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Operations Management UTCC Page 1
Production Planning
and Control
Chapter 6
School of Engineering
The University of the Thai
Chamber of Commerce
Operations Management UTCC Page 2
Process Selection and
Facility Layout
School of Engineering
The University of the Thai Chamber of Commerce
Operations Management UTCC Page 3
Demand
Forecasting
Product Design
Technology
โจทย ์ตัง้โรงงานใหม่
การเลือกกระบวนการผลิต
Capacity Planning
Operations Management UTCC Page 4
Input Process Output
Organization
Affect
Wrong decision
Operations Management UTCC Page 5
Agenda
• Process selection and Facility layout
• Why and how process selection has such influence
• Basic concept for processing work
• Discussion, How processes and layout are linked
Operations Management UTCC Page 6
• Process selection
– Deciding on the way production of goods or services will be
organized
• Major implications
– Capacity planning
– Layout of facilities
– Equipments
– Design of work systems
• Occurs when
– New products or services are being planned
– Technological changes in products or equipments, as well as
competitive pressures
Introduction
Operations Management UTCC Page 7
Demand
Forecasting
Product and
Service Design
Technological
Change
Capacity
Planning
Process
Selection
Facilities and
Equipments
Layout
Work
Design
Process Selection and System Design
Operations Management UTCC Page 8
• Key aspects of process strategy
- Make or Buy decisions
– Capital intensive – equipment/labor
– Process flexibility
– Adjust to changes
Design
Volume
Technology
Process Strategy
Operations Management UTCC Page 9
• Variety
– How much
• Flexibility
– What equipment
• Volume
– Expected output
Job Shop
Batch
Repetitive
Continuous
Process Selection
Operations Management UTCC Page 10
• Job shop– Small scale and Processing is intermittent
– Low volume of high variety goods and services
– High flexibility using general purpose equipments and skilled worker
– Example: Tool and die shop, veterinarian’s office
• Batch– Moderate volume of goods or services
– It can handle a moderate variety in products and services
– The equipments need not be as flexible as in a job shop
– The skill level of workers doesn’t need to be as high as in a job shop because there is less variety in the jobs being processed
– Example: bakeries, movie theatres, magazines
Process Types
Operations Management UTCC Page 11
Job Shop and Batch Processes
Operations Management UTCC Page 12
• Repetitive/assembly line
– High volumes and standardized goods or services
– Slight flexibility of equipment
– Skill of workers is generally low
– Example: automobiles, televisions, computers, automatic carwash
• Continuous
– Very high volumes of non-discrete goods, highly standardized output
– No variety in output, no need for equipment flexibility
– Examples: petroleum products, steel, sugar, flour, supplying electricity to homes, and the Internet.
Process Types
Operations Management UTCC Page 13
Repetitive Processes
Operations Management UTCC
TAG IDENTIFY
RECEIVE PART
INCOMING INSPECTION
Manufacturing.
MANUFACTURING PROCESSES
NG
OK
FRAME ASSEMBLY
ENGINE ASSEMBLY
PRODUCTION PROCESS
NG
QA
COUNTERMEASURE
FINAL INSPECTION 100 %
Static & Dynamic
WELDING PAINTPRESS QA QA QA QA
SUPPLIERM
AR
KE
T
DeliveryOK
Part quality
assurance
QA
Production Planning and Control Watcharavee C.
Honda Automobile (Thailand) Co.,Ltd.
Welding Department ( WE )ฝ่ายเช่ือมประกอบตัวถังรถยนต์
การเช่ือมจดุโดย เคร่ือง Spot Welding เช่ือมจดุโดย เครื่อง GW (General Welding)
Production Planning and Control Watcharavee C.
Honda Automobile (Thailand) Co.,Ltd.
Painting Department (PA)ฝ่ายพ่นสีตัวถังรถยนต์
1.การเตรียมผิว
2.การชบุสีด้วยกระแสไฟฟ้า
3.การซีลรอยต่อ
4.การพ่นสีรองพืน้
Production Planning and Control Watcharavee C.
