3 plant layout & mh

8/13/2019 3 Plant Layout & MH

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PL NT L YOUT


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INTRODUCTION Location particular place or position

Facility location - place for facility

Facility Layout

A facility layout is an arrangement of everything needed for

production of goods or delivery of services. Afacility 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).

A layout needs a location


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INTRODUCTION

Decisions for selection of locations are strategic, long term, and non-repetitive

Improper choice of a location can lead to operational disadvantages

Location decisions are based on Technology

Capacity

Financial position

Man power Internal Factors

Social Structure

Economy

Political External Factor


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INTRODUCTION

Determining the optimal location for one or more new facilities to

serve a set of customers.

Manufacturing facility

Storage facility

Software industry

Services

Location planning may also involve deciding the location of each

specific piece of machinery and equipment in a particular area of a

facility (Tompkins, J. A., et al.,Facility Planning, Second Edition,John Wiley & Sons, NY, 1996 )


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INTRODUCTION

When does a facility location (plant location) decision arise?

When a new facility is to be located

A poor site restricts the facility or plant operations and subsequent

expansions, thereby necessitating setting up the facility at a new site.

Growing volume of a business makes it advisable to establish

additional facilities in new territories.

New economic, social, legal or political factors could suggest a

change of the location of the existing plant.


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INTRODUCTION

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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PLANT LOCATION

Factors affecting the facility location study Location studies are normally made in two phases:

General territory selection phase

Exact site selection phase

Factors effecting the location (territory) of the plant:

Proximity to source of supply: reduce transportation costs of

perishable or bulky raw materials

Proximity to customers: e.g.: high population areas


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PLANT LOCATIONFactors effecting the location (territory) of the plant:

Proximity to labor: local wage rates, attitude toward unions,

availability of special skills (e.g.: Haryana, WB, Karnataka, Gujarat)

Community considerations: local communitys attitude toward the

facility (e.g.: prisons, utility plants, etc.)

Site considerations: local zoning & taxes, access to utilities, etc.

Quality-of-life issues: Climate, cultural attractions, commuting time,

etc.

Other considerations: Options for future expansion, localcompetition, etc.


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PLANT LOCATION - STEPSSteps of Location Selection

1. Deciding on Domestic / International location2. Selection of the region

3. Selection of locality / community

4. Selection of the exact site

Deciding on Domestic / International location Political stability, export and import quotas, currency exchange

rate, cultural and economic peculiarities, natural and physicalconditions

Selection of Region:

Availability of raw materials Connectivity

Infrastructure (power, transport)

Suitability of climate

Government policy (competition between states)


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PLANT LOCATION - STEPS Selection of community:

Availability of Labor

Civic amenities for workers

Existence of complementary and competing industries

Finance and research facilities

Availability of water/fire-fighting facility

Local taxes and restrictions

Personal factors

Selection of sites: Soil, size and topography

Disposal of wastes

Rural, city, suburban sites


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PLANT LOCATION - STEPS Rural site

Cheaper land; Less local taxes; Less wages to labor; Less

trouble from labor

Less facilities; Less skilled workers; Less civic amenities, Poor

transport

City sites

Adequate transportation; Civic facilities; Close to technical and

commercial institutions; Connectivity; Brand value

Expensive land and labor, frequent labor unrest, less space,

government restrictions

Suburban Site - compromise between the city and village site


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PLANT LOCATION - PROCEDUREEvaluation of location alternatives:

Analysis of location alternative should consider both objective factors

such as availability of proper transport facilities, availability of

suitable labor, tax consideration and subjective factors like civic

amenities, weather conditions, etc. Certain methodology is adopted by professionals to estimate the

appropriate locations of the plant:

Factor rating methods

Location Break-even analysis

Qualitative Factor Analysis Method


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PLANT LOCATION - PROCEDURE Factor rating methods

Managers use weightings to make the decisions process

Location Break-even analysis

Location to have comparison at a glance (fixed costs, variable

costs, outputs are calculated)

Qualitative Factor Analysis Method

Consider intangible factors in additions to costs factors. Intangible

factors which cannot be measured quantitatively can be expressed

as significant, good, and bad. The total contributions of intangibles

for each location are evaluated.


