POM NOTES

BY Mrs P HOVE
TOPIC ONE

INTRODUCTION TO POM
 Production Def

• Production means application of

processes to the raw material to add the
use and economic values to arrive at
desired product by the best method,
without sacrificing the desired quality.
 Operations def

• Operations involves decisions, functions and

processes
• These are activities that help change raw
materials into outputs.
 Management def

• Management is the planning, organizing,

controlling and leading in an organization.
 POM Def

• Production and Operations Management is

defined as the design, operations, and
improvements of the transformation process,
which converts the various inputs into the
desired outputs of products and services
• Traditionally men, materials and machinery
are the most considered resources. However
present trends show that technology is the
most important resource to production and its
advancement/breakthroughs control both
capital and labour.
• Empirical evidence on the American economy
by Solow cited by Lee (1988) and Skinner
(1995) indicated the growth in the American
economy from 1906-1949 was attributed to
12.5% capital and Labour whereas
technological breakthroughs contributed
87.5%.
• In addition time factor is also important in
production i.e. the cost escalation of capital as
a result of a delay in implementing projects.
Thus technology, capital and time are
important input resources for production in
addition to men, materials and machinery
• POM involves inputs, processing desired outputs
• Inputs are the primary resources which are
needed to add value to end products
• Value is added through transformation
• The transformation is arrived at through human
resources and capital
• For every end product there is more than one
input
• The process of transformation is a cost, but
the value added to the resources should be
more than the value of the cost on production
and cost on inputs this is because profit
should be attained.
• The process of production and operation
determines the end products
• It also determines the price of the product.
 Process of Production and Operations

• This is the process of changing inputs of

labour, capital, land and management into
outputs of goods and services.
• Once the goods and services are produced,
they are converted into cash to acquire more
resources to keep the conversion process
alive.
 diagram
• The process can be illustrated as follows:

random
Inputs fluctuations
• Land Outputs
• Labour Adjustment Conversion Monitor o • Goods
needed output
• Capital process • Services
• management

Comparison:
Actual vs Desired
FEEDBACK
• The creation of goods or services involves
transforming or converting inputs into
outputs.

• Transformation processes can include storing,

transporting, repairing, mixing etc
• To ensure that the desired outputs are
obtained ,an organization takes
measurements at various stages in the
transformation processes i.e. feed back.
• And then compares them with the previously
established standards to determine whether
corrective action is needed. i.e. control.
• There is need for feedback always. Feedback
helps to improve the product and raw material
quality.
• It is the design operation and improvement of
the production processes that creates a
business production or services.
• There is need to design the operation systems
in terms of the lay- out and the sequence to be
followed as this improves operations.
• Improvement shows that there is no perfect
production. There is need to be on the
outlook to put the best product on the hands
of the customer.
• When an organization has to operate as a unit
it should observe the following
• Market place
• Corporate strategy
• The finance operations and the marketing
strategies
• The inputs or customer materials
• There is need to identify who the
organization's customers are and also that are
they willing to have what we are producing
• Come up with the strategy on how you are
going to satisfy the needs of the customers
• Organizations pursue their strategy to gain a
competitive advantage.
• The operation strategy should spell out how
the organization will employ its production
capabilities to support corporate strategy
• The operation strategy should spell out how
the organization will employ its production
capabilities to support corporate strategy.
 The operation strategy

• It can be divided into three:

a) The long term decision / strategic decision
• There is need to focus ahead e.g. buying
equipment or machinery
b). The production to be made
• The product should be profit oriented at the
end of the day.
c. The capacity
• There is need to know the quantity that can
be housed at the firm

• N.B Production should increase as one

company grows.
 Differences between Manufacturing and
service operations
• A conversion process that includes
manufacturing yields a tangible output
(product) whereas a conversion process that
include a service yields an intangible output
e.g. a certain performance or effort. The two
operations can be distinguished in terms of
the following characteristics:
• Tangible/intangible nature of output
• Consumption of output (product long time )
• Nature of work
• Degree of customer contact (Product little)
• Customer participation in conversion.
Role of Production and Operations Manager

The primary roles:

• To meet the production target and delivery
schedule of goods and services planned.
• To optimise the utilisation of resources in the
process of converting them into products or
services.
• The survival of any organisation depends on the
ability of the Manager to make a profit in the
process of converting inputs into outputs.
The PO Process from the Point of view
of an Entrepreneur
Entrepreneurship represents the thrust of
management principles and practices.
An entrepreneur has to first decide about the
product or service he would provide to
customers.
He then decides on the most suitable process
to be used.
• Deciding the location of the facility and the
planning of the facility layout and the planning
of the capacity facility are done almost at the
same time.
• From the planning to then commissioning of
the plant the project is handled by the
entrepreneur.
• The inventory management and the materials
required have to be budgeted and planned so
that operations can start.

• The output generated by the production

process has to be monitored during the
process to ensure that desired standards are
met.
The Production Operations Framework

• The P.O.F can be divided into 5ps to produce a

useful conceptual framework of the
production operations manager.
 Product

• It is the most obvious embodiment of the

interface between marketing and production.
• It is not sufficient that the customer requires
the product; the organization must be capable
of producing it.
• Agreement therefore must be reached
between all the business functions on such
matters as performance, quality, reliability,
quantity, selling price and delivery dates.
• External factors not to be taken into
considerations such as the need of the market,
existing culture and the legal constraints.
• Also internal factors must be examined such
as the compatibility of a new product or
service with existing systems and whether a
new enterprise will excessively increase the
variety of activities being undertaken within
the organization.
•  
 2) Plant

• To make a product, the plant is the core area

where the product is manufactured
• It includes both the buildings and the
equipment
• The plant which accounts for the bulk of the
fixed assets of the organization must match
the needs of the product, of the market, of
the operator and the organizations.
 3) Process

• -The decision on the product or service

creation is made by bringing together the
technical and original needs of the product
and the organization and the people within
the organization.
• In deciding upon a process it is necessary to examine
such factors as
a Available capacity
b Available skills
c Type of production / operation
d Layout of the plant and equipment
e Safety
f Maintenance requirements
g Costs to be achieved
 4) Programs

• -Timetable setting down dates/ times for the

transfer of products/services to the consumer
are the visible expressions of the production/
marketing interface and effectively determine
cashflows are the controller of original
viability.
•  
 Cont.
• If programs are not appropriately agreed then
programming becomes the art of reconciling
irresponsible promise with inadequate
resources.
• Timetables need to be generated for
purchasing, transforming, maintenance
storage and transport.
 5) People

• -production from the first to the last depends

upon people.
• - Humans are variable ie i. intellect in skills and
expectations.
• - The production or operations manager
should be involved in decisions on safety
condition of work, motivation, education and
training and wages.
 Conclusion

• The production operations management is an

amalgam on all the 5ps aspects of work
people.
• The 5Ps overlap
 Topic Two
 

OPERATION STRATEGIES for

competitive advantage
 
 
 Operations strategies for competitive
advantage: Strategic Planning
• Strategic planning is the process of thinking
through the organisation’s current mission and
environment and setting a guide for
tomorrow’s decisions and results. It is
premised on the fact that current decisions are
based on future conditions and results.
• Strategic planning is a process, embodies a
philosophy and provides a linkage within the
organisation.
 Operation Strategy

• It is concerned with the pattern of strategic

decisions and actions which set the role,
objectives, and activities of the operation.

