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Unit 4: Process Selection and Facility Layout
The limitations of fixed position layout are as follows: Notes
1. Capital investment may be for a one-off product, which can make it expensive.
2. Due to long duration to complete a product, average utilization of capital equipment is
limited.
3. Space requirements for storage of material and equipment are generally large.
Products essentially require high class planning and focused attention on critical activities to
maximize margins.
Example: You work in facilities engineering. You want to find the cost of this layout.
The cost of moving 1 load between adjacent dept. is $1. The cost between nonadjacent dept. is $2.
Solution: In above table total cost is $ 570
Can we get a layout cheaper than $570? There are 6! Or 720 possibilities. Putting departments 1
& 3 adjacent to each other gives a total cost of $480.
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