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Presented By-
Name- Harshrajsinh B Kher
Enrollment No. 170305218002
M.tech (I.E) 4th Semester
Internal guide: Asst. Prof. Jalpa Zalawadia
Asst. Prof. Prashant Khanna
External Guide: Mr. Neel Shah
Plant Layout Optimization in Crane
Manufacturing Industry Using CRAFT
And SLP
Content
 Abstract
 Company Profile
 Introduction
 Problem definition
 Aim and Objectives
 Literature Survey
 Methodology
 Observation and Analysis
 Result
 Conclusion
 Future Scope
 References
Abstract
 To improve the productivity of any organization, Plant layout plays a major
role.
 Plant layout design is the most effective arrangement of physical facilities to
allow the greater efficiency.
 In this presentation present that , CRAFT is used for improvement of existing
layout in crane manufacturing industry.
 After all literature and collection of data gather, Plant layout is critically studied
and found Distance matrix, cost matrix, flow matrix by perceived flow of
material in plant layout.
 Existing layout material handling cost was found.
 After interchanging pair wise departments, it was found that material handling
cost reduced.
 Further, Apply Space-relationship analysis of SLP to utilize space and it was
found that material handling cost was further reduced.
Company Profile
 Founder – Mr. Dharamshi.B.Shah
 Crane manufacturing unit namely known as “OSWAL Machinery Ltd”
 Located in Anand, Gujarat.
 Providing Material handling related solution.
 Product:
Material handling equipment, Conveyors , etc.
 Make on customer demand.
 Successfully delivered end to end Material handling solution across industry
spectrum covering Cement, Steel, Engineering, Infrastructure and others.
 Execute small and large orders on schedule.
Introduction
• One of the main goals of manufacturing system is the maximization of its
productivity.
• Depend upon factor like complexity of the product made, quality of the raw
material, complexity of the manufacturing process, arrangement of work station.
• The challenge of determining best arrangement of workstations is one of the
element has a great impact on system performance.
•It is known as “ Facility layout Problem”.
•The designing of a new plant layout means to achieve remarkable improvement
in efficiency, manufacturing cost, lead time, travelling distance and overall
production cost and it is done by reallocating the equipment’s positions in the
layout.
 Work Process in a company:
Fig. Work process in a company.
 Component used in Crane manufacturing:
Fig. EOT Double girder crane
 Hook – To lifted load which connects to the hoist.
 Hoist – what makes the lift and holds , raises , or lowers the load using wire
rope. It can be manually powered, with electricity or with pneumatic.
 Trolley – supports the hoist and moves horizontally along the crane bridge , to
position the hoist and hook , prior to picking up and lowering a load. It can be
design in an under running or top running design:
 Bridge – load-bearing beam that runs the width of the building. Primary
structural component connects the runways and moves the hoist forward and
backward using a trolley.
 Runway – what the bridge crane travels on to move the crane up and down the
bays.
 Runway rail or tracks – Rail supported by the runway on which the crane
travels.
 End truck – Located on either side of the bridge, it move the bridge up and
down the runway utilizing a series of wheels that ride on the rail.
 Bumpers – design to absorb crane’s energy and reduce impact bringing the
crane to rest in a controlled manner and minimizing forces when the crane
reaches the end of its travel.
 Controls – typically mounted in a panel on the crane or hoist and the pendant
or remote radio console allows the operator to run the crane. It’s operate drive
and hoist motors and can control VFDs to control hoist speed for precise load
positioning.
 Electrification – Insulated conductor bars or festoon systems bring power to
the crane from the building.
 Company is manufacturing a Component like Bridge structure and Hoist.
 Other raw material or component is pursuing from market.
Table. List of component
•Manufacturing process of component
 For structure:
Fig . Manufacturing process of crane structure
 For Hoist
Fig. Manufacturing process of hoist
 Plant layout???
- Floor Plan of the physical facilities which are used in Production.
- refers to the generation of alternatives plans for the arrangement of physical
facilities and selects one which minimizes distance between departments.
 Objectives of good plant layout:
1. Minimize investment of equipment
2. Minimize production time
3. Utilization of existing space most effectively.
4. Minimize material handling cost.
 Classification of layout:
(1) Process Layout
(2) Product Layout
(3) Group Layout
(4) Fixed Position Layout
 Oswal Used combinational Layout.
Problem definition
 By observing , I found that in crane manufacturing plant .
 There are several type of problems present :
Fig. Initial layout with Material flow and process
Fig. Press/Drill/Painting area
 Problems:
1. High Material Handling Cost.
2. Size of Plate cutting area and Dispatch area, Press/Drill/Painting area,
Sheare/Bending/Drill Machine area is more.
3. Size of Assembly area or Fabrication area is small.
4. Flow is not smooth because of obstacle present on way of transportation in
Assembly or Fabrication area.
5. Entering of raw material from Receiving area, Lathe Machine Department and
dispatching of finished product from same gate in Assembly or Fabrication
area, which will increase complexity in process.
Aim And Objectives
 Aim:
To Improve existing layout of Crane manufacturing Industry using CRAFT and
SLP.
 Objectives:
 To minimize material handling cost by minimizing distance travelled by
material between Sheare/Bending/Drill/Machine area and Press/Drill/Painting
area.
 To utilize of space by reducing size of Plate cutting area, Sheare/Bending/Drill
Machine area, Press/Drill/Painting area and increasing size of Assembly or
Fabrication area.
 To provide a smooth material flow by removing obstacle present on the way of
Transportation in Assembly or Fabrication area.
 To reduce complexity in process by providing Separate gate for entering raw
material and dispatching finished product in Assembly or Fabrication area.
 To suggest a new optimum layout.
Literature Survey
17
1
4
1
International JournalsNational JournalsInternational conferenceNational conference
Research paper No.of.paper
Sr.
No.
Author
Name
Title Work Description Publication
Year
Publication
Name
1 Vivek A
Deshpande et al
Facility Layout
Design By
CRAFT technique
• They are found high material
handling cost, unutilization of
space in existing facility layout.
•They are used CRAFT for
improving existing facility
layout and find optimum new
layout.
•They are reduced material
handling cost from Rs. 85914/
annum to Rs. 8660.7/ annum.
•They are improved existing
facility layout by minimizing
89.92% material Handling
cost.
2005 Proceedings of
COMPUTI-ME
Sr.
No.
Author
Name
Title Work Description Publication
Year
Publication
Name
2 Bobby John
et al
Analysis and
optimization of
plant layout using
relative allocation
of facilities
technique
• Improved existing layout of
Foundary .
•By using CRAFT, They are
proposed new best layout.
•They are analyzed that
model by using ARENA
software.
•The utilization of the layout
is increased by changing the
position of equipment.
•They are reduced material
handling cost from 3955 to
3905.
•They are suggested that the
production rate and the
utilization of machines
depend on how well the
various machines, production
facilities and employee’s
amenities are located in
plant.
2013 International
Journal of
Emerging
Technology and
Advanced
Engineering
Sr.
No.
Author
Name
Title Work Description Publication
Year
Publication
Name
3 Ameha
Mulugeta et al
Computerized
facilities layout
design
•They are used CRAFT
algorithm for improving
layout of Kotebe Metal tools
factory.
•They are used CORELAP
algorithm for comparison with
CRAFT algorithm.
•They are reduced material
handling cost from 4886 birr
per month to 3648 birr per
month(25%).
•By using CORELAP they
are found material handling
cost 3806 birr per month.
•Further they are used
CRAFT for improvement of
layout which obtained by
CORELAP.
•By using CRAFT, They are
reduced 3721 birr per
month material handling
cost.
2013 Journal of EEA
Sr.
No.
Author
Name
Title Work Description Publication
Year
Publication
Name
4 Bordoloi M. P.
et al
Modification of an
Existing Layout
of a Production Line
Based on Distance
Function
•They are used Distance
function to improve existing
layout of soft drink refilling
company.
•By using Distance
function, They are reduced
conveyor length from
42.7m to 34.5m.
•They are reduced bottle
travelling time from 3.36
min to 2.65 min.
•They are reduced
material handling cost
from Rs.152.04 per day to
Rs. 102.1 per day(32%).
2014 The International
Journal Of
Science & Techno
ledge
Sr.
No.
Author
Name
Title Work Description Publication
Year
Publication
Name
5 Anant dhawan
et al
Layout Design And
Evaluation Using
Computer
Relative Allocation
Of Facilities
Technique
•They are found high material
handling cost, unutilization of
space, low production rate in
existing layout.
•By applying CRAFT, They
reduce material Handling
cost from Rs. 68000 to Rs.
37000.
•Also Reduced distance
travelled from 403 M to
374 M.
•They are proposed new
optimum layout using
CRAFT.
2014 International
Journal of
Mechanical And
Production
Engineering
Sr.
No.
Author
Name
Title Work Description Publication
Year
Publication
Name
6 Hari
Prasad.N
et al
A Typical
Manufacturing Plant
Layout Design Using
CRAFT
Algorithm
•They are designed new layout
using CRAFT.
•They are obtained distance
matrix by converting layout
diagram in to STEP file format
Which is taken as input to java
program and output obtained as
a distance matrix.
•They are obtained material
handling cost in five different
periods .
•They are reduced 54.56%,
56.50%, 58.56%, 58.31%,
61.84% in material handling
for different five periods.
2014 Procedia
Engineering
Sr.
No.
Author
Name
Title Work Description Publication
Year
Publication
Name
7 Mr. Deepak
Kumar et al
Study and
Redesign of the
layout using
facility planning
tools.
•They are focused to redesign
the existing layout of the
administrative floor to reduce
the flow cost.
•They are used CRAFT and
CORELAP methodology.
•By CRAFT, They are reduced
cost from 25810.05 to
23124.38.
•By using CORELAP, they are
reduced cost from 25810.05
to 12051.08.
2014 International
Journal for
Scientific
Research &
Development
Sr.
No.
Author
Name
Title Work Description Publication
Year
Publication
Name
8 Dileep Pandalai
et al
Redesign of
Existing Layout of
tiller
Manufacturing
industry to reduce
material handling
cost
•They are focused on redesign
of existing layout of tiller
manufacturing industry.
•They are used CRAFT for
improve of existing layout in
different three stages.
•Stage- 1 : They are find that
present layout is the best layout
when all the parts required for
the production are manufactured
in the factory.
• Stage- 2: They are find that
when most of the parts are
outsourced, there is a need to
redesign the layout .
•They are reduced material
handling cost from 1595 to
1035.
•Stage- 3: By using ARENA,
They are stimulated the present
model and found blockage in
the production.
2015 International
Journal of
Science
Technology &
Engineering
Sr.
No.
Author
Name
Title Work Description Publication
Year
Publication
Name
9 S. Amal et al Improvement of
Plant Efficiency
using
Optimization
Techniques in a
Large Scale
Foundry Industry
•They are conducted study at
ABC Ltd .
•They are proposed new optimum
layout by using CRAFT
algorithm.
•They are also applied Group
technology in new layout.
•By ARENA, they are simulated
new model of layout.
•They are reduced distance
travelled from 3063 to 1414
•They are increased average
machine utilization from
46.68% to 72.03%.
•Also reduced WIP from 8 to 6.
•Also decreased transportation
cost from 106.64 to 93.74.
2015 International
Journal for
Scientific
Research &
Development
Sr.
No.
Author
Name
Title Work Description Publication
Year
Publication
Name
10 Leonardo
et al
Comparing
alternative plant
layouts based on
CRAFT
And BLOCPLAN
algorithms
•They are focused on
improving existing layout of
FSCM manufacturing
Indonesia is a company
specialized in fabricating
various types of motorcycle
chains.
•They are used CRAFT and
BLOCPLAN algorithms for
improvement and comparing
them.
•By using CRAFT, they are
reduced 3.5% flow distance
from existing layout.
•By using BLOCPLAN ,
they are reduced flow
distance from 463.1 meters
to 434.62 meters(6.2%).
•They are reduced MH cost
from 1,047,678.49 per day
to 1,035,636.87per
day(1.15%) by CRAFT.
•They are reduced MH
Cost from 1,047,678.49 per
day to 1,022,419.91 per
day(2.4%) by
BLOCPLAN.
2015 Proceeding 8th
International
Seminar on
Industrial
Engineering and
Management
Sr.
No.
Author
Name
Title Work Description Publication
Year
Publication
Name
11 Vivek
A
Deshpande
et al
Plant layout
optimization
using
CRAFT and
ALDEP
methodology
•They are improved existing
layout of RMG alloy steel
industry in bharuch.
•They are found problem like
material handling consume lots of
effort , high material handling
cost.
•By using CRAFT, They are
improved only 0.10% in MH
cost for the existing layout.
•Further they are used ALDEP .
•By ALDEP, They are improved
23% of MH Cost.
•They are developed optimum
layout by ALDEP.
2016 Productivity
Journal by
National
Productivity
Council
Sr.
No.
Author
Name
Title Work Description Publication
Year
Publication
Name
12 Vandit Hedau
et al
Improvement of
Plant layout using
CRAFT
•They are focus on improving
existing layout of industry
located in Madhya Pradesh .
•They are choose density based
criteria to optimize overall
performance of organization
layout.
•They are choose CRAFT
algorithm for solved complexity
on excel.
•They are reduced
transportation cost among
department from Rs. 31680 to
Rs. 22894.
2016 IJSART
Sr.
No.
Author
Name
Title Work Description Publication
Year
Publication
Name
13 Kiran
Phadatare
et al
Plant Layout
Optimization using
CRAFT Algorithm
supported by a Virtual
Factory created as an
Implementation of
Digital Manufacturing
•They are used CRAFT
algorithm for proposed new
layout.
•They are used DELMIA
for creating virtual digital
factory.
•By using CRAFT, they
are reduced 25-28%
material handling cost.
•They are reduced 18-
20% lead times.
•They are increased 15-
20% production
efficiency.
•They are reduced 10-
15% in labor requirement.
•They are suggested that
Properly locating various
machines, production
facilities and employee
amenities in the industry
leads to better utilization of
the machines and higher
production rates .
2016 International
Journal of
Emerging
Technology and
Advanced
Engineering
Sr.
No.
Author
Name
Title Work Description Publication
Year
Publication
Name
14 M.Rajesh
et al
Plant layout
optimization of oven
manufacturing unit
using CORELAP
algorithm
•They are used CORELAP
algorithm to proposed new
layout.
•They are found 43.20%
surplus area and material
handling cost
Rs.2588.2/month in
existing layout.
•By using CORELAP
algorithm, They are
reduced material handling
cost from Rs.2588.2/month
to Rs.2548/month.
•They are minimized
surplus area from 43.20%
to 8.83%.
2016 International
Journal of
Research in
Engineering and
Technology
Sr.
No.
Author
Name
Title Work Description Publication
Year
Publication
Name
15 Wilson R.
Nyemba et al
Optimization of a
Plant Layout and
Materials
Handling System
for a Furniture
Manufacturing
Company
•They are improved plant layout
of Furniture manufacturing
company in Harare, Zimbabwe.
•They are used CRAFT for
redesign new optimum layout.
•They are reduced total
distance travelled
meters/month from 143497 to
74444.
•They are reduced material
handling cost from 24107$ to
12506$ in a month.
2016 Proceedings of the
World Congress
on Engineering
Sr.
No.
Author
Name
Title Work Description Publication
Year
Publication
Name
16 Ranjith R
Hombal et al
Improvement of
process and plant
layout for metro
coach using
CRAFT
methodology
• They are improved existing
plant layout of metro coach
manufacturing industry.
