Fairfield Institute of Management and Technology

TOPIC OF RESEARCH PROJECT

PRODUCT LOCATION AND LAYOUT

Name of the Subject:-

PRODUCTION AND
OPERATION
MANAGEMENT

Subject Code:- 303

Submitted to: Submitted by:

Name: TARUN SHARMA

DR. SHWETA Enrollment no:444514017181

Course:BBA(G)
Semester/Section: 5th/(D)
PRODUCT
LOCATION
AND
LAYOUT
TABLE OF CONTENT:-
S.NO TOPICS PAGE.NO
1. Introduction 1
2. Objective 2
3. Product location 3
4. Factors 4
influencing
product location
5. Location 4-5
selection factors
6. Product layout 5-6
7. Objective of 6
product layout
8. Advantages 7
9. Disadvantages 7
10. Design of 8
product layout
11. Types 9
12. Conclusion 10.
13. Biblography 11.
INTRODUCTION:-
Of all the pieces of the planning puzzle, product
location is the most strategic and critical. Once you
build a new manufacturing facility, you have made a
substantial investment of time, resources, and capital
that can’t be changed for a long time. Selecting the
wrong location can be disastrous.
OBJECTIVE:-

To develop further understanding of the theories and

concept covered in the course
To develop a practice of learning new aspects of the
subject and develop a habit of research related to the
subject
 PRODUCT LOCATION AND LAYOUT

PRODUCT LOCATION:-

A product location is a record of a product at a location where it is stocked or

sold. For example, an item warehouse record in your order management
system corresponds to a product location. Order Broker keeps track of
availability information for the product location, including the available quantity
and the date and expected quantity of any open purchase orders

Why is Correct Product Location So Important?

For most brick and mortar businesses, product location is a vital part of
business. A retail store wants to put its best, trendiest, most popular, and most
expensive merchandise at the front of the store because the owners know that
these are the products that are not only going to lure more customers into the
store, but they are also the products that customers most want. Making your
products easy to find and showcasing products that you want your customers to
buy is essential in ensuring customer satisfaction and guaranteeing a purchase.

Believe it or not, the concept of product location is equally vital for your online
business. If you are not categorizing and placing your products appropriately on
your website, your customers may feel the same frustration that you felt when
you couldn’t find your brands in the grocery store.

If anything, product location plays an even more vital role in the success of your
online business than it does in the success of a brick and mortar store.
Customers who physically walk into a store are more likely to stick around until
they finally find the product they’re looking for. Website users have much less
patience; if they can’t find the products they’re looking for quickly, most users
will simply leave your site and go somewhere they can find their products with
greater ease.In order to make the most of your SEO campaign, it’s important to
maximize the efficiency of your website by making your product locations easy
for your users to understand and navigate.
Factors Influencing Product Location :-

If the organization can configure the right location for the manufacturing
facility, it will have sufficient access to the customers, workers, transportation,
etc. For commercial success, and competitive advantage following are the
critical factors:

1. Customer Proximity: Facility locations are selected closer to the customer as to

reduce transportation cost and decrease time in reaching the customer.
2. Business Area: Presence of other similar manufacturing units around makes business
area conducive for facility establishment.
3. Availability of Skill Labor: Education, experience and skill of available labor are
another important, which determines facility location.
4. Free Trade Zone/Agreement: Free-trade zones promote the establishment of
manufacturing facility by providing incentives in custom duties and levies. On another
hand free trade agreement is among countries providing an incentive to establish
business, in particular, country.
5. Suppliers: Continuous and quality supply of the raw materials is another critical
factor in determining the location of manufacturing facility.

Location Selection Factors:-

For a company which operates in a global environment; cost, available infrastructure, labor
skill, government policies and environment are very important factors. A right location
provides adequate access to customers, skilled labors, transportation, etc. A right location
ensures success of the organization in current global competitive environment.

