Unit - IIOperations Management : Principles and Types

of Plant Layout-Methods of production (Job, batch

and Mass Production), Work Study -Basic

procedure involved in Method Study and Work

Measurement

Plant location is the strategic decision. Several factors

influence this decision.

The main objective of business is optimise the costs and

revenues. i.e minimist cost and maximise the revenue.

Factors effecting Plant LocationCloseness to raw materials

Nearness to the markets

Fuel and Power

Transpotation

Availability of Labour

Economies

Government Influence

Political Interference

Plant Layout can be defined as theprocess of determining

a spatial location for a collection ofphysical production

facilities suitable to manufacturing a product.

It is concerning with arranging

The manufacturing and servicing departments in the

factory site

The machinery within these departments

The layout of individual work place

Definitions:

According to Riggs,

“The overall objective of plant layout is to design a physical

arrangement that most economically meets the required

output – quantity and quality.”

According to J. L. Zundi,

“Plant layout ideally involves allocation of space and

arrangement of equipment in such a manner that overall

operating costs are minimized.

Waste movements should be minimised

Work area should be flexible for flow of rawmaterial

Working conditions in the plant should ensure adequate safety

& healthy

Flexible for future changes

Consider space available

Cost shoule be reduced

Role of Plant LayoutIt effects both productivity and profitability

The cost of product/ supply/ demand ratio are directly

effected

Effective plant layout shoule minimise material handling cost

Material handling cost will be high

Production time is lost

Production cost gets highup

Working conditions cannot be any more safe

Returns may be low

Product Layout

Process Layout

Fixed layout

Combined Layout

Advantages:

Faster & Cheaper Production

Lower Cost of Material Handling

Effecgtive Utilisation of floor

space

Easy monitoring

Team Work benefits

Disadvantages:

Discountinuity in production

Monitoring is difficult

Huge capital investment

Little flexibility

Combination layout combines the the advantages of

product layout and process layout

In this the machines are arranged in the process

layout formate and but process grouping arranged in a

sequence

The rate at which the goods and services are produced.

It shows the relationship between the inputs and the output.

It is calculated as a ration between the amount produced and the

amount of resource used in the course of production

Productivity = output/input

Productivity is also called the efficiency of inputs

Job production

Batch Production

Mass Production

Benefits :It directly leads to standardisation of the job process

It determines the cost of the work performed

It save and minimises time since the unnecessary

movements are eliminataed

It enhances productivity of the workers and mahcines

It helps to evaluatae the pereformance of the employee or

deparatment as against hard targets

It enables the workers to earn incentives

It contributes to cost savings

It enahces the employee morale

Line organisation structure

Functional organisation structure

Line and Staff Organisation structure

Committee Organisation structure

Matrix organisation Structure

Virtual organisation structure

Cellular organsiation structure

Team organsiation structure

Boundary less organsiation structure

Inverted pyramid organsiation structure

Lean & Flat organsiation structure

Characteristics:Line authority and instructions are vertical, that is, they flow

from the top to the bottom.The unity of command is maintained in a straight line.All persons at the same level of organisation are independent of

each other.This structure specifies responsibility and authority for all the

positions limiting the area of action.

Merits:SimplicityDisciplinePrompt DecisionsOrderly CommunicationEasy Supervision & Economical

Demerits:Lack of SpecialisationAbsence of Conceptual ThinkingAutocratic ApproachProblems of coordination

Suitability:-It is suitable to small – scale organizations where the number of subordinates is quite small.