•They are proposed new layout
by using CRAFT methodology.
•They are suggested that from
the implementation of new
layout the organization can
save 21.1% cost compared
to the present transportation
cost.
2017 International
Research Journal
of Engineering
and Technology
(IRJET)
Sr.
No.
Author
Name
Title Work Description Publication
Year
Publication
Name
17 Manoj
Shanthpure
et al
Designing Facility
layout and effective
material handling for
a ceramic insulator
plant
They are focused on
designing new layout of
ceramic insulator plant
located in Bangalore.
They are used SLP for
improvement of layout.
They are designed three
proposed layout.
Layout-1: In this layout,
They are reduced material
handling cost from 2555.2
to 1343.71 and minimized
distance from 423.9 m to
221.31 m.
Layout-2:In this layout,
They are reduced material
handling cost from 2555.2
to 1343.71 and minimized
distance from 423.9 m to
221.31 m.
Layout-3: In this layout,
They are reduced material
handling cost from 2555.2
to 1138.44 and minimized
distance from 423.9 m to
240.96 m.
2017 International
Research Journal
of Engineering
and Technology
Sr.
No.
Author
Name
Title Work Description Publication
Year
Publication
Name
18 Mr. Virendra
Patil et al
Case study of
Improvement
algorithm of layout
design using
CRAFT algorithm
• They are focused on
redesign new layout.
•They are suggested that
CRAFT is a best methodology
for improve existing layout.
•They are suggested that
properly locating various
machine, Production facilities,
and employee amenities in the
industry leads to better
utilization of the machines and
higher production rates.
2017 International
Journal of
Engineering
Technology
Science and
Research
Sr.
No.
Author
Name
Title Work Description Publication
Year
Publication
Name
19 Vishnu
Narayanan
et al
Optimization Of
Manufacturing
Plant Layout
Design In Sifl
Using Craft
•They are improved plant
efficiency and machine
utilization by improving
existing layout of Steel &
Industrial Forgings Ltd.
•They are found high Material
Handling cost and
Unutilization of space in
existing layout.
•By using CRAFT, they
proposed new optimum layout.
•They are reduced material
handling cost of 151 from
176.
•By using ARENA , they are
improved machine utilization
from 69% to 73%.
•They are suggested that
production rate and the
machine utilization depend on
how well the various machines,
facilities and employee’s
amenities are located in a
plant.
2017 International
journal of current
engineering and
scientific research
(IJCESR)
Sr.
No.
Author
Name
Title Work Description Publication
Year
Publication
Name
20 Olusegun
Kazeem
Lekan et al
Analysis of Plant
Layout Design for
Operational Efficiency
with
Craft Algorithms
•They are improved
existing layout of pulley
factory .
•They are proposed new
optimum layout by using
CRAFT algorithms.
•They are reduced
material handling cost
from 50 Thai-Bayt to 34
Thai-Bayt.
•They are improved 32%
in efficient operation and
effective production by
improving existing layout.
2017 OECONOMICA
Sr.
No.
Author
Name
Title Work Description Publication
Year
Publication
Name
21 M.Vykunta
Rao et al
Optimization Of
Plant Layout
Design Using Craft
Technique
•They are suggested CRAFT
is a best methodology for
improving existing layout.
•They are proposed new
machine layout by CRAFT
algorithm.
•They are find initial
travelling cost in five periods
Rs 15050/-, Rs 14310/-, Rs
15880/-, Rs 15345/-
,Rs11530/- respectively.
•By CRAFT they are
reduced travelling cost by
15, 14, 6,11 and 6% for the
five periods.
2017 International Journal
of Engineering,
Science and
Mathematics
Sr.
No.
Author
Name
Title Work Description Publication
Year
Publication
Name
22 Damir Belic et
al
Optimization of the
Plant Layout in the
Production of the
Special
Transformers
- Case Study
• They are focused on
optimization of the plant
layout in the production of
the special transformer.
• They are used Bloch-
Schmigalla triangular method
for plant layout optimization.
•They are reduced
distance from 897 distance
units to 787 distance unit.
•They are minimized
material handling cost from
12554 to 9787 which means
improved 22% of existing
layout.
2018 FME Transactions
Sr.
No.
Author
Name
Title Work Description Publication
Year
Publication
Name
23 Chayut
Bunterngchit et al
The Application
of CRAFT
Algorithm for
Increasing
Material Flow
Efficiency: A Case
Study of Wooden
Door Panels
Manufacturing
Factory
•This research aimed to
apply plant layout techniques
in order to improve the
layout of a wooden door
panels manufacturing
factory.
•By Using CRAFT, the
material handling cost was
reduced from THB
3356.73 per day to THB
3016.29 per day( 10.14%).
•Total distance of material
handling was reduced
from 134376.5 meters per
day to 119361.5 meters per
day(11.17%).
2018 Proceedings of
International
Conference on
Technology and
Social Science
Find From Literature survey
 There are different methodology adopted by researcher like BLOCPLAN,SLP,
CRAFT,ALDEP,CORELAP.
 Systematic Layout procedure(SLP) is a manual method which is used for Small
manufacturing unit also its take a large time for improvement.
 This disadvantage of SLP is overcome by Computerized method.
 ALDEP and CORELAP are Computerized method. Both are constructive type
algorithm.
 CRAFT is a used for improvement for existing layout facility in any
organization or manufacturing company.
Methodology
Layout Design Procedure:
1. Manual Method: Travel Chart, SLP
2. Computerized Method: Constructive type ( ALDEP, CORELAP )
Improvement type ( CRAFT )
 Computerized Relative Allocation of Facilities Technique (CRAFT)
• Developed by Armour and Buffa.
• Widely used than ALDEP and CORELAP.
• Improvement type algorithm.
• Start with an initial layout and improves layout by interchanging department pair
wise so the transportation cost is minimized.
• Heuristic algorithm.
 “It is a technique designed for solving a problem more quickly when classic
methods are too slow or for finding an approximate solution when classic methods
fail to find any exact solution.”
 CRAFT requirement:
1. Initial layout
2. Flow data
3. Cost per unit distance
4. Total number of such departments.
5. Fixed departments
Number of such departments
Location of those departments.
6. Area of departments.
CRAFT algorithm
1. Input.
2. Obtain the departments centroid.
3. Calculate the inter department rectilinear distance.
4. Calculate the initial cost of layout by multiplying flow matrix,
cost matrix , distance matrix.
5. CRAFT then consider all the possible two ways or three way
department based on Common border or equal area criterion and identifies the
best “exchange”.
6. Update the layout and calculate the new department centroid.
7. The above procedure is repeated until no further reduction in the cost can be
Obtained.
 Systematic Layout Planning Procedure (SLP)
 An organize approach developed by Muther.
 Received considerable publicity due to the success derived from its application
solving a large variety of layout problems.
 Referred to as systematic layout planning(SLP).
 From the figure, clear that once the appropriate information is gathered, a flow
analysis can be combined with an activity analysis to develop the relationship
diagram.
 The space relationship diagram is constructed by combining space
considerations with the relationship diagram.
 Based on the space-relation diagram, modifying considerations and practical
limitations, a number of alternative layouts are designed and evaluated.
Fig. Systematic layout planning procedure
 Collected Data:
1. Initial layout.
 I measured all area in meters by using Freemans open reel fibre measuring
tape.
Fig. Freemans open reel fibre measuring tape
 I prepared layout in AUTOCAD 2018 Shown in Figure 9.
Fig. Initial Layout
2. Area of department
From the Initial layout I Prepared the list of department area.
Table. List of Area
3. Total Number of department: 13
4. Flow Matrix
 For number of trip per day I need a data from Inward and outward register.
From the colour and non consumable store’s inward register I obtain how many
trips or delivery of material is received from receiving area to receiving store
(Color and non consumable store and Electrical store , Fabrication area) per
day.
 I take in consider maximum trip per day in a month.
7
14
19
17
14 13
9 9 9
14
6
27
11
14
8
14
29-Apr-17
31-May-17
30-Jun-17
31-Aug-17
30-Sep-17
31-Oct-17
30-Nov-17
30-Dec-17
31-Jan-18
16-Feb-18
31-Mar-18
26-Apr-18
31-May-18
30-Jun-18
31-Jul-18
30-Aug-18
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
No.of trip
No.of trip
Fig. No. of trips
 From the above observation, I consider average 14 trips. From those trips I
obtain how many trips required for unloading material by Workers.
 From the Inward material I take the following data for obtain trips between
Receiving area and other Receiving store like Color and Non consumable store
and Electrical store, Fabrication area which it is shown in below table.
Table. Material received by receiving store
 From the receiving area to Lathe department, I obtained trips from inward
material store which it is shown in table .
Table. Material inward register in Lathe department
 For obtained trips between Color and Non consumable store and other area like
Press/Drill/Painting area, Assembly area, I take data from material withdrawal
register which it used in Color and Non consumable store by store in-charge. It
is shown in table .
Table. Material withdraw from Color and Non consumable store
 For obtained trips between Machines tools store and Plate cutting area,
Assembly area, Press/Drill/Painting area and Sheare/Bending/Drill
Machine area, I take data from material withdrawal register in Machine
tool store which it is shown in table.
Table. Material withdraw from Machine tool store
 They haven’t material withdrawal register for Electrical store. Further I visited
assembly area for obtain material movement between Assembly area and other
department like office, electrical store, Press/Drill/Painting area, Plate cutting
area, Sheare/Bending/Drill machine area, Lathe department, Storage of ready
component/semi finished area and Dispatch area.
 Also I noted down time for trips between Sheare/Bending/Drill machine area
and Press/Drill/Painting area, Assembly area. Also I understand purpose of
tools by asking question to worker for obtaining flow material.
 Based on data I obtained flow matrix shown in below table.
Table. Flow matrix
5. Cost matrix
 For that cost matrix, I observed that Supplier is supplying raw material by
using different resources like Truck, Mini Pickup Truck. Its material handling
cost depends on Supplier, fuel consumption and Driver salary not on company.
But Material unloading from different resources depends on Company.
 I take following data from company:
 Worker Salary/Month – Rs.7500
 Working day – 26
 Worker Salary/Day – Rs.288.46
 Working Hours/Day – 8 Hr
 Worker Salary/Working hour – Rs.36.06
 Office Staff Salary & Store in-charge Salary/Month – Rs.12000
 Office Staff Salary & Store in-charge Salary/Day – Rs.461.54
 Office Staff Salary & Store in- charge Salary/Working hour – Rs.57.69
 From Receiving area to Color and Non consumable store:
 Worker required - 1 worker
 Trips – 15 trips required for unloading 21 units of material
 Worker Salary/Working hours – Rs. 36.06
 Equipment used for Time Measurement - Stop watch
Table. Cost analysis for trip from Receiving area to Color and Non consumable store
Cost / Trip = 1.293 ÷ 15= Rs. 0.086
 From Receiving area to Electrical store:
 Worker required - 2 worker
 Trips – 3
 Worker Salary/Working hours – Rs. 36.06
 Equipment used for Time Measurement - Stop watch
Table. Cost analysis for trip from Receiving area to Electrical store
Cost / Trip = 0.81 ÷ 3= Rs. 0.27
 From Receiving area to Lathe Machine Department:
 Worker required - 1 worker
 Trips – 4 trips for unloading material
 Worker Salary/Working hours – Rs. 36.06
 Equipment used for Time Measurement - Stop watch
Table. Cost analysis from Receiving area to Lathe Machine Department
Cost / Trip = 0.405 ÷ 4 = Rs. 0.10
 From Receiving area to Assembly or Fabrication area:
 From Receiving area to Assembly or Fabrication area, I observed that 4 trips
received from Receiving area. In 4 trips I observed that 10 trip is required for
unloading material. 10 Tonne EOT crane is used for unloading material.
 I take following data from the company:
 Working days – 26
 Working hours/Day - 8
 Unit consumed by 10 Tonne EOT Crane/Month – 3500 Unit
 Unit consumed by 10 Tonne EOT Crane/Working Day – 134.61 Unit
 Unit consumed by 10 Tonne EOT Crane/Working hours – 16.83 Unit
 1 Unit = Rs.8
 Equipment used for Time measurement – Stop watch
 Worker Salary/Working Hours – Rs.36.06
 Crane Operator Salary/Working Hours – Rs.36.06
 Also used some formula to found Material handling cost for unloading material
by crane.
