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Product-based, Functional, Cellular, Fixed-position Layouts

Manychip, having identified the appropriate location for its major production facility, now wants your team to determine the optimal internal layout for the facility based on the following criteria:

- The facility will manufacture several lines of memory chips, some with compatible components and some that do not have compatible components
- The facility will also house an administrative support workgroup that will receive and process orders, bill customers, and provide payroll/HR support for the local workforce.
- The facility will also be responsible for shipping to national, international, and local customer locations.

Using course materials and other research:
1. There are four types of potential layouts: product-based, functional, cellular and fixed-position layouts. Divide the work up with equality among individual team members so that each of the listed layouts is defined from an academic context and it is specified how it might apply to Manychip's facility.
2. Discuss your justification and choice for the most appropriate method for Manychip, and come to a consensus.
3. Finally, determine the most appropriate optimization models of the chosen layout(s). In other words, identify the best methods that Manychip can use to optimize workflow amongst those methods (individual layout types).


Solution Preview

Product Based Layout:

In this layout type the manufacturing is orientated in such a manner that the processes required to produce a product or products are organised in the steps or sequence needed. If a product or group of products required, casting, milling, drilling, grinding, assembly and packing - the machines are organised in that sequence.This is generally related to high volume production where the variation or variety of products requiring difference process sequencing is relatively low. A good modern day example of this method is the manufacture of vehicles. Generally a factory produces a variety of cars that pass through the same production processes arranged in the sequence required for production.

Fixed Position Layout:

The fixed position layout describes the type of manufacturing where the processes are brought to the product and not the product to the process. As an illustration it is generally accepted -although new trends in pre-fabricated houses - which the productor house is fixed in location and the processes required to buildare brought to it as needed.

In general this type of layout is used for product that has constraining characteristics such as being very large, heavy or has some other constraint that prevents its location from being altered while under manufacture. Because of these characteristics and the type of product involved they generally happen to be relatively low volume products with small lot sizes.


Functional or Process Layouts: Process layouts or functional layouts are the layouts that can handle ...

Solution Summary

The solution gives just over 1000 words to explain these different kinds of layouts, the advantages and disadvantages of each and when to use which one.