7. What is a plant layout?
For a good process to work smoothly, a proper layout is required. The main
purpose of a plant layout should be low handling cost and low throughput time.
There are two types of plant layout:
Product or straight-line layouts: In this, minimization of flow from one
operation to next for any product class as machinery is located.
Process, or functional, arrangements: It is the grouping of similar facilities.
8. What are the major disadvantages of product grouping?
The major disadvantages of product grouping are:
Employee discontent can easily be picked as a broad variety of occupations are
represented in a small area.
The problem of finding competent supervisors is increased due to the variety of
facilities and jobs to be supervised.
Initial investment is more as duplicate service lines such as air, water, gas,
oil, and power lines are required.
9. What is total quality control? Mention the technical standards.
The main objective of total quality control is to provide defect free products
in 100 percent of the time to meet the complete needs of the customer. It
involves all the members in an organization who can affect the quality of the
output - a product or service. ISO 9000 is a world standard for quality, it is
a quality assurance management system, which is divided into four divisions on
the basis of its technical standards:
ISO 9001 covers procedures from purchasing to service of the sold product.
ISO 9002 targets towards standards related to processes and the assignment of
ISO 9003 It is applied to final inspection and test.
ISO 9004 It is applied to quality management systems.
10. What are the problems involved with queuing theory?
Matching of servers, which is provided to randomly arriving customers or
services, which takes random amount of time, are the problems involved with
Queuing theory. It is also known as waiting-line theory. Typical type of
problems involved is, people (or customers or parts) arrive at a server (or
machine) and wait in line (in a queue) until service is rendered. There may be
one or more servers.
11. What is a profit sharing plan?
It is a form of incentive in which each participating worker receives a periodic
bonus in addition to a regular pay only when the company earns a profit. A
minimum profit is usually set aside for a return on invested capital, and
beyond this amount, a percentage of profits goes into a pool to be shared by
the employees. To protect the workers against adverse developments outside
their control, some plans give the workers a bonus whenever the actual payroll
dollars are less than the normal amount expected for a given volume of