Process Layouts

Module 3
Operations Management
 PLANT LAYOUT
• Plant layout means the disposition of the various facilities (equipment, material, manpower etc.) and
services of the plant within the area of site located.

OBJECTIVES

• Material handling and transportation is minimized and effectively controlled.

• Bottlenecks and points of congestions are eliminated (by line balancing) so that the raw
material and semi-finished goods move fast from one workstation to other.

• Workstations are designed suitable and properly.

• Suitable spaces are allocated to production centers and service centers.

• The movements made by the workers minimized.

Layout can be classified into the following four categories :
process layout

product layout

Group layout(combination layout)

Fixed position layout

 PRODUCT-PROCESS MATRIX
Low volume, Low volume, Higher volume, High volume,
Low Multiple Few major High
standardization products products standardization

Jumbled flow Parts of a

PROCESS Rarely any
(Job shop) machine
LAYOUT company

Disconnected line Batch /Heavy

flow (Batch) equipment

Connected line AssemblyLin

flow (Assembly e/Automobil
Line) e assembly
Rarely any Continuous/
Continuous flow company Oil refinery
PROCESS LAYOUT
Process – Transforming input to output

Layout – Configuration of departments, work centers and equipment.

It is also known as functional layout.

Here similar machines and services located together Ex. All the lathe machines will be at one
place and all milling machines at another place and so on.

This type of layout generally employed for industries engaged in job-shop production and
non-repetitive kind of production.

When there variety of products manufactured at low volume we prefer this type of layout.

Ex. furniture manufacturer company, restaurant etc.

FEATURES
• Wide variety
• Highly customizable
• Less automation
• More manual labor
• Low volume
• Make to Order
• Demand is low and can fluctuate a lot
FEATURES
• More of general equipment
• Fixed costs are low, variable costs are high
• Labor skills required are varied – expertise
• Estimation of cost & time of a custom order takes time.
• Less finished goods stock
WHAT DOES A PROCESS LAYOUT LOOK
LIKE
Milling

Assembly
Grinding
& Test

Drilling Plating
Process Layout - work travels
to dedicated process centers
Product layout
It is also known as line (type) layout.

The flow of product will smooth and logical.

When the machines and auxiliary services are located according to the processing sequence we prefer
this layout.

It implies that various operations raw material are performed in a sequence and the machines are placed
along the product flow line.

The product layout is selected when the volume of production of a product is high such that separate
production line to manufacture it can be justified.

•Assembly line production or mass production prefer this type layout. Ex. Assembly of television sets
assembly of computer key-board etc.
PRODUCT LAYOUT
 Group layout:
In this type of layout a set of machinery or equipment is grouped together in a section so that each
group of machines or equipment is used to perform similar operations to produce a family of
components. These machines grouped in to cells.

It minimizes the sum of cost of transport and the cost of equipment.

