The National Institute

The National Institute of Engineering of Engineering (NIE),

one of the oldest private
[ (A Govt. Aided Autonomous Institution), Affiliation: Visvesvaraya Technological University] engineering colleges of the
Founded: 1946
1 country, was started in the
year 1946. 
Vision Mission Eminent founders, three
To impart state-of-the-art engineering education engineers Sri
NIE will be a globally acknowledged S.Ramaswamy, Retd.
through strong theoretical foundations and Superintending Engineer,
institution providing value based
practical training to students in their choice of Mysore PWD, Sri
technological & educational services through D.V.Narasimha Rao, Retd.
specialization Chief Engineer, Mysore
best-in-class people and infrastructure
To create new knowledge through innovation State Railways and Sri
T.Rama Rao, Retd.
and cutting-edge research in science and Executive Engineer of
engineering Mysore PWD, took lead in
establishing NIE,
To provide a platform for inclusiveness and Managing Committee
collaboration by following ethical and responsible NIE is being managed by a
Managing Committee of
engineering practices for long-term interaction President, Vice-President,
with academia and industry Hon. Secretary and Hon.
Treasurer and six
To encourage entrepreneurship and to develop distinguished Directors.
sustainable technologies for the benefit of global Presently, 9 out of 10
elected Managing
society Committee members are
NIE alumni. NIE Group
of Institutions
Programmes: NIE offers 7 Bachelor, 11 Master’s and 5 Post-graduate Diploma programmes and has 13 Centres of Excellence. Started as a single institute,
NIE today has a group of
The student strength is about 3500. Many funded research projects of Central and State Governments, VTU, ISRO and institutions; under its
McMaster University amounting to about Rs. 700 lakh are presently carrying out at NIE. Society and Trust.
 Address: Mananthavadi Rd, Vidayaranya Puram, Mysore-570 008 Karnataka State, INDIA, •The National Institute of Engg.
• NIE Institute of Technology, about
(O), Telefax: 0821-2485802 Phone:0821- 248 0475 2 kms from Infosys, Mysuru
• NIE Industrial Training Institute
Principal:  Dr. N. V. Raghavendra,Professor, Mech. Dept. • NIE First Grade College
 Dr.Aravinda Rao M Yadwad
Department of Mechanical Engineering Ph. D Professor

Dr. N. V. Raghavendra Ph. D

Professor
2 Dr.M.V.Achutha Ph. D

Vision Mission Professor & Head

The Department of Mechanical Engineering The Department of Mechanical Engineering is Dr.B.Suresha Ph.D Professor

will mould globally competent engineers by committed to: S.Shamsundar M Sc(Engg)

Associate Professor
 Provide a strong foundation in mechanical
imparting value based technological Tajmul Pasha M.Tech
engineering to make our engineers globally
education through contemporary Associate Professor
competitive.
infrastructure & best in class people Ravikumar Beeranur M.Tech
Inculcate creativity in developing solutions to Asst. Professor

mechanical engineering problems by adopting B.Hulugappa M.Tech Asst.

ethical and responsible engineering practices. Professor
K.K.Yogesh M.Tech Asst.
 Creating centres of Excellence to provide Professor
J.Dharanish M.Tech Asst.
students with opportunities to strengthen their Professor
Beemaraj M.Tech Asst.
leadership & entrepreneurial skills and research Professor
proficiency. Sunil S R Gaekwad M.Tech
Asst. Professor
Building relationships with globally Sharath Chandra N M.Tech
Asst. Professor
acknowledged academic institutions and Srikanth N.S M.Tech
industries. Asst. Professor
Srinag.P M.Tech Lecturer
HOD:  Dr.B.Suresha, Professor Vikram Athreya V M.Tech Asst.
The Department of Mechanical Engineering was established in the year 1958 and the first batch of B.E. graduates moved out of the portals of NIE in the year 1963.  Professor
Undergraduate course: [Bachelor of Engineering] B.E. degree(Mechanical Engineering): – 4 years duration Intake- 60*3=180
Post Graduate courses for M.Tech* Product Design and Manufacturing: 2 years duration (run by VTU) Aruna Mokhamatam M.Tech
Industrial Automation and Robotics : 2 years duration Asst. Professor
Nano Technology : 2 years duration
Machine Design : 2 years duration
M.Sc. (Engineering):by Research, Doctoral Program [Ph.D],
Short term courses: in CNC, CAD-CAM, Robotics and Finite Elements Method, UniGraphics.Etc. for employed Degree and Diploma Holders and
Engineering students.
 OPERATIONS MANAGEMENT (3-0-0)

