Design in Operations Management Session 2 1 Objectives

Design in Operations Management Session 2 1

Objectives • By the end of this session, student will be able to: – Understand the design function – Know the stages involved in the design of products and designs – Appreciate the importance of the design function in the production of products or services – Use simple flow charts, process flow charts, customer processing framework and method study techniques – Identify a manufacturing or service operation by it’s production type – Understand the procedure of a facilities layout decision – Identify the type of layout(s) within a given operation 2

Topics • Product and Service Design • Process Design • Layout Design 3

Definition • To satisfy needs of the customer • Applies to both products and services • The design activity is a transformation process – Starts with concept and ends in a created product or service • Provide products and services which will – Satisfy customers’ wants and needs – In a cost effective and efficient manner 4

Product Designers • Seek to create things that: – – – satisfy needs meet expectations are aesthetically pleasing perform well are reliable are easy to manufacture and deliver • Operations Managers focus on the design of the transformation process 5

Elements of Design • Quality • Speed • Dependability • Flexibility • Cost Why Important – Involves a lot of money – Decision process happens infrequently – Sets limits of operation’s capability 6

Good Design • Meets customer requirements • Is simple to make • Can be rapidly developed into production • Few modifications are required during the development phase 7

Design As a Transformation Process Input Transformed Resources High Quality Materials Information Customers Speedily Produced Input The Design Process Output Dependably Delivered Produced Flexibly Input Transforming Resources Low Cost Facilities Staff 8

The Design Process • • • Concept Generation Screening Preliminary Design Evaluation and Improvement Prototyping and Final Design 9

Product or Service Concept Generation Internal Sources Customer needs analysis External Sources Marketing Surveys Customer suggestions Research departments Suggestions from staff Competitors Concept generation Concept Generation 10

Concept Screening Marketing Operations Finance Feasibility Is the market big enough? Do we have the capabilities to produce it? Do we have sufficient finance? Acceptability How much market share could we gain? How much reorganisation is involved? How much return on investment? Vulnerability What is the risk of failing in the market? What is the risk of not being able to produce to standard? How much could we lose? 11

Preliminary Design Reducing complexity: - • Standardisation – restrict variety to that which has real value for the customer • Commonality – use common elements in a product or service • Modularisation – sub-components that can be assembled in different ways 12

Concurrent Design • Integrated product and process design • Simultaneous decision making by design teams • Design function needs to be more decentralised • Needs careful control - Project Management 13

Design for Manufacturing • If a product is easy to make it will be economical to produce • It is important to consider the manufacturability early in the design phase • Integrate product design with process planning and design 14

Characteristics of Service • • Intangible High customer contact Easily copied Perishable Not able to store or stock De-centralised Each delivery is unique 15

Service Design PERFORMANCE SPECIFICATION DESIGN SPECIFICATION DELIVERY SPECIFICATION 16

A Well Designed Service system • • Customer friendly Flexible Easy to maintain Cost effective Robust Quick to respond Consistent with the company’s strategy 17

Case Study • Design Principles at Braun AG 18

Facilities Layout Decision Procedure Volume and variety Decision 1 Process type Strategic performance objectives Decision 2 Basic layout type Project process Jobbing process Batch process Mass process Continuous process Fixed position layout Process layout Cell layout Product layout Decision 3 Detailed design of layout The physical position of all transforming resources Flow of transformed resources 19

What is Layout & Flow? • Layout – deciding where to put all the facilities, machines, equipment & staff in an operation • Flow – the way in which transformed resources travel through the operation 20

Why is Layout Design Important? • Requires substantial investments of resources • Involves long term commitments – not easily changed • Impact on the cost & efficiency of short term operations 21

Fixed Position Layout • Transformed resources remain stationary • Transforming resources move as necessary • Effectiveness is governed by: – Scheduling of transforming resources – Reliability of transforming resources • Examples: – – – shipbuilding construction projects some surgery Restaurant Highway construction 22

Process Layout • Similar processes (or with similar needs) are located together • Utilisation of transforming resources is improved • Transformed resources move through the operation according to their needs • Different products different needs different routes • May be very complex – Supermarkets – Some machine manufacture 23

Cell Layout • Machines or services grouped into cells • Cells determined by the process requirements of the family of product/services they transform • Could be considered mini product layouts • Can simplify a functional/process layout • Flexible • Duplicates some resources – Buffet restaurant – Disco 24

Cell Layout Saws Drills Office Work Cell Tool Room 25

Product Layout • Locates the transforming resources entirely for the convenience of the transformed resources • Transformed resources follow a specified route • Flow is clear, predictable, easy to control – car assembly – paper manufacture – self-service cafe 26

Comparison of Main Layouts Fixed Position Advantages Cell Very high product and mix flexibility High product and Can give good mix flexibility. compromise. Product/customer not moved Relatively robust Fast throughput. in the case of disruptions. Group work can result in good Easy to supervise. motivation. High variety of tasks for staff Very high unit costs Disadvantages Process Scheduling space and activities can be difficult. Low utilization. Can have very high work in progress Complex flow. Product Low unit costs for high volume. Opportunities for specialization of equipment. Can have low mix flexibility. Can be costly to rearrange existing layout. Not very robust to disruption. Can need more plant. Work can be very repetitive. 27

What Makes a Good Layout? • • Safety Length of flow Clarity of flow Staff comfort Management coordination Accessibility Space utilisation Long term flexibility 28

General Process Layout Design Method • Gather data on work centres & the flow between them • Design schematic of work centres & flows • Adjust schematic for spatial constraints • Draw layout showing actual work centre areas & distances resources/people must travel. Calculate effectiveness measure • Attempt to improve effectiveness, through relocating work centres 29

Detail Design - Fixed Position • Design a layout to maximise the effectiveness of the transforming resources • Resource location – – – Define site & available locations Define resource centres & their requirements Devise evaluation criteria Match resource centres to available locations Preliminary allocation on site criteria Amend allocation using relative-location criteria 30

Detailed Design - Process Layout • Complex due to large number of options possible • Flow charts & relationship charts - balancing • Some of the information requirements – – Area required by each work centre Constraints on the shape of work area allocated Degree & direction of flow between work areas Desirability of work centres proximity to each other or to fixed points in the layout 31

Detail Design – Cell Layout • Cells are a compromise between the flexibility of process layout & the simplicity of product layout • Requires decisions as to – Extent & nature of cells to adopt – Resources to allocate to cells • Product Flow Analysis 32

Process vs Cell Layout Process Layout LATHE 5 4 1 SAW HEAT TREAT SAW PRESS LATHE 3 GRINDER 6 PRESS 2 SAW 2 PRESS Work Cell 1 HEAT TREAT GRINDER 33

Detail Design – Product Layout • Arranging the stages • Long-thin or short-fat? • Shape of the line – Staffing flexibility & balance – Rework – Handling – Passage – Teamwork 34

Long-Thin or Short-Fat? (1) 30 mins 60 mins 120 mins 35

Long-Thin or Short-Fat? (2) • Advantages of Long-Thin Layouts – – Controlled flow Simple materials handling Lower capital requirements More efficient operation • Advantages of Short-Fat Layouts – – Higher mix flexibility Higher volume flexibility Higher robustness Less monotonous work 36

Case Study • Delhaize De Leeuw supermarket 37