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LOGO
PRODUCTION
MANAGEMENT - III
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FACILITY LAYOUT
planning of the location of all machines,
utilities, employee workstations etc and flowof patterns of materials and people around,
into & within buildings
Location requirements for production process
outlined
One of the important Operations Strategy
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TYPES OF FACILITY LAYOUT
1. Process Lay outs
1. Product Layouts
1. Fixed Position Layouts
1. Cellular Manufacturing Layouts
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PROCESS LAYOUTS
if a manufacturing facility produces a
variety of custom products in relatively smallbatches, the facility probably will use a processlayout
Machines arranged based on operation.
Eg : All painting machines in one department
Workers should be highly skilled.
High variety, Less Volume.
Products stay in the production system for alonger period of time.
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PRODUCT LAYOUTS
also called as production line or assembly
line are designed to accommodate only a fewproduct designs
Direct material flow through the facilityMachines specailised to perform a specific
operation
Less Variety, High VolumeChanging to new product will cost much
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FIXED POSITION LAYOUTS
a layout for arranging work that
locates the product in a fixed position andtransports workers, materials & machines toand from the product
Eg : Buiding ships, Large Aircrafts, BridgeConstruction
Used for Bulky, Large & Heavy Products
Minimises the amount of product movement
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CELLULAR MANUFACTURING LAYOUTS
machines are grouped into cells,
and the cells function somewhat like aproduct layout island within a larger jobshop or process layout
Each cell in CM Layout produce a part family
Similar to a product layout
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FACILITY LOCATION
is a study of various alternate
locations before choosing the best site for itsoperation
Location Decision is easy when one Location isclearly superior to the other.
Always there will be various locations with their ownstrength and weaknesses
Mostly therell be a trade-off(giving up one for
another)
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FACTORS AFFECTING LOC. DEC.
International or Domestic
Now an important factor
Regional Decision
Eg : Southern, Eastern
Community Decision
Taxes, attitudes, availability, Cost of site
Site Selection
Size & Cost, Transportation, related industries
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FACTORS AFFECTING LOC. DEC.
International or Domestic
Political Stability
Export & Import
Currency & Exchange Rates Culture & Economics
Natural Environment
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FACTORS AFFECTING LOC. DEC.
Regional Decision
Raw Materials
Power
Transport Facilities
Climate conditions
Government Policy
Competition
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FACTORS AFFECTING LOC. DEC.
Community Decision
Labor Availability
Amenities for Workers
Complementary and Competing Industries Finance & Research Facilities
Water & Fire Fighting Facilities
Local Taxes
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FACTORS AFFECTING LOC. DEC.
Site Selection
Soil
Size
Cost
Topography The configuration of a surface and the relations among its
man-made and natural features
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LOCATION CONSIDERATION
Steps in Location Consideration for Service /
Retail Sector1. Customer Behavior Research
2. Unique Selling Point (USP)
3. Attracts Customers?
1. Market Research
2. Target Market
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3. Data About Location
How far is the Target Market
Traffic of Customers
Spending patterns
Projected Growth & Competition
4. Revenue Projection
Expected Revenue
5. Profit Projection
Projected Profit
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KIRUBA DANIEL. JLecturer, MBA dept.,
Sri Venkateswara Institute ofInformation
Technology & Management,
Ettimadai, [email protected]
mailto:[email protected]:[email protected] -
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LOGO
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