FACILITY LAYOUT

4.1 Introduction to Facility Layout

Plant Layout, also known as layout of facility refers to the configuration of departments, work-
centres and equipment and machinery with focus on the flow of materials or work through the
production system.
Plant layout refers to the physical arrangement of production facilities. It is the configuration of
departments, work centres and equipment in the conversion process. It is a floor plan of the
physical facilities, which are used in production.
According to Moore “Plant layout is a plan of an optimum arrangement of facilities including
personnel, operating equipment, storage space, material handling equipment and all other sup-
porting services along with the design of best structure to contain all these facilities
Plant layout or facility layout means planning for location of all machines, equipments, utilities,
work stations, customer service areas, material storage areas, tool servicing areas, tool cribs,
aisles, rest rooms, lunch rooms, coffee/tea bays, offices, and computer rooms and also planning
for the patterns of flow of materials and people around, into and within the buildings. Layout
planning involves decisions about the physical arrangement of economic activity centres within a
facility. An economic activity centre can be anything that consumes space, a person or group of
people, a machine, a work station, a department, an aisle, a store room and so on. The goal or
layout planning is to allow workers and equipments to operate more effectively.
The questions to be addressed in layout planning are:
• How much space and capacity does each centre need?
• How should each center’s space be configured?
• What centres should the layout include?
• Where should each centre be located?
 The location of a centre has two dimensions:
• Absolute location or the particular space that the centre occupies within the facility.

4.2 Objectives of Plant Layout

The primary goal of the plant layout is to maximize the profit by arrangement of all the plant
facilities to the best advantage of total manufacturing of the product.
The objectives of plant layout are:
 i. Streamline the flow of materials through the plant.
ii. Facilitate the manufacturing process.
iii. Maintain high turnover of in-process inventory.
iv. Minimize materials handling and cost.
v. Effective utilization of men, equipment and space.
vi. Make effective utilization of cubic space.
vii. Flexibility of manufacturing operations and arrangements.
viii. Provide for employee convenience, safety and comfort.
ix. Minimize investment in equipment.
x. Minimize overall production time.
xi. Maintain flexibility of arrangement and operation.
xii. Facilitate the organizational structure.

4.3 Criteria for a good layout

i. Maximum flexibility: A good layout will be one which can be rapidly modified to meet
changing circumstances.
ii. Maximum co-ordination: Entry into, and disposal from, any department or functional
area should be in such a manner that it must convenient to the issuing or receiving depart-
ments. Lay out requires to be considered as a whole and not partially.
iii. Maximum use of volume: Facilities should be considered as cubic devices and max-
imum use made of the volume available. This principle is particularly useful in stores,
where goods can be stacked at considerable heights without inconvenience, especially if
modern lifting devices are used. In offices, racking can be installed to minimize use of
floor space.
iv. Maximum visibility: All the people and materials should be readily observable at all the
time; there should be no ‘hidden places’ into which goods or information can get mislaid.
v. Maximum accessibility: All servicing and maintenance points should be readily access-
ible. For example, equipment should not be placed against a wall in such a manner that
necessary maintenance cannot easily be carried out.
vi. Minimum distance: All movements should be both necessary and direct. Handling work
adds to cost but does not increase value; consequently any unnecessary or indirect move-
ments should be avoided.
vii. Minimum handling: The best handling of material and information is no handling, but
where it is unavoidable it should be reduced to a minimum by the use of whatever
devices are most appropriate.
viii. Minimum discomfort: poor lighting, excessive sunlight, heat, noise, vibration and
smells should be minimized and if possible counteracted.
ix. Inherent safety
x. Maximum security
xi. Efficient process flow

4.4 Advantages of a good layout

i. The overall process time and cost will be minimized by reducing unnecessary handling
and movement.
ii. Supervision and control will be simplified by the elimination of ‘hidden corners’
iii. Changes in the programmers will be most readily accommodated.
iv. Total output from a given facility will be as high as possible by making the maximum ef-
fective use of available space and resources.
v. A feeling of unity among employees will be encouraged by avoiding unnecessary segreg-
ation.
vi. Quality of the products or service will be sustained by safer and more effective methods
of operation.