• Operation strategy is a top down reflection of

what the whole group or business wants to
do.
 Cont.
• Operation strategy is a bottom–up activity
where operations improvements cumulatively
build strategy .
• Operation strategy involves translating market
requirements into operations decisions
• Operation strategy involves exploiting the
capabilities of operations resources in chosen
markets.
• Diagram
 Types of operations
• i) Volume Dimension
• These are operations driven by high volumes eg Chibuku depend on high
volumes not differention therefore it needs to be repetitive and produce
standard type and products.
• Operations are repeatable. There is also specialization and
systematization.
• As a result of these processes there is economies of scale which result in
relatively lower unit cost.
• ii) Variety Dimension
• Greater variety of product or service is emphasized so that people chose
what they want when variety is introduced it therefore bring in flexibility
in production processes eg Zimglass when changing the glass from one
colour it must be done quickly so that wastage is avoided.
 -cont-
• iii) Variation Dimension
• Different patterns e.g. Peugeot has 406 and
504 – variation of the same make but different
in patterns.
• It is difficult to predict demand because
demand follows peak.
• The ability to meet demand because demand
is guided by the pattern of demand
• iv) Customer Contact Dimension
• All business should have contact with their
customers. Some have high contacts with their
customers especially the service business eg
banks.
 Role of Operations
• i) Supporting business strategy
• ii)Have capacity and capabilities that will
enable an organization to achieve its goals
thru operations
• iii) To provide competitive advantages
• iv) Drives the business for continuity
 Strategic Planning for Production and
Operations

• In a Production or Operations function,

strategic planning is the broad, overall
planning that precedes the more detailed
operational planning. It essentially involves:
• i) Planning for operations- establishing a
programme for action for converting
resources into goods or services.
• ii) Planning for the conversion system-
establishing a programme of action for
acquiring the necessary physical facilities to be
used in the conversion process
 Strategic Planning approaches for
Production/Operations
• Three models can be identified:
Entrepreneurial model
• A strong, bold leader takes planning action on
behalf of the production/operations function.
Adaptive model
• A manager’s plan is formulated in a series of
small disjointed steps in reaction to the
disjointed environment.
Planning model
• Manager uses planning essentials and
combines these with the logical analysis of
management science.
 Cont.

• Although there are many strategies, whatever

operations strategy formulated must be
consistent with the overall strategies of the
organisation. Operations strategy utilizes the
overall corporate approach planning with
special modifications resulting from
operations issues and opportunities.
 A strategic Planning operations model
• The model was set out by Professor Chris in 1986 and forms the basis
/framework for strategy and policy development of manufacturing
operations. It can be modified for service operations as well.
• According to the model, manufacturing strategy should link policy
decisions associated with operations to the market place, the environment
and the company’s overall goals.
• One critical component to the model is the market based view of strategic
planning, a component crucial to the competitiveness of the firm.
• Thus any strategic business unit (SBU) of an organisation should operate in
the context of :
i) corporate resources
ii) competitive industry environment
iii) specific corporate goals of the company.
• Planning model
• Manager uses planning essentials and
combines these with the logical analysis of
management science.
• Although there are many strategies, whatever
operations strategy formulated must be
consistent with the overall strategies of the
organisation. Operations strategy utilizes the
overall corporate approach planning with
special modifications resulting from
operations issues and opportunities.
 A strategic Planning forced model
• This is a general approach to strategic
planning where analysts as groups or as
individuals assess the environmental
considerations together with the
organisation’s current production and
operations position. Environmental
assessment forces management to develop
strategic options for operations.
 A strategic Planning forced model
• This is a general approach to strategic
planning where analysts as groups or as
individuals assess the environmental
considerations together with the
organisation’s current production and
operations position. Environmental
assessment forces management to develop
strategic options for operations.
Strategic and Tactical decisions for POM
• 1. Quality Strategy- Organization emphasizes on quality
as its marketing positioning e.g Pick and Pay. Organisation
must be able to identify policies and procedures that will
enable to achieve the desired quality.
• 2. Product strategy –Actual transformation to come up
with the production- What should be done to come up
with the actual production
• Productions should meet the needs of the customer
• The HR should be able to deliver/ produce the product
• There is need to emphasize the role of designing
3. Process Strategy- Many processes available
but an organization should choose the process
that best serves the achievement of the
originals goals.
• There is commitment of the organizations
resources which are long term and if one
chooses the wrong processes the
organizations will live to regret.
• The following need to be considered when
choosing a process- technology quality,
people, expense running cost utilization of
equipment and maintenance.
4. Location Strategy-Before setting up a firm
there is need to deliberately think of the
location because this will determine the
successes of the organization. There is need to
choose the location which care otherwise
operations will be ineffective Lupane
University.
 -cont-
• 5. Layout Strategy –Physical placement of
machinery in relation to other e.g. processes –
finishing cannot be at the beginning but
should be deliberately be placed at the end.
Layout is also influenced by capacity.
• There is need to acquire machinery with
capacity of growth so that you do not frustrate
customers.
• 6. Human Resources Strategy
• These are integral part of all operations. It is
the most expensive of the design layout there
is need to put the right the people at the right
people.
• -Consider the quality of working life i.e.
people need to be looked after as they spent
more time in the organization.
• There is need to identify talents and skills to
put in the organization
• -Determine the cost to incurred to have
quality personnel as they do not come out
cheaply.
7.Technology- Equipment required for
operations need to be updated. There is need
to form linkages i.e. the ability to get
technology from others and establish relations
with other organizations which produce what
your organization makes.
8.Organisational Structure- There is need to
have there right and correct structure which is
not rigid so that it enhances strategy
execution. There should be control and
coordination with HR department. The
rewarding system of the organization should
be favorable.
9. Cost – There are people who buy on the basis
of the cost of the product. The lower the cost
the more conducive. The organization should
adopt a low cost strategy if it is the market you
want to serve. The cost of the production
should be equivalent to the value of the
product.
10.Speed of Delivery- Those who deliver early
will be the first on the market” The earliest
bird catches the fattest worm”. There is need
to reduce the designing time so that the
organization delivers early.
11.Flexibility-Ability of a company to produce
variety- people do not want uniform. The
operations should be flexible to move from
station to another without wasting company’s
resources
• Conclusion
• Operation managers should play a key role in
strategy formulation. The vision and mission
can formulate the best strategy for use in the
organization. There should be collaboration
between Marketing, Finance and Production.
Production comes with quality which helps
the company to gain competitive advantages
• A competitive advantage is the key to
organization success. It is only in the
production department where quality can be
achieved. Organization should emphasize on
something and stick to it e.g. Econet
emphasize on innovation.
 A strategic Planning operations model

