This document provides an overview of plant layout types including process layout, product layout, and cellular layout. It discusses the key characteristics and advantages and disadvantages of each layout type. Process layout groups similar machines together while product layout arranges machines in the production sequence. Cellular layout uses group technology to produce parts with similar requirements. Selection of the optimal layout depends on factors like production volume and part commonality. Methods for layout analysis and design covered include travel charts, relationship charts, and systematic layout planning.

1. OPERATIONS
MANAGEMENT
KMBN205
MBA II Semester
by
Dr. Meenakshi Tyagi
(MBA, M. Com, M.A. Eco, Ph.D. UGC NET)
KIET School of Management

2. Contents
 Plant Layout
Types of Plant Layout

3. Plant Layout
• Plant layout refers to the arrangement of machinery,
equipment, material handling and other facilities for
achieving quickest and smooth production by making
proper utilization of available resources.

4. Types of plant layout
Process layout
Product layout
Combined layout
Static product layout project layout
Cellular layout
Job-shop layout

5. Process Layout
• It is also called functional layout. Under this layout all
machines performing similar tasks are grouped at one
location.
• Advantages –
• It eliminates the duplication of machines and enables the
optimum use of installed capacity.
• It facilitates the flexibility in production. Different products
can be manufactured without the changes in the
arrangement of machines.
• The production capacity is not arranged in rigid
sequence .
• Breakdown of one machine does not interrupt the entire
production flow.
• Specialization in supervision becomes possible

6. Process Layout for a Machine Shop

7. Disadvantages
• Due to lack of straight line sequence of production, it is
impossible to maintain the line balancing in production.
So the problems of bottleneck and waiting and idle
capacity arise.
• The inspection cost is high. Due to frequent changes in
the machine setup, inspection is required at each
process unit.
• The cost of material handling increases due to long-
routing and back tracking b/w the processes.
• The cost of supervision increases due to specialist
supervisors and more no. of supervisors are required.
• The production planning and control becomes difficult
due to complexities arising in routing , scheduling,
dispatching and follow-up
• More space is required for internal storing and provision
for the expansion of the particular process section.

8. Product Layout
• In this layout machines are arranged in
the sequence as required by the
particular product. All machines as
required to balance the particular product
line are arranged in a sequential line but
not necessarily in the straight line. It is
also known as product line layout. The
best example of this layout can be seen
in motor- car industry, winemaking
industry and paper manufacturing.

9. Product Layout for Wine Manufacturer

10. Advantages
• Reduced material handling cost due to straight-
line production flow
• Shorter operating cycle due to shorter and
speeded movement of materials
• Max. utilization of machine and labor through
developing proper balance b/w them.
• Effective control over production with reduced
supervision by generalists supervisors.
• Effective quality control with reduced inspection
points. It does not require frequent changes in
machine set-up.
• Max. use of space due to straight production
flow and reduced need of interim storing
• It is relatively easy to control

11. Disadvantages
• Heavy investment
• Due to straight line sequence and
fixed rated capacity it is highly
inflexible
• The breakdown of one single machine
in the line interrupts the entire
production flow
• The benefits of specialized
supervision is not possible

12. Difference b/w product and process layout
Lower total material handling cost
Lower total production time
Avoidance of bottlenecks
Better production control
Less floor area required per unit of
production
Less work in process
Simpler production control
Greater incentive for group of workers
to raise level of performance .
Lower total investment in
equipment and machinery
Greater flexibility in production
Better and more efficient
supervision possible through
specialization
Better utilization of men and
machine
Capability to handle breakdown of
equipment by transferring work to
another machine
Full utilization of plant
Greater incentives to individual
workers to raise the level of their
performance

13. When to use Product Layout
• One or few standard products
• Large volume of production of each item over a
considerable period of time
• Possibility of carrying out effective motion and
time studies and setting accurate standards
• Minimum inspection required during the
operations
• Little or no occasion to use same machine
for more than one operation

14. When to use Process Layout
• Many types or styles of products
• Relatively low volume of production of
individual items
• Many inspections required during a
sequence of operations
• Adequate motion and time studies difficult
or impossible to make
• Frequent need for using the same
machine or work station for two or more
different operation

15. Mixed or Hybrid Layout
• Generally a combination of layouts is used.
Typically, a process layout is combined with
a product layout. For example, in
refrigerator manufacturing, a process
oriented layout is used to produce various
parts ( metal forming, welding, heat
treatment). For final assembly of the
refrigerator, all these functions are placed in
a product- oriented layout.

16. Cellular Layouts
• Cellular Manufacturing
– Layout in which machines are grouped into a cell that
can process items that have similar processing
requirements. A product layout is visible inside each
cell.
• Group Technology
– The grouping into part families of items with similar
design or manufacturing characteristics. Each cell is
assigned a family for production. This limits the
production variability inside cells, hence allowing for a
product layout.

17. A Group of Parts
Similar manufacturing characters

18. Cellular Layout
Process (Functional) Layout Group (Cellular) Layout
Similar resources placed
together
Resources to produce similar
products placed together
T T T
M
M M T
M
SG CG CG
SG
D D D
D
T T T CG CG
T T T SG SG
M M D D D
M M D D D
A cluster
or cell

19. Dimension Process Cellular
Number of moves
between departments
many few
Travel distances longer shorter
Travel paths variable fixed
Job waiting times greater shorter
Amount of work in
process
higher lower
Supervision difficulty higher lower
Scheduling complexity higher lower
Equipment utilization Lower? Higher?
Process vs. Cellular Layouts

20. Fixed-Position Layout
In a fixed-position layout, the project remains
in one place, and workers and equipment
come to that one work area. Examples of
this type of project are a ship, a highway, a
bridge, a house, and an operating table in a
hospital operating room.

21. Criteria for selection and design of Layouts
• Two of the major criteria for selecting and designing
layout are-
• Material handling cost
• Worker effectiveness

22. Material Handling
• Material Handling cost are minimized by
using mechanized material handling
equipments such as belts, cranes and
conveyors to automate product flows and
keeping the flows distances as short as
possible by locating the work stations for
sequential processing activities in adjacent
areas.

23. Worker Effectiveness
• Worker effectiveness is another important criteria in the
layout of facilities. Good layout provides workers with a
satisfying job and permit them to work effectively at the
highest skill level for which they are being paid.

24. Methods used for selecting the best
Layout
• Travel chart method
• Systematic layout Planning (SLP)
• REL

25. Travel Chart
• This is also known as from-to- chart. This method shows
the number of moves made between departments and
identifies most active department

26. To be cont……
 Suppose containers are moved one at a time
 Produce a from-to chart with the number of moves between
departments per week
Production Qty. Container
Product Routing Per Week Size
1 A-B-C-D-E 200 50
2 A-D-E 900 10
3 A-B-C-E 400 25
4 A-C-D-E 650 50

27. Relationship chart
 An activity relationship chart (ARC) is a tabular means of
displaying the closeness rating among all departments. In
an ARC there are six closeness ratings which may be
assigned to each pair of departments
 A – Absolutely necessary
 E – Especially important
 I – Important
 O – Ordinary closeness OK
 U – Unimportant
 X – Undesirable
 Assessed through interviews and meetings
 Can also construct activity relationship charts from flow data
by equating flow amounts to activity codes

29. Systematic Layout Planning
• Richard Muther is credited to introduce SLP. Further it
was developed by Francis and White (1974).

31. Thank
You