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Subject Code: BAOPNMAX

Subject Title: Operations Management and Total Quality Management

Subject Description: This course tackles the nature, scope, functions and importance of
production and operations management in business. It includes
discussions on productivity, competitiveness and strategy,
forecasting, production system design, process selection and
capacity planning, facilities layout, design of work systems, quality,
scheduling and just-in-time manufacturing systems. Cases will also
be used to illustrate and apply the basic production and operations
concepts and tools commonly used in business firms. Total Quality
Management will familiarize students with the basic principles and
methods associated with Total Quality and Performance Excellence,
how these principles and methods have been put into effect in a
variety of organizations, and to illustrate the relationship between
principles and theories in the study of business courses especially
programs that discusses managing of people and industry.

No. of Units: 3

Class Schedule: ACT102: Face-to-Face: Saturday 1:00pm – 12:00pm

Course Learning Outcomes:

At the end of the course, the student will be able to:
1. Analyze the importance of quality management towards cost reduction. Report on project
management and its importance.
2. Demonstrate how to design goods and services and how managing quality may provide
competitive advantage.
3. Evaluate the relevance of leadership, human management and supply-chain management
to sustainability.
4. Assess the strategic importance of inventory management, maintenance, and decisions
related to processes, location and layout/facility.

About the Instructor:

PROF. MARK ANTHONY R. LAZARO, LPT, MBA
● Professional Lecturer 4 – National University Baliwag , December 2022 to Present
● Administrative Payroll Specialist – Philippine Airlines, 2016 to Present
● Licensed Professional Teacher – October 2022
● Master in Business Administration – Baliuag University, 2022
● Continuing Professional Teacher Education (CPTE) – Baliwag Polytechnic College, 2019
● Bachelor of Science in Accountancy – Baliuag University, 2015
● Bachelor of Science in Business Administration, Baliuag University, 2013

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Topic 6
FACILITY AND WORK DESIGN
Objectives:
▪ Describe four layout patterns and when they should be used.
▪ Explain how to design product layouts using assembly-line balancing.
▪ Explain concepts of process layout.
▪ Describe issues related to workplace design.
▪ Describe the human issues related to workplace design.

Facility Layout
Facility layout refers to the specific arrangement of physical facilities. Facility-layout studies are
necessary whenever:
1. a new facility is constructed,
2. there is a significant change in demand or throughput volume,
3. a new good or service is introduced to the customer benefit package, or
4. different processes, equipment, and/or technology are installed.

Product Layout for Wine Manufacturer

Product Layout
• Advantages: Lower work-in-process inventories, shorter processing times, less material
handling, lower labor skills, and simple planning and control systems.
• Disadvantages: A breakdown at one workstation can cause the entire process to shut
down; a change in product design or the introduction of new products may require major
changes in the layout, limiting flexibility.

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 • A process layout consists of a functional grouping of equipment or activities that do similar
work.
• Examples: Legal offices, shoe manufacturing, jet engine turbine blades, and hospitals use
a process layout.

Process Layout for a Machine Shop

Process Layout
• Advantages: A lower investment in equipment, the diversity of jobs inherent in a process
layout can lead to increased worker satisfaction.
• Disadvantages: High movement and transportation costs, more complicated planning and
control systems, longer total processing time, higher in-process inventory or waiting time,
and higher worker-skill requirements.
• In a cellular layout, the design is not according to the functional characteristics of
equipment, but rather by self-contained groups of equipment (called cells), needed for
producing a particular set of goods or services.
• Examples: Legal services, such as labor law, bankruptcy, divorce; medical specialties such
as maternity, oncology, surgery.

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Cellular Manufacturing Layout

Cellular Layout
• Advantages: Reduced materials-handling requirements, quicker response to quality
problems, more efficient use of floor space, more worker responsibility increasing morale.
• Disadvantages: Duplication of equipment among cells, greater worker skills requirements.

• A fixed-position layout consolidates the resources necessary to manufacture a good or

deliver a service, such as people, materials, and equipment, in one physical location.
• Examples: The production of large items such as heavy machine tools, airplanes,
buildings, locomotives, and ships. Service-providing examples include major hardware
and software installations, sporting events, and concerts.

Fixed-Position Layout
• Advantages: Work remains stationary, reducing movement.
• Disadvantages: High level of planning and control required.

Facility Layout in Service Organizations

Service organizations use product, process, cellular, and fixed-position layouts to organize
different types of work.

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 • Process Layout—Services that need the ability to provide a wide variety of services to
customers with differing requirements usually use a process layout.
− Examples: Libraries, hospitals, insurance companies
• Product Layout—Service organizations that provide highly standardized services tend to
use product layouts.
− Examples: Restaurant kitchens

A Typical Manufacturing Workstation Layout

Designing Product Layouts

• An assembly line is a product layout dedicated to combining the components of a good or
service that has been created previously.
− Examples: Automobile assembly, Subway sandwich shops, insurance policy
processing
− Assembly line balancing is a technique to group tasks among workstations so that each
workstation has—in the ideal case—the same amount of work.

Assembly-Line Balancing
Required information:
1. The set of tasks to be performed and the time required to perform each task.
2. The precedence relations among the tasks—that is, the sequence in which tasks must be
performed.
3. The desired output rate or forecast of demand for the assembly line.

