29499423 layout assignment
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PRODUCTION AND
OPERATIONMANAGEMENT
ASSIGNMENT
SUBMITTED TO-
Dr. MAHENDRA SINGH SIR
SUBMITTED BY-VARUN MISHRA
MBA CM sem 2
IMS LUCKNOW UNIVERSITY
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PLANT LAYOUT
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LAYOUT
In manufacturing, facility layout consists of configuring the plant site with lines,
buildings, major facilities, work areas, aisles, and other pertinent features such as
department boundaries. While facility layout for services may be similar to that for
manufacturing, it also may be somewhat differentas is the case with offices,
retailers, and warehouses. Because of its relative permanence, facility layout
probably is one of the most crucial elements affecting efficiency. An efficient
layout can reduce unnecessary material handling, help to keep costs low, and
maintain product flow through the facility.
irms in the upper left!hand corner of the product!process matri" have a process
structure known as a jumbled flow or a disconnected or intermittent line flow.
#pper!left firms generally have a process layout. irms in the lower right!handcorner of the product!process matri" can have a line or continuous flow. irms in
the lower!right part of the matri" generally have a product layout. $ther types of
layouts include fi"ed!position, combination, cellular, and certain types of service
layouts.
PROCESS LAYOUT
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%rocess layouts are found primarily in job shops, or firms that produce customi&ed,
low!volume products that may re'uire different processing re'uirements and
se'uences of operations. %rocess layouts are facility configurations in which
operations of a similar nature or function are grouped together. As such, they
occasionally are referred to as functional layouts. (heir purpose is to process goods
or provide services that involve a variety of processing re'uirements. A
manufacturing e"ample would be a machine shop. A machine shop generally has
separate departments where general!purpose machines are grouped together by
function )e.g., milling, grinding, drilling, hydraulic presses, and lathes*. (herefore,
facilities that are configured according to individual functions or processes have a
process layout. (his type of layout gives the firm the fle"ibility needed to handle a
variety of routes and process re'uirements. +ervices that utili&e process layouts
include hospitals, banks, auto repair, libraries, and universities.
Improving process layouts involves the minimi&ation of transportation cost,distance, or time. (o accomplish this some firms use what is known as a uther
grid, where subjective information is summari&ed on a grid displaying various
combinations of department, work group, or machine pairs. -ach combination
)pair*, represented by an intersection on the grid, is assigned a letter indicating the
importance of the closeness of the two )A absolutely necessary/ - very
important/ I important/ $ ordinary importance/ # unimportant/ 0
undesirable*. Importance generally is based on the shared use of facilities,
e'uipment, workers or records, work flow, communication re'uirements, or safety
re'uirements. (he departments and other elements are then assigned to clusters in
order of importance.
Advantaes !" #$!%ess &a'!(ts )n%&(de*
le"ibility. (he firm has the ability to handle a variety of processing
re'uirements. 1ost. +ometimes, the general!purpose e'uipment utili&ed may be less costly
to purchase and less costly and easier to maintain than speciali&ed
e'uipment.
otivation. -mployees in this type of layout will probably be able to
perform a variety of tasks on multiple machines, as opposed to the boredom
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of performing a repetitive task on an assembly line. A process layout also
allows the employer to use some type of individual incentive system.
+ystem protection. +ince there are multiple machines available, process
layouts are not particularly vulnerable to e'uipment failures.
D)sadvantaes !" #$!%ess &a'!(ts )n%&(de*
#tili&ation. -'uipment utili&ation rates in process layout are fre'uently very
low, because machine usage is dependent upon a variety of output
re'uirements.
1ost. If batch processing is used, in!process inventory costs could be high.2ower volume means higher per!unit costs. ore speciali&ed attention is
necessary for both products and customers. +etups are more fre'uent, hence
higher setup costs. aterial handling is slower and more inefficient. (he
span of supervision is small due to job comple"ities )routing, setups, etc.*, so
supervisory costs are higher. Additionally, in this type of layout accounting,
inventory control, and purchasing usually are highly involved.
1onfusion. 1onstantly changing schedules and routings make juggling
process re'uirements more difficult.
PRODUCT LAYOUT
volume of products in a short time. 1ost.
#nit cost is low as a result of the high volume. 2abor speciali&ation results
in reduced training time and cost. A wider span of supervision also reduces
labor costs. Accounting, purchasing, and inventory control are routine.
Because routing is fi"ed, less attention is re'uired.
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#tili&ation.
(here is a high degree of %roduct layouts are found in flow shops )repetitive
assembly and process or continuous flow industries*. low shops produce high!
volume, highly standardi&ed products that re'uire highly standardi&ed, repetitive
processes. In a product layout, resources are arranged se'uentially, based on the
routing of the products. In theory, this se'uential layout allows the entire process to
be laid out in a straight line, which at times may be totally dedicated to the
production of only one product or product version. (he flow of the line can then be
subdivided so that labor and e'uipment are utili&ed smoothly throughout the
operation. reasonable balance of work among the workstations.
%roduct layout efficiency is often enhanced through the use of line balancing. 2ine
balancing is the assignment of tasks to workstations in such a way that
workstations have appro"imately e'ual time re'uirements. (his minimi&es the
amount of time that some workstations
(wo types of lines are used in product layouts3 paced and unpaced. %aced lines can
use some sort of conveyor that moves output along at a continuous rate so thatworkers can perform operations on the product as it goes by. or longer operating
times, the worker may have to walk alongside the work as it moves until he or she
is finished and can walk back to the workstation to begin working on another part
)this essentially is how automobile manufacturing works*.
