Location and Layout slides

1. 9/20/2017
1
Plant Location and
layout
Plant Location
 Factors affect location of Industries:
>>Relating to raw material. Production and delivery of product
 Proximity to raw material site.
 Availability of favorable labor force and labor [social, political, etc.)
 Climate condition: temperature, humidity, rainfall, etc.
 Availability of energy sources.
 Availability of water supply and waste disposal.
 Proximity to market.
 Transportation facility.

2. 9/20/2017
2
Plant Location
 Factors affect location of Industries:
>>Relating to requirement of men (workforce)
a) Educational facilities for the children of the staffs.
b) Recreational facilities.
c) Market and health facilities.
d) Communication facilities (mail, telephone, internet,etc.)
e) Social life of the area.
f) Transportation facilities for the personnel, etc.
>> Other related factors:
a) Taxes and Govt. /regional laws applicable to area.
b) Cost of land
c) Future expansion facilities
d) Community attitude, etc.
Plant Location

3. 9/20/2017
3
Justification of Locations
 Refineries at Potenga:
Raw materials source is outside the
country and comes in bulk by ship,
processes inflammable materials, so
should be far away from the locality
and near huge source required to put
off fire if caught.
Justification of Locations
 Garment factories in town areas:
For availability of labor, to avoid providing
accommodation, health, transportation,
recreational and other related services to
labor force, uses non weight loosing raw
etc.
Electrical goods industries in town areas:
Town area is favorable for getting skilled
and semi-skilled workforce, does not take
big area to build industry, can be expanded
vertically if needed as these are not
categorized as heavy industries.

4. 9/20/2017
4
Justification of Locations
 Sugar mills in North Bengal Areas:
The industry using weight loosing raw materials,
by establishing at the site area saves money for
material transportation, it is economic to
transport sugar than to transport sugarcane,
sugarcanes are available at that area.
 Jute mills in Chittagong, Dhaka, Khulna areas:
Raw material jute is available mostly around the
Dhaka within a radius of around 50 to 100km but
the market for jute was outside the country when
the industries were established. Since jute is not a
weight loosing material it is same if the jute is
carried to mill and jute products are carried to
near to sea port area for export.
Justification of Locations
 Do you consider the location of CUET is appropriate? Justify your
answer.

5. 9/20/2017
5
Location Models
Factor Rating Method
ILLUSTRATION 1: Let us assume that a new medical facility, Health-care, is to be
located in Chittagong. The location factors, factor rating and scores for two potential
sites are shown in the following table. Which is the best location based on factor
rating method?

6. 9/20/2017
6
Weighted Factor Rating Method
ILLUSTRATION 2: Let us assume that a new medical facility, Health-care, is to be
located in Chittagong. The location factors, weights, and scores (1 = poor, 5 =
excellent) for two potential sites are shown in the following table. What is the
weighted score for these sites? Which is the best location?
Load Distance factor
Euclidean distance is the straight-line distance, or shortest possible path, between two points.
Rectilinear distance measures distance

7. 9/20/2017
7
Load Distance factor
ILLUSTRATION 3: The new Health-care facility is targeted to serve seven census tracts in Dhaka.
The table given below shows the coordinates for the centre of each census tract, along with the
projected populations, measured in thousands. Customers will travel from the seven census tract
centres to the new facility when they need health-care. Two locations being considered for the new
facility are at (5.5, 4.5) and (7, 2), which are the centres of census tracts C and F. Details of seven
census tract centres, co-ordinate distances along with the population for each centre are given below.
If we use the population as the loads and use rectilinear distance, which location is better in terms of
its total load distance score?
Load Distance factor

8. 9/20/2017
8
Center of Gravity Method
ILLUSTRATION 4: The new Health-care facility is targeted to serve seven census
tracts in Delhi. The table given below shows the coordinates for the centre of each census
tract, along with the projected populations, measured in thousands. Customers will travel
from the seven census tract centres to the new facility when they need healthcare. Two
locations being considered for the new facility are at (5.5, 4.5) and (7, 2), which are the
centres of census tracts C and F. Details of seven census tract centres, coordinate distances
along with the population for each centre are given below. Find the target area’s centre of
gravity for the Health-care medical facility.
Layout
 Layout is the arrangements of facilities in an area, e.g.
arrangement of machineries inside a plant, arrangements
of buildings inside a factory premises. Generally factory
layout means the layout or arrangement of machineries in
a room.

9. 9/20/2017
9
Types of Layout
 Process/Functional layout: Machine doing similar types of
works are grouped in one place.
Hospital – some processes (e.g. X-ray machines and
laboratories) are required by several types of patient; some
processes (e.g. general wards) can achieve high staff and
bed utilization.
Types of Layout
 Product layout: Machines are arranged according
to the requirements of progress in product
making. Examples of product layout include the
following:
Automobile assembly – almost all variants of the
same model require the same sequence of
processes.
Self-service cafeteria – generally the sequence of
customer requirements (starter, main course,
dessert, drink) is common to all customers, but
layout also helps control customer flow.

10. 9/20/2017
10
Types of Layout
 Fixed position layout: Required
machineries are bought to the place
of making the product as the final
product big, heavy and requires large
space. For example:
Motorway construction – the product is
too large to move
Shipbuilding – the product is too large
to move
Types of Layout
 Group Technology layout: Industries making verities of products
sometimes make group of products requiring similar operations. So
machineries required for a particular group of products are
grouped in one place.
 Hybrid layout: Sometimes layout combines element of both
product and process layout. This intermediate strategy calls hybrid
layout, which arranges some portion of facility as process layout
and other portion as a product layout.

11. 9/20/2017
11
Effect of bad layout:
If the layout is not proper then the following problem may rise:
 More time is required for material handling causing increase in manufacturing
time and thus production rate decreases cost increases.
 Hampers production as each workstations required standard space for the
best performance which might not be available.
 Space for in process inventory might not be available near the required
workstation causing temporary obstruction in production.
 Congested layout or unscientific layout is not helpful for healthy work
environment which cause s decline in workers motivation
 In case of any accidents/ emergency, bad layout delay in rescue or stopping
the causes, etc.
>> Comparison between process layout
and Product layout:
Product layout Process layout
If one worker remains absent, production
is delayed until a substitute is arranged
Such problem does not arise
Workers become expert in only the
operation he does and so if he quits or
remains absent the authority must teach
another employee the operation to be
done
As workers doing similar jobs work in one
place, they become expert by getting help
from seniors and in case anybody quits or
remains absent, others do the job and due
to that no temporary vacuum arise.
Is not helpful for training purpose Helpful for employee training
Less floor space is needed, so material
handling cost is less
More floor space is needed and material
handling cost is comparatively more
Not enough space is needed for keeping in
process inventory
Space for keeping in process inventory
needed
Design of material handling system is
easier
Fixed material handling system can always
be used.