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PLANT LOCATION - PROCEDUREFactor rating method:

1. Selection of factors - (e.g., raw material, market, cost, community, and

transportation

2. First preference - Provide the weights to each factor (e.g. 10 points to

market and raw material, 8 points to land, 7 points to community, and 6

points to transportation)3. Rate each alternative for each factor on a scale of 1-10

4. Tabulate all the above information

5. Repeat the same procedure (step 3 and 4) for other factors

6.

Multiply the weights of each factor with the rating of each alternativeand record on the lower half of the rectangle under each alternative

7. Add the score of each alternative and record in front of Total

8. The best alternative is that alternative which has the maximum score. In

case of a Tie, then those alternatives should be selected and a separate

evaluation should be made for those alternatives only.


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PLANT LOCATION - PROCEDURE

Factor rating method:

Factor Weights LocationA LocationB Location C

Raw material 10 8 80 7 70 8 80

Market 10 9 90 8 80 7 70

Land 8 7 56 9 72 8 64

Community 7 9 63 8 56 9 63

Transportation 6 9 54 9 54 8 48

Total 343 332 325

Best alternative is location

Scale of 1-1010 Maximum Priority

1 Minimum Priority


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PLANT LOCATION - PROCEDURE Location Break-even analysis


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PLANT LOCATION - PROCEDURE

Transportation method:

A

B

P

Q

R

S

T

Retailers

Plant Locations Distributers

P Q R S T Capacity

X Rs.30 Rs.25 Rs.35 Rs.34 Rs.41 1000

Y Rs.32 Rs.28 Rs.32 Rs.42 Rs.40 1000

Demand 500 700 300 400 600 2000/2500


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QUESTION BOWL

Criteria that influences manufacturing plant and warehouse

location planning can include which of the following?

a. Proximity to customers

b. Business climate

c. Infrastructure

d. Quality of labor

e. All of the above

Answer: e. All of the above


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QUESTION BOWL

Criteria that influences manufacturing plant and warehouse

location planning can include which of the following?

a. Political risk

b. Government barriers

c. Environmental regulation

d. All of the above

e. None of the above

Answer: d. All of the above


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QUESTION BOWL

The location decision for service facilities is closely tied to

which of the following?

a. Market selection decision

b. Material costs

c. Nearness to distributors

d. Nearness to high-skilled labor

e. None of the above

Answer: a. Market selection decision


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Facility

Planning

Structural Design

Facility Location Facility Design

Material Handling

Layout


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PLANT LAYOUT

Plant layout planning - decisions regarding the physical allocation ofthe economic activity centers in a facility

An economic activity center is any entity occupying space

Effective work flow at the facility (productivity of men and

machinery)

A plant layout study is an engineering study used to analyze different

physical configurations for an manufacturing plant

Important to take into account the business, strategic and tactical

objectives, e.g.: space/cost per m2 in malls; accessibility/privacy in

offices


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PLANT LAYOUT

!!!!

1

2,7,14

3,9,16,22

11,24

5,12,18,21

7,13,19

6,15

4,10,17

8

20,23


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PLANT LAYOUTBad layout:

Congestion and poor 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 do ---------- too many simple operations

Labor anxiety and discomfort

Accidents at the facility

Difficulty in controlling operations and personnel


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PLANT LAYOUT

The plant layout process starts at an aggregate level, taking into

account the different functions (original configuration may be

changed through a feedback process).

Layouts are designed for the initial conditions of the business

Re-layout is necessary to adapt for internal and external changes

Phase IVPhase IIIPhase IIPhase I

TIME

VOL

UME

orVARIETY


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PLANT LAYOUT

Key questions for decision about layout planning

Which facilities to consider?

How much space and capacity is required for each facility?

Space quantity, shape and the elements of the facility

Less space, productivity may be reduced

More space (if expensive), reduce productivity

Where should each element be located within the facility?

