Page 106 - DMGT501_OPERATIONS_MANAGEMENT

Operations Management

Notes 3. Space
4. Constraints
Keeping these in mind, several fundamental choices are available to managers. These choices
are incorporated in the four basic types of layouts:

1. Process layout
2. Product layout
3. Fixed layout
4. Group layout
These basic types of layout should keep in mind the following principles:
1. The emphasis should be on gross material flow, personal space and communication.
2. Socio-technical considerations should play an important part in determining the layout.
3. The layout should facilitate arrangement of physical facilities, which allows most efficient
use of men, machines and materials necessary for the operation to meet the requirements
of capacity and quality.

4. The layout should be based on the premise that a properly designed facility is an important
source of competitive advantage.
It is very difficult to enumerate all the properties of a layout that makes the most efficient use of
men, machines and materials; however the layout should try to:
1. Operate at low cost
2. Effectively use space
3. Provide for easy supervision
4. Provide fast delivery
5. Minimum cost of material handling
6. Accommodate frequent new products

7. Produce many varied products
8. Produce high or low volume products
9. Produce at the highest quality level
10. Worker's convenience and safety
11. Provide unique services or features
Though it is not possible to simultaneously optimize all these factors in the design, a balance
should be maintained. The functional layout for each building, structure or other sub-unit of the
site whether in terms of space allocation or capacity from the Operations Department's point of
view is perhaps the most important level of planning.

4.5 Repetitive Process Layout

Process layout is also known as functional layout. Similar machines or similar operations are
located at one place as per the functions. For example, as will be apparent from Figure 4.2, all
milling operations are carried out at one place while all lathes are kept at a separate location.
Grinding, milling or finishing operations are carried out in separate locations. This functional
grouping of facilities is useful for job production and non-repetitive manufacturing environment.

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