This presentation focused on plant layout and plant location design, which is one sub-topic of industrial management.

1. BASICS OF PLANT LAYOUT
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2. Plant layout
Plant layout has been defined as a plan of, or the
act of planning an optimum arrangement of
industrial facilities, including
 personnel,
 operating equipment,
 storage space,
 materials handling equipment and
 all other supporting services along with the design of
the best structure to contain these facilities
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9. Locate All Areas In and Around Buildings
– Equipment
– Work stations
– Material storage
– Rest/break areas
– Utilities
– Eating areas
– Aisles
– Offices
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10. Problems of layout develop when needed:
• to start a new product,
• to change the product design,
• to reduce the cost;
And when
• the market demand changes,
• the plant, the product, the building become obsolete,
• accidents occur frequently,
• the working environment is poor.
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11. The resulting problems involve
• planning a completely new plant,
• re-arranging a presently installed layout,
• making adjustments to existing layout.
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12. The objectives of a good study of plant
layout are:
• ensure effective space utilization,
• minimize the cost of material handling (internal
transports),
• foresee future developments of the plant according to a
rational master plan,
• improve workers convenience as well as safety and
create job satisfaction, and
• avoid unnecessary capital investment.
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13. Types of Layout
• Product Layout: In this type of layout, only one
product or one type of product is produced in a
given area.
• The product must be standardized and
manufactured in large quantities in order to
justify the product layout.
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15. Some of the Advantages of Product Layout
are:
• lower total material handling cost,
• lower total production time,
• less work in process,
• greater incentive for groups of workers to raise level of
performance,
• less floor area required per unit of production and
• greater simplicity of production control, fewer control
records needed and lower accounting cost.
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16. Product Layout is Used When:
• one or few standard products are to be produced,
• large volume of production of each item over a
considerable time is needed,
• minimum of inspection is required during sequence of
operations,
• minimum of very heavy equipment or equipment
requiring special facilities are needed,
• materials and products permit bulk or continuous
handling of mechanical means and
• one machine is always used for one purpose.
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17. Process Layout
Process Layout: Similar equipment and similar
operations are grouped together in the process or
functional layout. It is particularly useful where low
volume is required.
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19. Some of the Advantages of Process Layout
are:
• less duplication of equipment, hence lower investment
cost,
• greater flexibility of production,
• better and more efficient supervision,
• greater incentive for individual workers to raise level of
performance,
• better control of complicated or precision processes,
• easier to handle breakdowns of equipment by
transferring work to another machine or station.
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20. Process Layout is Used when
• many types or styles of products are on special order ,
• relatively low volume of production on individual items is needed,
• many inspections are required during a sequence of operations,
• high proportion of very heavy equipment or equipment requiring
special treatment exist,
• materials or products become too large or too heavy to permit bulk
or continuous flow and
• one machine is used for different operations.
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21. Fixed-Position Layout
• Fixed-Position Layout: In this type of layout, the material
or major component remains in a fixed location, and
tools, machinery, men as well as other pieces of
material are brought to this location. Typical examples
are ship building, construction industries, aircraft building
and bench work exercises. This type of layout is not
frequently used in industrial enterprises. For this reason
we are not going to look into its advantage and
disadvantages.
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22. Product
Design
Change
Cause and result occur very frequently
Cause and result occur less frequently
Cause and result occur occasionally
No line Cause and result occur very seldom
Build New
Plant
Move to
existing
Plant
Rearrange
Existing
Plant
Minor
changes
New
product
Market
Demand
Change
Obsolete
Facility
Poor
Worker
Environment
Market
Relocation
Cost
Reduction
Relation between causes and classes of layout problems
Class of layout problems
Developing Simulating Layout Problems
22
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23. STUDY OF PLANT LAYOUT
• The solution of any size and type of plant layout
problems could be facilitated by using a
systematic and logical approach.
• An early pioneer in this area was Richard
Muther, developer of the Systematic Layout
Planning (SLP) methodology.
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24. The SLP procedure leads the planner
through
• Abstraction (Analysis): Gathering appropriate
information and analyzing the flow of materials
and the activity relationships to form a
relationship diagram. Space considerations
when combined with the relationship diagram
develop the space relationship diagram.
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25. Search (for possible solution):
• The overall layout is designed by combining space
consideration with the relationship diagram.
