Kristu Jyoti College of Management and Technology

Post Graduate Department of Management studies

OPERATIONS MANAGEMENT
STUDY MATERIAL

Module II | MA HRM | 2nd Semester

Christin Mathew

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 MHRM
PRODUCTION & OPERATIONS PLANNING, MANUFACTURING SYSTEM, LAYOUT

Module -II
Production planning and control is a predetermined process which includes the use of
human resource, raw materials, machines etc. PPC is the technique to plan each and every
step in a long series of separate operation. It helps to take the right decision at the right
time and at the right place to achieve maximum efficiency.

Production planning consists of the evaluation and determination of production inputs

such as labour, machinery and equipment, materials and utilities to achieve the desired
goal. The productivity of an organisation can be improved by better planning efforts.

Production control regulates and stimulates the orderly show of materials in the
manufacturing process from the beginning to the end. Production planning may be defined
as the technique of foreseeing every step in a long series of separate operations, each step
to be taken at the right time and in the right place and each operation to be performed in
maximum efficiency.

Objectives of Production Planning & Control in Operations Management

1. to ensure safe and economical production process

2. to effectively utilize plant to maximize productivity

3. to maximize efficiency by proper coordination in production process

4. to ensure proper delivery of goods

5. to place the right man for the right job, at right time for right wages.

6. to minimize labor turnover

7. to reduce the waiting time

8. minimize idle time

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9. Proper coordination of different departments.

10. Coordinating the quality control activities

Steps in PPC/Main elements of Production Planning & Control

The following are main elements of Production Planning and Control.

1. Planning
It consists of the evaluation and determination of production inputs such as labour,
machinery and equipment, materials and utilities to achieve the desired goal.

2. Routing
It is about selection of path or route through which raw materials pass in order to make it
into a finished product. The points to be noted while routing process are – full capacity of
machines, economical and short route and availability of alternate routing.

3. Loading
Loading Activities are concerned with preparation of workloads and fixing of starting and
completing date of each operation.

4. Scheduling-On the basis of the performance of each machine, scheduling tasks are
completed.

5. Dispatching
Dispatching is the routine of setting productive activities in motion through the release of
orders and instructions, in accordance with previously planned time and sequence,
embodied in route sheet and schedule charts. It is here the orders are released.
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6. Expediting / Follow-up
It is a control tool which brings an idea on breaking up, delay, rectifying error etc., during
the progress of work.

7. Inspection

Inspection is to find out the quality of executed work process.

8. Corrective Action
At evaluation process, a thorough analysis is done and corrective measures are taken in the
weaker spots.

Stages of Production Planning & Control

Production Planning & Control is done in three stages namely,

1. Pre-planning
2. Planning
3. Control.
Stage 1: Pre-Planning
Under this phase of production planning, basic ground work on the product design, layout
design and work flow are prepared. The operations relating to the availability scope and
capacity of men, money materials, machines, time are estimated.
Stage 2: Planning This is a phase where a complete analysis on routing, estimating and
scheduling is done. It also tries to find out the areas of concern for short time and long time
so that prominent planning can be prepared.
Stage 3: Control
Under this phase, the functions included are dispatching, follow up, inspection and
evaluation. It tries to analyze the expedition of work in progress. This is one of the
important phases of the Production Planning and Control.

TYPES OF PRODUCTION PLANNING AND CONTROL

1. Aggregate Planning

Aggregate planning is a process in which overall operations of the organization are plan In
advance over a period of 3 to 18 month. It is done by matching the forecasted demand with
resources of the organisations such as men, material, machine and money. In this method,
components of supply and demand such as sales forecasts, production levels, inventory,
customer backlogs are expressed in common unit at aggregate level. These plans are
prepare, analyzed and reviewed every month by operations manager. They determine the
demand forecast and allocate resources in terms of men, money, material and machines
from time to time.

2. Operation strategy planning -It consist of long range strategic planning, short term and
medium term

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Long Range- More than 1 year

Medium Range-6-18 Months

Short range-Weekly

3. Capacity Requirements Planning (CRP)

Capacity Planning describes the overall capacity of the organisation to meet the demand
forecast and resources in terms of men, machine, material and money in order to meet the
forecasted demand. Capacity can be termed as ability of an organization in terms of
manufacturing goods or providing services in a specified time period.