The allocation of the different element may affect productivity


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PLANT LAYOUT- OBJECTIVES

High productivity and safe for the personnel

Minimum movement of men, material and resources.

Sense of Unity - the feeling of being a unit pursuing the same

objective.

Safety - in the movement of materials and personnel work flow.

Flexibility - in designing the plant layout taking into account the

changes over short and medium terms in the production process

and manufacturing volumes.


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PLANT LAYOUT- OBJECTIVESHOW?

Congestion reduction Elimination of unnecessary occupied areas

Reduction of administrative and indirect work

Improvement on control and supervision

Flexibility Productive workforce, equipment and services

Minimization of material handling activities and WIP

Better quality control

Better safety for workers

High moral and satisfaction of employees.

Reduction on delays and manufacturing time

All these factors will not be reached simultaneously

Best solution will be a balance


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PLANT LAYOUT-FACTORS Materials

Machinery

Men

Material Handling

Waiting Time

Auxiliary Services

Building

Future Changes

The 3 M => Money


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PLANT LAYOUT-FACTORS Materials

Layout depends on product

Product depends on materials

Materials define

Manufacturing methods

Storage

Material handling equipment's

Variety

Quantity

Size, shape, volume, weight, and the physical-chemical

characteristics


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PLANT LAYOUT-FACTORS Machinery

Layout depends on process

Process defines

Type of machinery (quantity)

Type of tools (quantity)

Type of equipment (quantity)

Route sheets

Engagement of machinery

Requirements for space, shape, height, weight

Requirements for type of workers (physical attributes)

Requirements for risk management

Requirements of auxiliary services, etc.


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PLANT LAYOUT-FACTORS Men (Labor)

Layout depends on skill of labor

Direct labor, supervision and auxiliary services

Qualifications, flexibility, number of workers

Requirement for employees safety and efficiency (illumination,ventilation, temperature, noise, etc.)

Material Handling

No value but waste

Minimize material handling as well as combining with other

operations when possible, eliminating unnecessary and costly

movements


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PLANT LAYOUT-FACTORS Waiting time - Stock

Continuous material flow through the facility

Lower waiting time cost

Inventory management (requires space) - provides safety to protectproduction, improving customer service etc.

Auxiliary Services Supports the main production activities at the plant:

Safety: Accessibility paths, fire protection, lavatories, training,etc.

Material: Quality control (incoming and outgoing)

Equipment: Maintenance (electrical, drainage, water lines) Requires around 30% of the space at a facility.

Space for auxiliary services is non-productive!!!

Minimize indirect cost - efficient services


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PLANT LAYOUT-FACTORS The building

Biggest Constraint for future changes

Capacity enhancement

Variety in production

Change in process

Future changes

Plant layout requires flexibility.

Long term layout (may be expensive for short run)

Initial layout kept free from fixed characteristics

Possible future extensions must be taken into account, as well

as the feasibility of production during re-layout


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PLANT LAYOUT- TYPES

Var-Vol Analysis


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PLANT LAYOUT- TYPES

The production process normally determines the type of plant layout to

be applied to the facility:

Fixed position plant layout (Fixed product layout, Static layout)

Product stays and resources move to it.

Product oriented plant layout (Product layout, Flow shop)

Machinery and Materials are placed following the product path.

Process oriented plant layout (FunctionalSIMILAR FUNCTIONS).

Machinery is placed according to what they do and materials go

to them.

Cell Layout (Combined Layout, Group Technology Layout)

Hybrid Layout that tries to take advantage of different layouts

types.


