PRODUCTION MANAGEMENT- QUESTIONS AND ANSWERS ON PLANT LOCATION AND LAYOUT

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QUESTIONS AND ANSWERS:

1.      What factors should be considered in determining the appropriate location for the plant?

Answer:

Any decision regarding location should be based on a critical assessment of the desirable and undesirable aspects of the various location alternatives.  The ideal location is described as one where the unit costs of manufacturing and distribution are at the minimum and where price and volume of sales will generate maximum profit.  The various factors, tangible and intangible, quantifiable and unquantifiable, affecting the location decision are below:

i.                    Proximity to sources of Raw Material

ii.                  Proximity to Market

iii.                Transportation facilities

iv.                 Labour

v.                   Power, fuel and utilities:

vi.                 Waste Disposal

vii.               Land and Zoning requirements

viii.             Taxes and permits

ix.                 Community size

x.                   Competition

xi.                 Community facilities

xii.               Industrial estates

xiii.             Future Expansion Plans

xiv.             Community Attitudes  

xv.                

2.      Explain the following concepts:

i.                    Process Layout

ii.                  Product Layout

Answer:

We have two types of Layout which are Process Layout and Product Layout:

(a)   Process Layout: In a process layout, all machines equipment performing similar tasks or used for similar processes are grouped together in one area or department.  A firm employing it may for example, layout all stock preparation equipment in one area and all assembly equipment in another.  Firms using the intermittent type of manufacturing operation usually favour this layout.

As a same machine or where a product is being manufactured in relatively low volume.  Moreover, when a standard product is not being produced in large quantity, process layout is usually more desirable because of the flexibility it allows. 

Process layout, however, has the following drawbacks:

-          Difficulties in scheduling

-          Routing and controlling manufacture

-          High material costs

-          Problems of co-ordination and control resulting from the wide range of variations in manufacturing

(b)   Product Layout:  According to this layout, all the machines and equipment needed to make a specified product are set out in the same area and in the sequence employed in the manufacturing process.  It is used mainly by firms having a high demand for products that are more or less standardized.  It is very useful therefore in firms using the continuous type of production system.

Product layout makes automation and mechanization more feasible, encourages labour specialization, and eliminates product routing problems.  Other advantages claimed for product layout are that it makes labour and material flow more easily controllable,  reduces the need for area inspection, permits better utilization of floor space and makes for fewer materials handling problems.

On the Other hand, it has the following disadvantages:

-          It is relatively inflexible

-          It is economically feasible only in manufacturing extremely large quantities.

-          It is useful only for a given product where the balancing of production lines is possible

-          It may be costly for products that are susceptible to changes in trend, technology and preferences.

-          It requires higher capital investment.

3.      Discuss the steps in Assembly Line Balancing

Answer:

The Steps in balancing an assembly line are straight-forward:

i.                    Specify the sequential relationship among tasks using a precedence diagram.  The diagram consists of circles and arrows.  Circles represent individual tasks, and arrows indicate the order of task performance.

ii.                  Determine the required cycle time (C ) using the following formula: 

C=   Production time per day

             Output per day

iii.                Determine the theoretical minimum number of work stations (N_t) required to satisfy the cycle time constraint, using the following formula:

N_t = Sum of task time (T)

           Cycle Time (C )

iv.                   Select a primary rule by which tasks are to be assigned to work stations and secondary rule to break ties.

v.                   Assign tasks, one at a time, to the first work station until the sum of the task times is equal to the cycle time, or no other tasks are feasible because of time or sequence restrictions.  Repeat the process for work station 2, work station 3, etc.  until all tasks are assigned.

vi.                 Evaluate the efficiency of the balance derived suing the formula:

Efficiency =                               Sum of task time (T)____________

                     Actual number of work station (N_t) x Cycle time (C)

vii.               If efficiency is unsatisfactory, rebalance, using a different decision rule

References:

Nathaniel C. O.  (2002 -2010), Production Management Concepts and Cases, Enugu: Precision Publishers Limited.

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