Production and materials management

Product Layout is better than Process Layout Do you agree? Justify your answer. Draw
a Layout for a company manufacturing Mobile Handsets?
Definition of Plant Layout:
-

Plant Layout is the integrating phase of production system.

The basic objective of layout is to develop a production system that meets
requirements of capacity and quality in the most economy way.
Plant Layout is of two types
o Process Layout
o Product Layout

Definition of Process Layout:

-

Process Layout is based on the function performed by a department.

In process Layout, similar process or machines or equipment of the same
function are grouped together in a separate department.
In Process Layout, separate department is established for each specialized
operation of production and machine relating each functions are assembled
there.
Example: Welding department will perform welding operations for the benefit of
all the lines of production.

Definition of Product Layout:

-

Product Layout, the materials flows through the predetermined channels of

operations from the receipt of raw materials to fabrication of various components
parts to final assembly.
The parts flow from machine to machine moving a short distance
at a time until all required operations are completed.
Product Layout is designed for the flow type of production where continuous or
repetitive operations are carried on to produce on to produce large quantities of a
standardized product.
Example: Flow of materials in automobile industry.

Product Layout is better than process Layout for the following reasons:
1) Smooth Flow of Production:
Product Layout:
This layout ensures steady flow of production with economy because
Stoppage of work at different points of production is eliminated and
avoided due to proper arrangement of machines in sequence.
Process Layout:
In this layout, flow of production is interrupted because the machines are
not arranged in a definite sequence of operation.
2) Economy in manufacturing time:
Product Layout:
In this layout materials are fed at one end of the machine and the finished
product is collected at the other end, there is no transportation of raw
materials backward and forward and thus it shortens the manufacturing time
Process Layout:
This layout takes longer time for production because the work necessary
for loading the machines must be delivered to each department and after
the processing the work is to be held for inspection.
3) Mechanization of Material Handling:
Product Layout:
Since the machines are arranged in sequence of operation, the
continuous flow of materials in a line through quickly and economically.
Process Layout:
In this layout there will be no definite channels through which all the work
will flow.
4) Savings in material Handling Cost:
Product Layout:
In this layout product moves from one machine to other machine
automatically hence no transportation cost is required till the completion
of manufacturing process.
Process Layout:
Since there are not definite channels of work flow, it leads to
Materials are delivered to each department to process.
Materials may return to the same department more than one for
processing and this makes back tracking of work which makes
higher material handling cost.

5) Lesser Work-in-Progress:
Product Layout:
The work-in progress is minimum and negligible under this type of layout
because the process of production is direct and uninterrupted.
Process Layout:
Since there is no specific flow of work and the process of production is
not direct, the work in progress is more than product layout.
6) Easy Inspection:
Product Layout:
Production process is integrated and continuous, defective practice can
be easily detected and segregated. This makes the job of inspection easy
and economical.
Process Layout:
Each department will have strict inspection responsibility before it goes to
the next department for manufacturing process. So its not easy like
product LAYout.
7) Maximum utilization of available space:
Product Layout:
Under this type of layout machine are arranged in sequence of
operations and it makes the maximum utilization of space available.
Process Layout:
Under this layout greater space is required for service activities; there is
greater need for aisles, temporary storage at each department
8) Effective utilization of available resources :
Product Layout:
Effective utilization of men, machine and material because:
1. Minimum possible movement of worker from one place to other.
2. Lesser Wastage of materials.
3. Lesser work in progress.
4. Mechanisation of material handling.
Process Layout:
As in the case of product layout this is not possible because it doesnt
have definite channels of flow of work.

