Question 1: Plant Layout Design

Mazoon, a four-wheeler company, is a leading company in Shalala manufacturing chassis of bus/lorry, in 300 acres of land with 200 employees. The annual production capacity of the plant is 40,000 chassis. The market research department projected its future demand to be 1.5 times the present capacity of the plant. So, the company took a decision to set up another plant in Nizwa with a capacity of 100,000 chassis. It is in the process of procurement of the required land of 800 acres. The projected number of employees in the new factory would be 1,000.

The productivity of any company mainly depends on the type of layout that is used to carry out the activities to produce the product. So, the industrial engineering department of the exiting company is given the task of design the right type of layout for the new company.

All the sections of the automobile company will not have the same type of layout. The final assembly of chassis is done on a powered conveyer belt. This part of the company uses product layout which assembles the necessary subassemblies and components to form a full chassis.

The other sections of the company are as follows:

Engine assembly

Cylinder production

Cylinder head production

Piston production

Connecting rod production

Gear production (about 40 different gears)

The following other items and subassemblies are subcontracted:

Radiator

Fuel pump

Fuel injection system (Components)

Cams

Gear box

Clutch plate

Transmission system (Tie rod, gears, axles, etc.)

Wheels and braking system

Tubes and tyres

Horn and electrical system including batteries

Bulbs

Doors

Glasses

Body frame and panels for drivers cabin

Bearings

Nuts and bolts

Cotter pins

Bumpers

Now, the company is left with the option of process layout/product layout/group technology layout/fixed position layout for the sections listed in this case.

Question: As a consultant to the company, critically examine the material handling activities in each section and accordingly suggest a suitable layout.