Plant Layout

Introduction
Plant layout deals with the arrangement of the physical facilities and the man
power required to manufacture a product.
It is the duty of the management to make a layout so that man, material and
machinery can work together most efficiently and also it is safe and satisfying for
employees.
Everyone in the industrial organisation is concerned with plant layout in some
manner.

Definition
Plant layout is a floor plan for determining and arranging desired machines and
equipment of a plant in the best place to allow quick handling at lower cost and to
optimize the production.

Objectives of Plant Layout

Increased output/turnover

Fewer production delays

Greater utilization of man and machinery

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 minimum capital investment

full utilization of floor and cubic space

reduced inventory in the process

minimum material handling

no congestion and confusion

easier adjustment to change conditions

easier and better supervision

satisfaction and safety of workers

Principles of Plant Layout

Integration : overall integration of men, material, machinery and supporting
activities.

Utilization: Effective utilization of resources

Closeness: minimum distance between workstations

Flow: logical and streamline

Expansion: easy to expand in future

Flexibility: easy to rearrange or adjust at minimum cost

Versatility: adaptable to changes in product design

Regularity: regular or even division of areas

Orderliness: clean work areas

Capital Investment: avoid unnecessary investment

Convenience

Satisfaction and Safety

Factors Affecting Plant Layout

1. Type of Industry (continuous, repetitive, intermittent)

2. Product : Design, Specifications, Quantity, Rate of Production, Variety

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 3. Methods of Production

4. Machinery and Equipment

5. Material (size, shape, weight, condition, special characteristics

6. Movement

7. Employees’ Facilities

8. Services

9. Building

10. Flexibility

11. Expansion

12. Adaptability and Versatility

13. Location/site

Types of Layout
For any kind of production we need - Men, Material, Machinery

In the process of production at least one of the three has to be moved depending
upon the process and product.

Fixed Position Layout

In this type of layout, the material or product remains in a fixed location and all
tools, machinery and workers as well as other components or parts are brought to
the product.

The complete job is done or the product is made with the major component
staying in one location.

Advantages
1. Highly flexible to frequent changes in product design

2. Reduce handling and assembly of major components

3. Responsibility for quality is easily pin pointed.

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 4. caters to intermittent demand

5. Capital investment in layout is low

6. Production planning and scheduling are very simple.

Disadvantages
1. Mass production is not possible

2. not adaptable to operation requiring complex and huge equipment.

3. least productive

examples: aero planes, boilers, locomotives, large ships

Process Layout
In a process layout all operations of similar nature are grouped together in the
same department or part of the factory. For example separate area may exist for
drilling, milling, grinding and so on.

In process layout the part being worked on travels from area to area according to
established sequence of operations through which it must be put.

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 This layout is appropriate for non repetitive intermittent production when
quantities to produced are less and products are not standardized.

Advantages
1. Low capital investment in equipment

2. high machine utilization

3. Machine breakdown will not hold production

4. Flexibility on product design / high variety

5. expansion is less costly

Disadvantages
1. Production control and scheduling is more complex.

2. More material handling

3. higher workers in process inventories

4. more floor space requirements

Product Layout
In product layout one type of product is produced in one area. In this layout the
relative position of equipment is arranged according to sequence of operation of
product from raw material to finished product.

The raw material starts from one end of the production line and moves form one
machine to the next without the product going back along the same line, without
any delay in process with minimum of work in process, storage and material
handling.

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 suitable for repetitive or continuous production or mass production
ex: automobiles, electric appliances etc.

Advantages
1. flow of work is direct and hence no delay

2. reduce handling of material

3. close coordination of manufacturing

4. low production time

5. reduce congestion

Disadvantages
1. High investment in machines

2. less flexibility and variety

3. any machine breakdown will stop production

4. supervision is difficult

Combination Layout

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 Types of Production
Mass Production
Mass production, also known as flow production, series production, series
manufacture, or continuous production, is the production of substantial amounts
of standardized products in a constant flow, including and especially on assembly
lines. Together with job production and batch production, it is one of the three
main production methods

Job Shop Production

Job shop production, also known as job production or one-off production, is a
manufacturing process where custom products are made one at a time or in small
batches. This type of production is characterized by:

High variety and low volume of products

Highly skilled workers who can handle multiple tasks

General-purpose equipment that can be adapted for different jobs

Flexible production schedules to accommodate custom orders

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 Higher production costs per unit compared to mass production

Job shop production is typically used for complex, specialized, or custom-made

products such as custom furniture, specialized machinery, or prototype
development. It allows for high customization and flexibility but may result in
longer lead times and higher costs per unit.

