Page 233 - DMGT206_PRODUCTION_AND_OPERATIONS_MANAGEMENT

Production and Operations Management

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

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Case Study Ford’s Assembly Line

hough Ransom E. Olds created the first assembly line in 1901, Henry Ford is
recognized for revolutionizing industry by mass-producing automobiles. Ford
Timproved 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.
Question
What was different in Ford’s approach? What were its advantages?

11.10 Review Questions

1. Compare and contrast the process and product layouts. Give figures and tables to explain
the points.

2. Link capacity and layout. How important it is to consider the capacity of the firm while
designing a layout?
3. Under what conditions does fixed layout work well?

4. With the help of examples, explain the concepts of mixed line layout and retail layouts.
5. Why it is not advisable to have fixed layout for firms producing small size products?
6. ‘Product layout and process layout represent the two extremes of layout techniques.’
Justify the statement with suitable examples.
7. Cellular layout had evolved to aid manufacturers with intermittent manufacturing of a
high variety of products with the advantages of a product layout.’ Explain
8. Discuss the similarities and differences in the objectives of the layout for a continuous
flow process and a batch process.
9. Flexible manufacturing systems try to produce products with large variability on the
same set of equipment with minimal set up times. How does cellular manufacturing help
in this process?
10. For which kind of organizations cellular or group layout is suitable?

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