Sub Code : ME7E204 CIE : 50 %

Hrs / Week : 03 SEE : 50
SEE Hrs : 3 Hrs %
Max.
Course Instructor:
Marks: 100

Dr. Aravindrao M.Yadwad

B.E, M.Tech, Ph.D, PGDHRM., MBA, MASME, MISTE, MCI, C.Engg.,FIE.
Professor & Dean [Student Affairs] Department of
Mechanical Engineering The National Institute of
Engineering
MYSORE - 570008, KARNATAKA Cell:09964470900
3
 Time Table

Days ‘A’ section

/Timings [405]

Mon --------------

Tue -------------

Wed 12.40-1.30
Thu 11.00 – 11.50

Fri 12.40-1.30

Sat -----------

4
 Course Content
Unit - 1
Operations Management Concepts: Introduction, Historical Development, Operations Management
Definition, and Framework for managing operation, The trending operation management Products v/s
Services, Productivity, Factors affecting Productivity, International Dimensions of Productivity, Scope of
operations management.
Operations Decision Making: Introduction, Characteristics of decisions, framework for Decision
Making, Decision methodology, Decision support system. Concept and Numerical problems on
economic model (BEA), Decision tree analysis.
SLE: Trending in manufacturing industries 8 hrs

Unit - 2
System Design and Capacity Planning: Introduction, System configuration, Manufacturing and
Service system, Design capacity, System capacity, capacity planning, investment decisions and
Numerical problems
Facility Location and Layout: Introduction, Need of selecting a suitable location, factors influencing
plant location, Location Planning for Goods and Services, Foreign locations, Objectives of the good
plant layout. Facility layout, Classification of layouts, Analysis and selection of layouts, Minimizing cost
in job shop layout.
SLE: Assembly Line balancing 7hrs 5
 Course Content
Unit -3
Demand Forecasting: Nature and use of forecast , Forecasting time horizon, short and long range forecasting, sources of
data, demand patterns, forecasting models: qualitative forecasting techniques, quantitative forecasting models- linear
regression, moving average, exponential smoothing, Numerical problems.

SLE: Forecasting as a planning tool 8hrs

Unit – 4
Aggregate Planning and Master Scheduling: Introduction to Planning and Scheduling, Objectives of Aggregate
Planning, Aggregate Planning strategies and Methods, transportation model for aggregate planning. Objective and
concept of the Master Scheduling, Master Scheduling Methods, Numerical problems
Material and Capacity Requirements Planning: Inputs and outputs of MRP system, BOM, MRP logics, introduction to
CRP and ERP.
Modern production management tools: Just in time manufacturing: overview of JIT, basic elements of JIT, Benefits of
JIT, universal problem solving sequence, Push/Pull production. Japanese manufacturing Techniques: In brief Kanban,
Poka yoke and kaizen.
8hrs
SLE: Capacity Management.
6
 Course Content

Unit – 5
Scheduling and Controlling Production Activities: Introduction ,scheduling strategy & guidelines,
Scheduling methodology, concept of single machine scheduling, measure of performance, SPT, WSPT
rule, EDD rule, minimizing nos. of tardy jobs. Flow shop scheduling: Johnson algorithm’s’ jobs on ‘2’
and ’3’ machines, Gantt chart, CDS heuristics. Job shop scheduling: Scheduling ‘2’ jobs on ‘M’
machines.Numerical problems. 8hrs
SLE: Gantt Chart

7
Text Book:
1. Operations Management by B. Mahadevan, Theory and practice, Pearson education, second
edition-
2007.

Reference Books:

1.Operations Management by I. Monks, J.G., McGraw-Hill International Editions, 1987.

