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FACILITY LAYOUT

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CONTENTS

Concepts1) Introduction2)Factors affecting Layout3)Scope of Facility Layout4)Types of Facility Layout

Scope of the TopicCases References

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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 distanceLogical sequence of the processing requirements of the productEmergency services, etc

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Factors affecting Layout

oMaterialoProductoMachineryoLabouroLocationoManagerial PoliciesoType of Industry

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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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Performance related 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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Types of Layouts

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.

CAR 1

CAR2

CAR3

Conveyer

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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:•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.

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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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Example of Product layout

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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:

3) Grouping Technology Layout

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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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.

4) Fixed Position Layout

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Example of Fixed Position Layout

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CASE STUDY 1

Henry Ford- The Inventor of the Assembly Line

In 1973, Henry Ford employed up to 1,000 people simply to move material in his automobile factory, an occupation that was to be virtually eliminated In a new building with an improved layout and with mechanized and gravity-based material-handling systems.

Ford discovered that great economies could be made by moving stocks to the assembly staff rather than having them leave their workplace to get materials. He also noted that costs could be greatly reduced by providing that workers with all the necessary tooling and thereby eliminating tool rooms. The great emphasis placed on efficiency in transporting materials in ford factories seems to have been the motivating factor that led to the development of an assemble line.

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Ford engineers conserved space by using very detailed floor plans and positioned equipment such that when a machine comes into the factory, it is placed so that the material coming from an operation will be as exactly as possible in position for succeeding one.

Ford himself said, “they (machines) are scientifically arranged, not only in the sequence of operations, but to give every man and every machine every square inch of space that he/it requires and… not… more”. Ford was extremely conscious that space in his factory was valuable and sought to exploit it as completely as possible without giving any more to work in progress than was necessary. Ford emphasizes ‘dividing and subdividing operations, keeping the work in motion- those are the keynotes of production’, in a perspective that leaves no room for excessive or idle inventories (Wilson 1995).

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CASE STUDY 2

Maruti Udyog- challenge 50

Shinichi Takeuchi, former head of Suzuki’s Kosai facility in Japan, was sent to one of Suzuki’s most profitable subsidiaries, Maruti Udyog, as director(Production) in October 2001.

Thus trying to fill in the wide performance gap between Maruti and Suzuki’s Kosai facility, which produces 600,000 cars in a year. The low production cost will give Maruti not just more profits, but an advantage over competition.At Maruti’s Gurgaon plant, Takeuchi has pulled from under the carpet all kinds of Muda(Japanese for wastage) starting with the assemble line. At some of the workstations of the assemble line, the number of steps a worker has to walk to fetch parts and tools from their racks has been brought down to 5 from the earlier 10-15.With almost 200 workers manning one assemble line, the saving have led not just to increase in productivity, but also safety.

In may 2002, Takeuchi launched the challenge 50 programme at Maruti. Challenge 50 aims at increasing the productivity at Maruti’s Gurgaon facility by 50% and reducing the costs by 30%.

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Another problem successfully handled by Takeuchi at the assemble line is the proper installation of rubber beadings for doors by the line operators. Earlier staggering 14% of the cars would fail the shower test(to check the leakage) as a result of the improper installation of these beadings. Today, the figure stands at less than 1%. Takeuchi is still not happy because that means nine cars fail the test in every shift. There is a specific sequence to be followed for making the fitment. If that is not done, it may result in warranty claims at the customer’s end. Even if it is detected in the shower test, costly rework is required. The car needs to be taken off the assembly line to a rework station, where extra man-hours have to be spent fixing the problem. Takeuchi ensured that the workers follow the installation sequence exactly, so that there is no scope for rework.

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Maruti udyog ltd. is raising quality and efficiency levels across the board in order to achieve its benchmark of Suzuki’s facility at Kosai, Japan, through the challenge 50 programme.

Compared to the 100% benchmark of Kosai, Maruti presently has comparative assemble hours per vehicle of 78.12% and a direct pass rate of 80.64%.Takeuchi has introduced a quicker set-up technique called the single-minute exchange of dies. Simultaneously to tackle the non-availability of components, about 160 vendors who do not meet strict parameters of quality, cost, productivity, and delivery will be dropped.To increase the speed and quality, Maruti has 120 robots now compared to only half a dozen of robots five years ago. It is striving to reach its benchmark on every parameter by the year 2004-2005.

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REFERENCES

http://en.wikipedia.org/wiki/Plant_layout_study

http://pino.univalle.edu.co/~juanp77/ARTICULOS%20PLANTAS/ARTICULOS/GRUPO%2009%20-MONTA%D1O%20NEXT%20GENERATION%20FACTORY%20LAYOUTS.pdf

http://www.cbpa.ewu.edu/~pnemetzmills/OMch5/OMFac.html