4. Master Production Scheduling (MPS)

MPS indicates exact number of units of each product/component Produced weekly upon
the demand forecast or actual orders. In other words, it translates the demand into the
production plan. Master Schedule may be prepared for a months, week or fortnight
depending up on the circumstances of each case. It also includes the details regarding
requirements raw materials and man- hours and estimation of overhead expenses to the
specified period for which such schedule is being prepared

5. Material Requirements Planning (MRP)

It is an inventory control system that helps in handling materials and appropriate

arrangement of resources and supports in placing purchase or requisition order in a
proper timeframe.

6. Assembly line balancing

It is the process of assigning proper number of workers or machines for each operations of
an assembly line so as to meet required production rate with minimum or zero ideal time.

Prerequisites of production planning and control

1. Data applicable to Design

The design of the product is most important which is supplied by the customer.
Based on the design provided, the entire shop floor plan is decided. This gives the
core idea of extracting the type of materials required, machine utilization, numbers
of workers required etc.
2. Data applicable to Equipment’s
The equipment’s required for manufacturing the products mainly follow a sequence
of operations to be performed on the same. The sequence of operations is mainly

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 decided from the design given by the customers. These also include the tooling and
accessories necessary for holding the job in the machine. The feed of tool and depth
of cut. The size of machine depends upon dimension of work piece to be machined.
3. Data applicable to raw materials The raw material requirements for products
depends mainly upon the customer requirements and demands, the type of material
to be used , specifications like composition chemical involvement , type of process
etc.
4. Data applicable to tooling
Type of tooling depends upon composition of work pieces. It also incorporates the
method of machining to be carried out that will give standardized sizes of tools and
cutting accessories required for production.
5. Data applicable to performance standard
In an industrial engg process, taken as a whole, there are some standard methods or
procedures to be followed while planning a process. The production planning
techniques are mainly based on the type of end or final products to be made. This is
decided by the type of drawing or part diagrams sent by the customers.
6. Data applicable to Labour
Management of labour on shop floor along with the assignment of Jobs and
productivity output. Labour required in Industrial engg is mainly categorized into

o Labour at management level

o Labour at staff level
o Labour at shop floor level
7. Data applicable to operating systems
The operating systems considered in an industry mainly and wholly depend upon
type of products to be manufactured. The final end products decide the type of
operating system applicable. It is usually called as the plant layout planning. The
layout of the plant forms a major part of operating system
Functions of PPC

(i) Provision of raw material, equipment, machines and labour.

(ii) To organise production schedule in conformity with the demand forecast.

(iii) The resources are used in the best possible manner in such a way that the cost of
production is minimised and delivery date is maintained.

(iv) Determination of economic production runs with a view to reduce setup costs.

(v) Proper co-ordination of the operations of various sections/departments responsible for

production.

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(vi) To ensure regular and timely supply of raw material at the desired place and of
prescribed quality and quantity to avoid delays in production.

(vii) To perform inspection of semi-finished and finished goods and use quality control
techniques to ascertain that the produced items are of required specifications.

(viii) It is also responsible for product design and development.

Advantages of Production Planning and Control

Production planning and control yields the following main advantages,
1. Avoidance of Rush Orders
Production is well planned and its time aspects are well controlled. Therefore, production
control reduces the number of risk-orders and overtime work on plant.
2. Avoidance of Bottlenecks
The incomplete work does not get accumulated because production control maintains an
even flow of work.
3. Cost Reduction
Production control programmes minimizes the idleness of men and machines, keeps in
process inventories at a satisfactory level, leads to a better control of raw materials
inventory, reduces costs of storage and materials handling, helps in maintaining quality
and containing rejection and thus reduces unit cost of production.
4. Effective Utilization of Resources
It reduces the loss of time by the workers waiting for materials and makes most effective
use of equipments.
5. Co-Ordination
It serves to co-ordinate the activities of plant and results in a concerted effort by workmen.
6. Benefits to Workers
Adequate wages, stable employment, job Security, improved working conditions, increased
personal satisfaction, high morale.
7. Efficient Service to Customers
It ensures better service to the customers by enabling production to be conducted in
accordance with the time schedules and therefore deliveries are made on promised dates.
8.Higher Product Quality
Production control helps managers, line supervisors and employees catch defects before
they reach the customer.
9.Reduced Waste
Production control incorporates technical measurements and quality assurance principles
to eradicate manufacturing inefficiencies. to perform job duties.
10.Better Decision Making
Without the right information, it is hard for operations managers to direct their personnel
and monitor production systems. Quality tools such as control charts allow management to
discern normal process variations from serious process deficiencies.

