1. Plant layout
Meaning :
Plant means—it is place where the goods are manufactured.
Lay out means– Physical arrangements of things or Machineries.
Plant layout is the physical arrangement of industrial facilities. It involves the allocation of space & the arrangement of equipment in such a manner that overall operating costs are minimized.

2. Principles of plant layout
Principle of integration (of 5M’s)
Principle of minimum distance
Principle of cubic space utilization( both horizontal & vertical space).
Principle of flow( must be forward no backtracking)
Principle of maximum flexibility
Principle of safety, security & satisfaction
Principle of minimum handling.

3. Factors affecting Plant Layout
The final solution for a Plant Layout has to take into account a balance among the characteristics and considerations of all factors affecting plant layout, in order to get the maximum advantages.
The factors affecting plant layout can be grouped into 8 categories:
Materials
Machinery
Labor
Material Handling
Waiting Time
Auxiliary Services
The building
Future Changes

4. Objectives of plant layout
An efficient layout can be instrumental in the accomplishment of the following objectives-
Economies in materials, facilitate manufacturing process & handling of semi-finished & finished goods.
Proper & efficient utilization of available floor space.
To avoid congestion & bottlenecks.
Provision of better supervision & control of operations.

5. Objectives of plant layout cont.
5. Careful planning to avoid frequent changes in layout which may result in undue increase in cost of production.
6. To provide adequate safety to the workers from accidents.
7. To meet the quality & capacity requirements in the most economical manner.
8. Provision of medical facilities & cafeteria at suitable & convenient places.
9. To provide efficient material handling system.
10. To suggest the improvements in production process & work methods.

6. Types of Plant Layout
The production process normally determines the type of plant layout to be applied to the facility:
1.Product oriented plant layout
Machinery and Materials are placed following the product path.
2.Process oriented plant layout (Functional Layout).
Machinery is placed according to what they do and materials go to them.
3.Fixed position plant layout
Product stays and resources move to it.
4.Cell Layout
Hybrid Layout that tries to take advantage of different layouts types.
In Fixed product layout, the products generally circulate within the production facilities (machines, workers, etc.); in this particular type of layout, the product does not move, it is the different resources that are moved to perform the operations on the product. This type of layout is commonly found in industries that manufacture large size products, such as ships or aircrafts. Process layout groups facilities with similar functions together (resources of the same type). This organization is often reported to be suited when there is a wide variety of product. Product layout is used for systems with high production volumes and a low variety of products. Facilities are organized according to the sequence of the successive manufacturing operations. In Cellular layout, machines are grouped into cells, to process families of similar parts. These cells also need to be placed on the factory floor. Therefore, one is also generally concerned with so called intra cells machine layout problems, as mentioned for example in (Proth, 1992, ch. 3) and (Hamann & Vernadat, 1992). Here, one is concerned with finding the best arrangement of machines in each cell.

7. Product layout-
Layout that uses standardized processing operations to achieve smooth, rapid, high-volume flow
Here machines are arranged in Sequential order.
To the needs of product & in the same sequence as the operations are necessary for manufacture.

8. Product Layout Raw materials or customer
Station 1
Station 2
Station 3
Station 4
Finished item
Material
and/or labor
Material
and/or labor
Material
and/or labor
Material
and/or labor
Used for Repetitive or Continuous Processing

9. Used for Repetitive Processing Repetitive or Continuous
Product Layout
Product Layout
(sequential)
Work
Station 1
Station 2
Station 3
Used for Repetitive Processing
Repetitive or Continuous

10. Advantages of Product Layout
High rate of output
Low unit cost
Labor specialization
Low material handling cost
High utilization of labor and equipment
Established routing and scheduling
Short processing time

11. Disadvantages of Product Layout
Creates dull, repetitive jobs
Poorly skilled workers may not maintain equipment or quality of output
Fairly inflexible to changes in volume
Highly susceptible to shutdowns
Needs preventive maintenance
Require large capital investment

12. A U-Shaped Production Line1 2 3 4 5 6 7 8 9 10 In
Out
Workers

13. Process layout- Layout that can handle varied processing requirements
Here all machines performing similar type of operations are grouped together at one location in the process layout.
Thus here facilities are grouped together acc. To their functions. E.g. all drilling machines are located at one place known as drilling section.

