types of layouts

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© Copyright 2013 Anupam Kumar 1 Types of Layout: Product Layout v/s Process Layout Presented By: Anupam Kumar Reader SMS Varanasi E mail: [email protected] 1 © Copyright 2013 Anupam Kumar Types of Plant Layout Layouts can be classified into the following categories: Process Layout Product Layout Combination Layout Fixed Position Layout Group Layout 2 © Copyright 2013 Anupam Kumar Process Layout In process layout: All machines performing similar type of operations are grouped together at one location. Production volume remains limited. The production happens in batches or lots. A large variety of products can be produced from the same plant. Backtracking and long movements reduces the material handling efficiency. Space and capital are tied up in WIP inventory. 3 © Copyright 2013 Anupam Kumar Process Layout Advantages: Machines are better utilized and fewer machines are required Flexibility of equipment & personnel is possible Lower initial investments Higher utilization of production facility Diversity of tasks makes the work challenging & interesting. Disadvantages: Material handling cannot be mechanized Process time is prolonged Lower productivity due to number of set-ups Throughput time is longer Space & capital is tied up by work in progress/ process. 4 © Copyright 2013 Anupam Kumar Product Layout The product layout is selected when the volume of production is high enough to justify a separate production line. In this type of layout, the machines and auxiliary services are located according to the processing sequence of the product. The facilities are arranged to ensure efficient flow of material and lower cost per unit. 5 © Copyright 2013 Anupam Kumar Product Layout Advantages: Reduced material handling activities. Work In Process almost eliminated. Minimum manufacturing time. Simplification of the production planning and control systems. Tasks simplification. Disadvantages: No flexibility in the production process. Low flexibility in the manufacturing times. High capital investment. Every workstation is critical to the process.- The lack of personnel or shut down of a machine stops the whole process. Monotonous work. 6 © Copyright 2013 Anupam Kumar

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These are class notes for PGDM second semester students.

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Page 1: Types of layouts

© Copyright 2013 Anupam Kumar 1

Types of Layout: Product Layout

v/s Process Layout

Presented By:

Anupam Kumar

Reader

SMS Varanasi

E mail: [email protected]

1© Copyright 2013 Anupam Kumar

Types of Plant Layout

• Layouts can be classified into the following

categories:

– Process Layout

– Product Layout

– Combination Layout

– Fixed Position Layout

– Group Layout

2© Copyright 2013 Anupam Kumar

Process Layout

• In process layout:

– All machines performing similar type of operations are grouped together at one location.

– Production volume remains limited.

– The production happens in batches or lots.

– A large variety of products can be produced from the same plant.

– Backtracking and long movements reduces the material handling efficiency.

– Space and capital are tied up in WIP inventory.

3© Copyright 2013 Anupam Kumar

Process Layout

• Advantages:

– Machines are better utilized and fewer machines are required

– Flexibility of equipment & personnel is possible

– Lower initial investments

– Higher utilization of production facility

– Diversity of tasks makes the work challenging & interesting.

• Disadvantages:

– Material handling cannot be mechanized

– Process time is prolonged

– Lower productivity due to number of set-ups

– Throughput time is longer

– Space & capital is tied up by work in progress/ process.

4© Copyright 2013 Anupam Kumar

Product Layout

• The product layout is selected when the

volume of production is high enough to justify

a separate production line.

• In this type of layout, the machines and

auxiliary services are located according to the

processing sequence of the product.

• The facilities are arranged to ensure efficient

flow of material and lower cost per unit.

5© Copyright 2013 Anupam Kumar

Product Layout

• Advantages:

– Reduced material handling activities.

– Work In Process almost eliminated.

– Minimum manufacturing time.

– Simplification of the production planning and control systems.

– Tasks simplification.

• Disadvantages:

– No flexibility in the production process.

– Low flexibility in the manufacturing times.

– High capital investment.

– Every workstation is critical to the process.-The lack of personnel or shut down of a machine stops the whole process.

– Monotonous work.

6© Copyright 2013 Anupam Kumar

Page 2: Types of layouts

© Copyright 2013 Anupam Kumar 2

Combination or Matrix Layout

• A combination layout combines the advantages of

both the process and product layouts.

• It is used when the same item is being manufactured

in different types or sizes.

• In this, the machines are arranged in the process

layout format but process grouping is arranged in a

sequence.

• The sequence of operation with each of the product

variety however remains the same.

7© Copyright 2013 Anupam Kumar

Combination or Matrix Layout

8© Copyright 2013 Anupam Kumar

Fixed Position Layout

• This type of layout is suitable when one or a few

identical heavy items are to be manufactured.

• The materials are kept fixed because the cost of

transportation of material is very high.

• In this type of layout,

– the material or the major component remain fixed and

– the tools, machinery, men and other materials move

around it.

• This type of layout is also called project type layout.

9© Copyright 2013 Anupam Kumar

Group Layout or Cellular Layout

• Group Layout is also a combination of Product and

Process Layout.

• It identifies the families of components that require

similar types of requirements and machines which

are clubbed together as cells.

• The cellular layout is also called a multi-objective

layout because this layout tries to minimize

– The sum of the cost of transportation

– The cost of equipment

10© Copyright 2013 Anupam Kumar

A cluster

or cell

Group Layout or Cellular Layout

Process (Functional) Layout Group (Cellular) Layout

Similar resources placed togetherResources to produce similar products

placed together

T T T

MM M T

M

SG CG CG

SG

D D D

D

T T T CG CG

T T T SG SG

M M D D D

M M D D D

11© Copyright 2013 Anupam Kumar

Layout Design

• ABC Electronics has a facility with six production areas.

• It proposes to locate 6 departments (A,B,C,D,E,F), which have the number of moves per day between departments as shown in the table below.

• What type of layout would be suitable for the facility?

• Develop a layout for the facility.

1 2 3

4 5 6

A B C D E F

A 5 10 3 2

B 12

C 10 4 8

D 16

E 7

F 812© Copyright 2013 Anupam Kumar

Page 3: Types of layouts

© Copyright 2013 Anupam Kumar 3

For further details…

Contact

Anupam Kumar

Reader

SMS Varanasi

E mail: [email protected]

13© Copyright 2013 Anupam Kumar

Bibliography

• Buffa, E.S. and Sarin, R.K., “Modern Production/Operations Management,” Eighth Edition. Singapore: John Wiley & Sons (Asia). 1994.

• Martinich, J.S., “Production and Operations Management: An Applied Approach”, Singapore: John Wiley & Sons (Asia), 2003.

• Badi, R.V. and Badi, N.V., “Production and Operations Management”, Second Edition, New Delhi: Vrinda Publication, 2008.

• Chary, S.N., “Productions and Operations Management,” Third Edition, New Delhi: Tata McGraw Hill, 2004

• Goel, B.S., “Production Operations Management”, Twenty Second Edition, Meerut, U.P.: PragatiPrakashan, 2010.

• Kachru, U. “Production and Operations Management: Text and Cases,” New Delhi: Excel Books, 2007.

• Rama Murthy, P., “Production and Operations Management,” New Delhi: New Age International, 2012.

• Chunawalla, S.A., and Patel, D.R., “Production and Operations Management,” Mumbai: Himalaya Publishing House, 2006.

• Jauhari, V. and Dutta, K., “Services: Marketing Operations and Management,” New Delhi: Oxford University Press, 2010.

• Verma, H.V., “Services Marketing: Text and Cases,” New Delhi: Dorling Kindersley, Pearson Education, 2009.

15© Copyright 2013 Anupam Kumar