2.Modern Production/Operations Management by Buffa, Wiley Eastern Ltd, Year 2007
3.Production and Operations Management by Pannerselvam. R.,PHI, Year 2012
4.Productions & Operations Management by Adam & Ebert, Year 2002
5.Production and Operations Management by Chary, S. N., Tata-McGraw Hill, Year 2000
6.JIT manufacturing by M.G. Korgoonkar First Edition, McMillan India Ltd, Year 2003

Assessment Methods:
1. Written Tests (Test 1,2 & 3) are Evaluated for 25 Marks each out of which sum of
best two for 50 marks are taken.

8
 Course Outcomes

Upon successful completion of this course, the student will be able to:
1.Understand role of operation management, the factors affecting productivity
and develop decision support system.
2.Understand the different capacities, facility location and layouts.
3.Analyze different qualitative and quantitative forecasting models.
4.Evaluate different material and capacity requirement planning methods.
5.Understand and solve different job scheduling strategies.
6.Understand the Optimization of time in material logistic process.

9
 Program Outcomes
1. Demonstrate engineering knowledge in the four streams of mechanical engineering, namely, thermal
engineering, design engineering, manufacturing engineering and industrial management.
2. Solve real life problems through the application of engineering knowledge.
3. Design a component, system or process to meet desired needs with realistic constraints.
4. Formulate mathematical models and conduct experiments to analyze the complexities of mechanical
systems.
5. Provide solutions to varied engineering problems using computational tools.
6. Overcome engineering challenges to cater to the needs of the society.
7. Design and manufacture products which are economically and environmentally sustainable.
8. Discharge professional and ethical responsibility considering societal health and safety.
9. Function competently as an individual and as a part of multi-disciplinary teams.
10. Communicate effectively and express ideas with clarity
11. Exhibit professionalism by employing modern project management and financial tools.
12. Possess the knowledge of contemporary issues and ability to engage in life-long learning
10
Mapping of course outcomes with program outcomes

11
 Unit 2

Unit - 2
System Design and Capacity Planning: Introduction, System configuration,
Manufacturing and Service system, Design capacity, System capacity,
capacity planning, investment decisions and Numerical problems

Facility Location and Layout: Introduction, Need of selecting a suitable

location, factors influencing plant location, Location Planning for Goods and
Services, Foreign locations, Objectives of the good plant layout. Facility
layout, Classification of layouts, Analysis and selection of layouts, Minimizing
cost in job shop layout.
SLE: Assembly Line balancing 7hrs 5

12
Manufacturing and Service Systems:

Manufacturing Systems Produce standardized products in large volumes. It

includes cost component are;
1) Fixed cost,
2) Variable costs,
3) Value addition,
4) Productivity
Service systems present more uncertainty with respect to both capacity and
costs.
Ex. Hospitals, Restaurants,
Difficulty; not easily Standardized,
This makes more difficult to accumulate costs and measure the productivity of
the services.
Manufacturing System

Control
• Inventory
•Cost
•Quality
Fig. Schematic production system
Systems: systems are the arrangement of components designed to achieve objectives according to the
plan.
Subsystems : Personnel. Engineering, Finance, operations
 Systems design
Systems design is the process of defining the architecture, product design,
modules, interfaces, and data for a system to satisfy specified requirements.

Systems design could be seen as the application of systems theory to product

development.
Most common System design tools are Context Diagrams, E-R Diagrams and
Flow Chart. 

Systems design examples

Google Material Design System. ...
Apple Human Interface Guidelines. ...
Atlassian Design System. ...
Uber Design System. ...
Shopify Design System Polaris. ...
IBM Carbon Design System. ...
Mailchimp Design System. ...
Salesforce Lightning Design System. 15
Capacity planning is the process of determining the production capacity
needed by an organization to meet changing demands for its products. ...

IT capacity planning involves estimating the storage, computer hardware,

software and connection infrastructure resources required over some future
period of time.