14. Used for Intermittent processing
Process Layout
Process Layout
(functional)
Dept. A
Dept. B
Dept. D
Dept. C
Dept. F
Dept. E
Used for Intermittent processing
Job Shop or Batch

15. Process layout Espuela de Ferrocarril Planeación Fresadoras Recepción
Almacén
Materia Prima
Planeación
Maquinaria
Automática
Tornos
Esmeriladoras
Inspección
Ensamble
Producto
Acabado
Embarque
Camiones
Camiones

16. Advantages of Process Layouts
Can handle a variety of processing requirements
Machines breakdown doesn’t result in shutdown.
Equipment used is less costly
Wide flexibility in production facilities.
Each production unit of system works independently.
High utilization of facilities
Variety makes the job interesting.

17. Disadvantages of Process Layouts
In-process inventory costs can be high
Challenging routing and scheduling
Equipment utilization rates are low
Material handling is slow and inefficient & is more.
More space is required
Longer processing time
Back tracking may occur.

18. Comparison of product & process layout
factors
Product layout
Process layout
1. nature
Sequence of facilities
Similar aregp2gether
2. Machines utilization
Not to full capacity
Better utilization
3. product
standardized
diversified
4. Processing time
less
more
5. Material handling
6. inventory
High WIP
Low WIP
7. breakdown
Can’t tolerate
Can tolerate
8. Production centre
simple
complex
9.flexibilty
low
high
10. floor space
Requires less
11. investment

19. Stationary layout-
Layout in which the product or project remains stationary, and workers, materials, and equipment are moved as needed. E.g. construction of DAMS.
The product, because of its size and/or weight, remains in one location and processes are brought to it.

20. Example of fixed layout20

21. Cellular Layout Process (Functional) Layout Group (Cellular) Layout
A cluster or cell T M SG CG D T CG SG M D
Similar resources placed together
Resources to produce similar products placed together

22. Effective cellular manufacturing must have groups of identified items with similar processing characteristics. This strategy for product and process design is known as group technology and involves identifying items with similarities in either design characteristics or manufacturing characteristics, and grouping them into part families. 22

23. Number of Different Products
P-Q Analysis
Quantity
Product
Layouts
Fixed
Position
Layouts
Mixed Layouts
Process Layouts
Number of Different Products

24. The three basic types of layout are product, process, and fixed-position. Product layouts are most conducive to repetitive processing Process layouts are used for intermittent processing Fixed-position layouts are used when projects require layouts 24

25. Systematic Layout Planning (SLP)
Process oriented plant layout
Analysis
Qualitative criteria: Closeness priorities.
Technique: Systematic Layout Planning (SLP)
Closeness priorities have a letter code:

26. Example
Assign the six departments in figure to a 2 × 3 set of locations using the heuristic rule: Assign critical departments first, because they are the most important. 26 26

27. Symptoms that allow us to detect the need for a re-layout:
Congestion and bad utilization of space.
Excessive stock in process at the facility.
Long distances in the work flow process.
Simultaneous bottle necks and workstations with idle time.
Qualified workers carrying out too many simple operations.
Labor anxiety and discomfort. Accidents at the facility.
Difficulty in controlling operations and personnel.

28. Factors affecting plant layout
Nature of product- e.g. some products need air-conditioned plants.
Size of output-
For bulk-product/line layout
For small-functional layout
Nature of manufacturing system-
For intermittent-functional layout
For continuous-product/line layout
Localization of plant- e.g. there will be different transportation arrangement if site is located near railway line.
Machines or equipment- e.g. heavy machines need stationary layout
Climatic conditions, need of light, temperature also affect design of layout.

29. Computer Applications in Product layout Design:
CRAFT- Computerized Relative Allocation of Facilities Technique
ALDEP-Automated Layout Design Program
CORELAP-Computerized Relationship Layout Planning
SLP-Systematic Layout Planning

30. Plant Layout for a Service Business
Most of the concepts and techniques explained here can be applied to any plant layout, including services.
Examples: Line Balancing for Restaurant self-services; Process oriented layout for Hospitals.
Service Businesses have a more direct customer focus:
Sometimes, the customer is required at the facility for the company to be able to perform the service.
Frequently, the layout is focused on the customer satisfaction than on the operation itself.
Some of the objectives include comfortability during the performance of the service, as well as making attractive those areas in direct contact with the customer.

