“Plant Layout to Start a New Bank Branch”

Facilities layout (plant layout)

Introduction:

The term plant layout is used in broad sense to include factory layout and machine layout. A

plant layout refers to the arrangement of machinery, equipments and other industrial facilities –

such as receiving and shipping departments, tool rooms, maintenance rooms, employee amenities

etc. for the purpose of achieving the quickest and smoothest production of the lest cost.

Meaning:

Plant layout may be defined as physical arrangements of industrial facilities. This arrangement

includes the space needed for material movements, storage, indirect labour and all other

supporting activities or services as well as operating equipment and personnel. Plant layout

basically:

o Placing the right equipment.

o Coupled with the right method.

o In the right place.

o To permit the processing of a product unit in the most effective manner, through the shortest

possible distance, and in the shortest possible time.

Definition:

According to K.G.LOCKYER, “the disposition of the various parts of a plant along with all the

equipment used there in, is known as the plant layout, which should be designed to enable the

plant to function most effectively”.

Needs for plant layout:

o When a new plant is set up to manufacture newly designed products.

o When a new product line is introduced in the factory.

o When additional space is required to meet increased demand for products.

o When frequent accident occur in the factory.

o When the existing facilities are to be rearrangement due to change in methods or production.

o When the existing factory is shifted to a new area.

o When the cost reduction program is launched.

o When improvements are to be made by incorporating scientific and technological

innovations.

Factors affecting plant layout:

The following are some important factors, which influence the planning of effective layout to a

significant degree.

1. Nature of the product:

The nature of the product to be manufactured will significantly affect the layout of the

plant. Stationary layout will be most suitable for heavy products while line layout will be

best for the manufacture for the light products because small and light products can be

moved from one machine to another very easily and, therefore, more attention can be

paid to machine locations can be paid to machine locations and handling of materials.

2. Volume of production:

Volume of production and the standardization of the product also affect the type of

layout. If standardized commodities are to be manufactured on large scale, line type of

layout may be adopted.

3. Basic managerial policies and decisions:

The type of layout depends very much on the decisions and policies of the management

to be followed in producing the commodity with regard to the size of plant, kind and

quality of the product, scope for expansion to be provided for, the extent to which the

plant is  to be integrated, amount of stocks to be carried at anytime, the kind of employee

facilities to be provided etc.

4. Nature of plant location:

The size shape and topography of the site at which the plant is located will naturally 

affect the type of layout to be followed in view of the maximum utilization of the space

available .For e.g., if a site is near the railway line the arrangement of general layout for

receiving and shipping and for the best flow of production in and out the plant may be

made by the side of the railway lines .If space is narrow and the production process is

lengthy, the layout of plant may be arranged on the land surface in the following manner:

5. Type of industry process:

This is one of the most important factors influencing the choice of type of plant layout. Generally

the types of layout particularly the arrangement of machines and work centers and the location of

workmen vary according to the nature of the industry to which the plant belongs. For the

purpose of lay out, industry may be classified into two broad categories:

(i) Intermittent

(ii) Continuous.

Intermittent type of industries is those, which manufacture different component or different

machines.

Such industries may manufacture the parts, when required according to the market needs.

Examples of such industries are shipbuilding plants. In this type of industry functional layout

may be the best. The second type of industry in ‘continuous industry. in this type of industry raw

material are fed at one end and the finished goods are received at another end. A continuous

industry may either be analytical or synthetic . A analytical industry breaks up the raw material

into several parts during the course of production process or changes its form, e.g. oil and sugar

refineries. A synthetic industry on the other hand mixes the two or more materials to

manufacture  one product along with the process of production or assembles several parts to get

finished product. Cement and automobiles industries are the examples of such industry. Line

layout is more suitable in continuous process industries.

6. Types of methods of production:

Layout plans may be different according to the method of production proposed to be adopted.

Any of the following three methods may be adopted for production- (1) Job order production, (2)

batch production, and (3) mass production. Under job production goods are produced according

to the orders of the customers and therefore, specification vary from customer to customer and

the production cannot be standardized. The machines and equipment can be arranged in a

manner to suit the need of all types of customers. Batch production carries the production of

goods in batches or group at intervals. In this type of manufacturing the product is standardized

and production is made generally in anticipation of sales. In such cases functional or process

layout may be adopted. In case of mass production of standardized goods, line layout is most

suitable form of plant layout.

7. Nature of machines:

Nature of machines and equipment also affects the layout of plants. If machines are heavy in

weight or create noisy atmosphere, stationery layout may reasonably be adopted. Heavy

machines are generally fixed on the ground floor. Ample space should be provided for

complicated machines to avoid accidents.

