Product, process, fixed and group layouts

Principle of management and decision modelling(POMDM) for S7 B.Tech Mechanical engineering students

1. Product, Process, Fixed and Group Layouts BY, AJEESH KUMAR B K (9) AJITH ANTONY (10) AKASH ANAND (11) AKASH UNNIKRISHNAN (12) 1

2. Contents Introduction Classification of layout Process layout Product layout Group layout Fixed position layout Reference 2

3. Introduction Plan layout is a floor plan of the physical facilities which are used in production. Layout planning refers to the generation of several possible plans for the spatial arrangement of physical facilities and select the one which minimises the distance between the department. Objectives include : Minimising investment, production time and material handling constants. Facilitate the manufacturing process and organisational structure Utilise existing space more effectively 3

4. Classification of layout Process layout Product layout Group layout Fixed position layout 4

5. Process layout Machines and services are grouped on a functional and operational basis. For example, all welding work is carried out at one place and all turnings in another. This layout is normally used where Expensive machinery is required Production involves a large variety of items having limited volume in each type Operations are not balanced in time. When demand is small and intermittent. 5

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7. Advantages Lower initial capital investment in machines and equipments . There is high degree of machine utilization, as a machine is not blocked for a single product The overhead costs are relatively low Change in output design and volume can be more easily adapted to the output of variety of products Supervision can be more effective and specialized There is a greater flexibility of scope for expansion. 7

8. Disadvantages Material handling costs are high due to backtracking More skilled labor is required resulting in higher cost. Time gap or lag in production is higher Work in progress inventory is high needing greater storage space More frequent inspection is needed which results in costly supervision 8

9. Product Layout Machines are laid out in sequence of operation along the flow lines Used when machines and auxiliary services are located according to the processing sequences of the product. The volume of production is very high Nature of work is standardised Process operation are balanced in time Continuity of materials can be maintained 9

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11. Advantages Low cost of material handling, due to straight and short route and absence of backtracking Smooth and uninterrupted operations Continuous flow of work Lesser investment in inventory and work in progress Optimum use of floor space Shorter processing time or quicker output Less congestion of work in the process Simple and effective inspection of work and simplified production control Lower cost of manufacturing per unit 11

12. Disadvantages High initial capital investment in special purpose machine Heavy overhead charges Breakdown of one machine will hamper the whole production process Lesser flexibility as specially laid out for particular product. 12

13. Group Layout It is a combination of product and process layout. It combines the advantages of both layout systems. It is used when the same item is being manufactured in different types of sizes. In this, the machines are arranged in the process layout but process grouping is arranged in a sequence. The sequence of operation with each of the product variety howver remains the same. 13

14. Advantages Improved utilisation of labour and employee morale. Reduced in-process inventory Reduced set-up time and manufacturing costs. Reduced material handling 14

15. Disadvantages Reduced shop flexibility Possible reduced machine utilization Possible extended job flow times Possible increased job tardiness 15

16. Fixed Position Layout This type of layout is suitable when one or a few identical heavy items are to be manufactured. The materials are kept fixed because the cost of transportation of material is very high. The ship building industry commonly employs this layout. In this type of layout, the material or the major component remain fixed and the tools, machinery, men and other materials move around it. 16

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18. Advantages It saves time and cost involved on the movement of work from one workstation to another. The layout is flexible as change in job design and operation sequence can be easily incorporated. 18

19. Disadvantages Production period being very long, capital investment is very heavy Very large space is required for storage of material and equipment near the product. As several operations are often carried out simultaneously, there is possibility of confusion and conflicts among different workgroups. 19

20. Comparison between process and product layout 20

21. References Production and Operations Management- R. Pannerselvam 21