PROCESS & FACILITY DESIGN

REVISITED

Review of Measures, Beliefs &

Prescriptions cited in
Small Production Units

Schematic of Operations System

Input
(Raw
Material)

Conversion
(Work In Process)

Output
(Finished
Goods)

Important Indicators:
Throughput Time
Inventory Turnover = Sales Value/ Inventory Value
Service Level: % of orders completed as required
Fill Rate: % of demand quantity fulfilled as required
(For Sales orders as well as for Purchase Orders)

Beliefs ..
Line production is inherently virtuous and can be applied
extensively
Process organization is the most acceptable
transformation method when line production is
impossible

Production management should be structured as a

functional unit
The larger an organization grows, the more efficient it
can become
Multi-cycle ordering of production parts is the most
economically sound purchasing strategy

.. Prescriptions
Organizational units based on Products (or
product groups) rather than Processes
Small, (semi)-autonomous production units
rather than large, centralized organization
Single-cycle (coordinated) ordering of materials

Focussed Factory Concept (Skinner)

A factory cannot do well on all measures
Simplicity and repetition breed competence
There are other ways of competing besides
producing at low cost
Hence:
A plant should focus its attention on a
manageable number of products, volumes,
markets, and/or processes/ technologies

... Focussed Factory (contd.)

Basis for splitting:

Product split
Market/ Segment split
Geographical split
Process/ Technology split
Volume split

Classic forms:
Plant Within A Plant
Focussed Factory Networks (in Lean Operations)

Cellular Manufacturing
The organisation of manufacturing tasks into
self-contained units or cells, comprising:

Different kinds of manufacturing processes,

Arranged in physical proximity,
To produce a limited range or family of items
Required in moderate volumes

Helps to achieve focus by limiting attention to a

few products/ processes/ technologies

Example of a Cell Layout

Machine
2
Machine
3

Machine
1

Materials in

Finished
goods out

Machine
5

Machine
4

Masterchef TV Studio Design

Implications of Cellular Design

Advantages:
Reduction in setup time, inventory
Improved ownership and quality
Limitations:
Flexibility is limited
Higher skill level required from operators
Machine duplication may be needed for selfcontained capabilities

Meaning of Cell and Family

Part Family:
Set of items with similar characteristics
(processing requirements)

Machine Cell:
Set of machines that have the capability to
completely process a part family, and are
selected for layout in one place