Intermittent Production
Intermittent production is a manufacturing process where goods are produced in
small batches with irregular production schedules. This method is highly flexible
and can adapt to varying product demands and specifications1

Procedure for Plant Layout

Steps in layout Procedure

Procure Basic Data

the basic data must be obtained for planning a layout is:

About Products

About Materials

Manufacturing Processes

Existing Machines and Equipment

Production Schedule

Existing Personnel

Existing Material Storage and Handling Equipment

Existing Plant Services

Existing Buildings and Grounds

Existing Layout

Product Analysis and Design of production process

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 Product analysis consists of breaking down the product into sub assemblies
and the sub assemblies into their individual parts. Product analysis also
determines the operations necessary for production of each part.

Design production process : Plan the operations —> Decide Proper Sequence
—> select machine and equipment —> specify necessary auxiliary equipment
—> procure production standards —>prepare operations chart

Make or buy part decision

The decision as to what parts are to be produced in own plant or what parts or
item are to be purchased from outside market depends the investment, reliability
of suppliers, control of source supply.

Calculation for Equipment Requirements

factors to be considered for determining total number of machines are

1. Product demand

2. Scrap estimate

3. Standard time for all operations

4. Machine utilization factor

5. Number of days shop will work

6. Number of shifts proposed to run

7. Number of setups and setup time for each production.

Example

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 Accumulate Layout Data
For the final layout along with the above collected data, other information such as
machine data cards, machine load charts etc. is also required. All this information
should be collected after the selection of equipment

Sketch Plot Plan

The plot plan is diagrammatic representation of the building outline along with its
location and and location of external facilities.
The plot plan should be properly oriented to take advantage of resources at the
location.

Plan General Flow Pattern

The overall purpose of the general flow pattern is to plan the movement of raw
material and product parts in as direct path as possible through the plant.

There should be minimum movement and expenditure of time and money.

Consider General Material Handling Plan

Decide general material handling plan the combination of methods and equipment
to be used to implement the flow of materials.

Plan Individual Work Place Area

Work station is the floor area occupied by the worker and machine. It must be
planned in detail.

Selection of Specific Material Handling Equipment

After work station, material handling is most important to consider. Specific
decisions to material handling equipment should be made.

Coordinate Groups of related operations / individual operations

The inter relationships between related groups of operations or activities be also
worked out. At this stage of planning flow diagrams of the individual processes
should also be coordinated into the master flow pattern as originally developed
and subsequently modified.

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 Construction of flow diagram for production centers
Plan the flow diagram for production centers. It should show to scale all machines,
stock, benches and other auxiliary equipment.

Plan and Locate Services and Auxiliary Activities

Check for all the supporting activities with aid of activity relationship chart

Determine the Space Required

In space calculations, space must be considered for

Raw material

In process inventory

finished good storage

aisles, cross aisles, main aisles

receiving and shipping

material handling and equipment storage

tool rooms

maintenance

packaging

supervision

quality control

medical facilities

food service

lavatories

offices

parking

other storage

Allocate Activity Area to total space plot plan

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 now, fit individual area into building outline as depicted on the plot plan.
An area allocation diagram can be made which can be used to develop plot plan.

Plan Building/Around the Layout

Plan the layout considering the building. its shape, size, walls, number of floors
etc.

Construct Master Layout

Once the area allocation and adjustment of activity diagrams are completed, next
step is to prepare a master plan. The master plan can be prepared with the help of
visualization aids like templates and models.

Solicitate Opinions and Suggestions

Take suggestion of all the people concerned with the organization

Develop and Evaluate Alternative Layouts

Analyze all the alternative layouts and finalize the best one

Check Final Layout

Make the final decision considering all the factors including company’s policy.

Obtain Official Approval

obtain approval from the management.

Installation of Layout
Properly install the layout as per plan otherwise all you efforts will go in vain.

Follow up the Implementation of Layout

follow up and check up for improvements

P - Q Chart

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 Break Even Analysis
Break Even analysis is useful for identifying the output that must be reached in
order to recover all the cost of operation. The break even point depends upon the
selling price of the product and operating cost structure.

Now, consider two facilities A and B both of which may be operated during the
coming year.

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