OM PPT-3 (Layout)

8/7/2019 OM PPT-3 (Layout)

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LAYOUT


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` Economies in handling

` Effective use of available area

` Minimization of production delays

`

Improved quality control` Minimum equipment investment

` Avoidance of bottlenecks

` Better production control

`

Better supervision` Improved utilization of labor

` Improved employee moral


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PRODUCT LAYOUT PROCESS LAYOUT

Description Sequential arrangement

of activities

Functional grouping of

activities

Product Standardized, Made to

stock products

Varied products, Made

to order

Demand Stable Fluctuating

Volume High Low

Equipment Special Purpose General Purpose

Workers Limited Skills Varied Skills

Inventory Low-In Process

High- Finished Goods

High-In Process

Low- Finished Goods


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Storage Space Small Large

Material Handling Fixed Path Variable path

Advantage Efficiency Flexibility

Wage Rate Low High

Ease in Work No bottlenecks Wasteful Backtracking

Inspection Less inspection Requires more

inspection

Machines More automatedmachines used

Less use


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` It is a straight line layout

` It is also called Assembly line Layout or ContinuousProduction System

` The flow of manufacturing is streamlined

` In this system the product passes through all the machines in asequence

` It is single product oriented appropriate for standardizedproduct and for large volume-less variety production

` Raw materials are also standardized

` Products are made for anticipated demand rather than for

orders` E.g. Bottling of beverages, car manufacture, cafeteria, Fast

food restaurants, chocolate manufacturing, electronic products,sugar, customer served in a queue, television sets, pencils, andcomputers, automatic carwash.


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ROTARY MOULDER

COOLING CONVEYOR


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MANUFACTURING PROCESS FOR BISCUITS

RAW MATERIAL

TESTING

MIXING MOULDING

BAKING

COOLING

PACKING


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` Washing process

` Grading of oranges

` Juice extractors


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MASS PRODUCTION SYSTEM It is also called Discreet Unit Manufacturing It combines several raw materials to produce the end

product PROCESS MANUFACTURING

It is an extended form of Mass ProductionOnly one raw material is processed to get the end

product i.e. finished product of one process is used asraw material in next process

` very high volume of non discrete, highly standardized

output is desired` No variety in outputE.g. Petroleum refining, heavy chemical industries,

steel, sugar, flour, and salt


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Advantages:(1) Low total flow time of the product from the input stage to the

output stage (i.e. higher rates of output/productivity) due to:(a) Continuous flow without intermediate stoppages and

storages;(b) Repetitive, small, fragmented jobs learnt to perfection bythe concerned workers; and(c) Minimum set-up times of machines.

(2) Lesser inspection required

(3) Lower degrees of skills in the manpower(4) Lower work-in-process inventories

(5) Production promptly

(6) No bottlenecks in production


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Disadvantages:

(1) None or very little variety possible.(2) Inflexibility

(3) Entire line or significant portions of the line may come to a

grinding halt if any equipment in the line breaks down,

resulting in high stoppage costs.

(4) Larger maintenance crew needed.(5) Very low job variety and therefore lower job satisfaction and

higher boredom for the workers.

(6) More coordination required by supervisors.

(7)D

uplication of machines and equipments may be necessaryresulting in higher capital investment.

(8) More space may be required.

(9) Additional output not possible


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` It is also called Functional Layout or Intermittent Production

system` Production is done for customers orders rather than forecasted

demand i.e. customized products are produced

` Components are made for inventory and combined for different

customers differently` The machines and equipments of similar types are grouped

together and placed in one area

` Product here is given secondary consideration and process has

dominance

` Sequence of production process is as per requirement of each

individual product i.e. no single sequence of operations follow

` This layout can produce different variety of products in

relatively small batches

` E.g. Airplanes, Medicines, Hospitals, Banks, Fashion House


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Process focused layout :

Hospital

A

Radiology

B

Laboratory

C

Lobby &Waiting

DExamining

Rooms

ESurgery &Recovery

FPhysicalTherapy


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JOB PRODUCTION

Production is according to customers orders

Very rarely the orders are similar

E.g. Tailor-made clothes, Airplanes, Restaurant food

BATCH PRODUCTION

It is an extension of Job production

It has medium scale production

Items are produced in Batches

` E.g. Medicines, Cosmetics, Bakeries which make bread,

cakes, or cookies in batches, Movie theaters, which show

movies to groups (batches) of people,


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Advantages:

(1) Very high degree of variety in products is possible.(2) Greater flexibility(3) Machine breakdowns do not cause crippling production

stoppages.(4) Requires small maintenance crew.(5) Good level of variety, skills requirement and thereforehigher job satisfaction.(6) Effective supervision

(7)Low capital investment(8) Easy expansion


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Disadvantages:

(1) Production planning and control is more complex

(2) Frequency of inspection

(3) Larger processing time

(4) Higher work-in-process inventories(5) More handling of materials

(6) Wasteful backtracking


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It includes both the advantages of process & productlayouts

Machines are placed in a group

Each machine cluster or cell makes a family of parts

or components which needs near identical processingAdvantages:

1. Reduced material-handling costs

2. Quick manufacturing

3. Reduced In-Process inventory4. More automated production

Disadvantages:

1. Lower manufacturing facility


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` It is generally employed in large project types of

organizations

` Product manufactured is very bulky and hard to move

` Production remains stationery

` Men, machine, materials are brought to construction site

` E.g. Ships, Airplanes, buildings construction

Advantages:

` Less investment in layout

` Avoidance in transportation of bulky materials

HYBRID LAYOUT

` It is a combination of several layouts


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Manufacturing Cost

Highest 1) Job Production

2) Batch Production

3) Mass Production

Lowest 4) Process Production Size & Capital Investment

Highest 1) Process Production

2) Mass Production

3) Batch Production

Lowest 4) Job Production


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Variety

Highest 1) Job Production2) Batch Production

3) Mass Production

Lowest 4) Process Production

Technical AbilityHighest 1) Job Production

2) Batch Production

3) Process Production

Lowest 4) Mass Production

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OM PPT-3 (Layout)

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