MF F219
Operations Management
BITS Pilani Girish Kant Garg
Department of Mechanical Engineering
Pilani Campus
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Learning Objectives
Planning Facilities and Capacity
– Different strategies for capacity expansion
– Basic Layouts
– Designing Process Layouts
– Designing Product Layouts
– Hybrid Layouts
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MF F219, Operations Management, Lecture-4, 16/1/24 BITS Pilani, Pilani Campus
Capacity Planning
Capacity
– maximum capability to produce
Capacity planning
– establishes overall level of productive resources for a firm
Capacity expansion strategy in relation to steady
growth in demand
– lead
– lag
– average
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MF F219, Operations Management, Lecture-4, 16/1/24 BITS Pilani, Pilani Campus
Capacity Planning Strategies
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MF F219, Operations Management, Lecture-4, 16/1/24 BITS Pilani, Pilani Campus
Capacity Expansion
Capacity increase depends on
– volume and certainty of
anticipated demand
– strategic objectives
– costs of expansion and operation
Best operating level
– % of capacity utilization that
minimizes unit costs
– Can also refer to the most
economic size of the facility
Capacity cushion
– % of capacity held in reserve for Economic of scale occurs when it
unexpected occurrences cost less per unit to produce at
higher levels of output 5
MF F219, Operations Management, Lecture-4, 16/1/24 BITS Pilani, Pilani Campus
Objectives of Facility Layout
Minimize material-handling costs
Utilize space efficiently
Utilize labor efficiently
Eliminate bottlenecks
Facilitate communication and interaction
Reduce manufacturing cycle time
Reduce customer service time
Eliminate wasted or redundant movement
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MF F219, Operations Management, Lecture-4, 16/1/24 BITS Pilani, Pilani Campus
Objectives of Facility Layout
Facilitate entry, exit, and placement of material,
products, and people
Incorporate safety and security measures
Promote product and service quality
Encourage proper maintenance activities
Provide a visual control of activities
Provide flexibility to adapt to changing conditions
Increase capacity
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MF F219, Operations Management, Lecture-4, 16/1/24 BITS Pilani, Pilani Campus
Basic Layouts
Process layout
– group similar activities together according to process or
function they perform
Product layout
– arrange activities in line according to sequence of operations
for a particular product or service
Fixed-position layout
– are used for projects in which product cannot be moved
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MF F219, Operations Management, Lecture-4, 16/1/24 BITS Pilani, Pilani Campus
Process Layout
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MF F219, Operations Management, Lecture-4, 16/1/24 BITS Pilani, Pilani Campus
Product Layout
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MF F219, Operations Management, Lecture-4, 16/1/24 BITS Pilani, Pilani Campus
Comparison of Product and
Process Layout
Product Process
Description Sequential Functional
arrangement of grouping of
activities activities
Mass production, job shop, batch
Type of process
mainly assembly production, mainly
fabrication
Product Standardized, Varied, made to
made to stock order
Demand Stable Fluctuating
Volume High Low
Equipment Special purpose General purpose
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MF F219, Operations Management, Lecture-4, 16/1/24 BITS Pilani, Pilani Campus
Comparison of Product and
Process Layout
Product Process
Workers Limited skills Varied skills
Inventory Low in-process, high High in-process, low
finished goods finished goods
Storage space Small Large
Material handling Fixed path (conveyor) Variable path (forklift)
Aisles Narrow Wide
Scheduling Part of balancing Dynamic
Layout decision Line balancing Machine location
Goal Equalize work at each Minimize material
station handling cost
Advantage Efficiency Flexibility
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MF F219, Operations Management, Lecture-4, 16/1/24 BITS Pilani, Pilani Campus
Fixed-Position Layout
• Typical of projects
• Bulky, heavy items
• Equipment, workers & materials brought to site
• Highly skilled labor
• Typically low fixed cost
• Often high variable costs
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MF F219, Operations Management, Lecture-4, 16/1/24 BITS Pilani, Pilani Campus
Designing Process Layout
Goal: minimize material handling costs
Block Diagramming
– use when quantitative data is available
– minimize nonadjacent loads
Relationship Diagramming
– use when quantitative data is not available
– based on location preference between areas
