Cost CH - 2

DEBRE MARKOS INSTITUTE OF TECHNOLOGY
DEPARTMENT OF MECHANICAL ENGINEERING
MEng 5322 : Process Planning & Product Costing

Chapter Two
For 5th Year Mechanical Engineering Students
By: Feleke Worku (Ass.Prof.)
1
Flow patterns of materials
 “Flow Pattern” means the system to be adopted, for the movement of
raw materials, from the beginning and up to the end of manufacturing.
 The overall-objective of the „Flow Pattern‟ is to plan for the
economical movement of the raw materials throughout the plant.
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 Flow pattern means the path followed by the work through the plant, starting
from raw material up to finished product.
 As each plant layout is unique, there is no best way to layout of a flow pattern.
 However, the flow pattern should be such that it:
 Minimizes material handling
 Minimizes back-tracking and cross movement of work.
 Maximizes floor space utilization.
 Results in most flexible layout.
3
There are six basic flow patterns:
(i) I-Flow or Line Flow
(ii) L-Flow
(iii) U-Flow
(iv) S-Flow
(v) O-Flow
(vi) Convoluted
4
a. Straight line: Most suited for product layout.
It is the simplest form of flow.
Materials are fed at one end and components leave the line at the other end.
This type is convenient in I-shaped buildings.
E.g. I-Flow is preferred for building automobile Industries.
b. L- Flow: Similar to straight line but economizes on floor spaces.

 It is similar to the I-Flow and is used where I-line cannot be accommodated in the
available space.
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c. U-Shaped: The raw materials enter and the finished products leave the plant at
the same end. This pattern results in better space utilization and easier inspection.
d. (i,ii) S-Flow: Still better space utilization and simpler inspection. However the
material enters the plant at one end and the finished products leave the plant from
the other end. It is normally used when production line is very long.
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 e. Circular or O-Flow: Easier supervision and minimum back-tracking of work. This flow is
suited where the operations are carried out on rotary tables or where the starting point abd the
finishing point are the same, for example, mechanized foundry.
 f. Convoluted: This pattern has the same characteristics as the S-Flow pattern.
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 Number of parts in each product
 Number of operations on each part
 Sequence of operations in each part
 Number of subassemblies
 Number of units to be produced
 Product versus process type layout
 Desired flexibility
 Locations of service areas
 The building
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 Materials handling cost.
 Amount of work-in-process.
 Capital and space tied up by work-in-process.
 Length of total production time.
 The rate of the performance and coordination of operations.
 Amount of physical and mental strain on the operators.
 Supervision and control mechanisms.
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 The aim of plant layout is to achieve an optimum effective flow of
materials (raw materials, and in-process materials) through the plant.
 The principle of minimum movements reduces:
 Material handling costs
 In- process inventory
 Space for processing.
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 While designing a new plant layout, generally the flow patterns are
decided earlier and then a system of facilities (machinery, material and

building, etc.,) is designed and built around the flow pattern.
Types of Layout
1. Fixed product layout
2. Product layout
3. Process layout
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Processes  product (e.g. shipbuilding)
13
Advantages
1. Material movement is reduced.
2. Promotes job enlargement by allowing individuals or teams to perform the “whole job”.
3. Continuity of operations and responsibility results from team.
4. Highly flexible; can accommodate changes in product design, product mix, and product
volume.
5. Independence of production centers allowing scheduling to achieve minimum total
production time.
Limitations
1. Increased movement of personnel and equipment.
3. Higher skill requirements for personnel.
4. General supervision required.
5. Cumbersome and costly positioning of material and machinery.
6. Low equipment utilization.
14
• Production line according to the processing sequence of the product
• High volume production of same product
15
 Advantages
1. Since the layout corresponds to the sequence of operations, smooth and logical flow lines result.
2. Since the work from one process is fed directly into the next, small in-process inventories result.
3. Total production time per unit is short.
4. Since the machines are located so as to minimize distances between consecutive operations, material
handling is reduced.
 Limitations
1. A breakdown of one machine may lead to a complete stoppage of the line that follows that machine.
2. Since the layout is determined by the product, a change in product design may require major alternations in
the layout.
3. The “pace” of production is determined by the slowest machine.
5. Comparatively high investment is required, as identical machines (a few not fully utilized) are sometimes
distributed along the line.
16
 All machines performing a particular process are grouped together
in a processing department
 Rapid changes in the product mix
 High interdepartmental flow
 Low production volumes
17
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 Advantages
1. Better utilization of machines can result; consequently, fewer machines are required.
2. A high degree of flexibility exists relative to equipment or man power allocation for specific tasks.
3. Comparatively low investment in machines is required.
4. The diversity of tasks offers a more interesting and satisfying occupation for the operator.
5. Specialized supervision is possible.
 Limitations
1. Since longer flow lines usually exist, material handling is more expensive.
2. Production planning and control systems are more involved.
3. Total production time is usually longer.
4. Comparatively large amounts of in-process inventory result.
5. Space and capital are tied up by work in process.
6. Because of the diversity of the jobs in specialized departments, higher grades of skill are required.
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DEBRE MARKOS INSTITUTE OF TECHNOLOGY

DEPARTMENT OF MECHANICAL ENGINEERING

MEng 5322 : Process Planning & Product Costing

By: Feleke Worku (Ass.Prof.)

 “Flow Pattern” means the system to be adopted, for the movement of

raw materials, from the beginning and up to the end of manufacturing.

 The overall-objective of the „Flow Pattern‟ is to plan for the

economical movement of the raw materials throughout the plant.

from raw material up to finished product.

 However, the flow pattern should be such that it:

 Minimizes material handling

 Minimizes back-tracking and cross movement of work.

 Maximizes floor space utilization.

 Results in most flexible layout.

b. L- Flow: Similar to straight line but economizes on floor spaces.

 Number of operations on each part

 Sequence of operations in each part

 Number of units to be produced

 Product versus process type layout

 Locations of service areas

 Capital and space tied up by work-in-process.

 Length of total production time.

 The rate of the performance and coordination of operations.

 Amount of physical and mental strain on the operators.

 Supervision and control mechanisms.

materials (raw materials, and in-process materials) through the plant.

 The principle of minimum movements reduces:

 Material handling costs

 In- process inventory

 Space for processing.

decided earlier and then a system of facilities (machinery, material and

1. Fixed product layout

• High volume production of same product

 Rapid changes in the product mix

 High interdepartmental flow

 Low production volumes

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