6

Process Selection
and Facility Layout
 Learning Objectives
 Explain the strategic importance of process
selection.
 Describe the basic processing types.
 Describe the basic layout types.
 List the main advantages and disadvantages of
product layouts and process layouts.

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 Introduction
 Process selection
 Deciding on the way production of goods or
services will be organized
 Major implications
 Capacity planning
 Layout of facilities
 Equipment
 Design of work systems

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 Process Selection and
System Design

Facilities and
Forecasting Capacity Equipment
Planning

Product and Layout

Process
Technological Selection Work
Change Design

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 Process Strategy
• Key aspects of process strategy
– Capital intensive – equipment/labor
– Process flexibility/Adjust to changes
– Design
– Volume
– Technology

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 Process Selection

 Variety
 How much
 Flexibility
 What degree
 Volume
 Expected output

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 Process Types
 Job shop
 Small scale
 Batch
 Moderate volume
 Repetitive/assembly line
 High volumes of standardized goods or
services
 Continuous
 Very high volumes of non-discrete goods

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 Process Types: Job Shop
 It is used when a low volume of high-variety
goods or services will be needed.
 Processing is intermittent; work includes small
jobs, each with somewhat different processing
requirements.
 High flexibility using general-purpose equipment
and skilled workers are important characteristics of
a job shop.
 A manufacturing example of a job shop personal
tailor.
 A service example is a Doctor’s office.
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 Process Types: Batch
 Used when a moderate volume of goods or
services is desired, and it can handle a moderate
variety in products or services.
 The equipment need not be as flexible as in a job
shop, but processing is still intermittent.
 Manufacturing examples: cakes.
 Service examples: airline flight.

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 Process Types: Repetitive
 Used when higher volumes of more standardized goods or
services are needed.
 The standardized output means only slight flexibility of
equipment is needed. Skill of workers is generally low.
 Examples of this type of system include production lines and
assembly lines.
 Familiar products made by these systems include
automobiles, television sets.
 An example of a service system is an automatic coffee
machines (Nescafe Coffee Kiosks).
 You are likely to see only minor variations in the product
or service being produced using the same process and
equipment
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 Process Types: Continuous
 Continuous. Used for a very high volume of non-discrete,
highly standardized output.
 These systems have almost no variety in output and, hence,
no need for equipment flexibility.
 Workers' skill requirements can range from low to high,
depending on the complexity of the system and the expertise
workers need. Generally, if equipment is highly specialized,
worker skills can be lower.
 Examples of non-discrete products made in continuous systems
include petroleum products and steel. Continuous services
include supplying electricity.
 Key difference between Repetitive and Continuous is that in
Repetitive systems you may experience minor variations in
product or service, whereas in Continuous system you will see
almost no variation.

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Product – Process Matrix

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 Facilities Layout
 Layout: the configuration of
departments, work centers, and
equipment, with particular emphasis on
movement of work (customers or
materials) through the system
 Product layouts
 Process layouts
 Fixed-Position layout
 Combination layouts

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 Objective of Layout Design
1. Facilitate attainment of product or service quality
2. Use workers and space efficiently
3. Avoid bottlenecks
4. Minimize unnecessary material handling costs
5. Eliminate unnecessary movement of workers or
materials
6. Minimize production time or customer service time
7. Design for safety

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 Importance of Layout
Decisions
 Requires substantial investments of money
and effort
 Involves long-term commitments
 Has significant impact on cost and efficiency
of short-term operations

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 Basic Layout Types
 Product layout
 Layout that uses standardized processing
operations to achieve smooth, rapid, high-
volume flow
 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

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 Product Layout

Raw
Station Station Station Station Finished
materials 1 2 3 4 item
or customer
Material Material Material Material
and/or and/or and/or and/or
labor labor labor labor

Used for Repetitive or Continuous Processing

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 A U-Shaped Product Line

In 1 2 3 4

Workers

Out 10 9 8 7

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Advantages of Product Layout
 High rate of output
 Relatively low unit cost
 Labor specialization
 Relatively low material handling cost
 High utilization of labor and equipment
 Established routing and scheduling,
routing, accounting, and purchasing

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 Disadvantages of Product Layout

 Creates dull, repetitive jobs

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 Process Layout
Process Layout
(functional)

Dept. A Dept. C Dept. E

Dept. B Dept. D Dept. F

Used for Intermittent processing

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 Advantages of Process Layouts
 Can handle a variety of processing
requirements
 Not particularly vulnerable to inter-
department equipment failures
 Equipment used is relatively less costly
 Possible to use individual incentive
plans

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 Relative Disadvantages of
Process Layouts
 In-process inventory costs can be high
 Relatively challenging routing and scheduling
 Equipment utilization rates are relatively low
 Material handling relatively slow and inefficient
 Complexities often reduce span of supervision
 Special attention for each product or customer
 Accounting and purchasing are relatively more
specified

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 Fixed Position Layouts
 Fixed Position Layout: Layout in which the product
or project remains stationary, and workers,
materials, and equipment are moved as needed.
 Nature of the product dictates this type of layout
 Weight
 Size
 Bulk
 Large construction projects

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 Service Layouts
 Warehouse and storage layouts
 Retail layouts
 Office layouts
 Service layouts must be aesthetically
pleasing as well as functional

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 Service Layouts
 Service layouts can often be categorized as
product, process, or fixed-position layouts.
 In a fixed-position service layout (e.g.,
appliance repair, roofing, home remodeling,
copier service), materials, labor, and
equipment are brought to the customer's
residence or office).

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 Service Layouts
 Process layouts are common in services due
mainly to the high degree of variety in
customer processing requirements. Examples
include hospitals, supermarkets and
department stores, vehicle repair centers, and
banks.
 Product layout can be used if the service is
organized sequentially, with all customers or
work following the same or similar sequence,
as it is in a local CNG station.

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 Service Layout Design
 Important factors in service layout design
include:
 Target customer and desired customer experience
 Customer attitude and image
 Frequency of orders
 High level of customer contact
 The mixture of the physical items, sensual benefits,
and psychological benefits.
Interesting point: service layout design is not
generally focused on cost minimization and
product flow. The degree of customer contact and
the degree of customization are two key factors

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