Lecture 5-Chapter 6 - Chapter 6 Process Selection and...

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Chapter 6 Process Selection and Facility Layout
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Process Selection and System Design Forecasting Product and service design Capacity planning Facilities and Equipment Layout Work design Process selection Technological change
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Introduction Make or Buy? Available capacity Expertise Quality Consideration The nature of demand Cost
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Variety How much Flexibility What degree Volume Expected output Process Selection
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Process Types 1. Job Shop Low volume, high variety, small runs, intermittent processing, high flexibility of equipment, skilled workers, high variable cost per unit, low fixed costs, complex scheduling, high WIP inventory 2. Batch Moderate volume, moderate variety, less flexible equipment and less skilful workers that in a job shop environment 3. Repetitive (Assembly line) Semi continuous, slight flexibility of the equipment, skill of workers is low, routine scheduling, low WIP inventory 4. Continuous High volume, highly standardized equipment, high fixed costs, low variable costs, low WIP inventory
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Product variety High Moderate Low Very low Equipment flexibility High Moderate Low Very low Low volume Job Shop (springs) lexibility uality Moderate volume Batch (furniture) High volume Repetitive (cars, trucks) Dependability Cost Very high volume Continuous Flow (steel, paper, sugar) Process Types
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Product-Process Matrix Flexibility-QualityDependability-Cost Continuous Flow Assembly Line Batch Job Shop Low Volume One of a Kind Multiple Products, Low Volume Few Major Products, Higher Volume High Volume, High Standard- ization Commercial Printer Heavy Equipment Automobile Assembly Sugar Refinery Flexibility- Quality Dependability Cost
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Continuous Process Highly standardized products in large volumes Often these products have become commodities Typically these processes operate 24 hours/day seven days/week Objective is to spread fixed cost over as large a volume as possible
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Continuous Process continued Starting and stopping a continuous process can be prohibitively expensive Highly automated and specialized equipment used Layout follows the processing stages Output rate controlled through equipment capacity and flow mixture rates
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Continuous Process continued Low labor requirements Often one primary input Initial setup of equipment and procedures very complex
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Flow Shop Similar to continuous process except discrete product is produced Heavily automated special purpose equipment High volume - low variety Both services and products can use flow shop form of processing
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A Generalized Flow Shop Operation
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Advantages of the Flow Shop Low unit cost specialized high volume equipment bulk purchasing lower labor rates low in-process inventories simplified managerial control
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Disadvantages of Flow Shop Variety of output difficult to obtain Difficult to change rate of output Minor design changes may require substantial changes to the equipment Worker boredom and absenteeism Work not very challenging Vulnerable to equipment breakdowns
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