• The model was set out by Professor Chris in

1986 and forms the basis /framework for
strategy and policy development of
manufacturing operations. It can be modified
for service operations as well.
• According to the model, manufacturing
strategy should link policy decisions associated
with operations to the market place, the
environment and the company’s overall goals.
• One critical component to the model is the market
based view of strategic planning, a component
crucial to the competitiveness of the firm.
• Thus any strategic business unit (SBU) of an
organisation should operate in the context of :
i) corporate resources
ii) competitive industry environment
iii) specific corporate goals of the
company.
 Market based criteria for success
• This is an area in which the company chooses
to compete and is measured in terms of:
• Efficiency is a prime criterion for success as it
makes low price, low cost and high productivity
operation possible. Productivity can also be
manifested through the minimum use of scarce
resources i.e. labour, management, materials,
equipment/facilities and energy, at the same
time sustaining high outputs.
• Effectiveness is how well a company is able to
meet specific criteria like delivery schedules.
• Quality is the degree to which a product/service
meet the customer and organisation
specifications and conforms to standard.
Therefore quality has two aspects i.e. fit
purpose and conformance to standards.
• Flexibility is the ability to change as business
conditions change.
 Topic Three

• Production Planning and Controlling

 Objectives of The production planning and
control
• The ultimate objective of production planning
and control is to contribute to the profits of
the organization
• Specific objectives include establishing routes
for and scheduling for work to ensure the
optimum utilization of materials, workers and
to provide the means for ensuring the
operation of the plant in accordance with
these plants.
 Stages involved in planing and control

1. Process Planning
• The determination of where each operation
on a component part/ assembly is to be
performed results in a route for the meeting
of a manufacturing lot through the factory.
• There is need to plan the route to be taken.
2. Loading- Once the route has been established
the work required can be loaded against the
selected machine or workstation. The total
time required to perform the operation is
computed by multiplying the unit operation
times given on the standard process sheet by
the number of parts to be processed.
-This total time is then added to the work
already planned for the work station. This is
the function of loading and it results in a
tabulated list or chart showing the planned
utilization of the machines or workstation in
the plant.
3.Scheduling- Scheduling is the lot of the
planning functions it determines when an
operation is to be performed or when work is
be completed, the difference lies in detail of
the scheduling procedure.
• In centralized control situation where all
process planning loading and scheduling for
the plant are done in a central office. The
details of the schedule may specify the
starting and finishing time for an operation.
On the other hand the central schedule may
simply give a completion time for the work in
a given department
4. Combining Functions-While it is easy to
define ‘where’ as a process planning, ‘how
much work ‘as loading and when as
scheduling in actual operations these three
functions are often combined and performed
concurrently. How far in advance routes loads
and schedules should be established always
presents an interesting problem
• Obviously it is desirable that a minimum of
changes be made after schedules are
established. This objective can be approached
if the amount of work scheduled for the
factory or department is equal to or slightly
greater than the manufacturing cycle. For
optimum control, it should never be less than
the manufacturing cycle.
• Dispatching: Authorizing the start of an
operation on the shop floor is the function of
dispatching. This function may be centralized
or decentralized.
-Again using our machine shop example , the
departmental dispatcher would authorize the
start of each of the three machine operations-
those dispatch actions based on the foreman’s
routing and scheduling of the work of his
department. This is decentralized dispatching.
• Corrective action- This is the keystone of any
production planning and control activity. A
plant in which all manufacture activity runs on
schedule in all probability is not being
scheduled to its optimum productive capacity.
With an optimum schedule, manufacturing
delays are the rule, not the exceptions.
 Factors affecting PP C
• Capacity
• Type of products produced
• Skilled Labor
• Availability of resources
• Legislation
 Importance of Production Control
1. With the help of production and contoll the
activities of various departments are
coordinated with the help of feed back taken
from them.
2. Quality products are produced
3. It is possible to complete orders within
required time and also with less wastages.
 Cont.
4. Accountability and responsibility become
more or less fixed.
5. It is possible to meet specifications.
6. Minimum investment in inventory
7.Cost production should be reduced.
8. Elimination of risky areas.
Components of Production Control

1. Control of activities
Production activity control is concerned with
converting plans into action, reporting the
results achieved ,and revising plans and
actions in order to achieve desired results.
- Thus PAC converts plans into action by
providing the required direction.
- This requires the appropriate prior master
planning of orders ,work of personnel,
materials and capacity requirements.
2.Control of inventories
-Control the wastage of inventories and
movement of inventories at shop flow.
3. Control of resources
- Optimal use of resources that is the
maximum utilization of equipment, tools and
manpower.
4.Control of management information system
- Channeling the information through proper
channels. It is the responsibility of the control
department to collect the information about
deviation of actual from standards and
provide this information to the management
for taking corrective action.
Instruments for the Control System
• Sales Order- It is a rewrite of the customer
order specifying what has been purchased-
product and quantity and authorizing
shipment of the goods to the customer.
Multiple copies are prepared and all
interested functions are furnished a copy.
Sales order may be written by marketing,
inventory control or production control.
• Stock Order
• Shop Order
• Requisition form
• Payment voucher
• Job cards
• Stock sheets
 Techniques of Production Control
• In order to continually monitor the progress of
implantation, many control techniques are
applied.
1) Gantt Charts
The chart is used to organize and clarify actual
or intended use of resources within a time
framework.
It portrays planned production and control
variables that require planning and control.
• It is a rectangle chart divided by horizontal
and vertical lines generally time is represented
horizont6ally with scheduled resources listed
vertically.
• There is a load chart and a schedule chart.
• A load chart displays the loading and idle
times for machines or departments.
• This shows when certain jobs are scheduled to
start and finish and where idle time can be
expected.
• Whereas a schedule chart is used to monitor
job progress.
 Cont.
• Gantt chart offers the advantage of ease and
clarity in communicating important
information.
• Gantt chart often shows who is responsible for
what task.
• It helps monitor progress as the production
will be going on.
• It gives a clear illustration of the production
status.
However
• The Gantt chart does not account for the
vagaries of equipment including breakdowns
and human performance.
• Gantt chart emphasize time rather than task
relationships.
• Gantt chart does not indicate task
dependencies that is you can not tell how one
task is falling behind schedule affects other
tasks.
 Topic Four

