Plant Location: Factors influencing plant location, theories of plant location, plant layout – objectives of plant layout, principles of plant layout, types of plant layout, their merits and demerits, facilities design function: objectives. Introduction to Material Handling: Objectives and principles of material handling, unit load concept, Basic handling equipment types, Common material handling equipment

1. Rashmi S
Dept of IE&M
JSS Academy of Technical Education, Bengaluru
Facilities Planning and Design – 18 IM55
Module 1:
Plant Location and Introduction to Material
Handling

2. Course Outcomes
COs Course Outcomes
Bloom’s
Level
CO1
Choose appropriate plant location and material handling equipment to
for facilities design.
L3
CO2
Examine different plant layout approaches and relationship charts for
systematic layout planning.
L4
CO3
Explain the factors considered in space and area allocation on the shop
floor and methods for constructing the layout.
L5
CO4
Adapt various quantitative approaches and layout models to facilities
planning.
L6
CO5 Design computerized plant layouts. L6
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3. Text Books:
1. Plant layout and material handling-James M. Apple
2. Facility layout and location- francoise, R.L. and White J.A
3. Plant layout and design- James M Moore,
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4. Plant location
 1.1 Factors influencing plant location
 1.2 Theories of plant location
 1.3 Plant layout------- 1.3.1 Objectives of plant layout
 1.3.2 Principles of plant layout
 1.3.3 Types of pant layout -their Merits and Demerits
 1. 4 Facilities design function: objectives
Introduction to Material Handling
 1.5 Objectives and principles of material Handling
 1.6 Unit load concept, Mechanization
 1.7Common basic material handling equipment Types
Module –I
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5. Symptoms that allow us to detect the need for a re-
layout:
•Congestion and bad 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 carrying out too many simple
operations.
•Labor anxiety and discomfort. Accidents at the facility.
•Difficulty in controlling operations and personnel.
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6. Facilities Planning
 The location of facilities and also determination of the configuration at
certain types of facilities
 Also called Facilities planning!
 Facilities planning is complex and broad subject cuts across several
disciplines (engineering, civil, electrical, architecture, etc)
 However, here we’ll focus on industrial engineer’s role in developing
effective and efficient facilities plans.
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7. Facilities Planning Viewpoints
 Civil engineering
 Electrical
 Mechanical engineering
 Architectural
 Real estate
 Urban planning
 Industrial engineering
What is the role of each in facility planning?
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8. IE Viewpoint of Facilities Planning
 IEs are focusing on requirements, resource allocation, and efficient use
of resources.
Facilities are the integration of many lower level systems
 Space requirements with respect to flow and operations control
 Personnel requirements
 Equipment requirements
 System design/layout with respect to flow and operations control
 The use of information systems and technology to increase effectiveness
 Movement within a facility
 Movement between facilities – Location
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9. Definitions
 Facility location refers to the choice of region and the selection of a
particular site for setting up a business or factory
 Plant layout
Plant layout refers to the arrangement of physical facilities such as
machinery, equipment, furniture etc. within the factory building in such a
manner so as to have quickest flow of material at the lowest cost and with
the least amount of handling in processing the product from the receipt of
material to the shipment of the finished product.
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10. Definition
 Facilities Planning determines how an activity’s tangible and fixed
assets should contribute to meeting the activity’s objectives .
This course will focus on
 Facilities planning.
 Emphasis on location and layout.
 Some coverage of materials handling.
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11. Why Facilities planning is important?
Think of the following questions:
 What impact does facilities planning have on handling and maintenance costs?
 What impact does facilities planning have on employee moral?
 What impact does facilities planning have on management of a facility?
 What impact does facilities planning have on a facility’s capability to adapt to
change and satisfy future requirements?
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12. Facilities Planning
Facilities Planning involves :
1. Facilities Location
2. Facilities design
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13. Example
Manufacturing Facilities Planning
Plant Location
Plant
facilities
system
Plant
layout
Plant Design
Material
Handling
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14. Plant location:
Plant location refers to the choice of region and the selection of a particular site
for setting up a business or factory.
 But the choice is made only after considering cost and benefits of different
alternative sites.
 It is a strategic decision that cannot be Changed once taken.