$n an unpaced line, workers build up 'ueues between workstations to allow a
variable work pace. 4owever, this type of line does not work well with large,
bulky products because too much storage space may be re'uired. Also, it is
difficult to balance an e"treme variety of output rates without significant idle time.
A techni'ue known as assembly!line balancing can be used to group the individualtasks performed into workstations so that there will be a
are idle, due to waiting on parts from an upstream process or to avoid building up
an inventory 'ueue in front of a downstream process.
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Advantaes !" #$!d(%t &a'!(ts )n%&(de*
$utput. %roduct layouts can generate a large labor and e'uipment utili&ation.
D)sadvantaes !" #$!d(%t &a'!(ts )n%&(de*
otivation. (he system5s inherent division of labor can result in dull,
repetitive jobs that can prove to be 'uite stressful. Also, assembly!line
layouts make it very hard to administer individual incentive plans.
le"ibility. %roduct layouts are infle"ible and cannot easily respond to
re'uired system changesespecially changes in product or process design.
+ystem protection. (he system is at risk from e'uipment breakdown,
absenteeism, and downtime due to preventive maintenance.
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+I,ED-POSITION LAYOUT
A fi"ed!position layout is appropriate for a product that is too large or too heavy to
move. or e"ample, battleships are not produced on an assembly line. or services,
other reasons may dictate the fi"ed position )e.g., a hospital operating room where
doctors, nurses, and medical e'uipment are brought to the patient*. $ther fi"ed!
position layout e"amples include construction )e.g., buildings, dams, and electric
or nuclear power plants*, shipbuilding, aircraft, aerospace, farming, drilling for oil,home repair, and automated car washes. In order to make this work, re'uired
resources must be portable so that they can be taken to the job for 6on the spot6
performance.
7ue to the nature of the product, the user has little choice in the use of a fi"ed!
position layout.
Disadvantages in!"de#
+pace. or many fi"ed!position layouts, the work area may be crowded so
that little storage space is available. (his also can cause material handling
problems.
Administration. $ftentimes, the administrative burden is higher for fi"ed!
position layouts. (he span of control can be narrow, and coordinationdifficult.
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COMBINATION LAYOUTS
any situations call for a mi"ture of the three main layout types. (hese mi"tures
are commonly called combination or hybrid layouts. or e"ample, one firm may
utili&e a process layout for the majority of its process along with an assembly in
one area. Alternatively, a firm may utili&e a fi"ed!position layout for the assembly
of its final product, but use assembly lines to produce the components and
subassemblies that make up the final product )e.g., aircraft*.
CELLULAR LAYOUT
1ellular manufacturing is a type of layout where machines are grouped according
to the process re'uirements for a set of similar items )part families* that re'uire
similar processing. (hese groups are called cells. (herefore, a cellular layout is an
e'uipment layout configured to support cellular manufacturing.
%rocesses are grouped into cells using a techni'ue known as group technology
)8(*. 8roup technology involves identifying parts with similar designcharacteristics )si&e, shape, and function* and similar process characteristics )type
of processing re'uired, available machinery that performs this type of process, and
processing se'uence*.
Workers in cellular layouts are cross!trained so that they can operate all the
e'uipment within the cell and take responsibility for its output. +ometimes the cells
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feed into an assembly line that produces the final product. In some cases a cell is
formed by dedicating certain e'uipment to the production of a family of parts
without actually moving the e'uipment into a physical cell )these are called virtual
or nominal cells*. In this way, the firm avoids the burden of rearranging its current
layout. 4owever, physical cells are more common.
An automated version of cellular manufacturing is the fle"ible manufacturing
system )+*. With an +, a computer controls the transfer of parts to the
various processes, enabling manufacturers to achieve some of the benefits of
product layouts while maintaining the fle"ibility of small batch production.
S!me !" t.e advantaes !" %e&&(&a$ man("a%t($)n )n%&(de*
1ost. 1ellular manufacturing provides for faster processing time, less
material handling, less work!in!process inventory, and reduced setup time,
all of which reduce costs.
le"ibility. 1ellular manufacturing allows for the production of smallbatches, which provides some degree of increased fle"ibility. (his aspect is
greatly enhanced with +s.
otivation. +ince workers are cross!trained to run every machine in the cell,
boredom is less of a factor. Also, since workers are responsible for their
cells5 output, more autonomy and job ownership is present.
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OTHER LAYOUTS
In addition to the aforementioned layouts, there are others that are more
appropriate for use in service organi&ations. (hese include warehouse9storage
layouts, retail layouts, and office layouts.
With warehouse9storage layouts, order fre'uency is a key factor. Items that are
ordered fre'uently should be placed close together near the entrance of the facility,
while those ordered less fre'uently remain in the rear of the facility. %areto
analysis is an e"cellent method for determining which items to place near the
entrance. +ince :; percent of the items typically represent
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(here also is movement toward the use of #!shaped lines, which allow workers,
material handlers, and supervisors to see the entire line easily and travel efficiently
between workstations. +o that the view is not obstructed, fewer walls and partitions
are incorporated into the layout. inally, thanks to lean manufacturing and just!in!
time production, less space is needed for inventory storage throughout the layout.
EXAMPLE OF A DUMESIC PROCESS LAYOUT
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EXAMPLE OF A PLANT LAYOUT
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