Product Design
 Understanding and Meeting
Customer requirements
- The foundations for long term success in any
type of operation can be established on the
basis of a synergistic relationship between
marketing, design and operations of an
organization.
- Good integration between these groups is
important
- Product development should be an interactive
process whereby the customer and marketing
sales product service designers purchasing
suppliers and production team work together
to develop a product that meets customer
expectations and can be generated or
produced economically.
 Product Development
• Products can be developed in an organization
using one of the following ways:
Traditional Sequential Product Development
-It is a sequential process. Each member
believes the other is incompetent
-It is divided separate functions whereby:
1 Marketing passes the requirement to the
product.
2 The designers believe the requirements are
unrealistic with regard to available technology
or resource, alter the requirement and design
a product to meet the corrected market
analysis.
3 The designers pass the new product to the
process designers and purchasing.
4 The process designers believe the product
designers do not understand the real world.
They try to correct the product design so that
they it can be produced.
5 Purchasing interacts with suppliers who
indicate problems with the design and they
work with the suppliers to correct it.
6 The suppliers are contracted to be produced
what will meet the needs of the new designs
economically.
7 Operations receive the process design and the
purchased materials which all have to rush
into production whilst designing the product.
8 Operations change the market analysis and
product.
9 In a manufacturing company production past
the first few products to sales.
10 Sales receive with the product a suggested
selling price and a forecast from marketing.
•  Investigations then bounce from one barrier
to another with responsibility and
accountability for the product service being
denied, unrealistic goals being claimed and
little or no feedback being given and nothing
being generated.
• In theory this approach should have led to an
understanding of the customer requirements
through the market analysis but the customer
is not really part of the traditional product
development process.
• The length of time from the initial market
analysis to the first sales is too long such that
the analysis is often invalid therefore it will not
surprise that the product does not meet the
requirements.
• The entire product development process is re-
started at each phase creating time consuming
and consuming and expensive duplication.
• Friction between departments will not be
avoided.

2. The Modern Approach

• Each element is carried out in the context of
other and there are excellent
communications. Representatives of the
customer, marketing, product design,
purchasing, suppliers and operations need to
work as a cohesive, flexible, supportive
product development team .
• Many organization have found efficiency ,
simplification faster response time, less
politics more forecast t expertise are lower
costs by adopting this approach.
• The team should be broad based and true
customer requirements known to the entire
team which should the project from the start
to the end of operations / production .
- All the customer requirements, product
assumptions and production requirements
must be documented.
- Specific product goals must be established,
accepted and embraced by entire team
- There must be commitment by the top
management.
 AIMS OF DESIGNS

1 To have an idea to the materials required.

2 To analyze compatibility
3 To reduce complexity of the product
4 To improve on the maintainability /
serviceability of product
5 To improve job safety
6 To have standardization of components
 Turning Requirements into
designs

It involves some research development and

design activities:
1 Research is the discovery of novel/ new
products, techniques ideas systems.
2 Development- the improvement of existing
products techniques systems or ideas.

.
• Design is the translation of requirements into
a form suitable for all operations and
production.
• The design functions is in between marketing
and the operations functions
• Its purpose is to take the needs of the market
and translate them into that they can be
satisfied within the operating unit. The
decisions taken during the design stage can
have significant and very long effect upon the
whole organization eg a poorly designed coat
will never coat well it is made.
•  
 DESIGN PROCESS AND SYSTEMS
• In every project the design program will pass
through the five stages.
• 1) Conception – when a draft specification for
the product / service is laid down encoorating
the user requirements.
• It is the most important in providing the basis
for control of all subsequent design activity. A
specification must be drawn up in as much
detail as possible by marketing in discussion
with the customer and the customer and the
design group.
• The following is the minimum information that
should be given on a design specification
1The technical or performance requirements
including explicit statements on quality and
reliability.
2 Any appearance or styling requirements
3 The intended d selling price or operational cost
4 The date when product must be available.
5 The probable quantity or service usage that
will be required.
6 The max cost of designing which can be
accepted since the final products must bear
the cost of the design.
7 Information concerning any special safety legal
or quality features required by current
legislation
2) ACCEPTANCE
• Is where specification is shown to be
achievable
• It is here that tradeoffs better requirements
and achievability are made explicit and
resolved
• It is usually the 1st stage where costs for the
design work will be assigned directly to the
project.
• The draft specification is tested and when
accepted rejected or impracticable, or
modified in conjunction with marketing.
• It is important for the designer to know the
capability of the operating unit which will
carry out the final design.
3) EXECUTION

• Is where a number of models or pilot runs are

prepared from the work at stage2?
• The models should confirm to the
specification
• Costs consideration should not be overlook.

• The technical appearance or service

performance requirements are most
important at this stage.
4) Translation
• Is where the project is put into such a term
that it can be operated within the origin and
to the specification laid in stage 2
• The appropriate operations and after sales
service groups must be involved in the design
work.
• It is common practice that the teams
responsible for the original work and for the
model on trials to hand over the task to a
development which, while appreciating the
originality of design, can also appreciate the
problems involved in execution
• This development team should discuss at all
the stages the operating problems with the
appropriate groups or departments.
• Detailed estimates will begin to be formed ,
and it will possible to assign maximum
acceptable costs to the various aspects of the
service or product.
• Lack of cooperation at this time better
designers and operational people will prove
very costly the design finally placed upon the
operating unit will be difficult to operate or
produces and emergency re-designs carried
out will result in a debasing of the product or
service.
• Work at this stage will also be proceeding o
preparing the final operating information
summarizing all the design and development
effort.
• Control of the amount of work put into
obtaining this information is both important
and difficult and must be remembered that
the information is both important and
difficult, and must be remembered that the
information is intended to aid operation and
not to be an end in itself.
5) Pre-operation
• Is where quantities are produced or services
provided in numbers sufficient to check the
design personnel, equipment and
specifications.
• It is not until this stage that the specifications
can be frozen i.e. considered to be final and
liable to change without authorization. It is
the pilot stage.
-The pre-operational stage will look at the
following:
• Operational information
• Operational resources
• Operational techniques and estimates
• Specifications
 
 In the design process the following points are
worth considering:
• No design will ever be complete in the sense
that some modifications can always be made.
• Few designs are entirely novel.
• An examination of any new product /service
will almost certainly show that it largely
employs existing techniques, components or
systems to which have been added a
comparatively small novel element.
• There appears to be a law of diminishing
returns the longer the time is spent on a
design , the less the increase in the value of
the design and less a technological
breakthrough is achieved.