16
Capacity planning
Determination of plant capacity:
Production system design is the first level planning for the inputs, conversion activities and outputs
of a production operation. Design decisions are very important because they are often associated
with significant investment of funds. The initial outlay and Operating expenses are established
based on design decision, and these in turn affect Productivity of the concern in future. So they
affects fixed cost and variable cost.

Capacity is a measure of the ability to

IMP Terminology: produce goods or services or, it may be
called as the rate of output.
1.Design Capacity OR
2.System capacity Capacity is a fixed investment for
3.System efficiency repetitive use by the system, until it
4.Actual output requires replacement on account of
depreciation or wear and tear.
Design and Systems Capacity
The design of production systems involve planning for the inputs, transformation activities
and outputs of a production operation. Decision regarding design of production systems
are far-reaching because;
(i)Huge investments are involved and
(ii)Cost and productivity patterns are affected for a long duration.
DESIGN CAPACITY:
The design capacity of a facility is the planned rate of output of goods or services under normal, or
full –scale operating conditions. In other words, it is the maximum production
or service that was aimed at when the plant was created or established or revamped from time to time.
Ex. Number of seats in a theatre, Number of seats in a college , Number of beds in a Hospital,

IMP points : Design for certain capacity, Seasonal, Cyclical, etc

Rnadom events may cause unexpected fluctuations.
The design capacity normally reflects managements strategy for meeting the demand.
System capacity:

System capacity is the maximum output of a product achieved in reality by a production

System. In other words, system capacity is the practically achievable output of any Production
system at any given point of time, under the effects of environment.

System capacity is typically less than or equal to the design capacity of a

production system and less than the actual output.

Reasons:
I.Equipments break down.
II.Do not use facilities uniformly
III.Demand fluctuation
IV.Imbalance between equipment and labour.
V.Inefficiency on the part of managers, workers, salesman etc.
Relation between design capacity, system capacity and actual output.

(Ideal capacity)

(Real capacity)

(Achieved output)

System efficiency = Actual out put/System capacity

Capacity Utilization = Actual output/ Design capacity
Capacity Utilization = Capacity put to use/ Total capacity available
Problem.

2. An assembly line has four work center ( A,B,C & D) in series with individual
Capacities (units per day) and actual output as shown .
Determine : i) System capacity ii) System efficiency

Actual output = 306/day

Solution:
System Efficiency = Actual output/ System capacity
Lowest work center decides the rate of output i.e., system capacity.
Therefore system capacity here = 360 units.
SE = 306/ 360 = 0.85  85 %
Problems:
1. A foundry production alloy casting wishes to install enough furnace of a certain type to Produce
5,00,000 kg of molten per year. Each furnace takes about 30 minutes to melt 50 kg, But the
output is typically about 3% defective. How many furnaces will be required if each One is
available for 2000 hours per year.
Solution:
Actual output required = 5,00,000 kg
System efficiency = 1-0.03 = 0.97
Capacity of each furnace = 50 kg /30 min = 100 kg/hr
Each furnaces Available = 2,000 hrs /year = 100 * 2000 = 2,00,000 kg/year
System efficiency = Actual output/System capacity

500000 System capacity (required) = 515464 kg

0.97 
Systemcapacity
No. of furnaces required = System capacity / Capacity of each furnance
= 515464/200000 = 2.57 Nos.
The firm should go for 3 furnaces, with a little surplus capacity.
 System Design and Capacity
1. Photo flash company wants to estimate number of cubicles required to maintain an output of 200
good prints per hour. The set up and exposure time can be theoretically done in 2 minutes per print.
The operators are 90% efficient and 5% of the prints must be scrapped and redone. If the cubicles
can be utilized for enlarging only 75% of the time, determine.
a) The required system capacity in prints per hour
b) Average output per hour expected
c) Number of cubicles required

Ans: a) 210.5 prints/year, b) 20.25 c) 11

2. An aerospace manufacturers must acquire some molding machines capable of producing 1,60,000 good
parts per year. They will be installed in a production line that normally produces 20 % rejects because of
tight aerospace specifications. Determine,
a) What is the required systems capacity?
b) If it takes 90 seconds to mold each part and the plant operates 2000 hours per year and if the molding
machines are used only 50 % of the time and are 90 % efficient , what actual (usable) molding machine
output per hours would be achieved ?
c) How many molding machines would be required?

