Process And Layout Strategies

7 – 1

Departament d’Economia de l’Empresa / Department of Business Economics & Administration

Operations ManagementOperations Management

Session 3 – Session 3 – Process and Layout Process and Layout StrategiesStrategies

7 – 2Departament d’Economia de l’Empresa /

Department of Business Economics & Administration

OutlineOutline

Global Company Profile: Dell Global Company Profile: Dell Computer Corp.Computer Corp.

Four Process StrategiesFour Process Strategies

Process FocusProcess Focus

Repetitive FocusRepetitive Focus

Product FocusProduct Focus

Mass Customization FocusMass Customization Focus

Comparison of Process ChoicesComparison of Process Choices



Outline – ContinuedOutline – Continued

Process Analysis and DesignProcess Analysis and Design Flow DiagramsFlow Diagrams

Time-Function MappingTime-Function Mapping

Value-Stream MappingValue-Stream Mapping

Process ChartsProcess Charts

Service BlueprintingService Blueprinting




Service Process DesignService Process Design Customer Interaction and Process Customer Interaction and Process

DesignDesign

More Opportunities to Improve More Opportunities to Improve Service ProcessesService Processes

Selection of Equipment and Selection of Equipment and TechnologyTechnology




Production TechnologyProduction Technology Machine TechnologyMachine Technology

Automatic Identification Systems Automatic Identification Systems (AISs) and RFID(AISs) and RFID

Process ControlProcess Control

Vision SystemsVision Systems

RobotsRobots




Production Technology (cont.)Production Technology (cont.) Automated Storage and Retrieval Automated Storage and Retrieval

Systems (ASRSs)Systems (ASRSs)

Automated Guided Vehicles (AGVs)Automated Guided Vehicles (AGVs)

Flexible Manufacturing Systems Flexible Manufacturing Systems (FMSs)(FMSs)

Computer-Integrated Manufacturing Computer-Integrated Manufacturing (CIM)(CIM)




Technology in ServicesTechnology in Services

Process Redesign Process Redesign

Ethics and Environmentally Ethics and Environmentally Friendly ProcessesFriendly Processes



Learning ObjectivesLearning Objectives

When you complete this chapter you When you complete this chapter you should be able to:should be able to:

1.1. Describe four production processesDescribe four production processes

2.2. Compute crossover points for Compute crossover points for different processesdifferent processes

3.3. Use the tools of process analysisUse the tools of process analysis

4.4. Describe customer interaction in Describe customer interaction in process designprocess design

5.5. Identify recent advances in Identify recent advances in production technologyproduction technology



Dell Computer CompanyDell Computer CompanyMass customization provides a Mass customization provides a

competitive advantagecompetitive advantage

Sell custom-built PCs directly to consumerSell custom-built PCs directly to consumer

Lean production processes and good Lean production processes and good product design allow responsivenessproduct design allow responsiveness

Integrate the Web into every aspect of its Integrate the Web into every aspect of its businessbusiness

Focus research on software designed to Focus research on software designed to make installation and configuration of its make installation and configuration of its PCs fast and simplePCs fast and simple



Process, Volume, and VarietyProcess, Volume, and Variety

Process Focusprojects, job shops

(machine, print, carpentry)

Standard Register

Repetitive(autos, motorcycles)

Harley-Davidson

Product Focus(commercial

baked goods, steel, glass)Nucor Steel

High VarietyHigh Varietyone or few one or few units per run, units per run, high varietyhigh variety(allows (allows customization)customization)

Changes in Changes in ModulesModulesmodest runs, modest runs, standardized standardized modulesmodules

Changes in Changes in Attributes Attributes (such as grade, (such as grade, quality, size, quality, size, thickness, etc.) thickness, etc.) long runs onlylong runs only

Mass Customization(difficult to achieve, but huge rewards)

Dell Computer

Poor Strategy Poor Strategy (Both fixed and (Both fixed and variable costs variable costs

are high)are high)