WHAT DOES A PROCESS LAYOUT LOOK
LIKE
Milling

Assembly
Grinding
& Test

Drilling Plating
Process Layout - work travels
to dedicated process centers
ADVANTAGES OF PROCESS LAYOUT
• Flexibility
• Variety
• Creativity
• More visual control of activities
• More communication and interaction between peers and supervisors
• High production volume elasticity
• Low obsolescence
ISSUES WITH PROCESS LAYOUT
• Managing ergonomics
• Performance evaluation of staff can be difficult
• Measuring efficiency is difficult
• Low capacity utilization
• Can’t enjoy economies of scale
• Can have high WIP
• Managing the supply chain can be a difficult task
DESIGNING A PROCESS LAYOUT
STEP 1
From-To Chart
DESIGNING A PROCESS LAYOUT
STEP 2
Relationship Chart/ Muther’s Grid
A – Absolutely
necessary
E – Especially
important
I – Important
O – Okay
U – Unimportant
X -Undesirable
DESIGNING A PROCESS LAYOUT
STEP 3
• CRAFT
- Computerized
- Relative
- Allocation of
- Facilities
- Technique
What is Process Layout?
• A process layout is a type of facility layout in which the floor plan is
arranged with similar processes or machines located together.
• For example, a machine shop with mills located together, lathes
located together, saws located together, and so on, is arranged with a
process layout.
• This differs from a product layout in which equipment is arranged
based on sequential steps involved in manufacturing a product, as on
an assembly line.
What is Process Layout?
• Organizations often use process layouts to design floor plans and
arrange equipment for maximized efficiency.
• Plants with a process layout may arrange work stations, machinery,
tools and other equipment in groups according to the functions they
perform.
• Typically, pieces of equipment that perform a similar function fall in
the same group, which is why professionals often term these layouts
as "functional layouts."
• The overall purpose of a process layout is to provide manufacturing
firms the ability to provide a variety of goods or services that each
necessitate multiple processing requirements.
Benefits of a process layout
• Cost reduction: In some cases, organizations can reduce costs by
using a process layout. This is especially true when process layouts
rely on multiple sets of general-purpose equipment rather than
specialized equipment, which can be more costly to purchase and
maintain.
• Flexibility: By using a process layout, organizations can enjoy a high
level of flexibility in the type of processes they can perform and have
the ability to complete various processes simultaneously.
Benefits of a process layout
• Task diversification: In a process layout, employees often perform a
variety of tasks using a combination of machines and equipment,
rather than performing a repetitive task using the same equipment
consistently. Therefore, process layouts can allow organizations to
diversify the tasks of employees, which may improve morale and
satisfaction.
• Functionality protection: Process layouts commonly include multiple
machines of the same type in various arrangements. With this level of
availability, organizations can protect themselves from equipment
failures and maintain operational functionality, even when errors
occur.
Disadvantages of process layout
Inefficient material handling
• Materials have to be carried forward and backward quite frequently.
Mechanization of material handling becomes difficult. Fixed path
material handling equipment like conveyor belts, chutes etc cannot
be used and cost of material handling is quite.

High space requirement

• Space requirement is more than product layout. More storage space
is to be provided around machines for waiting material to be
processed.
Disadvantages of process layout
High investment in inventory
• Due to the lack of continuous flow of production there is high
in-process inventory. Frequently materials have to be carried back
and forth. This results in delays and therefore the investment in
inventory is high.
High supervision cost
• Cost of supervision is high because the number of employees per
supervisor is less resulting in reduced span of control. Further, the
work is to be checked after each operation.
Disadvantages of process layout
Longer production time
• Time required for production is more in the case of process layout.

Skilled labor required

• Skilled labor needs to be employed to perform variety of operations in
general purpose machines.
Example of process layouts in the
manufacturing industry
In the service and repair center of two-wheeler or four-wheeler,
different departments or functions may be there. The arrangement of
these functions or departments is according to the technical or space
needs such as total working staff, machines that are installed, the
average number of total vehicles that the center receives, and any
other needs.
Example of process layouts in the
manufacturing industry
Example of process layouts in the
manufacturing industry
Below are a few steps that any vehicle has to follow while entering the
center:
• Reaching office.
• Informing the concerned staff about the problem type by the
customer.
• The front office staff directs the customer to take the vehicle to the
concerned departments.
• The necessary service is given to the vehicle.
• Customers are further guided to make payment at the front office.
• After making the payment, the customer leaves the service cente
Job Design

• Job design is the study of an individual at work and of their work

methods or techniques. It involves the decisions based on factors like
job content, degree of specialization required and work environment
in the business organization. It also helps managers to carry out job
analysis and develop job specifications.

• Its object is to improve productivity and job satisfaction. It also helps

managers to conduct business activities like orientation, training,
recruitment, and selection.
 Approaches to Job Design:
Job design gives the choice to examine the different tasks of an individual job or the design of a group of jobs.
It includes various approaches like:

1. Job Enlargement:
Job enlargement helps to change the jobs to include more and various type of tasks. It should combine an
interest in the work but may or may not give employees more responsibility.
2. Job Enrichment:
Job enrichment helps to allow the employees to assume more accountability, responsibility, and independence
when learning new works or to allow for new opportunities and greater participation.
3. Job Rotation:
Job rotation shift employees from one task to another task. It categorizes the group tasks among a number of
employees.
4. Job Engineering:
Job engineering or work design allows employees to see how the work methods, structures, layout, and
handling produces link together as well as the combination between persons and machines.
 Objectives of Job Design:
1. Work / Rest Breaks:
• Rest or work breaks help to reduce the problem of inevitable repetitive movements or
static-body positions. More frequent but small-time breaks are sometimes preferable
top fewer long breaks.
• At the time of work breaks, motivate employees to change the body structure and to
exercise. It is very essential that employees use and stretch different muscle groups. If
the employee has been very active a work break should involve a stationary activity.
2. Task Variety:
• To reduce weariness, avoid both repetitive movements and excessive static-body
positions. Designing of a job is required to have a variety of works that require changes in
mental activities, body positions, and others. Two methods are job rotation and job
enlargement.
• For Example, If a worker normally assembles parts, the job may be enlarged to involve
new tasks such as quality control, work planning, and maintenance.
Objectives of Job Design:
3. Provide Training:
• Training is a very essential part to develop the potential of any employee or worker.
Through this, the workers easily understand what is expected of them and how to
work potentially or safely.
• It should be consistent, organized, and ongoing.
4. Allowance for an Adjustment Period:
• When work demands physical effort, have an adjustment time of new workers and
for all workers after layoffs, holidays, or illnesses. Allow time to become normal to
the physical demands of work by gradually “getting in shape”.
• Workers, who work in extra cold or hot conditions, also, need time to accommodate.
Objectives of Job Design:
5. Vary Mental Activities:
• Works should be coordinated so that they are balanced during the day for the single
worker as well as balanced among a group of workers. You may want to allow the
worker some degree of choice as to what kinds of mental tasks they want to do and
when.
• This choice will allow the worker to do works when best suited to their ‘alertness’
patterns during the day. Some individual may prefer regular tasks or works in the
morning (such as checklists in forms).
Benefits of Job Design:
1. Give workers a sense of achievement.
2. Allows for worker input. Workers should have the option to differ activities according to work habits, personal
needs, and the circumstances in the workplace.

3. Includes training facilities so the worker knows what tasks to do and how to do them properly.

4. Provides rest schedules or good work.

5. Provides feedback to the workers about their performance.

6. Allows for an adjustment period for physically demanding jobs.

7. Dynamic work.

8. Minimizes energy expenses and force requirements.

Process Mapping
• A process map visually describes what happens in a business process. Process
mapping involves specifically defining all the steps in a process, who is responsible,
and what the outcome should be, to create a series of steps that work towards an
end result.

• It is quite literally a map to guide you through your business process, identifying the
data, activities, material, and people involved.
Need to map a process
Process mapping is a useful exercise when defining exactly what happens in a process and
understanding the current state of how your organization works. Mapping the linear
sequence of activities that make up a business process helps to identify bottlenecks or
unnecessary steps in the process. Having a visual representation of this makes it easier to
explain both the current state and new changes to users.

For example,
Map the process for onboarding new employees to check that all appropriate people are
informed and all necessary equipment is ready for their start date. Seeing all the steps laid
out gives the opportunity to streamline the process and make it as efficient as possible.
Benefits of process mapping
• Understand processes – visually communicating a business process helps to explain the
process to other users

• Ensure compliance – mapping processes visually shows you are meeting all necessary
requirements and helps to further streamline and standardize processes to strictly adhere to
regulations

• Uncover and eliminate waste – Identify unnecessary steps in your processes so you can make
the process as efficient and possible

• Aid problem-solving – an effective visual diagram helps decision-making and identifying

solutions
Examples of process mapping

• Chain of hotels and casinos – The 5-star hotel has the ability to administer loans to
patrons on its casino floor to enable them to keep playing longer, but this required
intense scrutiny to ensure regulatory compliance. The process was mapped to provide
complete transparency, before it was integrated with the casino’s systems, generating
single-click reports and security checks that were mapped within the process.
• Global logistics organization – Deutsche Post DHL used Bizagi to further connectivity
within its operations, acting as an orchestrator of its tech stack and enabling end-to-end
automation of 24 processes. They now have a 95% automation in the Duty VAT billing
process, handling a daily volume of 2,500 shipments.
• Healthcare provider – A healthcare trust needed to provide its staff with smart cards to
allow secure access to patient information. The new solution was mapped, tested, and
implemented in under four weeks. The cards can now be issued in less than 2 weeks,
ready for new starters, when it used to take up to 6 weeks.