Plant layout is a major concern for improvement of productivity in any organization. Here my main objective is to reduce material handling cost for crane manufacturing industry by optimizing plant layout. By using CRAFT, I optimize 16.23% of crane manufacturing industry plant layout.Further using space relationship analysis, I optimize 17.37% of crane manufacturing industry plant layout.
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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
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
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.
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.
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.
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.
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.
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
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.
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
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
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.
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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