• The search phase is the phase in which alternative
layouts are developed by examining the space
relationship diagram under modifying consideration such
as materials handling, storage facilities, site conditions
and surroundings, building types, personnel
convenience, etc., and practical limitations.
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26. Selection:
• The most efficient general method of evaluating
layout alternatives is termed factor analysis. It
follows the engineering concept of breaking
down the problem into its elements and
analyzing each one.
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27. INPUT ACTIVITIES
AND DATA
Relationship
Diagram
Space
Required
Activity
Relationship
Flow of
Material
Space
Available
Computerized
Layout Planning
Modifying
Consideration
Practical
limitation
Layout X
Layout Y
Space
Relationship
Diagram
Layout Z
Layout
Selected
Detail a
Detail b
Detail c
SEARCH
ABSTRACTION
(
ANALYSIS
)
EVALUATION
Systematic layout Planning Procedure
27
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28. Abstraction (Analysis)
• There are two basic elements on which every
layout problem rests
• Product (or material)
• Quantity (or volume)
• These two elements underline all other features
or conditions directly or indirectly in layout work.
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29. R. Routing-Process
How will it (they) be produced
Q. Quantity-Volume
How much of each
Item will be produced
P. Product-Material
What is to be produced
S. Support services
With what support will
production be backed
T. Time
When will it be produced
H
W
Key PQRST to unlock layout problems
Y
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30. This phase will require the assembly of different
data. In general, information about the following
is needed:
• the list of items to produce and store, and the
relative quantity;
• successive operations needed for every
product;
• the volume, the weight and the characteristics
of materials to transport along the production
line;
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31. • the number, type and technical data of machines
and plants necessary;
• the manpower needed;
• the necessary electric energy, steam, water,
compressed air, fuel, oil, etc.
• the necessary general service (offices, labs,
cafeteria etc.);
• the necessary auxiliary services like
maintenance department, tool store, etc;
• the possible variation of the product in the future.
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32. • If the study is on an existing plant, it is
necessary to have drawings of the plant layout
and the building with all the technical data.
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33. Search for Possible Solution
• The systematic approach of generating
possible alternatives of plant layout is
conducted by taking in to consideration:
1. type of layout,
2. the possible internal transport systems and
3. the working condition.
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34. • Type of Layout: It is necessary to determine
which type of layout to select, product (line) or
process (functional) layout.
• In addition to the selection of type of layout it is
also important to fix the arrangement of
machines
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35. P-Q Diagram
P
P
Q
Q
C
B
Product
Product α
Product y
A
Q=Quantity
P= Product
β
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36. • In region A there are few types of products but
in a great quantity. For these products it is
advisable to have product layout.
• In region C there are very many products in
small quantity. Hence, preferred to have process
layout.
• For products in region B (medium types of
products and medium quantity) the case has to
be studied closely so as to be able which layout
to select.
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37. • There are different types of machine
arrangements. The form of an industrial building
is mainly dependent on machine arrangements
and the advancement of a workpiece. The usual
forms are shown
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38. a) IN PARALLEL
a) IN SERIES
a) COMBINED
Examples of Machine Arrangements
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40. The Possible Internal Transport
System:
• After considering the type of workpiece
advancement, the production capacity and the
machineries required, it is necessary to examine
the volume and weight of materials that has to
be transported from one machine to the other, or
from one department to the other
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41. Cont’d…
• The type of material handling equipment
influences directly the plant layout and also the
building. The working position, the form of the
layout, the height, width and length of the
building, the loading and unloading of materials,
the positions and dimensions of accessibility
depends in general, on the type of internal
transport system adopted.
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42. • A good study of internal transport system may boil down
to the following major benefits:
Reduce costs by
- utilizing space to better advantage,
- increasing productivity and
- making few number of effective movements.
Reduce waste by
- eliminating damage to material during the handling
process and
- maintaining proper control over in-and-out of stock
handling process.
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43. Improve working conditions by
• providing safer working conditions and
• reducing worker fatigue.
Improve the efficiency of the plant by
• improving location of storage facilities,
• improving routing and
• increasing productivity.
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44. Future Expansion
Raw Material
Finished Good
Store
Working Dep’t
Typical One Floor Industrial Building
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45. • In some plants, the cost of repeated handling
constitutes a very high proportion of the total
cost of the end product, and in some others, the
distance, materials have to move is not the sole
criterion, and often is not even the primary
concern for locating an area or an operation.
Hence, more realistic value assessment of the
factors that truly affect total cost in different
kinds of layout planning situations is needed.
