1.

TYPES OF PLANT LAYOUTS

There are four basic layout types: process, product, hybrid, and fixed position. In this
section we look at the basic characteristics of each of these types.

Process Layout
Process layouts are layouts that group resources based on similar processes or
functions. This type of layout is seen in companies with intermittent processing
systems.

The challenge in process layouts is The arrangement of equipment and machines in an

industrial unit is done sometimes on a single line which depends on the sequence or
order of operations necessary for the product. Also, the movement of different
materials i.e. raw material, semi-finished goods between workstations is in a sequence
and no deviation is there in this movement.

There is a fast movement of raw material between different workstations and the
storage of raw-material in work-in-progress is the minimum. Below are the general
principles based on which, the grouping of machines is considered:

As per the requirement of the sequence of operations, all the machinery or other
related equipment must be placed.

One line should not cross another one at any point. In other words, no point should
be there where lines cross each other.

The material as an input can be used wherever needed for assembly and it is not
necessary at a single or particular point.

A line must include all the operational activities such as testing, assembly, packing,
etc.

This layout considers different services, machines, and processes as a part of a group
that is formed according to their function. This layout is also termed as functional
layout occasionally because this includes the characteristic of batch production and job
shops. Usually, machines of general purposes that are rapidly changeable to new
operations are used in the process layout.

For example, in the service and repair center of two-wheeler or four-wheeler, different
departments or functions may be there. The arrangement of these functions or
departments is according to the technical or space needs such as total working staff,
machines that are installed, the average number of total vehicles that the center
receives, and any other needs.

Below are a few steps that any vehicle has to follow while entering the center:

Reaching office.

Informing the concerned staff about the problem type by the customer.

The front office staff directs the customer to take the vehicle to the concerned
departments.

The necessary service is given to the vehicle.

Customers are further guided to make payment at the front office.

After making the payment, the customer leaves the service center.

Merits of Process Layout

Different merits or benefits of process layout are as under:

Low Investment in Equipment and Machines

In the process layout, there are no sets of operation sequence, through which the
equipment and machines are passed. So, in this layout, products of different verities in
the defined standards can be developed, and also, no duplication of machines is
required in such a process. Therefore, less amount of capital is sufficient because the
maximum capacity of machines is utilized.

2. Fewer Costs related to Overheads

The risk of investments is minimized due to the low investment of capital at the initial
stage. Also, this layout doesn’t consist of duplication of machines. Moreover, different
machines can be operated and controlled by one operator due to the similarity of
operations. So, per unit overhead cost will be lesser.

3. Maximum Utilization of Machines

The utilization of machines is possible up to a maximum extent as a machine is not

connected to any specific product in a layout through the process.

4. More Flexibility
In the process layout, a lot of similar types of operations can be performed by a single
machine. So, in case of a machine breakdown, another machine in the same
department can perform the same operation or even a similar machine lies in another
department can do the same function. So, flexibility in processing production
operations is more in this layout.

5. Processing Time

The time period to complete a job will be more in the production process as each job
will flow between different departments in the process layout. Once the work is
collected from the previous department, then it takes a huge time on machine loading .

2. Product Layout
Product layout or line layout is concerned with locating machines and other auxiliary
services as per the product’s processing sequence. Its main focus is on the sequence of
operations related to production or assembly which is required for a product or any of
its part’s assembling or manufacturing.

In product layout, if there is a large production volume of one or more than one
product, then facilities can be aligned for achieving the flow of materials efficiently and
lower cost/unit. For this, machines for a special purpose (specialized machines) are
utilized to perform the desired tasks in a fast and reliable way.

Unlike process layout, this layout is not flexible because this is specifically meant for
developing or assembling a single product.

This type of layout can be seen in flow shops where there is a repetition of assembly.
Repetitive and highly standardized processes are required in flow shops to develop
more standardized products in high volume. The arrangement of resources in the
product layout is in a particular sequence as per the routing schedule of the products.
Through this sequential layout, the whole process is arranged in a straight line.

Merits of Product Layout

Smooth Production Flow
The whole process of production is integrated into the product layout. So, there
is no possibility of any blockage of production in various production stages.
Thus, this layout ensures the smooth flow of production.

Smooth Production Flow

In Product Layout, the arrangement of machines is according to the sequence
 of operations, so, backward and forward movement is not there. This results in
minimizing material handling costs and time.

