Operations management heizer 6e ch09

Operations Management Chapter – Layout Strategy PowerPoint presentation to accompany Heizer/Render Principles of Operations Management, 6e Operations Management, 8e © 2006 Prentice Hall, Inc Hall, Inc © 2006 Prentice 9–1 Outline  Global Company Profile: McDonald’s  The Strategic Importance Of Layout Decisions  Types of Layout  Office Layout © 2006 Prentice Hall, Inc 9–2 Outline – Continued  Retail Layout  Servicescapes  Warehousing and Storage Layouts  Cross-Docking  Random Docking  Customizing  Fixed-Position Layout © 2006 Prentice Hall, Inc 9–3 Outline – Continued  Process-Oriented Layout  Computer Software for ProcessOriented Layouts  Work Cells  Requirements of Work Cells  Staffing and Balancing Work Cells  The Focused Work Center and the Focused Factory © 2006 Prentice Hall, Inc 9–4 Outline – Continued  Repetitive and Product-Oriented Layout  Assembly-Line Balancing © 2006 Prentice Hall, Inc 9–5 Learning Objectives When you complete this chapter, you should be able to: Identify or Define:  Fixed-position layout  Process-oriented layout  Work cells  Focused work center  Office layout © 2006 Prentice Hall, Inc 9–6 Learning Objectives When you complete this chapter, you should be able to: Identify or Define:  Retail layout  Warehouse layout  Product-oriented layout  Assembly-line © 2006 Prentice Hall, Inc 9–7 Learning Objectives When you complete this chapter, you should be able to: Describe or Explain:  How to achieve a good layout for the process facility  How to balance production flow in a repetitive or product-oriented facility © 2006 Prentice Hall, Inc 9–8 Innovations at McDonald’s  Indoor seating (1950s)  Drive-through window (1970s)  Adding breakfast to the menu (1980s)  Adding play areas (1990s) Three out of the four are layout decisions! © 2006 Prentice Hall, Inc 9–9 McDonald’s New Kitchen Layout  Fifth major innovation  Sandwiches assembled in order  Elimination of some steps, shortening of others  No food prepared ahead except patty  New bun toasting machine and new bun formulation  Repositioning condiment containers  Savings of $100,000,000 per year in food costs © 2006 Prentice Hall, Inc – 10 Staffing Work Cells Example 600 Mirrors per day required Mirror production scheduled for hours per day From a work balance chart total operation time = 140 seconds Standard time required 60 50 40 30 20 10 Assemble Paint Test Label Pack for shipment Operations © 2006 Prentice Hall, Inc – 61 Staffing Work Cells Example 600 Mirrors per day required Mirror production scheduled for hours per day From a work balance chart total operation time = 140 seconds Takt time = (8 hrs x 60 mins) / 600 units = mins = 48 seconds total operation time required Workers required = takt time = 140 / 48 = 2.91 © 2006 Prentice Hall, Inc – 62 Work Balance Charts  Used for evaluating operation times in work cells  Can help identify bottleneck operations  Flexible, cross-trained employees can help address labor bottlenecks  Machine bottlenecks may require other approaches © 2006 Prentice Hall, Inc – 63 Focused Work Center and Focused Factory  Focused Work Center  Identify a large family of similar products that have a large and stable demand  Moves production from a general-purpose, process-oriented facility to a large work cell  Focused Factory  A focused work cell in a separate facility  May be focused by product line, layout, quality, new product introduction, flexibility, or other requirements © 2006 Prentice Hall, Inc – 64 Focused Work Center and Focused Factory Work Cell Focused Work Center Focused Factory A work cell is a temporary productoriented arrangement of machines and personnel in what is ordinarily a processoriented facility A focused work center is a permanent productoriented arrangement of machines and personnel in what is ordinarily a processoriented facility A focused factory is a permanent facility to produce a product or component in a product-oriented facility Many focused factories currently being built were originally part of a process-oriented facility Example: A job shop Example: Pipe bracket with machinery and manufacturing at a personnel; rearranged shipyard to produce 300 unique control panels © 2006 Prentice Hall, Inc Example: A plant to produce window mechanism