Page 227 - DMGT206_PRODUCTION_AND_OPERATIONS_MANAGEMENT

Production and Operations Management

Notes 11.5 Fixed Layout

In this type, the material remains at a fixed position and tools, machinery and men are brought
to the location of the material. Fixed Position Layout is essential when the products are difficult
to move. Need for such type of layouts arises in case of extremely large and heavy products.

Examples: Production of aircraft, ships, dams, bridges, and housing industry.
Figure 11.6: Fixed Layout

R
E Final Product (SHIP)
S
O
U
R
C
E Ship building yard

The advantages of this layout are:

1. This layout is flexible with regard to change in design, operation sequence, labour
availability, etc.
2. It is essential in large project jobs, such as construction and shipbuilding etc., where large
capacity mobile equipment is required.
3. Very cost effective when similar type products are being processed, each at a different
stage of progress.
The limitations of Fixed Position Layout are as follows:

1. Capital investment may be for a one-off product, which can make it expensive.
2. Due to long duration to complete a product, average utilization of capital equipment is
limited.
3. Space requirements for storage of material and equipment are generally large.

Products essentially require high class planning and focused attention on critical activities to
maximize margins.

Self Assessment

Fill in the blanks:
10. In fixed layout, the ……………… remains at a fixed position.
11. Need for Fixed Position of layouts arises in case of ……………… products.

11.6 Cellular or Group Layout

When TI Cycles reorganized its manufacturing plant, it used Group or Cellular Layout to improve
the efficiency of production. Sundaram Fasteners boasts of a Cellular Layout with world-class
control on manufacturing costs. What, then, is Cellular Layout? It is a layout based on group
technology principles. It is a combination of both process and product layout and incorporates
the strong points of both of these. Conventional layouts, product and process layouts, are two
extremes of the spectrum. The specific approach used to reach a group layout may also result in
one of the above two extremes, if the situation so demands.

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