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PRODUCTION OPERATION
MANAGEMENT
Process Selection andFacility Layout
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Process Selection
Refers to deciding on the way
production of goods or services
will be organized. It has majorimplications for capacity
planning, layout of facilities,
equipment, and design of work
system.
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System Design
Inputs Outputs
Forecasting
Technological
change
Facilities
and
Equipment
Work
Design
Product
and
Service
design
Layout
Capacity
Planning
Process
Selection
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TECHNOLOGY
TechnologyRefers to applications of
scientific discoveries to the development and
improvement of goods and services and/or
the processes that produce or provide them.
Technology InnovationRefers to the
discovery and development of new or
improved products, services, or processes
for producing or providing them.
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Three Kinds of Technology
Product and Service technologyis the
discovery and development of new products
and services.
Process technology
includes methods,procedures, and equipment used to produce
goods and provide services.
Information technology (IT)
is the scienceand use of computers and other electronic
equipment to store, process, and send
information.
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Technology as a Competitive Advantage
Technology innovation in products andservices, and in processing technology can
produce tremendous benefits fororganizations.
Technology Acquisition
While process technology can have
enormous benefits, it also substantial riskunless a significant effort is made to fullyunderstand both the downside as well theupside of a particular technology.
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Process Selection
Process Types - There are five basic types of Process Types :
Job shopA job shop usually operates on a relatively
small scale. It is used when a low volume of high-
variety goods or services will be needed.
Batch
Batch processing is used when a moderatevolume of goods or services is desired, and it can
handle a moderate variety in products or services.
Repetitivewhen higher volumes of more standardized
goods or services are needed, repetitive processing isused.
Continuouswhen a very high volume of non discrete,
highly standardized output is desired, a continuous
system is used.
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Projectis used for work that is non routine,
with a unique set of objectives to be
accomplished in a limited time frame.
Product and Service Profiling
can be used toavoid any inconsistencies by identifying key
product or service dimensions and then
selecting appropriate process.
Automationis machinery that has sensing and
control devices that enable it to operate
automatically.
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Computer
aided manufacturing (CAM)
refersto the use of computers in process control,
ranging from robots to automated quality
control.
Numerically controlled (N/C)are programmed
to follow a set of processing instructions based
on mathematically relationship that tell the
machine the details of the operations to beperformed
RobotA machine consisting of a mechanical
arm, a power supply, and a controller.
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Facilities Layout
LayoutRefers to the configuration of departments,
work centers, and equipment, with particular emphasis
on movement of work (customer or materials) through
the system.
Layout decisions are important for three basis reasons:
a. they require substantial investments of money and
efforts.
b. they involved long-term commitments, which makes
mistakes difficult to overcome.
c. they have a significant impact on the cost and
efficiency of operations.
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Objective of Layout Design
To facilitate attainment of product orservice quality.
To use workers and space efficiently.
To avoid bottlenecks. To minimize material handling costs.
To eliminate unnecessary movements ofworkers or materials.
To minimize production time orcustomer service time.
To design for safety.
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Repetitive Processing: Product
Layout
Product Layoutlayout that uses standardized
processing operations to achieve smooth,
rapid, high-volume flow.
Production Line
standardized layout arrangedaccording to a fixed sequence of production
task.
Assembly Linestandardized layout arranged
according to a fixed sequence of assembly
tasks.
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Process Layout
Dept. A
Dept. B Dept. D
Dept. C
Dept. F
Dept. E
Used for Intermittent processing
Job Shop or Batch
Process Layout
(functional)
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Process Layout
Work
Station 1
Work
Station 2
Work
Station 3
Product Layout
(sequential)
Used for Repetitive Processing
Repetitive or Continuous
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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.
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Warehouse and storage layouts
Retail layouts
Office layouts
Other Service Layout
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Line Balancing
Line Balancing is the process of
assigning tasks to workstationsin such a way that the
workstations have approximately
equal time requirements.
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Cycle Time
Cycle timeis the maximum timeallowed at each workstation to
complete its set of tasks on a unit.
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Design of Work System
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Design of Work System
Job design involves specifying the content
and methods of job.
What will be done.
Who will do the job.
How the job will be done.
Where the job will be done.
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Design of Work System
Specialization
Behavioral Approaches to
Job Design
Motivation
Teams
Methods Analysis
Motions Study
Working conditions
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Specialization
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Specialization in Business:
Advantages
ForManagement:
1. Simplifies training
2. High productivity
3. Low wage costs
ForLabor:
1.Low education and
skill requirements
2.Minimum
responsibilities
3.Little mental effort
needed
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Disadvantages
For Management:
1. Difficult to motivate
quality
2. Worker dissatisfaction,
possibly resulting in
absenteeism, high
turnover, disruptive
tactics, poor attention
to quality
For Labor :
1. Monotonous work
2. Limited opportunitiesfor advancement
3. Little control over work
4. Little opportunity forself-fulfillment
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Job Enlargement
Giving a worker a larger portion ofthe total task by horizontal loading
Job Rotation
Workers periodically exchange jobs
Job Enrichment Increasing responsibility for planning
and coordination tasks, by verticalloading
Behavioral Approaches to Job
Design
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Motivation and Trust
Motivation
Influences quality and
productivity.Contributes to work environment.
Trust
Influences productivity and
employee-management relations.
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Teams
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Teams
Benefits of teams
Higher quality
Higher productivity
Greater worker satisfaction
Self-directed teams
Groups of empowered to makecertain changes in their work process
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Methods Analysis
Methods analysis
Analyzing how a job gets done
Begins with overall analysis
Moves to specific details
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Changes in tools and equipment
Changes in product design
or new products
Changes in materials or procedures
Other factors (e.g. accidents, quality
problems)
The need for methods analysis can come
from a number of different sources:
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Methods Analysis Procedure
1.Identify the operation to be studied
2.Get employee input
3.Study and document current method4.Analyze the job
5.Propose new methods
6.Install new methods7.Follow-up to ensure improvements
have been achieved
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Motion Study
Motion study - is the
systematic
study of the human
motions used
to perform an
operation.
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Motion Study Techniques
Motion study principles - guidelines for
designing motion-efficient work procedures
Analysis of therbligs - basic elemental
motions into which a job can be broken down
M icromotion study - use of motion pictures
and slow motion to study motions that otherwise
would be too rapid to analyzeCharts
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Working Conditions
Working conditions are an important
aspect of job design. Physical factorssuch as temperature, humidity,
ventilation, illumination, and noise can
have significant impact on worker
performance in terms of productivity,
quality of output, and accidents.
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Compensation
Compensation is asignificant issue for the
design work system.
T B i f
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Two Basic system for
Compensation
Timebased system
also known as hourly and measured day work
system,
Compensate employees for the time theemployee has worked during a pay period.
Outputbased (incentive) system
Compensation based on amount of output an
employee produced during a pay period.
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Thats All
hank You