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Plant location
&
layout design
CONTENTS
1. What is layout ?!
2. NEED FOR SELECTING A SUITABLE LOCATION
3. Factors affecting Layout
4. Types of Plant Layo...
What is layout ?!
The concept of plant layout is not static but dynamic
one. It is on account of continuous manufacturing ...
NEED FOR SELECTING A SUITABLE LOCATION
 In Case of Location Choice for the First Time or New Organizations
 In Case of L...
I. In Case of Location Choice for the First Time or New Organizations.
1. Identification of region.
2. Choice of a site wi...
II. In Case of Location Choice for Existing Organization
1. Plant manufacturing distinct products.
2. Manufacturing plant ...
There Is Scope for virtual proximity and virtual factory
III. In Case Of Global Locations
1. VIRTUAL PROXIMITY
With the ad...
Factors affecting Layout
1. Material Factors
2. Men Factor
3. Machinery Factor
4. Movement Factor
5. Waiting Factors
6. Se...
TYPES OF PLANT LAYOUT
• 1. Product or Line Layout
• 2. Process or Functional Layout.
• 3. Fixed Position Layout.
• 5. Grou...
1. PRODUCT OR LINE
LAYOUT:
All the processing equipment
and machines are arranged
according to the sequence of
operations ...
•It is appropriate for producing one standardized product,
usually in large volume. I
•t is also called as flow-shop layou...
1. Lowers total material handling cost.
2. There is less work in processes.
3. Better utilization of men and machines,
4. ...
Limitations of Product Layout:
1.No flexibility which is generally required is obtained in this
layout.
2.The manufacturin...
2. PROCESS OR FUNCTIONAL LAYOUT:
In this type of layout, the machines and not arranged according to
the sequence of operat...
• The process layout is
particularly useful where low
volume of production is
needed.
• This layout is commonly
suitable f...
1. There will be less duplication of machines. Thus, total
investment in equipment purchase will be reduced.
2. It offers ...
1. There are long material flow lines and hence the
expensive handling is required.
2. Total production cycle time is more...
3. Fixed Position Layout:
In this type of layout the
major component remain in a
fixed location, other
materials, parts, t...
Due to size, shape and
other characteristics
constraints, the products
cannot be moved, the
machine and operators
move aro...
1.Material movement is reduced
2.Capital investment is minimized.
3.The task is usually done by gang of operators, hence
c...
1.Highly skilled man power is required.
2.Movement of machines equipment’s to
production center may be time consuming.
3.C...
4.Group Layout (or Cellular Layout):
There is a trend now to bring an
element of flexibility into
manufacturing system as
...
• It combines the advantages of
both layout systems.
• In process layout, the
objective is to minimize the
total cost of m...
Group Technology layout can increase..
1. Component standardization and rationalization.
2. Reliability of estimates.
3. E...
Limitations of Group Technology Layout
This type of layout may not be
feasible for all situations. If the
product mix is c...
REFERENCES
Production and Operations Management
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Plant location & layout design

  1. 1. Plant location & layout design
  2. 2. CONTENTS 1. What is layout ?! 2. NEED FOR SELECTING A SUITABLE LOCATION 3. Factors affecting Layout 4. Types of Plant Layout 1. Product or Line Layout 2. Process or Functional Layout. 3. Fixed Position Layout. 4. Group layout 5. References
  3. 3. What is layout ?! The concept of plant layout is not static but dynamic one. It is on account of continuous manufacturing and technological improvements taking place necessitating quick and immediate changes in production processes and designs “Plant layout is the arrangement of machines, work areas and service areas within a factory”. George R. Terry
  4. 4. NEED FOR SELECTING A SUITABLE LOCATION  In Case of Location Choice for the First Time or New Organizations  In Case of Location Choice for Existing Organization.  In Case of Global Location
  5. 5. I. In Case of Location Choice for the First Time or New Organizations. 1. Identification of region. 2. Choice of a site within a region.
  6. 6. II. In Case of Location Choice for Existing Organization 1. Plant manufacturing distinct products. 2. Manufacturing plant supplying to specific market area. 3. Plant divided on the basis of the process or stages in manufacturing. 4. Plants emphasizing flexibility.
