Page 226 - DMGT206_PRODUCTION_AND_OPERATIONS_MANAGEMENT

Unit 11: Facility Planning and Layout

worker has to do a particular operation, which hardly ever changes due to standardized production Notes
line. In product layout the flow of material is smooth and continuous.
The various advantages of product layout are summarized below in the following points:

1. Capital costs spread over many units
2. Narrow tasks reduce training costs
3. Allows wide span of supervision
4. Low material handling costs

5. Routing and scheduling is automatic
6. High labor and equipment utilization
7. Accounting, purchasing, inventory control are fairly routine

Notes Limitations of Product Layout
The widespread use of assembly-line methods both in manufacturing and in the service
industry has dramatically increased output rates. Historically, the focus has almost always
been on full utilization of human labour, i.e., to design assembly lines minimizing human
idle time. However, there have been questions raised if this is the best approach. The
example of ABC Electricals, demonstrates this.
Though research has tried to find optimal solutions to product layout system, some of the
basic limitations of the system are identified below:
1. Layouts are relatively fixed and changes in product design are difficult to
accommodate.
2. Product variety is very much limited.
3. Breakdown of a particular machine in a production line halts the production output
of the entire line.
4. Capital investment in machines is often higher as compared to process layout and
duplication of machines in the line is part of this cost.

5. There is limited flexibility to increase the production capacities.

Task Find more about assembly line balancing. Find more information about the
evolution of this concept.

Self Assessment

Fill in the blanks:
8. Product layout is used for ……………… operations, where the part variety is less, production
volume is high and part demand is relatively stable.
9. The assembly line concept is applicable on products that can be produced with
……………… parts.

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