Low Low VolumeVolume

Repetitive Repetitive ProcessProcess

High High VolumeVolume

VolumeVolumeFigure 7.1Figure 7.1



Process StrategiesProcess Strategies

How to produce a product or provide How to produce a product or provide a service thata service that Meets or exceeds customer Meets or exceeds customer

requirementsrequirements

Meets cost and managerial goalsMeets cost and managerial goals

Has long term effects onHas long term effects on Efficiency and production flexibilityEfficiency and production flexibility

Costs and qualityCosts and quality



Process StrategiesProcess Strategies

Four basic strategiesFour basic strategies

Process focusProcess focus

Repetitive focusRepetitive focus

Product focusProduct focus

Mass customizationMass customization

Within these basic strategies there are Within these basic strategies there are many ways they may be implementedmany ways they may be implemented




Facilities are organized around specific Facilities are organized around specific activities or processesactivities or processes

General purpose equipment and skilled General purpose equipment and skilled personnelpersonnel

High degree of product flexibilityHigh degree of product flexibility

Typically high costs and low equipment Typically high costs and low equipment utilizationutilization

Product flows may vary considerably Product flows may vary considerably making planning and scheduling a making planning and scheduling a challengechallenge




Many Many inputsinputs

Many Many variety variety

of of outputsoutputs

Job ShopJob Shop

Ma

ny

de

par

tme

nts

an

d

man

y r

ou

tin

gs



Accounting

Process Flow DiagramProcess Flow Diagram

Information flowInformation flowMaterial flowMaterial flow

Figure 7.2Figure 7.2

COLLATING DEPT

GLUING, BINDING, STAPLING, LABELING

POLYWRAP DEPT

SHIPPING

Customer

PRINTING DEPT

PREPRESS DEPTVendors

Receiving

Warehouse

Purchasing

Customer

Customer sales representative




Facilities often organized as Facilities often organized as assembly linesassembly lines

Characterized by modules with parts Characterized by modules with parts and assemblies made previouslyand assemblies made previously

Modules may be combined for many Modules may be combined for many output optionsoutput options

Less flexibility than process-Less flexibility than process-focused facilities but more efficientfocused facilities but more efficient




Raw Raw materials materials

and and module module inputsinputs

Modules Modules combined combined for many for many

output output optionsoptions

Few Few modulesmodules

Automobile Assembly LineAutomobile Assembly Line



Process Flow DiagramProcess Flow Diagram

THE ASSEMBLY LINETHE ASSEMBLY LINETESTING28 tests

Oil tank work cell

Shocks and forks

Handlebars

Fender work cell

Air cleaners

Fluids and mufflers

Fuel tank work cell

Wheel work cell

Roller testing

Incoming parts

From Milwaukee From Milwaukee on a JIT arrival on a JIT arrival scheduleschedule

Engines and transmissions

Frame tube bending

Frame-building work cells

Frame machining

Hot-paint frame painting

Crating





Facilities are organized by productFacilities are organized by product

High volume but low variety of High volume but low variety of productsproducts

Long, continuous production runs Long, continuous production runs enable efficient processesenable efficient processes

Typically high fixed cost but low Typically high fixed cost but low variable costvariable cost

Generally less skilled laborGenerally less skilled labor




Few Few inputsinputs

Output Output variations variations

in size, in size, shape, shape,

and and packagingpackaging

Continuous Work FlowContinuous Work Flow



Product FocusProduct FocusNucor Steel PlantNucor Steel Plant

Co

nti

nu

ou

s ca

ster

Co

nti

nu

ou

s ca

ster

Continuous cast steel Continuous cast steel sheared into 24-ton slabssheared into 24-ton slabs

Hot tunnel furnace - 300 ftHot tunnel furnace - 300 ft

Hot mill for finishing, cooling, and coilingHot mill for finishing, cooling, and coiling

