Production management means planning, organising, directing and controlling of production activities. Production management deals with converting raw materials into finished goods or products. It brings together the 6M's i.e. men, money, machines, materials, methods and markets to satisfy the wants of the people.
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Facility location (where to set up the plant/service unit) and plant layout (how to arrange machines, departments, and work areas inside the plant) are strategic decisions. A wrong location increases transport cost, delays, and labour problems. A poor layout causes extra movement, bottlenecks, waiting time, accidents, and higher cost. Therefore, location and layout decisions directly impact cost, quality, delivery speed, and productivity.
This chapter typically asks:
Both decisions aim to reduce total cost and improve flow and service.
Good location and layout help to:
Major factors (exam list):
Service location often emphasizes customer access, parking, visibility, and convenience more strongly.
Typical procedure:
Tools used:
Plant layout is the arrangement of physical facilities to ensure smooth flow of men, materials and machines.
Objectives:
Key principles:
Common types:
Selection depends on volume-variety, product size, and process type.
Machines and workstations are arranged according to the sequence of operations.
Suitable for:
Advantages:
Limitations:
Similar machines/functions are grouped together (all drilling in one area, all painting in another).
Suitable for:
Advantages:
Limitations:
Product remains at one place; men, materials and machines come to it.
Examples:
Advantages:
Limitations:
Machines are arranged in cells to process a family of similar parts (group technology concept).
Benefits:
Material handling is the movement, storage, control and protection of materials throughout production and distribution.
Principles (brief):
Good layout + good material handling reduces cost and improves productivity.
Common problems:
Improvements:
Define requirements → Identify regions → Shortlist sites → Evaluate factors/cost → Compare alternatives → Final location
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Facility location (where to set up the plant/service unit) and plant layout (how to arrange machines, departments, and work areas inside the plant) are strategic decisions. A wrong location increases transport cost, delays, and labour problems. A poor layout causes extra movement, bottlenecks, waiting time, accidents, and higher cost. Therefore, location and layout decisions directly impact cost, quality, delivery speed, and productivity.
This chapter typically asks:
Both decisions aim to reduce total cost and improve flow and service.
Good location and layout help to:
Major factors (exam list):
Service location often emphasizes customer access, parking, visibility, and convenience more strongly.
Typical procedure:
Tools used:
Plant layout is the arrangement of physical facilities to ensure smooth flow of men, materials and machines.
Objectives:
Key principles:
Common types:
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Factors affecting facility location (any four):
Thus, location selection balances cost, service, and operational feasibility.
Objectives of plant layout (any four):
Hence, a good layout reduces cost and improves productivity and delivery performance.
Facility location is a long-term decision and is usually done in stages.
Flowchart:
Define needs → Select region → Shortlist cities → Evaluate sites
↓
Weighted scoring + cost comparison → Choose best location → Implement
Conclusion: A systematic procedure reduces risk and ensures lowest total long-run cost with good service level.