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FIXED PRODUCT LAYOUT Men, machines, tools move towards product (heavy & stationary),

e.g. Locomotives, Ship building, Satellites, Aircraft, Construction.Advantage:

Men and machines can be used for a wide variety of operations

Investment on layout is small

Disadvantages: Costly and high precisions tooling involved

Skilled labor is required

Storage WarehousePRODUCT

Lathe Press Grind

Paint Assembly


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PRODUCT LAYOUT Serialized manufacturing - arrangement of machinery in one line

based on sequence of operations Raw materials enter at one side and get processed along the line, and

the finished product leaves the system at the other end

Standardized products on a mass scale such as chemical, paper, sugar,

rubber, refineries and cement industries

Storage Warehouse

Lathe Press

Paint Assembly

Grind Drill

Press Grind

Grind Drill

Lathe Drill Grind Drill


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PRODUCT LAYOUTAdvantages:

Reduced material handling activities

Work in process almost eliminated

Minimum manufacturing time

Simplification of the production planning and control systems

Tasks simplification

Disadvantages:

No flexibility in the production process

Low flexibility in the manufacturing times

High capital investment

Every workstation is critical to the process - The lack of personnel

or shut down of a machine stops the whole process.


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PROCESS LAYOUT

Process layouts are found primarily in job shops, or firms that produce

customized, low-volume products that may require different

processing requirements and sequences of operations (wide variation

in products -job order production and non-repetitive kind of

manufacturing and maintenance activities)

Process layouts are facility configurations in which operations of a

similar nature or function are grouped together, e.g. machine shop

with separate departments (milling, grinding, drilling, hydraulic

presses, and lathes)

Provides flexibility needed to handle a variety of routes and process

requirements

Services that utilize process layouts include hospitals, banks, auto

repair, libraries, and universities


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PROCESS LAYOUTProcess (Functional) Layout

Similar resources placed together

T T T CG CG

T T T SG SG

M M D D D

M M D D D


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PROCESS LAYOUT

Process (Functional) Layout

Similar resources placed together

L

L

L

L

L

L

L

L

L

LM

M

M

M

D

D

D

D

D

D

D

D

G

G

G

G

G

G

A A AReceiving andShipping Assembly

Painting Department

Lathe Department MillingDepartment Drilling Department

Grinding

Department

P

P


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PROCESS LAYOUT Process layout is useful when the production process is organized in

batches

Personnel and equipment to perform the same function are allocated

in the same area

The variations in the production volumes from one period to the next

one (short periods of time) may lead to modifications in themanufactured quantities as well as the types of products to be

produced.

Advantages:

Best use of specialization of machines & employees

Flexible variety of products

General purpose machines less costly


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PROCESS LAYOUTAdvantages:

Ability to follow diverse paths Less vulnerable to shutdowns

Machine breakdown less of problem

Suitable for incentive pay

Disadvantages:

General purpose machines are slow

Work routing, scheduling difficult

Material handling costs high

Material moves slowly

Partially finished inventory high large storage space

Communication difficult

Some limit to size of parts


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CELL LAYOUT Work cells

Group of equipment and workers that perform a sequence of

operations over multiple units of an item or family of items

Combine elements of both product & process layouts

Product oriented layout: Efficiency

Process oriented layout: Flexibility

Most popular hybrid layouts uses Group Technology (GT) &

a cellular layout

Group Technology

Grouping outputs with the same characteristics to families, and

assigning groups of machines and workers for the production of

each family


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CELL LAYOUTGroup (Cellular) Layout

Resources to produce similar

products placed together

T T T

M

M M T

M

SG CG CG

SG

D DD

D

Cluster

or cell

Cluster

or cell


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CELL LAYOUTSteps

Select product families.

Determine work cells.

Detail the work cells internal organization or layout.

Regarding product grouping to be produced at the same work cell, we

need to determine which is the condition that allows such grouping.

Once product families are determined, create a work cell for each

family.


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CELL LAYOUT Sometimes, outputs will be final products or services; some other

times, they will need to integrate to a final product.

In this case, the work cells would need to be located close to the

main production line, to facilitate the assembly of the component at

the moment and place required.


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PLANT LAYOUT - STEPS

1. Define (or redefine) the objective of the facility:Specify quantitatively the products to be produced or service to be

provided.

2. Specify the primary and support activities to be performed inaccomplishing the objective:

Requirements for primary activities include operations,equipment, personnel, and material flows.

