Page 118 - DMGT501_OPERATIONS_MANAGEMENT

Operations Management

Notes 4.6.4 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 out more about assembly line balancing. Find more information about
the evolution of this concept.

4.7 Fixed Position Layout

In this type, the material remains at a fixed position and tools, machinery and men are brought
to the location of the material. Fixed Position Layout is essential when the products are difficult
to move. Need for such type of layouts arises in case of extremely large and heavy products.
Some of the examples are production of aircraft, ships, dams, bridges, and housing industry.

Figure 4.5: Fixed Layout

R
E Final Product (SHIP)
S
O
U
R
C

E Ship building yard
The advantages of this layout are:

1. This layout is flexible with regard to change in design, operation sequence, labour
availability, etc.
2. It is essential in large project jobs, such as construction and shipbuilding etc., where large
capacity mobile equipment is required.
3. Very cost effective when similar type products are being processed, each at a different
stage of progress.

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