8. Climate:

Sometimes, temperature, illumination and air are the deciding factors in the location of

machines and their establishments. For example, in lantern manufacturing industry, the spray-

painting room is built along the factory wall to ensure the required temperature control and air

expulsion and the process of spray painting may be undertaken.

9. Nature of material:

Design and specification of materials, quantity and quality of materials and combination of

materials are probably the most important factors to be considered in planning a layout. So,

materials storage, space, volume and weight of raw materials, floor load capacity, ceiling

height ,method of storing etc. should be given special consideration. This will affect the space

and the efficiency of the production process in the plant. It will facilitate economic production of

goods and prompt materials flow and soundly conceived materials handling system.

10. Type of machine:

Machines and equipment may be either general purpose or special purpose. In addition certain

tools are used. The requirements of each machine and equipment are quite different in terms of

their space; speed and material handling process and these factors should be given proper

consideration while choosing out a particular type of layout. This should also be considered that

each machine and equipment is used to its fullest capacity because machines involve a huge

investment. For instance, under product layout, certain machines may not be  used to their full

capacity so care should be taken to make full use  of the capacity of the machines and equipment.

11. Human factor and working conditions:

Men are  the most important factor of production and therefore special consideration for their

safety and comforts should be given while planning a layout, specific safety items like

obstruction-free floor, workers not exposed to hazards, exit etc. should be provided for. The

layout should also provide for the comforts to the workers such as provision of rest rooms,

drinking water and other services etc. sufficient space is also to be provided for free movement

of workers.

12. Characteristics of the building:

Shape of building, covered and open area, number of stores, facilities of elevators, parking

area and so on also influence the layout plan. In most of the cases where building is hired, layout

is to be adjusted within the spaces available in the building. Although minor modification may be

done to suit the needs of the plants and equipment. But if any building is to be constructed,

proper care should be given to construct it according to the layout plan drawn by experts. Special

type of construction is needed to accommodate huge or technical or complex or sophisticated

machines and equipment.

Types of layout

1. Process or functional layout

2. product or line layout

3. project or fix position

1. Process layout

The layout in which all the equipments performing similar tasks are grouped together is

called the process layout.It is also called the functional layout, as the material and machines

required are grouped depending on their functions. For example: the milling machines,

machines can be grouped together and the grinding machines can be grouped together.

Advantages

o A high degree of variety of products can be manufactured.

o Flexibility and adaptability to change is high.

o Machine breakdown do not cause of stoppage.

o It is easier to instill job satisfaction to workers.

o Coordination and supervision is simpler.

Disadvantages

o Higher flow time of the product due to zigzag flow through the system.

o Larger number of machine set-ups.

o Low machine utilization.

o More material handling.

2. Product or line layout: -

The layout in which the equipments are placed in the order in which they are used for

producing the product is called the product layout. The product layout is also called the line

layout, as the materials and machineries required are place in sequence. This type of layout is

useful in automobiles industries or industries where assembling of materials and part take

place. In such industries, you need to start the process by feeding in the raw materials and the

process ends with the production of the final product. In the product layout, workmen are

required in less number that automatically reduces the cost and leads to higher productivity,

as the whole process is automatic.

Advantages

o Low total flow time for the product.

o High rate of output, because there are no interruptions to the flow.

o Simple production planning.

Disadvantages

o No variety is possible.

o No flexibility is regard to design changes.

o High capital cost and capital investment.

o Less job satisfaction for labour.

Combination of product and process layout

In practice, the adoption of a pure product layout or a pure process layout in rarely seen, as it

is not possible to adopt either of these in isolation. So, we come across a combination of

product and process layout which is widely practiced, especially in factories which are

engaged in repetitive processes manufacturing standard products. This is on account of

deriving the maximum benefits accruing from both product and process layouts, there by

over coming the disadvantages of these layouts.

3. Project or fixed position layout

The layout in which the raw materials are placed in a fixed position is called the project

layout. The project layout is also called the fixed position layouts, as the production

operation is performed at one fixed position. This type of layout is useful when number of

equipments is less. For example, aero plane and ship manufacturing industries use this type

of layouts. In this type of layouts, the machineries are heavy and therefore, they are fixed at

one position.

Advantages

o Reduces movement of machineries and equipments.

o Minimize damage or cost of moving.

o More continuity of the assigned work force since there is no movement of raw

materials or product from one department to another. Hence, the problem or re-

planning and instructing people each time a new type of activity is to begin.

