C24: Operation Management MBA Sem - II

1. C24: Operation ManagementMBA Sem - II A Theoretical & Practical Perspective by Prof. Rajkamal 9765900862 padmakars21@gmail.com

2. Unit –II : Facilities Location & Layout • Location & layout - Installation of facilities – Single location, multi-location decisions. • Principles and Types of Facilities Layout. Facility layout planning. Layout and its objectives for manufacturing operations, warehouse operations, service operations, and office operations., principles, types of plant layouts – product layout, process layout, fixed position layout, cellular manufacturing layouts, hybrid layouts, Factors influencing layout changes Padmakar S. - GWCET

3. Mark Distribution: RTM, Nagpur University • Written examination (University) : 70M • Internal assessment (College) : 30M • Attendance • Presentation • Classroom Participation • Activities Participation • Assignment • Sessional Examination Padmakar S. - GWCET

4. University Paper pattern: All Subjects for 70 Marks • Maximum Marks – 70 • Time – Three Hours • Question No. 1 is compulsory • Attempt any TEN questions from Que. No. 1. writeeach answer in 30 words approximately. All questions carry 2 marks • Que. No. 2 to 10: Attempt any 5 questions from question no 2 to question no. 10. writeeach answer in 300 words approximately. All questions carry 10 marks Padmakar S. - GWCET

5. Factors that Multinational firms consider when locating in a Foreign Country • Government stability • Government regulations • Political and economic system • Economic stability and growth • Exchange rate • Culture • Climate • Export and Import regulations, duties and tariffs • Raw material availability • Number and proximity of suppliers • Transportation and distribution system • Labor force cost and education • Available technology • Commercial travel • Technical expertise • Cross-border trade regulations • Group trade agreements Padmakar S. - GWCET

6. Factors Affecting the Plant Location • Primary factor • Supply of raw materials • Nearness to the market • Transport facilities • Labour supply • Availability of power • Supply of capital • Secondary factor • Facilities • Natural factor • Political factor • Government subsidies and facilities • Historical and religious factor • Initial start and goodwill • Personal factors • Miscellaneous factors Padmakar S. - GWCET

7. Types of Facilities • Heavy-manufacturing facilities • Light-industry facilities • Retail and services facilities Padmakar S. - GWCET

8. Determination of unit cost of production & distribution of fixed capital requirement Padmakar S. - GWCET

9. Comparison in connection with selection of location • Urban and Rural • Availability of local market • Labour • Transport facilities • Educational facilities • Cost of land • Restriction on construction • Municipal and public utility services • Postal and communication services • Rate of taxes • Cost of labour • Availability of facilities • Labour turnover • Trade union movement • Training facilities • Transport facilities • Storage facilities • Problem of pollution • Danger of bombardment while war time • Government policies Padmakar S. - GWCET

10. Facilities Layout • It refers to the arrangement of machines, departments, workstations, storage areas and common areas within an existing or proposed facility. • A good layout is one which allows materials rapidly and directly for processing. This reduces transport handling, clerical and other cost down per unit, space requirements are minimized and it reduces idle machine and idle man time – F. G. Moore • Layout Planning: • Layout planning is determining the best physical arrangement of resources within a facility Padmakar S. - GWCET

11. Objective of Ideal / good plant layout • Minimization of material handling cost • Provide enough production capacity • Reduce congestion that impedes the movement of people or material • Effective utilization of installed capacity • Utilize labour efficiently • Effective utilization of manpower through elimination of idle time • Increase employee morale • Elimination of physical efforts required of operative workers • Reduce industrial accident • Better working conditions for the employees like lighting, ventilation, control of noise and vibration • Allow ease of maintenance / high machine, equipment utilization • Better customer service through cheaper and better product supplies according to the delivery promises Padmakar S. - GWCET

12. Factors Affecting the Plant Layout Decision • Type of production • Production system • Scale of production • Types of machines • Types of building facilities • Availability of total floor area • Possibility of future expansion • Arrangement of material handling equipment Padmakar S. - GWCET

13. Importance of Facility Layout • Economies in handling • Effective use of available area • Minimization of production delay • Improved quality control • Minimum equipment investment • Avoidance of bottleneck • Better production control • Better supervision • Improved utilization of labour • Improved employee morale Padmakar S. - GWCET

14. 1 2 3 4 In 5 Workers 6 Out 10 9 8 7 Material Flow System • Horizontal Flow System • “I” type flow • “L” type flow • “U” type flow • “S” or inverted “S” type flow • “O” type flow or circular • Combination of “I” and “U” type flow • Combination of “I” and “S” type flow • Combination of “I” and “O” type flow • Vertical Flow System • Multi-storey building Padmakar S. - GWCET

15. Warehouse operations, Service operations, Office operations • Homework Padmakar S. - GWCET

16. Types of Plant Layout • Process Layout • Product Layout • Mix Combined layout or Hybrid Layout • Fixed or Static Product Layout or Project Layout • Cellular or Group Layout • Job Shop Layout Padmakar S. - GWCET

17. Milling Assembly& Test Grinding Plating Drilling Process Layout - work travels to dedicated process centers Process Layout : Principles • The distance between departments needs to be short as possible with a view to avoiding long distance of movement materials • Machines should be arrange in proper sequence i.e. according to the principles of sequence of operations • Convenience for inspection and supervision • It is used in light and heavy engineering industries, made-to-order furniture industries Padmakar S. - GWCET