DD

EE FF

GGHHII

Scrap Scrap steelsteel

Ladle of molten steelLadle of molten steelElectric Electric furnacefurnace

AA

BBCC



Mass CustomizationMass Customization

The rapid, low-cost production of The rapid, low-cost production of goods and service to satisfy goods and service to satisfy increasingly unique customer increasingly unique customer desiresdesires

Combines the Combines the flexibility of a flexibility of a process focus process focus with the efficiency with the efficiency of a product focusof a product focus




Vehicle modelsVehicle models 140140 286286Vehicle typesVehicle types 1818 1,2121,212Bicycle typesBicycle types 88 1919Software titlesSoftware titles 00 400,000400,000Web sitesWeb sites 00 98,116,99398,116,993Movie releasesMovie releases 267267 458458New book titlesNew book titles 40,53040,530 77,44677,446Houston TV channelsHouston TV channels 55 185185Breakfast cerealsBreakfast cereals 160160 340340Items (SKUs) in Items (SKUs) in 14,00014,000 150,000150,000 supermarketssupermarketsLCD TVsLCD TVs 00 102102

Number of ChoicesNumber of Choices

ItemItem 1970s1970s 2121stst Century Century Table 7.1Table 7.1




Mass Customization

Effective Effective scheduling scheduling techniquestechniques

Rapid Rapid throughput throughput techniquestechniques

Repetitive FocusRepetitive FocusFlexible peopleFlexible peopleand equipmentand equipment

Process-FocusedProcess-FocusedHigh variety, low volumeHigh variety, low volume

Low utilization Low utilization (5% to 25%)(5% to 25%)General-purpose equipmentGeneral-purpose equipment

Product-FocusedProduct-FocusedLow variety, high volumeLow variety, high volume

High utilization High utilization (70% to 90%)(70% to 90%)Specialized equipmentSpecialized equipment


Modular techniquesModular techniquesSupportive Supportive

supply supply chainschains



Comparison of ProcessesComparison of Processes

Process Process FocusFocus

(Low volume, (Low volume, high variety)high variety)

Repetitive Repetitive FocusFocus

(Modular)(Modular)


(High-volume, (High-volume, low-variety)low-variety)

Mass Mass CustomizationCustomization

(High-volume, (High-volume, high-variety)high-variety)

Small Small quantity, quantity, large variety large variety of productsof products

Long runs, Long runs, standardized standardized product made product made from modulesfrom modules

Large Large quantity, small quantity, small variety of variety of productsproducts

Large Large quantity, large quantity, large variety of variety of productsproducts

General General purpose purpose equipmentequipment

Special Special equipment equipment aids in use of aids in use of assembly lineassembly line

Special Special purpose purpose equipmentequipment

Rapid Rapid changeover changeover on flexible on flexible equipmentequipment

Table 7.2Table 7.2







(Modular)(Modular)





Operators are Operators are broadly broadly skilledskilled

Employees Employees are modestly are modestly trainedtrained

Operators are Operators are less broadly less broadly skilledskilled

Flexible Flexible operators are operators are trained for the trained for the necessary necessary customizationcustomization

Many job Many job instructions instructions as each job as each job changeschanges

Repetition Repetition reduces reduces training and training and changes in job changes in job instructionsinstructions

Few work Few work orders and job orders and job instructions instructions because jobs because jobs standardizedstandardized

Custom Custom orders require orders require many job many job instructionsinstructions

Table 7.2Table 7.2







(Modular)(Modular)





Raw material Raw material inventories inventories highhigh

JIT JIT procurement procurement techniques techniques usedused

Raw material Raw material inventories inventories are loware low

Raw material Raw material inventories inventories are loware low

Work-in-Work-in-process is process is highhigh

JIT inventory JIT inventory techniques techniques usedused

Work-in-Work-in-process process inventory is inventory is lowlow

Work-in-Work-in-process process inventory inventory driven down driven down by JIT, lean by JIT, lean productionproduction