2004 Improvement ProjectDirect part Delivery Lay out Area.
9 #
S18 S17 S16 S15 S14 S13 S12 S11
OFFICE AF#
G
D-01L D-02L D-03L D-04L D-05L D-06L D-07L D-08L D-09L D-10L D-11L D-12L D-13L
D-01R D-02R D-03R D-04R D-05R D-06R D-07R D-08R D-09R D-10R D-11R D-12R D-13R
C
#
77788081 79 73747576 65707172 66676869 59626364 6061
50 51
565758
41 42 LIFT 4947 4834 35 39 4036
23242526 14151621 20 19 18 78AF-DL13
29 LIFT 30 31 33
4
5
52 53
9101112 6
876
6 7 8
37 38
1722
9 10
43 44 45 4632
54
27
28
78
R
55
C1-INSPINSPEC
CO-INSPINSPEC 3,4
CO-INSPINSPEC1,2
INSPEC&REPAIR
INSPECTOR
HANGER
HANGER
3
2
S46
S45
S41~S44
S32
S31S21
S22
S23
S24
S25PIPE ASSY FULE
( ASICO )
BEAM COMP STRG
( BT )
SEAL FR DR LWR SILL
( NTR )
TANK COMP FULE
( TMC )
SPRG FLEX JOINT
( KHM )
STAY FR R SUBFRAM MT
( APICO )
SPACER R TRUNK FLOOR
( EPE )
SEAT ASSY R FR
( TST )
HVAC ASSY
( KNTR )
LNG ASSY ROOF
( SAS )
RUNCHANNEL R FR
( NTR )
DOOR MIR
( HLT )
PAN COMP OIL
( TEP )
BRG CONNROD
( DMC )
PRG OIL PAN
( TKR )COMPRESSOR ASSY
( KNTR )
PIPE ASSY CONNECTING
( BT )
( AE PRODUCTION )
Assembly Frame Processing
ขัน้ตอนท่ี 1-81 ถ้ามีการผลิตไหลต่อเน่ืองทกุๆ 2 นาที จะมีรถออกมา 1 คนั 1 ชม. ผลิตรถได้ 30 คนั
Production Planning and Control Watcharavee C.
Honda Automobile (Thailand) Co.,Ltd.
Assembly Frame Department (AF)ฝ่ายประกอบช้ินส่วน
1.ประกอบช้ินส่วนภายในและภายนอกห้องโดยสาร
2.แผนกประกอบช้ินส่วนหลกั 3.แผนกแยกช้ินส่วนใหญ่ของรถออกมาประกอบ
Production Planning and Control Watcharavee C.
Honda Automobile (Thailand) Co.,Ltd.
Machining Department (MC)ผลติช้ินส่วนเคร่ืองยนต์
2.แผนกผลิตเส้ือสบูและฝาสบูรถยนต์
1.แผนกหล่อเส้ือสบู
3.แผนกผลิตกระบอกสอบเคร่ืองยนต์
Production Planning and Control Watcharavee C.
Honda Automobile (Thailand) Co.,Ltd.
Assembly Engine Department (AE)ฝ่ายประกอบเคร่ืองยนต์
Nut Runner (เคร่ืองขนัฝาสบูอตัโนมติั)- ประกอบฝาสบู- ประกอบเพลาข้อเหว่ียง
Production Planning and Control Watcharavee C.
Honda Automobile (Thailand) Co.,Ltd.
