MBA 1ST Year Material and Inventory Management Long Question Answers
Q.21. What is the importance of layout? Examine the characteristics of a good layout. Also list out the symptoms of bad layout.
Ans. The importance of a layout would be better annreciated, if we understand the influence of an Sient layout on the manufacturing functions. It makes it smooth and erricient. Upcia such as economics in the cost of handling materials, minimisation of production delays and avoidance
s. It makes it smooth and efficient. Operating efficiencies, hottlenecks all these depend on a proper layout.
An ideally laid out plant reduces manufacturing costs through reduced materials handling, reduced rsonal requirements and reduced in-process inventory.
The objectives or advantages of an ideal layout are outlined below:
1. Economies of Handling: Nearly 30 per cent to 40 per cent of the manufacturing costs are accounted for by materials handling. Every efforts should therefore, be made to cut down on this cost. Long distance movements should be avoided and specific handling operations must be eliminated. A cynic may say that the cheapest way to handle materials is not to handle them at all. But in a factory, materials have to be handled and therefore, the answer to the questions how best to avoid handling depends on layout.
2. Effective Use of Available Area: Every unit of the plant area is valuable, especially in urban areas. Efforts should therefore be made to make use of the available area by planning the layout properly. Some steps for achieving this end are location of equipment and services in order that they may perform multiple functions, developments of up-to-date work areas and operator jou assig for a full utilisation of the labour force.
3. Minimisation of Production Delays: Repeat orders and new customers will be the result of prompt execution of orders. Every management should try to keep to the delivery schedules. Often the deadline dates for delivery of production orders are important to the management. Plant layout is a significant factor in the timely execution of orders. An ideal layout eliminates such causes of delays as shortage of space, long distance movements of materials, spoiled work and contributes to the speedy execution of orders.
4. Improved Quality Control: Timely execution of orders will be meaningful when the quality of the output is not below expectations. To ensure quality, inspection should be conducted at different stages of manufacture. An ideal layout provides for inspection to ensure better quality control.
5. Minimum Equipment Investment: Investment on equipment can be minimised by planned machine balance and location, minimum handling distances, by the installation of general purpose machines and by planned machine loading. A good plant layout provides all these advantages.
6. Avoidance of Bottlenecks: Bottlenecks refer to any place in a production process where materials tend to pile up or produced at rates of speed less rapid than the previous or subsequent operations. Bottlenecks are caused by inadequate machine capacity, inadequate storage space or low speed on the part of the operators. The results of bottlenecks are delays in production schedules, congestion, accidents and wastage of floor area. All these may be overcome with an efficient layout.
7. Better Production Control: Production control is concerned with the production of a product of the right type at the right time and at reasonable cost. A good plant layout is a requisite of good production control and provides the plant control officers with a systematic basis upon which to build organisation and procedures.
8. Better Supervision: A good plant layout ensures better supervision in two ways:
(a) Determining the number of workers to be handled by a supervisor, and
(b) Enabling the supervisor to get a full view of the entire plant at one glance. A good plant layout is, therefore, the first step in good supervision.
9. Improved Utilisation of Labour: Labour is paid for every hour it spends in the factory, The efficiency of a management lies in utilising the time for productive purpose. A good plant layout is one of the factors in effective utilisation of labour. It makes possible individual operations, the process and flow of materials handling in such a way that the time of each worker is effectively spent on productive operations.
Characteristics of a Good Layout
The characteristics of good layout are as follows:
1. Smooth flow of production (i.e. raw materials and workers).
2. Maximum utilisation of available space.
3. Minimum material handling.
4. Smooth movement of men, materials and machinery from place to place.
5. Good working conditions-lighting, ventilation, temperature, humidity, etc. are as per
requirement.
6. Flexibility for change of layout, expansion, change in product design and process.
7. Proper location or storage areas.
8. Facilitates supervision and control.
9. Effective coordination and integration among men, materials and machinery to maximise utilisation and output.
10. Provision of safety and reduction of accidents.
Symptoms of Bad Layout
The symptoms of bad layout are as follows:
1. Congestion of materials, semi-finished goods, finished goods and even of workers.
2. Excessive work-in-progress inventory.
3. Poor utilisation of available space.
4. Excessive material handling distance, time and costs.
5. Excessive maintenance time and costs.
6. Long production cycle time.
7. Delay in meeting the delivery schedules.
8. Difficulty in supervision and control.
9. Excessive damage to materials and products during transportation and storage.
10. Low productivity due to excessive handling costs, storage costs, long cycle times and more
idling of men and machines.