Ans. A) 2,00,000 parts/year B) 36,000 molds/year C) 6 machines.

Solution 1 :
a) System Capacity = Good output / System efficiency
= (200 /0.95) = 210.5 prints/hour

b) Average Output = Unit capacity X % utilization X 

= (60/2) X 0.75 X 0.90
= 20.25
c) Number of cubicles = [System capacity / (Output /hr)}]
= 210.5 / 20.25
= 10.4  11
Capacity Planning

Capacity is the rate of production capability of a facility.

Capacity is usually expressed as volume of o/p per period of time.

Design of the production system involves planning for the inputs, conversion process and outputs of production
operation.
Capacity Planning is to be carried out keeping in mind future growth and expansion plans, Market trends, sales
forecasting etc.
•Stable demand
•Fluctuation of demand create problems
•Capacity decisions are strategic in nature.

Production managers are more concerned about the capacity for the following reasons:
•Sufficient capacity is required to meet the customers demand in time
•Capacity affects the cost efficiency of operations
Capacity planning is the first step
•Capacity affects the scheduling system
When an organization decides to
•Capacity creation requires an investment
Produce more or new productions
Process of Capacity Planning

Long –term capacity strategies Short-term capacity strategies

Future-demand and technologies are uncertain (5 to 10 Certain and predict. (1 to 2 years)
years)
Affecting Parameters: Strategies:
•Multiple Products ( diff stages of life cycle) •Inventories (stock, slack, peak period)

•Phasing in capacity( technological breakthrough, market
quickly)
•Phasing out capacity (outdated facilities, jobs,
employees)
•Backlog ( Peak period, customers wait)
•Employment and layoff (hiring or firing)
•Employee training ( multi skilled employee)

•Subcontracting (peak period, temporarily)

Ex: Nokia, •Process design( redesign)

Facility Locations and Layout

Plant Location Facilities Location

Production &Service OM
Building Plant , Machinery, Long lasting financial, Employment and distribution pattern,

•Long range forecasting

•Company Expansion plan and policy
•Market
•Raw materials

Optimum location
Need of selecting a suitable location
The need for selecting a suitable location arises because of two situation:
1)When starting a new factory
2)In case of existing factory to expand due to increasing demands (Expand,
Additional Facilities, New location)
The probable reasons for replacement of existing facilities to new locations
could be due to change in:

I. Location of demand for the products.

II. Availability of raw materials
III. Availability of labour
IV. Availability of transport.
V. Rules, Regulations and Law of the land
VI. Policy of the company
VII. Society reaction.
Factors influencing Plant Location
Various factors to be considered while selecting the location for the factory

1. Availability of the raw materials ( ex. Sugarcane)

2. Proximity to market ( Providing goods and service)

3. Availability of labor ( Reasonable rate, Skilled, Ex, Cracker industry in Sivakasi, TN)

4. Transportation and communication facilities,(Air, Road, Rail, Water & pipe line

5. Availability of power, water and fuel.

6. Suitability of land and climate ( humidity, temp, rain fall)

Urban Vs Rural
7. Supporting industries and services ( sub contractor)

8. Law and Taxation (Policies)

9. Community and Labour attitudes ( Strike and Lock-outs)

10. Social Infrastructure ( Housing , Education, Health etc.)

 Location Planning for Goods and Services
Systematic decision process

1) Define the objectives for the location and identify the associated constraints.

2) Indentify the relevant criteria for decision making

a) Quantitative
b) Qualitative

3) Relate the objectives to the criteria using appropriate models

4) Conduct field research to generate relevant data and use the models to evaluate the
best option along with alternatives.

5) Select the location that best satisfies the criteria.