Vehicle Quality Department (VQ)ฝ่ายตรวจสอบคุณภาพรถยนต์ส าเร็จรูป
1.ตรวจสอบภายใน 2. ภายนอก3.ตรวจก่อนสตาร์ทเคร่ืองยนต์4.ตรวจจุดศูนย์กลางพวงมาลัย5.การปรับตัง้มุมล้อ6.การปรับตัง้ระดับแนวล าแสงไฟหน้า7.การตรวจองศาวงเลีย้ว8.ทดสอบค่าแรงเบรคและความเร็ว9.ทดสอบการเบี่ยงเบนของล้อ10.ตรวจสอบช่วงล่าง,การร่ัวของน า้มัน11.ตรวจห้องภายในห้องเคร่ืองเยน็12.ทดสอบการขับข่ีในสภาพถนนจ าลอง13.ตรวจสอบคุณภาพก่อนการส่งมอบ
Operations Management UTCC
REPAIR LINE A
0.0
Side Slip Test Brake Test Speed Test Turning Radius Test
00000 000 35~40
Km / h L RIN OUT
Wheel Alignment
0.0 0.00.00.0
DELIVERY
AXO Y.OY.P
Road Test
- Steering feeling check
- Squeak & Rattle
Sampling Test
- Steady Test - Horn Test
- Accelaration runing - Exhaust noise
INSPECTION LINE
ABS TEST WATER POOL
SHOWER TEST
SLALOM
45678911
10
15
12
13
3 2
3
Hand Brake Test
PDI LINE
Vehicle quality (VQ). Line layout
Long Test course 100%
inspect
Operations Management UTCC
Spinning - การปัน่ด้าย – เครื่องผสมฝ้าย
เป็นการเปิดเส้นใยใหค้ลายตวัออก พร้อมทั้งเป็นการผสมส่วนผสมต่างๆ ซ่ึงเป็นสูตรในการผลิตดา้ยท่ีแต่ละโรงงานจะมีสูตรเฉพาะเป็นของตนเอง
Operations Management UTCC
Spinning - การปัน่ด้าย – เครื่องสางใย
Operations Management UTCC
Spinning - การปัน่ด้าย – Comber
Operations Management UTCC
Spinning - การปัน่ด้าย – เครื่องรีดปยุ
Operations Management UTCC
Spinning - การปัน่ด้าย – เครื่องรีดปยุ
การท าโรฟวิงเป็นการลดขนาดสไลเวอร์ท่ีไดจ้ากขั้นตอนก่อนหนา้น้ีลงเสน้ใย
ขนานกนัมากข้ึน การท าโรฟวิงกเ็หมือนกบัการรีดปุยหลายๆ คร้ังต่อเน่ืองกนันัน่เอง ซ่ึงอาจเรียกขั้นตอนน้ีวา่ “ป่ันสอง”
Back
Operations Management UTCC
Spinning - การปัน่ด้าย
Back
Operations Management UTCC Page 29
Continuous Processes
Operations Management UTCC
แผนภูมิแสดงกระบวนการผลิตน ้าตาลทราย
Operations Management UTCC Page 31
Process Types
Job Shop Batch Repetitive/
Assembly
Continuous
Description Customized
goods or services
Semi-
standardized
goods or
services
Standardized
goods or
services
Highly
standardized
goods or
services
Advantages Able to handle a
wide variety of
work
Flexibility Low unit cost,
high volume,
efficient
Very efficient,
very high
volume
Disadvantages Slow, high cost
per unit, complex
planning and
scheduling
Moderate cost
per unit,
moderate
scheduling
complexity
Low flexibility,
high cost of
downtime
Very rigid, lack
of variety, costly
to change, very
high cost of
downtime
Operations Management UTCC Page 32
Process Type
Job Shop Appliance
repair
Emergency
room
Not
feasible
Batch Commercial
bakery
Classroom
Lecture
Repetitive Automotive
assembly
Automatic
carwash
Continuous
(flow)
Not
feasible
Oil refinery
Water purification
Product – Process Matrix
Operations Management UTCC Page 33
Dimension Job Shop Batch Repetitive Continuous
Job variety Very High Moderate Low Very low
Process
flexibility
Very High Moderate Low Very low
Unit cost Very High Moderate Low Very low
Volume of
output
Low Low-
moderate
High Very High
Product – Process Matrix
Operations Management UTCC Page 34
Automation
• Fixed Automation (Low cost and High Volume)
• Programmable Automation (high cost, wide variety
and low volume product (N/C))
• CAD/CAM (CNC, robot)
• Flexible Manufacturing System (FMS)
• Computer Integrated Manufacturing (CIM)
Operations Management UTCC Page 35
FMS
Operations Management UTCC Page 36
FMS
Operations Management UTCC Page 37
Operations Management UTCC Page 38
Information Processingactivities
ManufacturingPlanning
ManufacturingControl
Product Design
Business Functions
Raw Materials
Finished Products
Physical Activities
Model of CIM
Operations Management UTCC Page 39