 MH Cost = Crane operator Salary (for movement time) + Cost of unit
consumed by Crane (for movement time) + Worker Salary (for movement time)
 Crane operator Salary (for movement time) = Crane operator Salary/Working
Hours × Movement Time (Hr)
 Worker Salary (for movement time) = Worker Salary/Working Hours ×
Movement Time (Hr)
 Cost of unit consumed by Crane (for movement time) = Unit cost × Unit
consumed for movement time (Hr)
Table. Cost analysis for trips from Receiving area to Assembly or Fabrication area
 Crane operator Salary for movement time per trips - Rs.0.506
 Worker Salary for movement time per trips - Rs.0.506
 Cost of Crane for movement time per trips - Rs.1.89
 Total cost for unloading material per trips - Rs.2.902
 From Office to Color and Non consumable store:
 Trips – 5 trips
 Equipment used for Time Measurement – Stop watch
 Material carrying – list of raw material
Table. Cost analysis for trips from Office to Color and Non consumable store
Cost / Trips = 1.13 ÷ 5 = Rs. 0.226
 From Office to Electrical store:
 Trips – 2 trips
 Equipment used for Time Measurement – Stop watch
 Material carrying – list of raw material
 Office Staff Salary/Working Hours – Rs.57.69
Cost / Trip = 0.59 ÷ 2 = Rs. 0.295
Table. Cost analysis for trips from Office to Electrical store
 From Office to Lathe Machine Department:
 Trips – 1 trip
 Equipment used for Time Measurement – Stop watch
 Movement Time – 3 Min 40 Sec (0.0575 Hr)
 Office Staff Salary/Working hour – Rs.57.69
 Cost/Trip = [57.69 × 0.0575] ÷ 1 = Rs.3.32
 From Office to Assembly or Fabrication area:
 Trip - 3 Trips required for carrying Design Drawing sheet, Inspection sheet
 Equipment used for Time Measurement – Stop watch
Cost/Trip = 1.466 ÷ 3 = Rs.0.49
Table. Cost analysis for trips from Office to Assembly or Fabrication area
 From Color and Non consumable store to Office:
 Trip - 3 Trips required for carrying Register file and other file by Store-In-
Charge
 Equipment used for Time Measurement – Stop watch
 Store-In-Charge Salary/Working Hours - Rs.57.69
Cost/Trip = 0.7 ÷ 3 = Rs.0.23
Table. Cost analysis for trips from Color and Non consumable store to Office
 From Color and Non consumable store to Machine Tool Store:
 Trip - 3 Trips required for carrying Register file and other file by Store-In-
Charge
 Equipment used for Time Measurement – Stop watch
 Worker Salary/Working hours – Rs.36.06
Cost/Trip = 0.608 ÷ 3 = Rs.0.20
Table. Cost analysis for trips from Color and Non consumable store to Machine Tool store
 From Color and Non consumable store to Press/Drill/Painting area:
 Trips – 2 trips per day for carrying material by worker
 Equipment used for Time Measurement – Stop watch
 Worker Salary/Working Hours – Rs.36.06
Cost/Trip = 0.201 ÷ 2 = Rs.0.10
Table. Cost analysis for trips from Color and Non consumable store to Press/Drill/Painting area
 From Color and Non consumable store to Assembly or Fabrication area:
 Trips – 2 trips per day for carrying material like key, bearing
 Equipment used for Time Measurement – Stop watch
 Worker Salary/Working Hours – Rs.36.06
Cost/Trips = 0.31 ÷ 2 = Rs.0.155
Table. Cost analysis for trips from Color and Non consumable store to Assembly or Fabrication area
 From Electrical Store to Office:
 Trips - 2 trips required for carrying register file by Store-In-Charge
 Equipment used for Time Measurement – Stop watch
 Store-In-Charge Salary/Working Hours – Rs.57.69
Cost/Trips = 0.61 ÷ 2 = Rs.0.305
Table. Cost analysis for trips from Electrical Store to Office
 From Electrical store to Machine Tool store:
 Trips- 1 trip for carrying material by workers
 Equipment used for Time Measurement – Stop watch
 Movement Time – 0 Min 13 Sec
 Movement Time (Hr) – 0.0022 Hr
 Cost = Worker Salary per working hour × Movement Time (Hr)
= 36.06 × 0.0022 = Rs.0.079
 Cost/Trip = 0.079 ÷ 1 = Rs.0.079
 From Electrical store to Assembly or Fabrication area:
 Trips - 3 trips required by worker
 Equipment used for Time Measurement – Stop watch
 Equipment used for Material handling – Hydraulic Pallet truck
 Worker Salary/Working Hours – Rs.36.06
Cost/Trips = 0.84 ÷ 3 = Rs.0.28
Table. Cost analysis for trips from Electrical store to Assembly or Fabrication area
 From Machine Tool store to Office:
 Trips- 2 trips required for carrying register file or other material by Store-In-
Charge
 Equipment used for Time Measurement – Stop watch
 Store-In-Charge Salary/Working Hours – Rs.57.69
Cost/Trip = 1.08 ÷ 2 = Rs.0.54
Table. Cost analysis for trips from Machine Tool store to Office
 From Machine Tool store to Electrical store:
 Trips- 1trip required for movement of material by worker
 Equipment used for Time Measurement – Stop watch
 Movement Time – 0 Min 14 Sec
 Movement Time (Hr) – 0.0023 Hr
 Worker Salary/Working hours – Rs.36.06
 Cost = Worker Salary/ Working hours × Movement Time (Hr)
 = 36.06 × 0.0023 = Rs.0.083
 Cost/Trip = 0.083 ÷ 1 = Rs.0.083
 From Machine Tool store to Plate cutting area:
 Trips- 3 trips required for carrying material by worker
 Equipment used for Time Measurement – Stop watch
 Worker Salary/Working Hours – Rs.36.06
Cost/Trips = 1.76 ÷ 3 = 0.59
Table. Cost analysis for trips from Machine Tool store to Plate cutting area
 From Machine Tool store to Press/Drill/Painting area:
 Trips- 5 trips required for carrying material by worker
 Equipment used for Time Measurement – Stop watch
 Worker Salary/Working Hours – Rs.36.06
Cost/Trip = 0.75 ÷ 5 = 0.15
Table. Cost analysis for trips from Machine tool store to Press/Drill/Painting area
 From Machine Tool store to Assembly or Fabrication area:
 Trips- 19 trips required for carrying material by worker
 Equipment used for Time Measurement – Stop watch
 Worker Salary/Working Hours – Rs.36.06
Table. Cost analysis for trips from Machine Tool store to Assembly or Fabrication area
Cost/Trip = 2.81 ÷ 19 = Rs.0.15
 From Plate cutting area to Machine Tool store:
 Trips- 3 trips required for carrying material by worker
 Equipment used for Time Measurement – Stop watch
 Worker Salary/Working Hours – Rs.36.06
Cost/Trip = 2.01 ÷ 3 = Rs.0.67
Table. Cost analysis for trips from Plate cutting area to Machine Tool Store
 From Plate cutting area to Assembly or Fabrication area:
 Trips - 1 trip.
 Equipment used for Time measurement - Stop watch.
 Equipment used for material handling - Wheel cart
 Worker required - 3 Workers
 Movement Time – 4 Min 10 Sec
 Movement Time (Hr) – 0.068
 Worker Salary/Working hours – Rs.36.06
 3 Worker Salary/Working hours – Rs.108.18
 Cost = Worker Salary/Working hours × Movement time (Hr) = 108.18 × 0.068
= Rs.7.35
 Cost/Trip = 7.35 ÷ 1 = Rs.7.35
 From Sheare/Bending/Drill Machine area to Press/Drill/Painting area:
 I obtain 1 trip by using 10 Tonne EOT Crane and Hydraulic pallet truck.
 But here, I also observed that they are loading material on Hydraulic pallet
truck by using 5 tonne Ganity crane. But Movement of Crane in
Sheare/Bending/Drill Machine area doesn’t depend on Material handling cost
between two departments. So Here, I also observed that Hydraulic pallet truck
is used for carrying material from Sheare/Bending/Drill Machine area to
Assembly or Fabrication area.
 In Assembly or Fabrication area, they are used 10 Tonne EOT Crane. From
Assembly or Fabrication area to Press/Drill/Painting area, they are used
Hydraulic pallet truck for material handling.
 I measured movement time for each equipment by using stop watch.
 Unit consumed by 10 Tonne EOT Crane/Month – 3500 Unit
 Unit consumed by 10 Tonne EOT Crane/Working Day – 134.61 Unit
 Unit consumed by 10 Tonne EOT Crane/Working hours – 16.83 Unit
 1 Unit = Rs.8
 For Hydraulic pallet Truck:
 Movement Time for Pallet truck – 0 Min 34 Sec (0.0057 Hr)
 Worker Salary/Working hour – Rs.36.06
 Cost = Worker Salary/ Working hour × Movement Time (Hr)
 = 36.06 × 0.0057 = Rs.0.20
 For 10 Tonne EOT Crane:
 Movement Time – 2 Min 10 Sec (0.035 Hr)
 Unit consumed for Movement Time = Unit consumed per working hour×
Movement Time
= 16.83 × 0.035
= 0.58905 Unit
 1 Unit – Rs.8
 0.58905 Unit = Rs.4.71
 Crane Operator Salary (for 0.035 Hr) – Rs.1.26
 Worker Salary (for 0.035 Hr) – Rs.1.26
 For Hydraulic Pallet Trucks:
 Movement Time – 0 Min 39 Sec (0.0065 Hr)
 Cost = Worker Salary/Working hour × Movement Time (Hr)
= 36.06 × 0.0065
 Cost = Rs.0.24
 Hence, The Transportation cost from Sheare/Bending/Drill Machine area to
Press/Drill/Painting area is,
 C= Rs.0.20 + Rs.4.71+ Rs.1.26 +Rs.1.26+Rs.0.24
= Rs.7.67
 Cost for 1 trip = 7.67 ÷ 1 = Rs.7.67
 From Sheare/Bending/Drill Machine area to Assembly or Fabrication
area:
 Trips- 4 trips required for carrying material by worker
 Equipment used for Time Measurement – Stop watch
 Equipment used for Material handling – Hydraulic Pallet truck
Table. Cost Analysis for trips from Sheare/Bending/Drill Machine area to Assembly or Fabrication area
Cost/Trip = 0.79 ÷ 4 = Rs.0.20
 From Press/Drill/Painting area to Machine Tool store:
 Trips- 2 trips required for carrying material by worker
 Equipment used for Time Measurement – Stop watch
 Worker Salary/Working Hours – Rs.36.06
Cost/Trip = 0.28 ÷ 2 = Rs.0.14
Table. Cost analysis for trips from Press/Drill/Painting area to Machine Tool store
 From Press/Drill/Painting area to Sheare/Bending/Drill Machine area:
 Here, I observed that same procedure follow from Press/Drill/Painting area to
Sheare/Bending/Drill Machine area like as from Sheare/Bending/Drill Machine
area to Press/Drill/Painting area.
 I obtain 1 Trip from Press/Drill/Painting area.
 For the Material Handling, They are used Hydraulic Pallet truck and 10 Tonne
EOT Crane.
 I measured time for trip by using stop watch.
 For Hydraulic Pallet truck:
 Movement Time for Hydraulic Pallet truck – 0 Min 33 Sec (0.0055 Hr)
 Worker Salary/Working hour – Rs.36.06
 Cost = Worker Salary/Working hour × Movement Time (Hr)
= 36.06 × 0.0055 = Rs.0.20
 For 10 Tonne EOT Crane:
 Movement Time – 2 Min 18 Sec (0.036 Hr)
 Unit consumed for Movement Time = Unit consumed per working hour×
Movement Time
= 16.83 × 0.036
= 0.60588 Unit
 1 Unit – Rs.8
 0.60588 Unit = Rs.4.84
 Crane Operator Salary (for 0.036 Hr) – Rs.1.29
 Worker Salary (for 0.036 Hr) – Rs.1.29
 For Hydraulic Pallet Trucks:
 Movement Time – 0 Min 31 Sec (0.0052 Hr)
 Cost = Worker Salary/Working hour × Movement Time (Hr)
= 36.06 × 0.0052
 Cost = Rs.0.19
 The Transportation cost from Sheare/Bending/Drill Machine area to
Press/Drill/Painting area is,
 C= Rs.0.20 + Rs.4.84+ Rs.1.29 + Rs.1.29 + Rs.0.19
= Rs.7.81
 Cost for 1 trip = 7.67 ÷ 1 = Rs.7.81
 From Press/Drill/Painting area to Assembly or Fabrication area:
 Trips- 4 trips required for carrying material by worker
 Equipment used for Time Measurement – Stop watch
 Equipment used for Material handling – Hydraulic Pallet truck
Table. Cost analysis for trips from Press/Drill/Painting area to Assembly or Fabrication area
Cost/Trip = 0.81 ÷ 4 = Rs.0.20
 From Lathe Machine Department to Office:
 Trips- 1 trips required for carrying material by Lathe Machine Department-In-
Charge
 Equipment used for Time Measurement – Stop watch
 Movement Time – 3 Min 42 Sec (0.057 Hr)
 Lathe Machine Department In -Charge Salary/Working hour – Rs.57.69
 Cost/Trip = [57.69 × 0.057] ÷ 1 = Rs.3.29
 From Lathe Machine Department to Assembly or Fabrication area:
 Trips- 3 trips for carrying material by worker
 Equipment used for Time Measurement – Stop watch
 Equipment used for Material handling – Hydraulic Pallet truck
 Worker Salary/Working Hours – Rs.36.06
Table. Cost analysis for trips from Lathe Machine Department to Assembly or Fabrication area
Cost/Trip = 6.27 ÷ 3 = Rs.2.09
 From Assembly or Fabrication area to Office:
 Trips - 3 trips for carrying material like inspection sheet by Office staff
 Equipment used for Time Measurement – Stop watch
 Office Staff Salary/Working Hours – Rs.57.69
Cost/Trip = 0.348 ÷ 3 = Rs.0.12
Table. Cost analysis for trips from Assembly or Fabrication area to Office
 From Assembly or Fabrication area to Machine Tool store:
 Trips - 9 Trips per day for the returning Machine tools and other material by
worker
 Equipment used for Time Measurement – Stop watch
Table. Cost analysis for trips from Assembly or Fabrication area to Machine Tool store
Cost/Trip = 1.29 ÷ 9 = Rs.0.14
 From Assembly or Fabrication area to Plate cutting area:
 Trips - 1 trip.
 Equipment used for Time measurement - Stop watch.
 Equipment used for material handling - Wheel cart
 Worker required - 3 Workers
 Movement Time – 4 Min 13 Sec
 Movement Time (Hr) – 0.069
 Worker Salary/Working hours – Rs.36.06
 3 Worker Salary/Working hours – Rs.108.18
 Cost = Worker Salary/Working hours × Movement time (Hr) = 108.18 × 0.069
= Rs.7.46
 Cost/Trip = 7.46 ÷ 1 = Rs.7.46
 From Assembly or Fabrication area to Sheare/Bending/Drill machine area:
 Trips - 2 trip.
 Equipment used for Time measurement - Stop watch.
 Equipment used for material handling – Hydraulic pallet truck
 Worker Salary/Working Hours – Rs.36.06
Cost/Trip = 0.42 ÷ 2 = Rs.0.21
Table. Cost analysis for trips from Assembly area or Fabrication area to Sheare/Bending/Drill/Machine area
 From Assembly or Fabrication area to Press/Drill/Painting area:
 Trips - 3 trip.
 Equipment used for Time measurement - Stop watch.
 Equipment used for material handling – Hydraulic pallet truck
 Worker Salary/Working Hours – Rs.36.06
Cost/Trip = 0.59 ÷ 3 = Rs.0.20
Table. Cost analysis for trips from Assembly or Fabrication area to Press/Drill/Painting area
 Based on that I obtain cost matrix shown in below table
Table. Cost matrix
 Procedure:
1. Centroid of all the departments in the initial layout are calculated and
presented in figure.
 I put layout on coordinate system.
 The right side of the layout is assumed as x axis and the upper side of the
layout is assumed as the y axis.
 In the Initial layout, Dispatch area is unshaped area.
 Hence, I divided Dispatch area in to regular 5 shape
Fig. Dispatch unshaped area Fig. Dispatch in divided shaped
area
 I obtain centroid by using formula,
Where, x = X coordinate of the centroid of the ith portion of the department
y = Y coordinate of the centroid of the ith portion of the department.
n= Number of regular shaped portions in the department.
a= Area of the ith portion.
Table. List of centroid
2. The distance between any two departments is represented by rectilinear distance
between the centroid of the departments.
Dij = Mod [Xi - Xj] + Mod [Yi – Yj]
Where (Xi, Yi) and (Xj, Yj) are the centroid of the departments i and j,
respectively.
 Green color for distance travelled by material in Distance matrix
 Distance matrix is shown below.
Table. Distance matrix
3. Compute initial material handling cost by multiply distance matrix, flow matrix,
cost matrix by using below formula.
Table. Initial cost matrix
 Material handling cost = Rs. 4450.34 / day.
4. Interchange department pair wise by interchanging centroid based on common
border and common area criterion.
(a) Interchanging Receiving area and office based on common border. And find
distance matrix using formula shown in step 2.
Table. Distance matrix for new layout 1
 Multiply Distance matrix for new layout 1 with cost matrix, and flow matrix by
using formula shown in step 3 for finding material handling cost for new layout
1.
Table. Material Handling cost matrix for new layout 1
(b) Interchange Receiving area and Color and Non consumable store based on
common border. And find Distance matrix by using formula shown in step 2.
Distance matrix is shown in below table.
Table. Distance matrix for new layout 2
 Multiply Distance matrix for new layout 2 with cost matrix and flow matrix by
using formula shown in step 3 for finding material handling cost for new layout
2 shown in below table.
Table. Material handling cost matrix for new layout 2
(c) Interchange Receiving area and Electrical store based on common border. And
find Distance matrix by using formula shown in step 2. Distance matrix is
shown in below table.
Table. Distance matrix for new layout 3
 Multiply Distance matrix for new layout 3 with cost matrix, flow matrix by
using formula shown in step 3 for finding material handling cost for new layout
3 shown in below table.
Table. Material handling cost matrix for new layout 3
(d) Interchange Receiving area and Machine tool store based on common border
and find distance matrix by using formula shown in step 2.Distance matrix is
shown in below table.
