Page 249 - DCOM506_DMGT502_STRATEGIC_MANAGEMENT

Unit 13: Functional and Operational Implementation

On planning a building for the manufacturing facilities, a number of factors will have to be kept Notes
in mind such as nature of the manufacturing process, plant layout and space requirements,
lighting, ventilating, air-conditioning, service facilities and future expansion.

Plant Layout

Plant layout involves the arrangement and location of production machinery, work centres and
auxiliary facilities and activities (inspection, handling of material storage and shipping) for the
purpose of achieving efficiency in manufacturing products or supplying consumer services.
Plant layout should co-ordinate material, men and machines and achieves the following
Objectives:
1. Facilitate the manufacturing process.
2. Minimise materials handling.
3. Maintain flexibility of arrangement and operation.

4. Maintain high turnover of work-in-process.
5. Hold down investment in equipment.
6. Make economical use of building space.
7. Promote effective utilisation of manpower.

8. Promote employee convenience, safety and comfort in doing the work.
In designing plant layout a number of factors such as nature of product, volume of production,
Quality, equipment, type of manufacture, building plant site, personnel and materials handling
plan should be kept in view.

Maintenance of Equipment

Maintenance of equipment is an important component of planning consideration. It is intimately
linked with replacement policies. Every manufacturing enterprise follows some maintenance
routine in order to avoid unexpected breakdowns and thus minimise costs associated with
machine down time, possible loss of potential sales, idle direct and indirect labour delays,
customer dissatisfaction from possible delays in deliveries and the actual cost of repairing the
machine.

A number of strategies can be adopted for maintenance of machines and equipment. Two most
important ones are carrying excess capacity and preventive maintenance.

Excess Capacity

In carrying excess capacity method an organisation carries stand-by capacity, which is used if
trouble occurs. This excess capacity can be whole machines or it can be major parts or components
which ordinarily take time to obtain. Carrying excess capacity involves cost which must be
compared with costs arising out of a slow-down or a shut-down of a whole series of dependent
operations. Therefore, the decision in this regard is cost trade-offs.

Preventive Maintenance

Preventive maintenance is based on the premise that good maintenance prevents breakdowns.
Preventive maintenance means preventing breakdowns by replacing worn-out machines or
their parts before their breakdown. It anticipates likely difficulties and does the expected needed

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