Post on 16-Jul-2015
Unit - IIOperations Management : Principles and Types
of Plant Layout-Methods of production (Job, batch
and Mass Production), Work Study -Basic
procedure involved in Method Study and Work
Measurement
Plant location is the strategic decision. Several factors
influence this decision.
The main objective of business is optimise the costs and
revenues. i.e minimist cost and maximise the revenue.
Factors effecting Plant LocationCloseness to raw materials
Nearness to the markets
Fuel and Power
Transpotation
Availability of Labour
Economies
Government Influence
Political Interference
Plant Layout can be defined as theprocess of determining
a spatial location for a collection ofphysical production
facilities suitable to manufacturing a product.
It is concerning with arranging
The manufacturing and servicing departments in the
factory site
The machinery within these departments
The layout of individual work place
Definitions:
According to Riggs,
“The overall objective of plant layout is to design a physical
arrangement that most economically meets the required
output – quantity and quality.”
According to J. L. Zundi,
“Plant layout ideally involves allocation of space and
arrangement of equipment in such a manner that overall
operating costs are minimized.
Waste movements should be minimised
Work area should be flexible for flow of rawmaterial
Working conditions in the plant should ensure adequate safety
& healthy
Flexible for future changes
Consider space available
Cost shoule be reduced
Role of Plant LayoutIt effects both productivity and profitability
The cost of product/ supply/ demand ratio are directly
effected
Effective plant layout shoule minimise material handling cost
Material handling cost will be high
Production time is lost
Production cost gets highup
Working conditions cannot be any more safe
Returns may be low
Product Layout
Process Layout
Fixed layout
Combined Layout
Advantages:
Faster & Cheaper Production
Lower Cost of Material Handling
Effecgtive Utilisation of floor
space
Easy monitoring
Team Work benefits
Disadvantages:
Discountinuity in production
Monitoring is difficult
Huge capital investment
Little flexibility
Combination layout combines the the advantages of
product layout and process layout
In this the machines are arranged in the process
layout formate and but process grouping arranged in a
sequence
The rate at which the goods and services are produced.
It shows the relationship between the inputs and the output.
It is calculated as a ration between the amount produced and the
amount of resource used in the course of production
Productivity = output/input
Productivity is also called the efficiency of inputs
Job production
Batch Production
Mass Production
Benefits :It directly leads to standardisation of the job process
It determines the cost of the work performed
It save and minimises time since the unnecessary
movements are eliminataed
It enhances productivity of the workers and mahcines
It helps to evaluatae the pereformance of the employee or
deparatment as against hard targets
It enables the workers to earn incentives
It contributes to cost savings
It enahces the employee morale
Line organisation structure
Functional organisation structure
Line and Staff Organisation structure
Committee Organisation structure
Matrix organisation Structure
Virtual organisation structure
Cellular organsiation structure
Team organsiation structure
Boundary less organsiation structure
Inverted pyramid organsiation structure
Lean & Flat organsiation structure
Characteristics:Line authority and instructions are vertical, that is, they flow
from the top to the bottom.The unity of command is maintained in a straight line.All persons at the same level of organisation are independent of
each other.This structure specifies responsibility and authority for all the
positions limiting the area of action.
Merits:SimplicityDisciplinePrompt DecisionsOrderly CommunicationEasy Supervision & Economical
Demerits:Lack of SpecialisationAbsence of Conceptual ThinkingAutocratic ApproachProblems of coordination
Suitability:-It is suitable to small – scale organizations where the number of subordinates is quite small.