• Layout: the configuration of departments,
work centers, and equipments, with particular
emphasis on movement of work (customers
or materials) through the system
Facilities Layout
Operations Management UTCC Page 40
• Requires substantial investments of money
and effort
• Involves long-term commitments
• Significant impact on cost and efficiency of
operations
Importance of Layout Decisions
Operations Management UTCC Page 41
Most common reasons for design of
layouts:
• Inefficient operations (high cost, bottleneck)
• Accident or safety hazards
• Change in the design of product
• Change in the volume output
• Change in method or equipments
• Change in environmental or legal requirements
Operations Management UTCC Page 42
Operations Management UTCC Page 43
Operations Management UTCC Page 44
Operations Management UTCC Page 45
การออกแบบศนูยก์ระจายสินค้าของจงัหวดัพิษณุโลก
• คลงัสินค้าเกษตรอาทิเช่น ข้าว ข้าวโพด อ้อย มันส าปะหลงั น า้ตาล เป็นต้น
• คลงัสินค้าอุตสาหกรรม อาทิเช่น ช้ินส่วนยานยนต์ เคร่ืองไฟฟ้า เคร่ืองทางการเกษตร เป็นต้น
• คลงัสินค้าพืน้เมือง อาทิเช่น สินค้า SMEs/OTOP เป็นต้น
Operations Management UTCC Page 46
การออกแบบศนูยก์ระจายสนิคา้ของจงัหวดัพษิณุโกก
Operations Management UTCC Page 47
หน้าทีส่ าคญัของศนูยก์ระจายสนิคา้
• การเคล่ือนย้าย
• การเกบ็รกัษา
• การถ่ายโอนข้อมลู
Operations Management UTCC Page 48
ขัน้ตอนของการออกผงัการใช้งานคลงัสินค้า
• รายละเอียดของกิจกรรมต่างขึน้อยู่กบัความต้องการใช้ในกิจกรรมนัน้ๆ รายละเอียดต่างๆสามารถสรปุได้ดงัต่อไปน้ี
• การรบัสินค้า• การตรวจสอบสินค้า• การจดัเกบ็สินค้าขึน้ชัน้ • การจดัวางกองสินค้า• การเบิกสินค้า • การจดัเตรียมจดัส่ง • การบริการโดยพนักงาน • กระบวนการข้อมลู เอกสารต่าง ๆ
Operations Management UTCC Page 49
ความสมัพนัธข์องกจิกรรม (Activity Relationship)
Operations Management UTCC Page 50
แผนภาพแสดงความสมัพนัธ์(Relationship Diagram)
Operations Management UTCC Page 51
• Product layouts
• Process layouts
• Fixed-Position layout
• Combination layouts
Basic Layout Types
Operations Management UTCC Page 52
• Product layout – Layout that uses standardized processing operations to
achieve smooth, rapid, high-volume flow (repetitive and continuous production)
• Process layout– Layout that can handle varied processing requirements
• Fixed Position layout– Layout in which the product or project remains
stationary, and workers, materials, and equipment are moved as needed
Basic Layout Types
Operations Management UTCC Page 53
Raw
materials
or customer
Finished
itemStation
2
Station
3
Station
4
Material
and/or
labor
Station
1
Material
and/or
labor
Material
and/or
labor
Material
and/or
labor
Used for Repetitive or Continuous Processing
Product Layout
Operations Management UTCC Page 54
Product Layout
Operations Management UTCC Page 55
• High rate of output
• Low unit cost due to high volume and high cost of
special equipments
• Labor specialization reduces training costs and time
• Low material handling cost per unit
• High utilization of labor and equipment
• Established routing and scheduling
• Accounting, purchasing and inventory control are
fairly routine
Advantages of Product Layout
Operations Management UTCC Page 56
• Creates dull, repetitive jobs
• Poorly skilled workers may not maintain
equipment or quality of output
• Fairly inflexible to changes in volume
• Highly susceptible to shutdowns
• Needs preventive maintenance
Disadvantages of Product Layout
Operations Management UTCC Page 57
1 2 3 4
5
6
78910
In
Out
Workers
U-Shaped Production Line
Operations Management UTCC Page 58
• is more compact; half the length of straight
