2009

Product & Process

layout

ALAN Y. CABALUNA
PRODUCTION AND OPERATION
MANAGEMENT
7/18/2009
 Product & Process layout
July 18, 2009

Layout

Refers to the configuration of Departments, works centers, and equipment, with particular
emphasis on the movement of work (customer and materials through the system. Decisions
in anyone of the design areas are usually have the impact towards the others; thus both
layout and location decisions affect capacity. Conversely, effort to increase capacity may
involve modification in layout and changes In the location. More over there are layout
implications anytime a new location is established, or product or services are introduced or
change.

As in the other areas system design, layout decisions are important for three basic
reasons:

1. They acquire substantial investment of money and effort

2. They involve long term commitments of money and effort difficult to over come

3. They have significant impact on cost and efficiency of operations

The need for layout decisions

The need for layout decision arises both in the process in designing new facilities
and in redesigning existing facilities. In the latter instance, the most common reasons
for designing of layouts includes:

a. Inefficient operation (high cost)

b. Accident or safety hazards

c. Changes in design of the product and services

d. The introductions of new Product and services

e. Changes in the volume of output or mix of outputs

f. Changes in Method of equipment

g. Changes in the environmental or other legal requirements

h. Morale problems (lack of face to face contact)

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The three (4) basic layout designs

1. Product layout (sequential) used for intermittent processing

2. Process layout (functional) used repetitive processing, repetitive or continuous

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July 18, 2009

3. U-shape layout

4. Fixed line layout

Product layouts (flow-shop layout) are most conducive to repetitive processing

and it’s used to achieve a smooth and rapid flow of large volumes of goods or
customers through a system. This is made possible to a highly standardized goods
and services that allow standardized, continual process.

Main Advantage of Product layout

• A high rate of output

• Low unit cost due to high volume; the high cost specialized equipment is spread all
over many units
• Labor specialization reduces training cost and time and results in a wide span of
supervision
• Low material handling cost per unit; material handling is simplified because units
following the same sequence of operations.
• A high utilization of labor equipment
• Routing and scheduling are established in the initial design of the system; they do not
require much attention once the system is operating.
• Accounting, purchasing and inventory control are fairly used

Main Disadvantage of Product layout

• The intensive division of labor usually creates dull, repetitive jobs that provides little
opportunity for advancement for advancement and may lead to morale problems,
and to repetitive stress injuries.
• Poorly skilled workers and exhibit little interest in maintaining or in the quality of
output
• The system is fairly inflexible in response to changes in volume of output or changes
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in the product
• The system is highly susceptible to shutdowns caused by equipment breakdowns or
excessive absenteeism
• Preventive maintenance, the capacity of quick repairs and spare parts inventory are
necessary expenses
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Field of works

The works is divided into series of standardized task and permitting specialization of
both labor and equipment. The large volume handle by this systems usually make it
economical to invest substantial sums of money and in equipment and in job design
because only one of few very similar items are involve, it is feasible to arrange the
entire layout to correspond to the technological processing requirements of the
product and services.

Ex; Manufacturing approach: operation required a sequence

1. Cutting

2. Sanding

3. Painting the appropriate pieces of equipment would be arrange in the

same sequence and because each items follows the same sequence of
operation

In manufacturing environment the lines are refer to as production lines or assembly lines,
depending on the type of activity involve. In service process term line may or may not be
used. It is common to a cafeteria.

A product layout achieves a high degree of labor equipment utilization, which tends to offset
their high equipment cost. Because Items move quickly from operation to operation. The
amount in work in process is minimal.

In manufacturing environment the lines are referred to as production lines or assembly lines
Depending on what type of activity involved.

Production line considered standardized layout arranged according to the fixed system or
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production task.
Assembly line considered standardized layout arrange according to the fix sequence
assembly.

Figure 1.1 shown the a flow line for production or service

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Begin Workflow

Figure 1.2 Cafeteria Line: Illustrate of a typical cafeteria serving line.

Tray Bevera
Main
Desser Potato and ge cashie
salad cours
vegetable
Bread
r
t e
silver

Process layout (job-shop layout) is designed to process item and provide services that
involve a variety of processing requirements. The variety of jobs that are process requires
frequent adjustment to equipment. This causes discontinuous workflow which referred to an
intermittent processing. The layouts featured departments or functional grouping in which
similar kinds similar kinds of activities performed.

Ex.

1. Infrastructure design according to their department

2. A process of Machine shop which has separate departments for Milling, grinding,
drilling and so on.
3. Car servicing
4. Hospital Patient requiring various test
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Advantages of process layouts include:

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July 18, 2009

• Flexibility. The firm has the ability to handle a variety of processing

requirements.
• Cost. Sometimes, the general-purpose equipment utilized may be less costly
to purchase and less costly and easier to maintain than specialized
equipment.
• Motivation. Employees in this type of layout will probably be able to perform a
variety of tasks on multiple machines, as opposed to the boredom of
performing a repetitive task on an assembly line. A process layout also allows
the employer to use some type of individual incentive system.
• System protection. Since there are multiple machines available, process
layouts are not particularly vulnerable to equipment failures.

Disadvantages of process layouts include:

• Utilization. Equipment utilization rates in process layout are frequently very

low, because machine usage is dependent upon a variety of output
requirements.
• Cost. If batch processing is used, in-process inventory costs could be high.
Lower volume means higher per-unit costs. More specialized attention is
necessary for both products and customers. Setups are more frequent, hence
higher setup costs. Material handling is slower and more inefficient. The span
of supervision is small due to job complexities (routing, setups, etc.), so
supervisory costs are higher. Additionally, in this type of layout accounting,
inventory control, and purchasing usually are highly involved.
• Confusion. Constantly changing schedules and routings make juggling
process requirements more difficult.

Figure 1.4 Process layout sample as functional approach

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Departmen
tA Departmen Departmen Department
tC tE G
A
Departmen Departmen Departmen Department
tB tD tF H

U-shape line

It has the number of advantages that may it worthy of consideration. One disadvantages of a
long straight line is that it interferes with a cross-travel of workers and vehicles. A U-shape
lined is more compact; it often requires approximately half of a length of production line. In
addition A U-shape line permits communication among workers among the line because
workers are clustered, thus facilitating teamwork. Flexibility in works assignments is
increased because workers can handle not only adjacent stations but also stations on
opposite sides of the line, Moreover; if materials enter the plant at the same point that
finished product leaves it and minimizes material handling.

Figure 1.3 shown the U-shape line Page2

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Fixed-Position layouts (product and projects remains stationary, and workers and
material and equipment are move as needed)

In fixed position layouts, Item being worked on remains stationary and workers, materials,
are moved about as needed. This is marked contrast to product and process layout. Almost
always the nature of the products dictates this kind of arrangement. Weight, size, bulk, or
some other factors that makes undesirable or extremely difficult to move the product or
project. Fixed position layouts are used in:

Large construction
Large Projects (government) buildings, power plant, dams, shipbuilding,
Production of large aircraft and space mission rockets

References:

• Production and Operation Management 7th edition by Willian J. Stevenson

• ABHIJEET SINGH (Coca Cola Industrial Report Production and operation
Management)
• Prof. Kaushik Paul Associate Professor Operations Area

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