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Selection Criteria of a Plant


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How to Select a Plant Layout

How to Select a Plant Layout

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  • 2. PLANT LOCATION : A plant should be located at a place where inhabitants are interested in it’s success, the product can be sold profitably and production cost is minimum – DR. Vishweshwarya. A plant location is often result of compromise among conflicting social, economic and geographical conditions – Lansburg.
  • 3. PLANT LOCATION :The principle factors to be considered forthe location of a plant :Availability of Raw materialsNearness to Potential marketSupply of LabourTransportation facilitiesAvailability of Utilities : Water, Fuel, PowerSuitability of Climate & LandLocal Community ConsiderationsPolitical Strategic ConsiderationsEnvironmental Impact, And Effluent Disposal.
  • 4. PLANT LOCATION :Availability of Raw Materials : The Availability And Price Of Suitable RawMaterials Will Often Determine The SiteLocation. Plants Producing Bulk Chemicals AreBest Located Close To The Source Of The MajorRaw Material. EX: Soda Ash Plant Should Be Located NearThe Salt Lakes Or Near Sea, Where SodiumChloride Is Available Abundantly.Nearness to Potential Market : For Materials That Are Produced In Bulk Quantities:Such As Cement, Mineral Acids And Fertilizers, thePlant Should Be Located Close To The Primary Market.
  • 5. PLANT LOCATION :Supply of Labour : Local Trade Union Customs And RestrictivePractices Will Have To Be Considered When AssessingThe Availability And Suitability Of The Labour ForRecruitment And Training. An Adequate Pool Of Unskilled Labour AvailableLocally.Transportation Facilities : The Transport Of Materials And Products To AndFrom Plant Will Be An Overriding Consideration. If Practicable, A Site Should Be Selected That Is Closeto At Least Two Major Forms Of Transport: Road,Rail, Waterway Or A Seaport.
  • 6. PLANT LOCATION :Availability of Utilities : Water, Fuel,Power : The Word “Utilities” Is Now Generally Used For TheAncillary Services Needed In The Operation Of AnyProduction Process. Electricity: Power Required For ElectrochemicalProcesses, Motors, Lightings, And General Use. Steam For Process Heating: The Steams Required ForThe Process Are Generated In The Tube Boilers UsingMost Economic Fuel. Water For General Use: The Water Required For TheGeneral Purpose Will Be Taken From Local Water
  • 7. PLANT LOCATION : Suitability of Climate & Land : Adverse Climatic Conditions At Site Will Increase Costs. Abnormally Low Temperatures Will Require The Provision Of Additional Insulation And Special Heating For Equipment And Piping. Sufficient Suitable Land Must Be Available For The Proposed Plant And Future Expansion. The Land Should Be Ideally Flat, Well Drained And Have Load- Bearing Characteristics. A Full Site Evaluation Should Be Made To Determine The Need For Piling Or Other Foundations.
  • 8. PLANT LOCATION : Local Community Considerations: The Proposed Plant Must Fit In With And Be Acceptable To The Local Community. Full Consideration Must Be Given To The Safe Location Of The Plant. So That It Does Not Impose A Significant Additional Risk To The Community. Political And Strategic Considerations: Capital Grants, Tax Concessions, And Other Inducements Are Often Given By Governments To Direct New Investment To Preferred Locations; Such As Areas Of High Unemployment. The Availability Of Such Grants Can Be The Overriding Consideration In Site Selection.
  • 9. PLANT LOCATION :Environmental Impact, And EffluentDisposal: All Industrial Processes Produce Waste Products,And Full Consideration Must Be Given To TheDifficulties And Coat Of Their Disposal. The DisposalOf Toxic And Harmful Effluents Will Be Covered ByLocal Regulations, And The Appropriate AuthoritiesMust Be Consulted During The Initial Site Survey ToDetermine The Standards That Must Be Met.
  • 10. LAYOUT PLANNING : Layout planning in manufacturing and service organizations involves the physical arrangement of various resources available in the system to improve the performance of the operating system, there by providing better customer service.
  • 11. LAYOUT PLANNING :Plant layout begins with plant locationand continues through 3 further levels: Layout of department with in site. Layout of items with in the department. Layout of individual work place.Objectives of Plant Layout : Economies of materials, facilitation of manufacturingand handling of goods. Proper and efficient use of floor space. Ensure proper flow of goods and processes withoutany delay. Provision of supervision and control.
  • 12. LAYOUT PLANNING :Objectives of Plant Layout : Careful planning to avoid changes and re-layout of aplant. Provision of safety to workers. Meet quality and capacity requirement in the mosteconomical manner. Provision of adequate medical facilities andrefreshment facilities. Have enough of material handling space. Space for future expansion.
  • 13. LAYOUT PLANNING :Implications of Layout Planning : The relationship between “volume-variety-flow”provides crucial inputs to the layout problem. As the flow becomes more cumbersome, the type oflayout may significantly influence the ability of theoperations manager to effectively plan and controloperations on the shop floor.Types of Layouts: Over the years, operations management andpractitioners have evolved four major types of layouts.
  • 14. LAYOUT PLANNING : Types of Layouts: Process Layout Product Layout Group Technology Layout Fixed Position Layout Process Layout: A process layout is an arrangement of resources on the basis of the process characteristics of the resources available. Product layout has a disorganized flow.
  • 15. LAYOUT PLANNING :Process Layout:
  • 16. LAYOUT PLANNING :Product Layout : In a product layout, the resources are placed tofollow exactly the process sequence dictated by aproduct.
  • 17. LAYOUT PLANNING :Group Technology Layout: Group Technology Layout is a philosophy that seeksto exploit the commonality in manufacturing anduses this as the basis for grouping components andresources. The GT is often known as CellularManufacturing.
  • 18. LAYOUT PLANNING :Fixed Position Layout: Fixed Position Layout are typically employed inlarge – project type organizations.
  • 19. LAYOUT PLANNING :Volume-Variety-Flow Implications ForLayout Planning : Very Low Medium High Variety One-off Variety Variety ExecutionFlow Attributes Stream lined Multiple Flow Disorganized Jumbled Flow flow paths FlowVolume High Volume Mid-Volume Low-Volume One PieceAttributesExamples of Industry: Mass Batch Job shops: Project ShopsOperating Product/Service Manufacturing CustomizedSystems Provider Firms product/ServiceTypes of Layout Product Layout Group Process Layout Fixed PositionUsed technology Layout Layout