Table 7.2Table 7.2







(Modular)(Modular)





Units move Units move slowly slowly through the through the plantplant

Movement is Movement is measured in measured in hours and hours and daysdays

Swift Swift movement of movement of unit through unit through the facility is the facility is typicaltypical

Goods move Goods move swiftly swiftly through the through the facilityfacility

Finished Finished goods made goods made to orderto order

Finished Finished goods made goods made to frequent to frequent forecastforecast

Finished Finished goods made goods made to forecast to forecast and storedand stored

Finished Finished goods often goods often build-to-order build-to-order (BTO)(BTO)

Table 7.2Table 7.2







(Modular)(Modular)





Scheduling is Scheduling is complex, complex, trade-offs trade-offs between between inventory, inventory, availability, availability, customer customer serviceservice

Scheduling Scheduling based on based on building building various various models from models from a variety of a variety of modules to modules to forecastsforecasts

Relatively Relatively simple simple scheduling, scheduling, establishing establishing output rate to output rate to meet forecastsmeet forecasts

Sophisticated Sophisticated scheduling scheduling required to required to accommodate accommodate custom orderscustom orders

Table 7.2Table 7.2







(Modular)(Modular)





Fixed costs Fixed costs low, variable low, variable costs highcosts high

Fixed costs Fixed costs dependent on dependent on flexibility of flexibility of the facilitythe facility

Fixed costs Fixed costs high, variable high, variable costs lowcosts low

Fixed costs Fixed costs high, variable high, variable costs must be costs must be lowlow

Costing Costing estimated estimated before job, before job, known only known only after the jobafter the job

Costs usually Costs usually known due to known due to extensive extensive experienceexperience

High fixed High fixed costs mean costs mean costs costs dependent on dependent on utilization of utilization of capacitycapacity

High fixed High fixed costs and costs and dynamic dynamic variable costs variable costs make costing make costing a challengea challenge

Table 7.2Table 7.2



Process Analysis ToolsProcess Analysis Tools

Flowcharts provide a view of the Flowcharts provide a view of the big picturebig picture

Time-function mapping adds rigor Time-function mapping adds rigor and a time elementand a time element

Value-stream analysis extends to Value-stream analysis extends to customers and supplierscustomers and suppliers

Process charts show detailProcess charts show detail

Service blueprint focuses on Service blueprint focuses on customer interactioncustomer interaction



Improving Service Improving Service ProductivityProductivity

StrategyStrategy TechniqueTechnique ExampleExample

SeparationSeparation Structure service so Structure service so customers must go customers must go where service is where service is offeredoffered

Bank customers go to Bank customers go to a manager to open a a manager to open a new account, to loan new account, to loan officers for loans, and officers for loans, and to tellers for depositsto tellers for deposits

Self-serviceSelf-service Self-service so Self-service so customers examine, customers examine, compare, and compare, and evaluate at their own evaluate at their own pacepace

Supermarkets and Supermarkets and department stores, department stores, Internet orderingInternet ordering

Table 7.3Table 7.3




PostponementPostponement Customizing at Customizing at deliverydelivery

Customizing vans at Customizing vans at delivery rather than at delivery rather than at productionproduction

FocusFocus Restricting the Restricting the offeringsofferings

Limited-menu Limited-menu restaurantrestaurant

ModulesModules Modular selection of Modular selection of service, modular service, modular productionproduction

Investment and Investment and insurance selection, insurance selection, prepackaged food prepackaged food modules in modules in restaurantsrestaurants


Table 7.3Table 7.3




AutomationAutomation Separating services Separating services that may lend that may lend themselves to themselves to automationautomation

Automatic teller Automatic teller machinesmachines

SchedulingScheduling Precise personnel Precise personnel schedulingscheduling

Scheduling ticket Scheduling ticket counter personnel at counter personnel at 15-minute intervals at 15-minute intervals at airlinesairlines