Table. Distance matrix for new layout 4
 Multiply Distance matrix for new layout 4 with cost matrix, flow matrix by
using formula shown in step 3 for finding material handling cost for new layout
4 shown in below table.
Table. Material handling cost matrix for new layout 4
(e) Interchange Receiving area and Dispatch area based on common border and
find distance matrix by using formula shown in step 2.Distance matrix is shown
in below table.
Table. Distance matrix for new layout 5
 Multiply Distance matrix for new layout 5 with cost matrix, flow matrix by
using formula shown in step 3 for finding material handling cost for new layout
5 shown in below table.
Table. Material handling cost matrix for new layout 5
(f) Interchange Office and Color and Non consumable store based on common
border and find distance matrix by using formula shown in step 2. Distance
matrix is shown in below table.
Table. Distance matrix for new layout 6
 Multiply Distance matrix for new layout 6 with cost matrix, flow matrix by
using formula shown in step 3 for finding material handling cost for new layout
6 shown in below table.
Table. Material handling cost matrix for new layout 6
(g) Interchange Office and Press/Drill/Painting area based on common border and
find distance matrix using formula shown in step 2.Distance matrix is shown in
below table.
Table . Distance matrix for new layout 7
 Multiply Distance matrix for new layout 7 with cost matrix, flow matrix by
using formula shown in step 3 for finding material handling cost for new layout
7 shown in below table.
Table. Material handling cost matrix for new layout 7
(h) Interchange Office and Assembly or Fabrication area based on common border
and find distance matrix using formula shown in step 2.Distance matrix is
shown in below table.
Table . Distance matrix for new layout 8
 Multiply Distance matrix for new layout 8 with cost matrix, flow matrix by
using formula shown in step 3 for finding material handling cost for new layout
8 shown in below table.
Table. Material handling cost matrix for new layout 8
(i) Interchange Color and Non consumable store and Electrical store based on
common border and find distance matrix using formula shown in step
2.Distance matrix is shown in below table.
Table. Distance matrix for new layout 9
 Multiply Distance matrix for new layout 9 with cost matrix, flow matrix by
using formula shown in step 3 for finding material handling cost for new layout
9 shown in below table.
Table. Material handling cost matrix for new layout 9
(j) Interchange Color and Non consumable store and Press/Drill/Painting area
based on common border and find distance matrix using formula shown in step
2.Distance matrix is shown in below table.
Table. Distance matrix for new layout 10
 Multiply Distance matrix for new layout 10 with cost matrix, flow matrix by
using formula shown in step 3 for finding material handling cost for new layout
10 shown in below table.
Table. Material handling cost for new layout 10
(k) Interchange Electrical store and Machine tool store based on common border
and find distance matrix using formula shown in step 2.Distance matrix is
shown in below table.
Table . Distance matrix for new layout 11
 Multiply Distance matrix for new layout 11 with cost matrix, flow matrix by
using formula shown in step 3 for finding material handling cost for new layout
11 shown in below table.
Table. Material handling cost matrix for new layout 11
(l) Interchange Electrical store and Press/Drill/Painting area based on common
border and find distance matrix using formula shown in step 2. Distance matrix
is shown in below table.
Table. Distance matrix for new layout 12
 Multiply Distance matrix for new layout 12 with cost matrix, flow matrix by
using formula shown in step 3 for finding material handling cost for new layout
12 shown in below table.
Table. Material handling cost matrix for new layout 12
(m) Interchange Machine tool store and Press/Drill/Painting area based on
common border and find distance matrix using formula shown in step 2.
Distance matrix is shown in below table.
Table. Distance matrix for new layout 13
 Multiply Distance matrix for new layout 13 with cost matrix, flow matrix by
using formula shown in step 3 for finding material handling cost for new layout
13 shown in below table.
Table. Material handling cost matrix for new layout 13
(n) Interchange Machine tool store and Assembly or Fabrication area based on
common border and find distance matrix using formula shown in step 2.
Distance matrix is shown in below table.
Table. Distance matrix for new layout 14
 Multiply Distance matrix for new layout 14 with cost matrix, flow matrix by
using formula shown in step 3 for finding material handling cost for new layout
14 shown in below table.
Table. Material handling cost matrix for new layout 14
(o) Interchange Machine tool store and Packaging department based on common
border and find distance matrix using formula shown in step 2. Distance matrix
is shown in below table.
Table. Distance matrix for new layout 15
 Multiply Distance matrix for new layout 15 with cost matrix, flow matrix by
using formula shown in step 3 for finding material handling cost for new layout
15 shown in below table.
Table. Material handling cost matrix for new layout 15
(p) Interchange Machine tool store and Dispatch area based on common border
and find distance matrix using formula shown in step 2. Distance matrix is
shown in below table.
Table. Distance matrix for new layout 16
 Multiply Distance matrix for new layout 16 with cost matrix, flow matrix by
using formula shown in step 3 for finding material handling cost for new layout
16 shown in below table.
Table. Material handling cost matrix for new layout 16
(q) Interchange Packaging Department and Assembly and Fabrication area based
on common border and find distance matrix using formula shown in step 2.
Distance matrix is shown in below table.
Table. Distance matrix for new layout 17
 Multiply Distance matrix for new layout 17 with cost matrix, flow matrix by
using formula shown in step 3 for finding material handling cost for new layout
17 shown in below figure.
Table. Material handling cost matrix for new layout 17
(r) Interchange Packaging Department and Dispatch area based on common border
and find distance matrix using formula shown in step 2. Distance matrix is
shown in below table.
Table. Distance matrix for new layout 18
 Multiply Distance matrix for new layout 18 with cost matrix, flow matrix by
using formula shown in step 3 for finding material handling cost for new layout
18 shown in below table.
Table. Material handling cost matrix for new layout 18
(s) Interchange Press/Drill/Painting area and Assembly or Fabrication area based
on common border and find distance matrix using formula shown in step 2.
Distance matrix is shown in below table.
Table. Distance matrix for new layout 19
 Multiply Distance matrix for new layout 19 with cost matrix, flow matrix by
using formula shown in step 3 for finding material handling cost for new layout
19 shown in below table.
Table. Material handling cost matrix for new layout 19
(t) Interchange Assembly or Fabrication area and Sheare/Bending/Drill machine
area based on common border and find distance matrix using formula shown in
step 2. Distance matrix is shown in below table.
Table. Distance matrix for new layout 20
 Multiply Distance matrix for new layout 20 with cost matrix, flow matrix by
using formula shown in step 3 for finding material handling cost for new layout
20 shown in below table.
Table. Material handling cost matrix for new layout 20
(u) Interchange Assembly or Fabrication area and Dispatch area based on common
border and find distance matrix using formula shown in step 2. Distance matrix
is shown in below table.
Table. Distance matrix for new layout 21
 Multiply Distance matrix for new layout 21 with cost matrix, flow matrix by
using formula shown in step 3 for finding material handling cost for new layout
21 shown in below table.
Table. Material handling cost matrix for new layout 21
(v) Interchange Sheare/Bending/Drill machine area and Dispatch area based on
common border and find distance matrix using formula shown in step 2.
Distance matrix is shown in below table.
Table. Distance matrix for new layout 22
 Multiply Distance matrix for new layout 22 with cost matrix, flow matrix by
using formula shown in step 3 for finding material handling cost for new layout
22 shown in below table.
Table. Material handling cost matrix for new layout 22
(w) Interchange Sheare/Bending/Drill machine area and Storage of ready
component/ Semi finished product based on common border and find distance
matrix using formula shown in step 2. Distance matrix is shown in below table.
Table. Distance matrix for new layout 23
 Multiply Distance matrix for new layout 23 with cost matrix, flow matrix by
using formula shown in step 3 for finding material handling cost for new layout
23 shown in below table.
Table. Material handling cost matrix for new layout 23
(x) Interchange Lathe machine Department and Dispatch area based on common
border and find distance matrix using formula shown in step 2. Distance matrix
is shown in below table.
Table. Distance matrix for new layout 24
 Multiply Distance matrix for new layout 24 with cost matrix, flow matrix by
using formula shown in step 3 for finding material handling cost for new layout
24 shown in below table.
Table. Material handling cost matrix for new layout 24
(y) Interchange Plate cutting area and Dispatch area based on common border and
find distance matrix using formula shown in step 2. Distance matrix is shown
in below table.
Table. Distance matrix for new layout 25
 Multiply Distance matrix for new layout 25 with cost matrix, flow matrix by
using formula shown in step 3 for finding material handling cost for new layout
25 shown in below table.
Table. Material handling cost matrix for new layout 25
 5. From the observation, I found that Layout 19 is best new optimum layout.
Print the new Layout by using AUTOCAD 2018.
Fig. New Layout
6. I observed that Size of Plate cutting area, Dispatch area,
Sheare/Bending/Drill Machine area, Press/Drill/Painting area is more in
new layout. Assembly or Fabrication area is small. So I used Space-
relationship analysis of SLP for utilization of space.
Table. Space relationship analysis
7. Based on Space-relationship analysis; I done some modification in new layout.
Print the new modified layout by using AUTOCAD 2018.
Table. New modified layout
8. Update the centroid for New modified layout.
 Here, Receiving area, Office and Dispatch area is an unshaped area.
 I divided unshaped area in to regular shaped area.
 Calculate centroid for Receiving area, Office and Dispatch area by using
formula mention in step-1 in procedure.
 Receiving area:
Fig. Receiving unshaped area Fig. Receiving unshaped area divided in
shaped area
 Office:
Fig. Office unshaped area Fig. Office unshaped area divided
in shaped area
 Dispatch area:
Fig. Dispatch unshaped area Fig. Dispatch unshaped area divided
in shaped area
 Updated centroid list is shown in below table.
Table. Updated Centroid list
9. obtain Distance matrix for new modified layout by using formula mention in
step-2 in Procedure.
 Distance matrix for new modified layout is shown in below table.
Table. Distance matrix for new modified layout
 Multiply Distance matrix for new modified layout with Flow matrix and Cost
matrix for obtaining Material handling cost for new modified layout.
 Material handling cost for new modified layout is shown in below table.
Table. Material handling cost matrix for new modified layout
10.Flow process chart is a process chart which shows the sequence of flow of all
activities which occur while producing a product / component or executing a
procedure.
 Here, I prepared a Material type flow process chart for existing layout method
and New modified layout method (Proposed layout method).
Observation and Analysis
 Material handling cost
Fig. comparison of material handling cost by bar chart
0
1000
2000
3000
4000
5000
6000
7000
Material handling cost( In Rupees)
Material handling cost( In Rupees)
 Material handling cost
Initial layout Rs. 4434.50 per day
Layout 19 Rs.3727.83 per day
 Further Applied Space relation ship analysis of SLP in Layout 19:
4450.34
3727.83 3677.19
Existing
layout
Layout 19 New modified
layout
Material handling cost
Fig. Comparison of material handling cost by bar chart after SLP
 Material handling distance
Fig. comparison of material handling distance by bar chart
0
200
400
600
800
1000
1200
1400
1600
1800
2000
Material Handling Distance(Meters)
Material Handling Distance(Meters)
 Material handling distance
 Further, Applied SLP for utilization of space in Layout 19:
Initial layout 1395.975 Meter
Layout 19 1331.525 Meter
 Material handling distance:
1395.975
1331.525
1312.38
Existing layout New layout 19 New modified layout
Material handling distance(Meter)
Fig. Comparison of Material handling distance by bar chart
 Flow process chart Ratio Analysis:
Table. Summary of activity for flow process chart
 From the summary of activity for flow process chart, it was found that distance
is reduce from 399.31M to 364.91 M.
 Detail of the FPC of the existing layout method are summarized below:
 Total number of activities(y) ₌ 41
 Total number of operations and inspection (x) ₌ 14
 Ratio ₌ 14/41 ₌ 0.34
 Detail of the FPC of the proposed layout method are summarized below:
 Total number of activities(y) ₌ 38
 Total number of operations and inspection (x) ₌ 14
 Ratio ₌ 14/41 ₌ 0.37
 Reduction in distance ₌ 34.4 M
0.34
0.37
Existing layout
method
Proposed layout
method
Ratio
 Cost – Benefit Analysis:
 Systematic approach to estimating strengths and weakness of alternative used
to determine option which provide the best approach to achieving benefits
while preserving savings.
Table. Comparison of material handling cost per year
Layout Material handling cost/year
Existing Layout Rs. 1,11,08,048.64
Layout 19 Rs.93,04,663.68
New Modified Layout Rs.91,78,266.24
•Net profit is found from company balance sheet
Table. Cost- Benefit Analysis (Material handling cost)
Table. Cost-Benefit Analysis
Result
 After Applying CRAFT, I found that new layout 19 is best layout from
observation and analysis.
 Material handling cost is reduced from Rs. 4450.34 per day to Rs. 3727.83 per
day. Material handling Distance is reduced from 1395.75 Meter to 1331.525
Meter.
 Reduction in material handling cost
= [(Existing layout cost - New layout cost) ×100] / Existing layout cost
= [(4450.34 – 3727.83) ×100] / (4450.34) = 16.23%.
 But here I observed that new layout 19 is not suggested because of unutilization
of space. For the utilization of space, SLP is used for the further improvement.
 After Applying Space-relationship analysis of SLP, I prepared new modified
layout. I observed that Material handling cost is reduced from Rs.3727.83 per
day to Rs.3677.19 per day.
 Material handling distance is reduced from 1331.525 Meter to 1312.38 Meter.
 Reduction in material handling cost
= [(Existing layout cost - New layout cost) ×100] / Existing layout cost
= [(4450.34 – 3677.19) ×100] / (4450.34) = 17.37 %.
 From the result, I found that New modified layout is best layout for Proposed.
 New Proposed layout:
Fig . Proposed layout
 From FPC ratio analysis, the ratio of proposed layout method > the ratio of
existing layout method.
 The proposed layout method is an improved one.
 From Cost-Benefit analysis found that New modified layout is more profitable
than existing layout.
Table. Summary of result
 The initial material handling cost is Rs.4450.34 per day.
 CRAFT algorithm was applied and it was found that material handling cost is
reduced to Rs.3727.83 per day(16.23%) after interchanging Press/Drill/Painting
area and Assembly or Fabrication area.
 SLP is used for further improvement by utilization of space and found that
material handling cost is reduced to Rs.3677.19 per day(17.37%).
 New modified layout is a best proposed layout to suggest.
 Further benefits were:
 Increase productivity
 Low cost of product
 Reduction in efforts by assembly workers.
Conclusion
 5s is a best lean tool to suggest for crane industry to make clean and tidy by
removing obstacle and waste from floor space.
Future Scope
References
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[3] Ameha Mulugeta, Birhanu Beshah, Daniel Kitaw, “computerized facilities
layout design”, Journal of EEA, Vol. 30, 2013.
[4] Bordoloi M. P., Nath T, “Modification of an Existing Layout of a Production
Line Based on Distance Function”, The International Journal Of Science &
Techno ledge, Volume 2,Issue 8, August 2014.
[5] Annant Dhawan, Dinesh Kumar Kasdekar, Sharad Agrawal, “Layout design
and evaluation using computer Relative allocation of facilities technique,”
International Journal of Mechanical and Production Engineering, ISSN: 2320-
2092, Volume- 2, Issue-11, Nov -2014.
[6]Hari Prasad.N, Rajyalakshmi.G, Sreenivasulu Reddy.A, “A Typical
manufacturing plant layout design using CRAFT algorithm”, Procedia
Engineering 97 (2014), pp. 1808 – 1814.
