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Operations Management in Business

This document discusses facility layout and types of layouts. It begins by defining facility layout as the physical location of departments within a facility based on considerations like walking distance and processing requirements. Inefficient layouts can increase costs and cause issues like bottlenecks. The main types of layouts discussed are process, product, and group technology layouts. Process layout arranges machines by production steps, product layout arranges them by specific products, and group technology layout groups similar machines. Other topics covered include factors influencing layout choice, objectives of efficient layouts, examples of different layouts, and principles of layout design.

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49 views29 pages

Operations Management in Business

This document discusses facility layout and types of layouts. It begins by defining facility layout as the physical location of departments within a facility based on considerations like walking distance and processing requirements. Inefficient layouts can increase costs and cause issues like bottlenecks. The main types of layouts discussed are process, product, and group technology layouts. Process layout arranges machines by production steps, product layout arranges them by specific products, and group technology layout groups similar machines. Other topics covered include factors influencing layout choice, objectives of efficient layouts, examples of different layouts, and principles of layout design.

Uploaded by

nileshdilushan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 29

HND in

Business Management
Operations Management in
Business

FACILITY
LAYOUT

CONTENTS
1) Introduction
2) Factors affecting Layout
3) Scope of Facility Layout
4) Types of Facility Layout

What is Facility Layout?


The layout facility is the physical
location of the various
departments/units of the facility within
the premises of the facility.
The departments may be located based
on the considerations such as:
Less walking distance
Logical sequence of the processing
requirements of the product

Importance of layout
Requires substantial investments of money and
effort
Involves long-term commitments
Has significant impact on cost and efficiency of
short-term operations

Inefficient operations
For Example:

High Cost
Bottlenecks
The introduction of new
products or services

Changes in the design


of products or services

Accidents
Safety hazards

The Need for Layout Design (Contd)


Changes in
environmental
or other legal
requirements

Changes in volume of
output or mix of
products
Morale problems

Changes in methods
and equipment

Factors affecting Layout


oMaterial
oProduct
oMachinery
oLabour
oLocation
oManagerial
Policies
oType of Industry

Scope of Facility Layout


Related to material
Less material handling and minimum
transportation cost
Less waiting time for in-process inventory .

Related
to work place

Safe working conditions from the point of ventilation,


lighting, etc.
Minimum movement of workers
Least chances of accidents, fire, etc.
Proper space for machines, worker, tools, etc.

Performance related objectives


Simpler plant maintenance

Increased productivity, better product quality,


and reduced cost
Least set-up cost and minimal change-over
Objective related to flexibility

Scope for future expansion

Types of Layouts
1) Process Layout
Suitable when product having standard
features is to be produced in large volumes.
The specialized machines and equipments
are arranged one after another in the order of
sequence required in the production process.
Conveyer

CAR
1

CAR
2

CAR
3

Principles
The distance between departments
should be as short as possible for
avoiding long distance movement of
materials.
The departments should be in
sequence of operations
The arrangements should be
convenient for inspection and
supervision.

Advantages of Process Layout:


Greater Flexibility
Better and more efficient supervision
possible through specialization
Capacity of different product line can be
expanded easily.
Better utilization of men and machine.
Overhead costs are relatively low

Disadvantages:
More
More
More
More

floor space
work in progress
distance travelled by the product
skilled labor is required

2) Product
It is appropriate for producing one standardized
Layout
product, usually in large volume. It is also called as
flow-shop layout or straight line layouts. The
machines are arranged according to the progressive
steps by which the product is made.
Example: chemical, paper, rubber, refineries,
cement industry.

A Flow Line for Production or Service


Flow Shop or Assembly Line Work
Flow
Raw
materials
or
customer
Materi
al
and/or
labor

Statio
n
1
Materi
al
and/or
labor

Station
2
Materi
al
and/or
labor

15

Station
3
Materi
al
and/or
labor

Station
4

Finish
ed
item

A U-Shaped Production Line

Principles
All the machine tools or other items of
equipments must be placed at the point
demanded by the sequence of operations
There should no points where one line
crossed another line.
Materials may be fed where they are
required for assembly but not necessarily
at one point.
All the operations including assembly,
testing packing must be included in the
line.

Advantages:
Mechanization of materials is possible
and material handling cost can be
reduced.
It requires less floor area.
It facilitates better production control.
Production bottlenecks are avoided.

Disadvantages:
Expansion of product line is difficult.
There is difficulty is supervising.
Breakdown of equipment disrupts the
production.

Comparison between Product and


Process Layout

3) Grouping Technology
Layout
Grouping technology layout or cellular manufacturing
layout is made for a single part family i.e parts with
common characteristics. In this layout dissimilar
machines are grouped into cells and each cell
functions like product layout.

Advantages
It reduces material
handling cost and
simplifies machine
changeovers.
It reduces in-process
inventory and
automate the

Disadvantages
Increased capital investment
Expanded training and scheduling of
workers

4) Fixed Position
Layout
When due to size,

shape and other


characteristics constraints, the products
cannot be moved, the machine and
operators move around the product.
Example: Construction of a building,
assemble of an aircraft or ship.
Advantage:
Less investment is required in this
layout and less transport cost as
bulky machines are not moved.

Fixed Position Layout

Disadvantages
Production period being very long,
capital investment is very high.
Very large space is required for
storage of material and equipment
near the product
Possibility of confusion and conflicts
among different workgroups. Why?

Hybrid Layout/ Combination


Combination of pure types of Layouts
Example : Process, Product and Fixed
Layouts
Hospital : Fixed and Process layout

Importance
Smooth and effective functioning
Effective use of available area
Avoidance of bottlenecks
Better supervision
Improved employee morale

Improved employee morale


Morale will be increased by giving
Better working condition
Better employee facilities
Reduced number of accidents
Increased earnings

Service Layouts
Warehouse and storage layouts
Issue: Frequency of orders
Retail layouts
Issue: Traffic patterns and traffic
flows
Office layouts
Issue: Information transfer, openness

Example : Hospital

Design Product Layouts: Line Balancing


Line balancing is the process of assigning tasks to workstations
in such a way that the workstations have approximately the same
processing time requirements. This results in the minimized idle time
along the line and high utilization of labor and equipment.
4 tasks

2 tasks

Worker 1

Worker 2

Each task takes 1 minutes, how to balance?

Cycle time is the maximum time allowed at each workstation


to complete its set of tasks on a single unit
What is the cycle time for the system above?
28

Parallel Workstations
1 min.

30/hr.

1 min.

30/hr.

2 min.

30/hr.

1 min.

30/hr.

Bottleneck
30/hr.
1 min.

60/hr.

2 min.

30/hr.

1 min.

1 min.
30/hr.
2 min.

Parallel Workstations
29

30/hr.

60/hr.

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