TrainingTraining Clarifying the service Clarifying the service options, explaining options, explaining how to avoid how to avoid problemsproblems

Investment counselor, Investment counselor, funeral directors, after-funeral directors, after-sale maintenance sale maintenance personnelpersonnel


Table 7.3Table 7.3



Improving Service Improving Service ProcessesProcesses

LayoutLayout Product exposure, customer Product exposure, customer

education, product enhancementeducation, product enhancement

Human ResourcesHuman Resources Recruiting and trainingRecruiting and training

Impact of flexibilityImpact of flexibility



Production TechnologyProduction Technology

Machine technologyMachine technology Automatic identification Automatic identification

systems (AISs)systems (AISs) Process controlProcess control Vision systemVision system RobotRobot Automated storage and retrieval systems Automated storage and retrieval systems

(ASRSs)(ASRSs) Automated guided vehicles (AGVs)Automated guided vehicles (AGVs) Flexible manufacturing systems (FMSs)Flexible manufacturing systems (FMSs) Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM)




Service IndustryService Industry ExampleExample

Financial Financial ServicesServices

Debit cards, electronic funds transfer, Debit cards, electronic funds transfer, ATMs, Internet stock tradingATMs, Internet stock trading

EducationEducation Electronic bulletin boards, on-line journals, Electronic bulletin boards, on-line journals, WebCT and BlackboardWebCT and Blackboard

Utilities and Utilities and governmentgovernment

Automated one-man garbage trucks, optical Automated one-man garbage trucks, optical mail and bomb scanners, flood warning mail and bomb scanners, flood warning systemssystems

Restaurants and Restaurants and foodsfoods

Wireless orders from waiters to kitchen, Wireless orders from waiters to kitchen, robot butchering, transponders on cars that robot butchering, transponders on cars that track sales at drive-throughstrack sales at drive-throughs

CommunicationsCommunications Electronic publishing, interactive TVElectronic publishing, interactive TV

Table 7.4Table 7.4




Service IndustryService Industry ExampleExample

HotelsHotels Electronic check-in/check-out, electronic Electronic check-in/check-out, electronic key/lock systemkey/lock system

Wholesale/retail Wholesale/retail tradetrade

ATM-like kiosks, point-of-sale (POS) ATM-like kiosks, point-of-sale (POS) terminals, e-commerce, electronic terminals, e-commerce, electronic communication between store and supplier, communication between store and supplier, bar coded databar coded data

TransportationTransportation Automatic toll booths, satellite-directed Automatic toll booths, satellite-directed navigation systemsnavigation systems

Health careHealth care Online patient-monitoring, online medical Online patient-monitoring, online medical information systems, robotic surgeryinformation systems, robotic surgery

AirlinesAirlines Ticketless travel, scheduling, Internet Ticketless travel, scheduling, Internet purchasespurchases

Table 7.4Table 7.4



Process RedesignProcess Redesign

The fundamental rethinking of business The fundamental rethinking of business processes to bring about dramatic processes to bring about dramatic improvements in performanceimprovements in performance

Relies on reevaluating the purpose of the Relies on reevaluating the purpose of the process and questioning both the process and questioning both the purpose and the underlying assumptionspurpose and the underlying assumptions

Requires reexamination of the basic Requires reexamination of the basic process and its objectivesprocess and its objectives

Focuses on activities that cross Focuses on activities that cross functional linesfunctional lines

Any process is a candidate for redesignAny process is a candidate for redesign



Ethics and Environmentally Ethics and Environmentally Friendly ProcessesFriendly Processes

Encourage recyclingEncourage recycling

Efficient use of resourcesEfficient use of resources

Reduction of waste by-productsReduction of waste by-products

Use less harmful ingredientsUse less harmful ingredients

Use less energyUse less energy

Reduce the negative impact on the Reduce the negative impact on the environmentenvironment