[7] Mr. Deepak Kumar, Mr. Nidheesh Shetty, Mr. Pramod Rajaram, Mr. Shashank
M.S, Mr. Sukesh K, “Study and re-design of the layout using facility planning
tools”, International Journal for Scientific Research & Development, Volume 2,
Issue 5, 2014.
[8] Dileep Pandalai, Subin George Mathew, “Redesign of Existing layout of Tiller
manufacturing industry to reduce material handling cost”, International Journal
of Science Technology & Engineering, Volume 2, Issue 4, October 2015.
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of Plant efficiency using optimization techniques in a large scale foundry
Industry”, International Journal for Scientific Research & Development, Vol. 3,
Issue 04, 2015.
[10] Leonardo, Hotma Antoni Hutahaean, Hui-Ming Wee, “Comparing Alternative
Plant Layouts Based On CRAFT and BLOCPLAN Algorithms”, Proceeding
8th International Seminar on Industrial Engineering and Management, 2015.
[11] Vivek A Deshpande, Nitish.D.Patil, Vilas Baviskar, Jaivesh Gandhi, “Plant
Layout Optimization using CRAFT and ALDEP methodology”, Productivity
Journal by National Productivity Council, ISSN: 0032-9924, Volume 57, Issue
No.1, April-June 2016.
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CRAFT”, IJSART, Volume 2, Issue 7, July 2016.
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Optimization using CRAFT Algorithm supported by a Virtual Factory created
as an Implementation of Digital Manufacturing”, International Journal of
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[14] M. Rajesh, N V R Naidu, P. Naveen Kumar, “Plant layout optimization of
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Research in Engineering and Technology, Volume 5, Issue 16, September 2016.
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plant layout and materials Handling system for a furniture manufacturing
company”,Proceedings of the World Congress on Engineering ,Vol II,2016.
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layout for metro coach using CRAFT methodology”, International Research
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effective material handling for a ceramic insulator plant”, International
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Material Flow Efficiency: A Case Study of Wooden Door Panels
Manufacturing Factory”, Proceedings of International Conference on
Technology and Social Science, 2018.
Paper Publication Certificate
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Plant layout optimization in crane manufacturing using CRAFT and SLP

  • 1. Presented By- Name- Harshrajsinh B Kher Enrollment No. 170305218002 M.tech (I.E) 4th Semester Internal guide: Asst. Prof. Jalpa Zalawadia Asst. Prof. Prashant Khanna External Guide: Mr. Neel Shah Plant Layout Optimization in Crane Manufacturing Industry Using CRAFT And SLP
  • 2. Content  Abstract  Company Profile  Introduction  Problem definition  Aim and Objectives  Literature Survey  Methodology  Observation and Analysis  Result  Conclusion  Future Scope  References
  • 3. Abstract  To improve the productivity of any organization, Plant layout plays a major role.  Plant layout design is the most effective arrangement of physical facilities to allow the greater efficiency.  In this presentation present that , CRAFT is used for improvement of existing layout in crane manufacturing industry.  After all literature and collection of data gather, Plant layout is critically studied and found Distance matrix, cost matrix, flow matrix by perceived flow of material in plant layout.  Existing layout material handling cost was found.  After interchanging pair wise departments, it was found that material handling cost reduced.  Further, Apply Space-relationship analysis of SLP to utilize space and it was found that material handling cost was further reduced.
  • 4. Company Profile  Founder – Mr. Dharamshi.B.Shah  Crane manufacturing unit namely known as “OSWAL Machinery Ltd”  Located in Anand, Gujarat.  Providing Material handling related solution.  Product: Material handling equipment, Conveyors , etc.  Make on customer demand.  Successfully delivered end to end Material handling solution across industry spectrum covering Cement, Steel, Engineering, Infrastructure and others.  Execute small and large orders on schedule.
  • 5. Introduction • One of the main goals of manufacturing system is the maximization of its productivity. • Depend upon factor like complexity of the product made, quality of the raw material, complexity of the manufacturing process, arrangement of work station. • The challenge of determining best arrangement of workstations is one of the element has a great impact on system performance. •It is known as “ Facility layout Problem”. •The designing of a new plant layout means to achieve remarkable improvement in efficiency, manufacturing cost, lead time, travelling distance and overall production cost and it is done by reallocating the equipment’s positions in the layout.
  • 6.  Work Process in a company: Fig. Work process in a company.
  • 7.  Component used in Crane manufacturing: Fig. EOT Double girder crane
  • 8.  Hook – To lifted load which connects to the hoist.  Hoist – what makes the lift and holds , raises , or lowers the load using wire rope. It can be manually powered, with electricity or with pneumatic.  Trolley – supports the hoist and moves horizontally along the crane bridge , to position the hoist and hook , prior to picking up and lowering a load. It can be design in an under running or top running design:  Bridge – load-bearing beam that runs the width of the building. Primary structural component connects the runways and moves the hoist forward and backward using a trolley.  Runway – what the bridge crane travels on to move the crane up and down the bays.  Runway rail or tracks – Rail supported by the runway on which the crane travels.  End truck – Located on either side of the bridge, it move the bridge up and down the runway utilizing a series of wheels that ride on the rail.  Bumpers – design to absorb crane’s energy and reduce impact bringing the crane to rest in a controlled manner and minimizing forces when the crane reaches the end of its travel.
  • 9.  Controls – typically mounted in a panel on the crane or hoist and the pendant or remote radio console allows the operator to run the crane. It’s operate drive and hoist motors and can control VFDs to control hoist speed for precise load positioning.  Electrification – Insulated conductor bars or festoon systems bring power to the crane from the building.
  • 10.  Company is manufacturing a Component like Bridge structure and Hoist.  Other raw material or component is pursuing from market. Table. List of component
  • 11. •Manufacturing process of component  For structure: Fig . Manufacturing process of crane structure
  • 12.  For Hoist Fig. Manufacturing process of hoist
  • 13.  Plant layout??? - Floor Plan of the physical facilities which are used in Production. - refers to the generation of alternatives plans for the arrangement of physical facilities and selects one which minimizes distance between departments.  Objectives of good plant layout: 1. Minimize investment of equipment 2. Minimize production time 3. Utilization of existing space most effectively. 4. Minimize material handling cost.  Classification of layout: (1) Process Layout (2) Product Layout (3) Group Layout (4) Fixed Position Layout  Oswal Used combinational Layout.
  • 14. Problem definition  By observing , I found that in crane manufacturing plant .  There are several type of problems present : Fig. Initial layout with Material flow and process
  • 16.
  • 17.  Problems: 1. High Material Handling Cost. 2. Size of Plate cutting area and Dispatch area, Press/Drill/Painting area, Sheare/Bending/Drill Machine area is more. 3. Size of Assembly area or Fabrication area is small. 4. Flow is not smooth because of obstacle present on way of transportation in Assembly or Fabrication area. 5. Entering of raw material from Receiving area, Lathe Machine Department and dispatching of finished product from same gate in Assembly or Fabrication area, which will increase complexity in process.
  • 18. Aim And Objectives  Aim: To Improve existing layout of Crane manufacturing Industry using CRAFT and SLP.  Objectives:  To minimize material handling cost by minimizing distance travelled by material between Sheare/Bending/Drill/Machine area and Press/Drill/Painting area.  To utilize of space by reducing size of Plate cutting area, Sheare/Bending/Drill Machine area, Press/Drill/Painting area and increasing size of Assembly or Fabrication area.  To provide a smooth material flow by removing obstacle present on the way of Transportation in Assembly or Fabrication area.  To reduce complexity in process by providing Separate gate for entering raw material and dispatching finished product in Assembly or Fabrication area.  To suggest a new optimum layout.
  • 20. 17 1 4 1 International JournalsNational JournalsInternational conferenceNational conference Research paper No.of.paper
  • 21. Sr. No. Author Name Title Work Description Publication Year Publication Name 1 Vivek A Deshpande et al Facility Layout Design By CRAFT technique • They are found high material handling cost, unutilization of space in existing facility layout. •They are used CRAFT for improving existing facility layout and find optimum new layout. •They are reduced material handling cost from Rs. 85914/ annum to Rs. 8660.7/ annum. •They are improved existing facility layout by minimizing 89.92% material Handling cost. 2005 Proceedings of COMPUTI-ME
  • 22. Sr. No. Author Name Title Work Description Publication Year Publication Name 2 Bobby John et al Analysis and optimization of plant layout using relative allocation of facilities technique • Improved existing layout of Foundary . •By using CRAFT, They are proposed new best layout. •They are analyzed that model by using ARENA software. •The utilization of the layout is increased by changing the position of equipment. •They are reduced material handling cost from 3955 to 3905. •They are suggested that the production rate and the utilization of machines depend on how well the various machines, production facilities and employee’s amenities are located in plant. 2013 International Journal of Emerging Technology and Advanced Engineering
  • 23. Sr. No. Author Name Title Work Description Publication Year Publication Name 3 Ameha Mulugeta et al Computerized facilities layout design •They are used CRAFT algorithm for improving layout of Kotebe Metal tools factory. •They are used CORELAP algorithm for comparison with CRAFT algorithm. •They are reduced material handling cost from 4886 birr per month to 3648 birr per month(25%). •By using CORELAP they are found material handling cost 3806 birr per month. •Further they are used CRAFT for improvement of layout which obtained by CORELAP. •By using CRAFT, They are reduced 3721 birr per month material handling cost. 2013 Journal of EEA
  • 24. Sr. No. Author Name Title Work Description Publication Year Publication Name 4 Bordoloi M. P. et al Modification of an Existing Layout of a Production Line Based on Distance Function •They are used Distance function to improve existing layout of soft drink refilling company. •By using Distance function, They are reduced conveyor length from 42.7m to 34.5m. •They are reduced bottle travelling time from 3.36 min to 2.65 min. •They are reduced material handling cost from Rs.152.04 per day to Rs. 102.1 per day(32%). 2014 The International Journal Of Science & Techno ledge
  • 25. Sr. No. Author Name Title Work Description Publication Year Publication Name 5 Anant dhawan et al Layout Design And Evaluation Using Computer Relative Allocation Of Facilities Technique •They are found high material handling cost, unutilization of space, low production rate in existing layout. •By applying CRAFT, They reduce material Handling cost from Rs. 68000 to Rs. 37000. •Also Reduced distance travelled from 403 M to 374 M. •They are proposed new optimum layout using CRAFT. 2014 International Journal of Mechanical And Production Engineering
  • 26. Sr. No. Author Name Title Work Description Publication Year Publication Name 6 Hari Prasad.N et al A Typical Manufacturing Plant Layout Design Using CRAFT Algorithm •They are designed new layout using CRAFT. •They are obtained distance matrix by converting layout diagram in to STEP file format Which is taken as input to java program and output obtained as a distance matrix. •They are obtained material handling cost in five different periods . •They are reduced 54.56%, 56.50%, 58.56%, 58.31%, 61.84% in material handling for different five periods. 2014 Procedia Engineering
  • 27. Sr. No. Author Name Title Work Description Publication Year Publication Name 7 Mr. Deepak Kumar et al Study and Redesign of the layout using facility planning tools. •They are focused to redesign the existing layout of the administrative floor to reduce the flow cost. •They are used CRAFT and CORELAP methodology. •By CRAFT, They are reduced cost from 25810.05 to 23124.38. •By using CORELAP, they are reduced cost from 25810.05 to 12051.08. 2014 International Journal for Scientific Research & Development
  • 28. Sr. No. Author Name Title Work Description Publication Year Publication Name 8 Dileep Pandalai et al Redesign of Existing Layout of tiller Manufacturing industry to reduce material handling cost •They are focused on redesign of existing layout of tiller manufacturing industry. •They are used CRAFT for improve of existing layout in different three stages. •Stage- 1 : They are find that present layout is the best layout when all the parts required for the production are manufactured in the factory. • Stage- 2: They are find that when most of the parts are outsourced, there is a need to redesign the layout . •They are reduced material handling cost from 1595 to 1035. •Stage- 3: By using ARENA, They are stimulated the present model and found blockage in the production. 2015 International Journal of Science Technology & Engineering
  • 29. Sr. No. Author Name Title Work Description Publication Year Publication Name 9 S. Amal et al Improvement of Plant Efficiency using Optimization Techniques in a Large Scale Foundry Industry •They are conducted study at ABC Ltd . •They are proposed new optimum layout by using CRAFT algorithm. •They are also applied Group technology in new layout. •By ARENA, they are simulated new model of layout. •They are reduced distance travelled from 3063 to 1414 •They are increased average machine utilization from 46.68% to 72.03%. •Also reduced WIP from 8 to 6. •Also decreased transportation cost from 106.64 to 93.74. 2015 International Journal for Scientific Research & Development
  • 30. Sr. No. Author Name Title Work Description Publication Year Publication Name 10 Leonardo et al Comparing alternative plant layouts based on CRAFT And BLOCPLAN algorithms •They are focused on improving existing layout of FSCM manufacturing Indonesia is a company specialized in fabricating various types of motorcycle chains. •They are used CRAFT and BLOCPLAN algorithms for improvement and comparing them. •By using CRAFT, they are reduced 3.5% flow distance from existing layout. •By using BLOCPLAN , they are reduced flow distance from 463.1 meters to 434.62 meters(6.2%). •They are reduced MH cost from 1,047,678.49 per day to 1,035,636.87per day(1.15%) by CRAFT. •They are reduced MH Cost from 1,047,678.49 per day to 1,022,419.91 per day(2.4%) by BLOCPLAN. 2015 Proceeding 8th International Seminar on Industrial Engineering and Management