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A Three-Task Assembly Line

• One workstation: In an eight-hour day, could produce (1 part/1.0 min)(60 minutes per
hour)(8 hours per day) = 480 parts/day
• Three workstation s (one for each task): The first operator can produce 120 parts per
hour, or 960 parts/day. The second could produce 1,600 parts/day. The third operator can
produce 2,400 parts/day. Maximum output is 960 parts/day.
• Two workstations (A/BC): Since each operator needs 0.5 minute to perform the assigned
duties, the line is in perfect balance, and 960 parts per day can be produced.

Assembly-Line Balancing
Cycle time is the interval between successive outputs coming off the assembly line.
• In the previous example, with one workstation, the cycle time is 1 minute; that is, one
completed assembly is produced every minute.
• If two workstations are used, the cycle time is 0.5 minute/unit.
• If three workstations are used, the cycle time is still 0.5 minute/unit, because task A is the
bottleneck, or slowest operation. The line can produce only one assembly every 0.5
minute.

Cycle time (CT) is related to the output (R) by the following equation:
CT = A/R [8.2]
• A = available time to produce the output.
• The output (R) is normally the demand forecast in units, adjusted for on-hand inventory if
appropriate, or orders released to the factory.
• Both A and R must have the same time units of measure (hour, day, week, month, and so
on).
Minimum number of workstations required
= Sum of task times/Cycle time = t/CT [8.3]

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Total Time Available = (Number of work stations)×(Cycle Time) = (N )(CT )
[8.4]

Total Idle Time = (N )(CT ) − t [8.5]

Assembly-line Efficiency = t/(N ×CT ) [8.6]

Balance Delay = 1 − Assembly-line Efficiency [8.7]

• Line balancing approaches use decision rules, or heuristics, to assign tasks to workstations to
attempt to minimize the amount of idle time at workstations, but do not guarantee optimal
solutions.
• Examples:
− Assign the task with the longest task time first to a workstation if the cycle time would not
be exceeded.
− Assign the shortest task first.

Precedence Network and Workstation Assignment

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Assembly Line Balance for In-Line Skate
Workstation Tasks Total Time Idle Time
A 1, 2, 5 5.7 0.3
B 3, 4, 6, 7, 8 3.7 2.3
Total 9.4 2.6
Using equations [8.4] to [8.6] we may compute the following:
Total Time Available = (Number workstations)(Cycle Time) =
(N )(CT ) = (2)(6) = 12 minutes

Total Idle Time = (N )(CT ) − t = (2)(6) - 9.4 = 2.6 minutes

Assembly-line Efficiency =  t/(N ×CT ) = 9.4/(2 × 6) = 78.3%

Assembly-Line Balancing
Cycle time (CT) is related to the output (R) by the following equation:
CT = A/R [8.2]
• A = available time to produce the output.
• The output (R) is normally the demand forecast in units, adjusted for on-hand inventory if
appropriate, or orders released to the factory.
• Both A and R must have the same time units of measure (hour, day, week, month, and so
on).

Selected Solved Problems

Bass Fishing Solved Problem (p. 155)
Assembly line has six workstations. Management wants an output of 300 reels per day, (with a
7.5 hour workday). The sum of the task times is 8 minutes/reel.
What is the cycle time?
CT = A/R
What is the assembly line efficiency?
Efficiency = t/(N ×CT )
What is the total idle time?
Total Idle Time = (N )(CT ) − t
Bass Fishing Solved Problem

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Assembly line has six workstations. Management wants an output of 300 reels per day, (with a
7.5 hour workday). The sum of the task times is 8 minutes/reel.
What is the cycle time?
CT = A/R = 1.5 min/reel
What is the assembly line efficiency?
Efficiency = t/(N ×CT ) = 88.9%
What is the total idle time?
Total Idle Time = (N )(CT ) − t = 1 min/reel

Assembly-Line Balancing
Minimum number of workstations required
= Sum of task times/Cycle time = t/CT [8.3]
Total Time Available = (Number of work stations)×(Cycle Time) = (N )(CT ) [8.4]
Total Idle Time = (N )(CT ) − t [8.5]
Assembly-line Efficiency = t/(N ×CT ) [8.6]
Balance Delay = 1 − Assembly-line Efficiency [8.7]

Precedence Network and Workstation Assignment

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Given: CT = 6.0 min/unit (see pages 156-157)
Workstation Tasks Total Time Idle Time
A
B
Total
Precedence Network and Workstation Assignment

Assembly Line Balance for In-Line Skate

Workstation Tasks Total Time Idle Time
A 1, 2, 5 5.7 0.3
B 3, 4, 6, 7, 8 3.7 2.3
Total 9.4 2.6
Using equations [8.4] to [8.6] we may compute the following:
Total Time Available = (Number workstations)(Cycle Time) = (N )(CT ) =
Total Idle Time = (N )(CT ) − t =
Assembly-line Efficiency =  t/(N ×CT ) =

Workstation Tasks Total Time Idle Time

A 1, 2, 5 5.7 0.3
B 3, 4, 6, 7, 8 3.7 2.3
Total 9.4 2.6

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Using equations [8.4] to [8.6] we may compute the following:
Total Time Available = (Number workstations)(Cycle Time) =
(N )(CT ) = (2)(6) = 12 minutes
Total Idle Time = (N )(CT ) − t = (2)(6) - 9.4 = 2.6 minutes
Assembly-line Efficiency =  t/(N ×CT ) = 9.4/(2 × 6) = 78.3%

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(+63) 927-533-0342 – (+63) 923-949-5265 [email protected]