Process Selection and Key Questions

● Process choice is demand-driven, guided by two key questions:

1. How much variety will the process need to handle?
2. How much volume will the process need to handle?
● Generally, higher volume means lower variety and vice versa.
● Flexibility of personnel and equipment is related to variety: higher variety requires more
flexibility.

Process Types

There are five basic process types, each suited to different volume and variety needs:

1. Job Shop
○ For low volume, high variety (intermittent processing).
○ Requires high flexibility in equipment and skilled workers.
○ Examples:
■ Manufacturing: A tool and die shop producing one-of-a-kind tools.
■ Service: A veterinarian treating different animals and conditions.
2. Batch Processing
○ For moderate volume and moderate variety.
○ Equipment and worker skills don’t need to be as flexible as in a job shop.
○ Examples:
■ Manufacturing: Bakeries producing bread, cakes, or cookies in batches.
■ Service: Movie theaters showing films to groups of people.
3. Repetitive Processing
○ For high volume, standardized goods/services (assembly lines).
○ Requires low flexibility in equipment and worker skills.
○ Examples:
■ Manufacturing: Assembly lines for automobiles and computers.
■ Service: Cafeteria lines, automatic car washes.
4. Continuous Processing
○ For very high volume, non-discrete, highly standardized output.
○ Minimal variety; equipment is highly specialized, requiring low worker flexibility.
○ Examples:
■ Manufacturing: Petroleum, steel, sugar production.
■ Service: Supplying electricity or monitoring air quality.
5. Project
○ For no-routine, unique objectives within a limited time frame.
○ Equipment flexibility and skill level vary.
○ Examples:
■ Simple to complex projects: Building a bridge, publishing a book.
Process Selection Considerations

● The ideal process should match product/service requirements to avoid inefficiencies or

higher costs.
● Product life cycles may require shifting from one process type to another as demand
increases or decreases.
● Product and Service Profiling helps ensure that process choices align with market
demands and operational capabilities.

Sustainable Production

● Sustainable production processes aim to minimize waste, conserve energy, eliminate

hazardous substances, and ensure safe workspaces.

Lean Process Design

● Focuses on reducing waste and achieving smooth workflow.

● Benefits include reduced inventory, quicker response times, and increased productivity.

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Definition and Impact of Technology

● Technology refers to the application of scientific discoveries to develop or improve

goods, services, or production processes.
● Technological innovation involves the discovery of new or improved products,
services, or processes.
● High technology refers to the most advanced and developed equipment and methods.

Types of Technology

1. Process Technology:
○ This includes methods, procedures, and equipment used to produce goods and
provide services, impacting costs, productivity, and competitiveness.
○ Example: Automated production lines in manufacturing or laser technology used
in surgeries.
2. Information Technology (IT):
○ IT involves using computers and electronic devices to store, process, and
transmit information, deeply embedded in modern business operations.
○ Example: The use of barcodes and RFID (Radio Frequency Identification) tags
to track inventory and manage goods throughout the supply chain.
 ○ IT in practice: E-commerce, online banking, and point-of-sale systems.

RFID (Radio Frequency Identification)

● RFID Tags: Used to track items during production and inventory.

○ Example in manufacturing: RFID readers at packing stations ensure that the
correct items and quantities are prepared for shipping.
○ Example in hospitals: RFID tags on hospital garments can automate inventory
and disbursement processes.

Benefits of Technological Innovation

● Technological advancements can significantly enhance quality, reduce costs, increase

productivity, and expand capabilities.
○ Examples:
■ Laser technology in surgeries.
■ High-speed internet for communication.
■ Online banking systems.
■ High-definition television and search engines.

Risks and Considerations

● While technology offers benefits, it also carries risks. It is essential to understand both its
limitations and potential.
○ Economic considerations: Initial cost, space, cash flow, and maintenance.
○ Integration considerations: Time, cost, and resources needed for full
integration.
○ Human considerations: Training needs, safety concerns, and potential job
losses.

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Definition and Importance of Automation

● Automation refers to machinery with sensing and control devices that enable it to
operate automatically.
● Increasingly important in both manufacturing and services.
○ Examples: Automated teller machines (ATMs), automated heating/air
conditioning, online banking, e-mail.

Advantages of Automation

1. Low variability: Machines perform tasks consistently and repetitively without human
error.
 ○ Example: Automated inspection in production reduces quality issues caused by
variability.
2. Cost reduction: Automation can reduce variable costs by replacing human labor.
○ Example: Automated storage and retrieval systems cut operational costs in
warehouses.
3. Productivity and quality: Automation increases production speed and quality
consistency.
○ Example: E-Z Pass systems automate toll collection, improving efficiency.

Disadvantages of Automation

1. High initial costs: Technology is expensive and often requires high volumes to justify
costs.
2. Lack of flexibility: Automated systems are less adaptable to changes compared to
human labor.
3. Job loss concerns: Workers may fear job loss, leading to reduced morale and
productivity.

