Advantages And Disadvantages Of Vitaton Sdn Bhd
One of the disadvantages of product-orientation layout is work stoppage at any one point can tie up the whole operation. This is due to the characteristic of the layout whereby one process in the production must be fulfilled before the material can be move to the next process. Hence, the company’s production processes are highly vulnerable to any work stoppage or interruption. Work stoppage may occur when the heating or blowing machine breakdown which will then interrupt the whole production process.
Another disadvantages of product-oriented layout is the high volume is required because large investment needed to setup the process. Lower production volume of bottled mineral water will indicates that the machines are at lower rate of utilization. The large investment for machines is an important justification for high production level. In order to achieve its fixed production volume, Vitaton Sdn Bhd may need to keep inventory for its bottled mineral water which may increase the holding cost incurred by the company.
Lastly, Vitaton Sdn Bhd use product-oriented layout is costly. It is because that the machines in this type of layout are arranged on the basis of sequence of operations and not according to functions. Therefore, it will results in duplication of similar type of machines needed for different lines of production. Besides that, they also may faced the system is at risk from equipment breakdown, absenteeism and downtime due to preventive.
Location Strategy As we
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