production line
• increased communication among workers on the
line because workers are clustered, thus facilitating
teamwork
• Minimizes material handling
U-Shaped Production Line
Operations Management UTCC Page 59
Work
Station 1
Work
Station 2
Work
Station 3
Product Layout
(sequential)
Used for Repetitive Processing
Repetitive or Continuous
Product Layout
Operations Management UTCC Page 60
Process Layout - work travels
to dedicated process centers
Milling
Assembly
& TestGrinding
Drilling Plating
Process Layout
Operations Management UTCC Page 61
Dept. A
Dept. B Dept. D
Dept. C
Dept. F
Dept. E
Used for Intermittent processing
Job Shop or Batch
Process Layout
(functional)
Process Layout
Operations Management UTCC Page 62
Process Layout
Operations Management UTCC Page 63
Gear
cutting
Mill Drill
Lathes
Grind
Heat
treat
Assembly
111
333
222
444
222
111
444
111 3331111 2222
222
3333
111
444
111
Functional Layout
Operations Management UTCC Page 64
Process Layout
Operations Management UTCC Page 65
• In-process inventory costs can be high
• Challenging routing and scheduling
• Equipment utilization rates are low
• Material handling slow and inefficient
• Complexities often reduce span of supervision
• Special attention for each product or customer
• Accounting and purchasing are more involved
Disadvantages of Process Layouts
Operations Management UTCC Page 66
• Cellular Production
– Layout in which machines are grouped into a cell
that can process items that have similar
processing requirements
• Group Technology
– The grouping into part families of items with
similar design or manufacturing characteristics
Cellular Layouts
Operations Management UTCC Page 67
Figure reprinted with permission, J.R. Tony Arnold, Introduction to Materials Management, 2d ed. Prentice-Hall, 1996
Work Cells
•Group the equipment based on product families with similar
– Shape
– Tools
– Setups
– Handling
•Use a “U” shape if possible, which permits
– Reuse of containers
– Transfer of information
– Sharing of work
Operations Management UTCC Page 68
-1111 -1111
222222222 - 2222
Asse
mb
ly
3333333333 - 3333
44444444444444 - 4444
Lathe
Lathe
Mill
Mill
Mill
Mill
Drill
Drill
Drill
Heat
treat
Heat
treat
Heat
treat
Gear
cut
Gear
cut
Grind
Grind
Cellular Manufacturing Layout
Operations Management UTCC Page 69
Work Cells (Cellular manufacturing)
•The use of work cells can result in
– Reduced queue
– Simplified production activity control
– Reduced floor space
– Reduced material movement
– Immediate feedback
•These advantages can lead to
– Greater production flexibility
– Smaller lot sizes
– Improved quality
Operations Management UTCC Page 70
A group of parts with similar manufacturing process requirements but different design attributes
Operations Management UTCC Page 71
Dimension Process Cellular
Number of moves between
departments
many few
Travel distances longer shorter
Travel paths variable fixed
Job waiting times greater shorter
Throughput time higher lower
Amount of work in process higher lower
Supervision difficulty higher lower
Scheduling complexity higher lower
Equipment utilization lower higher
Table 6.3
Process vs. Cellular Layouts
Operations Management UTCC Page 72
• Warehouse and storage layouts
• Retail layouts
• Office layouts
Other Service Layouts
Design Product Layouts: Line Balancing
Operations Management UTCC Page 74
Line Balancing is the process of assigning
tasks to workstations in such a way that
the workstations have approximately
equal time requirements.