Disadvantages

o Since the same workers are involved in more operations. Skilled and versatile workers

are required. The necessary combination of skills may be difficult to find and high

pay level may be necessary.

o Movement of people and material to and from the place may be expensive.

o Equipments utilization is low because the equipment may be left at a location where it

will be needed again in a few days rather than moved to another location where it

would be productive.

Advantages of plant layout

o Better work conditions for workmen.

o Minimization in material handling.

o Minimization in damage and spoilage materials.

o Minimization in congestion of materials, machinery and workmen.

o Flexibility in changing production conditions.

Bank layout:

1) ATM (Automated teller machine):

Square feet: 2’4’ 5/16’

Reasons for choosing starting area:

As ATM is not a part of bank cash transaction, the committees decided to locate it

outside the bank.

Advantages for locating ATM out side the bank:

1. Less rush of the people inside the bank

2. Benefit for the people who want to withdraw money.

3. The employee can work easily inside the bank.

4. Less maintenance required so it will be cost benefit.

5. The customer can make transaction quickly.

Space advantages:

1. As the ATM is out side the bank it requires less space.

2. As spaces is allocated in accordance with customer privacy.

2) Entrance:

Square feet: 9’0”

Advantages:

The entrance door should be broad and not too narrow for the movements of two

different people abilities and status (such as wheelchair and baby car).

Furthermore, although some branches used automatic doors at the entrance, this is

not the case for every branch.

These branches used manual doors that were heavy and often difficult to use. This

was a particular problem for the disabled and elderly. Therefore, two important

points are considered for redesigning the entrance.

All entrance doors are required to be automatic, in order to make it more

accessible for disabled users, or those with baggage.

In addition, the redesign of doors ensured that they were wide enough to

accommodate both a wheelchair-user and baby car at the same time.

3) Waiting area:

Square feet:16’ 8”

Purpose:

1. As it is nearby entrance, other departments will not be disturbed.

2. Designed a space such as that seems entitled “the hospitality booth”, we want to

provide a hospitality space that allows users to relax

3. Users are able to kill time here reading a magazine. For businessmen we provide a

desk with Internet LAN, in order for the user to check emails or do some work while

waiting.

Advantages:

1. Customer can relaxed and wait till their turns come.

2. Customer fills belongingness.

3. Allocation of large area would be comfortable and increase degree of privacy for the

customers .

4) Reception office:

Square feet:7’7”

Purpose:

1. Customer inquiry could be solved with less possible hazels.

2. For families, circular desk was considered most appropriate, so that they can talk and

interact with each other.

3. Management of complaints, request or inquiry becomes easier, as all inquiry

transaction are managed by reception.

Advantages:

1. As it is nearby waiting, it becomes easy for new visitor to decide whom to speak for

his inquiry.

2. Reception area is separately allocated for easy and efficient working of the other

department.

3. As waiting area is away from reception area it becomes easy to communicate and

handle inquiry.

5) Loan Department/Foreign Exchange/New Accounts:

Square feet: 7’20”

Advantages:

1. All departments are divided separately so that representative can have efficient

communication with the customers and personal service could be provided.

2. Dividing departments all ensures the privacy of customer.

3. To ensure the degree of privacy this room has been left small so that “one to one

“basis service can be provided.

4. All data related to concern department is stored in its department so all

departments can be well organized.

6) Manager’s office:

Square feet: 12’ 9”

Purpose:

1. As it is located in the middle of the building it become more easy for manager

to keep eye on all the area of the bank.

2. Employee works efficiently, as they are always in front of manager’s eye.

Advantages:

1. Less chance of errors in the bank.

2. Manager’s office is centrally allocated so he can observe all the activities of

the bank.

7) Queue area:

Square feet: 10’5”

Purpose:

To have secure cash transaction.

Advantages:

1. Customer security can be increased.

2. Privacy of the transaction can be maintained as location of the department is

inside the bank.

3. Only customer who comes for transaction will enter this area so there will be

less rush and queue can be maintained.

8. Back office:

Square feet: 4’7”

Advantages:

All administrative works are done by back office and needs more space to store

employee records and transaction detail; it is next to store room.

9. Teller room:

Square feet: 7’25”

Advantages:

1. Teller room handle all the cash and account related transaction, where the

mistakes are not allowed and so it should be away from noisy area.

2. This area needs most security of all the departments, so that person has to pass

most doors to reach this area.

3. All the transaction related documents are stored in store room so they are near

to store room.

4. As now a day’s no bank keeps cash in the bank building, but are store at the

central branch, teller has a wide space to receive a cash box to handle big

amounts daily.

Cost befit analysis:

Less maintenance cost

Less space required

Higher security in least cost

In this lay out less camera required

Every department would not required noise proof system.