7 – 41

Departament d’Economia de l’Empresa / Department of Business Economics & Administration

Operations ManagementOperations Management

Layout StrategiesLayout Strategies



OutlineOutline

Global Company Profile: Global Company Profile: McDonald’sMcDonald’s

The Strategic Importance of The Strategic Importance of Layout DecisionsLayout Decisions

Types of LayoutTypes of Layout

Office LayoutOffice Layout




Retail LayoutRetail Layout ServicescapesServicescapes

Warehousing and Storage LayoutsWarehousing and Storage Layouts Cross-DockingCross-Docking

Random DockingRandom Docking

CustomizingCustomizing

Fixed-Position LayoutFixed-Position Layout




Process-Oriented LayoutProcess-Oriented Layout Computer Software for Process-Computer Software for Process-

Oriented LayoutsOriented Layouts Work CellsWork Cells

Requirements of Work CellsRequirements of Work Cells Staffing and Balancing Work CellsStaffing and Balancing Work Cells The Focused Work Center and the The Focused Work Center and the

Focused FactoryFocused Factory




Repetitive and Product-Oriented Repetitive and Product-Oriented LayoutLayout Assembly-Line BalancingAssembly-Line Balancing



Learning ObjectivesLearning Objectives

When you complete this chapter you When you complete this chapter you should be able to:should be able to:

1.1. Identify the different types of layout and Identify the different types of layout and its usesits uses

2.2. Understand layout relevance for strategyUnderstand layout relevance for strategy



Innovations at McDonald’sInnovations at McDonald’s

Indoor seating (1950s)Indoor seating (1950s) Drive-through window (1970s)Drive-through window (1970s) Adding breakfast to the menu Adding breakfast to the menu

(1980s)(1980s) Adding play areas (late 1980s)Adding play areas (late 1980s) Redesign of the kitchens (1990s)Redesign of the kitchens (1990s) Self-service kiosk (2004)Self-service kiosk (2004) Now three separate dining sectionsNow three separate dining sections



Innovations at McDonald’sInnovations at McDonald’s

Indoor seating (1950s)Indoor seating (1950s) Drive-through window (1970s)Drive-through window (1970s) Adding breakfast to the menu Adding breakfast to the menu

(1980s)(1980s) Adding play areas (late 1980s)Adding play areas (late 1980s) Redesign of the kitchens (1990s)Redesign of the kitchens (1990s) Self-service kiosk (2004)Self-service kiosk (2004) Now three separate dining sectionsNow three separate dining sections

Six out of the Six out of the seven are seven are

layout layout decisions!decisions!



McDonald’s New LayoutMcDonald’s New Layout

Seventh major innovation Seventh major innovation Redesigning all 30,000 outlets around Redesigning all 30,000 outlets around

the worldthe world Three separate dining areasThree separate dining areas

Linger zone with comfortable chairs and Linger zone with comfortable chairs and Wi-Fi connectionsWi-Fi connections

Grab and go zone with tall countersGrab and go zone with tall counters Flexible zone for kids and familiesFlexible zone for kids and families

Facility layout is a source of Facility layout is a source of competitive advantagecompetitive advantage



Strategic Importance of Strategic Importance of Layout DecisionsLayout Decisions

The objective of layout strategy The objective of layout strategy is to develop a cost-effective is to develop a cost-effective layout that will meet a firm’s layout that will meet a firm’s

competitive needscompetitive needs



Layout Design Layout Design ConsiderationsConsiderations

Higher utilization of space, equipment, Higher utilization of space, equipment, and peopleand people

Improved flow of information, materials, Improved flow of information, materials, or peopleor people

Improved employee morale and safer Improved employee morale and safer working conditionsworking conditions