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15. Cont…
 A plant is a place where men, materials, money, equipment, machinery ..etc are
brought together for manufacturing products.
 Plant location means deciding a suitable location, area, place..etc, where the plant
or factory will start functioning.
 Several factors are to be taken into consideration in finalizing the location of a new
plant/project.
 The ultimate objective should be to arrive at an optimal unit production cost so
as to ensure high productivity and efficiency.
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16. Plant Location Factors:
1. Raw materials availability Restrictions 9. Taxation and legal
2. Markets 10. Site characteristics
3. Energy availability 11. Flood and fire protection
4. Climate conditions 12. Community factors
5. Transportation facilities
6. Water supply
7. Waste disposal
8. Labor supply
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17. 1.1 Factors influencing the plant location: a) Regional factors b) community
consideration c) site selection
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18. 1.2 Theories of Plant location
1. Theory of maximum profit location: August Losch in 1954,
Find out the place where maximum profit occur.
2. Interdependence theory of location: Fettler and Hotelling
Plant location should be based on the ability of a site to control the
largest market area.
3. Theory of least cost location: Thunen- German economist
Search for site offering the least cost with special reference to agriculture.
5. Weber’s theory of location: Alfred Weber German economist in 1930.
Location choosen must consider the movement of raw materials to factory,
movement of finish products to the market.
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19. 1.3 PLANT LAYOUT
 Plant layout refers to the arrangement of physical facilities such as machinery , equipment, furniture..etc
within the factory building in such a manner so as to have quickest flow of material at the lowest cost and
with the least amount of handling in processing the product from the receipt of material to the shipment of the
finished product.
1.3.1 OBJECTIVES OF THE PLANT LAYOUT
The primary goal of the plant layout is to maximize the profit by arrangement of all the plant facilities to the
best advantage of total manufacturing of the product.
1. Streamline the flow of materials through the plant.
2. Facilitate the manufacturing process.
3. Maintain high turnover of in-process inventory.
4. Minimize material handling cost
5. Effective utilization of men ,equipment and space
6. Make effective utilization of cubic space.
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20. 1.3.1 OBJECTIVES OF THE PLANT LAYOUT
The primary goal of the plant layout is to maximize the profit by arrangement of all the
plant facilities to the best advantage of total manufacturing of the product.
1. Streamline the flow of materials through the plant.
2. Facilitate the manufacturing process.
3. Maintain high turnover of in-process inventory.
4. Minimize material handling cost
5. Effective utilization of men ,equipment and space
6. Make effective utilization of cubic space.
7. Flexibility of manufacturing operations and arrangement.
8. Provide for employee Convenience safety and comfort
9. Minimize investment in equipment
10. Minimize overall production time
11. Maintain flexibility of arrangement and operation
12. Facilitate the organizational structure
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21. Principles of Plant Layout:
1. Principle of integration
2. Principle of minimum distance
3. Principle of cubic space utilization
4. Principle of flow
5. Principle of maximum flexibility
6. Principal of safety, security and satisfaction
7. Principal of minimum handling
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22. TYPES OF PLANT LAYOUT
1. Product layout
2. Process layout
3. Group Technology
(Cellular) Layout
4. Fixed position
layout
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23. Process Layout
 Similar activities and machines/operations are grouped together by
functions into departments or work centers (job shops)
 Low-volume high-variety products
 Inputs follow different paths for processing
Examples: Department stores, universities, hospitals
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24. PROCESS LAYOUT 05-10-2020
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25. Advantages
1. Lower initial capital investment.
2. Lower overhead costs.
3. Change in output design can be adopted to the output of variety of products.
4. Breakdown of one machine doesn’t lead to complete stoppage.
5. Effective supervision.
6. Great flexibility.
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26. Disadvantages:
1. Higher material handling costs.
2. More skilled labor is required which further increases the cost.
3. Time gap in production is higher.
4. Work in progress inventory is high, leading to greater storage space.
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27. Product layout
Machines are placed according to the sequence in which operation are performed on
the product.
• Only one type product is produced in a given area.
• Activities and machines/operations are arranged sequentially in order by
product specifications (flow shops)
• High-volume standardized products
• Inputs follow the same path
Examples: Assembly lines, Car manufacturing.
