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)

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.

Answer rating: 100% (QA)

Step1 i The most important part of the company is the chassis which is installed in differ... View the full answer