufacturing and Services Processes

MTSU 2

Locate All Areas Within a Building Equipment Work stations Material storage Rest/break areas Utilities Eating areas Aisles Offices

MTSU 3

Characteristics of the Facility Layout Decision (1 of 2)

Location of these various areas impacts the flow through the system

The layout can affect productivity and costs generated by the system

Layout alternatives are limited by the amount and type of space required for the

various areas, the amount and type of space available and the operations strategy

MTSU 4

Characteristics (2 of 2)

Infrequent Expensive to implement Studied and evaluated extensively Involves a long-term commitment

MTSU 5

Manufacturing Facility Layout

Basic layout forms Process Product Cellular Fixed position

MTSU 6

Process Layouts(Job Shop)

Equipment that performs similar processes is grouped together

Used when the operations system must handle a wide variety of products in relatively small volumes, i.e., flexibility

MTSU 7

Characteristics ofProcess Layouts (1 of 2)

General-purpose equipment used Changeover is rapid Material flow is intermittent Material handling equipment is flexible Operators must be highly skilled

MTSU 8

Characteristics (2 of 2)

Technical supervision required Planning, scheduling and controlling

functions are challenging Production time is relatively long In-process inventory is relatively high

MTSU 9

Product Layouts(Assembly Line)

Operations are arranged in the sequence required to make the product

Used when the operations system must handle a narrow variety of products in relatively high volumes

Operations and personnel are dedicated to producing one or a small number of products

MTSU 10

Characteristics ofProduct Layouts (1 of 2)

Special-purpose equipment used Changeover is expensive and lengthy Material flow approaches continuous Material handling equipment is fixed Operators need not be skilled

MTSU 11

Characteristics (2 of 2)

Little direct supervision required Planning, scheduling and controlling

functions are relatively straight-forward Production time for a unit is relatively short In-process inventory is relatively low

MTSU 12

Cellular Layout

Operations required to produce a particular family (group) of parts are arranged in the sequence required to make that family

Used when the operations system must handle a moderate variety of products in moderate volumes

MTSU 13

Characteristics Relative to Process Layouts

Equipment can be less general-purpose Material handling costs are reduced Training periods for operators are shortened In-process inventory is lower Parts can be made faster and shipped more

quickly

MTSU 14

Characteristics Relative to a Product Layout

Equipment can be less special-purpose Changeovers are simplified Production easier to automate

MTSU 15

Fixed-Position Layouts

Product remains in a fixed position, and the personnel, material and equipment come to it

Used when the product is very bulky, large, heavy or fragile

Examples

MTSU 16

Hybrid Layouts

Combination of layout types

MTSU

Service Facility Layouts

MTSU 18

Characteristics of Services (1 of 2)

There may be a diversity of services provided

There are three dimensions to the type of service Standard or custom design Amount of customer contact Mix of physical goods and intangible services

MTSU 19

Characteristics (2 of 2)

There are three types of service operations Quasi manufacturing Customer-as-participant Customer-as-product

MTSU 20

Characteristics ofService Facility Layouts

The encounter between the customer and the service must be provided for

The degree to which customer-related features must be provided varies with the amount of involvement and customer contact

MTSU 21

Analyzing Service Facility Layouts

For quasi manufacturing services, approaches used to design and analyze process and product layouts may be used

Provide for customer waiting lines

MTSU 22

Retail Service Layout

Objective: Maximize net profit per square foot of store space

Servicescape refers to the physical surroundings in which the service takes place, and how these surroundings affect customers and employees ambient conditions spatial layout and functionality Signs, symbols and artifacts

MTSU

Job Design, Work Measurement, and Learning Curves

MTSU

Job Design

MTSU 25

Job Design

Definition - Specifying the work activities of an individual or group in an organizational setting What is to be done (job content) How it is to be done (job method)

MTSU 26

Issues Affecting Job Design Quality control as part of the worker’s job Cross-training workers to perform multiskilled jobs Employee involvement and team approaches “Informating” ordinary workers through

telecommunication networks and computers Extensive use of temporary workers Automation of heavy manual work Organizational commitment to providing

meaningful and rewarding jobs

MTSU 27

Considerations in Job Design

Behavioral Specialization of labor Job enrichment Sociotechnical systems

Physical Work physiology Anthropometric data Ergonomics

MTSU 28

Work Methods (1 of 2)

