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CMA Intermediate · Operations Management and Strategic Management · Introduction to Operations Management

The operations manager of a textile mill in Surat is asked to choose between a process layout and a product layout for a new weaving unit. Which statement correctly describes the responsibility involved and the usual condition favouring a product layout?

Choosing a layout is a system-design decision with long-term impact. A product layout, where equipment follows the sequence of operations, suits high-volume standardised output. Low-volume customised work is better served by a process layout, so the other options reverse or misplace the responsibility.

  1. AIt is a design-of-the-system decision; a product layout suits high-volume, standardised outputCorrect
  2. BIt is a day-to-day control decision; a product layout suits low-volume, customised output
  3. CIt is a financing decision; a product layout suits irregular demand
  4. DIt is a marketing decision; a product layout suits job-shop production

Explanation

Layout is chosen when designing the operating system, so it is a design decision with long-term effect. A product layout arranges equipment along the sequence of operations and pays off when volume is high and the product is standardised. Low-volume customised work suits a process layout, which makes option B wrong.

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