These are class notes for PGDM second semester students.

1. Types of Plant Layout
• Layouts can be classified into the following
Types of Layout: Product Layout categories:
v/s Process Layout – Process Layout
– Product Layout
Presented By: – Combination Layout
Anupam Kumar – Fixed Position Layout
Reader
SMS Varanasi – Group Layout
E mail: anupamkr@gmail.com
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Process Layout Process Layout
• In process layout: • Advantages: • Disadvantages:
– All machines performing similar type of operations – Machines are better – Material handling cannot
utilized and fewer be mechanized
are grouped together at one location. machines are required – Process time is
– Production volume remains limited. – Flexibility of equipment prolonged
– The production happens in batches or lots. & personnel is possible – Lower productivity due
– A large variety of products can be produced from – Lower initial investments to number of set-ups
the same plant. – Higher utilization of – Throughput time is
production facility longer
– Backtracking and long movements reduces the – Diversity of tasks makes – Space & capital is tied up
material handling efficiency. the work challenging & by work in progress/
– Space and capital are tied up in WIP inventory. interesting. process.
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Product Layout Product Layout
• The product layout is selected when the • Advantages: • Disadvantages:
– Reduced material – No flexibility in the
volume of production is high enough to justify handling activities. production process.
a separate production line. – Work In Process almost – Low flexibility in the
eliminated. manufacturing times.
• In this type of layout, the machines and – Minimum manufacturing – High capital investment.
auxiliary services are located according to the time. – Every workstation is
processing sequence of the product. – Simplification of the critical to the process.-
production planning and The lack of personnel or
• The facilities are arranged to ensure efficient control systems. shut down of a machine
flow of material and lower cost per unit. – Tasks simplification. stops the whole process.
– Monotonous work.
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2. Combination or Matrix Layout Combination or Matrix Layout
• A combination layout combines the advantages of
both the process and product layouts.
• It is used when the same item is being manufactured
in different types or sizes.
• In this, the machines are arranged in the process
layout format but process grouping is arranged in a
sequence.
• The sequence of operation with each of the product
variety however remains the same.
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Fixed Position Layout Group Layout or Cellular Layout
• This type of layout is suitable when one or a few • Group Layout is also a combination of Product and
identical heavy items are to be manufactured. Process Layout.
• The materials are kept fixed because the cost of • It identifies the families of components that require
transportation of material is very high. similar types of requirements and machines which
• In this type of layout, are clubbed together as cells.
– the material or the major component remain fixed and • The cellular layout is also called a multi-objective
– the tools, machinery, men and other materials move layout because this layout tries to minimize
around it. – The sum of the cost of transportation
• This type of layout is also called project type layout. – The cost of equipment
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Group Layout or Cellular Layout Layout Design
Process (Functional) Layout Group (Cellular) Layout • ABC Electronics has a facility with six production areas.
A cluster • It proposes to locate 6 departments (A,B,C,D,E,F), which have the
or cell number of moves per day between departments as shown in the
T T T CG CG T T T
table below.
M • What type of layout would be suitable for the facility?
M M T
T T T SG SG • Develop a layout for the facility.
D D M D
M M D D D
SG CG CG D
A B C D E F
M M D D D SG
A 5 10 3 2
1 2 3
B 12
Resources to produce similar products 4 5 6
Similar resources placed together
placed together C 10 4 8
D 16
E 7
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3. Bibliography
• Buffa, E.S. and Sarin, R.K., “Modern Production/Operations Management,” Eighth Edition.
Singapore: John Wiley & Sons (Asia). 1994.
• Martinich, J.S., “Production and Operations Management: An Applied Approach”, Singapore: John
Wiley & Sons (Asia), 2003.
• Badi, R.V. and Badi, N.V., “Production and Operations Management”, Second Edition, New Delhi:
Vrinda Publication, 2008.
For further details… • Chary, S.N., “Productions and Operations Management,” Third Edition, New Delhi: Tata McGraw
Hill, 2004
• Goel, B.S., “Production Operations Management”, Twenty Second Edition, Meerut, U.P.: Pragati
Prakashan, 2010.
• Kachru, U. “Production and Operations Management: Text and Cases,” New Delhi: Excel Books,
2007.
Contact • Rama Murthy, P., “Production and Operations Management,” New Delhi: New Age International,
Anupam Kumar 2012.
• Chunawalla, S.A., and Patel, D.R., “Production and Operations Management,” Mumbai: Himalaya
Reader Publishing House, 2006.
• Jauhari, V. and Dutta, K., “Services: Marketing Operations and Management,” New Delhi: Oxford
SMS Varanasi University Press, 2010.
• Verma, H.V., “Services Marketing: Text and Cases,” New Delhi: Dorling Kindersley, Pearson
E mail: anupamkr@gmail.com Education, 2009.
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