After reading this chapter you will able to understand:
the concept of facilities planning
Various tools, techniques and models used for layout
Layout decisions and its techniques
Various types of layout
Various tools techniques and models for location
BMW’S LOCATION DECISION
BMW had to take strategic decision about the location of their new
plant to produce the new models.
Company decided to start up at one of its existing plants, at the
Regensburg plant in Germany.
Reasons for the selection are:-
Facility’s track record of high quality standards
Flexibility to shift production from one model to another
Agility of the production team
Save a substantial amount of time
Facilitate skill development of new recruits.
Plant is well connected with roadways, train lines and an airport.
Existing human resources are well trained and understands the
mechanism of production.
Accessibility to local markets, cost effectiveness and a congenial
PLANT LAY OUT
Plant lay out can be defined as the physical
arrangement of machines, equipment and all other
supportive facilities to production with in a factory to
ensure easy and cost effective flow of materials , right
from the receipt of materials to various stages of
production and finally the output.
IMPORTANCE OF LAYOUT DECISION
It has an impact on the process of production, like
optimization of relationship among output, floor area
and manufacturing process, minimization of materials
handling time and cost, flexibility of operations, easy
flow of materials, economic use of land and building,
effective manpower utilization and improved quality
of work life for workers.
DETERMINANTS OF LAY OUT
Volume of production