Fixed-position layout is in some ways a contradiction in terms, since the transformed resources do not move between the transforming resources. Instead of materials, information or customers flowing through an operation, the recipient of the processing is stationery and the equipment, machinery, plant and people who do the processing move as necessary. This could be because the product or the recipient of the service is too large to be moved conveniently, or it might be too delicate to move, or perhaps it could object to being moved.Process layout is so called because the needs and convenience of the transforming resources which constitute the processes (or processes with similar needs) are located together. This may be because it is convenient to group them together, or that the utilization of transforming resources is improved. It means that when products, information or customers flow through the operation, they will take a route from activity to activity according to their needs.Different products or customers will have different needs and therefore take different routes. Usually this makes the flow pattern in the operation very complex.
Machining the parts which go into aircraft engines- some processes (e. g. heat treatment) need specialist support (heat and fume extraction); some processes (e.
g. machining centres) require the same technical support from specialist setter- operators; some processes (e. g.grinding machines) get high machine utilization as all parts which need grinding pass through a single grinding section.A cell layout is one where the transformed resources entering the operation are preselected (or preselect themselves) to move to one part of the operation (or cell) in which all the transforming resources, to meet their immediate processing needs, are located.
The cell itself may be arranged in either a process or a product layout. After being processed in the cell, the transformed resources may go to another cell.In effect, cell layout is an attempt to bring some order to the complexity of flow which characterizes process layout. Some computer component manufacture- the processing and assembly of some types of computer parts may need a special area dedicated to manufacturing of parts for one particular customer who has special requirements such as particularly high quality levels. Product layout involves locating the transforming resources entirely for the convenience of the transformed resources.
Each product, piece of information or customer follows a prearranged route in which the sequence of activities that are required matches the sequence in which the processes have been located. The transformed resources ‘flow’ along a ‘line’ of processes. This is why this type of layout is sometimes called flow or line layout. Flow is clear, predictable and therefore relatively easy to control. Usually, it is the standardized requirements of the product or service which lead to operation choosing product layouts.Try not to run out strategy (positive capacity cushion): This is the optimal strategy for the company to consider as the market for greastex is expanding thus it will allow them to capture more market share ahead of their competitors. Also, since in growth markets there is a less risk of having idle capacity fro long since the market is expanding. Build to forecast strategy (assuming a symmetrical probability of demand): The Company can consider this strategy if the firm is more conservative with respect to capacity provided.
It will provide a 50 percent probability of running out of capacity and a 50 percent probability of having excess capacity. The company should consider this strategy if the cost (or consequences of running out is approximately in balance with the cost of excess capacity. Maximize utilization strategy (planning a small or a negative capacity cushion):This strategy is appropriate for the firm if the capacity is very expensive, relative to stockouts, as in the case of oil-refineries, paper mills, and other capital-intensive industries i.e. if the facility operates at very high capacity rates approaching 90-100%. The firm is currently using this strategy for Greastex Line where it has maximised its utilisation for fulfilling the demand.
While this strategy tends to maximize short run earnings it could damage the long run market share, especially if the demand develops in excess of capacity (as in the case of Greastex) or if the competitors adopt larger capacity cushions.