Session 7

Production & Operations
Management
Session-7
Program: FT MBA Core

Trim: III
Instructor: Dr. Abhinav Sharma
Facility Layout
Production & Operations Management, Dr. A.K. Sharma, SBM, NMIMS Mumbai 2
Facility Layout
Layout: the configuration of departments, work centers, and equipment, with
particular emphasis on movement of work (customers or materials) through the
system
Facilities layout decisions arise when:
• Designing new facilities
• Re-designing existing facilities
Facility Layout
Common Reasons for re-designing:
1. Inefficient operations
• High cost
• Bottlenecks
2. Accidents or safety hazards
3. Changes in product or service design
4. Introduction of new products or services
5. Changes in output volume or product mix
6. Changes in methods or equipment
7. Changes in environmental or other legal requirements
8. Morale problems
Facility Layout
Layout Design Objectives
• Basic Objective/ Core Objective
• Facilitate a smooth flow of work, material, and information through the
system
• Supporting objectives
1. Facilitate product or service quality
2. Use workers and space efficiently
3. Avoid bottlenecks
4. Minimize material handling costs
5. Eliminate unnecessary movement of workers or material
6. Minimize production time or customer service time
7. Design for safety
Basic Layout Types
• Product layouts (repetitive processing)
• Process layouts (non-repetitive processing)
• Fixed-Position layout
• Combination layouts
Product Layout
Product layout
• Layout that uses standardized processing operations to achieve smooth,

rapid, high-volume flow
Raw materials
Station Station Station Station Finished
or customer item
1 2 3 4
Material Material Material Material
and/or and/or and/or and/or

labor labor labor labor
What type of process requires product layout?
Repetitive Processing
Product Layout
Examples:
Cafeteria Line
Cookies Manufacturing
Product Layout
Advantages and Disadvantages
Advantages Disadvantages
• High rate of output • Creates dull, repetitive jobs
• Low unit cost • Poorly skilled workers may not maintain
• Labor specialization equipment or quality of output
• Fairly inflexible to changes in volume or product
• Low material handling cost per unit
or process design
• High utilization of labor and equipment
• Highly susceptible to shutdowns
• Established routing and scheduling
• Preventive maintenance, capacity for quick repair
• Fairly routine accounting, purchasing, and and spare-parts inventories are necessary expenses
inventory control
• Individual incentive plans are impractical
Product Layout
U-Shaped Layout
Product Layout
Process Layout
• Process layouts
• Layouts that can handle varied processing requirements
• Common in services
Dept. A Dept. C Dept. E
Dept. B Dept. D Dept. F
Used for Intermittent processing

Job Shop and Batch
Process Layout
Example:
Stuffed Toy Making
Process Layout
Advantages and Disadvantages
Advantages Disadvantages
• Can handle a variety of processing • In-process inventories can be high
requirements • Routing and scheduling pose continual challenges
• Not particularly vulnerable to equipment • Equipment utilization rates are low
failures
• Material handling is slow and inefficient
• General-purpose equipment is often less costly
and easier and less costly to maintain • Reduced spans of supervision
• It is possible to use individual incentive • Special attention necessary for each product or
systems customer
• Accounting, inventory control, and purchasing are
more involved
Process Layout
Comparison of Product and Process Layout
Fixed Position Layout
• Fixed Position layout

• Layout in which the product or project remains stationary, and workers, materials, and
equipment are moved as needed
Combination Layouts
Some operational environments use a combination of the three basic layout types:
• Hospitals
• Shipyards
Some organizations are moving away from process layouts in an effort to capture the
benefits of product layouts
• Cellular manufacturing
• Flexible manufacturing systems
Cellular Production Layout
Layout in which workstations are grouped into a cell that can process items that have
similar processing requirements
• Groupings are determined by the operations needed to perform the work for a set of
similar items, part families, that require similar processing
• The cells become, in effect, miniature versions of product layouts
Typical Order Processing in Process Layout Typical Order Processing in Cellular Layout
Group Technology
The grouping into part families of items with similar design or manufacturing
characteristics
• Design Characteristics:
• Size
• Shape
• Function
• Manufacturing or processing characteristics
• Type of operations required
• Sequence of operations required
Requires a systematic analysis of parts to identify the part families
GT Flow Line
GT Cell
GT Centre
Service Layouts
Two key factors:

• Customer contact
• Degree of customization
Layouts:
• Warehouse and storage layouts
• Retail layouts
• Office layouts
• Restaurant layouts
• Hospital layouts
Some Examples of Good and Bad Layouts

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Production & Operations

Program: FT MBA Core

• Layout that uses standardized processing operations to achieve smooth,

Material Material Material Material

and/or and/or and/or and/or

Dept. A Dept. C Dept. E

Dept. B Dept. D Dept. F

Used for Intermittent processing

• Fixed Position layout

Requires a systematic analysis of parts to identify the part families

Two key factors:

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