Process Selection and Facility Layout
CHAPTER 6
PROCESS SELECTION AND FACILITY LAYOUT
KEY IDEAS
1. Process Selection. Process selection involves making choices concerning the way an
organization will produce its products or provide services to its customers. It has major
implications for capacity planning, layout and work methods.
2. Process Types. Managers can select from five different types of processes: job shop, batch,
repetitive, continuous and projects. Job shops are used to produce a low volume of each of a
large variety of products or services. Equipment flexibility must be high to handle the high
variety of jobs.
Batch processing involves less variety, less need for equipment flexibility, and higher volumes of
each type of product. Repetitive processing has even less variety, less need for equipment
flexibility, and higher volume. Continuous processing has the lowest variety, the lowest need for
equipment flexibility, and the highest volume.
Job shops and batch processing are classified as intermittent systems, meaning that output
frequently switches from one product or service to another. Repetitive and continuous systems
are classified as continuous processing because there is little or no switching from one product to
another.
Projects are used for non-routine work that is intended to meet a given set of objectives in a
limited time frame. Job variety is high, volume is usually low, and equipment flexibility needs
can range from low to high.
3. Product Profiling. Process selection can involve substantial investment in equipment.
Mismatches between operations capabilities and market demand and pricing or cost strategies can
have a negative impact on the ability of the organization to operate effectively. Hence, it is
highly desirable to assess process choices relative to market conditions prior to making process
choices in order to achieve an appropriate matching. Product profiling can be used to avoid any
inconsistencies by identifying key product or service dimensions and then selecting appropriate
processes. Key dimensions often relate to the range of products or services that will be
processed, expected order sizes, pricing strategies, expected frequency of schedule changes, and
order-winning requirements.
4. Layout Types. There are three fundamental types of plant layout, respectively corresponding to
the three different types of production operations situations.
a. A product layout implies that a single product or else a single type of product, for example,
automobiles, is manufactured on an assembly line, with the production tasks assigned to
workstations along the line.
b. A process layout involves the movement of batches of goods between departments via forklift
truck, moving belt, or some other type of conveyance.
c. A fixed-position layout is appropriate for a large end item such as a house or airplane, where
all material is assembled to a major structure or product at a specified site.
5. Product Layouts. A product layout such as the assembly lines associated with automobile
factories is a good idea when it is justified by the volume. The advantages of product layout are
that it involves continuous flow of the work in process, minimum work-in-process inventory,
maximum specialization, low material handling costs, efficient utilization of labor and equipment,