18. 222 222 222 111 3333 444 Mill 22222 444 Grind 1111 2222 Assembly 333333333 44444 111 333 Drill 333333 111 111 333 Gear cutting 111 444 Lathes Heat treat Process Layout Padmakar S. - GWCET

19. Advantages of Process Layout : • Reduced investment of machines as they are general purpose machines • Greater flexibility in the production • Better and more efficient supervision is possible through specialization • There is greater scope for expansion as the capacities of different line can be easily increased • Result in better utilization of men and machines • It s easier to handle breakdown of equipment by transferring work to another machines or stations • There is full utilization of equipments • The investment of equipment would be comparatively lower • There is greater incentive to individual worker to increase his performance Padmakar S. - GWCET

20. Disadvantages of Process Layout : • There is difficulty in the movement of materials, mechanical devices for handling • This layout requires more floor space • There is difficulty in production control • Production time is more as work-in-progress has to travel from place to place in search of machines • There is accumulation of work-in-progress at different places Padmakar S. - GWCET

21. Product Layout : Principles • All the machine tools or other items of equipment must be placed at the point demanded by the sequence of operations • There should be no points where one line crosses another line • Material may be feed where they are required for assembly, but, not necessarily all at one point • All the operations, including assembly, testing and packing should be included in the line • Ex. Paper, Sugar, Chemical, Cement, Rubber, Refineries etc…. Raw materials or customer Station 2 Station 3 Station 4 Finished item Station 1 Material and/or labor Material and/or labor Material and/or labor Material and/or labor Padmakar S. - GWCET

22. Advantages of Product Layout : • There is mechanization of materials handling and consequently reduction in materials handling cost • This layout avoids production bottleneck • There is economy in manufacturing time • Facilitates better production control • Requires less floor area per unit of production • Work-in-progress is reduced & investment thereon is minimized • Early detection of mistakes or badly produced item is possible • There is greater incentives to a group of workers to raise their level of performance Padmakar S. - GWCET

23. Disadvantages of Product Layout : • Product layout is known for its inflexibility • Expensive • There is difficulty of supervision • Expansion is also difficult • Any breakdown of equipment along a production line can disrupt the whole system Padmakar S. - GWCET

24. Fixed Layout / Static Product Layout or Project Layout: Raw material Aircraft Assembly • It involves the movement of men & machines to the product which remains stationary • Material or major component remains in a fixed location • Cost of moving men and machines would be less than the cost of moving the product is very large • Manufacture of bulky & heavy products such as locomotive, ships, boilers, aircraft and generators Finished Product (Air craft) Machines & Equipments Labour Padmakar S. - GWCET

25. Advantages of Fixed Layout: • Men and machines can be used for a wide variety of operations producing different products • The investment on layout is very small • The worker identifies himself with the product and takes pride in it when the work is complete • The high cost of, and difficulty in transporting a bulky product are avoided Padmakar S. - GWCET

26. T T T CG CG T T T M M M T T T T SG SG M D D D M M D D D SG CG CG D M M SG D D D Cellular Manufacturing (CM) Layout: • Machines are grouped into cells and the cells functions somewhat like product layout within larger shop or process layout • Few part manufacturing with common characteristics Group (Cellular) Layout Process (Functional) Layout Similar resources placed together Padmakar S. - GWCET Resources to produce similar products placed together

27. Advantages of Cellular Layout: • Lower work-in-progress inventories • Reduce material handling cost • Shorter flow times in production • Simplified production planning (material and labour) • Increase operator responsibilities • Improved visual control • Fewer tooling charges • Disadvantages • Reduced manufacturing flexibility • Potentially increased machine-down time (parts need not be transported between cells Padmakar S. - GWCET

28. H.T. G.G. G.G. Hybrid Layout:(Combined Layout or Group Technology Layout) • A combination of product and process layout • Based on principle of product. Process and fixed layout Product Layout RM Finished product (Gears) RM RM-Raw materials FP- Forging Press HT- Heat furnace GC- Gear cutting machine GG- Gear grinding Process Layout Padmakar S. - GWCET

29. Process and Product Layouts Padmakar S. - GWCET

30. Factors influence Layout change • Primarily the layout of a plant is influenced by the relationship among Materials, Machinery and Men • Raw Materials • Liquid or solid • Light or heavy • Small or large • Availability or scarcity according to seasonal or market condition • Machinery • Product & the workers from Work station to work station • Men / workers • Employee facilities, health & related services, feeding & services • Locker rooms • Safety Padmakar S. - GWCET

31. Factors influence Layout change • Other factors: such as the type of Products • Heavy or light, big or small, liquid or solid • Sales / Demand • Volume of production, quality & size, storage space • Type of Industry • Synthetic • Analytical • Conditioning • Extractive • Location • Management policies • Volume of production • The extent of automation • Making or buying a particular component • Delivery of goods • Purchasing policies Padmakar S. - GWCET

32. Thanks a lot for paying attention !! “Success is not a destination but a process which continues with your consistent performance, so take good care of your success” “True relations have the most unique character like ‘SALT’ their presence is never remembered, but their absence makes all the things tasteless” – Padmakar S. Padmakar S. - GWCET