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Limitations of Production planning and Control (PPC)
 This system is solely based on assumptions; if the assumptions are proved to be
right, you have a successful implementation, else, your production planning and
control (PPC) is a failure
 This system can face rigidity from employees through their behavior
 Production Planning and Control (PPC) is difficult for small-scale firms and
organizations as it is extremely time-consuming
 The initial setup cost is extremely high and won’t be affordable to many
organizations
 Highly dependent on external factors such as changes and updates in technologies,
government rules and regulations
Production Planning
Production planning involves the means by which a manufacturing plan is determined,
information issued for its execution, data collected and recorded, which will enable the
plant to be controlled through all its stages. A few definitions are given here in order to have
clear understanding of the term ‘Production Planning’.

Objectives of Production Planning:

1. To achieve coordination among various departments relating to production.

2. To make adequate arrangement of men, money, materials, machines tools, implements and
equipment relating to production.

3. To decide about the production targets to be achieved by keeping in view the sales forecast.

4. To keep production operation continuous.

5. To achieve desired share of the market.

6. To fix right type of man for right type of job.

7. To achieve the desired level of profit.

8. To make all arrangements to remove possible obstacles in the way of smooth production.

9. To achieve economy in production cost and time.

10. To initiate production on modern lines.

11. To operate the plant at planned level of efficiency.

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Techniques of PPC

Demand Forecasting

It is the process in which historical sales data is used to develop an estimate of an

expected forecast of customer demand. To businesses, Demand Forecasting provides an estimate of
the amount of goods and services that its customers will purchase in the foreseeable future

linear programming

It is a mathematical technique for maximizing or minimizing a linear function of several variables,

such as output or cost.

Just in Time

It denoting a manufacturing system in which materials or components are delivered immediately

before they are required in order to minimize storage costs.

EOQ

Economic order quantity (EOQ) is the ideal order quantity a company should purchase to minimize
inventory costs such as holding costs, shortage costs, and order costs. This production-scheduling
model was developed in 1913 by Ford W. Harris and has been refined over time.

Inventory management

It refers to the process of ordering, storing, and using a company's inventory. These include
the management of raw materials, components, and finished products as well as warehousing and
processing such items.

ABC classification

It is a ranking system for identifying and grouping items in terms of how useful they are for
achieving business goals. The system requires grouping things into three categories: A - extremely
important. B - moderately important. C - relatively unimportant.

Work study

Work study is a means of enhancing the production efficiency (productivity) of the firm by
elimination of waste and unnecessary operations. It is a technique to identify non-value adding
operations by investigation of all the factors affecting the job.
Method study
Method study enables the industrial engineer to subject each operation to systematic analysis. The
main purpose of method study is to eliminate the unnecessary operations and to achieve the
best method of performing the operation.

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Work measurement
It is the application of techniques designed to establish the time for a qualified worker to carry out
specified jobs at a defined level of performance.

Production control

Production control regulates and stimulates the orderly show of materials in the
manufacturing process from the beginning to the end. Production planning may be defined
as the technique of foreseeing every step in a long series of separate operations, each step
to be taken at the right time and in the right place and each operation to be performed in
maximum efficiency.

Objectives of Production Control

 Provision of raw material, equipment, machines and labour.

 To organize production schedule in conformity with the demand forecasts.
 The resources are used in the best possible manner in such a way that the cost of
production is minimized and delivery date is maintained.
 Determination of economic production runs with a view to reduce setup costs.
 Proper co-ordination of the operations of various sections/departments responsible
for production.
 To ensure regular and timely supply of raw material at the desired place and of
prescribed quality and quantity to avoid delays in production.
 To perform inspection of semi-finished and finished goods and use quality control
techniques to ascertain that the produced items are of required specifications.
 It is also responsible for product design and development.

Techniques of production control

1. Gantt charts- A Gantt chart is a horizontal bar chart developed as a production control
tool in 1917 by Henry L. Gantt, an American engineer and social scientist. Frequently used
in project management, a Gantt chart provides a graphical illustration of a schedule that
helps to plan, coordinate, and track specific tasks in a project.

2. Line of balance- Line of Balance (LOB) is a method of showing the repetitive work that
may exist in a project as a single line on a graph. It enhances easier cost and time
optimization analysis because of all the information available for each activity in the
project.