• External and internal circumstances will

impose limitations on design time and cost.
 Topic Five

SERVICE PROCESS DESIGN

• Definition Service
• Services are intangible and can not be easily
quantified.
• Services are produced and consumed
simultaneously e.g if you get a haircut the
effect is obvious but the service itself was
produced and consumed at the same time.
• Simultaneous production and consumption is
a critical characteristic of services because it
implies that the customer may be in the
production system while production takes
place.
• The customer can introduce in certainty into
the process by placing demands on the service
provider at the time of production.
• Also the simultaneity of production and
consumption means that most services cannot
be stored or transported, they must be
produced at the time of consumption.
(exceptions are communications and
electricity services that can be provided over
long distances)
• Many services can be defined as interactions
that are social in nature.
• The interaction between the service provider
and customer at the time of production is a
critical attribute of service.
• Production as a social interaction with the
customer is quite foreign to manufacturing
and its related processes.
• This interaction is critical to the service
process design considerations.
• Because characteristics of services vary, widely
and the extent of interaction between the
provider and customer can also vary greatly, it
is difficult to generalize about services.
 The service – product bundle

• The service – product bundle consists of three

elements;
1) The tangible service (explicit service)
2) The psychological benefits of service (implicit
service)
3) The physical goods (facilitating goods)
• Most services can be bundled with tangible
services, psychological benefits and facilitating
goods. For example when customers go to a
fast food restaurant, they receive both a
tangible explicit service which they hope is
fast and accurate, and a facilitating good, the
food. The psychological benefits implicit
services are the customer’s feelings about the
interaction and the pleasantness of the
surroundings.
• Anchor, for example is of a taxi cab ride the
explicit service is the transportation from one
place to another, and includes customer
perceptions and experiences like the sound,
sight, smell and feel of the ride. The implicit
service is the sense of well being and security
which the cab rides and hopefully provides
and finally the taxi cab is the facilitating good.
• It is important in the design of the service not
to over emphasize one piece of the service –
product bundle while neglecting the other
elements.
• Another for example, to illustrate the service –
product bundle is the Pizza/ food delivery
service.
• The explicit service is the availability of
delivery service and the time it takes for
delivery. The implicit service relates to the
clean – cut appearance and courtesy provided
by the delivery agent.
• These implicit services contribute to a sense of
professionalism and security for the customer.
• The facilitating good is the pizza/food itself
that should be delivered hot to the customer.
N.B. Some say you got your ride so why are you
complaining. The wrong.
• Operations management task, before
delivering any services to the customers is to
design the service system.
• The service system include designing the
process that will be used to deliver services,
and it includes details such as the technology
used in the process design, the types of
employees needed and even the appearance
of employees and facilities.
• While operations management can fairly
tightly control both the explicit service and
facilitating gods implicit (the feelings customer
get from a service) are a bit hard to control
therefore it is important that management use
the means it has available for example
technology or employees to do its best to
design the intended feeling into the service
system.
 Service Matrix

• There are many ways to think about services,

the options they offer customers, and the
variety of ways in which they can be delivered
or carried out.
• For example some services can be delivered in
only one standardized way and every
customer gets more or less the same service
• Other services are highly customized to
customer requests, and exactly the same
service is virtually never repeated for another
customer.
• Management’s challenge is to design the right
service system to match the requirements of
its customers.
• To in co-operate both customer preferences
and service system design Meyer (1998)
suggested the service matrix.
• On the top of the matrix is the dimension of
customer wants and needs which captures the
critical characteristics customers are seeking
in their service.
• This dimension incorporates the uniqueness of
demands from one customer to another, an
indication of the uncertainty and variation
introduced into operations by individual
customers.
• Customers with basically the same wants and
needs can be served by processes that are
highly standardized and routinized while
customers with unique wants and needs must
be served by processes that allow great
variety and high levels of customization.
• The vertical side of the service matrix
represents the operations service system,
which includes process design.
• This dimension captures the number of
different pathways that service customers can
take in the service process.
• In other words the side of the matrix answers
the question, how many different ways can
the service be delivered.
• When both dimensions of the matrix are
considered, three types of services can be
identified
• Customer – routed services – are those in
which customers want a unique, highly
customized experience.
• Customers have a great de al of decision
making power to determine the components
of the service as well as how, when and the
sequence in which it is delivered.
• For these services, each customer wants a
different set of experiences, and the service
process must allow a great deal of personal
discretion and interaction with the customer.
• These services are carried out using highly
flexible service systems and may rely on highly
trained workers to deliver the right set of
experiences to match customer wants and
needs.
• -Personal trainers, internet shopping and
museums are examples of customer – routed
services.
 Co-routed services- are in the mid ranges of
both customer wants and needs and service
system design.
• They offer a moderate number of choices to
customers using a moderately standardized
service system.
• Medical and stockbroker services fit in this
category.
Provider – routed services- these are
characterized by service systems that allow
few options during service delivery, and are
matched with customers whose needs are
very similar to one another.
• Automatic teller machines (ATMs) are
examples of highly standardized services.
• provide a limited set of services and there is
little customer discretion in using an ATM.
• Customers whose needs are not met by an
ATM must interact with the bank via other
means.
 
