In Process Layout , all operations of the same type are grouped according to the general function they perform, without regard to any particular product. Conceptually, same type of operations are performed in the same area. For example, all drilling machines may be grouped together in one area., All milling equipment will be in another work center and, work involving spot welding is still another.
The Process layout is used advantageously where :
1. Volume is low.
2. Variety of Products is many.
3. The demand for the product is small or intermittent.
4. General - purpose, low cost machines are desirable.
5. Machines or processing producing unwanted noise, vibration fumes, or heat can be located in isolated areas.
This type of layout is exemplified in custom job shop , department stores, hospitals etc.
Advantages Of this type Of Layout are :
1. Better machine utilization allows lower machine investment.
2. Adaptable to a variety of products and to frequent changes in sequences of operations.
3. Readily adaptable to intermittent demands.
4. Makes easier the continuity of product in the event of :
i) Machine - break down.
ii) Storage of Materials.
iii) Absent of Workers.
5. Permits Easier Maintenance
6. Allows incentives pay system to individual workers to raise the level of their performance.
Disadvantages of Process Layout are :
1. Operations cost per unit may be higher - often much higher because of the slow operation of the general purpose machines used.
2. Work routing, scheduling, and cost of accounting are costly due to separate costing of every new order.
3. Materials handling and transportation costs are high since products follow different routes every time and use of conveyors becomes uneconomical.
4. Inventories of materials in process are high and large storage space is required because of slow movement of materials.
5. Difficult to keep a good balance between labor and equipment needs.
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