Lower Work-in-progress
In Product layout there is a continuous and hassle-free production process, so,
the work-in-progress is also less. The requirement of both investment and
storage space is also less for work-in-process.

Control Over Production

The product layout facilitates production control due to the continuous
production process. Planning operations can be easy for the management and
they may take measures to finish the operation work as per the plans.

Time-Saving
The product layout helps in minimizing the time used for transporting
materials because materials can be transported using different
automated equipment like conveyor belts. This supports saving a sufficient
amount of time.

Demerits of Product Layout

Rigid System

Costly Layout

3. Fixed Position Layout

This type of layout allows a product to maintain at a certain place and the required
resources such as machinery, equipment, manpower, material, etc. are transported to
the product’s location.

In other words, the location of the main element or part of the product remains fixed
due to its bigger size or heavy body. Also, the cost of shifting or transportation costs
will be lesser in the case of moving resources as compared to the transportation cost
involved in the movement of the product.

So, it is more convenient to shift the required tools, staff, equipment, and materials at
the location where the product is assembled rather than shifting the product.

Merits of Fixed Position Layout

Facilitates job enlargement and enhances the skills of workers

The investment of capital in the layout is low

 Offers greater flexibility

Demerits of Fixed Position Layout

Cost of Equipment
In the fixed position layout, the product remains at a single place and different
tools, machinery, and equipment are required to move at the location of the
product.

Work Schedule of Workers

A plant, which has implemented a factory position layout, needs to plan the
work schedule for workers in a careful manner so that each one of them is
allotted the required time to work on the particular stage of the production
process. In case of the non-availability of a worker or the position of the non-
working capacity of the worker, then it may slow the speed of other stages of
the process.

Need-based Order of Material

One of the disadvantages of using a fixed-position layout is that equipment and
materials must be transported at the time when these are required. Wherein,
equipment and materials can be warehoused and kept in the desired workplace
till they are required for the next stage of the manufacturing process.

Limited Workspace
There can be a limit on workspace due to the number of workers required in
different manufacturing phases.

4. Group Technology or Cellular Layout

Group technology or Cellular layout is considered a technique through which it is

feasible to identify and group similar or related parts involved in the process of
production; for the purpose of utilizing the inherent economy of methods of the flow
production.

In other words, group technology layout or cellular manufacturing layout is the type of
layout in which different machines can be grouped as per the process requirements for
a similar set of items or families of similar parts that require a similar kind of
processing.

In this type of layout, cells are formed by grouping different processes. This process
includes the identification of parts having similar characteristics in terms of their
design i.e. size, function, and shape. And also, characteristics of a similar process i.e.
required processing type, type of machinery to perform such process, and the
sequence of processing.

Merits of Group Technology or Cellular Layout

Reduced Cost
his layout offers different benefits such as less time in material handling, faster
processing time, less set-up time, less inventory in work-in-process. This helps
in cost reduction.

Increases Flexibility
Group layout or cellular layout permits for producing small batches that offer
an increase in flexibility up to some extent.

Enhances Motivation
In this layout, different workers are provided cross-training to handle all
machines in their cell, this helps in boosting their motivation as there is less
scope of boredom. This also enhances ownership of jobs and autonomy
because workers are liable for the output of their cells.

5. Hybrid layout

Combined layout types are used by most of the manufacturing units. For instance,
both process and product layout can be part of the manufacturing process. Such types
of combined layouts are termed as hybrid layouts.

2. PERT VS CPM IN PROJECT MANAGEMENT

PERT (Program Evaluation and Review Technique) and CPM (Critical Path Method) are
both project management techniques used to plan and schedule activities in a project.
However, there are certain circumstances where PERT is more suitable than CPM:

1. Uncertainty: PERT is best used in projects that involve a high level of uncertainty,
where the duration of activities cannot be accurately estimated. PERT allows for the
inclusion of probabilistic estimates to account for uncertainty and provides a range of
possible project completion dates.

2. Complex projects: PERT is useful in managing complex projects with multiple parallel
paths and interdependent activities. It allows for the identification of critical activities
and paths, as well as non-critical activities and paths, which can help in optimizing
project scheduling.
3. Research and development projects: PERT is commonly used in projects involving
research and development, where the specific tasks and their durations may not be
known in advance. PERT allows for flexibility in planning and adapting to changing
circumstances during the project.