• Conclusion
• The service matrix is intended not only to
classify the different types of services but also
to indicate how the operations management
task differs among services.
• For example, provider – routed services may
require operations management attention to
automation and capital investment, while
customer – routed services may require more
attention to management of human resources
and training.
• Diagrams
• With a low-contact process, it is possible to
buffer the customer from the process
procedure of production.
• Separating the customer from the service
production system allows for greater
standardization of process and therefore
better efficiency.
• At the other end of the contact spectrum high-
contact systems have the customer on the
system during the production of the service
for example, are dentistry, hair cutting and
consulting.
• In these systems, the customer can introduce
uncertainty into the process with a resulting
loss of efficiency.
• For example, a customer may impose unique
requirements on the service provider resulting
in a need for more processing time.
• In this case the service system design will
typically be customer-routed, unless
customization has been limited by the
provider in these high-contact systems
• The measure e of degree of contact is the
amount of time that the customer is in the
system while the service is being produced.
• Potential inefficiency = (degree of customer
contact)
 Characteristics of high and low
contact services
1) Low-contact services are used when face-to-
face interaction is not required for example,
shipping operations or check processing in
banks.
2)Low-contact services require employees with
technical skills, efficient processing routines,
and standardization of the product and
process.
3) High-contact services require employees who
are flexible, personable and willing to work
with the customer.
4) Low-contact operations can work at average
demand levels and smooth out the peaks and
valleys in demand.
5) High-contact service providers must respond
immediately as demand occurs in peak
situations
6) High-contact services generally require higher
prices and more customization due to the
variable nature of the service required.
• The key to service profitability has been linked
to focusing on customers and employees as
paramount in importance.
• Managers should focus in particular on front
line employees who deliver the service,
technology that supports them, training and
customer satisfaction.
• Customer loyalty is the key to revenue growth
and profitability.
• The service-profit chain shows that customer
loyalty is driven by satisfied customers.
• The service – profit also includes external
service value, which leads directly satisfied
customers.
• External service value is the benefit customers
receive less the cost incurred in obtaining the
service, which includes not only the price but
the costs of finding the service, which includes
not only the price but the costs of finding the
service, travelling to the service location,
waiting for the service and correcting any
service problems encountered.
• On the part of the service – profit chain.
Productive employees are essential in
delivering value to the customer.
• Productive employees lower the costs of
operations and ensure satisfied customers
when supported by management and
appropriate technology and systems
• Employee retention and low employee
turnover help to drive productivity and
customer value.
• Employee retention and productivity can be
assured by satisfied customers.
• Process design should reflect this direct
contact service employees and customers this
can be done by providing real-time (during
service delivery) tools such as computer
access to customer information to help service
employees perform their jobs.
 Technology in services

• The automation of services offers potential for

greater efficiencies. When services are viewed
in more technical rather than humanistic
terms, automation and standardization
become possible.
• This can result in lower costs and more
uniform quality.
• Technology is a support mechanism for
employee work.
 Chapter Six

»Productivity
• Productivity is the ratio of the outputs (goods
and services) divided by the input (resources) (
such as labour and capital)
• The operations manager’s job is to enhance
the productivity ratio of outputs to inputs
• Improving productivity means improving
efficiency
• Efficiency can be improved by reducing inputs
while keeping output constant or increasing
output while keeping inputs constant.
• Measurements of productivity is good way to
evaluate a country’s ability to provide an
improving standard of living for its people
• Productivity = units produced
Input use
•  
• Productivity is a common measure of how well
a country, industry or business unit is using its
resources or factors of production.
• Productivity measurement is fundamental to
understanding operations –related
performance
• Productivity is a relative measure i.e. it needs
to be compared with something else
• Comparisons can be made in two ways. A
company can compare itself with similar
operations within its industry. Or it can use
data when such data is available eg comparing
productivity among the different stores in a
franchise.
• Another approach is to measure productivity
over time within the same operation ie
comparing our productivity inone time period
with that of the next.
 Factors affecting Productivity
 Capital investments in
production/technology/equipment/ facilities.
e.g. Automatization & Computerization (minimizes tasks
performed by employees).
 Workforce knowledge and skill
 Social environment. Making employees comfortable +
work methods.
 Quality of
products/processes/management
 Geographic factors
201
 PROCESS FLOW STRUCTURES
• A process flow structure refers to how a
factory organizes material flow using one or
more of the process technologies listed below.
• Job Shop- Production of small batches of a
large number of different products most of
which require a different set or sequence of
processing steps.
• Commercial printing firms, airplane
manufacturers, machine tool shops and plants
that make custom – designed printed circuit
boards are the examples of this type
Characteristics of Job-Shop
• 1. High variety of products and low volume.
• 2. Use of general purpose machines and
facilities.
• 3. Highly skilled operators who can take up
each job as a challenge because of
uniqueness.
4.Large inventory of materials, tools, parts.
5. Detailed planning is essential for sequencing
the requirements of each product, capacities
for each work centre and order priorities.
Advantages
• 1. Because of general purpose machines and
facilities variety of products can be produced.
• 2. Operators will become more skilled and
competent, as each job gives them learning
• opportunities.
• 3. Full potential of operators can be utilised.
• 4. Opportunity exists for creative methods and
innovative ideas.
• Limitations
• 1. Higher cost due to frequent set up changes.
• 2. Higher level of inventory at all levels and
hence higher inventory cost.
• 3. Production planning is complicated.
• 4. Larger space requirements.
• 2.Batch Shops- Such structure is employed
when a business has relatively stable line of
products each of which is produced in periodic
batches either to the customer or for
inventory. Most of these items follows the
same flow pattern through the plant examples
include heavy equipment, electronic devices
and specialty chemicals.
Characteristics of Batch
• 1. When there is shorter production runs.
• 2. When plant and machinery are flexible.
• 3. When plant and machinery set up is used
for the production of item in a batch and
change of set up is required for processing the
next batch.
• 4. When manufacturing lead time and cost are
lower as compared to job order production.
Advantages
• 1. Better utilisation of plant and machinery.
• 2. Promotes functional specialisation.
• 3. Cost per unit is lower as compared to job
order production.
• 4. Lower investment in plant and machinery.
• 5. Flexibility to accommodate and process
number of products.
• 6. Job satisfaction exists for operators.
Limitations
1. Material handling is complex because of
irregular and longer flows.
2. Production planning and control is complex
3. Work in process inventory is higher compared
to continuous production.
4. Higher set up costs due to frequent changes
in set up.
• 3.Assembly Line- Production of discrete parts
moving from work station to work stations at a
controlled rate following the sequence needed
to build the product.
Characteristics
• 1. Standardisation of product and process
sequence.
• 2. Dedicated special purpose machines having
higher production capacities and output rates.
• 3. Large volume of products.
• 4. Shorter cycle time of production.
• 5. Lower in process inventory.
• 6. Perfectly balanced production lines.
• 7. Flow of materials, components and parts is
continuous and without any back tracking.
• 8. Production planning and control is easy.
• 9. Material handling can be completely
automatic.
Advantages
• 1. Higher rate of production with reduced
cycle time.
• 2. Higher capacity utilisation due to line
balancing.
• 3. Less skilled operators are required.
• 4. Low process inventory.
• 5. Manufacturing cost per unit is low.
Limitations
• 1. Breakdown of one machine will stop an
entire production line.
• 2. Line layout needs major change with the
changes in the product design.
• 3. High investment in production facilities.
• 4. The cycle time is determined by the slowest
operation.
• Examples include manual assembly of toys
and appliances. And automatic assembly
(called insertion) of components on a printed
circuit board. When other processes are
employed in a line fashion along with
assembly, it is commonly reffered to as a
production line.
• 4.Continuous Flow- Conversion or further
processing of undifferentiated materials such
as petroleum, chemicals or beer.
• As an assembly lines production follows a pre-
determined sequence of steps, but the flow is
continuous rather than discrete such
structures are usually highly automated and in
effect constitute one integrated machine that
must be operated24 hours a day to avoid
expensive shutdowns and start ups.
Characteristics
• 1. Dedicated plant and equipment with zero
flexibility.
• 2. Material handling is fully automated.
• 3. Process follows a predetermined sequence
of operations.
• 4. Component materials cannot be readily
identified with final product.
• 5. Planning and scheduling is a routine action
Advantages
• 1. Standardisation of product and process
sequence.
• 2. Higher rate of production with reduced
cycle time.
• 3. Higher capacity utilisation due to line
balancing.
• 4. Manpower is not required for material
handling as it is completely automatic.
• 5. Person with limited skills can be used on the
production line.
• 6. Unit cost is lower due to high volume of
production.
• Limitations
• 1. Flexibility to accommodate and process
number of products does not exist.
• 2. Very high investment for setting flow lines.
• 3. Product differentiation is limited.
• Break even analysis- A standard approach in
choosing among alternative processes or
equipment. A break even chart visually
presents alternative profits and losses due to
the number of units produced or sold. The
choice obviously depends on anticipated
demand.
• The method is most suitable when processes
and equipment entail a large initial investment
and fixed cost, when variable costs are
reasonably proportional to a number of units
used.
 Product Life Cycle
• Products are born they live and they die
• They cast aside by a changing society
• Product life cycles may be a matter of few
hours eg Newspaper months- fashion and P.C,
years – video tape or decades
• Regardless of the length of the cycle, the task
for the operations manager is the same to
design a system that helps introduce new
products successfully
• Just as operations managers must be prepared
to develop new products, they must also be
able to develop strategies for new and existing
products
• Periodic examination of products is
appropriate because strategies change as
products move through their life cycle
• Successful product strategies require deter
mining the best strategy for each product
based on its position in its life cycle
• A firm identifies products or families of
products and their position in the life cycle
Introductory Phase
• Because products in the introductory phase
are still being fine tuned for the market as are
their production techniques, they warrant
unusual expenditure for :
• Research
• Product development
• Process modification and enhancement
• Supplier development
• Eg when cellular phones were first provided
the features desired by the public were still
being determined. At the same time,
operation managers were still searching for
the best manufacturing techniques
2. Growth Phase- in the growth phase, product
design has begun to stabilize and effective
forecasting of capacity requirements is
necessary- Adding capacity or enhancing
existing capacity to accommodate the increase
in production demand may be necessary.
• 3. Maturity Phase
• By the time a product is mature, competitors
are established.
• high volume, innovative production maybe
appropriate.
• Improved cost control, reduction in options
and a paring down on the production line may
be effective or necessary for profitability and
market share.
4. Decline Phase
• Management may need to be ruthless with
those products whose life cycle are at an end
 