4.5 Factors influencing layout choices:

Primarily the layout of a plant is influenced by the relationship among materials, machinery and
men. Other factors influencing layout are type of product, type of workers, the type of industry,
management policies etc.
The building should designed so as to provide a number of facilities such as lunch rooms,
cafeteria, locker rooms, crèches, libraries, first-aid and ambulance rooms, materials handling
facilities, heating, ventilation, air-conditioning, etc. Following factors are considerations in the
designing of a factory building:
i. Location: The size and type of the site selected for the plant, influences the type of
buildings (single story or multi story) which in turn influences the layout design. Also,
the location of the plant determines the mode of transportation from and into the plant
 (such as by goods trains, truck, or ships) and the layout should provide facilities for
mode of transport used. Also, the layout should provide for storage of fuel, raw materi-
als, future expansion needs, power generation requirements etc.
ii. Managerial Policies: regarding volume of production, provision for future expansion,
extent of automation, make-or-buy decisions, speed of delivery of goods to customers,
purchasing and inventory policies and personnel policies influence the plant layout de-
sign.
iii. Product and equipment: The type of product that is to be manufactured, determines
column-spacing, type of floor, ceiling, heating and air-conditioning. A product of a tem-
porary nature may call for a less expensive building and that would be a product of a
more permanent nature. Similarly, a heavy product demands a far more different build-
ing than a product which is light in weight.
iv. Expansibility and Flexibility: Growth and expansion are natural to any manufacturing
enterprises. They are the indicators of the prosperity of a business. The following factors
should be borne in mind if the future expansion of the concern is to be provided for:
 The area of the land which is to be acquired should be large enough to provide for the fu-
ture expansion needs of the firm and accommodate current needs.
 The design of the building should be in a rectangular shape. Rectangular shapes facilitate
expansion on any side.
 If vertical expansion is expected, strong foundations, supporters and columns must be
provided.
 If horizontal expansion is expected, the side walls must be made non-load-bearing to
provide for easy removal.
v. Employee facilities and service area: Employee facilities must find a proper place in
the building design because they profoundly affect the morale, comfort and productivity.
The building plan should include facilities for lunch rooms, cafeteria, water coolers,
parking area and the like. The provision of some of these facilities is a legal requirement.
Others make good working conditions possible. And a good working condition is good
business.
vi. Security
Service areas, such as the tool room, the supervisor’s office, the maintenance room, receiving
and dispatching stations, the stock room and facilities for scrap disposal, should also be included
in the building design.

4.6 Plant Layout- Principles:

The layout selected in conformity with layout principles should be an ideal one. These principles
are:-
• Principle of Minimum Travel: Men and materials should travel the shortest distance be-
tween operations so as to avoid waste of labour and time and minimise the cost of materi -
als handling.
• Principle of Sequence: Machinery and operations should be arranged in a sequential or-
der. This principle is best achieved in product layout, and efforts should be made to have
it adopted in the process layout.
• Principle of Usage: Every unit of available space should be effectively utilised.
• Principle of Compactness: There should be a harmonious fusion of all the relevant fac-
tors so that the final layout looks well integrated and compact.
• Principle of Safety and Satisfaction: The layout should contain built in provisions for
safety for the workmen. It should also be planned on the basis of the comfort and conve -
nience of the workmen so that they feel satisfied.
• Principle of Flexibility: The layout should permit revisions with the least difficulty and
at minimum cost.
• Principle of Minimum Investment: The layout should result in savings in fixed capital
investment, not by avoiding installation of the necessary facilities but by an intensive, use
of available facilities.
4.7 Types of Layout
A layout essentially refers to the arranging and grouping of machines which are meant to pro -
duce goods. Grouping is done on different lines. The choice of a particular line depends on sev-
eral factors. The methods of grouping or the types of layout are:
(i) Process layout or functional layout or job shop layout; (ii) Product layout or line processing
layout or flow-line layout; (iii) Fixed position layout or static layout; (iv) Combination layout or
Hybrid layout.
Layouts can be classified into the following five categories:
• Process layout/functional/job shop layout
• Product layout/line processing/flow-line layout
• Combination layout/Hybrid layout
• Fixed position layout/static layout

1. Process Layout
Process layout is recommended for batch production. All machines performing similar type of
operations are grouped at one location in the process layout e.g., all lathes, milling machines, etc.
are grouped in the shop will be clustered in like groups. Thus, in process layout the arrangement
of facilities are grouped together according to their functions. Process layout is normally used
when the production volume is not sufficient to justify a product layout. Typically, job shops
employ process layouts due to the variety of products manufactured and their low production
volumes.
Advantages
i. In process layout machines are better utilized and fewer machines are required.
ii. Flexibility of equipment and personnel is possible in process layout.
iii. Lower investment on account of comparatively less number of machines and lower cost
of general purpose machines.
iv. Higher utilization of production facilities.
v. A high degree of flexibility with regards to work distribution to machineries and workers.
vi. The diversity of tasks and variety of job makes the job challenging and interesting.
vii. Supervisors will become highly knowledgeable about the functions under their depart-
ment.
Limitations
i. Backtracking and long movements may occur in the handling of materials thus, reducing
material handling efficiency.
ii. Material handling cannot be mechanized which adds to cost.
iii. Process time is prolonged which reduce the inventory turnover and increases the in pro-
cess inventory.
iv. Lowered productivity due to number of set-ups.
v. Throughput (time gap between in and out in the process) time is longer.
vi. Space and capital are tied up by work-in-process.