4. Time-focused projects: PERT is more suitable for projects where the emphasis is on
time rather than cost. It helps in determining the schedule that minimizes the overall
project duration by identifying the critical path and activities that have the most
impact on project timelines.

5. Large-scale projects: PERT is often used in managing large-scale projects that require
a detailed analysis of activities, resources, and dependencies. It allows for the
identification of potential bottlenecks and helps in allocating resources efficiently.

It's important to note that PERT and CPM can also be used together in some cases,
with PERT providing a range of estimates for activity durations and CPM determining
the critical path and project schedule based on those estimates. The choice between
PERT and CPM depends on the specific characteristics and requirements of the project.

3. The firm has to take into consideration both the technology of

production and the social aspects of the work environment.” Comment
on the statement.
The statement highlights the importance for firms to consider both the technology of
production and the social aspects of the work environment.

Firstly, the technology of production is crucial for firms to remain competitive and
efficient. Advancements in technology can enhance productivity, streamline processes,
and reduce costs. Firms need to constantly assess their production technology to stay
up-to-date and maintain a competitive edge. This may involve investing in new
machinery, automation, or digital tools to optimize operations. Ignoring technological
advancements may lead to inefficiencies and a loss of market share.

On the other hand, the social aspects of the work environment are equally important.
Firms need to create a positive and conducive work environment for their employees.
This involves factors such as employee well-being, work-life balance, diversity and
inclusion, and opportunities for professional growth. Neglecting the social aspects can
result in low employee morale, high turnover rates, and decreased productivity.
Additionally, a positive work environment fosters collaboration, creativity, and
innovation, which are essential for a firm's long-term success.
Therefore, to thrive in today's business landscape, firms should strike a balance
between technology and social aspects. They need to invest in modern production
technology while also creating a supportive and inclusive work environment. This can
be achieved by regularly assessing and upgrading production technology, while
concurrently implementing policies and practices that prioritize employee well-being,
diversity, and growth opportunities. By considering both aspects, firms can achieve
greater productivity, innovation, and overall success.

4. What are the different types of audit, involved in TQM? Discuss

them with examples.
In Total Quality Management (TQM), audits play a crucial role in evaluating and
assessing the effectiveness of quality management systems. There are several types of
audits that are commonly used in TQM. These include:

1. Internal Audit: An internal audit is conducted by an organization's own employees or

a designated internal audit team to examine the company's adherence to its quality
management system and processes. It focuses on identifying areas for improvement,
non-compliance, and potential risks. For example, an internal audit of a manufacturing
company may review production processes, employee training, and quality control
measures to ensure compliance with TQM principles.

2. External Audit: An external audit is conducted by an independent third party, such

as a certification body or regulatory agency, to assess an organization's compliance
with quality standards or regulations. It provides an unbiased evaluation of the
company's quality management system and processes. For instance, an external audit
may be carried out to assess a company's adherence to ISO 9001 quality management
standards.

3. Supplier Audit: A supplier audit is conducted to evaluate the compliance of a

supplier's products or services with quality standards. It ensures that suppliers meet
the required quality criteria and can assist in the selection and monitoring of suppliers.
For example, a company in the automobile industry may conduct supplier audits to
assess the quality of parts or components provided by external suppliers.

4. Process Audit: A process audit focuses on evaluating individual processes within an

organization to identify strengths, weaknesses, and areas for improvement. It
examines the effectiveness and efficiency of processes in achieving quality objectives.
For instance, a process audit may be conducted on the order fulfillment process of an
e-commerce company to identify bottlenecks, reduce errors, and enhance customer
satisfaction.
5. Product Audit: A product audit is conducted to assess the quality and conformity of
a specific product against defined standards and specifications. It examines the entire
product lifecycle, from design to delivery and customer feedback. For example, a
product audit may involve reviewing the manufacturing process, quality control
measures, and customer feedback for a specific electronic device.

These different types of audits in TQM help organizations in assessing and improving
their quality management systems, identifying areas for enhancement, and ensuring
adherence to quality standards and regulations. They contribute to the continuous
improvement process within TQM by providing objective evaluations and feedback
that can lead to enhanced customer satisfaction and business performance.

5. Write short notes the followings :

(a) Economic Order Quantity (EOQ)

Economic order quantity (EOQ) is the ideal quantity of units a company should
purchase to meet demand while minimizing inventory costs such as holding costs,
shortage costs, and order costs.

(b) Bill of Materials

is a comprehensive list of parts, items, assemblies, subassemblies, intermediate

assemblies, documents, drawings, and other materials required to create a product.