 
 
 
 
• Dying products are typically poor products in
which to invest resources and managerial
talent unless dying products make some
unique contribution to the firm’s reputation or
its product line or can be or can be sold with
an usually high contribution , their production
should be terminated.
 TOPIC SEVEN

Plant location
Supply and distribution system
• One of the key features of the transformation
system is the efficiency with which the output
is transferred to the recipients
• Any consideration of this will include
determination of where to place the plant or
operational facility, and how much
transportation of the inputs and outputs will
be required
• The way in which the outputs are obtained
and the inputs distributed has an effect on:
 The total cost of the product / service
 Number of customer that can be reached
 The location of the organization and its units
 The design of the plant or operational
facilities
• An efficient supply distribution system will
reduce cost and lead to a more effective
service in the form of quarter deliveries and
less stock outs.
• The type of output involved is clearly a major
factor in the determination of the best
distribution system.
• Services such as salons , schools, hospitals and
churches are difficult to transport and these
organizations usually perform the service in
the customers’ vicinity.
• The supply, storage and movement of
materials, people, equipment and finished
goods and services affects not only the
number of location of units to be established
but also the design of the transformation
facilities.
• All the potentially available plant must be
considered as part of the whole supply
distribution system to devise the most
strategy for obtaining the right inputs and
desired outputs.
• Plant flexibility, efficiency, effectiveness,
capacity etc will be determined by the plant
design and constantly changing environment
may require repeated redesigns.
• The advancement in technology and the
shortages of certain materials and energy
source must also be carefully examined by the
operations management team.
•   
Location strategy
• It is difficult to set down rules whereby the
problem of facilities location on the
programmed but they are a number of factors
which should be considered.
• Location is the general area and site is the
place chosen within the location.
Factors influencing the choice of location
• Proximity to market –Organization may choose
to locate facilities close to their market to
minimize transportation cost and provide
better service. The closer the plant is to the
consumer the easier it is providing better
service.
• The closer the plant is to the consumer the
easier it is provide JIT delivery and to respond
to changes in demand and to react to field or
service problems.
2.Integration with other parts of the
organization
• If the new plant is one of the number owned
or operated by a single or organization it
should be situated at its work can be
integrated with that of the associated units.
This will require that the group will be
considered as an entity not as a number of
independents units.
3.Availability of labor and skills – Labor may be
more readily available in some cases but
certain geographical areas require the
company import labor.
4.Availability of transport- It is important that
good transport facilities are readily available
5.Availability of inputs – good transport
facilities will enable goods and services to be
delivered readily but a location near main
suppliers will reduce costs and permit staff to
meet suppliers easily to discuss quality,
technical or delivery problems.
6.Availability of service –These are 6 main
services which need to be considered and vice
and these are water, electricity, drainage, gas
disposals of waste and communications. An
assessment must be made of the
requirements of these as underestimating the
needs of any of the services can be costly and
convenient.
7.Regional regulations-It is important to check
that an early stage that the proposed location
does not infringe the local regulations. A
study must be made of the appropriate by
laws and of any special regulations.
8.Suitability of land and climate-Geology of the
area need to be considered together with the
climatic conditions.
9.Room for expansion – It is most unwise to
build to the limit of any site unless the long
range forecasts in indicates very definitely that
the initial building will never be required to
increase in size.
10.Safety requirements- Some production units
may present potential dangers to the
surrounding neighborhood
11.Political, cultural and economic situation – It
is important to consider these as they can
affect the organization operation negatively.
12.Availability of amenities – A location which
provides good external amenities i.e. housing,
shops , community service , communication
system is often more attractive than one
which is remote.
 