for automobiles Table 9.2 – 65 Repetitive and ProductOriented Layout Organized around products or families of similar high-volume, low-variety products  Volume is adequate for high equipment utilization  Product demand is stable enough to justify high investment in specialized equipment  Product is standardized or approaching a phase of life cycle that justifies investment  Supplies of raw materials and components are adequate and of uniform quality © 2006 Prentice Hall, Inc – 66 Product-Oriented Layouts  Fabrication line  Builds components on a series of machines  Machine-paced  Require mechanical or engineering changes to balance  Assembly line  Puts fabricated parts together at a series of workstations  Paced by work tasks  Balanced by moving tasks Both types of lines must be balanced so that the time to perform the work at each station is the same © 2006 Prentice Hall, Inc – 67 Product-Oriented Layouts Advantages Low variable cost per unit Low material handling costs Reduced work-in-process inventories Easier training and supervision Rapid throughput Disadvantages High volume is required Work stoppage at any point ties up the whole operation Lack of flexibility in product or production rates © 2006 Prentice Hall, Inc – 68 Assembly-Line Balancing  Objective is to minimize the imbalance between machines or personnel while meeting required output  Starts with the precedence relationships Determine cycle time Calculate theoretical minimum number of workstations Balance the line by assigning specific tasks to workstations © 2006 Prentice Hall, Inc – 69 Copier Example Performance Task Must Follow Time Task Listed Task (minutes) Below A 10 — B 11 A C B D B E 12 A F C, D G F H 11 E I G, H Total time 66 © 2006 Prentice Hall, Inc This means that tasks B and E cannot be done until task A has been completed – 70 Copier Example Performance Task Must Follow Time Task Listed Task (minutes) Below A 10 — B 11 A C B D B E 12 A F C, D G F 10 H 11 E A I G, H Total time 66 11 B 12 E C D F G 11 I H Figure 9.13 © 2006 Prentice Hall, Inc – 71 Copier Example 480 available Performance Task Must Follow mins per day Time Task Listed Task (minutes) Below 40 units required A 10 — B 11 A Production time C B available per day Cycle D B time = Units required per day E 12 A = 480 / 40 F C, D = 12 minutes per unit C G F 10 11 n H 11 E Time for taskFi A i∑ B G =1 Minimum I G, H number of = Cycle Dtime Total time 66 workstations I 12 11 = 66 / 12 E H = 5.5 or stations Figure 9.13 © 2006 Prentice Hall, Inc – 72 Copier Example Line-Balancing Heuristics Longest task time Choose the available 480 task available Performance Task Must Follow with the longest task time mins per day Time Task Listed Task2 Most (minutes) 40 task units required following tasksBelow Choose the available number of= 12 mins A 10 —with the largestCycle time B 11 Afollowing tasksMinimum = 5.5 or C Ranked5 positional BChoose the available workstations task for D Bwhich the sum of following weight4 E 12 Atask times is the longest F C, D the available C task G Shortest task time FChoose 10 shortest 11 with the task time H 11 E A B G F I Least number G, H of Choose the available task with the least number of Totalfollowing time 66 tasks D I 12 11 following tasks E H Table 9.4 Figure 9.13 © 2006 Prentice Hall, Inc – 73 Copier Example 480 available Performance Task Must Follow mins per day Time Task Listed Task (minutes) Below 40 units required A 10 — Cycle time = 12 mins B 11 A Minimum Station C 52 B workstations = 5.5 or C B D 11 E 10 12 A B F G F A C, D G F D E Station H 11 I I G, H 12 11 Station Stationtime 66 Total E H Station © 2006 Prentice Hall, Inc Station Figure 9.14 – 74 Copier Example 480 available Performance Task Must Follow mins per day Time Task Listed Task (minutes) Below 40 units required A 10 — Cycle time = 12 mins B 11 A Minimum C B workstations = 5.5 or D B E 12 A F C, D ∑ Task times G F Efficiency = (actual number ofE workstations) x (largest cycle time) H 11 I G, H = 66 minutes / (6 stations) x (12 minutes) Total time 66 = 91.7% © 2006 Prentice Hall, Inc – 75 ... Conditioner Shampoo Shampoo Shampoo Conditioner Conditioner  Computerized tool for shelfspace management  Generated from store’s scanner data on sales  Often supplied by manufacturer ft ©