Process layout operations management

This was a presentation done team-wise in Manipal as part of our MBA assignments. The subject name was Operations Management and the presentation topics were different types of layouts. Our team got the topic Process Layout.

1. PROCESS LAYOUT Operations Management

2. PRODUCT-PROCESS MATRIX Jumbled flow (Job shop) Disconnected line flow (Batch) Connected line flow (Assembly Line) Continuous flow Low volume, Low standardization Low volume, Multiple products Higher volume, Few major products High volume, High standardization Oil refinery Automobile assembly Heavy equipment Parts of a machine Rarely any company Rarely any company PROCESS LAYOUT

3. PROCESS LAYOUT Process – Transforming input to output Layout – Configuration of departments, work centers and equipment.

4. FEATURES Wide variety Highly customizable Less automation More manual labor Low volume Make to Order Demand is low and can fluctuate a lot

5. FEATURES More of general equipment Fixed costs are low, variable costs are high Labor skills required are varied – expertise Estimation of cost & time of a custom order takes time. Less finished goods stock

6. WHAT DOES A PROCESS LAYOUT LOOK LIKE Process Layout - work travels to dedicated process centers Milling Assembly & Test Grinding Drilling Plating

7. PRODUCT LAYOUT

8. WHAT DOES A PROCESS LAYOUT LOOK LIKE Process Layout - work travels to dedicated process centers Milling Assembly & Test Grinding Drilling Plating

9. ADVANTAGES OF PROCESS LAYOUT Flexibility Variety Creativity More visual control of activities More communication and interaction between peers and supervisors High production volume elasticity Low obsolescence

10. ISSUES WITH PROCESS LAYOUT Managing ergonomics Performance evaluation of staff can be difficult Measuring efficiency is difficult Low capacity utilization Can’t enjoy economies of scale Can have high WIP Managing the supply chain can be a difficult task

11. DESIGNING A PROCESS LAYOUT STEP 1 From-To Chart

12. DESIGNING A PROCESS LAYOUT STEP 2 Relationship Chart/ Muther’s Grid A – Absolutely necessary E – Especially important I – Important O – Okay U – Unimportant X -Undesirable

13. CRAFT - Computerized - Relative - Allocation of - Facilities - Technique DESIGNING A PROCESS LAYOUT STEP 3