(c) Cellular Layout

is considered a technique through which it is feasible to identify and group similar or

related parts involved in the process of production.

(d) Operating Characteristic (OC) Curve

The OC curve is a means of quantifying the producer’s and consumer’s risk. The OC
curve for an attribute plan is a graph of the percent defective in a lot versus the
probability that the sampling plan will accept the lot. The probability must be stated
for all values of “P” (percent defective) since “P” is unknown. An assumption is made
that an infinite number of lots will be produced.

(e) Job Enlargement

is adding additional activities within the same level to an existing role. This means that
a person will do more, different activities in their current job.

(f) Flexibility in Manufacturing

the ability to deal with slightly or greatly mixed parts, to allow variation in parts
assembly and variations in process sequence, change the production volume and
change the design of certain product being manufactured.

INTRODUCING OUR COMPANY

The company I will be discussing is a leading import company that specializes in cars
and motors. They have built a strong reputation in the industry for their wide range of
high-quality products and exceptional customer service.

In terms of their product offerings, the company imports a diverse selection of cars and
motors from various well-known manufacturers across the state. This includes both
new and used vehicles, providing customers with a range of choices to suit their needs
and preferences. The company ensures that all imported cars and motors undergo
comprehensive inspections and meet the necessary regulatory requirements before
being made available for sale.

In addition to their product range, the company also provides various services to
enhance the customer experience. This includes assistance with financing options,
insurance coverage, and after-sales support such as maintenance and repairs. They
have a team of highly skilled technicians who are dedicated to ensuring the long-term
performance and reliability of the imported vehicles.

The company is located in a strategically chosen area in addis Ababa and

surroundingareas, ideally positioned to cater to a wide customer base. Their
showroom and service center are conveniently situated, allowing easy access for
customers who wish to explore their product range or avail themselves of their
services.

As for the company's history, it was founded 10 years ago by a group of automotive
enthusiasts who recognized the demand for imported cars and motors in the local
market. With their passion for automobiles and their commitment to delivering
exceptional products and services, they successfully grew the business into one of the
leading import companies in the region. Over the years, the company has earned the
trust and loyalty of countless customers who continue to rely on them for their
automotive needs.

Product and the process of import

a. The opportunity for import cars and motors products stems from the demand for
high-quality vehicles and engines that may not be readily available in the domestic
market. This could be due to factors such as technological advancements, unique
features, performance capabilities, or simply the reputation and brand recognition
associated with certain imported vehicles and motors. Additionally, there may be a
niche market that is specifically interested in import cars and motors, creating an
opportunity to cater to their preferences.

b. In the case of import cars and motors, the products are typically bought rather than
made by the company selling them. This is because importing vehicles and motors
involves complex manufacturing processes and extensive resources that are beyond
the scope of most individual companies. Instead, companies in this industry focus on
sourcing, distribution, and retailing of these products. They establish relationships with
manufacturers, dealerships, or distributors from overseas to procure the products and
bring them to the local market.

c. Several design issues come into play when dealing with import cars and motors
products.

Environmental issues: Increasing concerns about environmental impact demand the

inclusion of fuel-efficient engines, alternative fuel options, and emission control
systems. The design should prioritize reducing carbon footprint and meeting relevant
regulatory standards.

Robust design: Ensuring the products can withstand different driving conditions,
varying climates, and long-term wear and tear is crucial. Robust design considerations
include quality materials, reliable components, and effective durability testing to
enhance product longevity and customer satisfaction.

Value analysis: The product's design should focus on delivering value to customers by
balancing features, quality, and price. Understanding customer preferences and
market trends can help identify the most desirable features to incorporate while
optimizing cost-efficiency.

Modular design: Modular design can improve the flexibility and ease of manufacturing,
assembly, and maintenance. This approach allows for streamlined production
processes, quicker repairs, and component interchangeability.

Manufacturability: Design decisions should facilitate efficient and cost-effective

manufacturing processes. This may involve considering factors such as production
scalability, automation potential, supply chain integration, and ease of assembly.

Overall, the design of import cars and motors products needs to strike a balance
between meeting customer demands, adhering to environmental regulations, and
ensuring manufacturability, durability, and value for money.

Name ID

Eyoel dereje UU90779R

Sintayew gizachew UU90424R

Amanuel sebsibie UU90400R

Besufikad adane