MBA 1ST Year Material and Inventory Management Long Question Answers
Q.22. What information is required for proper planning of plant layout of a factory? Explain major techniques for plant layout.
Ans. For an efficient layout, certain basic information’s are required for proper planning. These can be listed as:
1. Type and quantity of labour required.
2. Dimensional plan of the space to be laid out.
3. Volume of work to be taken from the space at present and in future.
4. Description of the operations, their sequence and standard times in the production process.
5. Nature of machines and equipment needed to perform the operations.
6. Amount of material, bufferstock required at each workstation.
7. Size of finished and semi-finished products inventory.
8. Kinds of communication and fire-exits necessary for the plant.
9. Special requirements if any to fulfil the local by-laws.
10. Special geographical and inspection requirements.
Major Techniques for Plant Layout
Following are the major techniques:
1. Process Flow chart: It is a graphic summary of all the activities to take place on the production floor of the plant. The study of this chart can reveal the operations that can be eliminated, rearranged or simplified to achieve economy in production. The inflexibility of layout can also be ascertained from this chart.
2. Process Flow Diagram: It is both a supplement and substitute of flow chart. It exhibits long material hauls and backtracking of existing layouts indicating how the layout can be improved
3. Machine Data Cards: This is an effective method to provide necessary information for placement or layout of the equipment. These cards are prepared for each machine showing its capacity, space and power requirements, handling needs and the corresponding dimensions.
4. Two or Three Dimensional Replicas or Templates: The most common method of planning a layout is to make replicas of machines, racks, benches and the equipment and then arranging these on the two or three dimensional plan of the floor space.
(a) Two Dimensional Plan or Templates: The method consists of following steps:
(i) Scale drawing of the available floor space is drawn showing the positions of columns, electrical fittings, power, water, gas, elevators, rest rooms and other significant features.
(ii) A layout plan is chalked out by positioning the machine replicas on the drawing.
(iii) Plan is then critically examined with respect to work flow, utilisation of floor space, availability of service facilities like tool sheds, stock rooms, etc.
(iv) Alternative plans are drawn by rearranging the replicas and comparative evaluation is made to select the best layout.
(b) Three Dimensional Plan: To have a better understanding about the depth, height, etc. of machines, scale or miniature models are constructed in place of templates. Here one uses thin figures of men and machines like powers in the game of chess. The three dimensional models are expensive but provides clarity and vividness. The model of a layout can be made by studying the operations involved in the production process:
(i) Key operations are located.
(ii) Locate main and minor gangways. These should be preferred near the walls and not across the floor.
(iii) Locate the subsidiary equipments, viz. rubbish bins, telephones, etc. In a good layout, packing department should be near to dispatching point whereas inspection place should be located near the windows for proper daylight. In addition to this the following specific points should be kept in mind for the layout of machines:
(1) Space occupied by a machine must include some overhang space for the travel of any part or for the movement of material.
(ii) Gangways must be adequate for the collection and delivery of material.
(iii) Floors must be strong enough not only to carry the machine load but also to bear the load of semi-finished and finished goods.
(iv) Servicing facilities and safety devices must be easily accessible.
(v) Sufficient space around the machine must be provided so that operator can move freely to do his work.
5. Scale Models: These models are small replicas of machines and equipments. These three dimensional models indicate the production process on a small scale. Miniature scale models are tiny figures of machines and men. Models are constructed from cardboard, wood, sheet-metal or plastic. These are used for complex layouts involving costly initial investment. They are scale reproduction of different items of equipments such as storage, fixtures, rocks benches, stairs, elevators, handling devices, etc. They are helpful in determining the space required by equipment items and in detecting weaknesses for revision of plans.
Steps in Planning the Layout for a New Enterprise
The steps are as follows:
Step 1. The first thing in planning a layout is to study the objectives, production plan and the nature of machines, equipment and manufacturing operations involved in the production process.
Step II. On the basis of information collected in step I, charts, diagrams and templates are prepared
Step III. Decision about the location of service facilities like criteria, toilets, etc. inside the plant building is taken, keeping into consideration the requirements of the production process and comforts of the workers.
Step IV. The sequence of mechanical operations is studied to fix the position of respective machines performing the respective operations.
Step V. The position of windows, ventilators, electric fittings, drainage system also in the plant building are properly and thoroughly studied.
Step VI. After analysing all the details in steps 1 to 4 drawings of the layout are drawn and the production run is tested.
Step VII. Modifications can be done according to the experience of test runs.