3. PERT/CPM- PERT stands for Program Evaluation Review Technique. PERT charts are
tools used to plan tasks within a project - making it easier to schedule and coordinate team
members accomplishing the work. PERT charts were created in the 1950s to help manage
the creation of weapons and defense projects for the US Navy.

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Critical path method (CPM) is a resource-utilization algorithm for scheduling a set
of project activities’ A list of all tasks required to complete the project. The dependencies
between the tasks. The estimate of time (duration) that each activity will take to complete.
In project management, a critical path is the sequence of project network activities which
add up to the longest overall duration, regardless if that longest duration has float or not.
This determines the shortest time possible to complete the project.
The Push System of Inventory Control

The push system of inventory control involves forecasting inventory needs to meet
customer demand. Companies must predict which products customers will purchase along
with determining what quantity of goods will be purchased. The company will in turn
produce enough product to meet the forecast demand and sell, or push, the goods to the
consumer.

Pull System of Inventory Control

The pull inventory control system begins with a customer's order. With this strategy,
companies only make enough product to fulfill customer's orders. One advantage to the
system is that there will be no excess of inventory that needs to be stored, thus reducing
inventory levels and the cost of carrying and storing goods.

Push-Pull system
"Push type" means make to Stock in which the production is not based on actual demand.
"Pull type" means make to Order in which the production is based on actual demand. In
supply chain management, it is important to carry out processes halfway between push
type and pull type or by a combination of push type and pull type.

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New Product Development

Developing a new product involves a number of stages which typically center around the
following key areas:

The Idea: Every product has to start with an idea. In some cases, this might be fairly
simple, basing the new product on something similar that already exists. In other cases, it
may be something revolutionary and unique, which may mean the idea generation part of
the process is much more involved. In fact, many of the leading manufacturers will have
whole departments that focus solely on the task of coming up with ‘the next big thing’.

Research: An organization may have plenty of ideas for a new product, but once it has
selected the best of them, the next step is to start researching the market. This enables
them to see if there’s likely to be a demand for this type of product, and also what specific
features need to be developed in order to best meet the needs of this potential market.

Development: The next stage is the development of the product. Prototypes may be
modified through various design and manufacturing stages in order to come up with a
finished product that consumers will want to buy.

Testing: Before most products are launched and the manufacturer spends a large amount
of money on production and promotion, most companies will test their new product with a
small group of actual consumers. This helps to make sure that they have a viable product
that will be profitable, and that there are no changes that need to be made before it’s
launched.

Analysis: Looking at the feedback from consumer testing enables the manufacturer to
make any necessary changes to the product, and also decide how they are going to launch it
to the market. With information from real consumers, they will be able to make a number
of strategic decisions that will be crucial to the product’s success, including what price to
sell at and how the product will be marketed.

Introducing product in market: Finally, when a product has made it all the way through
the new product development stage, the only thing left to do is introduce it to the market.
Once this is done, good product life cycle management will ensure the manufacturer makes
the most of all their effort and investment.

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Plant Layout/Factory layout

Plant layout is the most effective physical arrangement, either existing or in plans of
industrial facilities i.e. arrangement of machines, processing equipment and service
departments to achieve greatest co-ordination and efficiency of 4 M’s (Men, Materials,
Machines and Methods) in a plant. Plant layout is a mechanism which involves knowledge
of the space requirements for the facilities and also involves their proper arrangement so
that continuous and steady movement of the production cycle takes place.

According to George R. Terry

“Plant layout involves the development of physical relationship among building, equipment
and production operations, which will enable the manufacturing process to be carried on
efficiently”.

Advantages of a Good Layout

a.Advantages of layout to Worker

1. Reduction in the effort of the worker.

2. Fewer material handling operations.
3. Extension of the process of specialization.
4. Ensuring maximum efficiency.
5. Better working condition and reduction in the number of accidents.

b. Advantages of layout in Labour Costs

1. Reduction in the number of workers.

2. Increase in production per-man-hour.
3. Reduction in the length of haul.
4. Minimum lost motions between operations.

c. Advantages of layout in Other Manufacturing Costs

1. Maintenance and tool replacement costs are reduced.

2. Spoilage and scrap is minimized.
3. Greater saving in the waste of raw material consumption.
4. Improved quality of product due to reduction in the number of handling.
5. Saving motive power.
6. Effective cost control.