  • 31. Sr. No. Author Name Title Work Description Publication Year Publication Name 11 Vivek A Deshpande et al Plant layout optimization using CRAFT and ALDEP methodology •They are improved existing layout of RMG alloy steel industry in bharuch. •They are found problem like material handling consume lots of effort , high material handling cost. •By using CRAFT, They are improved only 0.10% in MH cost for the existing layout. •Further they are used ALDEP . •By ALDEP, They are improved 23% of MH Cost. •They are developed optimum layout by ALDEP. 2016 Productivity Journal by National Productivity Council
  • 32. Sr. No. Author Name Title Work Description Publication Year Publication Name 12 Vandit Hedau et al Improvement of Plant layout using CRAFT •They are focus on improving existing layout of industry located in Madhya Pradesh . •They are choose density based criteria to optimize overall performance of organization layout. •They are choose CRAFT algorithm for solved complexity on excel. •They are reduced transportation cost among department from Rs. 31680 to Rs. 22894. 2016 IJSART
  • 33. Sr. No. Author Name Title Work Description Publication Year Publication Name 13 Kiran Phadatare et al Plant Layout Optimization using CRAFT Algorithm supported by a Virtual Factory created as an Implementation of Digital Manufacturing •They are used CRAFT algorithm for proposed new layout. •They are used DELMIA for creating virtual digital factory. •By using CRAFT, they are reduced 25-28% material handling cost. •They are reduced 18- 20% lead times. •They are increased 15- 20% production efficiency. •They are reduced 10- 15% in labor requirement. •They are suggested that Properly locating various machines, production facilities and employee amenities in the industry leads to better utilization of the machines and higher production rates . 2016 International Journal of Emerging Technology and Advanced Engineering
  • 34. Sr. No. Author Name Title Work Description Publication Year Publication Name 14 M.Rajesh et al Plant layout optimization of oven manufacturing unit using CORELAP algorithm •They are used CORELAP algorithm to proposed new layout. •They are found 43.20% surplus area and material handling cost Rs.2588.2/month in existing layout. •By using CORELAP algorithm, They are reduced material handling cost from Rs.2588.2/month to Rs.2548/month. •They are minimized surplus area from 43.20% to 8.83%. 2016 International Journal of Research in Engineering and Technology
  • 35. Sr. No. Author Name Title Work Description Publication Year Publication Name 15 Wilson R. Nyemba et al Optimization of a Plant Layout and Materials Handling System for a Furniture Manufacturing Company •They are improved plant layout of Furniture manufacturing company in Harare, Zimbabwe. •They are used CRAFT for redesign new optimum layout. •They are reduced total distance travelled meters/month from 143497 to 74444. •They are reduced material handling cost from 24107$ to 12506$ in a month. 2016 Proceedings of the World Congress on Engineering
  • 36. Sr. No. Author Name Title Work Description Publication Year Publication Name 16 Ranjith R Hombal et al Improvement of process and plant layout for metro coach using CRAFT methodology • They are improved existing plant layout of metro coach manufacturing industry. •They are proposed new layout by using CRAFT methodology. •They are suggested that from the implementation of new layout the organization can save 21.1% cost compared to the present transportation cost. 2017 International Research Journal of Engineering and Technology (IRJET)
  • 37. Sr. No. Author Name Title Work Description Publication Year Publication Name 17 Manoj Shanthpure et al Designing Facility layout and effective material handling for a ceramic insulator plant They are focused on designing new layout of ceramic insulator plant located in Bangalore. They are used SLP for improvement of layout. They are designed three proposed layout. Layout-1: In this layout, They are reduced material handling cost from 2555.2 to 1343.71 and minimized distance from 423.9 m to 221.31 m. Layout-2:In this layout, They are reduced material handling cost from 2555.2 to 1343.71 and minimized distance from 423.9 m to 221.31 m. Layout-3: In this layout, They are reduced material handling cost from 2555.2 to 1138.44 and minimized distance from 423.9 m to 240.96 m. 2017 International Research Journal of Engineering and Technology
  • 38. Sr. No. Author Name Title Work Description Publication Year Publication Name 18 Mr. Virendra Patil et al Case study of Improvement algorithm of layout design using CRAFT algorithm • They are focused on redesign new layout. •They are suggested that CRAFT is a best methodology for improve existing layout. •They are suggested that properly locating various machine, Production facilities, and employee amenities in the industry leads to better utilization of the machines and higher production rates. 2017 International Journal of Engineering Technology Science and Research
  • 39. Sr. No. Author Name Title Work Description Publication Year Publication Name 19 Vishnu Narayanan et al Optimization Of Manufacturing Plant Layout Design In Sifl Using Craft •They are improved plant efficiency and machine utilization by improving existing layout of Steel & Industrial Forgings Ltd. •They are found high Material Handling cost and Unutilization of space in existing layout. •By using CRAFT, they proposed new optimum layout. •They are reduced material handling cost of 151 from 176. •By using ARENA , they are improved machine utilization from 69% to 73%. •They are suggested that production rate and the machine utilization depend on how well the various machines, facilities and employee’s amenities are located in a plant. 2017 International journal of current engineering and scientific research (IJCESR)
  • 40. Sr. No. Author Name Title Work Description Publication Year Publication Name 20 Olusegun Kazeem Lekan et al Analysis of Plant Layout Design for Operational Efficiency with Craft Algorithms •They are improved existing layout of pulley factory . •They are proposed new optimum layout by using CRAFT algorithms. •They are reduced material handling cost from 50 Thai-Bayt to 34 Thai-Bayt. •They are improved 32% in efficient operation and effective production by improving existing layout. 2017 OECONOMICA
  • 41. Sr. No. Author Name Title Work Description Publication Year Publication Name 21 M.Vykunta Rao et al Optimization Of Plant Layout Design Using Craft Technique •They are suggested CRAFT is a best methodology for improving existing layout. •They are proposed new machine layout by CRAFT algorithm. •They are find initial travelling cost in five periods Rs 15050/-, Rs 14310/-, Rs 15880/-, Rs 15345/- ,Rs11530/- respectively. •By CRAFT they are reduced travelling cost by 15, 14, 6,11 and 6% for the five periods. 2017 International Journal of Engineering, Science and Mathematics
  • 42. Sr. No. Author Name Title Work Description Publication Year Publication Name 22 Damir Belic et al Optimization of the Plant Layout in the Production of the Special Transformers - Case Study • They are focused on optimization of the plant layout in the production of the special transformer. • They are used Bloch- Schmigalla triangular method for plant layout optimization. •They are reduced distance from 897 distance units to 787 distance unit. •They are minimized material handling cost from 12554 to 9787 which means improved 22% of existing layout. 2018 FME Transactions
  • 43. Sr. No. Author Name Title Work Description Publication Year Publication Name 23 Chayut Bunterngchit et al The Application of CRAFT Algorithm for Increasing Material Flow Efficiency: A Case Study of Wooden Door Panels Manufacturing Factory •This research aimed to apply plant layout techniques in order to improve the layout of a wooden door panels manufacturing factory. •By Using CRAFT, the material handling cost was reduced from THB 3356.73 per day to THB 3016.29 per day( 10.14%). •Total distance of material handling was reduced from 134376.5 meters per day to 119361.5 meters per day(11.17%). 2018 Proceedings of International Conference on Technology and Social Science
  • 44. Find From Literature survey  There are different methodology adopted by researcher like BLOCPLAN,SLP, CRAFT,ALDEP,CORELAP.  Systematic Layout procedure(SLP) is a manual method which is used for Small manufacturing unit also its take a large time for improvement.  This disadvantage of SLP is overcome by Computerized method.  ALDEP and CORELAP are Computerized method. Both are constructive type algorithm.  CRAFT is a used for improvement for existing layout facility in any organization or manufacturing company.
  • 45. Methodology Layout Design Procedure: 1. Manual Method: Travel Chart, SLP 2. Computerized Method: Constructive type ( ALDEP, CORELAP ) Improvement type ( CRAFT )  Computerized Relative Allocation of Facilities Technique (CRAFT) • Developed by Armour and Buffa. • Widely used than ALDEP and CORELAP. • Improvement type algorithm. • Start with an initial layout and improves layout by interchanging department pair wise so the transportation cost is minimized. • Heuristic algorithm.  “It is a technique designed for solving a problem more quickly when classic methods are too slow or for finding an approximate solution when classic methods fail to find any exact solution.”
  • 46.  CRAFT requirement: 1. Initial layout 2. Flow data 3. Cost per unit distance 4. Total number of such departments. 5. Fixed departments Number of such departments Location of those departments. 6. Area of departments.
  • 47. CRAFT algorithm 1. Input. 2. Obtain the departments centroid. 3. Calculate the inter department rectilinear distance. 4. Calculate the initial cost of layout by multiplying flow matrix, cost matrix , distance matrix. 5. CRAFT then consider all the possible two ways or three way department based on Common border or equal area criterion and identifies the best “exchange”. 6. Update the layout and calculate the new department centroid. 7. The above procedure is repeated until no further reduction in the cost can be Obtained.
  • 48.  Systematic Layout Planning Procedure (SLP)  An organize approach developed by Muther.  Received considerable publicity due to the success derived from its application solving a large variety of layout problems.  Referred to as systematic layout planning(SLP).  From the figure, clear that once the appropriate information is gathered, a flow analysis can be combined with an activity analysis to develop the relationship diagram.  The space relationship diagram is constructed by combining space considerations with the relationship diagram.  Based on the space-relation diagram, modifying considerations and practical limitations, a number of alternative layouts are designed and evaluated.
  • 49. Fig. Systematic layout planning procedure
  • 50.  Collected Data: 1. Initial layout.  I measured all area in meters by using Freemans open reel fibre measuring tape. Fig. Freemans open reel fibre measuring tape  I prepared layout in AUTOCAD 2018 Shown in Figure 9.
  • 52. 2. Area of department From the Initial layout I Prepared the list of department area. Table. List of Area
  • 53. 3. Total Number of department: 13 4. Flow Matrix  For number of trip per day I need a data from Inward and outward register. From the colour and non consumable store’s inward register I obtain how many trips or delivery of material is received from receiving area to receiving store (Color and non consumable store and Electrical store , Fabrication area) per day.  I take in consider maximum trip per day in a month.
  • 54. 7 14 19 17 14 13 9 9 9 14 6 27 11 14 8 14 29-Apr-17 31-May-17 30-Jun-17 31-Aug-17 30-Sep-17 31-Oct-17 30-Nov-17 30-Dec-17 31-Jan-18 16-Feb-18 31-Mar-18 26-Apr-18 31-May-18 30-Jun-18 31-Jul-18 30-Aug-18 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 No.of trip No.of trip Fig. No. of trips
  • 55.  From the above observation, I consider average 14 trips. From those trips I obtain how many trips required for unloading material by Workers.  From the Inward material I take the following data for obtain trips between Receiving area and other Receiving store like Color and Non consumable store and Electrical store, Fabrication area which it is shown in below table.
  • 56. Table. Material received by receiving store
  • 57.  From the receiving area to Lathe department, I obtained trips from inward material store which it is shown in table . Table. Material inward register in Lathe department
  • 58.  For obtained trips between Color and Non consumable store and other area like Press/Drill/Painting area, Assembly area, I take data from material withdrawal register which it used in Color and Non consumable store by store in-charge. It is shown in table . Table. Material withdraw from Color and Non consumable store
  • 59.  For obtained trips between Machines tools store and Plate cutting area, Assembly area, Press/Drill/Painting area and Sheare/Bending/Drill Machine area, I take data from material withdrawal register in Machine tool store which it is shown in table.
  • 60. Table. Material withdraw from Machine tool store
  • 61.  They haven’t material withdrawal register for Electrical store. Further I visited assembly area for obtain material movement between Assembly area and other department like office, electrical store, Press/Drill/Painting area, Plate cutting area, Sheare/Bending/Drill machine area, Lathe department, Storage of ready component/semi finished area and Dispatch area.  Also I noted down time for trips between Sheare/Bending/Drill machine area and Press/Drill/Painting area, Assembly area. Also I understand purpose of tools by asking question to worker for obtaining flow material.  Based on data I obtained flow matrix shown in below table.
  • 63. 5. Cost matrix  For that cost matrix, I observed that Supplier is supplying raw material by using different resources like Truck, Mini Pickup Truck. Its material handling cost depends on Supplier, fuel consumption and Driver salary not on company. But Material unloading from different resources depends on Company.  I take following data from company:  Worker Salary/Month – Rs.7500  Working day – 26  Worker Salary/Day – Rs.288.46  Working Hours/Day – 8 Hr  Worker Salary/Working hour – Rs.36.06  Office Staff Salary & Store in-charge Salary/Month – Rs.12000  Office Staff Salary & Store in-charge Salary/Day – Rs.461.54  Office Staff Salary & Store in- charge Salary/Working hour – Rs.57.69
  • 64.  From Receiving area to Color and Non consumable store:  Worker required - 1 worker  Trips – 15 trips required for unloading 21 units of material  Worker Salary/Working hours – Rs. 36.06  Equipment used for Time Measurement - Stop watch Table. Cost analysis for trip from Receiving area to Color and Non consumable store
  • 65. Cost / Trip = 1.293 ÷ 15= Rs. 0.086  From Receiving area to Electrical store:  Worker required - 2 worker  Trips – 3  Worker Salary/Working hours – Rs. 36.06  Equipment used for Time Measurement - Stop watch Table. Cost analysis for trip from Receiving area to Electrical store Cost / Trip = 0.81 ÷ 3= Rs. 0.27
  • 66.  From Receiving area to Lathe Machine Department:  Worker required - 1 worker  Trips – 4 trips for unloading material  Worker Salary/Working hours – Rs. 36.06  Equipment used for Time Measurement - Stop watch Table. Cost analysis from Receiving area to Lathe Machine Department Cost / Trip = 0.405 ÷ 4 = Rs. 0.10
