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Production and Operations Management
Notes With the changing perceptions of consumers, many feel that process layout is best limited to
cases where the volumes are so low and the differences between products are so great that line
flow processes, batching, and cellular manufacturing are not feasible.
Self Assessment
Fill in the blanks:
5. Process layout is also known as ……………… layout.
6. The objective of the ……………… analysis is to arrange the departments in such a manner
that the transportation costs of material handling are minimized.
7. The ……………… method also follows the same basic idea as the ‘Travel Chart Technique’,
but with some operational differences.
11.4 Product or Line Layout
A product layout is also called a line layout. In this type of arrangement, the various facilities,
such as machine, equipment, work force, etc., are located based on the sequence of operation on
parts. Where the facility is needed again after few other operations, the facility is duplicated as
required by the sequence of operations.
Product layout is used for continuous operations, where the part variety is less, production
volume is high and part demand is relatively stable. Though Ransom E. Olds created the first
assembly line in 1901, Henry Ford is recognized for revolutionizing industry by mass-producing
automobiles.
Ford improved upon Olds’ assembly line idea by installing conveyor belts and converting Olds’
idea into a moving assembly line. According to Ford, he developed the idea by watching the
sequence of operations in a meat factory. By using a moving assembly line, Ford was able to cut
the time of manufacturing a Model T from a day and a half to a mere ninety minutes. The
assembly line concept has remained more or less similar since 1913.
The assembly line concept is applicable on products that can be produced with identical parts.
Since each part is identical and can be replaced with an identical part, the entire production
sequence can be predetermined in careful detail. This permits each task to be minutely studied
by engineers and managers to find ways to make the sequence quicker and cheaper.
Using better work methods, specialized equipment and tools, and extensive employee training
the speed of producing the product can be increased and the cost decreased. This is the basic
concept of the assembly line.
Advantages of Product Layout
The product layout has various benefits. It facilitates the effectiveness and efficiency in production.
Less work in process (WIP) inventory is required in case of product layout, as the flow of
material is continuous along a line. Compared to process layout, product layout requires less
space for same volume of production.
In product layout Conveyorized material handling or automation in the material handling is
cost effective, as the flow of material is well known. The throughput time (or product cycle time)
is not as much of as compared to process layout. This is because of fewer chances of congestion
and less waiting time on machine.
In the product layout, Simple production planning and control and better coordination of different
activities may be achieved. The skill level of workers possibly will be lesser, as a particular
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