3. Determine the interrelationships among all activities:

Both qualitative and quantitative relationships should be

defined.4. Determine the space requirements for all activities:

These are determined considering the equipment, materials, andpersonnel requirements.


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5. Generate alternative facility plans:

Including alternative facility locations and alternative designs

for the facility.

6. Evaluate alternative facility plans:

Determine the important factors. For each candidate plan,

evaluate if and how those factors will affect the facility and its

operations.

7. Select a facility plan:

Cost may not be the only major consideration.

Use the information in step 6 to determine a plan


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8. Implement the facility plan:

Considerable amount of planning must precede the construction of afacility or the layout of an area.

9. Maintain and adapt the facility plan:

The facility plan must be modified as new requirements are placed,e.g., new energy saving measures, changes in product design may

require different flow pattern or handling equipment, etc.

10. Redefine the objective of the facility:

Similar to step 1.

Changes in product design and/or quantities may require changes into

the layout plan.


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PLANT BUILDING

Checklist - - - - - - - - Factors in designing a Factory:

Adaptability

Expandability

Product and equipment

Employees facilities and services areas

Material handling

Lighting, ventilation and air-conditioning

Fire protection Security and services and maintenance


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PLANT BUILDINGBuilding Types:

Single-storey buildings

High-bay and monitor types

Multi-storey buildings

Special types


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PLANT BUILDINGSingle storey building: sub-urban areas

Greater flexibility in layout and production routing

Lesser space wastage for auxiliary units (elevators, service facilities)

Lesser vibrations

Economical (const., transport, maintenance)

Easy expansion

Lesser safety requirements (fire etc.)

Better supervisory control

High cost of land, particularly in the city

High cost of heating, ventilating etc

High cost of transportation for moving labor and raw material from/to

factory


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PLANT BUILDING

High bay and monitor types:

Single storey structure with roof often more than 10 meters

Maximum overhead space (crane, overhead facilities, natural

ventilation and lighting)


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PLANT BUILDING

Multi-storey building:

Best for services (hotels, schools, colleges, shopping complexes)

Not preferred for manufacturing plants

Preferred only for locations with excessive land cost

Preferred for light manufacturing industry

Maximum operating floor space per sq. ft. of land Lower cost of heating and ventilation

Advantage of gravity flow (reduces material handling)

Complicated materials handling

High space wastage for auxiliary units (elevators, service facilities)

Less floor load-bearing capacity Heavy construction cost

Less flexibility in terms of layout

Poor supervision and control


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PLANT BUILDING

Special building

Special purpose buildings

Inflexible

High Obsolescence

Aircraft industry wide spans (300 400 ft)

Saw mills no side walls


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MATERIAL HANDLING

Material handling is an activity that uses the right method to provide

the right amount of the right material at the right place, at the right

time, in the right sequence, in the right position and at the right cost

Material Handling a essential waste (20-70% of product cost)

Material handling work {product of material handling flow (volume,

weight or number per unit of time) and distance moved} should be

minimized without sacrificing productivity or the level of service

required of the operation.


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Material Handling

The loading, moving, and unloading of materials The hundreds of different ways of handling materials are

generally classified according to the type of equipment

used

Conveyor Cranes, elevators, and hoists

Industrial vehicles

Motor vehicles

Railroad car

Marine carriers

Aircraft

Containers


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Material Handling


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Materials Handling machines can be grouped into broadcategories

1. Bulk Handling Machines

2. Elevating Machines

3. Hoisting Machine

4. Monorail

Material Handling


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Bulk Handling Machines

Material Handling


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Elevating Machines

Material Handling


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Hoisting Machines

Material Handling


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Monorail

Monorails operate over fixed paths rather

than over limited areas

Material Handling


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MATERIAL HANDLING - PRINCIPLES

1. Planning (prescribed course of action that is defined in advance of

implementation)

Defines

What to move (material)

When and Where (moves)

How and Who (method)

Rigorous analysis of system relationshipsprior to preliminary

planning in order to identify existing methods, problems, constraints,

and to establish future requirements and goals.