Design Product Layouts: Line Balancing
• This minimizes the idle time along the line and results in a high utilization of labor and equipment
• Unbalanced lines are undesirable in terms of inefficient utilization of labor and equipment and because they may create morale problems at the slower stations of workers who must work continuously
Operations Management UTCC Page 75
Line balancing
Scrubbing
2 minutes
Rinsing 4 minutes
Drying 2 minutes
30 15 30
Operations Management UTCC Page 76
Cycle time is the maximum time
allowed at each workstation to
complete its set of tasks on a unit.
Cycle Time
Operations Management UTCC Page 77
Line balancing
0.1 min 0.7 min 1.0 min 0.5 min 0.2 min
Minimum cycle time (longest task time) is 1.0 minute.
Maximum cycle time (all tasks) 2.5 minutes.
Operations Management UTCC Page 81
Precedence diagram: Tool used in line balancing to
display elemental tasks and sequence requirements
A Simple Precedence
Diagrama b
c d e
0.1 min.
0.7 min.
1.0 min.
0.5 min. 0.2 min.
Figure 6.10
Precedence Diagram
Operations Management UTCC
Example 3
• A part of a major plant renovation project, the
industrial engineering department has been asked
to balance a revised assembly operation to achieve
an output of 600 units per eight hour day. Task
time and precedence relationships are as follow:
Page 91
Operations Management UTCC Page 92
Task Duration (min) Precede Taska 0.2 Bb 0.4 Cc 0.2 Fd 0.4 Ee 1.0 Gf 1.2 Gg 1.0 End
4.1 Draw a precedence diagram4.2 Determine the minimum cycle time, the maximum cycle time, and the calculated cycle time.4.3 Determine the minimum number of station needed. 4.4 Compute the percentage of efficiency.
Operations Management UTCC Page 93
1 min.2 min.1 min.1 min.30/hr. 30/hr. 30/hr. 30/hr.
1 min.
1 min.
1 min.1 min.60/hr.
30/hr. 30/hr.
60/hr.
1 min.
30/hr.
30/hr.
Bottleneck
Parallel Workstations
Parallel Workstations
Operations Management UTCC Page 94
Information Requirements:
1. List of departments
2. Projection of work flows
3. Distance between locations
4. Amount of money to be invested
5. List of special considerations
6. Location of key utilities
Designing Process Layouts
Operations Management UTCC Page 95
Fixed Position Layout
Operations Management UTCC Page 96
Discussion
1. Explain the importance of process selection in system design
2. Briefly describe the five process types, and indicate the kinds of situations in which each would be used
3. Why is management of technology important ;
4. Why might the choice of equipment that provides flexibility sometimes be viewed as a management copout?
5. What are the trade-offs that occur when a process labour is used? What are the trade-offs that occur when a product layout is used?
6. List come common reasons for redesigning layouts.
7. Briefly describe the two main layout types.
8. What are the main advantages of a product layout? The main disadvantages?
Operations Management UTCC Page 97
Discussion
9. What are the main advantages of a process layout? The main disadvantages?
10. What is the goal of line balancing? What happens if a line is unbalanced?
11. Compare equipment maintenance strategies in product and process layouts?
12. Briefly outline the impact that job sequence has on each of the layout types.
13. Identify fixed path and variable path material handling equipment commonly found in supermarkets.
14. What is cellular manufacturing? What are its main benefits and limitations?
15. What is group technology?