9) Production control greatly simplified :

Product Layout:
Under this layout, production control is possible by planning of operations
and visual control replaces much of paper work because of which fewer
records are used.
Process Layout:
Under this layout, production cannot be planned and control as like
product layout because the similar process machines are grouped together
and it takes long inspection and allows back-tracking of materials.
10) Low cost labor and easy recruitment and training:
Product Layout:
In this layout special semi automatic and automatic machines are used to
manufacture or in each stage of process and thus it effectively utilize low
cost unskilled and semi skilled labor and recruitment for such candidates
are easy and training is also made easy.
Process Layout:
Under this layout, skilled workers are required to operate general purpose
machines doing variety of jobs. Recruiting such candidate is not so easy in
short time and also at the same time wage rate will usually be high.

Layout for a Mobile manufacturing company (Nokia):

RAW
MATERIALS

10

FINISHED
GOODS
STORAGE

Raw Material Supply from suppliers:

- Most electronic components, from resisters and capacitors to highlyintegrated circuits, are delivered by suppliers on reels of tape, protected in
circular plastic cases.
1) The Foundation: A Printed Circuit Board (Soldering Process):
At the heart of every Nokia phone is a slender strip of plastic covered with a
latticework of basic circuits and settings for the installation of chips and other
electronic components. Here, printed circuit boards enter the paste printing

machine, which lays down a patterned layer of solder paste, made from a tincopper-silver alloy. The paste is later melted in an oven to bind electronic
components to the board.
2) Providing the Parts (Loading Process):
Reels of components are loaded onto spindles. From there, they feed into
automated "pick-and-place machines" that grab individual parts off the tape
and lay them precisely onto the printed circuit boards. Nokia uses mostly
"surface mount" components that lie flat on the board.
3) Laying Down the Basics (Laying Process):
Circuit boards travel down a belt from one pick-and-place machine to the
next, and by the time they reach the end of the line, all the basic components
have been installed. After the parts are in place, the boards go to an oven for
seven minutes, where the solder paste is melted and the parts become firmly
attached.
4) Quality Testing:
The first quality test takes place after the basic components have been
installed.
5) Configuring (Software Installation Process):
The boards are advanced automatically on tracks into the "flash and
alignment" stage, where basic software is first installed into programmable
components.
6) Assembly and configuring Process:
A robotic arm lifts the board off the track and puts it into a bay. There, the
chips on the board are configured with low-level settings, such as what power
level the phone will operate on.
7) Testing Process:
Then, a series of electronic tests are administered to ensure that the circuit
board is perfect, all the parts work, and that they have been correctly installed

8) Fixing camera and LCD displays:

At this stage, the hand work begins. Here, a worker plucks digital camera
modules from a reel and installs them with tweezers onto assembled, tested,
printed circuit boards. The expensive and fragile liquid-crystal display screens
are also added by hand.
9) Protection covers Fixing:
A nearby worker performs another essential task by hand: sandwiching the
completed printed circuit board between front and back structural frames,
later adding the outside covers.
10) Adding Functionality:
The last step in the production turns a generic phone into one customized to
the exacting specifications of mobile-phone users around the world.
11) Unique Serial numbering process:
Each handset is put into a cradle, where it is given a unique serial number,
known as its IMEI code.
Then, depending on who the customer is, a unique batch of software code is
pumped into the phone.
12) Diagnostic Test:
Finally, the phone and installed software undergo a battery of diagnostic
tests. From this point forward, the IMEI code links each individual phone to its
intended customer.
13) Final Inspection Test (by human eye):
It seems quaint after all the high-tech assembly and testing, but before every
Nokia phone goes into a box, it's inspected one last time by an unmatched
resource: the human eye. Only a tiny fraction of phones fail this final test.
Then, before being packed, the phone is de-ionized to remove dust and
electrical charge from the surface.
14) Packing
Phones are packed into retail boxes by hand, with appropriate documentation
and accessories, and then logged into a tracking system using a bar-code
reader.