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28. Product Layout
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29. Advantages of Product Layout:
 Low cost of material handling
 Smooth operations
 Continuous flow of work
 Optimum use of floor space
 Shorter processing time
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30. Disadvantages of Product layout:
 High initial capital investment in special purpose machine.
 Breakdown of one machine will hamper the whole production
process.
 Heavy overhead charges.
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31. Process Layout Vs Product Layout
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32. 3. Combined layout
 A combination of process and product layout is known as combined
layout.
 Manufacturing concerns where several products are produced in
repeated numbers without the likelihood of continuous production.
Examples : Files, hacksaws, circular metal saws, wood saws…etc
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33. Group Technology (GT) Cellular Manufacturing
 Group Technology (GT) is a management philosophy that attempts to
group products with similar design or manufacturing characteristics, or
both.
 Cellular Manufacturing (CM) is an application of GT that involves
grouping machines based on the parts manufactured by them.
 The main objective of CM is to identify machine cells and part families
simultaneously, and to allocate part families to machine cells in a way that
minimizes the intercellular movement of parts.
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34. Group Technology /Cellular Manufacturing
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35. Cellular layout
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36. 4.Fixed position layout
 Layout in which the product or project remains stationary, and
workers, materials, and equipment are moved as needed.
Examples:
 Large construction projects (buildings, power plants, dams)
 Shipbuilding,
 production of large aircraft
 Rockets used to launch space missions
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37. Advantages / Merits
 Material movement is reduced.
 Promotes job enlargement by allowing individuals or teams to perform the
“whole job”.
 Continuity of operations and responsibility results from team.
 Highly flexible; can accommodate changes in product design, product mix, and
product volume.
 Independence of production centers allowing scheduling to achieve minimum
total production time.
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38. Disadvantages
 Increased movement of personnel and equipment.
 Equipment duplication may occur.
 Higher skill requirements for personnel.
 General supervision required.
 Cumbersome and costly positioning of material and machinery.
 Low equipment utilization.
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39. Product Volume Vs Product Variety
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40. 1.4 Facilities Design functions
 Facility layout and Design is an important component of a business’s overall
operation, both in terms of maximizing the effectiveness of the production process
and meeting the needs of employees.
OBJECTIVES
 The basic objective of layout is to ensure a smooth flow of work, material and
information through a system.
1. Effectively utilizing people, equipment, space, Energy.
2. Provide for continuous improvement throughout facility life cycle
3. Promote user safety and satisfaction
4. Facilitate productivity gains and cost reduction
5. Promote ease of maintenance
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41. PRESENTING THE LAYOUT TO MANAGEMENT
WRITTEN REPORT
1. DEFINE THE OBJECTIVES OF THE REPORT
2. ESTABLISH A TABLE OF CONTENTS
3. DETERMINE THE AUDIENCE
4. WRITE THE REPORT
5. DOCUMENT THE REPORT
6. EDIT THE REPORT
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42. Tutorial Questions:
1. Explain the factors influencing the location of plant?
2. Explain the theories of plant location?
3. Explain the objectives and principles of plant layout?
4. Explain the advantages , disadvantages and applications of types of
plant layout?
5. Explain the facility design function?
6. What is material handling? Explain the principles and objectives of
material Handling?
7. What is unit load concept ?Explain the principles, types, advantages
and Disadvantages of unit load concept?
8. Explain the levels of mechanization?
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43. Material Handling
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44.  The design of the material handling system is an important component of the
facilities design problem.
 There exists a strong relationship between the layout design and the material
handling design function.
 In a typical factory, handling accounts for 25% of all employees, 55% of all
factory space, and 87% of production time.
 Material handling is estimated to represent between 15 and 70% of the total
cost of a manufactured product.
Introduction
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45. Contd…
 Certainly, material handling is one of the first places to look for cost
reduction.
 Material handling is also one of the first places to look for quality
improvements.
 It has been estimated that between 3 and 5% of all material handled
becomes damaged.
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46. Definition
 Material handling is a means by which total manufacturing costs are
reduced through reduced inventories, improved safety, reduced
pilferage, and improved material control.
 Material handling is a means by which manufacturing quality is
improved by reducing inventory and damage through improved
handling.
 Finally, material handling is the means by which any production
strategy is executed.
