Page 222 - DMGT206_PRODUCTION_AND_OPERATIONS_MANAGEMENT

Unit 11: Facility Planning and Layout

ABC analysis of inventory systems, products that do not have significant effect on the total Notes
production pattern, have not been shown in Table 11.1. However, care must be taken to ensure
all significant products and product groups are included.
Figure 11.4: Schematic Representation of Material Flow

The input-output information on all the departments is computed and reflected in a schematic
diagram. This is called the Material Flow Diagram. The schematic material flow diagram for our
example is shown as Figure 11.5. The steps involved in creating the material flow diagram in the
Spiral Method are:
1. Draw a circle to represent each department or activity area.
2. On the left side of the circle draw a line to represent incoming material from each activity,
which immediately precedes the activity of interest for any product group.
3. On each line to the circle indicate the quantity or per cent of total activity between the two
sequence steps.

4. At the right of the circle draw a connecting line that denotes where the material has to go
when the operation has been completed.
5. These lines tell us the quantity or percentage of total activity represented by the completed
material.
These five steps give schematic representation of various departments and their material inflow
and outflow. Remember, totals have to tally.

Example: Take the store figures. The total that leaves the store has to equal 91.5, the
figure given in Table 11.1. Similarly, the total reaching ‘stock’ will also be 91.5. You also have to
ensure that inputs and outs are balanced for each activity or department.
Space requirements also need to be computed. Based on the size and number of machines
to be installed and the space available for the layout, the minimum space required is worked
out. The requirement of space for each department, for Anand Parvat Industries, is shown in
Table 11.2.

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