Finished Goods Storage:

Phones packed into retail boxes are grouped territory wise and order wise in
ware house. From there it is dispatched to specific places based on the
orders

What type of maintenance is more effective? Make a comparative analysis of various

types and conclude. Do you feel that the type of maintenance differ from industry to
industry? Why?
Maintenance:
The primary goal of maintenance is to avoid or mitigate the consequences of failure of
equipment. The efficient use of plant and equipment is a vital factor for industrial growth;
this is possible only by means of proper and effective maintenance program.
Maintenance practices are broadly classified in to: Breakdown maintenance &
Preventive Maintenance.
But Preventive maintenance is more effective than other System:

Maintenance System:
1. Planned maintenance
a. Preventive Maintenance -------Running& Shut down Maintenance
b. Corrective Maintenance -------Breakdown & Shut down Maintenance
2. Unplanned maintenance -------Emergency maintenance.
Effective maintenance Practices and Analysis of various Maintenances practices:
Preventive maintenance:
-

Preventive maintenance is an attempt to prevent any probable breakdowns

resulting in production stoppages.
Preventive maintenance consists of routine actions taken in a planned manner to
prevent breakdowns.

It is based on the slogan : Preventive is Better than Cure or Stitch in time

saves nine

Preventive maintenance is a systematic maintenance procedure where the

condition of plant or equipment is constantly watched or monitored through a
systematic inspection to reduce the incidence of breakdowns by taking
preventive action.

Prventive Maintenance Activits: Direct Activits & Indirect Activits

1.Direct Activites:
1. Cleaning of the equipment
2. Lubrication to prevent wear
3. Programmed Replacement
2.Indrect Activites:
1. Failure statistics
2. Adjustments to limit wear
3. Periodic Inspection
Preventive Maintenance Function:
1. Preventive Maintenance of production departments:
-

Production department directly contributing to the production operation & so the

maintenance is strategic in nature. It includes
o

Anticipatory inspection

Routine Maintenance

Anticipatory inspection & Servicing of Equipments:

1. Time scheduled inspection to monitor or watch the equipment to detect wear and
tear of the equipment or plant by all the production department`
2. Predetermined schedule is prepared by plant engineers and it will be conducted
during night , week-end days, holidays so that production flow may not be
interrupted.
Routine Maintenance:
It involves:
1. Cleaning of workbench
2. Cleaning, greasing, oiling of machines.
3. Tightening of bolts
4. Recharging of batteries

5. Replacement of lamps in plant area.

6. All the above actions are done in routine and repetitive nature & is done more
frequently than anticipatory inspection.
2.Preventive maintenance of plant services:
-

Thought they do not directly involve in production activities but plays key
role in the production operations.
It is equally important when compare to other plant services.

It involves in the following areas / equipment in the plant

i. Grounding & Flooring
ii. Buildings
iii. Power Plant
iv. Material Handling Equipment
v. Water Supply
vi. Waste Disposal System
vii. Store Room
viii. Tool Room
ix. Time Keeper Office
x. Fire fighting facilities
xi. Fleet of transport vehicles.

------------copy the notes made by me--------------------------------------Do you feel that the type of maintenance differ from industry to industry? Why?
Different types of maintenance practices are followed in different industry and
also inside the same plant.
In a plant where the process is critical, there production team or maintenance
team undergoes periodic maintenance to avoid break down and stoppage of
production.
In a plant where the process is not critical, there break down maintenance will be
practiced.

In a plant where there is no stand by machines, preventive maintenance is

followed whereas when there is standby machine, breakdown maintenance is
followed to avoid further cost on maintenance.
For economical reason: breakdown maintenance may be followed
When the plant capacities exceed the market demand then there will not be
chance for preventive maintenance in that case they go breakdown maintenance,
in order to capture the timely business and earn more profit during demand
period. but the same time the plant may go for shut down maintenance in the off
season period.
Seasonal business like sugar factory they go preventive maintenance during offseason period and they may go for shut maintenance during seasonal period.
But now a days all the factory will have separate team TPM (total preventive
maintenance) to prevent stoppage of production.

Some of the conditions are:

Breakdown maintenance is suitable for the following condition:
Copy my notes:
Preventive maintenance is carried on as under:
Copy my notes: