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Logistics as a pillar of efficient production

The construction of new facilities intended for production activities or the reorganization of those already in use often keeps company managers awake at night. The decision involves significant costs, and it is never certain whether the new factory layout will ensure the efficient operation of production lines. Establishing the right priorities for organizing production space helps prevent future problems.

Companies are forced to expand their production facilities either due to business growth or because of the wear and tear of machines and equipment currently in use. Recently, we have observed significant development in technology related to the equipment and construction of production halls. Only by relying on modern equipment and the efficient organization of production facilities is it possible to meet customer requirements. Priorities related to the organization of production space are not always set correctly. Contrary to assumptions, space limitations and the ability to adapt lines to prepare products according to orders are generally not the most important factors. Specialization and modular production lines allow for high automation of production processes, which influences the reduction of the production cost share in the unit cost structure of the product. Consequently, striving to minimize the space allocated for production is not among the most important goals of organizing production facilities. On the other hand, the share of logistics costs in the unit cost structure of the product is relatively increasing.
The article comes from the magazine “Logistyka” 2001/3.

L2001-3s28.pdf