• The available computer aided layout algorithms
fall into, either improvement, or construction
routine categories.
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46. IMPROVEMENT ROUTINE:
• The basic approach is to find a suboptimum design by
making improvements in sequential fashion. First, a
given layout has to be evaluated to determine what the
effect will be if department locations are interchanged.
• If improvements can be made by making pairwise
exchanges, the exchange producing the greatest
improvement can be adopted.
• The process continues until no improvement is possible
by pairwise exchanges.
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47. The objective function to be evaluated is:
TC = Total internal transport cost
 Cij = Cost of internal transport, per unit distance per unit
weight, for material movement between department i and
j
 Wij =Weight of material transported, per unit time, from
department i to j
 Dij = Distance from department i to j
D
C
W
=
TC ij
ij
ij
n
i
-
j
n
1
-
i


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48. • The routine accepts input data of Wij and Cij in the form of a
FROM - TO chart. It may also accept Dij in the form of a
FROM - TO charter, or it may accept the co-ordinates of
the work centers.
• A FROM - TO chart is a square matrix whose elements
represent flow or distance between departments.
• The chart is constructed by listing the departments down
the left hand column and then across the top in the same
order.
• The departments on the left are the originating (FROM)
departments and the ones at the top are the receiving (TO)
ones.
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4
n
...
i
...
To
From
3
2
1
... j ...
1
2
3 4 n
x C
= Wij x D
ij ij

50. • A relationship chart is a triangular matrix whose
elements represent the relationships among
plant layout departments. Letter codes are also
used to represent desirable or undesirable levels
of closeness between departments.
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51. • Six standard letter codes are used to show closeness
relationships.
• "A" indicates an absolutely necessary closeness
relationship;
• "E" indicates especially important;
• "I" important;
• "O" ordinary;
• "U" unimportant;
• "X" indicates a not desirable closeness relationship.
Although the letter codes are standard, the ratings reflect
the user's own reasons for assigning the letter codes.
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52. • This routine constructs layouts without the need
for an existing (preliminary) layout.
• Basically find the starting point or initial activity
placement and then add the remaining activity
areas in accordance with logical rule. Thus, the
routine accepts qualitative information from the
relationship chart with closeness value
numerically rated.
CONSTRUCTION ROUTINE:
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53. • The relationship chart and the numerically
weighted ratings, assigned to the closeness
values, are the basis for the order and placement
in which departments enter the layout. The
ratings assigned for A,E,I,O,U and X are used to
calculate the Total Closeness Rating (TCR) for
each department.
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54. where
• TCRj=Total Closeness Rating for department;
• V(rij) =Numerical value assigned to the closeness value for
department i and j.
• n = Total number of departments.
m
...
1
=
i
);
r
V(
=
TCR ij
n
1
=
j
i 
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DEPT.
1
2
...
k
m
...
...
n
The relation between the K and the
M dept. can have any closeness value
(A,E,I,O,U or X)
th
th

56. • The first department to be placed in the layout is
assigned by taking the department with the greatest
TCR. Next, the relationship chart is scanned to see if
there is any department that has an A value with the
department already placed. If no A value exists, a check
is made for E value, and if no E value appears, a check
is made for I value, followed by O value. If ties develop,
the department having the greatest TCR is chosen. This
process is continually used until finally all departments
are placed in the layout.
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57. Working Condition
• Proper working conditions are considered
important by management because they
increase production effectiveness. Employee
working conditions are influenced by many
factors, over which the employee has very little
or no control.
• A good layout considers the factors influencing
working conditions.
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58. LIGHTING
• Good lighting facilitates accuracy and ease of seeing. A
lighting system that aids these two demands means that
the worker is able to see the critical details required in his
job without excessive visual strain.
• The lighting fixtures are described according to the way
they distribute light.
 Direct lighting 0-10% of flux directed to the roof
 Semi direct 10-40% " " "
 General diffuse 40-60% " " “
 Semi indirect 60-90% " " “
 Indirect 90-110% " " "
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59. • In most European countries, the law requires for
a minimum level of illumination. The following
ranges are accepted internationally
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60. TYPE OF WORK ILLUMINATION VALUE IN FLUX
• Store and rarely accessible
working places 100 - 200
• Rough work (Brewery) 200 - 500
• Medium work (automobile assembly) 500 - 1000
• Precise work (wool work) 500 – 1000
• Fine work (Radio and TV assembly) 1000 - 2000
• Very fine work (controlling wool work) 1000 - 2000
• Working on a very small pieces
(watch assembly) 2000 - 7500
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61. AIR CONDITIONING
• Air conditioning is used for many plants to
control contamination by dust, bacteria and toxic
gases in addition to air temperature and
humidity.
