Week - 5 LAQ - Operations Management

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What are the different types of plant layouts, Explain each in detail with the

classic example of the different industries' utilization according to their


requirements.
Types of Plant Layout:

1. Product layout or line processing layout or flow-line layout


2. Process layout or functional layout or job shop layout
3. Fixed position layout or static layout
4. Cellular manufacturing (CM) layout or Group Technology layout
5. Combination layout or Hybrid layout or Mixed layout
6. Service Facility Layout

Product Layout:

• It involves the arrangement of machines in one line depending on the sequence of operations.
• The material is fed into the first machine and finished products come out of the last machine.
e.g., Sugarcane to sugar, Bamboo to paper, plastic to plastic smart cards production
• Emphasis is on special purpose machines so high investment is needed.

Advantages of a good, well planned, and designed Layout:

1. Labor costs

• Increase in productivity with more units being produced per man hour.
• Reduction in the number of workers.
• Minimal movement between operations.

2. Production control

• Increased production rate.


• Provision of convenient and adequate storage points.
• Improved ability of forecasting manufacturing time and delivery.

3. Supervision

• Lesser requirement of supervision.


• Reduction in time spent on inspection.
• Reduction in cost of inspection.

4. Other manufacturing costs

• Reduced consumption of power.


• Minimization of scrap and defective products.
• Better quality due to reduced handling.
• Reduced costs of maintenance.
• Improved utilization of materials.
5. Workers

• Reduction in the number of those handling production related paraphernalia.


• Reduced effort, stress and strain.
• Better safety and less chance of accidents.
• Improved productivity leading to higher wages.
• Increased morale and motivation.
• Improved health and welfare.

Process Layout:

Involves the arrangement of similar machines in a group in one department/one area according to the
functions performed in the department e.g., welding machines.

Advantages of a Good Process Layout:

1. Reduced investment in machines if they are general purpose machines.


2. Flexibility in production
3. Better and more efficient supervision is possible through specialization.
4. Better utilization of men and machines
5. Full and efficient utilization of equipment

Disadvantages a Bad Process Layout:

1. Difficulty in the movement of materials


2. If more floor space is needed
3. Difficulty in production control
4. More production time.

Fixed position layout:

• Major components remain in a fixed location.


• The movement of men and machines to the product is advisable because the cost of moving
them would be less than the cost of moving the product which is very bulky.
• For example, construction of buildings or bridges, shipbuilding etc.

Cellular Manufacturing (CM) Layout:

Machines are grouped into cells, and each group makes a family of parts which require similar operation
and service. It lies in between process layout and line layout.

Importance of Cellular Plant Layout:

1. Economies in Handling
2. Effective use of available area
3. Minimization of production delays
4. Improved quality control
5. Better production control
6. Better supervision
7. Improved utilization of labor
8. Improved employee morale

Why Layout problems exist.

• Enlargement or contraction of existing departments


• Movement of a department due to changes in the design of the product.
• Addition of a/some new department(s)
• Replacement or addition of a facility/machinery.

1. Nature of the product: The nature of the product to be manufactured has a significant influence on
plant layout. Small and light products can be moved from one machine to another with minimum effort
and time and therefore line layout would be more suitable. Stationary layout would be suitable for heavy
and bulky products. In case of production of large variety of non-standardized products, process layout is
ideal.

2. Production volume: Line layout should be preferred if standardized commodities are manufactured on
a large scale. Functional layout is suitable if production is based on customers’ orders. It is better suited
for low volume job production.

3. Location of the site: The topology and size of the site influences the choice of a particular layout. The
idea is to maximize the utilization of space. Layout should also suit the factory building. The positioning of
elevators, stairways, parking lots and storage points also influence the layout.

4. Type of machines: Stationary layout is preferable if machines are heavy and emit more noise. Such
heavy machinery can be fitted on the floor. Adequate space should be provided for the location of
machines and there should be sufficient space between them to avoid accidents.

5. Climate: Temperature, illumination, ventilation should be considered while deciding on the type of
layout. These factors should be considered to improve the health and welfare of employees.

6. Service facilities: The layout should provide for the comforts and welfare of the employees. It should
have adequate provision for rest rooms, drinking water, lavatory. There should be sufficient space for free
movement of workers.

7. Safety of employees: While deciding on a particular type of layout, the safety of employees should be
given importance. The layout should provide for obstruction free floors, non-slippery floors, protection
against dangerous fumes, excess heat, strong odors etc.

8. Type of production: Layout plans differ according to the type of production. In case of job orders,
production of non-standardized products is undertaken, and therefore functional or process outlet is
suitable. Line layout would be suitable when there is mass production of standardized goods.
9. Type of process: In the case of intermittent type of production (bi-cycle manufacturing, electronics),
functional layout is suitable. For synthetic type of Production (cement and automobile industries), line
layout is preferable.

10. Management policies: Policies of the management relating to type of product, quality, scale of
production, level of plant integration, type of production, possibility of future expansion etc., influence
the type of layout to be adopted.

Characteristics of an Efficient Layout

The designing of a plant layout should be such that it should maximize the return and minimize the cost
of production.

The following are the characteristics of a plant layout:

1. Smooth flow of production

Plant layout should be in such a way that there must be a smooth flow of production. Raw materials and
workers must have access to each machine without any difficulty and delay.

2. Maximum utilization of available space

An efficient plant layout must be such that may utilize the maximum of the space available.

3. Facilitating the movement of men, materials, and machines, etc.

There must be sufficient space left in between different machines so that raw materials, workers, and
machines move very easily from one place to another, without the fear of accident.

4. Involves minimum handling

The various machines in a good layout must be arranged in such a manner that the product of one
operation may pass on to the next operation with a minimum of handling. It will reduce wastage of raw
materials and labor hours.

5. Provides better working conditions

A good plant layout must have facilities such as water, ventilation, retiring room, etc., in the plant. It
should also safeguard the health of the workers.

6. Flexibility

A good layout must be flexible enough to incorporate any change in the management policies. It must be
capable of incorporating, without major change, new equipment to meet technological changes and or
progress, or increased production requirements or to eliminate waste.

7. Location of stores
The stores/storage in a plant must be in such a place from where raw materials, tools, equipment, and
other materials may be supplied to the departments concerned easily, without any delay.

8. Facilitates supervision and control

The position of workers must be arranged in such a way that it facilitates supervision, coordination, and
control.

9. Provision of safety

There must be complete safety for workers engaged on a machine(s). Necessary instructions must be
given to them about the risks involved while working on certain types of machines. The Provisions of
Factories Act must be always followed.

10. Co-ordination and integration

If the plant layout is efficient enough, it is possible to achieve maximum with coordination and integration
among men, machines, and materials.

A decision to manufacture some new or modified products may necessitate a reorganization of the
existing plant or provision of additional facilities. The reasons for change are due to variation in the level
of demand, change in the location of product markets, change in style and obsolescence or failure of
existing equipment.

Thus, development of a proper layout for a plant calls for careful planning. Such planning involves
considerations of the technical aspects of the machinery and equipment and processes of manufacture,
etc. Company related Management executives can benefit considerably by involving a highly qualified
engineer(s) and or maybe management consultants while designing a plant layout. In this way, plant
layout is a joint product of both the disciplines, namely, engineering and management.

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