The document discusses various types of plant layouts including product-based, process-based, fixed position, flexible manufacturing systems, and cellular manufacturing, highlighting their advantages and disadvantages. It outlines how each layout affects production efficiency, supervision, and capital investment. Additionally, the document covers aspects of business promotion, company registration, capital subscription, and factors influencing optimal plant location.

1. PLANT LAYOUT
Manish Kumar
manishatmarketing@gmail.com

2. TYPESOF
LAYOUT
 PRODUCT BASED LAYOUT
 PROCESS BASED LAYOUT
 FIXED POSITION LAYOUT
 FLEXIBLE MANUFACTURING SYSTEM
 GROUP TECHNOLOGY/CELLULAR
MANUFACTURING LAYOUT
 COMBINED BASED LAYOUT

3. PRODUCT
LAYOUT
 Also called straight-line layout, line processing layout,
flow like layout or layout for serialized manufacture.
 Product layout involves the arrangement of machines in
one line, depending upon the sequence of operations.
 Example: Paper mill

4. Advantagesof
ProductLayout
 Regulation of production
 Scientific materials handling
 Mo bottleneck in production
 Lesser supervision
 Greater possibility of space utilization

5. Disadvantages
ofProduct
Layout
 Heavy capital expenditure
 High overhead charges
 Demerits of breakdown
 Inflexibility
 Additional output not possible
 Lack of specialised supervisors

6. ProcessLayout
 Also called the functional layout or job shop layout.
 In process layout, machines and services are grouped
on a functional basis and operations of the same type
are performed in the same area.

7. Usageareasof
ProcessLayout
 Expensive machinery is required
 Production involves a large variety of items having
limited volume in each type
 Operations are not balanced in time
 When the demand is small and intermittent.

8. Advantagesof
processlayout
 Lower capital investment
 Greater flexibility
 Specialization
 Effective supervision
 No disruption in work schedules
 Lower overhead costs

9. Disadvantages
ofProcess
Layout
 Complexity of production planning and control.
 Frequency of inspection.
 Difficulty of materials handling.
 Greater floor area.
 Longer processing time.
 Larger stock of materials in process.

10. Fixedposition
layout
 Fixed position layout involves moment of men and
machines to the product which remains stationery.
 This type is followed in the manufacture of bulky and
heavy products such as locomotives, ships, boilers
aircraft

11. Advantage
 Men and machines can be used for variety of
operations producing different products.
 The investment on layout is small.
 The worker identifies himself with the product and
takes pride in it when the worker is complete.
 The high cost of and difficulty in transporting a bulky
product are avoided.

12. Disadvantage
 It usually involves a low content of work-in progress.
 There appears to be low utilisation of labour and
equipment
 It involves high equipment handling costs.

13. Flexible
Manufacturing
System
 FMS is a computer-controlled system.
 It contains several work stations, each geared to
different operations.
 Workstations machines are automated and
programmable.
 Automated materials-handling equipment move
components to the appropriate workstations.
 Then, it is moved onto the pre-programmed machines
that slect, position, and activate the specific tools for
each job.
 Once the machines has finished one batch, the
computer signals the next quantity or component, and
the machine automatically transferred to the next
workstation in its routing.

14. Advantages
 FMS are regarded as one of the most efficient methods
to employ in reducing or eliminating in manufacturing
industries.
 FMS brings flexibility and responsiveness to the
manufacturing floor.
 Lower work in process inventerories
 Reduced throughput time and its variability
 Improved manufacturing control.
 Improved quality and reduced scrap rate.
 Reduction of floor space used.
 Better status monitor of machines, tools and material
handling devices.

15. Disadvantage
 Limited ability to adapt to changes in product.
 Substantial preplanning and capital.
 Tooling and fixture requirement.

16. Cellular
Manufacturing
(CM) Layout
 In Cellular manufacturing, machines are gropuped into
cells and the cells function somewhat like a product
layout within a larger shop or process out. Each cell in
the cm layout is formed to produce a single parts
family- a few parts, all with common characterstics,
which usually means that they require the same
machines and have similar machine settings.

17. Advantagesof
group
technology
 Reduced flow times.
 Process time saves
 Inventory reduction
 Produce variety of products
 Rush order can be purchased
 Job satisfaction

18. Disadvantage
 High cost
 Not suitable for large variety of products
 Impractical
 Difficult to conceive

19. Combined
layout
 The application of the principles of prodyct latout,
process layout, or fixed location layout in their strict
meanings is difficult to come across. A combination of
the product and process layouts, with an emphasis on
either, is noticed in most industrial establishments.

20. Criteriaofgood
layout
 Maximum flexibility
 Maximum coordination
 Maximum use of volume
 Maximum visibility
 Maximum distance
 Minimum handling
 Inherent safety

21. Promotion
 “Promotion may be defined as the process of organising
and planning the finance of a business enterprise
under the corporate form”
L.H. Haney
 “Promotion may be defined as the discovery of business
opportinities, and the subsequent organisation of
funds, property and managerial ability into a business
concern for the purpose of making profits therefrom. “

22. Aspectsof
promotion
 Promotion of a business involves two types of decisions.
 The entrepreneur will have to select a business idea
after evaulating it properly and then making efforts to
procure various inputs needed to start the business.
 Second aspects involves the completition of various
formalities which may be required under various laws
or states.

23. Entrepreneurial
decisions
regarding
promotion
 Discovery of business idea
 Evaulating the idea
 Selection of idea
 Assembling of various inputs

24. Promotionof a
company
 A joint stock company requires a number of legal
formalities before it can be set up. It has to deal with
the following aspects:
 Registration or incorporation
 Capital subscription
 Commencement of business.

25. Registrationor
incorporation
 Application for approval of name
 Prepartion of memorandum of association
 Preparation of article of association
 Preparation of other documents

26. Capital
subscription
 After going therough the incorporation formalities, the
next stage will be to raise funds.
 A public company cannot commence business unless
minimum subscription as stated in the prosepctus has
been subscribed. The amount of minimum subscription
is fixed by taking into account the following
requirements:
 Amount required for purchase of property
 Amount needed for payment of prliminary expenses
 Repayment of money borrowed by the company
 Requirement for working capital
 Amoiunt required for any other expenditure stating the
nature and purpose thereof and estimated ampount in
each case.

27. Plantlocation
 Plant location decision includes to choose an ideal
plant location is one where the cost of the product is
kept to mimimum with a large market share, the least
risk and maximum social gain.

28. Importanceof
PlantLocation
 Accessibility
 Economies of scope
 Aid to technology and cost
 Competitive advantage
 Static nature

29. Factors
infleucing
location
 Raw materials availability
 Nearness to market
 Availability of labour
 Fuel and power
 Transport facilities
 Soil and climate
 Personal factors
 Government policy
 Financial facilities
 Industrial atmosphere
 Political and economic conditions
 Taste and prefernce of people