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Production Operations Management

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Production and Operations Management ­MGT613
VU
Lesson 19
Facilities layout corresponds to configuration of departments, sections, work centers, equipment with
focus being on movement of goods or services or works. A traveler making use of the railway platform,
or bus station or airport would be a good example of work being moved through a facility. Often poor
design of productive system can result in poor design of the facilities layout. After 9, 11, most of the
airports in the western world have shown that they are poorly designed to handle air traffic and
passengers end up paying a heavy price in the form of long waiting hours and even people visit airports
to see of their family or friend travelers end up reaching the lobby area. The reason being no attention
was paid at the time of design or construction to separate boarding lounge form the ticketing counter or
lounge. Such short comings plague organizations and it's the task of the operations manager to ensure
that product as well as service layouts match organizations short as well as long term plans.
Basic Layout Types
The common Basic Layout Types are
1. Product/Service layout. A layout that uses standardized processing operations to achieve
smooth, rapid, high-volume flow
2. Process layout. A Layout that can handle varied processing requirements
3. Fixed Position layout. A Layout in which the product or project remains stationary, and
workers, materials, and equipment are moved as needed
4. Hybrid/Combination. A Layout that makes use of the combination of Product, Process or Fixed
Position Layout.
PRODUCT LAYOUT CHARACTERISTICS
1. Product layouts are used to achieve a smooth and rapid flow of large volumes of goods and
customers through a system.
2. The work is divided into a series of standardized tasks, permitting specialization of both labor
and equipment.
3. The large volumes handled by these systems make it pertinent and necessary to invest in
equipment and job design.
4. Layouts should be arranged to make the best use of technological processing abilities to fulfill
the requirements of both product and services.
5. In manufacturing environments the lines are referred to as production lines or assembly lines,
depending on the type of activity involved.
6. In services side, the word line may or may not be used like Healthcare/Hospital Services line,
Carwash (absence of word line here) or Cafeteria Line.
7. Without standardization, many of the benefits of the repetitive processing are lost.
8. Product Layouts achieve a high degree of labor and equipment utilization, which tends to offset
their high equipment costs.
9. Operations are so closely tied up that a mechanical failure or high absenteeism (rains) would
increase vulnerability of the Systems.
10. We can prevent breakdowns if we religiously follow preventive maintenance schedules,
inspection and replacement of worn parts.
Advantages of Product Layout
1. High rate of output.
2. Low unit cost.
3. Labor specialization.
4. Low material handling cost.
5. High utilization of labor and equipment.
6. Established routing and scheduling.
7. Routing accounting and purchasing.
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Production and Operations Management ­MGT613
VU
Disadvantages of Product Layout
1. Creates dull, repetitive jobs.
2. Poorly skilled workers may not maintain equipment or quality of output of service.
3. Fairly inflexible to changes in volume.
4. Highly susceptible to shutdowns.
5. Needs preventive maintenance.
6. Individual incentive plans are impractical.
A U-Shaped Production Line
1
2
3
4
I
5
Worker
6
Ou
10
9
8
7
A U-Shaped Production Line
Straight Line designs are often not practical because of space constraints. U shape Production Line is
more compact, and requires often half the length of a Straight Production Line.
U shaped Layouts are a must for teamwork where communication is necessary. U shaped Layouts allow
flexibility in work assignments as workers can handle adjacent stations as well as stations on opposite
ends. Sometimes U shaped production line interferes with the cross travel/movement of workers, mobile
equipment. Highly automated processes do not require teamwork or communication, noise or
contamination factors then U shaped Production Lines are not required.
Process Layout
Process Layout
(Functional)
Dept.
Dept.
Dept.
Dept.
Dept.
Dept.
Used for intermittent processing
Job Shop or Batch
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Production and Operations Management ­MGT613
VU
Product Layout
Product Layout
(Sequential)
Work
Work
Work
Station
Station
Station
Used for Repetitive Processing
Repetitive or Continuous
Advantages of Process Layouts
1.
Can handle a variety of processing requirements.
2.
Not particularly vulnerable to equipment failures.
3.
Equipment used is less costly.
4.
Possible to use individual incentive plans.