  • 67.  From Receiving area to Assembly or Fabrication area:  From Receiving area to Assembly or Fabrication area, I observed that 4 trips received from Receiving area. In 4 trips I observed that 10 trip is required for unloading material. 10 Tonne EOT crane is used for unloading material.  I take following data from the company:  Working days – 26  Working hours/Day - 8  Unit consumed by 10 Tonne EOT Crane/Month – 3500 Unit  Unit consumed by 10 Tonne EOT Crane/Working Day – 134.61 Unit  Unit consumed by 10 Tonne EOT Crane/Working hours – 16.83 Unit  1 Unit = Rs.8  Equipment used for Time measurement – Stop watch  Worker Salary/Working Hours – Rs.36.06  Crane Operator Salary/Working Hours – Rs.36.06
  • 68.  Also used some formula to found Material handling cost for unloading material by crane.  MH Cost = Crane operator Salary (for movement time) + Cost of unit consumed by Crane (for movement time) + Worker Salary (for movement time)  Crane operator Salary (for movement time) = Crane operator Salary/Working Hours × Movement Time (Hr)  Worker Salary (for movement time) = Worker Salary/Working Hours × Movement Time (Hr)  Cost of unit consumed by Crane (for movement time) = Unit cost × Unit consumed for movement time (Hr)
  • 69. Table. Cost analysis for trips from Receiving area to Assembly or Fabrication area
  • 70.  Crane operator Salary for movement time per trips - Rs.0.506  Worker Salary for movement time per trips - Rs.0.506  Cost of Crane for movement time per trips - Rs.1.89  Total cost for unloading material per trips - Rs.2.902  From Office to Color and Non consumable store:  Trips – 5 trips  Equipment used for Time Measurement – Stop watch  Material carrying – list of raw material Table. Cost analysis for trips from Office to Color and Non consumable store Cost / Trips = 1.13 ÷ 5 = Rs. 0.226
  • 71.  From Office to Electrical store:  Trips – 2 trips  Equipment used for Time Measurement – Stop watch  Material carrying – list of raw material  Office Staff Salary/Working Hours – Rs.57.69 Cost / Trip = 0.59 ÷ 2 = Rs. 0.295 Table. Cost analysis for trips from Office to Electrical store
  • 72.  From Office to Lathe Machine Department:  Trips – 1 trip  Equipment used for Time Measurement – Stop watch  Movement Time – 3 Min 40 Sec (0.0575 Hr)  Office Staff Salary/Working hour – Rs.57.69  Cost/Trip = [57.69 × 0.0575] ÷ 1 = Rs.3.32  From Office to Assembly or Fabrication area:  Trip - 3 Trips required for carrying Design Drawing sheet, Inspection sheet  Equipment used for Time Measurement – Stop watch Cost/Trip = 1.466 ÷ 3 = Rs.0.49 Table. Cost analysis for trips from Office to Assembly or Fabrication area
  • 73.  From Color and Non consumable store to Office:  Trip - 3 Trips required for carrying Register file and other file by Store-In- Charge  Equipment used for Time Measurement – Stop watch  Store-In-Charge Salary/Working Hours - Rs.57.69 Cost/Trip = 0.7 ÷ 3 = Rs.0.23 Table. Cost analysis for trips from Color and Non consumable store to Office
  • 74.  From Color and Non consumable store to Machine Tool Store:  Trip - 3 Trips required for carrying Register file and other file by Store-In- Charge  Equipment used for Time Measurement – Stop watch  Worker Salary/Working hours – Rs.36.06 Cost/Trip = 0.608 ÷ 3 = Rs.0.20 Table. Cost analysis for trips from Color and Non consumable store to Machine Tool store
  • 75.  From Color and Non consumable store to Press/Drill/Painting area:  Trips – 2 trips per day for carrying material by worker  Equipment used for Time Measurement – Stop watch  Worker Salary/Working Hours – Rs.36.06 Cost/Trip = 0.201 ÷ 2 = Rs.0.10 Table. Cost analysis for trips from Color and Non consumable store to Press/Drill/Painting area
  • 76.  From Color and Non consumable store to Assembly or Fabrication area:  Trips – 2 trips per day for carrying material like key, bearing  Equipment used for Time Measurement – Stop watch  Worker Salary/Working Hours – Rs.36.06 Cost/Trips = 0.31 ÷ 2 = Rs.0.155 Table. Cost analysis for trips from Color and Non consumable store to Assembly or Fabrication area
  • 77.  From Electrical Store to Office:  Trips - 2 trips required for carrying register file by Store-In-Charge  Equipment used for Time Measurement – Stop watch  Store-In-Charge Salary/Working Hours – Rs.57.69 Cost/Trips = 0.61 ÷ 2 = Rs.0.305 Table. Cost analysis for trips from Electrical Store to Office
  • 78.  From Electrical store to Machine Tool store:  Trips- 1 trip for carrying material by workers  Equipment used for Time Measurement – Stop watch  Movement Time – 0 Min 13 Sec  Movement Time (Hr) – 0.0022 Hr  Cost = Worker Salary per working hour × Movement Time (Hr) = 36.06 × 0.0022 = Rs.0.079  Cost/Trip = 0.079 ÷ 1 = Rs.0.079
  • 79.  From Electrical store to Assembly or Fabrication area:  Trips - 3 trips required by worker  Equipment used for Time Measurement – Stop watch  Equipment used for Material handling – Hydraulic Pallet truck  Worker Salary/Working Hours – Rs.36.06 Cost/Trips = 0.84 ÷ 3 = Rs.0.28 Table. Cost analysis for trips from Electrical store to Assembly or Fabrication area
  • 80.  From Machine Tool store to Office:  Trips- 2 trips required for carrying register file or other material by Store-In- Charge  Equipment used for Time Measurement – Stop watch  Store-In-Charge Salary/Working Hours – Rs.57.69 Cost/Trip = 1.08 ÷ 2 = Rs.0.54 Table. Cost analysis for trips from Machine Tool store to Office
  • 81.  From Machine Tool store to Electrical store:  Trips- 1trip required for movement of material by worker  Equipment used for Time Measurement – Stop watch  Movement Time – 0 Min 14 Sec  Movement Time (Hr) – 0.0023 Hr  Worker Salary/Working hours – Rs.36.06  Cost = Worker Salary/ Working hours × Movement Time (Hr)  = 36.06 × 0.0023 = Rs.0.083  Cost/Trip = 0.083 ÷ 1 = Rs.0.083
  • 82.  From Machine Tool store to Plate cutting area:  Trips- 3 trips required for carrying material by worker  Equipment used for Time Measurement – Stop watch  Worker Salary/Working Hours – Rs.36.06 Cost/Trips = 1.76 ÷ 3 = 0.59 Table. Cost analysis for trips from Machine Tool store to Plate cutting area
  • 83.  From Machine Tool store to Press/Drill/Painting area:  Trips- 5 trips required for carrying material by worker  Equipment used for Time Measurement – Stop watch  Worker Salary/Working Hours – Rs.36.06 Cost/Trip = 0.75 ÷ 5 = 0.15 Table. Cost analysis for trips from Machine tool store to Press/Drill/Painting area
  • 84.  From Machine Tool store to Assembly or Fabrication area:  Trips- 19 trips required for carrying material by worker  Equipment used for Time Measurement – Stop watch  Worker Salary/Working Hours – Rs.36.06
  • 85. Table. Cost analysis for trips from Machine Tool store to Assembly or Fabrication area
  • 86. Cost/Trip = 2.81 ÷ 19 = Rs.0.15  From Plate cutting area to Machine Tool store:  Trips- 3 trips required for carrying material by worker  Equipment used for Time Measurement – Stop watch  Worker Salary/Working Hours – Rs.36.06 Cost/Trip = 2.01 ÷ 3 = Rs.0.67 Table. Cost analysis for trips from Plate cutting area to Machine Tool Store
  • 87.  From Plate cutting area to Assembly or Fabrication area:  Trips - 1 trip.  Equipment used for Time measurement - Stop watch.  Equipment used for material handling - Wheel cart  Worker required - 3 Workers  Movement Time – 4 Min 10 Sec  Movement Time (Hr) – 0.068  Worker Salary/Working hours – Rs.36.06  3 Worker Salary/Working hours – Rs.108.18  Cost = Worker Salary/Working hours × Movement time (Hr) = 108.18 × 0.068 = Rs.7.35  Cost/Trip = 7.35 ÷ 1 = Rs.7.35
  • 88.  From Sheare/Bending/Drill Machine area to Press/Drill/Painting area:  I obtain 1 trip by using 10 Tonne EOT Crane and Hydraulic pallet truck.  But here, I also observed that they are loading material on Hydraulic pallet truck by using 5 tonne Ganity crane. But Movement of Crane in Sheare/Bending/Drill Machine area doesn’t depend on Material handling cost between two departments. So Here, I also observed that Hydraulic pallet truck is used for carrying material from Sheare/Bending/Drill Machine area to Assembly or Fabrication area.  In Assembly or Fabrication area, they are used 10 Tonne EOT Crane. From Assembly or Fabrication area to Press/Drill/Painting area, they are used Hydraulic pallet truck for material handling.  I measured movement time for each equipment by using stop watch.
  • 89.  Unit consumed by 10 Tonne EOT Crane/Month – 3500 Unit  Unit consumed by 10 Tonne EOT Crane/Working Day – 134.61 Unit  Unit consumed by 10 Tonne EOT Crane/Working hours – 16.83 Unit  1 Unit = Rs.8  For Hydraulic pallet Truck:  Movement Time for Pallet truck – 0 Min 34 Sec (0.0057 Hr)  Worker Salary/Working hour – Rs.36.06  Cost = Worker Salary/ Working hour × Movement Time (Hr)  = 36.06 × 0.0057 = Rs.0.20
  • 90.  For 10 Tonne EOT Crane:  Movement Time – 2 Min 10 Sec (0.035 Hr)  Unit consumed for Movement Time = Unit consumed per working hour× Movement Time = 16.83 × 0.035 = 0.58905 Unit  1 Unit – Rs.8  0.58905 Unit = Rs.4.71  Crane Operator Salary (for 0.035 Hr) – Rs.1.26  Worker Salary (for 0.035 Hr) – Rs.1.26  For Hydraulic Pallet Trucks:  Movement Time – 0 Min 39 Sec (0.0065 Hr)  Cost = Worker Salary/Working hour × Movement Time (Hr) = 36.06 × 0.0065  Cost = Rs.0.24
  • 91.  Hence, The Transportation cost from Sheare/Bending/Drill Machine area to Press/Drill/Painting area is,  C= Rs.0.20 + Rs.4.71+ Rs.1.26 +Rs.1.26+Rs.0.24 = Rs.7.67  Cost for 1 trip = 7.67 ÷ 1 = Rs.7.67  From Sheare/Bending/Drill Machine area to Assembly or Fabrication area:  Trips- 4 trips required for carrying material by worker  Equipment used for Time Measurement – Stop watch  Equipment used for Material handling – Hydraulic Pallet truck Table. Cost Analysis for trips from Sheare/Bending/Drill Machine area to Assembly or Fabrication area
  • 92. Cost/Trip = 0.79 ÷ 4 = Rs.0.20  From Press/Drill/Painting area to Machine Tool store:  Trips- 2 trips required for carrying material by worker  Equipment used for Time Measurement – Stop watch  Worker Salary/Working Hours – Rs.36.06 Cost/Trip = 0.28 ÷ 2 = Rs.0.14 Table. Cost analysis for trips from Press/Drill/Painting area to Machine Tool store
  • 93.  From Press/Drill/Painting area to Sheare/Bending/Drill Machine area:  Here, I observed that same procedure follow from Press/Drill/Painting area to Sheare/Bending/Drill Machine area like as from Sheare/Bending/Drill Machine area to Press/Drill/Painting area.  I obtain 1 Trip from Press/Drill/Painting area.  For the Material Handling, They are used Hydraulic Pallet truck and 10 Tonne EOT Crane.  I measured time for trip by using stop watch.  For Hydraulic Pallet truck:  Movement Time for Hydraulic Pallet truck – 0 Min 33 Sec (0.0055 Hr)  Worker Salary/Working hour – Rs.36.06  Cost = Worker Salary/Working hour × Movement Time (Hr) = 36.06 × 0.0055 = Rs.0.20
  • 94.  For 10 Tonne EOT Crane:  Movement Time – 2 Min 18 Sec (0.036 Hr)  Unit consumed for Movement Time = Unit consumed per working hour× Movement Time = 16.83 × 0.036 = 0.60588 Unit  1 Unit – Rs.8  0.60588 Unit = Rs.4.84  Crane Operator Salary (for 0.036 Hr) – Rs.1.29  Worker Salary (for 0.036 Hr) – Rs.1.29  For Hydraulic Pallet Trucks:  Movement Time – 0 Min 31 Sec (0.0052 Hr)  Cost = Worker Salary/Working hour × Movement Time (Hr) = 36.06 × 0.0052  Cost = Rs.0.19
  • 95.  The Transportation cost from Sheare/Bending/Drill Machine area to Press/Drill/Painting area is,  C= Rs.0.20 + Rs.4.84+ Rs.1.29 + Rs.1.29 + Rs.0.19 = Rs.7.81  Cost for 1 trip = 7.67 ÷ 1 = Rs.7.81  From Press/Drill/Painting area to Assembly or Fabrication area:  Trips- 4 trips required for carrying material by worker  Equipment used for Time Measurement – Stop watch  Equipment used for Material handling – Hydraulic Pallet truck Table. Cost analysis for trips from Press/Drill/Painting area to Assembly or Fabrication area
  • 96. Cost/Trip = 0.81 ÷ 4 = Rs.0.20  From Lathe Machine Department to Office:  Trips- 1 trips required for carrying material by Lathe Machine Department-In- Charge  Equipment used for Time Measurement – Stop watch  Movement Time – 3 Min 42 Sec (0.057 Hr)  Lathe Machine Department In -Charge Salary/Working hour – Rs.57.69  Cost/Trip = [57.69 × 0.057] ÷ 1 = Rs.3.29  From Lathe Machine Department to Assembly or Fabrication area:  Trips- 3 trips for carrying material by worker  Equipment used for Time Measurement – Stop watch  Equipment used for Material handling – Hydraulic Pallet truck  Worker Salary/Working Hours – Rs.36.06
  • 97. Table. Cost analysis for trips from Lathe Machine Department to Assembly or Fabrication area Cost/Trip = 6.27 ÷ 3 = Rs.2.09
  • 98.  From Assembly or Fabrication area to Office:  Trips - 3 trips for carrying material like inspection sheet by Office staff  Equipment used for Time Measurement – Stop watch  Office Staff Salary/Working Hours – Rs.57.69 Cost/Trip = 0.348 ÷ 3 = Rs.0.12 Table. Cost analysis for trips from Assembly or Fabrication area to Office
  • 99.  From Assembly or Fabrication area to Machine Tool store:  Trips - 9 Trips per day for the returning Machine tools and other material by worker  Equipment used for Time Measurement – Stop watch Table. Cost analysis for trips from Assembly or Fabrication area to Machine Tool store
  • 100. Cost/Trip = 1.29 ÷ 9 = Rs.0.14  From Assembly or Fabrication area to Plate cutting area:  Trips - 1 trip.  Equipment used for Time measurement - Stop watch.  Equipment used for material handling - Wheel cart  Worker required - 3 Workers  Movement Time – 4 Min 13 Sec  Movement Time (Hr) – 0.069  Worker Salary/Working hours – Rs.36.06  3 Worker Salary/Working hours – Rs.108.18  Cost = Worker Salary/Working hours × Movement time (Hr) = 108.18 × 0.069 = Rs.7.46  Cost/Trip = 7.46 ÷ 1 = Rs.7.46
  • 101.  From Assembly or Fabrication area to Sheare/Bending/Drill machine area:  Trips - 2 trip.  Equipment used for Time measurement - Stop watch.  Equipment used for material handling – Hydraulic pallet truck  Worker Salary/Working Hours – Rs.36.06 Cost/Trip = 0.42 ÷ 2 = Rs.0.21 Table. Cost analysis for trips from Assembly area or Fabrication area to Sheare/Bending/Drill/Machine area
  • 102.  From Assembly or Fabrication area to Press/Drill/Painting area:  Trips - 3 trip.  Equipment used for Time measurement - Stop watch.  Equipment used for material handling – Hydraulic pallet truck  Worker Salary/Working Hours – Rs.36.06 Cost/Trip = 0.59 ÷ 3 = Rs.0.20 Table. Cost analysis for trips from Assembly or Fabrication area to Press/Drill/Painting area
  • 103.  Based on that I obtain cost matrix shown in below table Table. Cost matrix
  • 104.  Procedure: 1. Centroid of all the departments in the initial layout are calculated and presented in figure.  I put layout on coordinate system.  The right side of the layout is assumed as x axis and the upper side of the layout is assumed as the y axis.  In the Initial layout, Dispatch area is unshaped area.  Hence, I divided Dispatch area in to regular 5 shape
  • 105. Fig. Dispatch unshaped area Fig. Dispatch in divided shaped area
  • 106.  I obtain centroid by using formula, Where, x = X coordinate of the centroid of the ith portion of the department y = Y coordinate of the centroid of the ith portion of the department. n= Number of regular shaped portions in the department. a= Area of the ith portion.
  • 107. Table. List of centroid
  • 108. 2. The distance between any two departments is represented by rectilinear distance between the centroid of the departments. Dij = Mod [Xi - Xj] + Mod [Yi – Yj] Where (Xi, Yi) and (Xj, Yj) are the centroid of the departments i and j, respectively.  Green color for distance travelled by material in Distance matrix
  • 109.  Distance matrix is shown below. Table. Distance matrix
  • 110. 3. Compute initial material handling cost by multiply distance matrix, flow matrix, cost matrix by using below formula. Table. Initial cost matrix
  • 111.  Material handling cost = Rs. 4450.34 / day.
