Facilities Design And Layout

Question 1

Facilities design and layout

Answer 1

Involves planning the layout of workspaces to streamline the production process. The best layouts will optimise operations, that is, it will result in improved productivity, satis ed customers and deadlines being met.

Question 2

What to consider when selecting the best layout

Answer 2

Is there enough space for the anticipated volume of production.
Effective use of production equipment and technology.
An adequate location of stock and warehousing requirements.
An efficient flow of the goods or services through the system.
Conformity with legal regulations OH&S.

Question 3

Why is facilities design and layout important

Answer 3

Managers want to achieve the highest level of efficiency in production.
Improved productivity means deadlines are being met and customers will be satisfied.

Question 4

Fixed position layout

Answer 4

A fixed position layout is used when large products are being worked on, and it is more efficient to bring the inputs to the products. The product, because of its size, remains in the one location and the machinery, tools and labour are brought to it.

Question 5

Product layout

Answer 5

In a product layout, machinery and equipment are arranged in line and com- ponents are added to the product in a sequence of steps. A motor vehicle being produced on an assembly line is an example of this type of layout.

Question 6

Process layout, when is it best suited, example of who would use it

Answer 6

A process layout is often referred to as a functional layout, because equipment and machinery that perform a similar function are arranged together. A process layout is best suited to organisations that deal with a variety of products. A manufac- turer of sports shoes or brake pads, for example, would commonly use this type of layout.

Question 7

2 manufacturing only layouts

Answer 7

Fixed position

Product

Question 8

Manufacturing or service layout

Answer 8

Process

Question 9

When is a fixed position layout used

Answer 9

When it is too difficult to move the product.

Question 10

One disadvantage of fixed position

Answer 10

One dis- advantage of the layout is storage — materials needs change constantly, and it can be hard to find space to
store them safely when the inputs are being brought to one temporary construction location.

Question 11

What is the product layout best suited to and how does it usually work

Answer 11

It is best suited to the manufacture of high-volume, standardised goods. Usually, the product would move along a highly automated production line on a conveyor belt.

Question 12

2 advantages of product layout

Answer 12

Cost is reduced because of the use of automated efficient technology, and staff only complete specialised tasks which means staff will have a high level of skill in their particular tasks.

Question 13

3 disadvantages of the product layout.

Answer 13

It can, however, be very expensive to set up a capital-intensive, automated assembly line. Another disadvantage is that staff can become bored with repetitive, low-skilled activities. A problem on the production line can sometimes mean that the whole factory needs to be shut down.

Question 14

Examples of how a service and a manufacturing organisation use a process layout

Answer 14

A process layout lends itself to batch production, as in the case of a bakery, where different types of breads, rolls or buns are manufactured in limited numbers. Each batch would be completed at a production stage and then would move on to another stage. In service organisations such as banks or hospitals, a process layout is used to deal with the different needs of customers.

Question 15

One disadvantage of a process layout

Answer 15

A disadvantage of this layout is that the work can be monotonous for staff, if they are involved only in one stage of the process.

Question 16

S&J Solar Panels is a manufacturing organisation that is rapidly expanding in a growing market. Due to high demand and increasing competition, the Operations Manager began importing partially assembled materials from overseas to keep costs low and save time. As a result, the employees were no longer required to produce entire solar panels. They were, however, required to develop new skills in order to complete
the new production process. S&J Solar Panels now guarantees delivery of solar panels to customers within seven days, whereas competitors operate on a 28-day delivery service.
The new production process had been in place for a period of time when the Operations Manager discovered that many of the imported materials were faulty. As a result, a number of new strategies will need to be introduced.
a. Describe an appropriate facilities, design and layout strategy for the production of solar panels after the importation of parts.

Answer 16

Facilities design and layout is the way in which parts of an organisation is physically set up. For the production of solar panels at S&J Solar, the most appropriate layout will be a product layout. This is when equipment performs a single, set function and all of the products will move allow (generally a conveyor belt) through each stage, getting value added to it. The layout is commonly used for massed production as the solar panels would be produced and it will allow them to be produced quickly and efficiently with a consistent quantity and quality of solar panels. It will be applicable with the new importation of parts as these parts will simply fit into the assembly line. Fewer steps in the line will exist now as the importation of parts will simplify the production process. This layout will be the most appropriate as it will allow for a low cost per unit and a high quality output of solar panels.

Question 17

Explain the relationship between productivity and business competitiveness.

Answer 17

Productivity is a measure of efficiency, that is, the amount of outputs produced compared to the amount of input needed. A productive organisation does not waste time or resources and this is more profitable, allowing it to invest in improving the quality of its outputs, thus allowing it to match or better its rivals. Furthermore, if an organisation runs on time and is a reliable source of goods and services, customers are drawn to it, allowing it to increase its market share and compete with rivals.

Question 18

S&J Solar Panels is a manufacturing organisation that is rapidly expanding in a growing market. Due to high demand and increasing competition, the Operations Manager began importing partially assembled materials from overseas to keep costs low and save time. As a result, the employees were no longer required to produce entire solar panels. They were, however, required to develop new skills in order to complete
the new production process. S&J Solar Panels now guarantees delivery of solar panels to customers within seven days, whereas competitors operate on a 28-day delivery service.
The new production process had been in place for a period of time when the Operations Manager discovered that many of the imported materials were faulty. As a result, a number of new strategies will need to be introduced. Explain a management of quality strategy that S&J Solar Panels could use to improve its operations.

Answer 18

One quality management strategy that could be used is Total Quality Management or TQM. This is an organisation-wide commitment to quality where every function or employee in operations is heavily focused on the quality of their output and ensuring that the product or service is in the condition required by the person next in line, referred to in TQM as the customer. This strategy is focused on setting higher and higher standards and is considered reliable because the quality of the item is checked at every stage, from the receiving of inputs to the packaging or distributing of outputs. While it is time consuming, it ensures that no faults can slip through thus assuring the final customer will have their expectations met. If a product is not fit for purpose at any stage it will not continue through transformation until it is fixed and will be of a high standard for the next customer. TQM makes quality an organisational focus. As the business has had trouble with faults previously, this will ensure that customers never receive a faulty product. This optimises operations as the business is now offering a better quality product therefore customers will be attracted thus increasing competitiveness and productivity will rise as there will be less defects thus less waste.

Question 19

Compare and contrast a facilities design and layout strategy

Answer 19

The product layout and the process layout are similar in that they are both different layouts that can be used to streamline the production process. One difference between the two layouts is that the product layout can only be used for manufacturing organisations as it involves the production of a good rather than a service whereas a process layout can be used to produce goods or services therefore it can be used by a manufacturing or service organisation. Another difference is the product layout is used to produce a standardised product where as a process layout is usually used to produce a variety of products. Another difference is a product layout often requires less labour as it is usually largely technology controlled whereas a process layout usually requires many employees to perform the various activities that are undertaken to produce a wide range of products.

Question 20

Outline two management functions.

Answer 20

Operations is the part of the business that actually produces the good or service. It involves managing the operations system which is the use of processes to transform inputs into outputs.

Human resources refers to he management of the people power that are used by an organisation to achieve objectives. It involves managing the acquiring, maintaining and terminating of employees.