 A Comparison of Goods Vs Service
Oriented Organization with respect to selection of location
Goods Services

Goods are usually standardized products that Can be produced, stored, and Service are those activities that are usually
transported to Customers for use at a later date Produced and consumed simultaneously. Unless they are produced in the
presence of
Consumers most services convey and colleges

Locations tend to be oriented near the source of raw material. Locations tend to be oriented near the source of the market

Plant location need not attract customers. Hence it can be in a rural area. Service location may have to attract customers. Hence it is preferable in an
urban area.

Large unskilled labour Large skilled work force may be necessary

Production rates can be flexible The rate of services may not be flexible

Inventory can be built Inventory cannot be built.

Foreign Location
When a company decides to set up a plant outside its home country , then it is known as a
Foreign Location.
Why ? Cost benefits, availability of cheap labor, Proximity to overseas clients

US, Japanese and European companies

India, Brazil, Malaysia, Taiwan, Indonesia etc

Foreign location can also offer numerous pitfalls and therefore a systematic analysis
On the following aspects of the potential location should be undertaken :
1.Political aspects
2.Social Aspects
3.Economic aspects
4.Joint ventures
5.Space factories
Political Aspects: Space Factories:
•Political stability NASA,
Ex. East India Company in the 17th century McDonnell Douglas and Minnesota Mining

Social Aspects

Difference in Language and Culture, religious practice, Social policies, diff units,
Pace of the business.
Economic Aspects:
Labour, Capital equipments, Automation, etc. Dollar price.
NIE joint ventures
Joint Ventures:
“If you can ‘t beat them join them”
Ex, Toyota Kirlosker, Ashok Leyland, Tata-IBM, HCL-perot
etc.
Multinational companies
Location Analysis

The objective of location analysis is to find locations that will maximize revenues and
minimize costs. The major objectives of private organizations is to maximize revenues
While non profit and public services organization strive hard to minimize costs, or possibly
balance the costs with the budget.

Analytical Methods for finding solution to location problems.

1.Locational Break –Even analysis

2.Qualitative Factors Analysis

3.Cost minimization using Transportation Liner Programming

Facility layout:
It includes the layouts problems of both Production as well as Service organizations.

Facilities layouts or plant layout refers to the arrangement of various facilities like
Men, Machine, Materials, Equipments etc., within an area.

These facilities are brought together to perform specific tasks and achieve certain
objectives of the organiztion.
Definition of Plant Layouts:
According to Moore, “ Plant Layout is a plan of an optimum arrangement of facilities including
personnel, operating equipment, storage space, material handling equipment and all other supporting
service along with the design of best structure to contain all these facilities.

Plant layout is also defined as “ A technique of locating machines, processes and plant Services within
the factory in order to secure the greatest possible output of high quality. At the lowest possible total
cost of production.
Objectives of a Good Plant Layout
The objectives of a good plant layout are listed below:

1. Integration of Resources: ( men, materials, machines, services,)

2. Reduce Material handling, Move minimum distance : (travel)
3. Effective Utilization of Available Space :(
4. Workers Safety, Security and Satisfaction:
5. Flexibility: (Changes)
6. Removal of Bottlenecks: (back tracking)
7. Quick Disposal of Work:
8. Provision for Maintenance:
9. Better Supervision and Control:
10. Avoid Industrial Accidents:
Determinants of Layouts
Factors should be taken in to consideration while determining the layout for a factory.
1. Type of Product ( Goods or Services, Product quality)

2. Type of Production Process ( Cont Production, Job Prod, Process Prod, )

3. Volume of Production ( Material handling)

4. Management Policy (Cost constraints, quality, plant size,facilities)

5. Service Facilities (welfare of workers)

6. Possibility of Future Expansion

Types of Layouts

The basic types are:

1.Product or Line Layout

2.Process Layouts or Functional Layouts or Job Shop Layout

3.Cellular or Group Layout

4.Fixed Position Layout

1. Product or Line Layout

Group
In similar activities together according to process or
function they perform