2. Product Layout
In this type of layout, machines and auxiliary services are located according to the processing
sequence of the product. If the volume of production of one or more products is large, the
facilities can be arranged to achieve efficient flow of materials and lower cost per unit. Special
purpose machines are used which perform the required function quickly and reliably.
The product layout is selected when the volume of production of a product is high such that a
separate production line to manufacture it can be justified. In a strict product layout, machines
are not shared by different products. Therefore, the production volume must be sufficient to
achieve satisfactory utilization of the equipment.
Advantages
i. The flow of product will be smooth and logical in flow lines.
ii. In-process inventory is less.
iii. Throughput time is less.
iv. Minimum material handling cost.
v. Simplified production, planning and control systems are possible.
vi. Less space is occupied by work transit and for temporary storage.
vii. Reduced material handling cost due to mechanized handling systems and straight flow.
viii. Perfect line balancing which eliminates bottlenecks and idle capacity.
ix. Manufacturing cycle is short due to uninterrupted flow of materials.
x. Small amount of work-in-process inventory.
xi. Unskilled workers can learn and manage the production.
Limitations
i. A breakdown of one machine in a product line may cause stoppages of machines in the
downstream of the line.
ii. A change in product design may require major alterations in the layout.
iii. The line output is decided by the bottleneck machine.
iv. Comparatively high investment in equipments is required.
v. Lack of flexibility. A change in product may require the facility modification.

3. Combination Layout
A combination of process and product layouts combines the advantages of both types of layouts.
A combination layout is possible where an item is being made in different types and sizes. Here
machinery is arranged in a process layout but the process grouping is then arranged in a sequence
to manufacture various types and sizes of products. It is to be noted that the sequence of
operations remains same with the variety of products and sizes.
Advantages
Group Technology layout can increase
i. Component standardization and rationalization.
ii. Reliability of estimates.
iii. Effective machine operation and productivity.
iv. Customer service.
It can decrease the
i. Paper work and overall production time.
ii. Work-in-progress and work movement.
iii. Overall cost.

Limitations
This type of layout may not be feasible for all situations. If the product mix is completely
dissimilar, then we may not have meaningful cell formation.

4. Fixed Position Layout

This is also called the project type of layout. In this type of layout, the material, or major
components remain in a fixed location and tools, machinery, men and other materials are brought
to this location. This type of layout is suitable when one or a few pieces of identical heavy
products are to be manufactured and when the assembly consists of large number of heavy parts,
the cost of transportation of these parts is very high.
Advantages
i. The major advantages of this type of layout are:
ii. Helps in job enlargement and upgrades the skills of the operators.
iii. The workers identify themselves with a product in which they take interest and pride in
doing the job.
iv. Greater flexibility with this type of layout.
v. Layout capital investment is lower.

4.8 Importance of layout

The importance of a layout can be described as under:
• Avoidance of Bottlenecks: Bottlenecks refer to any, place in a production process where
materials tend to pile up or produced at rates of speed less rapid than the previous or sub-
sequent operations. Bottlenecks are caused by inadequate machine capacity, inadequate
storage space or low speed on the part of the operators. The results of bottlenecks are de-
lays in production schedules, congestion, accidents and wastage of floor area. All these
may be overcome with an efficient layout.
• Avoidance of Unnecessary and Costly Changes: A planned layout avoids frequent
changes which are difficult and costly. The incorporation of flexibility elements in the
layout would help in the avoidance of revisions.
• Better Production Control: Production control is concerned with the production of a
product of the right type at the right time and at reasonable cost. A good plant layout is a
requisite of good production control and provides the plant control officers with a sys-
tematic basis upon which to build organisation and procedures.
• Better Supervision: A good plant layout ensures better supervision in two ways: (a) De-
termining the number of workers to be handled by a supervisor and (b) Enabling the su-
pervisor to get a full view of the entire plant at one glance. A good plant layout is, there-
fore, the first step in good supervision.
• Economies in Handling: Nearly 30 per cent to 40 per cent of the manufacturing costs
are accounted for by materials handling. Every effort should, therefore, be made to cut
 down en this cost. Long distance movements should be avoided and specific handling op-
erations must he eliminated.
• Effective Use of Available Area: Every unit of the plant area is valuable, especially in
urban areas. Efforts should be therefore, be made to make use of the available area by
planning the layout properly.
• Improved Employee Morale: Employee morale is achieved when workers are cheerful
and confident. This state of mental condition is vital to the success of any organisation.
Morale depends on better working conditions; better employee facilities; reduced number
of accidents; and increased earnings.
• Improved Quality Control: Timely execution of orders will be meaningful when the
quality of the output is not below expectations. To ensure quality, inspection should be
conducted at different stages of manufacture.
• An ideal layout provides for inspection to ensure better quality control.
• Improved Utilization of Labour: A good plant layout is one of the factors in effective
utilization of labour. It makes possible individual operations, the process and flow of ma-
terials handling in such a way that the time of each worker is effectively spent on produc -
tive operations.
• Minimization of Production Delays: Repeat order and new customers will be the result
of prompt execution of orders. Every management should try to keep to the delivery
schedules.
• Minimum Equipment Investment: Investment on equipment can be minimised by
planned machine balance and location, minimum handling distances, by the installation
of general purpose machines and by planned machine loading. A good plant layout pro-
vides all these advantages.