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47. Key Definitions
1. Material handling is the art and science of moving, storing, protecting,
and controlling material.
2. Material handling means providing the right amount of the right
material, in the right condition, at the right place, at the right time, in
the right position, in the right sequence, and for the right cost, by
using the right method(s).
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48. Top 10 Principles of Material Handling
1. Planning Principle. A plan is prescribed course of action that is defined in
advance of implementation. In its simplest form, a material handling plan
defines the material (what) and the moves (when and where); together
they define the method (how and who).
2. Standardization Principle. Standardization means less variety and
customization in the methods and equipment employed.
3. Work Principle. The measure of work is material flow (volume, weight, or
count per unit of time) multiplied by the distance moved.
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49. Contd…
4. Ergonomic Principle. Ergonomics is the science that seeks to adapt work or
working conditions to suit the abilities of the worker.
5. Unit Load Principle. A unit load is one that can be stored or moved as a single
entity at one time, such as a pallet, container, or tote, regardless of the
number of individual items that make up the load.
6. Space Utilization. Space in material handling is three-dimensional and
therefore is counted as cubic space.
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50. 7. System Principle. A system is a collection of interacting and/or interdependent
entities that form a unified whole.
8. Automation Principle. Automation is a technology concerned with the application
of electromechanical devices, electronics, and computer-based systems to operate
and control production and service activities. It suggests the linking of multiple
mechanical operations to create a system that can be controlled by programmed
instructions.
9. Environmental Principle. Environmental consciousness stems from a desire not to
waster natural resources and to predict and eliminate the possible negative effects of
our daily actions on the environment.
10. Life-Cycle Cost Principle. Life-cycle cost include all cash flows that will occur from
the time the first dollar is spent to plan or procure a new piece of equipment, or to
Contd..
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51. Definition of Material Handling: By MHI
“ Material Handling embraces all of the basic operations
involve in movement of bulk, packaged, & individual products
in semisolid or solid state by means of machinery, & within the
limits of place of business”
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52. OBJECTIVE OF MH
• To increase efficiency of material flow by ensuring availability of
materials when & where they needed
• To reduce MH cost
• To improve facilities utilization
• To improve safety & working conditions
• To facilitate mfg processes
• To increase productivity
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53. MH EQUIPMENT TYPES
All Equipments in MH are classified in three main
types, i.e
1. Conveyors:
Conveyors are used for moving materials
continuously over a fixed path. Examples of
different conveyors are; roller, belt, & chute
conveyors
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54. MH EQUIPMENT TYPES (Cont..)
Belt conveyor Conveyor m/cs
Hand Conveyor Roller Conveyor

55. MH EQUIPMENT TYPES (Cont..)
1. Conveyors:
Advantage
1. Permits high capacity for moving large number of items
2. Their speed is adjustable
3. Handling combined with other activities such as processing & inspection is
possible
4. They are versatile & can be on floor or overhead
5. Temporary storage of loads b/w work station is possible (particularly overhead
conveyors)
6. Load transfer is automatic & does not require the assistance of many operators
7. Straight line paths or aisles are not required
8. Utilization of the cube is feasible through the use of overhead conveyors
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56. Conveyors: Disadvantages:
1. They allow a fixed path, serving only limited areas
2. Bottlenecks can develop in the system
3. A breakdown in any part of the conveyor stops the entire
line
4. Since conveyors are fixed in position, they hinder the
movement of mobile equipment on the floor
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57. Cranes & Hoists
• Cranes & Hoists are items
of overhead equipment for
moving loads
intermittently within a
limited area.
