Answer to Question #297093 in Management for Jack Patz

Question

List and explain in brief the various types of plant layout concepts in operations

management, highlighting the objective, considerations of a good layout design. Give

examples on where each of these types can be employed respectively. Briefly explain a

layout for a Banking branch operations (mention the type of layout applicable).

Answer 1

Types of Plant Layout Concepts in Operations Management

Plant layout is a plan for effective utilization of facilities for the manufacture of products; involving a most efficient and economical arrangement of machines, materials, personnel, storage space and all supporting services, within available floor space.

Certain useful observations on the concept of plant layout are as follows:

(i) Plant layout is very complex in nature; because it involves concepts relating to such fields as engineering, architecture, economics and business management.

(ii) Most of managers now realize that after the site for plant location is selected; it is better to develop the layout and build the building around it – rather than to construct the building first and then try to fit the layout into it.

Objectives/Advantages of Plant Layout:

Following are the objectives/advantages of plant layout:

(i) Streamline flow of materials through the plant

(ii) Minimize material handling

(iii) Facilitate manufacturing progress by maintaining balance in the processes

(iv) Maintain flexibility of arrangements and of operation

(v) Maintaining high turnover of in-process inventory

(vi) Effective utilization of men, equipment and space

(vii) Increase employee morale

Principles of Plant Layout:

While designing the plant layout, the following principles must be kept in view:

 

(i) Principle of Minimum Movement:

Materials and labor should be moved over minimum distances; saving cost and time of transportation and material handling.

(ii) Principle of Space Utilization:

All available cubic space should be effectively utilized – both horizontally and vertically.

(iii) Principle of Flexibility:

Layout should be flexible enough to be adaptable to changes required by expansion or technological development.

(iv) Principle of Interdependence:

Interdependent operations and processes should be located in close proximity to each other; to minimize product travel.

(v) Principle of Overall Integration:

All the plant facilities and services should be fully integrated into a single operating unit; to minimize cost of production.

(vi) Principle of Safety:

There should be in-built provision in the design of layout, to provide for comfort and safety of workers.

Types of Plant Layout:

Two basic plans of the arrangement of manufacturing facilities are – product layout and process layout. The only other alternative is a combination of product and process layouts, in the same plant.

 

Following is an account of the various types of plant layout:

(a)  Product Layout (or Line Layout):

 

In this type of layout, all the machines are arranged in the sequence, as required to produce a specific product. It is called line layout because machines are arrange in a straight line. The raw materials are fed at one end and taken out as finished product to the other end.

Advantages:

1. Reduced material handling cost due to mechanized handling systems and straight flow

2. Perfect line balancing which eliminates bottlenecks and idle capacity.

3. Short manufacturing cycle due to uninterrupted flow of materials

Disadvantages:

1. Lack of flexibility of operations, as layout cannot be adapted to the manufacture of any other type of product.

2. Large capital investment, because of special purpose machines.

(b) Process Layout (or Functional Layout):

In this type of layout, all machines performing similar type of operations are grouped at one location i.e. all lathes, milling machines etc. are grouped in the shop and they will be clustered in like groups.

Advantages:

1. Greater flexibility with regard to work distribution to machinery and personnel. Adapted to frequent changes in sequence of operations.

2. Lower investment due to general purpose machines; which usually are less costly than special purpose machines.

(c) Combination Layout:

In practice, plants are rarely laid out either in product or process layout form. Generally, a combination of the two basic layouts is employed; to derive the advantages of both systems of layout. For example, refrigerator manufacturing uses a combination layout.

(d) Fixed Position Layout:

It is also called stationary layout. In this type of layout men, materials and machines are brought to a product that remains in one place owing to its size. Ship-building, air-craft manufacturing, wagon building, heavy construction of dams, bridges, buildings etc. are typical examples of such layout.

Reference

https://www.yourarticlelibrary.com/business/plant-layout-business/plant-layout-concept-objectives-principles-and-types/69514#google_vignette