Types of Automation

1. Fixed Automation:
○ Used for high-volume, low-variety tasks with specialized equipment.
○ Example: Assembly lines in car manufacturing.
2. Programmable Automation:
○ Involves general-purpose equipment controlled by computer programs.
○ Example: Numerically controlled (N/C) machines used for customized, low-
volume production.
3. Flexible Automation:
○ More adaptable than programmable automation with minimal changeover time.
○ Example: Flexible manufacturing systems (FMS) that handle various similar
products with quick changeovers.

Specialized Automation Systems

1. Numerically Controlled (N/C) Machines:

○ Programmed for complex, small-batch production.
○ Example: Used in precision machining industries for close-tolerance parts.
2. Robots:
○ Used for tasks like welding, assembly, and testing.
○ Example: Robots in automotive factories assembling car components.
3. Computer-Integrated Manufacturing (CIM):
○ Links manufacturing activities with engineering, purchasing, and order
processing for streamlined production.
○ Example: Allen-Bradley's fully automated factory in Milwaukee.
Strategic Considerations

● Automation must align with strategic priorities such as cost reduction, flexibility, and
product quality.
● Planning is critical: Decision-makers must carefully assess the costs, benefits, and
potential risks of automating systems.

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Explanation of Strategic Resource Organization: Facilities Layout

1. Importance of Layout Decisions:

Facility layout refers to how departments, work centers, and equipment are arranged to optimize
the flow of materials, customers, or information through a system. Layout decisions are critical
because:

● They require substantial investment in resources (time, money, and effort).

● Layout changes are difficult to reverse due to long-term commitments.
● They directly affect operational costs and efficiency.

2. Reasons for Layout Planning: Layouts must be redesigned for various reasons:

● Inefficiency: If operations become costly or face bottlenecks, redesigning the layout can
help.
● Safety: Changes may be needed to address safety hazards or meet legal regulations.
● Product or Service Changes: New product designs or increased output require a new
layout.
● New Equipment: Modernizing equipment may also require a new layout design.
● Morale: If worker morale suffers due to poor communication or excessive travel, a new
layout might help.

Example: Minneapolis–St. Paul International Airport changed its layout to move security
checkpoints, reducing waiting times for connecting passengers.

3. Objectives of Layout Design: The primary objective is to facilitate a smooth workflow,

minimizing delays or movement issues. Secondary objectives include:

● Improving product or service quality.

● Efficient use of space and workers.
● Avoiding bottlenecks.
● Reducing material handling costs.
● Eliminating unnecessary movements of people or materials.
● Reducing production or service time.
● Ensuring safety in the design.
Types of Layouts:

4. Product Layout (Repetitive Processing):

● Used for high-volume, standardized products or services.

● The layout is arranged linearly, where each task is highly standardized and performed in
sequence (e.g., assembly lines).

● Advantages:
○ High output rates and low cost per unit.
○ Labor specialization, reducing training time and costs.
○ Simplified material handling, usually automated.
○ High utilization of labor and equipment.
○ Routine and predictable scheduling, accounting, and inventory control.
● Disadvantages:
○ Workers may face repetitive and dull jobs, leading to low morale or injury.
○ Inflexibility in handling changes in volume or product design.
○ Highly susceptible to breakdowns; any equipment failure or absenteeism can halt
the entire operation.
○ Preventive maintenance and spare part inventories are costly but necessary.

Example: A car assembly line is a classic product layout, where the same tasks are repeated in
sequence for each car.

5. U-Shaped Layouts:

● A U-shaped layout is an alternative to the straight-line layout and offers several

advantages:
○ It is more compact and requires less space.
○ It allows better communication among workers, as they are closer to each other.
○ Workers and equipment can be repositioned more easily.

6. Process Layout (Intermittent Processing):

● Used when the work is intermittent and varied, such as in job shops or custom
production settings.
● Equipment and tasks are arranged based on the process rather than the product.
● Typically used in environments where different products or services are made using
similar resources but in varying sequences.

7. Fixed-Position Layout (Project-Based Processing):

● Used for large projects where the product remains in one location, and workers,
materials, and equipment come to the site.
● Examples include shipbuilding, construction, or airplane manufacturing.
8. Hybrid Layouts:

● These combine elements of product and process layouts.

○ Cellular Layouts: These group machines based on similar processes or
components, allowing for some flexibility.
○ Flexible Manufacturing Systems (FMS): These allow for automated material
handling and quick changeovers, combining automation and flexibility.

Summary of Advantages and Disadvantages:

Advantages of Product Layout:

1. High output rates due to the efficient flow of materials.

2. Low cost per unit thanks to labor and equipment specialization.
3. High labor and equipment utilization.
4. Simplified material handling and scheduling.

Disadvantages of Product Layout:

1. Monotonous work that can affect morale and cause repetitive strain injuries.
2. Difficulty responding to changes in demand or product design.
3. Vulnerability to equipment breakdowns or absenteeism.
4. High costs for preventive maintenance and spare parts.

U-Shaped Layout Advantages:

● It is more compact, requiring less space.

● Enhances communication among workers.
● Facilitates easier repositioning of workers and equipment.