Out

Arrange activities in line according to sequence of

operations for a particular product or service
Ex. Chemical Industries,
1. Product or Line Layout
R
a Flow line – Product A F
w i
n
m Product Sequence i
Flow line – Product B s
a
t h
e e
r Ex, Automobile assembly lines, Beverage bottling etc. d
i G
a o
l o
s d
s
 Product layouts are suitable for continuous production and is adopted by those organizations which produce
a few products in large volume
Product layout can be adopted on conditions
I.Product is standardized
II.There is a reasonably stable product demand
III.There is a continuous supply of raw material
IV.There is no labours
Advantages of Product layout
1.Reduced materials handling costs
2.Less Work in process inventory
3.Simplified production planning and control
4.Better Utilization and Specification of labour
5.Perfect line balancing which eliminates bottlenecks and idle capacities
6.Rate of production can be high. Feasible to incorporate automation
7.Less floor space required.
Disadvantages
1.Lack of Flexibility –any change in product requires the modification of layout
2.Sequence of operation is disturbed if there is any problem at any of the work centres
3.Capital investment is high
4.Absence of labour at any of the work centres stops production.
2. Process Layouts or Functional layouts or Job shop Layouts
Group similar activities together according to process or function they perform

In this type of layout, Similar equipments and operations are grouped together to perform similar work in
each area.
 In this type of layout, Similar equipments and operations are grouped together to perform similar work in each area.
What conditions ?
I.Non repetitive type of work
II.Product design are not stable
III.Volume of production is small
Advantages of process layouts
1.Variety of products could be produced without any modification in layout.
2.Better utilization of production facilities
3.Greater flexibility with regards to work distribution
4.More continuity in production
5.Variety of products makes the job challenging and interesting.
6.Suitable for incentive pay system
7.Comparatively low investment on machines.
Disadvantages
1.Increase in material handling costs
2.Large work-in-process inventory at certain overload sections
3.Production planning and control is difficult
4.Total production time is long, owing to time consumed in material handling
5.Effective and quick supervision is difficult
6.Large floor space is required
7.Rate of production is low. Not feasible to incorporate automation
Comparison of Product and Process Layouts

Product Process
• Workers  Limited skills  Varied skills
 Low in-process, high  High in-process, low
• Inventory finished goods finished goods
 Small  Large
• Storage space
•  Fixed path (conveyor)  Variable path (forklift)
Material handling
• Aisles  Narrow  Wide
• Scheduling  Part of balancing  Dynamic
• Layout decision  Line balancing  Machine location
• Goal  Equalize work at each  Minimize material
station handling cost
• Advantage  Efficiency  Flexibility
Cellular or Group Layout
This is combination of product and process type of layout

Raw Materials

A C B A A D A B
B D B D D A B B
C E E D E E C C

Family 1 +Family 2+ Family 3 + Family 4 = Assembly Ex. Garments industries

RB/NIE/Mech
This layouts is called Group layout since group technology is used to develop a hybrid Between pure process
layout and pure product layout.
Advantages of Cellular layouts
1.Reduced material handling cost
2.Less work-in-process inventory
3.Simplified production planning and control
4.Better utilization and specialization of labour
5.Rate of production is high . Feasible to incorporate automation in each cell
6.Production variety can be higher than the layout but lesser than process layout
7.Suitable for incentive pay scheme
8.Delivery times can be estimated more precisely.
Disadvantages
1.Increased machine down time since machines dedicated to a particular cell may not
Be used all the time.
2.Cells having a particular combination of facilities may become out of dates as
production and processes change
Project or Fixed Position Layout
In this type of layout, the product stays in one location while tools, equipments and Workers are brought near it
and fabrication is carried out. A Fixed position layout is Appropriate when it is not feasible to move the product
because of its size . This type of Layout is suitable.

I.When one or few pieces of identical heavy products are to be manufacture

II.When the assembly consists of large number of heavy parts
III.When transportation cost is more than the cost of movement of tools and equipment

Eg. Shipbuilding , building bridge, agriculture operations, satellite erection etc.