Overall Productive System Identify delays, transportation distances, processes,

and processing time requirements to simplify the entire operation

Flow diagram and process chart

Worker at a Fixed Workplace Simplify the work method and make the required

operator motions as few and as easy as possible

MTSU 29

Work Methods (2 of 2)

Worker Interacting with Equipment Efficient use of the person’s and equipment

time Worker-machine charts

Workers Interacting with Other Workers activity or gang chart

MTSU

Work Measurement and Standards

MTSU 31

Work Measurement Purpose is to establish the standard for a

particular job These standards are used to

schedule work and allocate capacity provide an objective basis for motivating the

work force and measuring their performance bid for new contracts and to evaluate

performance on existing ones provide benchmarks for improvement compute the cost of a product

MTSU 32

Work Measurement Techniques

Time Study Elemental Standard-Time Data Predetermined Motion-Time Data Systems Work Sampling

MTSU 33

Time Study (1 of 3)

Information is generally gathered by observing an operator directly or on video tape using a stopwatch

The job or task being studied is broken down into elements

The operator is timed on his/her performance of each of the elements over a number of cycles or repetition

MTSU 34

Time Study (2 of 3)

While the analyst is collecting the time data, he/she is also evaluating the “quality” of the operators performance relative to that jobs “normal” time

This performance rating is somewhat subjective and is based on the complexity and difficulty of the task, and the operator’s skill, dexterity and speed

MTSU 35

Time Study (3 of 3)

Normal time = Average observed time X Performance rating

Standard time = Normal time + (Allowances X Normal time) or

= Normal time/(1-Allowance) The number of observations required depends

on the precision and confidence level desired by the analyst and the variability of the observed times

MTSU 36

Elemental Standard-Time Data (1 of 2)

Information was obtained from previous time studies and codified in tables in a data base

Break down the job into its elements Look up each element in the data base and

the time associated with it. Times obtained from these tables are considered as normal time

MTSU 37

Elemental (2 of 2)

Adjust the element time for special characteristics of the job

Add element times together and apply allowances

MTSU 38

Predetermined Motion-TimeData Systems (PMTS) (1 of 2)

Use tables with times form basic motions. these data are generic to a wide range of manual work

Three PMTS systems are available methods time measurement (MTM) most work measurement systems (MOST) work factor

MTSU 39

Predetermined (2 of 2)

Advantages They enable development of standards before a job

exists They have been tested extensively in the laboratory

and field They include performance rating in the times given

in the tables They can be used to audit time studies for accuracy They are accepted as part of many union contracts

MTSU 40

Work Sampling (1 of 3)

Involves observing a portion of or sample of the work activity and drawing some conclusions about the activity

Identify the specific activity or activities to be studied

Estimate the proportion of time the activity of interest is of the total time

MTSU 41

Work Sampling (2 of 3)

Determine the level of confidence and the accuracy desired, and compute the sample size

Determine the specific times when each observation is to be made. It is important that these observation times be selected randomly

MTSU 42

Work Sampling (3 of 3)

At the end of the study, divide the number of times the activity of interest was observed divided by the total number of observations to find the percentage of time the subject is engaged in the activity of interest

Three primary applications Ratio delay Performance measurement Time standards

nonrepetitive tasks repetitive tasks

MTSU 43

Advantages of Work Sampling Several work sampling studies may be conducted

simultaneously by the same observer The observer need not be a trained analyst No timing devices are required Work of a long cycle time may be studies with fewer

observer hours The duration of the study is longer, which minimizes

effects of short-period variations The study may be temporarily delayed with little effect Operator has less chance to influence the findings by

changing his/her work pattern

MTSU 44

Financial Incentive Systems

Basic compensation systems Time spent on the job

Hourly pay Straight salary

Direct daily output Piece rate

Sales Commission

MTSU 45

Individual and Small-Group Plans Based on output and quality measures Aggregate individual pay - pay for worker in

a group is based on the average performance of all workers in the group

Skill development (pay for knowledge)

MTSU 46

Organizationwide Plans

Profit sharing - distribute a percentage of profits across the work force

Gain sharing Based on controllable costs or units of output Always combined with a participative approach to management

Scanlon - workers are paid on the basis of the incentive rates worked out in management-worker committees

Lincoln Electric - combination of a piece-work plan, a yearly bonus, and a stock-purchase plan

MTSU 47

Learning Curves Shows the relationship between unit

production time and the number of consecutive units produced

Based on three assumptions The amount of time required to complete a given

task will be less each time the task is undertaken The unit time will decrease at a decreasing rate The reduction in time will follow a predictable

pattern

MTSU 48