“Layout Dilemma at MultiCraft Manufacturing Ltd.
”
Background
MultiCraft Manufacturing Ltd. is a diversified mid-sized manufacturing
company located in the outskirts of Pune, India. The company produces a wide
range of products that cater to industrial and consumer markets. With growing
demand and the introduction of new product lines, the company is now facing
serious challenges in managing production efficiency and space utilization in
its factory. The operations team has realized that the existing layout and
production systems— which were effective in the early days—are no longer
optimal for the company’s current scale and complexity. To address these
issues, the management is looking to restructure both the production system
and the facility layout to improve efficiency, reduce lead times, and enhance
flexibility.
Current Product Lines and Systems
1. Customized Industrial Machinery Components - Low volume, high
variety. - Made-to-order. - Current production system: Job Shop. - Layout:
Process Layout.
2.Electric Bicycles - Moderate variety, moderate volume. - Produced in
batches. - Current production system: Batch Production. - Layout:
Functional departments with shared resources.
3. Portable Power Banks - High volume, low variety. - Continuous
production with few model changes. - Current production system:
Assembly Line. - Layout: Unstructured linear flow with storage in
between stages.
The Problem
Despite strong demand and solid product quality, MultiCraft is struggling with
inefficiencies: - Long setup times for batch production. - Frequent material
movement delays. - Underutilization of machines and labor in some sections. -
Congestion and bottlenecks during peak production times. Moreover, the
management is planning to introduce a new product line: compact solar-
powered generators, requiring a modular and flexible production process with
mixed-model capabilities. The leadership team now seeks expert guidance to: -
Reassess the suitability of current production systems and layouts for each
product line. - Recommend better-matched production systems and layouts,
including cellular or fixed-position layouts, if appropriate. - Suggest how to
integrate the new product line into the overall plant setup with minimal
disruption.
Questions:
1. Evaluate the alignment between the current production systems and
plant layouts for each of MultiCraft’s product lines. For each, suggest
the most efficient production system–layout combination and justify
how it addresses existing inefficiencies.
2. Given the introduction of the new product line—solar-powered
generators—what production system and plant layout would you
recommend? Explain how your proposed setup supports flexibility,
scalability, and minimal disruption to existing operations.
3. Propose a step-by-step reorganization plan for MultiCraft’s facility that
includes changes to layout and workflow. How would you ensure
minimal downtime during the transition while optimizing material flow,
labor utilization, and future adaptability?