31. Cafetería Cafetería Three Retail Layout Patterns Grid
Rectangular with parallel aisles; formal; controls traffic flow; uses selling space efficiently.
Free-Form
Free-flowing; informal; creates "friendly" environment; flexible.
Boutique
Divides store into a series of individual shopping areas, each with its own theme; unique shopping environment.
Cafetería

32. Local considerations in service and Retail outlet.
Layouts can also be influenced by external factors such as the location of entrances, loading docks, elevators, windows, and areas of reinforced flooring. Also important are noise levels, safety, and the size and locations of restrooms. 32

33. Assembly line balancing
The sequence of machines & equipments arranged to produce the desired product is called assembly lines.
The amount produced by machine depends on
No. of operations performed on machine
Time required for each operation
There can be a situation that different machines may produce varying amount of product during same period. This property is known as unbalanced assembly line

34. 34

35. Example of ALB Clearly, assembly line is unbalanced.
machine
Operation no.
Time required to perform operation/unit
Units processed by machine in 1 hr. A 1
15 min.
60/15=4 units B 2
20 min.
60/20=3 units C 3
30 min.
60/30=2 units
Clearly, assembly line is unbalanced.
Alternatively if in system we arrange 3 machines of type A, 4 of B & 6 of C, then output/hr. will
machine
No. of machines
Operation no.
Time required to perform operation/unit
Units processed by machine in 1 hr. A 3 1
15 min.
3*60/15=12 units B 4 2
20 min.
4*60/20=12 units C 6
30 min.
6*60/30=12 units

36. Such type of arrangement is called balanced assembly/production line.
To balance the production line by increasing the machines may not be in the interest of organization due to increased capital investment.
So another method is to increase the working hours for machines. E.g.
machine
Operation no.
Time required to perform operation/unit
Time required for each machine shift
Units processed by machine in 1 hr. A 1
15 min.
1 hr.
60/15=4 units B 2
20 min.
1hr. 20 min.
80/20=4 units C 3
30 min.
2 hrs
120/30=4 units

37. Line Balancing Procedure
1. Determine the cycle time and the minimum number of workstations. 2. Make assignments to workstations in order, beginning with Station 1. Tasks are assigned to workstations moving from left to right through the precedence diagram. 3. Before each assignment, use the following criteria to determine which tasks are eligible to be assigned to a workstation: a. All preceding tasks in the sequence have been assigned. b. The task time does not exceed the time remaining at the workstation. If no tasks are eligible, move on to the next workstation. 4. After each task assignment, determine the time remaining at the current workstation by subtracting the sum of times for tasks already assigned to it from the cycle time. 5. Break ties that occur using one of these rules: a. Assign the task with the longest task time. b. Assign the task with the greatest number of followers. If there is still a tie, choose one task arbitrarily. 6. Continue until all tasks have been assigned to workstations. 7. Compute appropriate measures (e.g., percent idle time, efficiency) for the set of assignments. 37

38. Plant location
Meaning-the establishment of an industry at a particular place.
It is of 2 types-
Localization /centralization-means concentration of similar type of industries at some particular place. E.g. textile in Mumbai.
Delocalization /Decentralization-means spreading of similar type of industries at different places. E.g. banking industries.

39. Factors affecting location & site decisions
Availability of raw material
Nearness to the potential market
Near to the source of operating requirements like electricity, disposal of waste, drainage facilities.
Supply of labor
Transport & communication facilities
Integration with other group of companies
Suitability of land & climate
Availability of housing, other amenities & services
Local building & planning regulations
Safety requirements
Others like low interest on loans, special grants, living standards

40. Better transportation More water Planned industrial
Advantages &disadvantages of urban, rural & sub-urban sites for a plant-
urban
rural
Sub-urban
Better transportation
More water
Planned industrial
Large labor supply
Cheaper land
Larger area
Big local market
Lower taxes
Easy finance
Few ordinances
Municipal services
Better civil attitude
Labor stability

41. Backward area & industrial policy contd.
All the districts in the country have been classified into four categories:
A. No industry districts, B. Moderately backward districts C. Least backward districts, and D. Non-backward districts
The A, B, and C categories are eligible for subsidy on investment in fixed assets in an industrial unit, as given below:
Category Percent Subsidy Maximum Limit Per unit
A Rs 25 lakh B Rs15 lakh C Rs 10 lakh D not eligible for subsidy

42. Global locations World-wide locations are called global locations.
E.g. MNC’s are setting up their branches in India & Indian companies are extending their operations in other countries like -
USA, EUROPE , CHINA.
virtual proximity – Social networking at a distance .with the advances in telecommunications technology , a firm can be in virtual proximity to its customers.

