Page 231 - DMGT206_PRODUCTION_AND_OPERATIONS_MANAGEMENT

Production and Operations Management

Notes Comparison of Layouts

We have seen that both product and process layouts have their advantages and disadvantages.
Product layout is desirable by most organizations, even if the low volume and the variety of
their products does not warrant it. Therefore, they have no choice but to go in for good old batch
processing on process layout.

Product layout and process layout represent the two extremes of layout techniques. Cellular
layout had evolved to aid manufacturers with intermittent manufacturing of a high variety of
products with the advantages of a product layout.

Table 11.3: Comparison of Common Characteristics of different Layouts
Process
Factors Fixed position Product (Line) Cellular (GT)
(Functional)
Product Made to Order, Low Standardized Diversified Products Diversified Products,
Volume Product, Large using common Varying volumes,
Volume, Stable Rate operations, Varying
of Output volumes, Varying Rate
of Output
Process Ship building, large Continuous, and Job or small Small to medium batch
scale project, repetitive batch
construction or
industrial project
Arrangement of Facilities move where Placed along the Grouped by speciality Similar parts are
facilities the fixed line of product flow and by function grouped in part-
product/project is in a specialized family; one machines
being implemented sequence of tasks cell is formed which
for each unit contains all facilities
needed by
corresponding part-
family
Cost of layout General purpose Large investment in General purpose Moderate to low
equipment. specialized equipment and
Moderate to low equipment and processes. Moderate to
processes. high
Inventory Variable inventories High turnover of Low turnover of raw High turnover of raw
and frequent tie-ups raw material and material and work in material and lower
because production work in process process, High raw work in process
cycle is generally material inventory
long.
Material Flow variable, often Predictable, flow Flow variable, Flow variable, can be
handling low. May require systemized and handling often reasonably high
heavy duty handling often automated duplicated
equipment
Material travel Variable path Fixed path Often high Fixed path
Utilization of Moderate Very high General purpose High
facilities
Operating General purpose Special purpose Skilled Special purpose
facilities
Employee skill Unskilled/skilled Unskilled Skilled Multi-skilled as one
operator may handle
more than one
operation
Quality/Product Normally 1, as single Large (Q/P) Moderate (Q/P) Small (Q/P)
Variety Ratio product production

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