Industrialization

A geographic area becomes a focal point for various facility locations based on
many factors, parameters and issues. These factors are can be divided into
primary factors and secondary factors. A primary factor which leads to
industrialization of a particular area for particular manufacturing of products is
material, labor and presence of similar manufacturing facilities. Secondary
factors are available of credit finance, communication infrastructure and
insurance.

Errors in Location Selection

Facility location is critical for business continuity and success of the

organization. So it is important to avoid mistakes while making selection for a
location. Errors in selection can be divided into two broad categories behavioral
and non-behavioral. Behavioral errors are decision made by executives of the
company where personal factors are considered before success of location, for
example, movement of personal establishment from hometown to new location
facility. Non-behavioral errors include lack of proper investigative practice and
analysis, ignoring critical factors and characteristics of the industry.

Location Strategy

The goal of an organization is customer delight for that it needs access to the
customers at minimum possible cost. This is achieved by developing location
strategy. Location strategy helps the company in determining product offering,
market, demand forecast in different markets, best location to access
customers and best manufacturing and service location.

PRODUCT LAYOUT:-
Plant layout is a plan for effective utilisation of facilities for the manufacture of
products; involving a most efficient and economical arrangement of machines,
materials, personnel, storage space and all supporting services, within available
floor space.
An effective product layout ensures that there is a smooth and steady flow of
production material, equipment and manpower at minimum cost. Facility layout
looks at physical allocation of space for economic activity in the plant.
Therefore, main objective of the facility layout planning is to design effective
workflow as to make equipment and workers more productive.

Objectives of product Layout:

(i) Streamline flow of materials through the plant

(ii) Minimise material handling

(iii) Facilitate manufacturing progress by maintaining balance in the processes

(iv) Maintain flexibility of arrangements and of operation

(v) Maintaining high turnover of in-process invent

(vi) Effective utilisation of men, equipment and space

(vii) Increase employee morale

(viii) Minimise interference (i.e. interruption) from machines

(ix) Reduce hazards affecting employees

ADVANTAGE OF PRODUCT LAYOUT:-

1. Reduced material handling cost due to mechanized handling systems and

straight flow

2. Perfect line balancing which eliminates bottlenecks and idle capacity.

3. Short manufacturing cycle due to uninterrupted flow of materials

4. Simplified production planning and control; and simple and effective

inspection of work.

DISADVANTAGES:-

1. Lack of flexibility of operations, as layout cannot be adapted to the

manufacture of any other type of product.

2. Large capital investment, because of special purpose machines.

3. Dependence of whole activity on each part; any breakdown of one machine

in the sequence may result in stoppage of production.

4. Same machines duplicated for manufacture of different products; leading to

high overall operational costs.

5. Delicate special purpose machines require costly maintenance / repairs.

Design of product Layout

Principles which drive design of the facility layout need to take into the
consideration objective of facility layout, factors influencing facility layout and
constraints of facility layout. These principles are as follows:

 Flexibility: Facility layout should provide flexibility for expansion or modification.

 Space Utilization: Optimum space utilization reduces the time in material and
people movement and promotes safety.
Capital: Capital investment should be minimal when finalizing different models of facility
layout.

Types of product Layout

There are six types of product layout, and they are as follows:

 Line Layout
 Functional Layout
 Fixed Position Layout
 Cellular Technology Layout
 Combined Layout, and
 Computerized Relative Allocation of Facility Technique.
CONCLUSION :-
Layout enhancement of a production plant is a common problem.
Although, the use of SLP provides sequential steps to develop layout;
it is generally considered as slow and time consuming process. The
case study of switch gear facility presented in this paper consumed six
months to depict the existing state and propose the new layout. This
study attempts to illustrate the use of modified SLP procedure and
also uses a simplified approach in layout selection criteria. The new
layout successfully increased the overall productivity of the facility.
Results prove improvement in distance which ultimately reduces lead
time and increases value addition.
BIBLOGRAPHY:-
1. Books:- dr. F.c Sharma
2. Wikipedia
3. Website:- www.google.com