  • 112. 4. Interchange department pair wise by interchanging centroid based on common border and common area criterion. (a) Interchanging Receiving area and office based on common border. And find distance matrix using formula shown in step 2. Table. Distance matrix for new layout 1
  • 113.  Multiply Distance matrix for new layout 1 with cost matrix, and flow matrix by using formula shown in step 3 for finding material handling cost for new layout 1. Table. Material Handling cost matrix for new layout 1
  • 114. (b) Interchange Receiving area and Color and Non consumable store based on common border. And find Distance matrix by using formula shown in step 2. Distance matrix is shown in below table. Table. Distance matrix for new layout 2
  • 115.  Multiply Distance matrix for new layout 2 with cost matrix and flow matrix by using formula shown in step 3 for finding material handling cost for new layout 2 shown in below table. Table. Material handling cost matrix for new layout 2
  • 116. (c) Interchange Receiving area and Electrical store based on common border. And find Distance matrix by using formula shown in step 2. Distance matrix is shown in below table. Table. Distance matrix for new layout 3
  • 117.  Multiply Distance matrix for new layout 3 with cost matrix, flow matrix by using formula shown in step 3 for finding material handling cost for new layout 3 shown in below table. Table. Material handling cost matrix for new layout 3
  • 118. (d) Interchange Receiving area and Machine tool store based on common border and find distance matrix by using formula shown in step 2.Distance matrix is shown in below table. Table. Distance matrix for new layout 4
  • 119.  Multiply Distance matrix for new layout 4 with cost matrix, flow matrix by using formula shown in step 3 for finding material handling cost for new layout 4 shown in below table. Table. Material handling cost matrix for new layout 4
  • 120. (e) Interchange Receiving area and Dispatch area based on common border and find distance matrix by using formula shown in step 2.Distance matrix is shown in below table. Table. Distance matrix for new layout 5
  • 121.  Multiply Distance matrix for new layout 5 with cost matrix, flow matrix by using formula shown in step 3 for finding material handling cost for new layout 5 shown in below table. Table. Material handling cost matrix for new layout 5
  • 122. (f) Interchange Office and Color and Non consumable store based on common border and find distance matrix by using formula shown in step 2. Distance matrix is shown in below table. Table. Distance matrix for new layout 6
  • 123.  Multiply Distance matrix for new layout 6 with cost matrix, flow matrix by using formula shown in step 3 for finding material handling cost for new layout 6 shown in below table. Table. Material handling cost matrix for new layout 6
  • 124. (g) Interchange Office and Press/Drill/Painting area based on common border and find distance matrix using formula shown in step 2.Distance matrix is shown in below table. Table . Distance matrix for new layout 7
  • 125.  Multiply Distance matrix for new layout 7 with cost matrix, flow matrix by using formula shown in step 3 for finding material handling cost for new layout 7 shown in below table. Table. Material handling cost matrix for new layout 7
  • 126. (h) Interchange Office and Assembly or Fabrication area based on common border and find distance matrix using formula shown in step 2.Distance matrix is shown in below table. Table . Distance matrix for new layout 8
  • 127.  Multiply Distance matrix for new layout 8 with cost matrix, flow matrix by using formula shown in step 3 for finding material handling cost for new layout 8 shown in below table. Table. Material handling cost matrix for new layout 8
  • 128. (i) Interchange Color and Non consumable store and Electrical store based on common border and find distance matrix using formula shown in step 2.Distance matrix is shown in below table. Table. Distance matrix for new layout 9
  • 129.  Multiply Distance matrix for new layout 9 with cost matrix, flow matrix by using formula shown in step 3 for finding material handling cost for new layout 9 shown in below table. Table. Material handling cost matrix for new layout 9
  • 130. (j) Interchange Color and Non consumable store and Press/Drill/Painting area based on common border and find distance matrix using formula shown in step 2.Distance matrix is shown in below table. Table. Distance matrix for new layout 10
  • 131.  Multiply Distance matrix for new layout 10 with cost matrix, flow matrix by using formula shown in step 3 for finding material handling cost for new layout 10 shown in below table. Table. Material handling cost for new layout 10
  • 132. (k) Interchange Electrical store and Machine tool store based on common border and find distance matrix using formula shown in step 2.Distance matrix is shown in below table. Table . Distance matrix for new layout 11
  • 133.  Multiply Distance matrix for new layout 11 with cost matrix, flow matrix by using formula shown in step 3 for finding material handling cost for new layout 11 shown in below table. Table. Material handling cost matrix for new layout 11
  • 134. (l) Interchange Electrical store and Press/Drill/Painting area based on common border and find distance matrix using formula shown in step 2. Distance matrix is shown in below table. Table. Distance matrix for new layout 12
  • 135.  Multiply Distance matrix for new layout 12 with cost matrix, flow matrix by using formula shown in step 3 for finding material handling cost for new layout 12 shown in below table. Table. Material handling cost matrix for new layout 12
  • 136. (m) Interchange Machine tool store and Press/Drill/Painting area based on common border and find distance matrix using formula shown in step 2. Distance matrix is shown in below table. Table. Distance matrix for new layout 13
  • 137.  Multiply Distance matrix for new layout 13 with cost matrix, flow matrix by using formula shown in step 3 for finding material handling cost for new layout 13 shown in below table. Table. Material handling cost matrix for new layout 13
  • 138. (n) Interchange Machine tool store and Assembly or Fabrication area based on common border and find distance matrix using formula shown in step 2. Distance matrix is shown in below table. Table. Distance matrix for new layout 14
  • 139.  Multiply Distance matrix for new layout 14 with cost matrix, flow matrix by using formula shown in step 3 for finding material handling cost for new layout 14 shown in below table. Table. Material handling cost matrix for new layout 14
  • 140. (o) Interchange Machine tool store and Packaging department based on common border and find distance matrix using formula shown in step 2. Distance matrix is shown in below table. Table. Distance matrix for new layout 15
  • 141.  Multiply Distance matrix for new layout 15 with cost matrix, flow matrix by using formula shown in step 3 for finding material handling cost for new layout 15 shown in below table. Table. Material handling cost matrix for new layout 15
  • 142. (p) Interchange Machine tool store and Dispatch area based on common border and find distance matrix using formula shown in step 2. Distance matrix is shown in below table. Table. Distance matrix for new layout 16
  • 143.  Multiply Distance matrix for new layout 16 with cost matrix, flow matrix by using formula shown in step 3 for finding material handling cost for new layout 16 shown in below table. Table. Material handling cost matrix for new layout 16
  • 144. (q) Interchange Packaging Department and Assembly and Fabrication area based on common border and find distance matrix using formula shown in step 2. Distance matrix is shown in below table. Table. Distance matrix for new layout 17
  • 145.  Multiply Distance matrix for new layout 17 with cost matrix, flow matrix by using formula shown in step 3 for finding material handling cost for new layout 17 shown in below figure. Table. Material handling cost matrix for new layout 17
  • 146. (r) Interchange Packaging Department and Dispatch area based on common border and find distance matrix using formula shown in step 2. Distance matrix is shown in below table. Table. Distance matrix for new layout 18
  • 147.  Multiply Distance matrix for new layout 18 with cost matrix, flow matrix by using formula shown in step 3 for finding material handling cost for new layout 18 shown in below table. Table. Material handling cost matrix for new layout 18
  • 148. (s) Interchange Press/Drill/Painting area and Assembly or Fabrication area based on common border and find distance matrix using formula shown in step 2. Distance matrix is shown in below table. Table. Distance matrix for new layout 19
  • 149.  Multiply Distance matrix for new layout 19 with cost matrix, flow matrix by using formula shown in step 3 for finding material handling cost for new layout 19 shown in below table. Table. Material handling cost matrix for new layout 19
  • 150. (t) Interchange Assembly or Fabrication area and Sheare/Bending/Drill machine area based on common border and find distance matrix using formula shown in step 2. Distance matrix is shown in below table. Table. Distance matrix for new layout 20
  • 151.  Multiply Distance matrix for new layout 20 with cost matrix, flow matrix by using formula shown in step 3 for finding material handling cost for new layout 20 shown in below table. Table. Material handling cost matrix for new layout 20
  • 152. (u) Interchange Assembly or Fabrication area and Dispatch area based on common border and find distance matrix using formula shown in step 2. Distance matrix is shown in below table. Table. Distance matrix for new layout 21
  • 153.  Multiply Distance matrix for new layout 21 with cost matrix, flow matrix by using formula shown in step 3 for finding material handling cost for new layout 21 shown in below table. Table. Material handling cost matrix for new layout 21
  • 154. (v) Interchange Sheare/Bending/Drill machine area and Dispatch area based on common border and find distance matrix using formula shown in step 2. Distance matrix is shown in below table. Table. Distance matrix for new layout 22
  • 155.  Multiply Distance matrix for new layout 22 with cost matrix, flow matrix by using formula shown in step 3 for finding material handling cost for new layout 22 shown in below table. Table. Material handling cost matrix for new layout 22
  • 156. (w) Interchange Sheare/Bending/Drill machine area and Storage of ready component/ Semi finished product based on common border and find distance matrix using formula shown in step 2. Distance matrix is shown in below table. Table. Distance matrix for new layout 23
  • 157.  Multiply Distance matrix for new layout 23 with cost matrix, flow matrix by using formula shown in step 3 for finding material handling cost for new layout 23 shown in below table. Table. Material handling cost matrix for new layout 23
  • 158. (x) Interchange Lathe machine Department and Dispatch area based on common border and find distance matrix using formula shown in step 2. Distance matrix is shown in below table. Table. Distance matrix for new layout 24
  • 159.  Multiply Distance matrix for new layout 24 with cost matrix, flow matrix by using formula shown in step 3 for finding material handling cost for new layout 24 shown in below table. Table. Material handling cost matrix for new layout 24
  • 160. (y) Interchange Plate cutting area and Dispatch area based on common border and find distance matrix using formula shown in step 2. Distance matrix is shown in below table. Table. Distance matrix for new layout 25
  • 161.  Multiply Distance matrix for new layout 25 with cost matrix, flow matrix by using formula shown in step 3 for finding material handling cost for new layout 25 shown in below table. Table. Material handling cost matrix for new layout 25
  • 162.  5. From the observation, I found that Layout 19 is best new optimum layout. Print the new Layout by using AUTOCAD 2018. Fig. New Layout
  • 163. 6. I observed that Size of Plate cutting area, Dispatch area, Sheare/Bending/Drill Machine area, Press/Drill/Painting area is more in new layout. Assembly or Fabrication area is small. So I used Space- relationship analysis of SLP for utilization of space. Table. Space relationship analysis
  • 164. 7. Based on Space-relationship analysis; I done some modification in new layout. Print the new modified layout by using AUTOCAD 2018. Table. New modified layout
  • 165. 8. Update the centroid for New modified layout.  Here, Receiving area, Office and Dispatch area is an unshaped area.  I divided unshaped area in to regular shaped area.  Calculate centroid for Receiving area, Office and Dispatch area by using formula mention in step-1 in procedure.
  • 166.  Receiving area: Fig. Receiving unshaped area Fig. Receiving unshaped area divided in shaped area
  • 167.  Office: Fig. Office unshaped area Fig. Office unshaped area divided in shaped area
  • 168.  Dispatch area: Fig. Dispatch unshaped area Fig. Dispatch unshaped area divided in shaped area
  • 169.  Updated centroid list is shown in below table. Table. Updated Centroid list
  • 170. 9. obtain Distance matrix for new modified layout by using formula mention in step-2 in Procedure.  Distance matrix for new modified layout is shown in below table. Table. Distance matrix for new modified layout
  • 171.  Multiply Distance matrix for new modified layout with Flow matrix and Cost matrix for obtaining Material handling cost for new modified layout.  Material handling cost for new modified layout is shown in below table. Table. Material handling cost matrix for new modified layout
  • 172. 10.Flow process chart is a process chart which shows the sequence of flow of all activities which occur while producing a product / component or executing a procedure.  Here, I prepared a Material type flow process chart for existing layout method and New modified layout method (Proposed layout method).
  • 173. Observation and Analysis  Material handling cost Fig. comparison of material handling cost by bar chart 0 1000 2000 3000 4000 5000 6000 7000 Material handling cost( In Rupees) Material handling cost( In Rupees)
  • 174.  Material handling cost Initial layout Rs. 4434.50 per day Layout 19 Rs.3727.83 per day
  • 175.  Further Applied Space relation ship analysis of SLP in Layout 19: 4450.34 3727.83 3677.19 Existing layout Layout 19 New modified layout Material handling cost Fig. Comparison of material handling cost by bar chart after SLP
  • 176.  Material handling distance Fig. comparison of material handling distance by bar chart 0 200 400 600 800 1000 1200 1400 1600 1800 2000 Material Handling Distance(Meters) Material Handling Distance(Meters)
  • 177.  Material handling distance  Further, Applied SLP for utilization of space in Layout 19: Initial layout 1395.975 Meter Layout 19 1331.525 Meter
  • 178.  Material handling distance: 1395.975 1331.525 1312.38 Existing layout New layout 19 New modified layout Material handling distance(Meter) Fig. Comparison of Material handling distance by bar chart
  • 179.  Flow process chart Ratio Analysis: Table. Summary of activity for flow process chart
  • 180.  From the summary of activity for flow process chart, it was found that distance is reduce from 399.31M to 364.91 M.  Detail of the FPC of the existing layout method are summarized below:  Total number of activities(y) ₌ 41  Total number of operations and inspection (x) ₌ 14  Ratio ₌ 14/41 ₌ 0.34  Detail of the FPC of the proposed layout method are summarized below:  Total number of activities(y) ₌ 38  Total number of operations and inspection (x) ₌ 14  Ratio ₌ 14/41 ₌ 0.37  Reduction in distance ₌ 34.4 M
  • 182.  Cost – Benefit Analysis:  Systematic approach to estimating strengths and weakness of alternative used to determine option which provide the best approach to achieving benefits while preserving savings. Table. Comparison of material handling cost per year Layout Material handling cost/year Existing Layout Rs. 1,11,08,048.64 Layout 19 Rs.93,04,663.68 New Modified Layout Rs.91,78,266.24 •Net profit is found from company balance sheet
  • 183. Table. Cost- Benefit Analysis (Material handling cost)
  • 185. Result  After Applying CRAFT, I found that new layout 19 is best layout from observation and analysis.  Material handling cost is reduced from Rs. 4450.34 per day to Rs. 3727.83 per day. Material handling Distance is reduced from 1395.75 Meter to 1331.525 Meter.  Reduction in material handling cost = [(Existing layout cost - New layout cost) ×100] / Existing layout cost = [(4450.34 – 3727.83) ×100] / (4450.34) = 16.23%.  But here I observed that new layout 19 is not suggested because of unutilization of space. For the utilization of space, SLP is used for the further improvement.
  • 186.  After Applying Space-relationship analysis of SLP, I prepared new modified layout. I observed that Material handling cost is reduced from Rs.3727.83 per day to Rs.3677.19 per day.  Material handling distance is reduced from 1331.525 Meter to 1312.38 Meter.  Reduction in material handling cost = [(Existing layout cost - New layout cost) ×100] / Existing layout cost = [(4450.34 – 3677.19) ×100] / (4450.34) = 17.37 %.  From the result, I found that New modified layout is best layout for Proposed.
  • 187.  New Proposed layout: Fig . Proposed layout
  • 188.  From FPC ratio analysis, the ratio of proposed layout method > the ratio of existing layout method.  The proposed layout method is an improved one.  From Cost-Benefit analysis found that New modified layout is more profitable than existing layout. Table. Summary of result
  • 189.  The initial material handling cost is Rs.4450.34 per day.  CRAFT algorithm was applied and it was found that material handling cost is reduced to Rs.3727.83 per day(16.23%) after interchanging Press/Drill/Painting area and Assembly or Fabrication area.  SLP is used for further improvement by utilization of space and found that material handling cost is reduced to Rs.3677.19 per day(17.37%).  New modified layout is a best proposed layout to suggest.  Further benefits were:  Increase productivity  Low cost of product  Reduction in efforts by assembly workers. Conclusion
  • 190.  5s is a best lean tool to suggest for crane industry to make clean and tidy by removing obstacle and waste from floor space. Future Scope
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