103211 - PRODUCTION MANAGEMENT

C H A P T E R – I I I

PLANT

LAYOUT & LOCATION

Dr. K

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LEARNING OUTCOMES

By the end of this chapter you will be able to understand

Layout

Factors affecting plant layout

Scope & objectives of layout

Different types of layout

Advantages of disadvantages of each layout types

Re-layout

Location & issues related to location

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WHAT IS FACILITY LAYOUT?

The layout facility is the physical location of the various

departments/units of the facility within the premises of the facility.

The departments may be located based on the considerations such as:

Less walking distance

Logical sequence of the processing requirements of the product

Emergency services, etc

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DEFINITION

A facility layout is an arrangement of everything needed for

production of goods or delivery of services. A facility is an

entity that facilitates the performance of any job. It may be a

machine tool, a work centre, a manufacturing cell, a machine

shop, a department, a warehouse, etc. (Heragu, 1997).

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TO MAKE A DECISION ABOUT LAYOUT PLANNING,

4 DIFFERENT QUESTIONS MUST HAVE AN ANSWER:

Which centers do we have to consider?

How much space and capacity is required for each center?

If there is not enough space, productivity may be reduced.

Too much space is expensive and may also reduce productivity.

How must the space be configured at each center?

Space quantity, shape and the elements of the work center are related to

each other.

Where should each center be located at within the facility?

The allocation of the different centers may affect productivity.

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FACTORS AFFECTING PLANT LAYOUT

The factors affecting plant layout can be grouped into 8 categories:

Materials

Machinery

Labor

Material Handling

Waiting Time

Auxiliary Services

The building

Future Changes

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SCOPE OF FACILITY LAYOUT

Related to material

Less material handling and minimum transportation cost

Less waiting time for in-process inventory .

Related to work place

Safe working conditions from the point of ventilation, lighting, etc.

Minimum movement of workers

Least chances of accidents, fire, etc.

Proper space for machines, worker, tools, etc.

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OBJECTIVES

Simpler plant maintenance.

Increased productivity, better product quality, and

reduced cost.

Least set-up cost and minimal change-over.

Objective related to flexibility.

Scope for future expansion.

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DIFFERENT TYPES OF LAYOUT

1.Process Layout

2.Product Layout

3.Grouping Technology Layout

4.Fixed Position Layout

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1.PROCESS LAYOUT

• suitable when product having standard features is to be produced in

large volumes.

• the specialized machines and equipments are arranged one after

another in the order of sequence required in the production process.

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CAR

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Advantages of Process Layout: • Greater Flexibility

• Better and more efficient supervision possible through

specialization

• Capacity of different product line can be expanded easily.

• Better utilization of men and machine.

Disadvantages of Process Layout : •More floor space

•More work in progress

•More distance travelled by the product.

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2.PRODUCT LAYOUT

It is appropriate for producing one standardized product,

usually in large volume. It is also called as flow-shop

layout or straight line layouts. The machines are arranged

according to the progressive steps by which the product is

made.

Example: chemical, paper, rubber, refineries, cement

industry, quarry.

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13 Dr. Karthik Mohandoss

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Advantages:

Mechanization of materials is possible and material handling cost

can be reduced.

It requires less floor area.

It facilitates better production control.

Production bottlenecks are avoided.

Disadvantages:

Expansion of product line is difficult.

There is difficulty is supervising.

Breakdown of equipment disrupts the production.

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3.GROUPING TECHNOLOGY LAYOUT

Grouping technology layout of cellular manufacturing

layout is made for a single part family i.e parts with

common characteristics. In this layout dissimilar

machines are grouped into cells and each cell functions

like product layout.

Advantage and Disadvantages:

It reduces material handling cost and simplifies machine

changeovers. It reduces in-process inventory and

automate the production but reduces the flexibility.

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17 Dr. Karthik Mohandoss

4.FIXED POSITION LAYOUT

When due to size, shape and other characteristics

constraints, the products cannot be moved, the machine and

operators move around the product.

Example: construction of a building, assemble of an

aircraft or ship.

Advantage:

Less investment is required in this layout and less transport

cost as bulky machines are not moved.

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RE - LAYOUT

The reasons for a Re-layout are based on 3 types of changes:

Changes in production volumes.

Changes in processes and technology.

Changes in the product.

The frequency of the Re-layout will depend on the

requirements of the process.

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SYMPTOMS THAT ALLOW US TO DETECT THE

NEED FOR A RE-LAYOUT:

Congestion and bad utilization of space.

Excessive stock in process.

Long distances in the work flow process.

Simultaneous bottleneck 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.

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LOCATION

Where should a plant or service facility be located? This is a

top question on the strategic agendas of contemporary

manufacturing and service firms, particularly in this age of

global markets and global production. Dramatic changes in

international trade agreements have made the world truly a

“global factory,” allowing companies greater flexibility in

their location choices.

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ISSUES IN FACILITY LOCATION

Proximity to Customers

Business Climate

Total Costs

Infrastructure

Quality of Labour

Suppliers

Other Facilities

Free Trade Zones

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Thank You

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