Improved customer/client interactionImproved customer/client interaction

FlexibilityFlexibility




1.1. Office layout Office layout

2.2. Retail layout Retail layout

3.3. Warehouse layoutWarehouse layout

4.4. Fixed-position layoutFixed-position layout

5.5. Process-oriented layoutProcess-oriented layout

6.6. Work-cell layout Work-cell layout

7.7. Product-oriented layoutProduct-oriented layout




1.1. Office layout: Positions workers, Office layout: Positions workers, their equipment, and spaces/offices their equipment, and spaces/offices to provide for movement of to provide for movement of informationinformation

2.2. Retail layout: Allocates shelf space Retail layout: Allocates shelf space and responds to customer behavior and responds to customer behavior

3.3. Warehouse layout: Addresses trade-Warehouse layout: Addresses trade-offs between space and material offs between space and material handlinghandling




4.4. Fixed-position layout: Addresses Fixed-position layout: Addresses the layout requirements of large, the layout requirements of large, bulky projects such as ships and bulky projects such as ships and buildingsbuildings

5.5. Process-oriented layout: Deals with Process-oriented layout: Deals with low-volume, high-variety production low-volume, high-variety production (also called job shop or intermittent (also called job shop or intermittent production)production)




6.6. Work cell layout: Arranges Work cell layout: Arranges machinery and equipment to focus machinery and equipment to focus on production of a single product or on production of a single product or group of related productsgroup of related products

7.7. Product-oriented layout: Seeks the Product-oriented layout: Seeks the best personnel and machine best personnel and machine utilizations in repetitive or utilizations in repetitive or continuous productioncontinuous production



Good Layouts ConsiderGood Layouts Consider

1.1. Material handling equipmentMaterial handling equipment

2.2. Capacity and space requirementsCapacity and space requirements

3.3. Environment and aestheticsEnvironment and aesthetics

4.4. Flows of informationFlows of information

5.5. Cost of moving between various Cost of moving between various work areaswork areas




Table 9.1Table 9.1

OfficeOffice RetailRetailWarehouse Warehouse

(storage)(storage)

ExamplesExamples

Allstate InsuranceAllstate Insurance

Microsoft Corp.Microsoft Corp.

Kroger’sKroger’s Supermarket Supermarket

Walgreen’sWalgreen’s

Bloomingdale’sBloomingdale’s

Federal-Mogul’sFederal-Mogul’s warehouse warehouse

The Gap’sThe Gap’s distribution center distribution center

Problems/IssuesProblems/Issues

Locate workers Locate workers requiring frequent requiring frequent contact close to contact close to one anotherone another

Expose customer Expose customer to high-margin to high-margin itemsitems

Balance low-cost Balance low-cost storage with low-storage with low-cost material cost material handlinghandling




Table 9.1Table 9.1

Project Project (fixed position)(fixed position)

Job Shop Job Shop (process oriented)(process oriented)

ExamplesExamples

Ingall Ship BuildingIngall Ship Building Corp. Corp.

Trump PlazaTrump Plaza

Pittsburgh AirportPittsburgh Airport

Arnold Palmer HospitalArnold Palmer Hospital

Hard Rock CaféHard Rock Café

Olive GardenOlive Garden


Move material to the Move material to the limited storage areas limited storage areas around the sitearound the site

Manage varied material Manage varied material flow for each productflow for each product




Table 9.1Table 9.1

Work Cells Work Cells (product families)(product families)

Repetitive/ Continuous Repetitive/ Continuous (product oriented)(product oriented)

ExamplesExamples

Hallmark CardsHallmark Cards

Wheeled CoachWheeled Coach

Standard AeroStandard Aero

Sony’s TV assemblySony’s TV assembly line line

Toyota ScionToyota Scion


Identify a product Identify a product family, build teams, family, build teams, cross train team cross train team membersmembers

Equalize the task time Equalize the task time at each workstationat each workstation

Date post:	28-Nov-2014
Category:	Education
Upload:	joanmaines
View:	53,988 times
Download:	0 times