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Plant layout Meaning : Plant means—it is place where the goods are manufactured. Lay out means– Physical arrangements of things or Machineries. Plant layout.

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Presentation on theme: "Plant layout Meaning : Plant means—it is place where the goods are manufactured. Lay out means– Physical arrangements of things or Machineries. Plant layout."— Presentation transcript:

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 Line
1 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 layout
20

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.


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