This document discusses facility layout concepts and types. It defines facility layout as the physical location of departments within a facility based on factors like processing requirements, walking distance, and emergency services. The scope of facility layout is described as related to materials, the workplace, and performance objectives. Four main types of layouts are outlined: process, product, grouping technology, and fixed position. Examples and advantages/disadvantages of each type are provided. The document also discusses Henry Ford's innovations in assembly line layout and Maruti Udyog's efforts to improve productivity through their Challenge 50 program.

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CONTENTS
 Concepts
1) Introduction
2)Factors affecting Layout
3)Scope of Facility Layout
4)Types of Facility Layout
 Scope of the Topic
Cases
References

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What is Facility Layout?
The layout facility is the physical location of the various
departments/units of the facility within the premises of the facility.
The departments may be located based on the considerations such
as:
Less walking distance
Logical sequence of the processing requirements of the product
Emergency services, etc

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Factors affecting Layout
oMaterial
oProduct
oMachinery
oLabour
oLocation
oManagerial Policies
oType of Industry

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Scope of Facility Layout
Related to material
 Less material handling and minimum transportation cost
 Less waiting time for in-process inventory .
Related to work place
 Safe working conditions from the point of ventilation, lighting, etc.
 Minimum movement of workers
 Least chances of accidents, fire, etc.
 Proper space for machines, worker, tools, etc.

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Performance related objectives
 Simpler plant maintenance
 Increased productivity, better product quality, and reduced cost
 Least set-up cost and minimal change-over
 Objective related to flexibility
 Scope for future expansion

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Types of Layouts
1) Process Layout
• suitable when product having standard features is to be
produced in large volumes.
• the specialized machines and equipments are arranged one after
another in the order of sequence required in the production
process.
CAR
1
CAR
2
CAR
3Conveyer

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Advantages of Process Layout:
•Greater Flexibility
•Better and more efficient supervision possible through
specialization
•Capacity of different product line can be expanded easily.
•Better utilization of men and machine.
Disadvantages:
•More floor space
•More work in progress
•More distance travelled by the product.

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2) Product Layout
•It is appropriate for producing one standardized product, usually
in large volume. It 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.

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Advantages:
•Mechanization of materials is possible and material
handling cost can be reduced.
•It requires less floor area.
•It facilitates better production control.
•Production bottlenecks are avoided.
Disadvantages:
•Expansion of product line is difficult.
•There is difficulty is supervising.
•Breakdown of equipment disrupts the production.

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Grouping technology layout of cellular manufacturing layout is made for a
single part family i.e parts with common characteristics. In this layout
dissimilar machines are grouped into cells and each cell functions like
product layout.
Advantage and Disadvantages:
3) Grouping Technology Layout
It reduces material handling cost
and simplifies machine
changeovers. It reduces in-process
inventory and automate the
production but reduces the
flexibility.

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When 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.
Advantage:
Less investment is required in this
layout and less transport cost as
bulky machines are not moved.
4) Fixed Position Layout

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Henry Ford- The Inventor of the Assembly Line
In 1973, Henry Ford employed up to 1,000 people simply to move material in his
automobile factory, an occupation that was to be virtually eliminated In a new
building with an improved layout and with mechanized and gravity-based material-
handling systems.
Ford discovered that great economies could be made by moving stocks to the
assembly staff rather than having them leave their workplace to get materials.
He also noted that costs could be greatly reduced by providing that workers
with all the necessary tooling and thereby eliminating tool rooms. The great
emphasis placed on efficiency in transporting materials in ford factories seems
to have been the motivating factor that led to the development of an assemble
line.

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Ford engineers conserved space by using very detailed floor plans and
positioned equipment such that when a machine comes into the factory, it is
placed so that the material coming from an operation will be as exactly as
possible in position for succeeding one.
Ford himself said, “they (machines) are scientifically arranged, not only in
the sequence of operations, but to give every man and every machine every
square inch of space that he/it requires and… not… more”. Ford was
extremely conscious that space in his factory was valuable and sought to
exploit it as completely as possible without giving any more to work in
progress than was necessary. Ford emphasizes ‘dividing and subdividing
operations, keeping the work in motion- those are the keynotes of
production’, in a perspective that leaves no room for excessive or idle
inventories (Wilson 1995).

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Maruti Udyog- challenge 50
Shinichi Takeuchi, former head of Suzuki’s Kosai facility in Japan, was sent to one of
Suzuki’s most profitable subsidiaries, Maruti Udyog, as director(Production) in October
2001.
Thus trying to fill in the wide performance gap between Maruti and Suzuki’s Kosai
facility, which produces 600,000 cars in a year.
The low production cost will give Maruti not just more profits, but an advantage over
competition.At Maruti’s Gurgaon plant, Takeuchi has pulled from under the carpet all
kinds of Muda(Japanese for wastage) starting with the assemble line. At some of the
workstations of the assemble line, the number of steps a worker has to walk to fetch
parts and tools from their racks has been brought down to 5 from the earlier 10-
15.With almost 200 workers manning one assemble line, the saving have led not just to
increase in productivity, but also safety.
In may 2002, Takeuchi launched the challenge 50 programme at Maruti.
Challenge 50 aims at increasing the productivity at Maruti’s Gurgaon facility by
50% and reducing the costs by 30%.

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Another problem successfully handled by Takeuchi at the assemble line
is the proper installation of rubber beadings for doors by the line
operators. Earlier staggering 14% of the cars would fail the shower
test(to check the leakage) as a result of the improper installation of
these beadings. Today, the figure stands at less than 1%. Takeuchi is still
not happy because that means nine cars fail the test in every shift. There
is a specific sequence to be followed for making the fitment. If that is not
done, it may result in warranty claims at the customer’s end. Even if it is
detected in the shower test, costly rework is required. The car needs to
be taken off the assembly line to a rework station, where extra man-
hours have to be spent fixing the problem. Takeuchi ensured that the
workers follow the installation sequence exactly, so that there is no
scope for rework.

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Maruti udyog ltd. is raising quality and efficiency levels across
the board in order to achieve its benchmark of Suzuki’s facility
at Kosai, Japan, through the challenge 50 programme.
Compared to the 100% benchmark of Kosai, Maruti presently has
comparative assemble hours per vehicle of 78.12% and a direct pass
rate of 80.64%.
Takeuchi has introduced a quicker set-up technique called the single-
minute exchange of dies. Simultaneously to tackle the non-availability
of components, about 160 vendors who do not meet strict parameters
of quality, cost, productivity, and delivery will be dropped.
To increase the speed and quality, Maruti has 120 robots now
compared to only half a dozen of robots five years ago. It is striving to
reach its benchmark on every parameter by the year 2004-2005.

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http://en.wikipedia.org/wiki/Plant_layout_study
http://pino.univalle.edu.co/~juanp77/ARTICULOS%20PLANTA
S/ARTICULOS/GRUPO%2009%20-
MONTA%D1O%20NEXT%20GENERATION%20FACTORY%20L
AYOUTS.pdf
http://www.cbpa.ewu.edu/~pnemetzmills/OMch5/OMFac.html