• Bridge cranes, monorail
cranes, & hoists are
examples of this basic
equipment type
Bridge Crane
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58. 2. Cranes & Hoists:
Jib Cranes
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59. 2. Cranes & Hoists
Advantages:
1. Lifting as well as transferring of material is possible
2. Interference with the work on the floor is minimized
3. Valuable floor space is saved for truck rather than being utilized for installation of handling equipment
4. Such equipment is capable of handling heavy loads
5. Such equipment can be used for loading & unloading of materials
Disadvantages:
1. They require heavy investment (especially bridge cranes)
2. They serve a limited area
3. Some cranes move only in straight line & thus can not make turns
4. Utilization may not be as high as desirable since cranes are used only for a short time during daily work
5. An operator has to be available for operating some types, such as bridge cranes
Applications:
Shipyards & heavy equipment production facilities
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60. 3. Trucks
Hand or Powered Trucks move loads over varying paths Examples of such Trucks include
Lift Trucks, Fork Trucks, Trailer Trains, & Automated Guided Vehicles
Lift Type
trucks
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61. Hand Trucks:
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62. Fork Trucks:
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63. Trailer Trains:
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64. Trucks
Advantages:
• They are not require to follow a fixed path of movement & therefore can be used any where on the
floor where space permits
• They are capable of loading, unloading, & lifting, in addition to transferring material
• Because of their unrestricted mobility, which allows them to serve different areas, trucks can achieve
high utilization
Disadvantages:
• They cannot handle heavy loads
• They limited capacity per trip
• Aisles are require; other wise the trucks will interfere with the work on the floor
• Most trucks have to be driven by an operator
• Trucks do not allow handling to be combined with processing & inspection, as other type of eqpt do
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65. DEGREE OF MACHANIZATION IN MH
• A MH System can be completely manual or fully automated;
• Different degrees of mechanization also exist between these
two extremes
• Level of Mechanization in MH System is classified with
respect of Source of power for handling, degree of human
involvement & computers in operating the equipment
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66. Level of Mechanization can be classified as:
1. Manual & Dependent on Physical Effort:
This level also includes manually driven equipment such as hand truck
2. Mechanized:
Power instead of physical effort is used for driving the eqpt. Some trucks, conveyors, & cranes fall into this
level. Here operators are needed for operating the eqpt as opposed providing the power
3. Mechanized Complemented with Computers:
It is an extension of 2nd level
The function of the computers is to generate documents specifying the Moves & Operations
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67. 4. Automated:
Minimum human intervention is used for driving & operating the eqpt, &
most of these functions are performed by computers.
Examples includes Conveyors, Automatic Guided Vehicles (AGVs) &
Automated Storage and Retrieval Systems (AS/RS)
The equipment usually receives instructions form key boards,
pushbuttons, & tape or card readers
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68. Automated Guided Vehicle Systems
An automated guided vehicle system is a battery-powered driver-less vehicle with
programming capabilities for destination, path selection, and positioning.
The AGVS belongs to a class of highly flexible, intelligent, and versatile material
handling systems used to transport materials from various loading locations to
various unloading locations throughout the facility.
The components of an AGVS
1. The vehicle. It is used to move the material within the system without a human
operator.
2. The guide path. It guides the vehicle to move along the path.
3. The control unit. It monitors and directs system operations including feedback on
moves, inventory, and vehicle status.
4. The computer interface. It interfaces with other computers and systems such as
the mainframe host computer, the automated storage and retrieval system, and the
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69. AS/RS
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70. Automated Storage and Retrieval Systems (AS/RS)
•To get right parts, pallets, fixtures, and tools to the right place at the right time, an efficient system for their
storage and retrieval together with a material transportation system is required.
•An integrated FMS, AGVS, and AS/RS system provides an efficient production system for manufacturing low- to
medium- volume and middle- to high-variety products.
Function of storage systems and definition of AS/RS
•Receiving, identification and sorting, dispatching to storage, placing in storage, storage, retrieving
from storage, order accumulation, packing, shipping, and record keeping for raw materials,
purchased parts, work in process, finished product, pallets, fixtures, tools, spare parts, rework and
scrap, office supplies, and so forth have traditionally been considered the functions of storage
systems.
•An AS/RS attempts to achieve these functions by automating most of these procedures in a cost-
effective and efficient manner.
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71. Contd…
In general, an AS/RS performs a basic set of operations
without human intervention, regardless of the specific
type of system that is employed.
1. Automatic removal of an item from a storage location
2. Transportation of this item to a specific processing or
interface point
3. Automatic storage of an item in a predetermined
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72. 05-10-2020
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74. References
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 Facilities Planning, Third Edition By JAMES A. Tompkins
 Plant Layout And Materials Handling By James M. Apple
 Facility Planning & Layout Design by Chandrashekar Hiregoudar, B
Raghavendra Reddy