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MF F219, Operations Management, Lecture-4, 16/1/24 BITS Pilani, Pilani Campus
Block Diagramming
Unit load Steps
• quantity in which • Create From/To chart or load
material is normally summary chart
moved • Calculate composite (two way)
movements
Nonadjacent load • Develop trial layouts minimizing
• distance farther number of nonadjacent loads
than the next block
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MF F219, Operations Management, Lecture-4, 16/1/24 BITS Pilani, Pilani Campus
Relationship Diagramming
• Schematic diagram that uses
weighted lines to denote
location preference
• Muther’s grid
format for displaying manager
preferences for department
locations
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MF F219, Operations Management, Lecture-4, 16/1/24 BITS Pilani, Pilani Campus
Relationship Diagramming
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MF F219, Operations Management, Lecture-4, 16/1/24 BITS Pilani, Pilani Campus
Relationship Diagramming
(a) Relationship diagram of original layout
Offices Locker Shipping
room and
receiving
Key: A
E
I
Stockroom Toolroom Production
O
U
X
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MF F219, Operations Management, Lecture-4, 16/1/24 BITS Pilani, Pilani Campus
Relationship Diagramming
(b) Relationship diagram of revised layout
Stockroom
Offices Shipping
and
receiving
Locker Key: A
Toolroom Production
room E
I
O
U
X
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MF F219, Operations Management, Lecture-4, 16/1/24 BITS Pilani, Pilani Campus
Designing Product Layout
A product layout arranges machines or workers in a line
according to the sequence of operations that need to be
performed to assemble a particular product.
Precedence requirements, specifying which operations
must precede others, and which must wait until later, are an
important input to the product layout decision.
To attain the required output rate as efficiently as possible,
jobs are broken down into their smallest indivisible portions,
called work elements.
Part of the layout decision is concerned with grouping these
work elements into workstations so products flow through
the assembly line smoothly.
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MF F219, Operations Management, Lecture-5, 18/1/24 BITS Pilani, Pilani Campus
Designing Product Layout
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MF F219, Operations Management, Lecture-5, 18/1/24 BITS Pilani, Pilani Campus
Line Balancing
The process of equalizing Desired Cycle time
the amount of work at each
workstation is called line Cd = production time available
desired units of output
balancing.
Assembly-line balancing (8 hours x 60 minutes / hour)
Cd =
operates under two (120 units)
constraints:
480
• Precedence requirements Cd = = 4 minutes
120
• Cycle time restrictions
– Maximum amount of time the
product is allowed to spend at
each work station
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MF F219, Operations Management, Lecture-5, 18/1/24 BITS Pilani, Pilani Campus
Line Balancing
Efficiency Min# of workstations
j j
i=1
ti
i=1
ti
E= nCa N= Cd
where
The actual cycle time, Ca, is the
maximum workstation time on the ti = completion time for element i
line. j = number of work elements
It differs from the desired cycle N = Theoretical number of workstations
time, because the time required n = actual number of workstations
Ca = actual cycle time
for one work element is too large,
Cd = desired cycle time
that production quota cannot be
achieved 23
MF F219, Operations Management, Lecture-5, 18/1/24 BITS Pilani, Pilani Campus
Line balancing procedure
The various steps of line balancing are—
1. Draw and label a precedence diagram.
2. Calculate the desired cycle time required for the line.
3. Calculate the theoretical minimum number of
workstations.
4. Group elements into workstations, recognizing cycle
time and precedence constraints.
5. Calculate the efficiency of the line.
6. Determine if the theoretical minimum number of
workstations or an acceptable efficiency level has been
reached. If not, go back to step 4.
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MF F219, Operations Management, Lecture-5, 18/1/24 BITS Pilani, Pilani Campus
Line Balancing Algorithms
Largest Operation Time
Assignment of work elements to stations based on largest amount
of time each work element requires
Kilbridge and Wester Method
Assignment of work elements to stations based on position in the
precedence diagram
Elements at front of diagram are assigned first
Ranked Positional Weights
Combines the two preceding approaches by calculating an RPW
for each element
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BITS Pilani, Pilani Campus
Cellular Layouts
To combine the flexibility of a process layout with the
efficiency of a product layout.
