Page 220 - DMGT206_PRODUCTION_AND_OPERATIONS_MANAGEMENT

Unit 11: Facility Planning and Layout

6. Accommodate frequent new products Notes
7. Produce many varied products
8. Produce high or low volume products
9. Produce at the highest quality level

10. Worker’s convenience and safety
11. Provide unique services or features

!
Caution It is not possible to simultaneously optimize all these factors in the design, a
balance should be maintained.
The functional layout for each building, structure or other sub-unit of the site whether in terms
of space allocation or capacity from the Operations Department’s point of view is perhaps the
most important level of planning.

Self Assessment

Fill in the blanks:

3. The layout should be based on the premise that a properly designed facility is an important
source of ……………… advantage.
4. The layout should facilitate arrangement of physical facilities, which allows most efficient
use of men, machines and ……………… necessary for the operation to meet the
requirements of capacity.

11.3 Process Layout

Process layout is also known as functional layout. Similar machines or similar operations are
located at one place as per the functions.

Example: As will be apparent from Figure 11.4, all milling operations are carried out at
one place while all lathes are kept at a separate location. Grinding, milling or finishing operations
are carried out in separate locations. This functional grouping of facilities is useful for job
production and non-repetitive manufacturing environment.

11.3.1 Process Layout and Material Handling Costs

In process layouts, one of the principles of paramount importance is that centers between which
frequent trips or interactions are required should be placed close to one another.
This has implications in all manner of organizations; in a manufacturing plant, it minimizes
materials handling costs; in a warehouse, stock picking costs can be reduced by storing items
typically needed for the same order next one another; in a retail store, minimizing customer
search and travel time improves customer convenience; in an office where people or departments
must interact frequently are located near one another—both communication and cooperation
often improve and coordination between departments can be less challenging.
There are both quantitative and semi-quantitative methods available for process layouts. We
have studied the Load-Distance Model previously, which is a simple mathematical model that

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