• Air conditioning is a system which provides an
atmosphere comfortable to the human being and
maintain an atmospheric environment
demanded by a manufacturing process or
storage of products.
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62. NOISE
• A wide variety of sound exists in industry.
Continuous exposure to high noise levels
frequently results in temporary or even
permanent loss of hearing.
• But there is no clear cut line to indicate how
much noise results in hearing loss.
• The following are standard measurements for
different sound sources in decibels:
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63. SOURCE dB
- Hydraulic process at one meter 140
- Automobile horn push at one meter 120
- Automatic lathe at one meter 100
- Conversation at one meter 70
- Workshop (mechanical) 80
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64. The reduction of noise may be brought about by
a variety of methods. Some of these methods
are:
 Control of the noise at the source.
 Isolation of the noise.
 Use of baffles and sound absorbers.
 Acoustical treatment.
 Use of ear protection devices.
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65. USE OF COLOR
• The objective of utilizing scientifically selected colors is
to bring about a clear three dimensional vision.
• Color codes have been developed for particular uses.
The red, yellow and green of traffic lights is a well known
example of color coding.
Red - danger; stop
Yellow - caution
Green - safety equipment
• It is advisable to paint the roof of the industrial building
with a minimum reflection index of 0.7, the walls 0.5, and
the floor 0.25.
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66. Different colors have different psychological effects.
• Red - Hot and heavy, exciting, stimulating.
• Orange - Hot, exciting and stimulating less than red.
• Yellow - Hot, exciting lovely.
• Green - Fresh and light, pacific.
• Blue - Light, pacific.
• Violet - Light, loneliness.
• White - Cold, brilliant (seems to increase volume).
• Black - Hot (seems to decrease volume) depressing.
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67. SPACE REQUIREMENTS
• The layout man often finds himself involved in work space
arrangement; at any rate, he must determine the floor space that will
be required by an operator. The study of floor space needed
considers the following points:
• While at work, the operator's arms and hands should move as easily
as possible and he ought to reduce, to the minimum the movement
of his shoulders, his body and his person from one position to
another.
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69. • Fixed posts for utensils and materials should be assured.
• The disposition of utensils, materials and organs of maneuver near
and infront of the operator.
• Avoidance of the standing operator wherever possible. The study of
the working area should consider a proper and comfortable position
for the legs of the operator in an armchair or on a stool.
• When the operator is transporting material, or when he is in a
position to push, or pull he should do it in such a way that:
• he is in an equilibrium position and
• he applies the possible minimum force to produce the effect.
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71. PASSAGE IN AN INDUSTRIAL
BUILDING
• From the very beginning of the study one has to determine the
corridors within the building. Their width is determined according to
the internal transport system selected and according to the
clearance needed for passages.
• Principal corridors which normally start from one end of the building
and end at the other end are 3 to 5 meters wide.
• Corridors within the department:
1. passage for one person 60 cm,
2. passage for two persons 120 cm,
3. passage for three persons 170 cm.
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72. SAFETY
• A good plant layout should consider the safety of
all personnel.
• Lack of adequate storage space which is
beyond the control of the foreman, can lead to
unsafe practices in the storage of materials.
Some of the safety hazards to be watched for in
plant layout are:
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73. • inadequate passage,
• insufficient storage space allowance for safe handling procedures,
• insufficient handling equipment capacity,
• floor load capacity,
• floor obstructions,
• slippery finish floors,
• inadequate exits,
• inadequate stairs, ramps and ladders,
• inaccessible fire extinguisher and first aid boxes
• unguarded moving parts of equipment ,
• workers located under the above hazards and
• improper ventilation for removal of dangerous or toxic gases.
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75. • The layout man should give due consideration to
the problem of safety. Overlooking the problem
will lead to
 lower morale of the workers,
 lower productivity and
 heavy accident liability costs.
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76. Selection
• Every layout plan has intangible costs which to
all intents and purposes cannot be measured in
terms of birr and cents.
• Moreover, a comparative cost analysis of
alternative layouts is sometimes a standoff, no
one plan has a clear-cut financial advantage
over the other. Essentially, however, there are
three:
1. balancing advantages against disadvantages;
2. cost comparison and justification; and
3. factor analysis rating.