Uses the concept of group technology (GT), in which similar
parts are identified and grouped together to take advantage
of their similarities in production.
Dissimilar machines or activities are grouped into cells, to
process families of parts with similar requirements.
The cells are arranged in relation to each other so that
material movement is minimized.
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MF F219, Operations Management, Lecture-7, 23/1/24 BITS Pilani, Pilani Campus
Process Layout
Assembly
4 6 7 9
5 8
2 10 12
1 3 11
A B C Raw materials
MF F219, Operations Management, Lecture-7, 23/1/24 BITS Pilani, Pilani Campus
Route Matrix
Machines
Parts 1 2 3 4 5 6 7 8 9 10 11 12
A x x x x x
B x x x x
C x x x
D x x x x x
E x x x
F x x x
G x x x x
H x x x
MF F219, Operations Management, Lecture-7, 23/1/24 BITS Pilani, Pilani Campus
Reordered route Matrix
Machines
Parts 1 2 4 8 10 3 6 9 5 7 11 12
A x x x x x
D x x x x x
F x x x
C x x x
G x x x x
B x x x x
H x x x
E x x x
MF F219, Operations Management, Lecture-7, 23/1/24 BITS Pilani, Pilani Campus
Revised Cellular Layout
Assembly
8 10 9 12
11
4 Cell 1 Cell 2 6 Cell 3
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2 1 3 5
A C B
Raw materials
MF F219, Operations Management, Lecture-7, 23/1/24 BITS Pilani, Pilani Campus
Cellular Layout
Advantages Disadvantages
• Reduced material • Inadequate part
handling and transit time families
• Reduced setup time • Poorly balanced cells
• Reduced work-in- • Expanded training and
process inventory scheduling of workers
• Better use of human • Increased capital
resources investment
• Easier to automate
MF F219, Operations Management, Lecture-7, 23/1/24 BITS Pilani, Pilani Campus
Problems in Implementing GT
1. Identifying the part families
– Reviewing all of the parts made in the plant and grouping them into part
families is a substantial task
2. Rearranging production machines into GT cells
– It is time-consuming and costly to physically rearrange the machines into cells,
and the machines are not producing during the changeover
MF F219, Operations Management, Lecture-7, 23/1/24 BITS Pilani, Pilani Campus
Part Family
• A collection of parts that possess similarities in geometric
shape and size, or in the processing steps used in their
manufacture
• Part families are a central feature of group technology
– There are always differences among parts in a family
– But the similarities are close enough that the parts can be grouped into the same
family
(a) 1,000,000 units/yr, tolerance = 0.010 inch,
1015 steel,; (b) 100/yr, tolerance = 0.001
inch, 18-8 stainless steel 33
MF F219, Operations Management, Lecture-7, 23/1/24 BITS Pilani, Pilani Campus
Ways to Identify Part Families
1. Intuitive grouping (aka visual inspection)
– Using best judgment to group parts into appropriate families, based on the
parts or photos of the parts
2. Production flow analysis
– Using information contained on route sheets to classify parts
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MF F219, Operations Management, Lecture-7, 23/1/24 BITS Pilani, Pilani Campus
Steps in Production Flow
Analysis
Data collection – operation sequence and machine
routing for each part
PFA chart
Rank order Clustering technique – purpose is to identify
part families and associated machine groupings.
– Each machine group = a machine cell
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MF F219, Operations Management, Lecture-7, 23/1/24 BITS Pilani, Pilani Campus
Production Flow Analysis
Chart
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MF F219, Operations Management, Lecture-7, 23/1/24 BITS Pilani, Pilani Campus
Part and Machine Groupings
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MF F219, Operations Management, Lecture-7, 23/1/24 BITS Pilani, Pilani Campus
Thanks
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BITS Pilani, Pilani Campus