Millworks, Inc., is a manufacturer of defense systems used by the military. Typically, Millworks produces three types of components in four different work centers. Though the components are part of the same defense system, they differ in size and complexity. Presently, the company uses a process-oriented facility to manufacture the components. The company has had problems with growing levels of work-in-process inventory. In addition, materials handling costs have become excessively high. As a result of these problems, management is considering reconfiguring the plant as a product-oriented facility. The process includes cutting, milling, assembly, and testing.

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A. Draw a diagram of Millworks' existing production processes. Assume the production facility has a square floorplan. Each process requires one-fourth of the floorspace. The first process begins in the top left corner. Products move clockwise around the facility, exiting at the bottom left corner of the building.

B. Draw a diagram that represents how Millworks might rearrange its processes consistent with cellular manufacturing concepts.

C. Explain how your two drawings differ. What are the benefits of a product-oriented plant layout?