LOCATION EVALUATION METHODS
• In most location problems there are some
mandatory factors which must be fulfilled eg
an oil refinery must have an excellent main
services
• Once these key factors are identified the
location problem ceases to be open and
become a choice from a number of sites.
• An evaluation technique based an ranking the
various weighted factors can be helpful
The principals of ranking are:
• Examine various factors and assign to them
weights representing their importance to the
situation being changed.
• Each of the locations is examined and ranked
each factor, this ranking being carried out
factor by factor.
• Each ranking is then multiplied by the
appropriate weighting factor and the scores
totaled for the each possible location. These
totals indicate the desirability of the possible
locations compared with each other.
Factors in the design of plant or facilities
• The detailed design of plant and facilities
should be undertaken by an operations
management team, including architect
working within a brief which indicates
• Accommodation required
• Latest possible completion date
• Life of the plant or facilities
• Proposed site
• Maximum cost
The factors which affect the design of plant or
facilities include
• Size
• No of floors
• Access
• Services
• Loads to be carried
• Lighting
• Heating and ventilation
• Disposal of waste
• Special process requirements.
 TOPIC EIGHT

Layout Facilities
Strategic Layout.
• Layout is used to indicate the physical
disposition of the facilities/ Plant and of the
various parts of the plant thus the layout will
encompass both the location of equipment
using a small department and the disposition
of departments upon a site.
• It is necessary to ensure the policy decisions
concerning the organization, method and
workflow are made before the facilities are
laid out rather than to try to fit organization
method and workflow to the layout.
•  
• It is particularly important area of POM’s
responsibility since we are dealing with capital
equipment of the organization which is
difficult to relocate once it has been put into
relocation.
TYPES OF LAYOUT.
• Organization usually starts with a very small
with a product / service layout and as it
increases in size they tend to move towards a
process layout in the belief that such a layout
will make better use of the physical resources
Office layout- It positions workers equipment
and spaces / offices to provide for moment of
information.
Retail Layout- Allocates shelf space and
responds to customer behavior
Warehouse Layout – Addresses trade offices
between space and material handling.
Fixed position layout.- Addresses the layout
requirement of large bulky project s such as
buildings
Process Oriented layout- Deals with low volume
and high variety production
Work sell layout- Arranges machinery and
equipment to focus on production of a single
product or group of related products.
Product Oriented Layout- Seeks the best
personnel and machine utilization in repetitive
or continuous production.
CRITERIA FOR A GOOD LAYOUT
• The techniques employed in making a layout
are normal work study or industrial
engineering techniques, the process is a
creative which can be set down with any
finality and one’s experience plays a great
role.
• It is not possible to define a good layout but
there are certain criteria which may be
satisfied by a layout a
• It is not possible to define a good layout but
there are certain criteria which may be
satisfied by a layout.
1) Maximum Coordination
• Entry into physical form any departmental or
financial area should be in such a manner that
it is most convenient to the issuing /
receiving departments
2)Maximum flexibility
• A good layout will be one which can be
rapidly modified to meet changing
circumstances.
• Attention should be paid to the supply of
service / product which should be easy to
access
3) Maximum use of volume
• Facilities should be considered as cubic
devices a maximum use made of the volume
available eg cables, pipelines and conveyers
can be run above head height and used as
moving WIP stores and or tools or equipment
can be suspended from ceiling.
4) Maximum visibility
• All the people a material should be readily
observable at all times.
• They should be no hiding places into which
goods / information can get mislaid.
5) Maximum Accessibility
• All serving an maintenance points should be
readily accessible eg equipment should not be
placed against a wall in such a manner that
necessary maintenance cannot be easily
carried out.
6) Minimum Discomfort
• Poor lighting excessive sunlight, noise
vibrations and smells should be minimized
7) Inherent Safety
• All layouts should be safe and no person
should be exposed to danger.
• Care must be taken on both the people
operating the equipment and of the
customers and any passerby
• Adequate medical facilities and services must
be provided and these must satisfy the
requirements of the healthy and safety
regulations
8) Maximum Security
• Safeguards against fire, moisture, theft and
general deterioration should be provided for
in the original layout.
9) Minimum distance
• All movements should be both necessary and
direct .There should be very little distance
between offices/buildings
•  
10)Efficient process flow
• Work flow and any transport flow not cross
• Effort should be taken to ensure that paper or
material flows are in one direction only
• The use of gravitational force in certain types
of processing on leads to great saving in
energy and time.
• 11) Identification
• Wherever possible working groups should be
provided with their own working place
• The need for a defined territory is basic.
 
Advantages of a good layout
•  The overall process time and cost will be
minimized by reducing unnecessary handling a
meeting and by generally changing the
effectiveness of and work processes
• Supervision and control will be simplified by
the elimination of hidden corners in which
both information and material can be
misplaced.
• Changes in the programmes will be most
readily accommodated.
• Total output from the given facility will be as
high as possible by making the maximum
effective use of available space and resources.
• A feeling of unity among employees will be
encouraged by avoiding unnecessary
segregation
• Quality of the product service will be
sustained by safer or more effective methods
of operation.
Planning the Layout
• The following information should be available
when planning a layout.
• The original structure
• Type of production / operating system to be
employed
• Type of quality and people involved
• Dimensional plan of the space to be laid out
• Operations to be undertaken, their
descriptions sequence and standard times.
• The equipment needed to carry out the
operations and any special requirements it
imposes such as maintenance facilities and
safety devices
• The number of movements of materials from
one work center to another during the
working period
• Volume of material required at each work
station
• Any special inspection requirements
• Any spare facilities or equipment which will
need to be stored