Advantages:
1.Capital investment is lower in the layout
2.Flexibility changes in the product design
3.Responsibility for quality can be pin-pointed
4.Helps in job enlargement and upgraded the skills of the operator
5.The workers identify themselves with the product and take extra interest and pride
in doing the job. Disadvantages :
1.Equipment needed for fabrication many not be mobile
2.Work may suffer due to climate conditions
Problems: on Facility location

1. Potential locations A,B and C have the cost structures shown below for
manufacturing a product expected to sell for Rs. 2700 pre unit. Find the most
economical location for an expected volume of 2000 units per year.
Site Fixed cost/year Variable Cost/year
Rs. Rs.
A 60,00,000 1500

B 70,00,000 500

C 50,00,000 4000

Solution : use Break –even analysis as well as comparing method ( i.e Switch over)

Solution available in Production and operations management by R. Panneerselvam.

Page no.116,117,118.
 Single Facility Location Problems
1. A group company has plants in six different locations, Whose co-ordinates in kilometer
are : (100,200), (200,200), (200,500), (300,500), (400, 300) and (500,100) . The
company wants locate a centralized raw material warehouse, from which the quantity of
materials transported to the plants 1,2,3,4,5 and 6, in tones are 1000,
1200,800,2000,1800 and 900, respectively. Find the optimal location for the
warehouse.

Ans. Optimal X and Y coordinates are ( 300,300)

2. An organization has seven plants in seven different locations, whose co-ordinates in

kilo- meter are: (100,300), ( 200, 500), (300,600), ( 600,400), (500, 300),( 300,200) and
( 200,100). The company wants locate another plant, from which the quantity of
materials transported to the plants in tones are 1000,2500, 1000, 2700, 1500, 1200 and
1800, respectively. Find the optimal location for the new plant.
Ans: Optimal X and Y coordinates are ( 300,400)
Prob 1 Solution : Given data
Plant 1 2 3 4 5 6
Coordinates 100,200 200,200 200,500 300,500 400,300 500,100
(X,Y)
Weight (tons) 1000 1200 800 2000 1800 900

Determination of X coordinates of the warehouse Weight /2 = 7700/2

Existing X- Weight  Weight
Facility Coordinates =3850
1 100 1000 1000
2 200 1200 1000+1200=2200 Optimal X-coordinates of
3 200 800 2200+800 =3000 the warehouse (X) = 300
4 300 2000 3000+2000 = 5000
5 400 1800 6800
3850 is close to 5000 in cumulative column,
6 500 900 Total =7700 There fore select X = 300
Determination of Y coordinates of the warehouse:

Existing Facility Y-Coordinates Weight  Weight

6 100 900 900
1 200 1000 900+1000= 1900
2 200 1200 1900+1200= 3100
5 300 1800 4900
3 500 800 5700
4 500 2000 Total 7700

Weight /2 = 7700/2 Optimal Y-coordinates of the

warehouse (Y) = 300
=3850

3850 is close to 4900 in cumulative column, Therefore select Y = 300

( X Y ) of the new plant = ( 300 , 300 )
Prob 2 Solution : Given data
Plant 1 2 3 4 5 6 7

Coordinates 100,300 200,500 300,600 600,400 500,300 300,200 200,100

(X,Y)

Weight (tons) 1000 2500 1000 2700 1500 1200 1800

Determination of X coordinates of the warehouse

Existing Facility X-Coordinates Weight  Weight

1 100 1000 1000

2 200 2500 1000+2500 = 3500

Weight /2 = 11700/2
7 200 1800 3500+1800 = 5300

3 300 1000 5300+1000 = 6300

=5850
6 300 1200 7500
Optimal X-coordinates
5 500 1500 9000
of the warehouse (X) =
4 600 2700 11700
300

5850 is close to 6300 in cumulative column, There fore select X = 300

Determination of Y coordinates of the warehouse:
Existing Facility Y-Coordinates Weight  Weight
7 100 1800 1800
6 200 1200 3000
1 300 1000 4000
5 300 1500 5500
4 400 2700 8200
2 500 2500 10700
3 600 1000 Total = 11700

Weight /2 = 11700/2 Optimal Y-coordinates of the

= 5850 warehouse (Y) = 400

5850 is close to 8200 ( Consider higher than mean value) in

cumulative column, There fore select Y = 300
( X Y ) of the new plant = ( 300 , 400 )
SLE: Assembly Line balancing

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