43. REASONS FOR A FOREIGN LOCATION
Reaching the Customer -One obvious reason for locating a facility abroad is that of capturing a share of the market expanding worldwide.
Other Tangible Reasons-
The host country may have/offer substantial tax advantages compared to the home country.
The costs of manufacturing and/or running operations may be substantially less in that foreign country. This may be due to
Low labor cost
Low raw material cost
Better availability of inputs
The co. may overcome the tariff (table of fixed charges) barriers by setting up a manufacturing plant in foreign country rather than exporting the items to that country.
3. Intangible reasons-

44. Customer-related reasons-
firm’s customer may feel secure that firm is more accessible.
Firm may be able to give a personal touch.
Firm may understand customer’s requirements better.
It may discover other potential customers in abroad.
Organizational learning related reasons
Firm can learn advanced technology
Firm can learn from its customers abroad
It can also learn from its competitors operating in abroad.
It may also learn from its suppliers abroad.

45. Backward area & industrial policy
In the facilities location problems, the industrial policies of the governments are very important inputs in the overall consideration. In India, the industrial development of backward areas for balanced regional development of the country has always been emphasized. This has been attempted mainly through:
1. Licensing policy (practice of leasing a legally protected property to another party )
2. Location of public sector projects
3. Investment subsidy (money granted by the State to keep down the price of commodities)
4. Concessional finance (by IDBI, IFCI , ICICI)
5. Concession on income tax import duty etc and
6. Setting up of industrial estates (property consisting of much land )

46. Methods of Evaluating location alternatives.
Known as location analysis where firstly some geographical area is selected & from that area a particular site is selected for the establishment of the plant.
Methods for the evaluation of plant location-
Involving quantitative factors-
Comparative cost chart, b. dimensional analysis.
Comparison of qualitative factors.
Factor Rating Method
Point Rating method
Break Even Analysis

47. Comparative cost chart
Is appropriate where the location problem concerns the placement of a single plant. This is based on location cost summary chart. A comparative chart of total costs involved in setting up a plant of desired size is prepared.

48. The total cost is represented by the height of column for each location. we select a location for which total cost is minimum.
The cost summary chart has advantage of clarity in presentation. but analysis is restricted to certain specified factors only.
Least cost centre analysis-
Here transportation cost associated with various location alternatives is considered.
Limitation of these techniques-
1.Choice of plant location assumed to be entirely dependent upon minimization of operational costs.
2.Operational costs are assumed to be linearly related to distance involved.

49. Dimensional analysis It involves
calculation of the relative merits or cost ratios for each of the factors,
giving each of the cost factor an appropriate weightage by means of an index to which the cost ratio is raised
& multiplying these weighted ratios in order to arrive at a figure on the relative merits of alternative sites.

50. Let Cm1,Cm2,Cm3,…..Cmz are the costs associated with site M for various cost factors. Cn1,Cn2,Cn3,…….Cnz are of site N.W1,W2,W3,…….Wz are weightage for various factors.
Merit of location M=(Cm1)W1*(Cm2)W2*…(Cmz)Wz
Merit of location N=(Cn1)W1*(Cn2)W2*…(Cnz)Wz
Relative merits of sites M & N are-
merit of M
merit of N
If this value is > 1, then select site M & vice-versa.
Advantages- it compares both subjective & objective factors & gives a quantitative figure.

51. Comparison of qualitative factors.
These are the factors to which cost values can’t be assigned. Like lack of good schools, community attitude. These can be termed as good or excellent.
Clearly location B appears to be better one.
factors
Location A
Location B
labor
adequate
excellent
relation
good
Very good
education
Good

52. Ranking & weight method
Various locations are ranked acc. To their contribution
Various factors are assigned weights acc. To their importance
Weights are then multiplied with rank assigned
Total of these products for each location is calculated
Location having max. total is then selected.