Disadvantages of Process Layouts
1. In-process inventory costs can be high.
2. Challenging routing and scheduling.
3. Equipment utilization rates are low.
4. Material handling slow and inefficient.
5. Complexities often reduce span of supervision.
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Table of Contents:
  1. INTRODUCTION TO PRODUCTION AND OPERATIONS MANAGEMENT
  2. INTRODUCTION TO PRODUCTION AND OPERATIONS MANAGEMENT:Decision Making
  3. INTRODUCTION TO PRODUCTION AND OPERATIONS MANAGEMENT:Strategy
  4. INTRODUCTION TO PRODUCTION AND OPERATIONS MANAGEMENT:Service Delivery System
  5. INTRODUCTION TO PRODUCTION AND OPERATIONS MANAGEMENT:Productivity
  6. INTRODUCTION TO PRODUCTION AND OPERATIONS MANAGEMENT:The Decision Process
  7. INTRODUCTION TO PRODUCTION AND OPERATIONS MANAGEMENT:Demand Management
  8. Roadmap to the Lecture:Fundamental Types of Forecasts, Finer Classification of Forecasts
  9. Time Series Forecasts:Techniques for Averaging, Simple Moving Average Solution
  10. The formula for the moving average is:Exponential Smoothing Model, Common Nonlinear Trends
  11. The formula for the moving average is:Major factors in design strategy
  12. The formula for the moving average is:Standardization, Mass Customization
  13. The formula for the moving average is:DESIGN STRATEGIES
  14. The formula for the moving average is:Measuring Reliability, AVAILABILITY
  15. The formula for the moving average is:Learning Objectives, Capacity Planning
  16. The formula for the moving average is:Efficiency and Utilization, Evaluating Alternatives
  17. The formula for the moving average is:Evaluating Alternatives, Financial Analysis
  18. PROCESS SELECTION:Types of Operation, Intermittent Processing
  19. PROCESS SELECTION:Basic Layout Types, Advantages of Product Layout
  20. PROCESS SELECTION:Cellular Layouts, Facilities Layouts, Importance of Layout Decisions
  21. DESIGN OF WORK SYSTEMS:Job Design, Specialization, Methods Analysis
  22. LOCATION PLANNING AND ANALYSIS:MANAGING GLOBAL OPERATIONS, Regional Factors
  23. MANAGEMENT OF QUALITY:Dimensions of Quality, Examples of Service Quality
  24. SERVICE QUALITY:Moments of Truth, Perceived Service Quality, Service Gap Analysis
  25. TOTAL QUALITY MANAGEMENT:Determinants of Quality, Responsibility for Quality
  26. TQM QUALITY:Six Sigma Team, PROCESS IMPROVEMENT
  27. QUALITY CONTROL & QUALITY ASSURANCE:INSPECTION, Control Chart
  28. ACCEPTANCE SAMPLING:CHOOSING A PLAN, CONSUMERíS AND PRODUCERíS RISK
  29. AGGREGATE PLANNING:Demand and Capacity Options
  30. AGGREGATE PLANNING:Aggregate Planning Relationships, Master Scheduling
  31. INVENTORY MANAGEMENT:Objective of Inventory Control, Inventory Counting Systems
  32. INVENTORY MANAGEMENT:ABC Classification System, Cycle Counting
  33. INVENTORY MANAGEMENT:Economic Production Quantity Assumptions
  34. INVENTORY MANAGEMENT:Independent and Dependent Demand
  35. INVENTORY MANAGEMENT:Capacity Planning, Manufacturing Resource Planning
  36. JUST IN TIME PRODUCTION SYSTEMS:Organizational and Operational Strategies
  37. JUST IN TIME PRODUCTION SYSTEMS:Operational Benefits, Kanban Formula
  38. JUST IN TIME PRODUCTION SYSTEMS:Secondary Goals, Tiered Supplier Network
  39. SUPPLY CHAIN MANAGEMENT:Logistics, Distribution Requirements Planning
  40. SUPPLY CHAIN MANAGEMENT:Supply Chain Benefits and Drawbacks
  41. SCHEDULING:High-Volume Systems, Load Chart, Hungarian Method
  42. SEQUENCING:Assumptions to Priority Rules, Scheduling Service Operations
  43. PROJECT MANAGEMENT:Project Life Cycle, Work Breakdown Structure
  44. PROJECT MANAGEMENT:Computing Algorithm, Project Crashing, Risk Management
  45. Waiting Lines:Queuing Analysis, System Characteristics, Priority Model