Establishment of a plan to include basic requirements, options, and

the considerations of contingencies for all material handling and

storage activities


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2. Standardization (less variety and customization in equipment)

Standardize handling methods and equipment

Standardization applies to sizes of containers and other load forming

components as well as operating procedures and equipment.

Material handling methods, equipment, controls and software should

be standardized within the limits of achieving overall performance

objectives and without sacrificing needed flexibility and throughput.


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3. Work

Work should be minimized without sacrificing productivity or

the level of service required

Simplifying processes by reducing, combining, shortening or

eliminating unnecessary moves will reduce work.

Consider each pickup and set-down (or placing material in and out),

as distinct moves

Operation sequences and equipment layouts should be prepared to

minimize work

Gravity should be used to move materials

The shortest distance between two points is a straight line.


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4. Ergonomics (study of human factor)

Human capabilities and limitations must be recognized and

respected in the design of material handling tasks and equipment to

ensure safe and effective operations.

Equipment should be selected that eliminates repetitive and strenuous

manual labor.

The material handling workplace and the equipment employed to assist

in that work must be designed so they are safe for people.


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MATERIAL HANDLING - PRINCIPLES5. Unit Load

Handle product in as large a unit load as practical (less effort).

Load size and composition may change as material and product

moves through stages of manufacturing and the resulting

distribution channels.

Large unit loads are common both pre and post manufacturing in theform of raw materials and finished goods.

Smaller unit loads (less in-process inventory) are consistent with

manufacturing strategies that embrace operating objectives such as

flexibility, continuous flow and just-in-time delivery.

Unit loads shall be appropriately sized and configured in a waywhich achieves the material flow and inventory objectives at each

stage in the supply chain.


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6. Space Utilization

Make effective utilization of all cubic space (Space is 3D)

In work areas, cluttered and unorganized spaces and blocked aisles

should be eliminated.

In storage areas, the objective of maximizing storage density must be

balanced against accessibility and selectivity.

When transporting loads within a facility the use of overhead space

should be considered as an option.


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7. Systems (Collection of interacting and/or interdependent entities)

Coordination of operations (receiving, inspection, storage,

production, assembly, packaging, warehousing, shipping by

integration of handling and storage activities.

It should encompass the entire supply chain (suppliers,manufacturers, distributors and customers).

Minimum Inventory levels at all stages of production and

distribution while respecting considerations of process

variability and customer service. Information flow and physical material flow should be integrated

and treated as concurrent activities.

Customer requirements and expectations regarding quantity,

quality, and on-time delivery should be met without exception.


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8. Automation (Application of electro-mechanical devices, electronics and computer-

based systems to operate and control production and service activities)

Mechanize the handling process to increase efficiency and economy

Linking of multiple mechanical operations to create a system that can

be controlled by programmed instructions. Improve operational efficiency, improve consistency and predictability,

decrease operating costs and to eliminate repetitive or potentially unsafe

manual labor.

Computerized material handling systems should be considered effectiveintegration of material flow and information management.


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9. Environment or Ecology (save natural resources and to predict and

eliminate the environmentally negative effects of process)

Environmental and Energy

Packing material should be reusable/bio-degradable. Systems design should accommodate the handling of empty containers

and other by-products of material handling.

Hazardous materials need special attention with regard to spill

protection, combustibility and other risks.

Energy consumption of material handling equipments


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10. Life Cycle Cost (cash flows that will occur between initial investment

and the time when equipment is totally replaced)

Life cycle costs include capital investment, installation, training,

testing and acceptance, operating (labor, utilities, etc.), maintenance

and repair, reuse value, and ultimate disposal.

Preventive and predictive maintenance plan should be prepared for

the equipment

A long-term replacement plan for the equipment when it may becomes

obsolete should be prepared.


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In a Nut Shell

Eliminate unnecessary handling

Minimize manual handling & use mechanical handling equipment

where possible

Use the right equipment for handling so as to avoid damage & to

reduce cost

Handle materials in the largest convenient unit load by the quickest

means over the shortest route

Make full use of the equipment


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3 plant layout & mh

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