  7. 7. There Is Scope for virtual proximity and virtual factory III. In Case Of Global Locations 1. VIRTUAL PROXIMITY With the advance in telecommunications technology, a firm can be in virtual proximity to its customers .Markets have to be reached. Customers have to be contacted 2. VIRTUAL FACTORY. Many firms based in USA and UK in the service sector and in the . manufacturing sector often out sources part of their business processes to . foreign locations such as India
  8. 8. Factors affecting Layout 1. Material Factors 2. Men Factor 3. Machinery Factor 4. Movement Factor 5. Waiting Factors 6. Service Factors 7. Building Factors 8. Change Factor
  9. 9. TYPES OF PLANT LAYOUT • 1. Product or Line Layout • 2. Process or Functional Layout. • 3. Fixed Position Layout. • 5. Group layout
  10. 10. 1. PRODUCT OR LINE LAYOUT: All the processing equipment and machines are arranged according to the sequence of operations of the product
  11. 11. •It is appropriate for producing one standardized product, usually in large volume. I •t 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.
  12. 12. 1. Lowers total material handling cost. 2. There is less work in processes. 3. Better utilization of men and machines, 4. Less floor area is occupied by material in transit and for temporary storages. 5. Greater simplicity of production control. Total production time is also minimized. Advantages of Product Layout:
  13. 13. Limitations of Product Layout: 1.No flexibility which is generally required is obtained in this layout. 2.The manufacturing cost increases with a fall in volume of production. 3.If one or two lines are running light, there is a considerable machine idleness. 4.A single machine break down may shut down the whole production line. 5.Specialized and strict supervision is essential.
  14. 14. 2. PROCESS OR FUNCTIONAL LAYOUT: In this type of layout, the machines and not arranged according to the sequence of operations but are arranged according to the nature or type of the operations.
  15. 15. • The process layout is particularly useful where low volume of production is needed. • This layout is commonly suitable for non repetitive jobs. • Same type of operation facilities are grouped together such as lathes will be placed at one place.
  16. 16. 1. There will be less duplication of machines. Thus, total investment in equipment purchase will be reduced. 2. It offers better and more efficient supervision through specialization at various levels. 3. There is a greater flexibility in equipment and man power thus load distribution is easily controlled. 4. Better utilization of equipment available is possible. 5. Break down of equipment can be easily handled by transferring work to another machine/work station. 6. There will be better control of complicated or precision processes, especially where much inspection is required. Advantages of Process Layout:
  17. 17. 1. There are long material flow lines and hence the expensive handling is required. 2. Total production cycle time is more owing to long distances and waiting at various points. 3. Since more work is in queue and waiting for further operation hence bottle necks occur. 4. Generally, more floor area is required. 5. Since work does not flow through definite lines, counting and scheduling is more tedious. 6. Specialization creates monotony and there will be difficult for the laid workers to find job in other industries. Limitations of Process Layout:
  18. 18. 3. Fixed Position Layout: In this type of layout the major component remain in a fixed location, other materials, parts, tools, machinery, man power and other supporting equipment’s are brought to this location.
  19. 19. 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.
  20. 20. 1.Material movement is reduced 2.Capital investment is minimized. 3.The task is usually done by gang of operators, hence continuity of operations is ensured 4.Production centers are independent of each other. Hence, effective planning and loading can be made. Thus total production cost will be reduced. 5.It offers greater flexibility and allows change in product design, product mix and production volume. Advantages Of by Fixed Position Layout:
  21. 21. 1.Highly skilled man power is required. 2.Movement of machines equipment’s to production center may be time consuming. 3.Complicated fixtures may be required for positioning of jobs and tools. This may increase the cost of production. Limitations of Fixed Position Layout:
  22. 22. 4.Group Layout (or Cellular Layout): There is a trend now to bring an element of flexibility into manufacturing system as regards to variation in batch sizes and sequence of operations. A grouping of equipment for performing a sequence of operations on family of similar components or products has become all the important.
  23. 23. • It combines the advantages of both layout systems. • In process layout, the objective is to minimize the total cost of materials handling. • In-group technology layout, the objective is to minimize the sum of the cost of transportation and the cost of equipments Cellular Layout
  24. 24. Group Technology layout can increase.. 1. Component standardization and rationalization. 2. Reliability of estimates. 3. Effective machine operation and productivity. 4. Customer service. It can decrease the.. 1. Paper work and overall production time. 2. Work-in-progress and work movement. 3. Overall cost.
  25. 25. Limitations of Group Technology Layout This type of layout may not be feasible for all situations. If the product mix is completely dissimilar, then we may not have meaningful cell formation.
  26. 26. REFERENCES Production and Operations Management
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Plant location & layout design go on to determine you best location and your layout .

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