Business Layout

Question 1

Why is business layout important ?

Answer 1

It is important because it impacts the level of production and productivity of the firm. The firm must ensure that they organize it in should a way that the time it takes to the product to move from one production unit to another is minimized.

Question 2

What is process (functional) layout ?

Answer 2

This is where machinery and equipment with the same function are grouped together in a particular area in the production facility and the product being produced will be transported to the different areas.

Question 3

What are the advantages of process layout ?

Answer 3

1. It has a relatively low set up cost in the investment of machinery and equipment as these machineries can be reused to make other products.
2. It has a relatively low overhead cost.
3. Each department has its own specialized supervision.
4. If one machine breaks down it wouldn’t halt the entire production process.

Question 4

What are the disadvantages of process layout?

Answer 4

1. Skilled labor is required therefore this adds to the production cost.
2. If it is not organized properly it can result in serious production delays
3. There will be a greater need for storage as a result of a lot of work in progress.

Question 5

What is product layout ?

Answer 5

It is used to facilitate both flow and mass production. It is where machinery and equipment are organized in accordance to its progressive step the product go through in the production process. It facilitates the continuous moving of the product through the different stages. There is no going back and forth as the path is along a straight line.

Question 6

What are the benefits of product layout?

Answer 6

1. The operation are usually uninterrupted.
2. Time lags are reduced and output is produced at a faster pace.
3. Mass production usually results in a low per unit production cost.
4. It requires little storage cost or space requirements as there is less work in progress.

Question 7

What are the disadvantages of product layout ?

Answer 7

1. The initial capital outlay can be very high
2. If there is a break down in one of the machinery it results in the entire process being halted.
3. There is little flexibility in terms of variations of the particular product. I’m

Question 8

What is fixed position layout?

Answer 8

It is where the product remains in the particular location and all the tools, machinery and equipment are bought to that location to work on the product( produce it). This is because the product may be too bulky and weighty and carrying it around maybe impractical. For example : house or shop

Question 9

What are advantages of fixed position layout ?

Answer 9

1. There is some amount of flexibility in production, since adjustments can be can made to the design of the job.
2. The firm can save on material handling cost can the product is not transported to and fro
3. If there is a shortage in material or workers it is easy to make that adjustment

Question 10

What are the disadvantages of fixed position layout ?

Answer 10

1. Production is costly and takes a long time to be completed
2. The business may have to secure a large storage space near the product to keep the materials. Which can be very costly.
3. If there is more than one project or product being made it can cause competition to be stiff in terms of the supply equipment and machinery resulting in conflict .

Question 11

What is cellular layout ?

Answer 11

It is based on a concept called group technology. This is where different equipment and machinery are grouped in the same work center known as a cell. Each cell produces parts of the product with the same shape and same processed required in manufacturing the product. Machines in a cell are laid in the mini assembly. It is often where a large variety of products are being produced in smaller batches. It is mixture of both product and process layout.

Question 12

What are the benefits of cellular layout ?

Answer 12

1. Since worker work in teams there morale may improve.
2. It reduces material handling cost and inventory as it combines several stages of production
3. Workers expertise is improved due to repetitive tasks
4. Offer better quality control

Question 13

What are the disadvantages of cellular layout?

Answer 13

1. There may be a greater need for training and scheduling worker.
2. There would be a higher set up cost as it needs to investment more capital.
3. Some cells may have higher production volumes than other cell leading to poorly balanced cells.