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77. Advantages versus Disadvantages
• Probably the easiest of the three evaluation methods
mentioned above is the listing of advantages and
disadvantages.
• It is also the least accurate; therefore, it is used more for
preliminary screening out of rough alternatives.
• This pros and cons system involves merely listing in
columns or on sheets placed adjacent to each other all
the advantages of each alternative, below them are
listed the disadvantages.
• This simple comparison is surprisingly effective and
certainly is not a time consuming procedure
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78. Cost Comparisons
• A more economical approach to the evaluation
problem is cost comparison, by establishing the
total factory cost of a product and added
investment for machine tools, a comparison
between alternatives is possible.
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79. • In preparing a cost analysis, there are
basically two approaches we can follow.
– We may either consider total cost involved or
– We may consider only those costs that will be
affected by the project under considerations.
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80. • A systematic way of classifying cost elements
and accumulating cost figures are required. For
this the following procedures are recommended.
– prepare a worksheet(s) that picks up investment
requirements for each alternatives;
– prepare a worksheet that establishes operating cost
estimates, and
– make calculations to compare and justify
expenditures for alternative layout plans.
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81. Factor Analysis
• The overall desires of what is wanted in layout
being planned are broken down into so-called
factors or considerations. They may also be
termed criteria or objectives. Follows a list of the
most commonly involved factors or
considerations; not in order of importance.
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82. • ease of future expansion,
• adaptability and versatility,
• flexibility of layout,
• flow of materials effectiveness,
• materials handling effectiveness,
• storage effectiveness,
• space utilization,
• effectiveness of supporting service integration,
• safety and housekeeping,
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83. • working conditions and employee satisfaction,
• ease of supervision and control,
• appearance, promotions value, public or community relations,
• quality of products,
• maintenance problems,
• fit with company organization structure,
• equipment utilization,
• utilization of natural conditions or surroundings ,
• ability to meet capacity or requirements,
• investment or capital required and
• savings, payout, returns, profitability.
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84. PROCEDURE FOR EVALUATING
ALTERNATIVES BY FACTOR ANALYSIS
A.Identify the plan to be evaluated.
– Select the alternatives that are to be evaluated.
– Have a visual plan, or sketch of each layout infront of
each rater clearly understood by him, during the
evaluation process.
– Identify each visual plans by letters A, B, C, etc. Also
give it a brief three-to-five word description.
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85. B. Establish the factors or considerations.
– Establish what factors, consideration criteria or
objectives are involved, or wanted from the
layout.
– Define the factors so that they are clearly
understood. Avoid duplication of terms and
congestion as to meaning.
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86. C. Arrange a rating sheet.
– List the factors or considerations vertically on
the lines of a sheet of paper.
– Arrange the identification letter for each
alternative plant horizontally in columns
across the same sheet.
– Leave room for adequate reference notes.
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87. D. Determine the relative importance of
each factor.
– Determine the weight or importance value of
each factor relative to the other factors.
– Record by whom the weight values are
determined.
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88. E. Rate each factor for alternative plans.
– Establish a rating code or system.
– Rate each element on the extent to which it
achieves, or affords the ends represented by
the factor in question - - - rating each layout
exactly as it is planned.
– Rate all the plans for one factor; then take the
next factor.
– Record by whom the rating(s) was (were)
made.
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89. F. Calculate weighted value and total.
– Translate the rating symbols into numerical values
and multiply the weight value by each rating number.
– Total the weighted rating values for each alternative
plan by adding the respective columns.
– Record by whom the extension and tally were made.
– Take actions as appropriate, based on the totals.
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90. 11/11/2023 9:21 AM 90
COMMENTS
Notes: A- Almost perfect(4), E- Especially Good(3), I- Important Results Obtained(2),
O - Ok, Ordinary Results(1), U - Unimportant Results Obtained(0)
FACTOR/CONSIDERATION
n. Investment Cost
(Building alterations)
TOTALS
4. Flexibility
3. Flow of Materials and
handling Economy
2. Ease of Supervision
1. Convenience of Service
12
55 103
12 36
100 137
24
RATING & WEGHTED RATINGS
10
10
6
WT.
20
0
O
6
0
24
A
U
A
I
B
30
20
15
E ¯
15
E ¯
I
C D
E
E
20 30
I E
O U
10
O E I E ¯
30