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 It refers to the arrangement of machinery, equipment and other
industrial facilities- such as receiving & shipping departments,
tool rooms, maintenance rooms and employee amenities- for the
purpose of achieving the quickest and smoothest production at
the least cost
 Layout planning in manufacturing & service organizations deals
with the physical arrangement of various resources that are
available in the system with an objective to improve the
performance of the operating system, thereby providing better
customer service
 A good layout design ensures that a vast majority of jobs in a
manufacturing system travel shortest distances possible to ensure
shortest processing time.
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 Õequential arrangement Functional grouping of

of activities activities
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 Õtandardized, Made to Varied products, Made
stock products to order
Y  Õtable Fluctuating


 High Low


  Õpecial Purpose General Purpose

 
Limited Õkills Varied Õkills

  Low-In Process High-In Process

High- Finished Goods Low- Finished Goods
Õ Õ Õmall Large

   Fixed Path Variable path

  Efficiency Flexibility

  Low High


 No bottlenecks Wasteful Backtracking


  Less inspection Requires more

inspection

More automated Less use
machines used
u It is a straight line layout
u It is also called Assembly line Layout or Continuous
Production Õystem
u The flow of manufacturing is streamlined
u In this system the product passes through all the machines in a
sequence
u It is single product oriented appropriate for standardized
product and for large volume-less variety production
u Raw materials are also standardized
u Products are made for anticipated demand rather than for
orders
u E.g. Bottling of beverages, car manufacture, cafeteria, Fast
food restaurants, chocolate manufacturing, electronic products,
sugar, customer served in a queue, television sets, pencils, and
computers, automatic carwash.
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Advantages:
(1) Low total flow time of the product from the input stage to the
output stage (i.e. higher rates of output/productivity) due to:
(a) Continuous flow without intermediate stoppages and
storages;
(b) Repetitive, small, fragmented jobs learnt to perfection by
the concerned workers; and
(c) Minimum set-up times of machines.
(2) Lesser inspection required
(3) Lower degrees of skills in the manpower
(4) Lower work-in-process inventories
(5) Production promptly
(6) No bottlenecks in production
Yisadvantages:
(1) None or very little variety possible.
(2) Inflexibility
(3) Entire line or significant portions of the line may come to a
grinding halt if any equipment in the line breaks down,
resulting in high stoppage costs.
(4) Larger maintenance crew needed.
(5) Very low job variety and therefore lower job satisfaction and
higher boredom for the workers.
(6) More coordination required by supervisors.
(7) Yuplication of machines and equipments may be necessary
resulting in higher capital investment.
(8) More space may be required.
(9) Additional output not possible
u It is also called Functional Layout or Intermittent Production
system
u Production is done for customers orders rather than forecasted
demand i.e. customized products are produced
u Components are made for inventory and combined for different
customers differently
u The machines and equipments of similar types are grouped
together and placed in one area
u Product here is given secondary consideration and process has
dominance
u Õequence of production process is as per requirement of each
individual product i.e. no single sequence of operations follow
u This layout can produce different variety of products in
relatively small batches
u E.g. Airplanes, Medicines, Hospitals, Banks, Fashion House
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A B C
Radiology Laboratory Lobby &
Waiting

D E F
Examining Surgery & Physical
Rooms Recovery Therapy
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Advantages:
(1) Very high degree of variety in products is possible.
(2) Greater flexibility
(3) Machine breakdowns do not cause crippling production
stoppages.
(4) Requires small maintenance crew.
(5) Good level of variety, skills requirement and therefore
higher job satisfaction.
(6) Effective supervision
(7)Low capital investment
(8) Easy expansion
Yisadvantages:

(1) Production planning and control is more complex

(2) Frequency of inspection
(3) Larger processing time
(4) Higher work-in-process inventories
(5) More handling of materials
(6) Wasteful backtracking
 It includes both the advantages of process & product
layouts
 Machines are placed in a group
 Each machine cluster or cell makes a family of parts
or components which needs near identical processing
Advantages:
1. Reduced material-handling costs
2. Quick manufacturing
3. Reduced In-Process inventory
4. More automated production
Yisadvantages:
1. Lower manufacturing facility
u It is generally employed in large project types of
organizations
u Product manufactured is very bulky and hard to move
u Production remains stationery
u Men, machine, materials are brought to construction site
u E.g. Õhips, Airplanes, buildings construction
Advantages:
u Less investment in layout
u Avoidance in transportation of bulky materials



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u It is a combination of several layouts
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