d. Advantages of layout in Production Control

1. Provision of adequate and convenient storage facilities.

2. Better conditions for receipts, shipment and delivery.
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3. Increased pace for production.
4. Achievement of production targets unfailingly.
5. Reduction in the number of stock-chasers who are employed to get the work done on
time.

e. Advantages of layout in Supervision

1. Helps in easing the burden of supervision.

2. Reduces the level of inspection and this minimizing the cost of inspection.

f. Advantages of layout in Capital Investment

1. Investment in machinery and equipment is reduced

2. Permanent investment is kept at the minimum
3. Floor space and shop areas required for manufacturing are reduced.

Problems of of Bad Plant Layout

The symptoms of bad layout are as follows:

1. Movement of machines, materials, part assemblies and even workers.
2. Excessive number of work-in-process.
3. Poor utilization of space.
4. Long material flow lines.
5. Excessive handling by skilled workers and increased handling costs.
6. Increase in maintenance time.
7. Long production cycles.
8. Delay in delivery schedules.
8. Increase in handling costs.
10. Difficulty experienced in supervision and control.
11. Increase in breakage of materials and products.

Top 10 Factors influencing design of plant layout

The following factors should be considered While designing the layout.

1. Nature of the product: The nature of the product to be manufactured has a significant
influence on plant layout. Small and light products can be moved from one machine to
another with minimum effort and time and therefore line layout would be more suitable.
Stationary layout would be suitable for heavy and bulky products. In case of production of
large variety of non-standardized products, process layout is ideal.
2. Production volume: Line layout should be preferred if standardized commodities are
manufactured on a large scale. Functional layout is suitable if production is based on
customers orders. It is better suited for low volume job production.
3. Location of the site: The topology and size of the site influences the choice of a
particular layout. The idea is to maximize the utilization of space. Layout should also suit

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the factory building. The positioning of elevators, stairways, parking lots and storage points
also influence the layout.
4. Type of machines: Stationary layout is preferable if machines are heavy and emit more
noise. Such heavy machinery can be fitted on the floor. Adequate space should be provided
for the location of machines and also there should be sufficient space between them to
avoid accidents.
5. Climate: Temperature, illumination, ventilation should be considered while deciding on
the type of layout. The above factors should be considered in order to improve the health
and welfare of employees.
6. Service facilities: The layout should provide for the comforts and welfare of the
employees. It should have adequate provision for rest rooms, drinking water, lavatory.
There should be sufficient space for free movement of workers.
7. Safety of employees: While deciding on a particular type of layout, the safety of
employees should be given importance. The layout should provide for obstruction free
floors, non-slippery floors, protection against dangerous fumes, excess heat, strong odors
Etc.
8. Type of production: Layout plans differ according to the type of production. In case of
job orders, production of non-standardized products are undertaken, and therefore
functional or process outlet is suitable. Line layout would be suitable when there is mass
production of standardized goods.
9. Type of process: In the case of intermittent type of production (bi-cycle manufacturing,
electronics), functional layout is suitable. For synthetic type of Production (cement and
automobile industries), line layout is preferable.
10. Management policies: Policies of the management relating to type of product, quality,
scale of production, level of plant integration, type of production, possibility of future
expansion etc., influence the type of layout to be adopted.

Steps involved in designing a plant layout

The primary objective of plant layout is to maximize production at minimum cost. The
layout should be designed in such a way that it is flexible to change according to new
processes and production techniques.
The following are the steps involved in designing a layout:
1. Collection of required data: Data about the size of the plant, type of products to be
produced, method of production to be adopted, extent of space available, extent of
mechanization etc are to be collected.
2. Preparation of blueprint for the floor plan: Based on the data gathered, a blue print
has to be prepared for the floor plan. Care should be taken to ensure, that the layout
provides for unhindered movement of men and materials with minimum possible effort
and time.
3. Preparation of process chart and flow diagram: The process chart and flow diagram
depicting the various activities to be performed and the linkages between them has to be
prepared.
4. Preparation of draft layout: A draft layout needs to be prepared clearly depicting the
positioning of men and materials and the process flow. The draft layout should be
circulated and discussions held with employees inviting suggestions for improvement.

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Flaws pointed out need to be corrected and suggestions received incorporated after due
discussions.
5. Test run: A test run is important to understand the efficiency of the layout in a real time
work environment. Problems not noticed in the earlier stages can occur at this stage. The
initial problems noticed need to be modified and test runs should be continued for at-least
a few times to ensure that the layout is able to facilitate maximum production at minimum
cost.

Types of Plant layout

A. Product or line layout,
B. Process or functional layout,
C. Layout by stationary material

(A) Product or Line Layout:

Product or Line Layout is the arrangement of machines in a line (not always straight) or a
sequence in which they would be used in the process of manufacture of the product. This
type of layout is most appropriate in case of continuous type of industries where raw
materials is fed at one end and taken out as finished product at the other end. For each type
of product a separate line of production will have to be maintained. This type of layout is
most suitable in case of metal extraction industry, chemical industry, soap manufacturing
industry, sugar industry and electric industry. It should be noted that this method is most
suitable in case of mass production industries.

Product layout is suitable where:

(i) large quantity of standardized products are produced;
(ii) the standardized products are to be processed repetitively or continuously on the given
production facilities;
(iii) there must be sufficient volume of goods processed to keep the production line actively
occupied,
(iv) there should be greater interchangeability of the parts;

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(v) to maintain good equipment balance each work station must employ machines or
equipment’s of approximately equal capacities.
(B) Functional or Process Layout:
It is just the reverse of product layout. There is a functional division of work under this
method. For example, lathes are fixed in one department and welding activities are carried
in another department of the factory. The salient features of this type of layout are based
on Frederick W. Taylor’s concept of ‘functional organisation’.
This method is generally adopted for producing different varieties of unlike products. This
is particularly adopted tor job order industries like engineering, ship building and printing
etc. The following diagram shows that raw material travels through various process or
departments from lathes passing through mills, grinders, drills, welding, inspection,
finishing, and assembly and to finished product.

(C) Layout by Stationary Material:

This type of layout is undertaken for the manufacture of large parts and assemblies. In this
case, material remains fixed or stationary at one place, men and equipment are taken to the
site of material. This is suitable in case of ship building, locomotives and heavy machinery
industries etc.
(D) Fixed Position Layout:

This type of layout is the least important for today’s manufacturing industries. In this type
of layout the major component remain in a fixed location, other materials, parts, tools,
machinery, man power and other supporting equipment’s are brought to this location.
The major component or body of the product remain in a fixed position because it is too
heavy or too big and as such it is economical and convenient to bring the necessary tools
and equipment’s to work place along with the man power. This type of layout is used in the
manufacture of boilers, hydraulic and steam turbines and ships etc.
(E)Combination Type of Layout:
Now a days in pure state any one form of layouts discussed above is rarely found.
Therefore, generally the layouts used in industries are the compromise of the above
mentioned layouts. Every layout has got certain advantages and limitations. Therefore,
industries would to like use any type of layout as such.
Flexibility is a very important factory, so layout should be such which can be molded
according to the requirements of industry, without much investment. If the good features

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of all types of layouts are connected, a compromise solution can be obtained which will be
more economical and flexible.

(F) Just in time layout

Just in time layout (JIT) inventory system is a management strategy that aligns raw-
material orders from suppliers directly with production schedules.

Principles of Plant Layout:

While designing the plant layout, the following principles must be kept in view:
(i) Principle of Minimum Movement:
Materials and labour should be moved over minimum distances; saving cost and time of
transportation and material handling.
(ii) Principle of Space Utilization:
All available cubic space should be effectively utilized – both horizontally and vertically.
(iii) Principle of Flexibility:
Layout should be flexible enough to be adaptable to changes required by expansion or
technological development.
(iv) Principle of Interdependence:
Interdependent operations and processes should be located in close proximity to each
other; to minimize product travel.
(v) Principle of Overall Integration:
All the plant facilities and services should be fully integrated into a single operating unit; to
minimize cost of production.
(vi) Principle of Safety:
There should be in-built provision in the design of layout, to provide for comfort and safety
of workers.
(vii) Principle of Smooth Flow:
The layout should be so designed as to reduce work bottlenecks and facilitate
uninterrupted flow of work throughout the plant.
(viii) Principle of Economy:
The layout should aim at effecting economy in terms of investment in fixed assets.
(ix) Principle of Supervision:
A good layout should facilitate effective supervision over workers.
(x) Principle of Satisfaction:

A good layout should boost up employee morale, by providing them with maximum work
satisfaction.

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